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HomeMy WebLinkAboutSusitina Valley High School Grant Application woodheat 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) Matanuska Susitna Borough Type of Entity: Local government Mailing Address 350 E. Dahlia Ave. Palmer, AK 99645 Physical Address 350 E. Dahlia Ave. Palmer, AK Telephone 907-746-7405 Fax 907-745-9669 Email egray@matsugov.us 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Pam Graham Title Grants Coordinator Mailing Address 350 E Dahlia Ave. Palmer, AK 99645 Telephone 907-745-9525 Fax 907-745-9876 Email pgraham@matsugov.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); Yes 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 ) 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) Type in your answer here and follow same format for rest of the application. SVHS Wood Heat 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. Susitna Valley High School Mile 98 Parks Highway Serving the communities of Susitna, Talkeetna, Trapper Creek and Willow 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 X 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 proposed project is to design and build a redundant wood fired heating plant to heat the Susitna Valley High School with fuel wood which will be sustainably harvested from an appropriately-scaled, designated, land-base selected from nearby Borough timber lands. It includes the Energy Building which houses the boilers, the connection piping to the building and the controls required to monitor and control the system. The project also includes the on site storage of the split cordwood. A long-term management plan for the designated timber lands will be developed in which a Secondary Vocational-Education curriculum can be enfolded that will directly involve student and community participation in ongoing studies of forest regeneration, biodiversity, timber harvest, wood products development, trail development and managing for multiple 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 Matanuska-Susitna Borough School District (MSBSD) will save an estimated $28,521 per year supplementing the heating needs of the building with local wood resources. The use of the wood fired heating plant will directly offset the use and expense of fuel oil. According to the Northern Economics Report (2009), with full district funding of capital costs, the anticipated annual average savings (over a 20-year period) is $620,986 and payback is approximately 24 years. Ancillary benefits include significant vocational-education benefits which the school will accrue with this infrastructure investment which dovetails with a Secondary Forestry Curriculum through which the students have the potential to earn University of Alaska Fairbanks credits. 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. The estimated cost for the project is $750,000. It is anticipated that the project funding will come from the AEA Renewable Energy Fund. The MSB will contribute project management for the design and installation of the boiler building, boilers and wood storage building. 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. $750,000 2.7.2 Other Funds to be provided (Project match) $5,500 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $755,500 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) $755,500 2.7.5 Estimated Direct Financial Benefit (Savings) $620,986 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.) $ Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 5 of 16 7/21/2010 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. John Harris, MSB Project Manager, will manage the construction of the project. 745-9820, jharris@matsugov.us Mr. Harris has extensive experience managing the construction of schools in the borough. Shaune O’Neil, MSB Public Works Director is the reference provided for Mr. Harris and can be reached at 745-9801. 3.2 Project Schedule Include a schedule for the proposed work that will be funded by this grant. (You may include a chart or table attachment with a summary of dates below.) Upon award of funding, the project is estimated to require six months to complete. Month one: Request for proposals, contractor selection; Month two: Place order for boilers, begin design of fuel and boiler buildings; Month three: Complete design, receive boilers, order materials for building construction; Month four: Begin site preparation and construction; Month five: Complete construction; Month six: Calibrate and test system. 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.) Project is of small enough scale that schedule for proposed work and defining key tasks and decision points are essentially parallel in scope. Detailed system design review and assessment Order system materials Installation logistics and manpower allocation On-site preparation Stage materials & mobilization Start construction Complete construction Commission test systems Demobilization Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 6 of 16 7/21/2010 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. John Harris, project manager, MSB, profile attached. A qualified sub-contractor with a trained workforce and equipment will be solicited. