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HomeMy WebLinkAboutKenny Lake Wood Fired Boiler GRANT APPLICATION Renewable Energy Fund Round IV Grant Application AEA 11-005 Application Page 1 of 16 7/21/2010 Application Forms and Instructions The following forms and instructions are provided to assist you in preparing your application for a Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA) and the forms are available online at: http://www.akenergyauthority.org/RE_Fund-IV.html Grant Application Form GrantApp4.doc Application form in MS Word that includes an outline of information required to submit a complete application. Applicants should use the form to assure all information is provided and attach additional information as required. Application Cost Worksheet Costworksheet4.doc Summary of Cost information that should be addressed by applicants in preparing their application. Grant Budget Form GrantBudget4.doc A detailed grant budget that includes a breakdown of costs by milestone and a summary of funds available and requested to complete the work for which funds are being requested. Grant Budget Form Instructions GrantBudgetInstructions4.pdf Instructions for completing the above grant budget form.  If you are applying for grants for more than one project, provide separate application forms for each project.  Multiple phases for the same project may be submitted as one application.  If you are applying for grant funding for more than one phase of a project, provide milestones and grant budget for completion of each phase.  If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted.  If you have additional information or reports you would like the Authority to consider in reviewing your application, either provide an electronic version of the document with your submission or reference a web link where it can be downloaded or reviewed. REMINDER:  Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials submitted to the Authority may be subject to disclosure requirements under the act if no statutory exemptions apply.  All applications received will be posted on the Authority web site after final recommendations are made to the legislature.  In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or proprietary company data be kept confidential subject to review and approval by the Authority. If you want information is to be kept confidential the applicant must: o Request the information be kept confidential. o Clearly identify the information that is the trade secret or proprietary in their application. o Receive concurrence from the Authority that the information will be kept confidential. If the Authority determines it is not confidential it will be treated as a public record in accordance with AS 40.25 or returned to the applicant upon request. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 2 of 16 7/21/2010 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Copper River School District Type of Entity: Public School Regional Education Attendance Area Mailing Address PO Box 108 Glennallen, AK 99588 Physical Address Aurora Drive Glennallen, AK Telephone 907-822-3234 Fax 907-822-3949 Email mjohnson@crsd.k12.ak.us 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Tim Hand Title Maintenance Mechanic II Mailing Address PO Box 108 Glennallen, AK 99588 Telephone 907-822-3234 Fax 907-822-3949 Email thand@crsd.k12.ak.us 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer in accordance with 3 AAC 107.695 (a) (1), or x A local government, or A governmental entity (which includes tribal councils and housing authorities); **** 1.2.2. Attached to this application is formal approval and endorsement for its project by its board of directors, executive management, or other governing authority. If the applicant is a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate Yes or No in the box ) *** A resolution is forthcoming from the Copper River School District. Yes 1.2.3. As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement. Yes 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached grant form. (Any exceptions should be clearly noted and submitted with the application.) Yes 1.2.5 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 3 of 16 7/21/2010 SECTION 2 – PROJECT SUMMARY This is intended to be no more than a 1-2 page overview of your project. 2.1 Project Title – (Provide a 4 to 5 word title for your project) Kenny Lake School Wood Fired Boiler Project 2.2 Project Location – Include the physical location of your project and name(s) of the community or communities that will benefit from your project. Kenny Lake School which is located in Kenny Lake within the Copper River Valley. The Kenny Lake School is a K – 12 school servicing the communities of Chitina, Kenny Lake and Willow Lake. 