HomeMy WebLinkAboutUAF Biomass for Energy Supploy Side Knowledge Base AppRenewable Energy Fund Round 3
Grant Application
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.akenergyauthoritv.org/REFund-lIl.html
Grant Application
Form
GrantApp3.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
Costworksheet3
.doc
Summary of Cost information that should be addressed by
applicants in preparing their application.
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
GrantBudget3. d
oc
Grant Budget
Form Instructions
GrantBudgetlnst
ructions3. 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 MC 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.
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SECTION 1 -APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
University of Alaska Fairbanks
Type of Entity:
University/State entity
Mailing Address Physical Address
P.O. Box 757140 172 AHRB
Universitvof Alaska Fairbanks, Fairbanks, AK 99775 Universitvof Alaska Fairbanks, Fairbanks, AK 99n5
Telephone
Fax Email
(907)474-7083
fysnras@uaf.edu(907)474-6567
1.1 APPLICANT POINT OF CONTACT
Name Title
Carol E. Lewis
Dean and director
School of Natural Resources and Agricultural Sciences
AQricultural and Forestry Experiment Station
Mailing Address
P.O. Box 757140
University of Alaska Fairbanks
Fairbanks, AK 99775
Telephone Fax Email
(907)474-7083 (907)474-6567 celewis@alaska.edu
1.2 APPLICA(\,iT 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
A local government, or
X 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.)
No 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. (PROJECT CONSTRUCTION IS NOT
A PART OF THIS PROPOSAL)
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SECTION 2 -PROJECT SUMMARY
This is intended to be no more than a 1-2 page oveNiew ofyour project.
2.1 Project Title -(Provide a 4 to 5 word title for your project)
Biomass for Energy:-Supply Side Knowledge Base
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.
This is a statewide project, but will be headquartered in Fairbanks.
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)
X Reconnaissance Design and Permitting
Feasibility Construction and Commissioning
Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
There are numerous projects that are planned or are being implemented, especially in rural
Alaska, that will use biomass as the sole or major energy source for heat and/or power. These
projects have dealt with such questions as how much energy needs to be produced, boiler size
and type, and capital costs for installation of biomass burning equipment, and in some cases
actual construction. However, they have for the most part ignored the supply side of the
equation. Some important questions that must be addressed before Alaska communities can
expect to successfully and sustainably use biomass as an energy source are: how much biomass
is needed for any given energy producing system; how much biomass is currently available; how
much land is needed to supply the biomass; what is the total cost of supply including harvest and
logistics of handling, storage, and transport; how fast will biomass regrow with or without
management; and it is feasible to farm biomass in Alaska? All must be considered before the
myriad of biofuel projects proposed and envisioned can successfully move forward, and before
existing, commercially available technologies that use biomass to produce energy for heat, fuel,
and power can be most effectively, and most successfully, deployed. Although some information
exists to address these questions, it is scattered and often in formats not readily available. This
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project addresses the availability, quality and feasibility of sustainable, economic use of
agricultural and forestry biomass in Alaska. The goal of the project is to I) assimilate all
existing information on the total forest and crop biomass available in Alaska into one data base,
2) determine the gaps in the data base and the information needed to fill the gaps, and 3) when
possible, determine the biological, physical, and economic feasibility of using Alaskan biomass
as biofuels. The project will have major statewide application as it will serve as the basis for all
agricultural and forestry biomass-based energy projects; the greatest number of which are being
proposed for rural and village communities. Project cooperators are the School of Natural
Resources and Agricultural Sciences(SNRAS) and the Agricultural and Forestry Experiment
Station(AFES) at the University of Alaska Fairbanks(UAF) (project primary/agricultural energy
crops and forest biomass), Fairbanks Economic Development Corporation(PEDC) (logistics,
data support, and information dissemination), Alaska Division of Forestry (forest biomass, and
harvest, transport, and storage technologies), and Tanana Chiefs Conference (current biomass
assessment projects, forest inventories)..
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.)
There are currently a number of biomass-to-energy projects functioning or under consideration
across Alaska. It is expected that many of the projects seeking funding under this Renewable
Energy Grant Fund program will also be for construction of biomass units for generating heat
and power. However, most of these projects have not adequately addressed the question of
current and future supplies of biomass to maintain them over time. The information that
currently exists to address a sustainable source of biomass supply is either scattered and/or not
organized in a manner that enables quantifiable answers to be provided to those who have an
intense interest in harvesting, producing, and using biomass for fuel, or is simply unavailable.
A preliminary survey of existing research and information conducted by the Participating
Applicants indicates:
Available Information
a. Forest inventory for parts of Alaska
1. Alaska Division of Forestry inventory delineating forest type (eg mixed stand,
hardwood [birch, aspen, poplar], spruce)
2. Tanana Chiefs Conference (TCC) Forestry forest inventory databases (Native
allotment projects in interior, southwest, and western Alaska; ANCSA village
corporation inventories on approximately 3 million acres across interior Alaska)
3. University of Alaska Fairbanks SNRAS and APES Cooperative Alaska Forest
Inventory (CAFI) across Alaska's boreal forests
b. Crop inventory for Alaska
1. Grain and grass crops can be produced in Alaska and residues that may available
for energy feed stocks can be estimated
2. Woody crops are not currently grown as crops in Alaska and only very limited
estimates on potential productivity are available
3. There are limited estimates of standing biomass in non-intensively managed
fields.
c. Current infrastructure for harvesting, storing, and moving processed product
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1. Road networks for moving timber are delineated
2. Firms involved in the limited timber industry in Alaska are known
Important Information Gaps
a. Volume of biomass available for energy including forest floor and waste
b. Growth, yield, and sustainable management of Alaska's forests for biomass
c. Biomass regrowth potential following biomass harvest
d. Biomass production potential under various agricultural systems including farmed woody
and grass biomass.
Other Needed Information:
a. Management information for crops that pertains to biomass not for food or feed
b. Forest management for harvest for biomass -not economically viable species for timber
c. Economic viability of Alaska biomass feedstocks
d. Cost of crop production
i. Cost of forest management
ii. Cost of forest & other land treatments
iii. Infrastructure -capital and operating cost
iv. Equipment -capital and operating cost
a). crop planting and harvest
b). biomass harvest
v. Processing
vi. On-site storage
vii. Transportation
viii. Off-site storage
ix. Land profitability in alternative uses
e. Energy units available by biomass feedstock source
Provision of the information we have identified as existing in a complete and usable information
base and filling the information gaps we have identified will be of direct benefit to all Alaskans
who wish to use harvested/cultivated biomass as a biofuel. This will be particularly the case for
rural and village communities where the need to reduce the cost of energy is most acute.
The preliminary survey we have conducted identifies a starting point to use to compile the
existing data base. The brief gap identification analysis we have presented will also serve as a
base to acquire information we do not have and will allow us to better target future research
endeavors and outreach endeavors. The information base we compile and the gaps we identify
will provide policy makers a framework through which to more fully understand the critical need
to characterize the supply of biomass available in Alaskan forests and through crop production as
they provide much needed technology to Alaskans who wish to sustainable and efficient utilize
alternative power and heat sources to oil and gas.
This project will underpin most, if not all, future projects intending to use agricultural and/or
forest biomass as their major or sole fuel component and serve as a primary point of reference in
the feasibility phase of future agricultural and forestry biomass to energy projects.
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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 amount of funding requested from AEA is $212,942 over a period of 2 years from July 1,
2010 through June 30, 2012. The project will be administered by the University of Alaska
Fairbanks (UAF) through SNRAS/APES. Each senior project investigator is provided with 2
weeks of salary per year to assure appropriate project oversight in the major project components
in agronomic crops, forestry, and economics. One graduate student is funded over two years to
work primarily in economics assimilating information and participating in the economic analysis.
All travel is in Alaska to assure coordination of data bases. Formal publication of information
throughout the project will be by the SNRASIAPES Public Information Office. There are three
subcontracts: 1) PEDC for outreach and information dissemination, 2) Alaska Division of
Forestry for compilation of existing data bases and gap analysis, and TCC for compilation of
existing data bases and gap analysis.