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Once project funds are released, and before delivery of materials on site to begin construction, MSB and its subcontractors will have regular bimonthly meetings to update progress on design criteria, siting of collectors, any alterations to building design for hot water storage capacity, material order and delivery schedules, hiring qualified skilled labor and additional sub- contractors necessary and when needed, site conditions, pre-construction action plan and installation of any measurement and verification resources, as well as health and safety issues. At all meetings, notes will be taken and AEA will be invited to attend. Once on site, MSB will make weekly site visits and report weekly progress to AEA. AEA will be copied on the most relevant email correspondence. A more formal monthly report will be issued to AEA and copied to MSB Public Works Director. MSB’s intention is for a successful, transparent and cooperative project. 3.6 Project Risk Discuss potential problems and how you would address them. Disruption of ordered supply materials - Planning to have a substantial lead time in order. Late breakup or inclement weather. Safety issues of employees with overhead work at roof heights - Employees will be trained and certified in safety and rescue. Areas will be restricted access and barriers will be erected. First aid certified worker will be on site and a safety and rescue plan will be in place before work begins. Leaks in system - System has propylene glycol, which is non-toxic and biodegradable so if leak occurred it would not affect environment significantly. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 7 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. Susitna Valley High School is fortunate to be centrally-sited within the lion’s share of the Matanuska-Susitna Borough’s (MSB’s) “Natural Resource Management Units” (NRMUs). Within a 20 mile radius of the school, there are over 26,000 acres of classified “operable timber” on these Borough NRMUs. Since firewood cost is directly related to haul distances from the “burn point”, this proximity of the school to this public resource is key to this proposal. In 2006, the Borough contracted Sanders Forestry Consultants for a Forest Inventory, which has the most detailed, field-based forest information than any other lands in the Upper Susitna. Non- MSB lands have only cursory to no information on their potential timber values. According to the Northern Economics Report, the standing timber on these nearby NRMUs could heat the school for almost 2,000 years! Consequently, it would only take a little over 5% of this forested land-base (about 1,400 acres) to sustainably supply (on an 80-year growth-rate, tree rotation) for the school’s fuel wood needs. From a Vocational-Education standpoint, the use of these MSB lands is pivotal to this proposal, as such a fixed, “designated” land-base is crucial for a “closed model” study of its’ forestry values. Such a designated Borough land-base would also administratively streamline the sales/allocation of the fuel wood, as there would be Borough lands supplying the heating fuel for a Borough school. 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. Central heat with two fuel-oil fired hot water boilers (85% efficiency), installed in 2009. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 8 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. There is no data concerning the annual amount of fuel wood consumed by the local communities, which may or may not be impacted by the SVHS Wood Heat proposal. Estimates of local usage range from between 1,500-3,000 cords used as fuel wood annually, the bulk of which is currently harvested from private land and State timber sales. Additionally, the MSB anticipates offering between 400-600 acres of commercial timber sales on an annual basis. The annual consumption of the SVHS Heating System is anticipated to be only 2-4% of this total annual harvest off of Borough land. Consequently, the potential adverse impact – to the public at large - of the school’s projected consumption-rate (on existing patterns-of-use) will be negligible. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. See Above. 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 Land Ownership: Mat-Su Borough School District and Mat-Su Borough Natural Resource Management Unit land. System Design (on School Grounds): 1) The Boiler Building (approx. 600 Sq.Ft.) 2) The Boiler Building “Yard” (enclosed within chain-link fence for storage of a few days supply of fuel-wood, fork lift, maintenance equipment.) (approx. 1,200 Sq.Ft.) 3) Wood Storage Facility: (approximately 7,200 Sq.Ft./300 cords of wood) Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 9 of 16 7/21/2010 1) Operational Procedures: “From Forest-to-Firebox” Maintaining a constant heat fuel-stream is essential to the success of this proposal. Consequently, the following (draft) work-schematic provides a template from which an operable system may be refined, which will be of practical use and economically viable. This schematic must be integrated with the school’s current fuel-oil system and not inhibit the function or reliability of that system. 2) Fuel Wood Delivery: (Private Contractor): As currently is the case with fuel oil deliveries, the fuel wood would be provided by a private, licensed, bonded and insured contractor. In order to reduce handling costs, it is necessary that the fuel wood be delivered in tree-lengths and processed on the school grounds. This can be accomplished once the school is let out in the early summer and the weight restrictions are lifted from the highways. Currently, the school access road is gated during the summer, so there should be minimal conflicts with the processing of the fuel wood in this time-frame. 