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HomeMy WebLinkAboutHoonah Biomass AEA Round 3 Grant App Renewable Energy Fund Round 3 Grant Application AEA 10-015 Application Page 1 of 12 10/7/2009 Application Forms and Instructions The following forms and instructions are provided to assist you in preparing your application for a Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA) and the forms are available online at: http://www.akenergyauthority.org/RE_Fund-III.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. Grant Budget Form GrantBudget3.d oc A detailed grant budget that includes a breakdown of costs by milestone and a summary of funds available and requested to complete the work for which funds are being requested. Grant Budget Form Instructions GrantBudgetInst 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 AAC 107.630 (b) Applicants may request trade secrets or proprietary company data be kept confidential subject to review and approval by the Authority. If you want information is to be kept confidential the applicant must: o Request the information be kept confidential. o Clearly identify the information that is the trade secret or proprietary in their application. o Receive concurrence from the Authority that the information will be kept confidential. If the Authority determines it is not confidential it will be treated as a public record in accordance with AS 40.25 or returned to the applicant upon request. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 2 of 12 10/7/2009 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Hoonah City School District Type of Entity: Public School Mailing Address P.O. Box 157 Hoonah, AK 99829 Physical Address 366 Garteeni Highway Hoonah, AK 99829 Telephone 907.945.3613 Fax 907.945.3607 Email pines@hoonahschools.org 1.1 APPLICANT POINT OF CONTACT Name Steve Pines Title Superintendent/Principal Mailing Address P.O. Box 157 Hoonah, AK 99829 Telephone 907.945.3613 Fax 907.945.3607 Email pines@hoonahschools.org 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer in accordance with 3 AAC 107.695 (a) (1), or A local government, or X A governmental entity (which includes tribal councils and housing authorities); No* 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 ) *to be provided by December 1, 2009, in accordance with AEA requirements. Yes 1.2.3. As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement. Yes 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached grant form. (Any exceptions should be clearly noted and submitted with the application.) Yes 1.2.5 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 3 of 12 10/7/2009 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) Hoonah City Schools Biomass Heating System 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. The Hoonah Elementary and Junior/Senior High Schools are located in the city of Hoonah in southeast Alaska. It is anticipated that the school and the city will benefit from this renewable resource project, through savings in displaced fuel and cleaner air within the community. The public at large will benefit from this project as we share our experience and performance data to demonstrate the viability of using renewable resources for heating to replace fossil fuels. 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind X Biomass or Biofuels Hydro, including run of river Transmission of Renewable Energy Geothermal, including Heat Pumps Small Natural Gas Heat Recovery from existing sources Hydrokinetic Solar Storage of Renewable Other (Describe) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Reconnaissance Design and Permitting X Feasibility Construction and Commissioning X Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. The Hoonah City Schools desires to upgrade our heating system to employ the use of low-emission nontoxic wood biomass as the source for wood-fired boilers to provide heat (through an insulated pipe distribution system) initially to the K-12 School building and the combined gymnasium/pool building. The school will reduce our dependence on costly fossil fuels, while employing cleaner, renewable, and locally available resources, through the use of locally available wood biomass material. A resource assessment and preliminary feasibility study was completed in October 2008. The resulting report was directed toward the use of hand-stoked hydronic heaters with background information on bulk fuel boilers. An in- depth feasibility study is required to identify land and regulatory issues, permitting and environmental analysis. A conceptual design analysis and cost estimate will be included, followed by a 35% conceptual design plan set. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 4 of 12 10/7/2009 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.)  This is the second phase of a four-phase project to use wood biomass to replace fuel oil as the primary heating fuel for the Hoonah City Schools. The goal is to displace 85-90% of the oil used for heating in the Hoonah K-12 school and the Pool/Gym building with local wood biomass heat. Operational cost savings are estimated to save 50% of present oil costs. While the capital cost of a high-efficiency, low-emission wood-fired hydronic heating system is higher than an oil-fired system, with the cost of oil far outstripping the cost of wood fuel, the system will pay for itself in as little as 12 years. Wood is a renewable resource, in plentiful supply in the Hoonah area. The US Forest Service has determined that the carbon dioxide (CO2) emitted during the burn process is typically 90% less than burning fossil fuel if the wood is harvested on a sustainable basis. Use of clean fuel is important to our community. Replacing most oil consumption with wood biomass will create additional positive economic benefits to the citizens of Hoonah through stimulation of the local economy and employment by the local purchase of wood biomass material. Money would circulate within the community rather than going out to external fuel oil suppliers. The initial cost savings could potentially enable HCS to open the swimming pool, which has been closed for the last two years due to the high cost of heating the entire combined gymnasium/pool building with fuel oil. 