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind X Biomass or Biofuels Hydro, including run of river Transmission of Renewable Energy Geothermal, including Heat Pumps Small Natural Gas Heat Recovery from existing sources Hydrokinetic Solar Storage of Renewable Other (Describe) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Reconnaissance Design and Permitting Feasibility X Construction and Commissioning Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. The Copper River School District (CRSD) proposes to install a 1.8MBTU wood pellet fueled boiler at the Kenny Lake School. This boiler will displace 18,625 gallons of fuel oil every year. The current boilers will be used for backup, low load and peak heat periods. This project will involve school district personnel, local contractors, design engineers and the Alaska Energy Authority (AEA). This project will employee local residents in construction, keep energy money within the State of Alaska and utilize regional biomass resources from the Fairbanks area. This project will introduce bulk delivery of pellets from the Superior Pellet Plant, located in North Pole, AK, to the Copper River Valley. Local residents may be able to expand use of pellets for home heating use. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 4 of 16 7/21/2010 2.5 PROJECT BENEFIT Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel costs, lower energy costs, etc.) The installation of a wood pellet boiler will save the Copper River School District an estimated $10,500 annually, after the first 2 years of operation. $2,000,000, using conservative inflation rates, will be saved over 20 years. Utilizing woody biomass will help reduce the CRSD carbon footprint because it is a carbon neutral energy source. This project is on the road system and will be a demonstration project for many Alaskans and visitors to see. The delivery of an in-state resource of pellets has the potential of expanding the local residential pellet heating usage. A local business could be developed to supply the Copper River Valley (CRV) with bulk and/or bagged pellets. Pellets are an easier source for residents to handle than firewood, especially as our population ages. Pellets burn cleaner therefore produce less ash that needs to be removed. Pellet stoves have hoppers that can hold a number of day’s worth of fuel, eliminating the need to carry wood through the house every day. This project will benefit the State of Alaska by keeping heating money within the state. The CRSD will help the Superior Pellet Plant be a viable project and employ local Alaskans. There is the potential of shipping the Copper River Valley’s hazard fuel reduction biomass to Superior Pellet Plant and made into pellets for all to use. The cost of wild land fire suppression averages $33/acre, any reduction in small diameter trees will reduce the fire hazard and needed suppression. The Copper River Valley has a high percentage of spruce bark beetle damaged trees that could be utilized by this new company. 2.6 PROJECT BUDGET OVERVIEW Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of other contributions to the project. $565,485 is needed for the purchase, installation and building of a wood pellet boiler. The Copper River School District will contribute necessary land for construction to see this project succeed. . 2.7 COST AND BENEFIT SUMARY Include a summary of grant request and your project’s total costs and benefits below. Grant Costs (Summary of funds requested) 2.7.1 Grant Funds Requested in this application. $ 565,485 2.7.2 Other Funds to be provided (Project match) $ 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $ 565,485 Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 5 of 16 7/21/2010 Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.4 Total Project Cost (Summary from Cost Worksheet including estimates through construction) $ 565,485 2.7.5 Estimated Direct Financial Benefit (Savings) $ 10,620 2.7.6 Other Public Benefit (If you can calculate the benefit in terms of dollars please provide that number here and explain how you calculated that number in your application (Section 5.) $ 656.40/year SECTION 3 – PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope, schedule and budget proposed in the application. 3.1 Project Manager Tell us who will be managing the project for the Grantee and include contact information, a resume and references for the manager(s). If the applicant does not have a project manager indicate how you intend to solicit project management support. If the applicant expects project management assistance from AEA or another government entity, state that in this section. Alaska Energy Authority will be utilized for project management. The AEA has the technical expertise to manage this project and knows the project well. The CRSD and AEA have established a strong working relationship through the first three phases of this project and look forward to final construction. 