The UAF through SNRAS/APES will lever its federal formula funds that it receives for applied
research in agriculture (Hatch Act) and forestry (McIntire-Stennis Act) pursuant to its mission as
a land-grant institution.
The Alaska Division of Forestry is presently conducting a forest inventory of the Tanana Valley
State Forest, encompassing approximately 1.8 million acres in the interior of Alaska in the
middle and upper Tanana Basin. The project is funded with state general fund monies. Forestry
will contribute all of this information to this research project. It will also lever all information
that is gathered from the biomass inventory being conducted on the Tok Area in the community
of Tok. These efforts are underway to determine the per acre volume of biomass available in a
variety of timber types. Work is being conducted by state Wildland Fire and Resource
Technicians under the direction of the Tok Area Forester, Jeff Hermanns. All work is being
done in accordance to the guidelines and parameters established by Dr. Jingjing Liang, Assistant
Professor of Forest Management, and Research Assistant Tom Malone of the University of
Alaska -Fairbanks.
PEDC will make available to this project the preliminary woody biomass assessment embodied
in the Interior Issues Council's 2007 Cost of Energy Taskforce Fairbanks Energy Business Plan
and all other pertinent information gathered in pursuance of its promotion of the Valued-Added
Forest Products industry. It will also lever the results of the Biomass/Coal-to-Liquids Pre
feasibility & Engineering study. PEDC personnel involved in the project are involved in
ongoing energy project work and will require operating support and either no or only partial
salary support.
The TCC has substantial detailed information on the forests in the Doyon Region. It will provide
these data bases as a part of leverage against this ABA requested funding. Their work is
coordinated with the Alaska Division of Forestry.
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2.7 COST AND BENEFIT SUMARV
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. $ 212,942
2.7.2 Other Funds to be provided (Project match)* $0
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $ 212,942
*We have stated the fund sources we will use as leverage. The UAF does not allow match of
any type unless it is required.
Project Costs & Benefits
(Summary of total project costs including work to date and future cost estimates to get to a fully
operailonalprojeclj
2.7.4 Total Project Cost (Summary from Cost Worksheet
including estimates through construction)
$ 212,942
2.7.5 Estimated Direct Financial Benefit (Savings) $SEEABOVE
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.)
$ SEE ABOVE
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 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.
Carol E. Lewis for SNRAS/AFES
J omo Stewart for FEDC
Mark Eliot for Division of Forestry
Will Putman for TCC
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.)
See Attachment for Timeline Table
Assimilate existing information July 1, 2010 -February 28, 2011
Develop format for data base July 1, 2010 -October 31,2011
Publish information data base March 1,2011 -June 30,2011
Gap Analysis February I, 2011
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Determine how gaps are filled
Publish gap analysis
Biological feasibility analysis
Economic feasibility analysis
Publish biological and economic analysis
Publish final results
Disseminate public information
August 1, 2011 -October 31, 2011
November 1, 2011-January 31, 2012
May 1,2011 -October 31,2011
May 1, 2011 -October 31,2011
November 1, 2011 -January 31, 2010
February 1,2012 -June 30, 2012
July 1,2010 -June 30,2012
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.)
1. Preliminary design analysis and costs July 1, 2010 -January 31, 2012
a. Assimilate existing information
b. Develop format for data base
c. Publish information data base
d. Gap analysis
e. Determine how gaps are to be filled
f. Publish gap analysis
2. Simple economic analysis May 1,2011 -January 31, 2012
a. Biological feasibility analysis
b. Economic feasibility analysis
c. Publish biological and economic analyses
3. Final report and recommendations February 1, 2012 -June 30, 2012
a. Publish final results
b. Disseminate public information (throughout project)
Our key tasks from the project schedule in Section 3.2 are categorized under the milestones
indicated in the budget worksheet. This designation along with dates of completion indicate how
we will manage cash flow.
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.
Carol E. Lewis -Project Manager
Stephen D. Sparrow -Bioenergy crops lead
Jingjing Liang -Forest Inventory and Management lead
Joshua Greenberg -Economic feasibility lead
Mark Eliot-Forest biomass lead
Jomo Stewart -logistics, data management, public information dissemination lead
The project is a data gathering, data management and feasibility analysis project.
SNRAS/AFES, FEDC, Alaska Division of Forestry, and TCC resources and data bases will be
utilized.
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Resumes for Key Personnel Attached.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
All project monitoring will be the responsibility of the Project Manager. Three reports to ABA,
each at the completion of a major phase of the project, are listed in the timelines. PEDC will be
the responsible partner for public information dissemination throughout the project.
3.6 Project Risk
Discuss potential problems and how you would address them.
This is a low-risk project. Most needed data bases reside with the project partners and/or are a
part of public record and published material. The methodology is well known for constructing
cost/supply side models that will depict benefit/cost scenarios associated with the use of different
types of forest and crop biomass and the technology application. All partners have
commissioned, designed, and/or authored and directed graduate students in conducting feasibility
studies of this nature.
SECTION 4 -PRO"IECT 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.
On its face, Alaska's forest and agricultural resource potential is immense. The project seeks to
better qualify/quantify those resources and addresses the question of availability, quality and
feasibility of biomass so that it might be used in Alaska as an economic, sustainable fuel source.
The overall goal of the project is to 1) assimilate all available information on the total forest and
crop biomass available in Alaska into one data base, 2) determine the gaps in the data base and
the information needed to fill the gaps, and 3) determine the biological, physical (eg
infrastructure, handling, storage, transport logistics), and economic feasibility of using Alaskan
biomass as biofuels. The project will address the entire array of agricultural and forestry biomass
that might potentially serve as biofuel source and assess the pros and cons of each in the
framework of chemical, physical, and economic viability.
Completion of the proposed project will be necessary before the requested information on pros
and cons of the proposed energy resource or alternatives can be provided to those who intend to
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use agricultural and forestry biomass as a total or partial source for energy generation.
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.
NOT APPLICABLE TO lliIS PROPOSAL
4.2.2 Existing Energy Resources Used
BrieHy discuss your understandillg of the existing energy resources. Include a brief discussion of
any impact the project may have on eXisting energy infrastructure and resources.
Alaska contains vast forested lands and lands that have agricultural production capability.
However, a forest inventory analysis (FIA) for Alaska is incomplete at best. Agricultural land
surveys exist for most of the state, but are also not complete. Additionally, large masses of the
productive forest and agricultural lands are not within reach of current transportation
infrastructure and existing electrical or power supplies.
The U.S. Forest Service information for Alaskan forests dates to the mid 1900s. The School of
Natural Resources and Agricultural Sciences and the Agricultural and Forestry Experiment
Station's Growth and Yield Program has information along the road system from the Kenai
Peninsula to the Brooks Range but primarily for species with timber potential rather than biomass
potential. The Alaska Division of Forestry in the Department of Natural Resources also has
comprehensive data for timber production potential from forests along the road system. The
Tanana Chiefs Conference has collected and maintains forest inventory information on Native
allotments and ANCSA village corporation lands across interior Alaska, but again, only for
timber not biomass. These data bases have not been merged into a single data management
system.
Agricultural land surveys for Alaska are published by the USDA Natural Resource Conservation
Service (NRCS). It is estimated that within the road system there are 500,000 acres of crop able
lands. Grain, grass, and oilseed crops are likely candidates for energy use. The USDA National
Agricultural Statistics Service (NASS) provides statistics for grain and hay. There are no statistics
for oilseeds or crop residues although amounts could be estimated. Woody biomass as a crop is
also a potential energy source. There have been reasonable successes with these crops in other
northern areas and research at the University of Alaska Fairbanks under the Agricultural and
Forestry Experiment Station is progressing. Willow and poplar are the species most frequently
used and our included in the research.
The Western Governors' Association in the review draft of "Biomass Electric Supply Sources for
the Western States" (2005) estimated biomass resources in the western states including Alaska.