3) Wood Processing: It has been demonstrated that a “palletized” form of wood storage reduces handling, maximizes storage capacities, facilitates airflow for passive drying of the fuel wood and increases safety margins during the firebox “stoking” process. The tree lengths can be cut-to- firebox-lengths with a “Built-Rite” Wood Processor or equivalent (capable of cutting/splitting 4 cords of wood per hour). As the split rounds feed off of a conveyor, they are dropped on to a 4’x4’ pallet which sits at the bottom of a 4’x4’x4’ boxed “form”. Once the form is filled, the operator mechanically cinches the ½ cord of wood with pre-placed metal bands and drops down the form boards. The “palletized” ½ cord is then ready to be transported to the wood storage facility with a fork-lift. (photo below). The “palletization”: process itself takes about 15 minutes per ½ cord per man. It would probably take a 3-man crew 2 to 3 work-weeks to process and store 300 cords of wood in the storage facility. 4) Wood Handling: The “stoker” (a private, licensed contractor) would operate a fork-lift within the confines of the fenced-off yards of the wood storage facility and the Wood Boiler Building. For reliability of Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 10 of 16 7/21/2010 performance, a 3,000 lb. Komatsu (propane) forklift with wide tires would be the most preferable option. The “palletized” cords would be of actual 4’x4’x4’ (1/2 cord) dimensions, but the pallets themselves could be deeper than standard warehouse pallets and provide 8”-10” of air-space between tiers. The ½ cord pallets can be safely stored two-tiers high within the storage facility. 5) The Storage Facility: The Northern Economics Report contains a site plan of the school grounds and photographs which depict locations set aside for the Wood Boiler Building and Storage Facility. It is imperative that the fuel wood be stored in a facility that augments the air-flow, thus reducing the amount of time required to (passively) remove moisture from within the delivered “green” fuel stock. It has been estimated that the energy saved by burning seasoned wood (with approx. 20% moisture content) as opposed to the delivered green wood, would be the energy equivalent of heating the school for 10-14 days. Consequently, ANY design elements that hastens this drying process will result in a net fuel savings over the long-term Such features as open-sides to the structure and ample space to loosely “file” the pallets not only aerates the wood, but eases forklift access to and from the facility. Other options perhaps worth investigating would be photo-voltaic-powered fans to exhaust moist air and translucent roof panels to enhance solar gain. 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 Borough Assembly supports designation of borough timber land in support of this project. The Borough’s Natural Resource Management Units Plan indicates several of the Borough’s NRMU’s are suitable sources of supply for the SVHS Wood Heat Proposal. (The Rabideux Creek, Susitna River Corridor, Sheep Creek and Kashwitna NRMU’s.) 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 No permits are required for this project. 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 Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 11 of 16 7/21/2010  Identify and discuss other potential barriers The considerations above will be adequately addressed through this projects compliance with the State Forest Practices Act. Compliance is required for timber harvest on Borough land. In addition, the goal of this “Closed Model” Research High School Forest, is to affiliate with - and develop a long-term management plan amongst – boreal forest researchers within the UAF system, as well as State and Borough land managers, and local non-governmental organizations and Service Organizations, to come up with a Land Management Plan which integrates timber harvest with biodiversity, water quality and recreational values. See supporting letter from the University of Alaska, Fairbanks. 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 Total Project Cost: $755,500 Requested Grant Funding: $755,500 Applicant Matching Funds:5,500 Other Funding Sources: Projected Capital Cost: $750,000 Projected Development Cost: $0 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.) Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 12 of 16 7/21/2010 Operating Costs Units Amount Percent Total Source, Comments Operating days 210 30 weeks, Sept April Cords/year Cords 253 New HS calculations Daily fuel Cords 1.2 300 cords (max)/210 days Cords/charge Cords 0.43 3 - WHS3200, 36.4CF/@ Cost/cord Cord $200 Quote, local suppliers Total Fuel costs $50,600 84% 253 cords, $200/cord Firings/day Vol day/vol charge # firings 2.8 Labor Per firing Hours 0.33 Dot Lake Experience Per day Hrs/Day 0.93 Firings/day*hrs/firing Season Day/Year 210 30 weeks, Sept April Hours/season 195.94 Day/season*hrs/day Contract/labor $/hour $40.00 MSB School District=$50 Season, contract labor $7,838 13% Hours * hr/rate Electricity $0.20/kWh $625 1% Prior estimate, Interior Maintenance, repairs $1,000 2% $1000, firebrick, gaskets, 3YR schedule Total $60,063 100% Total O&M, including fuel O&M Only $9,463 16% Non-fuel O&M 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 Not Applicable 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. Su Valley High School: Wood Heat Analysis, Northern Economics, 2009. 