3.2 Project Schedule Include a schedule for the proposed work that will be funded by t his grant. (You may include a chart or table attachment with a summary of dates below.) Please see attached Gantt chart for project schedule. This chart covers Phase IV of the project. That this grant application covers, with the design phase (III) included for informational purposes. A summary of Phase IV dates is shown below: Description Start Date Ending Date AEA project approval and notice to proceed 5/17/2011 Planning and Procurement 5-17-2011 6-15-2011 Boiler procurement, fabrication, delivery 5-24-2011 9-27-2011 Field Construction phase of project 6-16-2011 12-16-2011 Building shell and slab 6-28-2011 7-15-2011 Underground piping and electrical 8-2-2011 8-9-2011 Wood Pellet Silo 9-12-2011 9-20-2011 Set boiler and accessories 9-28-2011 10-10-2011 Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 6 of 16 7/21/2010 Connection mechanical and electrical 9-28-2011 10-24-2011 Commissioning and startup 10-25-2-11 10-27-2011 Final Inspection 10-31-2011 Project Closeout activities 11-4-2011 12-15-2011 Project complete 12-15-2011 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. The Milestones must also be included on your budget worksheet to demonstrate how you propose to manage the project cash flow. (See Section 2 of the RFA or the Budget Form.) These milestones are part of the attached Gannt Chart schedule for the project. The milestones are: AEA project approval and notice to proceed After legislative approval, AEA notifies CRSD that the project is approved and gives the notice to proceed with the construction. The first step in construction will be procurement.  Planning and Procurement complete All procurement is complete. The main long lead item will be the boiler system, which would take about 12 weeks to deliver. The bulk of the materials funds will have been spent when this milestone is reached.  Preconstruction kickoff meeting The groundwork for the construction season will be laid out to all parties during this meeting.  Building shell and slab complete The building shell and slab will be completed and ready to receive the boiler and the wood pellet silo.  Systems complete and ready for boiler startup The boiler, pumps, heat exchanger, and connecting piping are all installed, electrical is complete and the boiler heat system is ready for commissioning and startup.  Final Inspection and acceptance The project is running and all punch list items from the final inspection are corrected. The O&M manual is prepared and turned over to the CRSD.  Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 7 of 16 7/21/2010  Project complete  All project components are complete and the project is closed out with AEA, with the exception of the 1 year warranty period. 3.4 Project Resources Describe the personnel, contractors, equipment, and services you will use to accomplish the project. Include any partnerships or commitments with other entities you have or anticipate will be needed to complete your project. Describe any existing contracts and the selection process you may use for major equipment purchases or contracts. Include brief resumes and references for known, key personnel, contractors, and suppliers as an attachment to your application. The Copper River School District has a strong working relationship with AEA and CE2 Engineers whom supply technical and project design work. CRSD has managed numerous federal and state grants for construction. They successfully managed the construction the new Glennallen Elementary School – dedicated 2009. There are a number of local general contractors in the CRV that can install the building and piping. CRSD Maintenance people have been part of the decision making process and onboard with utilizing a wood pellet boiler. Quotes have been obtained from Decker Manufacturing LTD. for a 1.8 MBTU boiler. Quotes have been obtained from Superior Pellet Plant for bulk standard pellets. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. AEA personnel will be managing all aspects of the construction, procurement and installation of the wood pellet fired boiler. This will allow direct monitoring and communication on the project. CRSD personnel and AEA personnel will be on the evaluation panel to select construction bids and boiler manufacturer bids. During construction Tim Hand will be the CRSD contact to make sure daily and weekly tasks are on schedule. A final inspection of all work will be performed by Tim Hand, AEA and CE2 Engineers for acceptance. 3.6 Project Risk Discuss potential problems and how you would address them. Potential problems are delay in receiving the pellet boiler from the outside. A manufacturing schedule will be obtained from the successful boiler fabricator. Solicitations for project work not bid on: Three week solicitations for project work will occur. Area contractors will be contacted in advance of advertisement to gain interest. Seasonal delays could be a problem. All construction bids will be advertised as soon as possible to utilize the entire construction season. Weather conditions will be monitored to identify earliest construction start time. The project is estimated to take 5 months. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 8 of 16 7/21/2010 SECTION 4 – PROJECT DESCRIPTION AND TASKS  Tell us what the project is and how you will meet the requirements outlined in Section 2 of the RFA.  