The major categories included agricultural, forest, and urban biomass resources. However, much
of the information regarding crop residues, energy crops, unused logging slash, primary sawmill
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residues, biosolids, wastewater, and landfill waste had to be estimated based on an average from
selected western states, calculated on a per capita or per acre basis as applicable, then
extrapolated to obtain totals. Preliminary calculations indicate that this extrapolation is not
accurate for Alaska.
Existing information is scattered and not organized in a manner specifically directed to give
quantifiable answers to those with an interest in using biomass as a dedicated fuel stock. The
resources given are only those we have determined in our initial survey. This proposal, if funded,
will allow us to develop as complete a data base as possible for Alaska and assemble that
information into a usable format. As stated previously, identification of gaps will provide the state
of Alaska with the knowledge it needs to fill in the gaps and assure that the biomass resource used
for energy generation will sustain providers into the future.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
A vailable information regarding energy production and usage in Alaska can be gleaned from a
number of sources and in varying levels of detail. A broad stroke analysis can be found in the
document titled, "How Would $1,200 Per Person State Payments Compare With Increased
Household Costs for Energy Use?" recently published by ISER. For a more detailed, regional
analysis, one can look to the Interior Issues Council's 2007 Cost of Energy Taskforce Fairbanks
Energy Business Plan. What is clear is that communities that do not have access to the
southcentral Alaska natural gas distribution system, particularly in northern, northwestern,
western and interior Alaska, rely heavily (75%+) on high cost petroleum based fuels to satisfy
their home/space heating needs. Most also use petroleum products for their electrical generation
needs. The negative aspects of this reliance are further compounded in relatively isolated rural
and village communities by the high cost of transporting these expensive fuels to point of use.
It is this high end-use fuel cost that is driving many individuals and communities to seek
alternative fuel sources, especially in the critical realm of home/space heating. And "biomass"
because of its apparent wide distribution, abundance, proximity to affected communities, easy
availability and assumed low cost if combusted in an appropriate technology, is being strongly
considered as a means of alleviating the fuel cost dilemma.
Biomass boilers are currently operating or are planned for many rural Alaska communities.
However, in the absence of this study, or one similar to it, many of these projects have and will be
moving forward on biomass availability, sustainability and economic optimization assumptions
that are at best incomplete, and at worst purely anecdotal.
This project will indirectly impact energy consumers throughout Alaska by underpinning most, if
not all, future projects intending to use agricultural and/or forestry biomass as their major or sole
fuel component, and by providing a primary point of reference in the feasibility phase of future
agricultural and forestry biomass to energy projects that may be considered for or within
communities.
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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 spedfic to project location
• Optimum installed capacity
• Anticipated capacity factor
• Anticipated annual generation
• Anticipated barriers
• Basic integration concept
• Deliverv methods
NOT APPLICABLE FOR THIS PROJECT
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.
NOT APPLICABLE FOR THIS PROJECT
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 WILL BE REQUIRED FOR TillS 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
• Identifv and discuss other potential barriers
THERE WILL BE NO DIRECT ENVIRONMENTAL IMPACT DUE TO THIS
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PROJECT.
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
NOT APPLICABLE FOR THIS PROJECT
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.)
NOT APPLICABLE FOR THIS PROJECT
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 FOR THIS PROJECT
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
THIS COST SHEET IS NOT APPLICABLE TO TIDS PROJECT. THE PROJECT IS A
FEASIBILITY STUDY, NOT A CONSTRUCTION PROJECT.
101712009AEA10-015 Grant Application Page 13 of 16
Renewable Energy Fund
Grant Application Round 3
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 Le. a Proposed Power Purchase Agreement price,
RCA tariff, or cost based rate)
• Potential additional annual incentives (Le. tax credits)
• Potential additional annual revenue streams (Le. 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
This information is addressed in Sections 2.5 PROJECT BENEFIT, 4.1 PROPOSED ENERGY
RESOURCE, 4.2.3 EXISTING ENERGY MARKET.
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
NOT APPLICABLE FOR THIS PRO"IECT
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.
Section 2.5, PROJECT BENEFIT, provides our initial survey of information available regarding
biomass for the use in energy generation in Alaska. This section also provides our initial gap
analysis detailing what information is needed if biomass from Alaska's forests and agricultural
production is to be efficiently, effectively, and sustainably used in Alaska. We will proceed with
our detailed information compilation and gap analysis as soon as the grant is approved as we have
indicated in our timelines.
No other grants have been awarded to perform the specific tasks we describe in this proposal.
However, the work is highly leveraged with federal formula funds that are provided to land-grant
universities' agricultural experiment stations and cooperative extension services to perform
research and outreach that benefits the state in which they are located. These funds, at the
AEA10-015 Grant Application Page 14 of 16 10f1l2009
Renewable Energy Fund
Grant Application Round 3
University of Alaska Fairbanks come to SNRAS/AFES for research. State of Alaska general
funds support the work of the Division of Forestry in inventorying Alaska's forests. TCC is
supported through federal grants and funds from Alaska Native associations. Without these
sources of funding, and successful completion of research and outreach associated with them, the
presentation of this grant proposal would not be possible.
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 Fairbanks North Star Borough has long understood the necessity for a comprehensive and
usable information base that is available to those interested in biomass for energy technology
applications. Two examples that stand out are their recent work with the U.S. Air Force and the
Fairbanks Economic Development Corporation on a coal to liquids power generation plant for the
Fairbanks area and/or for Eielson Air Force Base. The University of Alaska Fairbanks must
replace its power plant in the near future. Its preliminary plans are to install a plant that will use
biomass in combination with coal and natural gas should it become available. Alaska Power and
Telephone in partnership with Dalson Energy is planning on installing a 3 MW generation plant
that will liquefy biomass in the Tok area. TCC is working with villages on the Yukon River that
are interested in smaller generation units. All of these proposed plans are going forward without a
reasonable estimate of the biomass available in Alaska's interior let alone a management plan on
how to sustain the supply of biomass for the future. The interest in biomass use for energy
generation is not as acute south of the Alaska Range as it is to the north. However, as demand for
natural gas increases and the supply is not increased, this interest will most likely expand.
We do not foresee any potential opposition to this project. We have attached letters of support
attesting to the need for the information we propose to generate.
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
We have provided the amount asked in section 2.6: Budget Project Overview, and have provided
a detailed explanation. The leverage all project participants will provide to make this project a
reality is detailed in Section 2.6 as well. The form Grant Budget 3.doc is appendicized.
AEA 10-015 Grant Application Page 15 of 16 10!7/2009
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Grant Application Round 3
SECTION 9 -ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION:
A. 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 RF A Section 1.6.
F. 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.
F. 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 An dreJA1 P~f"'kusoYJ -Grr1fJ
Signature ~
Title J)~~~ UAr:-a+:r1a,o('SfX"?,satetJ PtT{9~
Date 11;'0101
101712009AEA10-015 Grant Application Page 16 of 16
Renewable Energy Fund Round 3 I~ALASKA
.-D ENERGY AUTHORITY Grant Application
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/REFund-lIl.html
Grant Application
Form
G rantApp3.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
Costworksheet3
.doc
Summary of Cost information that should be addressed by
applicants in preparing their application .
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
GrantBudget3.d
oc
Grant Budget
Form Instructions
GrantBudgetl nst
ructions3.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 MC 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.
AEA 10-015 Application Page 1 of 16 10nl2009
I
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Grant Application Round 3
SECTION 1 -APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
University of Alaska Fairbanks
Type of Entity:
UniversitylState entity
Mailing Address
P.O. Box 757140
Universitvof Alaska Fairbanks, Fairbanks, AK 99775
Telephone Fax
(907)474-7083 (907)474-6567
1.1 APPLICANT POINT OF CONTACT
Name
Carol E. Lewis
Mailing Address
P.O. Box 757140
University of Alaska Fairbanks
Fairbanks, AK 99775
Telephone Fax
(907)474-7083 (907)474-6567
Physical Address
172 AHRB
University of Alaska Fairbanks, Fairbanks, AK 99775
Email
fysnras@uaf.edu
Title
Dean and director
School of Natural Resources and Agricultural Sciences
Agricultural and Forestry Experiment Station
Email
celewis@alaska.edu
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application wjJJ 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
A local government, or
X 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.)