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 Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 13 of 16 7/21/2010 This project is projected to displace 437,000 gallons of oil (~$830,000) over 20 years. Depending what on land is harvested for wood, the borough may be in a position to sell tax credits on a carbon market. The non-economic public benefits are summarized below based on the attached letters of support: The Upper Susitna Soil Water Conservation District views this project as a collaborative effort that will engage the community, SVHS teachers, and students in a hands-on forest sustainability/energy project. This project is a worthwhile investment in education and sustainable agriculture in our community. This project provides the youth in the community an opportunity to develop a personal investment and pride in their local resources. The Aquatic Resource Research Institute supports the proposal to set aside a specific area of land to provide timber for the proposed wood-fired boiler used to heat the Susitna Valley High School and to be used as a research forest. A research forest would allow for the development of timber harvest units and roads that could be used to test for effects of harvest on hydrology, water quality, and fish habitat. Students and researchers could observe first-hand the importance of stream setbacks and road construction standards to limit soil erosion and the transport of fine sediments. Several professors from the University of Alaska, Fairbanks have attested, this project would allow SVHS students to work closely with professors working in the field of renewable energy, ecology, and forestry in a hands-on collaboration. The vocational and practical math and science application opportunities for SVHS students to be involved with this system promise extreme potential and numerous benefits. 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 borough is a local government. The school district is funded by the borough. Operations and maintenance of the heating systems will be included in the annual budget request to the borough. Operational costs include timber harvest, delivery, processing, loading, and ash disposal. These costs, including the price of the timber, are less than the cost of the displaced fuel oil. The savings and benefits will be integrated with the curriculum of the high school students. It is likely to become an annual class project to report the number of trees and tons of wood cut and compare it to the displaced volume of fuel oil. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 14 of 16 7/21/2010 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 grant s that may have been previously awarded for this project and the degree you have been able to meet the requirements of previous grants. The school site was developed to allow for construction of the proposed project. Space was identified on the school site for the buildings. The existing plumbing was stubbed out for the construction of this project. The school principle, the school board, and the borough support the project. AEA funded the preliminary economic analysis that was completed in 2008. AEA and the MSB supported a more detailed analysis that was completed in 2009. In both instances, all funding requirements were met. The MSB is prepared to execute the project upon grant award. 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. No opposition to this project has been identified. Local letters-of-support are attached from  Principal and teachers of Su Valley High School,  MSBSD school board,  University of Alaska, Fairbanks, Palmer Research and Extension Center,  Local business: Birch Syrup and Berry Products,  Upper Susitna Soil and Water Conservation District,  Northern Susitna Institute,  Aquatic Restoration Research Institute,  State of Alaska, Department of Natural Resources, Division of Forestry, State Forester,  United States Department of Agriculture, Forest Service, Alaska Region. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 15 of 16 7/21/2010 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. AEA and the borough have invested approximately $30,000 to evaluate the feasibility and design of the Susitna Valley High School Wood Heat Project. The project requires $750,000 to construct. The borough will provide in-kind match to administer the grant and manage construction of the project. Estimated in-kind match is $5,500. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 16 of 16 7/21/2010 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. - Authorizes the individual who signs the application has the authority to commit the organization to the obligations under the grant. - Provides as point of contact to represent the applicant for purposes of this application. - Certifies the applicant is in compliance with applicable federal, state, and local, laws including existing credit and federal tax obligations. H. CERTIFICATION The undersigned certifies that this application for a renewable energy grant is truthful and correct, and that the applicant is in compliance with, and will continue to comply with, all federal and state laws including existing credit and federal tax obligations. Print Name Signature Title Date