The level of information will vary according to phase(s) of the project you propose to undertake with grant funds.  If you are applying for grant funding for more than one phase of a project provide a plan and grant budget form for completion of each phase.  If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. 4.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available. Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be available for the market to be served by your project. State of Alaska: Valdez/Copper River Area manages 4 million forested acres with an average of 20 tons of wood fiber/acre. US Federal: Bureau of Land Management manages 144,000 forested acres with an average of 20 tons of wood fiber/acre. Tonsina North Agricultural Subdivision: 1,000 acres. Superior Pellet Plant in North Pole, AK is producing 25,000 tons of pellets. There are few alternatives for heating in the Copper River Valley. Wind in the area is not consistent enough at even 6 mph to warrant wind turbines – Copper Valley Electric Cooperative commissioned a study for the Copper River and Valdez services areas in 2006. Kenny Lake is not close to streams to look to hydro power at any scale while solar power could have some potential. The use of fuel oil or propane is the only alternatives and the cost continues to be very high. A new pellet manufacturing plant has been built and is in operation. They will be utilizing small diameter trees from all available sources. Discussions are underway to transport raw material from the Copper River Valley to become pellets. 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. The Kenny Lake School, which provides K – 12 instruction, is heated by two oil-fired Burnham boilers rated at 2.15 million BTU’s/hr (net, each). They are located in a single mechanical room at the rear of the main building. Heat is delivered via a hydronic heating system with supplemental hot air. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 9 of 16 7/21/2010 4.2.2 Existing Energy Resources Used Briefly discuss your understanding of the existing energy resources. Include a brief discussion of any impact the project may have on existing energy infrastructure and resources. The Kenny Lake School is currently using 22,570 gallons of diesel fuel oil to heat the school and associated buildings. This fuel is distributed by a local fuel company which employees local residents. The headquarters are located in California. This company delivers both fuel oil and propane to businesses and private residents. The Kenny Lake School is one of many customers in the Copper River Valley. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Most residents have a combination for heating their homes, hot water and cooking. Many people have boilers that use fuel oil and a wood stove for home heating. Many people have hot water heaters utilizing either fuel oil or propane. Many cook stoves are fueled by propane. The Copper River Valley is staying about the same in population, possibly a slight loss to less expensive city living so market growth is not a big factor. The project, by itself, will not have a major impact the fuel delivery company. If a pellet distribution company started up and businesses and residents switched to wood pellet stoves an impact could be significant. If fewer drivers were need to deliver fuel oil than local residents could be laid off. Pellet stove use in Alaska has increased every year, just as it has in the lower 48 states. This increased demand has made the building of the Superior Pellet Plant in North Pole to be a viable and profitable business. The plant will produce 25,000 tons per year and the need for 150 tons for the Kenny Lake School project will not impede the ability for this plant to sell their product in Fairbanks and around the state. This transportation of pellets to the Copper River Valley will increase their market area. 4.3 Proposed System Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, and environmental issues. 4.3.1 System Design Provide the following information for the proposed renewable energy system:  A description of renewable energy technology specific to project location  Optimum installed capacity  Anticipated capacity factor  Anticipated annual generation  Anticipated barriers  Basic integration concept  Delivery methods  Renewable energy technology description: The system proposed is a wood-pellet fired boiler and economizer, connected to the school building through a heat exchanger. The boiler would be capable of firing from 50% to 100% firing rate. By Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 10 of 16 7/21/2010 doing this, the efficient use of the boiler can be extended further into the “shoulder seasons” (lower heat loads) in the fall and spring, displacing more fuel oil. Wood pellets are a renewable resource that is now being produced in Alaska in several places within reasonable and economic shipping distance from Kenny Lake. Wood pellets are an appropriate renewable fuel for the Kenny Lake School because they are easily handled