No 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. (PROJECT CONSTRUCTION IS NOT
A PART OF THIS PROPOSAL)
AEA 10-015 Grant Application Page 2 of 16 101712009
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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)
Biomass for Energy:-Supply Side Knowledge Base
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.
This is a statewide project, but will be headquartered in Fairbanks.
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)
X Reconnaissance Design and Permitting
Feasibility Construction and Commissioning
Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
There are numerous projects that are planned or are being implemented, especially in rural
Alaska, that will use biomass as the sole or major energy source for heat and/or power. These
projects have dealt with such questions as how much energy needs to be produced, boiler size
and type, and capital costs for installation of biomass burning equipment, and in some cases
actual construction. However, they have for the most part ignored the supply side of the
equation. Some important questions that must be addressed before Alaska communities can
expect to successfully and sustainably use biomass as an energy source are: how much biomass
is needed for any given energy producing system; how much biomass is currently available; how
much land is needed to supply the biomass; what is the total cost of supply including harvest and
logistics of handling, storage, and transport; how fast will biomass regrow with or without
management; and it is feasible to farm biomass in Alaska? All must be considered before the
myriad of biofuel projects proposed and envisioned can successfully move forward, and before
existing, commercially available technologies that use biomass to produce energy for heat, fuel,
and power can be most effectively, and most successfully, deployed. Although some information
exists to address these questions, it is scattered and often in formats not readily available. This
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project addresses the availability, quality and feasibility of sustainable, economic use of
agricultural and forestry biomass in Alaska. The goal of the project is to 1) assimilate all
existing information on the total forest and crop biomass available in Alaska into one data base,
2) determine the gaps in the data base and the information needed to fill the gaps, and 3) when
possible, determine the biological, physical, and economic feasibility of using Alaskan biomass
as biofuels. The project will have major statewide application as it will serve as the basis for all
agricultural and forestry biomass-based energy projects; the greatest number of which are being
proposed for rural and village communities. Project cooperators are the School of Natural
Resources and Agricultural Sciences(SNRAS) and the Agricultural and Forestry Experiment
Station(AFES) at the University of Alaska Fairbanks(UAF) (project primary/agricultural energy
crops and forest biomass), Fairbanks Economic Development Corporation(FEDC) (logistics,
data support, and information dissemination), Alaska Division of Forestry (forest biomass, and
harvest, transport, and storage technologies), and Tanana Chiefs Conference (current biomass
assessment projects, forest inventories)..
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.)
There are currently a number of biomass-to-energy projects functioning or under consideration
across Alaska. It is expected that many of the projects seeking funding under this Renewable
Energy Grant Fund program will also be for construction of biomass units for generating heat
and power. However, most of these projects have not adequately addressed the question of
current and future supplies of biomass to maintain them over time. The information that
currently exists to address a sustainable source of biomass supply is either scattered and/or not
organized in a manner that enables quantifiable answers to be provided to those who have an
intense interest in harvesting, producing, and using biomass for fuel, or is simply unavailable.
A preliminary survey of existing research and information conducted by the Participating
Applicants indicates:
Available Information
a. Forest inventory for parts of Alaska
1. Alaska Division of Forestry inventory delineating forest type (eg mixed stand,
hardwood [birch, aspen, poplar], spruce)
2. Tanana Chiefs Conference (TCC) Forestry forest inventory databases (Native
allotment projects in interior, southwest, and western Alaska; ANCSA village
corporation inventories on approximately 3 million acres across interior Alaska)
3. University of Alaska Fairbanks SNRAS and AFES Cooperative Alaska Forest
Inventory (CAFI) across Alaska's boreal forests
b. Crop inventory for Alaska
1. Grain and grass crops can be produced in Alaska and residues that may available
for energy feed stocks can be estimated
2. Woody crops are not currently grown as crops in Alaska and only very limited
estimates on potential productivity are available
3. There are limited estimates of standing biomass in non-intensively managed
fields.
c. Current infrastructure for harvesting, storing, and moving processed product
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.-:J ENERGY AUTHORITY Grant Application Round 3
1. Road networks for moving timber are delineated
2. Firms involved in the limited timber industry in Alaska are known
Important Information Gaps
a. Volume of biomass available for energy including forest floor and waste
b. Growth, yield, and sustainable management of Alaska's forests for biomass
c. Biomass regrowth potential following biomass harvest
d. Biomass production potential under various agricultural systems including farmed woody
and grass biomass.
Other Needed Information:
a. Management information for crops that pertains to biomass not for food or feed
b. Forest management for harvest for biomass -not economically viable species for timber
c. Economic viability of Alaska biomass feedstocks
d. Cost of crop production
i. Cost of forest management
11. Cost of forest & other land treatments
iii. Infrastructure -capital and operating cost
iv. Equipment -capital and operating cost
a). crop planting and harvest
b). biomass harvest
v. Processing
vi. On-site storage
vii. Transportation
viii. Off-site storage
ix. Land profitability in alternative uses
e. Energy units available by biomass feedstock source
Provision of the information we have identified as existing in a complete and usable information
base and filling the information gaps we have identified will be of direct benefit to all Alaskans
who wish to use harvested/cultivated biomass as a biofuel. This will be particularly the case for
rural and village communities where the need to reduce the cost of energy is most acute.
The preliminary survey we have conducted identifies a starting point to use to compile the
existing data base. The brief gap identification analysis we have presented will also serve as a
base to acquire information we do not have and will allow us to better target future research
endeavors and outreach endeavors. The information base we compile and the gaps we identify
will provide policy makers a framework through which to more fully understand the critical need
to characterize the supply of biomass available in Alaskan forests and through crop production as
they provide much needed technology to Alaskans who wish to sustainable and efficient utilize
alternative power and heat sources to oil and gas.
This project will underpin most, if not all, future projects intending to use agricultural and/or
forest biomass as their major or sole fuel component and serve as a primary point of reference in
the feasibility phase of future agricultural and forestry biomass to energy projects.
AEA 10-015 Grant Application Page 5 of 16 10f1l2009
Renewable Energy Fund I~ALASKA
-=:I ENERGY AUTHORITY Grant Application Round 3
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 amount of funding requested from AEA is $212,942 over a period of 2 years from July 1,
2010 through June 30,2012. The project will be administered by the University of Alaska
Fairbanks (UAF) through SNRAS/APES. Each senior project investigator is provided with 2
weeks of salary per year to assure appropriate project oversight in the major project components
in agronomic crops, forestry, and economics. One graduate student is funded over two years to
work primarily in economics assimilating information and participating in the economic analysis.
All travel is in Alaska to assure coordination of data bases. Formal publication of information
throughout the project will be by the SNRAS/APES Public Information Office. There are three
subcontracts: 1) PEDC for outreach and information dissemination, 2) Alaska Division of
Forestry for compilation of existing data bases and gap analysis, and TCC for compilation of
existing data bases and gap analysis.
The UAF through SNRAS/APES will lever its federal formula funds that it receives for applied
research in agriculture (Hatch Act) and forestry (McIntire-Stennis Act) pursuant to its mission as
a land-grant institution.
The Alaska Division of Forestry is presently conducting a forest inventory of the Tanana Valley
State Forest, encompassing approximately 1.8 million acres in the interior of Alaska in the
middle and upper Tanana Basin. The project is funded with state general fund monies. Forestry
will contribute all of this information to this research project. It will also lever all information
that is gathered from the biomass inventory being conducted on the Tok Area in the community
of Tok. These efforts are underway to determine the per acre volume of biomass available in a
variety of timber types. Work is being conducted by state Wildland Fire and Resource
Technicians under the direction of the Tok Area Forester, Jeff Hermanns. All work is being
done in accordance to the guidelines and parameters established by Dr. Jingjing Liang, Assistant
Professor of Forest Management, and Research Assistant Tom Malone of the University of
Alaska -Fairbanks.
PEDC will make available to this project the preliminary woody biomass assessment embodied
in the Interior Issues Council's 2007 Cost of Energy Taskforce Fairbanks Energy Business Plan
and all other pertinent information gathered in pursuance of its promotion of the Valued-Added
Forest Products industry. It will also lever the results of the Biomass/Coal-to-Liquids Pre
feasibility & Engineering study. PEDC personnel involved in the project are involved in
ongoing energy project work and will require operating support and either no or only partial
salary support.
The TCC has substantial detailed information on the forests in the Doyon Region. It will provide
these data bases as a part of leverage against this ABA requested funding. Their work is
coordinated with the Alaska Division of Forestry.
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~ ENERGY AUTHORITY Grant Application Round 3
2]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. $215,912
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) $215,912
*We have stated the fund sources we will use as leverage. The UAF does not allow match of
any type unless it is required.
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
inclu(ling estimates through construction)
$215,912
2.7.5 Estimate(lDirect Financial Benefit (Savings) $SEE ABOVE
2.7.6 Other Public Benefif(lfyou can calculate the benefitin
terms ofdollars please provide that number here and
explain how you calculated that number in your application
(Section 5.)
$ SEE ABOVE
SECTION 3 -PROJECT MANAGEMENT PLAN
Describe who wi/tbe 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 ProjecfManager
Telluswho. will be managing the project for the Grantee and include 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.
Type in your answer here andfollow same format for rest ofthe application.
Carol E. Lewis for SNRAS/AFES
Jomo Stewart for FEDC
Mark Eliot for Division of Forestry
Will Putnam for TCC
3.2 Project Schedule
Include a schedulefor the proposed work that will be funded by this grant. (You may include a
chart or table attachment withasummarv of dates below.)
See attachment for Timeline Table
Assimilate existing information
Develop format for data base
Publish information data base
Gap analysis
July 1, 20 1O-February 28, 2011
July 1, 20 1O-October 31, 2011
March 1,2011-June 30, 2011
February 1,2011
Renewable Energy Fund
Grant Application Round 3
Determine how gaps are filled
Publish gap analysis
Biological feasibility analysis
Economic feasibility analysis
Publish biological and economic analysis
Publish final results
Disseminate public information
August 1, 2011 -October 31,2011
November 1,2011 -January 31, 2012
May 1,2011 -October 31,2011
May 1,2011 -October 31,2011
November 1,2011 -January 31,2010
February 1,2012 -June 30,2012
July 1,2010 -June 30, 2012
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.)
1. Preliminary design analysis and costs July 1, 2010 -January 31, 2012
a. Assimilate existing information
b. Develop format for data base
c. Publish information data base
d. Gap analysis
e. Determine how gaps are to be filled
f. Publish gap analysis
2. Simple economic analysis May 1,2011 -January 31,2012
a. Biological feasibility analysis
b. Economic feasibility analysis
c. Publish biological and economic analyses
3. Final report and recommendations February 1,2012 June 30,2012
a. Publish final results
b. Disseminate public information (throughout project)
Our key tasks from the project schedule in Section 3.2 are categorized under the milestones
indicated in the budget worksheet. This designation along with dates of completion indicate how
we will manage cash flow.
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.
Carol E. Lewis -Project Manager
Stephen D. Sparrow -Bioenergy crops lead
Jingjing Liang -Forest Inventory and Management lead
Joshua Greenberg -Economic feasibility lead
Mark Eliot-Forest biomass lead
lomo Stewart -logistics, data management, public information dissemination lead
The project is a data gathering, data management and feasibility analysis project.
SNRAS/AFES, PEDC, Alaska Division of Forestry, and TCC resources and data bases will be
utilized.
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Resumes for Key Personnel Attached.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
All project monitoring will be the responsibility of the Project Manager. Three reports to AEA,
each at the completion of a major phase of the project, are listed in the timelines. PEDC will be
the responsible partner for public information dissemination throughout the project.
3.6 Project Risk
Discuss potential problems and how you would address them.
This is a low-risk project. Most needed data bases reside with the project partners and/or are a
part of public record and published material. The methodology is well known for constructing
cost/supply side models that will depict benefit/cost scenarios associated with the use of different
types of forest and crop biomass and the technology application. All partners have
commissioned, designed, and/or authored and directed graduate students in conducting feasibility
studies of this nature.
SECTION 4 .... PROJECT DESCRIPTION AND TASKS
• Tel/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.
On its face, Alaska's forest and agricultural resource potential is immense. The project seeks to
better qualify/quantify those resources and addresses the question of availability, quality and
feasibility of biomass so that it might be used in Alaska as an economic, sustainable fuel source.
The overall goal of the project is to 1) assimilate all available information on the total forest and
crop biomass available in Alaska into one data base, 2) determine the gaps in the data base and
the information needed to fill the gaps, and 3) determine the biological, physical (eg
infrastructure, handling, storage, transport logistics), and economic feasibility of using Alaskan
biomass as biofuels. The project will address the entire array of agricultural and forestry biomass
that might potentially serve as biofuel source and assess the pros and cons of each in the
framework of chemical, physical, and economic viability.
Completion of the proposed project will be necessary before the requested information on pros
and cons of the proposed energy resource or alternatives can be provided to those who intend to
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use agricultural and forestry biomass as a total or partial source for energy generation.
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.
NOT APPLICABLE TO THIS PROPOSAL
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.
Alaska contains vast forested lands and lands that have agricultural production capability.
However, a forest inventory analysis (PIA) for Alaska is incomplete at best. Agricultural land
surveys exist for most of the state, but are also not complete. Additionally, large masses of the
productive forest and agricultural lands are not within reach of current transportation
infrastructure and existing electrical or power supplies.
The U.S. Forest Service information for Alaskan forests dates to the mid 1900s. The School of
Natural Resources and Agricultural Sciences and the Agricultural and Forestry Experiment
Station's Growth and Yield Program has information along the road system from the Kenai
Peninsula to the Brooks Range but primarily for species with timber potential rather than biomass
potential. The Alaska Division of Forestry in the Department of Natural Resources also has
comprehensive data for timber production potential from forests along the road system. The
Tanana Chiefs Conference has collected and maintains forest inventory information on Native
allotments and ANCSA village corporation lands across interior Alaska, but again, only for
timber not biomass. These data bases have not been merged into a single data management
system.
Agricultural land surveys for Alaska are published by the USDA Natural Resource Conservation
Service (NRCS). It is estimated that within the road system there are 500,000 acres of crop able
lands. Grain, grass, and oilseed crops are likely candidates for energy use. The USDA National
Agricultural Statistics Service (NASS) provides statistics for grain and hay. There are no statistics
for oilseeds or crop residues although amounts could be estimated. Woody biomass as a crop is
also a potential energy source. There have been reasonable successes with these crops in other
northern areas and research at the University of Alaska Fairbanks under the Agricultural and
Forestry Experiment Station is progressing. Willow and poplar are the species most frequently
used and our included in the research.
The Western Governors' Association in the review draft of "Biomass Electric Supply Sources for
the Western States" (2005) estimated biomass resources in the western states including Alaska.
The major categories included agricultural, forest, and urban biomass resources. However, much
of the information regarding crop residues, energy crops, unused logging slash, primary sawmill
10/7/2009AEA10-015 Grant Application Page 10 of 16
Renewable Energy Fund I~ALASKA
-.L) ENERGY AUTHORITY Grant Application Round 3
residues, biosolids, wastewater, and landfill waste had to be estimated based on an average from
selected western states, calculated on a per capita or per acre basis as applicable, then
extrapolated to obtain totals. Preliminary calculations indicate that this extrapolation is not
accurate for Alaska.