and burned by highly automated means with minimal operator labor and maintenance. Optimum Installed capacity: The existing oil-fired boilers typically have a peak load factor of 0.6. This means that the likely system peak for each boiler is 1292.4MBTU/hr. For two boilers, the school total would be twice that, or 2585MBTU/hr. A biomass-fired boiler works differently, and does not operate efficiently when it is oversized. It has been found by study and experience that a biomass-fired boiler will provide the maximum heat over a heating season with a load factor of 60% of peak heating load. With this configuration, it is expected that the biomass-fired boiler will provide 90% of the heat needed for the facility. For a peak facility heating load of 2585MBTU/hr, the biomass boiler size would be 60% of that, or 1551MBTU/hr. Anticipated Capacity Factor: From the attached calculation sheet, the anticipated capacity factor for the wood pellet-fired boiler would be 0.24. This is 2.7 times the capacity factor of the oil fired boiler capacity of 0.09. Anticipated Annual Generation: The anticipated annual heat generation of the wood pellet-fired boiler would be the heat equivalent of 90% of 20,000 gallons of oil, or 18,000 gallons of fuel oil. The heat equivalent would be 18,000 gallons x 134,000 BTU/gal x 0.8, or 1.93 billion BTU/year net output, or about 150 tons of wood pellets. Anticipated Barriers: With the current opening of a 25,000 ton/year wood pellet plant near Fairbanks, the main economic barrier to utilizing wood pellets in heating the school has been eliminated. A second smaller wood pellet plant is in operation at Dry Creek, near Dot Lake on the AlCan Highway. A recent AEA field trip to multiple sites using wood pellet boilers in British Columbia, Canada found that there are no major technical barriers to the successful operation of wood pellets as a heat source in facilities. Basic Integration Concept: The wood pellet-fired system at Kenny lake would be a stand-alone hydronic system, filled with 50% propylene glycol, and would be connected to the school hydronic heating system through a heat exchanger, so that a failure in the wood pellet heat system would not affect the school. Delivery Methods: Wood pellets would be transported by a supplier or contractor’s bulk hauling truck, hauling 10 to 20 tons per load to the proposed 50-ton pellet silo at the Kenny Lake heat facility. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 11 of 16 7/21/2010 4.3.2 Land Ownership Identify potential land ownership issues, including whether site owners have agreed to the project or how you intend to approach land ownership and access issues. The Copper River School District owns the land the Kenny Lake School is located on so no issues are anticipated. 4.3.3 Permits Provide the following information as it may relate to permitting and how you intend to address outstanding permit issues.  List of applicable permits  Anticipated permitting timeline  Identify and discussion of potential barriers At this time, the only anticipated permit required would be the Plan Review Approval from the Alaska State Fire Marshal. A typical plan review timeline would be to allow a month for review, comments, and any corrections. We will have four months between completion of the plans and any changes required before construction. The only issue that is anticipated would be if the fire marshal’s office will require that the small heating plant be sprinkled. 4.3.4 Environmental Address whether the following environmental and land use issues apply, and if so how they will be addressed:  Threatened or Endangered species  Habitat issues  Wetlands and other protected areas  Archaeological and historical resources  Land development constraints  Telecommunications interference  Aviation considerations  Visual, aesthetics impacts  Identify and discuss other potential barriers This facility will be located on School District property adjacent to the existing school building. It will not be located on wetlands. The location will be on previously disturbed land. No archaeological issues are present. There are no land development constraints. The site will not interfere with any telecommunications or aviation concerns. Visual aesthetics impacts will be dealt with at design time. EPA emission regulations will be followed and necessary measures will be implemented. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 12 of 16 7/21/2010 4.4 Proposed New System Costs and Projected Revenues (Total Estimated Costs and Projected Revenues) The level of cost information provided will vary according to the phase of funding requested and any previous work the applicant may have done on the project. Applicants must reference the source of their cost data. For example: Applicants Records or Analysis, Industry Standards, Consultant or Manufacturer’s estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following:  Total anticipated project cost, and cost for this phase  Requested grant funding  Applicant matching funds – loans, capital contributions, in-kind  Identification of other funding sources  Projected capital cost of proposed renewable energy system  Projected development cost of proposed renewable energy system See 100817 Kenny Lake Cost Estimate.xls 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for new facilities constructed and how these would be funded by the applicant. (Note: Operational costs are not eligible for grant funds however grantees are required to meet ongoing reporting requirements for the purpose of reporting impacts of projects on the communities they serve.) Annual Project Operating & Maintenance Costs are estimated to be $1,000 and additional electricity $2,250. These increases will be absorbed through the savings incurred by changing to pellets for heat. See Kenny Lake Fuel Oil vs. Pellets 9-10-2010.pdf 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following:  Identification of potential power buyer(s)/customer(s)  Potential power purchase/sales price - at a minimum indicate a price range  Proposed rate of return from grant-funded project NA 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Download the form, complete it, and submit it as an attachment. Document any conditions or sources your numbers are based on here. See Kenny Lake Costworksheet 9-10-2010.pdf Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 13 of 16 7/21/2010 SECTION 5– PROJECT BENEFIT Explain the economic and public benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following:  Potential annual fuel displacement (gal and $) over the lifetime of the evaluated renewable energy project  Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or cost based rate)  Potential additional annual incentives (i.e. tax credits)  Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available)  Discuss the non-economic public benefits to Alaskans over the lifetime of the project There are a number of economic benefits by utilizing a bulk wood fired boiler. $51,300 worth of fuel oil, 18,000 gallons, will be replaced with $46,065 worth of wood pellets, (150) tons for an annual savings of $10,620, starting year 3. This project will open up possibilities for a local pellet distribution company, helping to make the Superior Pellet Plant viable. With a local pellet distributor more local residents can use pellets stoves which are more convenient that firewood as individuals grow older. Pellet stoves utilize hoppers which allow residents to reduce the amount of time stoking their fires. The Superior Pellet Plant is in discussions with local companies of hauling hazard fuels from residents to be made into pellets. This would decrease the wild land fire hazard that is in the Copper River Valley. There are hundreds of acres of dead spruce from the spruce bark beetle infestation of the 1990’s. Burning wood pellets is a carbon neutral resource. Kenny Lake School is on the road system and can be used as a showcase for visitors and residents to see. SECTION 6– SUSTAINABILITY Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum:  Proposed business structure(s) and concepts that may be considered.  How you propose to finance the maintenance and operations for the life of the project  Identification of operational issues that could arise.  A description of operational costs including on-going support for any back-up or existing systems that may be require to continue operation  Commitment to reporting the savings and benefits The addition of the wood fired boiler at the Kenny Lake School will become part of the heating system maintenance program. All management and financing of the boiler will be part of the Copper River School District. Bids for delivered fuels will be obtained in early fall, as are fuel oil prices, and a contract will be executed. A 50 ton silo is part of this project and will be filled at the beginning of the school year. Trucks will deliver 10 to 20 tons/delivery. Scheduling of delivery will be addressed in the contract to avoid hazardous interactions between students and the 40’ trailers full of pellets. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 14 of 16 7/21/2010 The maintenance and operations of the project are considered within the overall cost savings. The savings in fuel costs will cover the additional O&M. Utilizing a solid fuel instead of a liquid fuel does pose some problems. More attention, especially in the first two years, to boiler operation is needed. Additional moneys have been put into the cost spreadsheet. Wood pellets can freeze and get caught in the auger system from the silo to the boiler. Quality control of the wood pellets when delivered is of high importance. The maintenance personnel have been involved in the system selection and are aware of fuel quality issues to monitor. The current fuel oiled boilers will be maintained as usual. They will be used for the shoulder months when the pellet boilers would not be as efficient. The Copper River School District desires to save money and utilize a renewable resource. It will make savings and benefit reporting a part of the usual