Existing information is scattered and not organized in a manner specifically directed to give
quantifiable answers to those with an interest in using biomass as a dedicated fuel stock. The
resources given are only those we have determined in our initial survey. This proposal, if funded,
will allow us to develop as complete a data base as possible for Alaska and assemble that
information into a usable format. As stated previously, identification of gaps will provide the state
of Alaska with the knowledge it needs to fill in the gaps and assure that the biomass resource used
for energy generation will sustain providers into the future.
4.2.3 Existing Energy Market
Discuss eXisting energy use and its market. Discuss impacts your project may have on energy
customers.
Available information regarding energy production and usage in Alaska can be gleaned from a
number of sources and in varying levels of detail. A broad stroke analysis can be found in the
document titled, "How Would $1,200 Per Person State Payments Compare With Increased
Household Costs for Energy Use?" recently published by ISER. For a more detailed, regional
analysis, one can look to the Interior Issues Council's 2007 Cost of Energy Taskforce Fairbanks
Energy Business Plan. What is clear is that communities that do not have access to the
southcentral Alaska natural gas distribution system, particularly in northern, northwestern,
western and interior Alaska, rely heavily (75%+) on high cost petroleum based fuels to satisfy
their home/space heating needs. Most also use petroleum products for their electrical generation
needs. The negative aspects of this reliance are further compounded in relatively isolated rural
and village communities by the high cost of transporting these expensive fuels to point of use.
It is this high end-use fuel cost that is driving many individuals and communities to seek
alternative fuel sources, especially in the critical realm of home/space heating. And "biomass"
because of its apparent wide distribution, abundance, proximity to affected communities, easy
availability and assumed low cost if combusted in an appropriate technology, is being strongly
considered as a means of alleviating the fuel cost dilemma.
Biomass boilers are currently operating or are planned for many rural Alaska communities.
However, in the absence of this study, or one similar to it, many of these projects have and will be
moving forward on biomass availability, sustainability and economic optimization assumptions
that are at best incomplete, and at worst purely anecdotal.
This project will indirectly impact energy consumers throughout Alaska by underpinning most, if
not all, future projects intending to use agricultural and/or forestry biomass as their major or sole
fuel component, and by providing a primary point of reference in the feasibility phase of future
agricultural and forestry biomass to energy projects that may be considered for or within
communities.
AEA 10-015 Grant Application Page 11 of 16 10f712009
Renewable Energy Fund I~ALASKA
~ ENERGY AUTHORITY Grant Application Round 3
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
• Deliverv methods
NOT APPLICABLE FOR TIDS PROJECT
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.
NOT APPLICABLE FOR TIDS PROJECT
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 WILL BE REQUIRED FOR TIDS 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
• Identify and discuss other potential barriers
THERE WILL BE NO DIRECT ENVIRONMENTAL IMPACT DUE TO THIS
101712009AEA10-015 Grant Application Page 12 of 16
Renewable Energy Fund / :6 ALASKA
~ ENERGY AUTHORITY Grant Application Round 3
PROJECT.
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
NOT APPLICABLE FOR THIS PROJECT
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 the V serve.)
NOT APPLICABLE FOR THIS PROJECT
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 Qrant-funded project
NOT APPLICABLE FOR TIDS PROJECT
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
TIDS COST SHEET IS NOT APPLICABLE TO THIS PROJECT. THE PROJECT IS A
FEASIBILITY STUDY, NOT A CONSTRUCTION PROJECT.
AEA 10-015 Grant Application Page 13 of 16 101712009
Renewable Energy Fund
Grant Application Round 3
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 proiect
This information is addressed in Sections 2.5 PROJECT BENEFIT, 4.1 PROPOSED ENERGY
RESOURCE, 4.2.3 EXISTING ENERGY MARKET.
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
NOT APPLICABLE FOR THIS PROJECT
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.
Section 2.5, PROJECT BENEFIT, provides our initial survey of information available regarding
biomass for the use in energy generation in Alaska. This section also provides our initial gap
analysis detailing what information is needed if biomass from Alaska's forests and agricultural
production is to be efficiently, effectively, and sustainably used in Alaska. We will proceed with
our detailed information compilation and gap analysis as soon as the grant is approved as we have
indicated in our timelines.
No other grants have been awarded to perform the specific tasks we describe in this proposal.
However, the work is highly leveraged with federal formula funds that are provided to land-grant
universities' agricultural experiment stations and cooperative extension services to perform
research and outreach that benefits the state in which they are located. These funds, at the
AEA10-015 Grant Application Page 14 of 16 10f712009
Renewable Energy Fund
Grant Application Round 3
University of Alaska Fairbanks come to SNRAS/AFES for research. State of Alaska general
funds support the work of the Division of Forestry in inventorying Alaska's forests. TCC is
supported through federal grants and funds from Alaska Native associations. Without these
sources of funding, and successful completion of research and outreach associated with them, the
presentation of this grant proposal would not be possible.
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 Fairbanks North Star Borough has long understood the necessity for a comprehensive and
usable information base that is available to those interested in biomass for energy technology
applications. Two examples that stand out are their recent work with the U.S. Air Force and the
Fairbanks Economic Development Corporation on a coal to liquids power generation plant for the
Fairbanks area and/or for Eielson Air Force Base. The University of Alaska Fairbanks must
replace its power plant in the near future. Its preliminary plans are to install a plant that will use
biomass in combination with coal and natural gas should it become available. Alaska Power and
Telephone in partnership with Dalson Energy is planning on installing a 3 MW generation plant
that will liquefy biomass in the Tok area. TCC is working with villages on the Yukon River that
are interested in smaller generation units. All of these proposed plans are going forward without a
reasonable estimate of the biomass available in Alaska's interior let alone a management plan on
how to sustain the supply of biomass for the future. The interest in biomass use for energy
generation is not as acute south of the Alaska Range as it is to the north. However, as demand for
natural gas increases and the supply is not increased, this interest will most likely expand.
We do not foresee any potential opposition to this project. We have attached letters of support
attesting to the need for the information we propose to generate.
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
We have provided the amount asked in section 2.6: Budget Project Overview, and have provided
a detailed explanation. The leverage all project participants will provide to make this project a
reality is detailed in Section 2.6 as well. The form Grant Budget 3.doc is appendicized.
AEA10-015 Grant Application Page 15 of 16 10/7/2009
Renewable Energy Fund / :6 ALASKA
~ENERGY AUTHORITY Grant Application Round 3
A. 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. 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.
F. 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 Afldr~ P~r/::.USOYJ=Gro..t1
Signature a~
Title J)~ r'CC-Iofi U~ r:'" ~<:J(., or SfXY'J~ .p~t'O.fkj'
II/fO(01Date
10/7/2009AEA10-015 Grant Application Page 16 of 16
ATTACHMENT B
Cost Worksheet -Not Applicable
Renewable Energy Fund
Application Cost Worksheet -NOT APPLICABLE
Please note that some fields might not be applicable for all technologies or all project
phases. Level ofinformation detail varies according to phase requirements.
11. Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
i:c;~a~~1f{{411r.~~~:~llr~~.~tt~~cl~~~g;=JlYdJPP.QW~t ~g'P:~!:~biQ;m~§§~ ..fu.:~Jt::':~H!.}:::· ..·:·~·:·:::~,:::~ ::~!r\· ..
2. Existing Energy Generation
1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden
Valley Electric Association, the Oty of Seward Electric Department, Matanuska Electric Association and Anchorage
Municipal light and Power.
RFA AEA 09-004 Application Cost Worksheet revised 9126108 Page 1
Renewable Energy Fund
13. Proposed System Design
14. Project Cost
15. Project Benefits
\6. Power Purchase/Sales Price
RFA AEA 09-Q04 Application Cost Worksheet revised 9/26/08 Page 2
Renewable Energy Fund
17. Project Analysis
RFA AEA 09-004 Application Cost Worksheet revised 9/26108 Page 3
ATTACHMENT C
Grant Budget
Renewable Energy Fund Grant Round III Grant BUdget Form 10-7-09
;{~4~~d~r~t.