reporting duties. SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS Discuss what you have done to prepare for this award and how quickly you intend to proceed with work once your grant is approved. Tell us what you may have already accomplished on the project to date and identify other grants that may have been previously awarded for this project and the degree you have been able to meet the requirements of previous grants. The CRSD, AEA and Heidi Sheldon (formerly Veach) have continued to pursue the installation of a biomass boiler in the Kenny Lake school since 2006. The feasibility study showed it would be economically beneficial and these three entities have continued investigating the best possible system each and every year. Phases I – III have been accomplished with the dedication of these three entities and will not change when granted construction monies for this project. Numerous other biomass projects are ongoing in the Copper River Valley. Construction companies are known who can perform the work. Estimates from biomass boilers have been obtained as well as pellet prices. All entities involved are ready to begin construction immediately upon approval of funds. SECTION 8– LOCAL SUPORT Discuss what local support or possible opposition there may be regarding your project. Include letters of support from the community that would benefit from this project. The community desires to reduce fossil fuel use. Many families heat with wood and many desire to heat with pellets. They see the introduction of a bulk delivery system as a positive move for the Valley. The Valdez/Copper River Department of Forestry has been a part of this project development as well as the Bureau of Land Management. They see the potential of utilizing the small diameter trees. Being able to harvest the small diameter trees could open up areas of more merchantable trees and reduce the areas wild land fire hazard. A number of Native Villages are performing hazard fuel reduction programs. They would welcome the opportunity to sell this fuel instead of burning it in large piles. Ahtna, Inc. has entertained the idea of building a pellet manufacturing plant in Glennallen. This pellet fired boiler could be the catalyst to make it viable, they have a major holding of harvestable land. There are environmental groups in the Copper River Valley. They want to know that the air and forest environment will be protected. This project has been developed to comply with all EPA air Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 15 of 16 7/21/2010 quality standards. There will be emission controls installed if needed. Harvesting of small diameter trees will be in efforts to reduce the wild land fire danger. The members of this project desire to build a project with all community members are comfortable with. SECTION 9 – GRANT BUDGET Tell us how much you want in grant funds Include any investments to date and funding sources, how much is being requested in grant funds, and additional investments you will make as an applicant. Include an estimate of budget costs by milestones using the form – GrantBudget3.doc Provide a narrative summary regarding funding sources and your financial commitment to the project. We are requesting $565,458 to obtain pellet fired boiler, construct the building and conne ct it to the existing heating system in the Kenny Lake School . This project was begun in 2006 with a feasibility study conducted by the Juneau Economic Development Council under a grant awarded by the Wood Energy Task force. Once it was determined the Kenny Lake School had a viable project State of Alaska legislative money was applied for. In 2009 CRSD was awarded $120,000 to perform reconnaissance, conceptual design and final design and permitting. The CRSD, with technical assistance from AEA and CE2 Engineers, and community and federal and state meetings determined a pellet fired boiler would be the most economical boiler system. Once awarded construction funds AEA will manage the funds. The Copper River School will be involved in the approval of building construction contractors. The maintenance personnel will be the onsite eyes for progress and communicate any concerns with AEA. AEA will monitor construction work as often as needed to ensure timely completion and quality installation. SECTION 9 – ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. Contact information, resumes of Applicant’s Project Manager, key staff, partners, consultants, and suppliers per application form Section 3.1 and 3.4. B. Cost Worksheet per application form Section 4.4.4. C. Grant Budget Form per application form Section 9. D. Letters demonstrating local support per application form Section 8. E. An electronic version of the entire application on CD per RFA Section 1.6. F. Authorized Signers Form. G. Governing Body Resolution or other formal action taken by the applicant’s governing body or management per RFA Section 1.4 that: - Commits the organization to provide the matching resources for project at the match amounts indicated in the application.