·~~;GJ:ant$/dthEir' , .
(List milestones based on phase and type of project. $
See Attached Milestone list. )
January 31,2012 $77,710 $ $77,710Premlimary design analysis and costs
January 31, 2012 $102,547 $ $102,547Simple economic analysis and costs
June 30,2012 $$35,655 $35,655Final report and recommendations
$ $ $
$ $ $
$ $ $
$$ $
$
$215,912$215,912TOTALS
Budget Categories:Prelimary design and
analysis and costs
Direct Labor & Benefits 20,855 $ $ 20,855
Travel & Per Diem 4,200 $ $ 4,200
Equipment $ $
Materials & Supplies $ $
Contractual Services 40,000 $ $ 40,000
Construction Services $ $
Other-IDC 12,655 $ $ 12,655
TOTALS 77,710 $ $ 77,710
Renewable Energy Fund Grant Round III Grant Budget Form 10-7-09
(List milestones based on phase and type of project. $ $ $
See Attached Milestone list. )
Premlimary design analysis and costs January 31,2012 $77,710 $ $77,710
Simple economic analysis and costs January 31, 2012 $102,547 $ $102,547
Final report and recommendations June 30,2012 $35,655 $ $35,655
$ $ $
$ $ $
$ $ $
$ $ $
Travel & Per Diem .... $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $ $ $
Construction Services $
Other-tuition + IDC $38,741 $ $38,741
TOTALS $102,547 $ $102,547
I
Renewable Energy Fund Grant Round III Grant Budget Form 10-7-09
..., "*~E~~'"f~,i~~t'::Q~~~"hr~
~;:i~rll~~;::
~ of project. I $
January 31,2012 $77,710Premlimary design analysis and costs
January 31,2012 $102,547Simple economic analysis and costs
Final report and recommendations June 30, 2012 $35,655
$
$
$"
$
TOTALS
Budget Categories:Final report and
$215,912
recommendations
Direct Labor & Benefits
Travel & Per Diem
Equipment
Materials & Supplies
Contractual Services
Construction Services
Other-IDC
TOTALS
$
$
$
$
$23,000
$12,655
$35,655
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$65,055
$89,892
$23,000
$
$
$
$
$
$21~12
$23,000
$12,655
$35,655
University of Alaska Facilities and Administrative Rates
Applicable to State of Alaska Sponsored Activity
Memorandum of Understanding
Background:
The University of Alaska has a fundamental role to play in providing education, basic
and applied research and public service programs to support the development of Alaska's
economy. The University of Alaska is providing necessary elements for the growth of
several key economic sectors in Alaska, including health, transportation, natural resource
development and education.
The State of Alaska, by constitution and by statute, has the ability to direct or
significantly impact the economic success of these target sectors. Partnerships between
State government and the University of Alaska system are growing in the areas of
workforce development, continuing education, training and research. The State of Alaska
contracts with UA for appr:oximately $15 million worth of activity on an annual basis, in
addition to the annual general fund allocation to the University.
The University's facilities and administrative (F&A) rate is perceived by some State
agencies as a significant barrier to fonning more, or more substantial, partnerships of a
stable and pennanent nature. Such partnerships are desirable because State law gives
State agencies special streamlined procurement processes for doing business with the
University. While there is a willingness in State agencies to pay some overhead
expenses, they do not share the federal government's view concerning the
appropriateness of the current rates, typically near 30% for "other sponsored activities",
and higher rates for research that utilizes expensive university assets. This can lead to
inconsistent and selective arrangements that may limit the opportunities made available
to the University, and affects its competitiveness in establishing long-tenn partnerships
with the State.
UA's Federal F&A Rate Development Process
The University develops its indirect rates in accordance with OMB Circular A-21 "Cost
Principles for Colleges and Universities". All of the allowable costs {)f current operations
are categorized into various bases and pools and rates are developed to recognize the full
cost of defined activities. Source of funds is not a factor in the detennination of the rates.
Costs are classified as direct costs (base), or indirect costs (pool). The terms "indirect
costs" and "facilities and administrative (F&A) costs" are used interchangeably. The
administrative component of the rate is. capped at 26%, while the facilities component is
uncapped.
The primary rates negotiated with the federal government at each institution within the
system are the organized research rate, the instruction rate, and the other sponsored
activities rate. VA has ten different federally approved F&A rates ranging from 30% for
"sponsored training" to nearly 50% for "on-campus organized research". The base upon
which these rates are applied is a Modified Total Direct Cost (MTDC) base, as defined in
University of Alaska Facilities and Administrative Rates
Applicable to State of Alaska Sponsored Activity
Memorandum of Understanding
Circular A-2 I, and includes salaries and wages, fringe benefits, materials and supplies,
services, travel, and subgrants and subcontracts up to the first $25,000 of each subgrant
or subcontract. Equipment, capital expenditures, charges for patient care and tuition
remission, long term space rental costs, scholarships and fellowships, as well as the
portion of each subgrant and subcontract in excess of $25,000 are excluded from MTDC.
Rates are developed based on actual costs for a specific period of time. Base and pool
projections are applied to these actual costs to develop rates applicable to future periods.
The university currently negotiates rates on a three year predetermined basis. The costing
methodology assumes that the full cost of a project includes a facilities and
administrative burden. The best way to recover this burden is to assess the cost as each
direct dollar is spent, subject to the MTDC limitations.
As described in Circular A-21, the relationship between the federal government and
universities is a partnership. The costing model generally assumes that the federal
government will share in the full cost of a particular sponsored activity. While most
federal projects awarded tlLroUgh a competitive process require some level of matching
expenditures to be committed by institutions, the federal government generally pays the
full cost (direct and indirect) of the federally funded portion ofa project. Certain federal
agencies or programs have statutory thresholds on F&A cost rates that override
negotiated rates. Those programs often fund the core mission of universities (instruction
and financial aid), or relate to activities included in the original land grant function of
universities (cooperative extension).
Agreement:
The University recognizes that the State is partially funding facilities and administrative
costs through the annual general fund appropriation. The University and State would like
to promote partnerships with each other. The University and State also wish to simplify
and standardize the award process.
For awards that the State of Alaska makes to the University, for which a state agency
controls the award decision, the following F&A rates apply:
A) Instruction, Training and Other Sponsored Activity funded by the State:
Effective for new agreements, the State F&A cost rate will be 12% for State
sponsored awards applied to the MTDC base specified in A-21.
B) State Sponsored Research
Effective for new agreements, the State F&A cost rate will be 25% for State
sponsored research awards, applied to the MTDC base specified in A-21.
University of Alaska Facilities and Administrative Rates
Applicable to State of Alaska Sponsored Activity
Memorandum of Understanding
Exceptions to the rates specified in this MOV may be made to comply with federal or
other funding agency requirements that limit F&A rates for funding passed through the
state to VA. The rates specified in this MOV are not intended to apply to proposals made
by the state to external funding agencies, like the federal government, that include VA as
a named sub-recipient. The F&A rate used for VA in those situations should be the
appropriate VA federal negotiated rate.
This MOV was first in effect for awards issued after June 28, 2002 until June 30, 2004
and in April 2004 it was extended to June 30,2007. This document extends this MOU
until June 30, 2010. At that time, this agreement may be reviewed and amended by
mutual consent.
For the State of Alaska: For the University of Alaska:
~ ~M'f ~J-.~
Guy Bell, Ch r Date Myron J. Dosch, Controller
Administrative Solutions Team
ATIACHMENT E
Authorizations
&
Letters of Endorsement
University of Alaska Facilities and Administrative Rates
Applicable to State of Alaska Sponsored Activity
Memorandum of Understanding
Circular A-21 , and includes salaries and wages, fringe benefits, materials and supplies,
services, travel, and sub grants and subcontracts up to the first $25,000 of each subgrant
or subcontract. Equipment, capital expenditures, charges for patient care and tuition
remission, long tenn space rental costs, scholarships and fellowships, as well as the
portion of each subgrant and subcontract in excess ofS25,OOO are excluded from MTDC.
Rates are developed based on actual costs for a specific period of time. Base and pool
projections are applied to these actual costs to develop rates applicable to future periods.
The university currently negotiates rates on a three year predetermined basis. The costing
methodology assumes that the full cost of a project includes a facilities and
administrative burden. The best way to recover this burden is to assess the cost as each
direct dollar is spent, subject to the MTDC limitations.
As described in Circular A-2l, the relationship between the federal government and
universities is a partnership. The costing model generally assumes that the federal
government will share in the full cost of a particular sponsored activity. While most
federal projects awarded through a competitive process require some level of matching
expenditures to be committed by institutions, the federal govenunent generally pays the
full cost (direct and indirect) of the federally funded portion of a project. Certain federal
agencies or programs have statutory thresholds on F&A cost rates that override
negotiated rates. Those programs often fund the core mission of universities (instruction
and financial aid), or relate to activities included in the original land grant function of
universities (cooperative extension).
Agreement:
The University recognizes that the State is partially funding facilities and administrative
costs through the annual general fund appropriation. The University and State would like
to promote partnerships with each other. The University and State also wish to simplify
and standardize the award process.
For awards that the State of Alaska makes to the University, for which a state agency
controls the award decision, the following F&A rates apply:
A) Instruction, Training and Other Sponsored Activity funded by the State:
Effective for new agreements, the State F&A cost rate will be 12% for State
sponsored awards applied to the MTDC base specified in A-21.
B) State Sponsored Research
Effective for new agreements, the State F&A cost rate will be 25% for State
sponsored research awards, applied to the MTDC base specified in A-21.
SEAN PARNELL, Governor
DEPARTMENT OF NATURAL RESOURCES 550 WEST 7TH AVENUE, SUITE 1450
ANCHORAGE, ALASKA 99501-3650
DIVISION OF FORESTRY PHONE: (907) 269-8463
FAX: (907) 269-8931
November 10, 2009
Carol Lewis, Dean and Director
School of Natural Resources & Agricultural Sciences
P.O. Box 757140
Fairbanks,AJ( 99775-7140
Dear Ms. Lewis:
The Division of Forestry would like to offer this letter of support for the proposal entitled: "Biomass for
Energy: -Supply Side Knowledge Base" that is being proposed by a consortium of cooperators for
consideration by the Alaska Energy Authority. The project will help identify knowledge gaps while
compiling a comprehensive database of information necessary for determining supply side sustainability and
economics for biomass fuels. Currently there is a disjointed effort by numerous agencies, private companies
and other interested institutions in addressing this issue of biomass availability for these types of projects.
Both space heating, stand alone electrical generation and cofrring projects are under consideration with the
scale running from small cluster heating of buildings to larger scale electric generation. The lynchpin for all
these projects is the fuel supply. Will it be economic, sustainable for at least the life of the project and
socially acceptable? This proposal would engage key land managers in both the public and private sector
with academia to develop a resource toolbox of information and personnel that can address these important
questions. Most importantly it will involve and encourage the University to become a leader in this
emerging economic endeavor and provide students and faculty a real time project that will pay immediate
dividends for a host of educational and research pursuits that will grow out of this initiative.
While this project won't put "metal on the ground" it will plant and tend the seeds of innovation as we
address the cost of energy in our urban and rural communities and develop strategies for dealing with
climate change across our state. So often in the rush to get things done, we don't always fully consider the
basic questions that can be answered, if we would only take the time and make the small investment of funds
that this thoughtful work requires. I want every bioenergy project to be successful and to meet the needs of
our communities and this proposal will help set the stage and select the cast for this important endeavor.
Sincerely,
~(J/LX
John "Chris" Maisch C.F.
State Forester
"Develop, Conserve, and Enhance Natural Resources for Present and Future Alaskans. "
SEAN PARNELL, Governor
DEPARTMENT OF NATURAL RESOURCES 550 WEST7TJ1 AVENUE. SUITE 1450
ANCHORAGE. ALASKA 99501-3650
DIVISION OF FORESTRY PHONE: (907) 269-8463
FAX: (907) 269-8931
November 10, 2009
Carol Lewis, Dean and Director
School of Natural Resources & Agricultural Sciences
P.O. Box 757140
Fairbanks, AK 99775-7140
Dear Ms. Lewis:
The Division of Forestry would like to offer this letter of support for the proposal entitled: "Biomass for
Energy: -Supply Side Knowledge Base" that is being proposed by a consortium of cooperators for
consideration by the Alaska Energy Authority. The project will help identify knowledge gaps while
compiling a comprehensive database of information necessary for determining supply side sustainability and
economics for biomass fuels. Currently there is a disjointed effort by numerous agencies, private companies
and other interested institutions in addressing this issue of biomass availability for these types of projects.
Both space heating, stand alone electrical generation and cofiring projects are under consideration with the
scale running from small cluster heating of buildings to larger scale electric generation. The lynchpin for all
these projects is the fuel supply. Will it be economic, sustainable for at least the life of the project and
socially acceptable? This proposal would engage key land managers in both the public and private sector
with academia to develop a resource toolbox of information and personnel that can address these important
questions. Most importantly it will involve and encourage the University to become a leader in this
emerging economic endeavor and provide students and faculty a real time project that will pay immediate
dividends for a host of educational and research pursuits that will grow out of this initiative.
While this project won't put "metal on the ground" it will plant and tend the seeds of innovation as we
address the cost of energy in our urban and rural communities and develop strategies for dealing with
climate change across our state. So often in the rush to get things done, we don't always fully consider the
basic questions that can be answered, if we would only take the time and make the small investment of funds
that this thoughtful work requires. 1 want every bioenergy project to be successful and to meet the needs of
our communities and this proposal will help set the stage and select the cast for this important endeavor.
Sincerely,
/
.,"".. / ;",\.. ·:-.. ··-1 .: .
John "Chris" Maisch c.F.
State Forester
"Develop, Conserve, and Enhance Natural Resourcesfor Present and Future Alaskans."
SARAH PALIN, GOVERNOR
NORTHERN REGIONAL OFFICE
DEPARTMENT OF NATURAL RESOURCES 3700 AIRPORT WAY
FAIRBANKS, ALASKA 99709-4699
DIVISION OF FORESTRY PHONE: (907) 451-2660
FAX: (907) 451-2690
October 6, 2008
To: Butch White, Grant Manager
Alaska Energy Authority
813 West Northern Lights Blvd.
Anchorage, AK 99503
From: Mark Eliot, Northern Regional Forester
Alaska Division ofForestry
37(J()"'Xr~ff"W"aY~ti"'>"'" ",'"
Fairbanks, AK 99709-4699
RE: Letter of Endorsement in support ofUAF, FEDC, and the Alaska State Division of Forestry
Joint Application under AEA Renewable Energy Grant Fund.
Dear Mr. White:
Please accept this Letter of Endorsement as confmnation of the State ofAlaska Division ofForestry's
partnership with the University of Alaska -Fairbanks in submission ofthe attached Grant Application.
The division strongly supports this project and its commitment to aid UAF in both the furtherance and
completion of the Reconnaissance Study/Gap Analysis described therein.
Prior to the development of any biomass energy projects in Alaska it is necessary to have the
foundational knowledge that will be acquired in this effort. Throughout Alaska the high cost of energy
is impacting residents. both urban and rural. One component of the solution to this problem is
developing biomass energy systems~ however, biomass projects cannot move forward until the
requisite study of biomass affordability and sustainability is complete.
Sincerely, (' _~ .~" ./..,~ ()~'
'-.... ~~
Mark Eliot
Northern Regional Forester
Alaska Division of Forestry
(907) 451-2670 offi~"""".",
(907) 451-2690 fax
rnark.eliot@alaska.gov
"We Proudly Serve Alaskans TJ'TOUgJ. Forest Management and Wildland Fire Protection. "