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 preliminary estimate of project cost is provided in Attachment C. The Hoonah City Schools (HCS) anticipates receiving $140,000 for Phase II development services from this grant. HCS will donate the land on which the boiler building and storage facilities will be located. 2.7 COST AND BENEFIT SUMARY Include a summary of grant request and your project’s total costs and benefits below. Grant Costs (Summary of funds requested) 2.7.1 Grant Funds Requested in this application. $ 140,000. 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) $ 140,000. Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.4 Total Project Cost (Summary from Cost Worksheet including estimates through construction) $ 3,652,680 2.7.5 Estimated Direct Financial Benefit (Savings) $ 12.68 million in savings over 30 years, based on the current fuel oil price of $5.35/gallon. 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.) Money normally used to pay for “outside” fuel oil will go to local wood suppliers, and the schools’ carbon footprint will be significantly reduced, and possibly the pool can be re- opened for local swimmers. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 5 of 12 10/7/2009 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. Hoonah City Schools expects project management assistance from AEA. Steve Pine, Superintendent/ Principal, will serve as the key point of contact for HCS, and will communicate regularly with AEA. Steve will also serve as the liaison between other project resources, including the design engineer. 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.) A preliminary schedule is provided in Attachment G. 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.) A preliminary schedule is provided in Attachment G, which shows the key tasks. Milestones include: • 10/22/10—Project scoping and contractor solicitation. • 12/07/10—Detailed energy resource analysis, identification of land and regulatory issues, permitting and environmental analysis, and detailed analysis of existing and future energy costs and markets. • 12/21/10—Assessment of alternatives • 01/20/11—Conceptual design analysis and cost estimate • 02/03/11—Detailed economic and financial analysis • 02/25/11—Final report and recommendations • 04/15/11—Complete conceptual design 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. Steve Pine, Hoonah School Superintendent will be the key leader for the Phase II portion of this project , and will utilize other personnel as required, including Jack Anis, HCS Maintenance Supervisor. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Monthly updates will be handled through electronic mail (e-mail), and phone conversations with the consulting engineering firm, as well as local meetings when necessary. The project will be monitored Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 6 of 12 10/7/2009 through formal weekly written communication between the Alaska Energy Authority, HCS, and other involved parties. 3.6 Project Risk Discuss potential problems and how you would address them. We must find a sustainable source of suitable fuel in the local area. To mitigate the risk, Tongass National Forest (TNF) District Ranger Richard Jennings has stated that the TNF has 45 million board feet of lumber which could be made available. This is being investigated. Icy Straight Lumber Co. has agreed to supply biomass material. This source will be further evaluated in the feasibility study. We must determine if there is a decent pool of suitable contractors that can supply the necessary fuel within the specifications required for compatibility with the heating units. Risks can be minimized first by a careful analysis of locally available materials, and by then developing designs that are flexible enough to accept fuels with differing moisture contents. Options will be considered through the feasibility study, and risk mitigated through selected of a conceptual design that can best accommodate cost- effective, available material. Availability of local talent to properly operate the system. This risk can be mitigated through O&M training of the existing maintenance staff. It is anticipated that operation of the new system will increase the duties for the existing maintenance staff to accommodate the increased level of handling of the fuel (loading the chips in the bin). SECTION 4 – PROJECT DESCRIPTION AND TASKS • Tell us what the project is and how you will meet the requirements outlined in Section 2 of the RFA. • The level of information will vary according to phase(s) of the project you propose to undertake with grant funds. • If you are applying for grant funding for more than one phase of a project provide a plan and grant budget form for completion of each phase. • If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. 4.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available. Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be available for the market to be served by your project. Local wood biomass resources include the Tongass National Forest, which has an allowable harvest of 45 million board feet over the next ten years. Currently, this resource is under-utilized. Icy Straight Lumber has scrap from their sawing and milling operation. There are other wood suppliers in the local area that may be able to supply wood biomass material for the system, which will be determined through the resource evaluation. The pros include use of a renewable resource with a nearly neutral carbon footprint, lower operational costs, and economic stimulation through business opportunities. The cons include a more complicated heating system than existing oil-fired system alone, and a significant impact on the local fuel oil supplier. The Feasibility Study will address the pros and cons. HCS could continue to use diesel fuel, which is reliable technology, but a non-renewable resource with a high cost and heavy carbon footprint. We believe that our community would be better served through use of the locally available wood biomass fuel. 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. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 7 of 12 10/7/2009 The elementary and junior/senior high school buildings are presently heated by two Kewanee oil-fired boilers rated at 2,050 million BTU/hr (net each). The installed nozzles (2 per boiler) currently operate at a maximum rate of 5.5 gph (each). These boilers were installed in 1992, and are reportedly in good operational condition. Boiler operating efficiency is estimated at 75%. Domestic hot water is provided by separate oil-fired water heaters (number, manufacturer and specifications not noted). The gym/pool boiler room is heated by two Weil McLain H-486-S-W oil-fired boilers installed in 1982. These boilers are rated at 626.1 million BTU/hr (net, each). Boiler operating efficiency is estimated at 75%. The boilers are nearing the end of their service life expectancy but may be sufficient to serve as back-up boilers to the wood-fired heating system. Domestic hot water is provided to the pool/gymnasium building by a single 250-gallon PVI Industries Copperglas 90-G-250-A-O oil-fired water heater rated at 1.2 million BTU/hr with a fuel oil input of 9.0 gph. 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. Currently HCS pays a local vendor for delivery of approximately 50,000 gallons of outside fuel oil to fire the boilers used to heat the buildings. While the price of oil has increased steadily over the last two decades, oil prices rose drastically in 2008 and dropped back to a more moderate although still high level in 2009. This project calls for displacement of up to 90% of the fuel oil currently consumed for heating by the four boilers, and replaces the costly foreign fuel with locally available wood biomass. There are a minimum of three local suppliers in the wood industry that can quickly begin to provide local material to meet 90% of our fuel energy needs for heating, utilizing the existing infrastructure in the Tongass National Forest. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The existing Hoonah energy market relies on non-local (outside) fuel oil deliveries. The proposed wood biomass project will significantly reduce heating costs for HCS, while increasing employment and stimulating the local economy through use of locally available wood provided by local vendors. The cost savings and environmental benefits of using our local resources is appealing to HCS and the local community. Additionally, a significant drop in fuel oil consumption as a result of moving to wood biomass fuel could have an impact on other customers, should the local fuel oil supplier increase or reduce prices as a result of the lower demand. This possibility will be discussed in the feasibility study. 4.3 Proposed System Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, and environmental issues. 4.3.1 System Design Provide the following information for the proposed renewable energy system: • A description of renewable energy technology specific to project location • Optimum installed capacity • Anticipated capacity factor • Anticipated annual generation • Anticipated barriers • Basic integration concept • Delivery methods The proposed system will be a central wood chip-fired boiler system and a separate chip storage building that will provide heat to the elementary and junior/senior high school buildings and the combined Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 8 of 12 10/7/2009 gymnasium/pool building. The buildings will be connected with underground, insulated piping from the central boiler building and will be separated from the central heat system and each other by heat exchangers. A proposed Site Plan is provided in Attachment H. The optimum boiler size is approximately 60% of the connected load of the building. Typical load profiles show that approximately 90% of the boiler run hours occur at 60% of the peak load or less. Sizing the boiler at this smaller size allows the boiler to operate at the medium- and high-fire range more often, which optimizes efficiency and reduces emissions. An energy model of the facility will be developed during the design process to determine the final optimum boiler size. The optimum installed size for the biomass boiler is estimated to be approximately 1.9 million BTU/hr. The Preliminary Boiler Sizing Data (provided in Attachment I) shows the connected boiler load summary, biomass boiler Size, and School Heating System capacity factors. Anticipated capacity factor for the wood boiler is 0.43, compared to the overall capacity factor of 0.16 for the existing boiler systems. The wood boiler capacity factor is over twice that of the oil-fired boilers, so the wood boiler should run in a more efficient operational range than the existing oil-fired boilers. Anticipated annual generation of heat is 5.51 billion BTU, of which 90% is wood biomass, and 10% is fuel oil. The biomass boiler is anticipated to use 1400 green tons of wood annually. Anticipated barriers include obtaining sustainable quantities of compatible biomass fuel (to be determined in the Feasibility Study). Access to the wood during the winter can be problematic during times of heavy snow accumulation. This potential barrier can be addressed through adequate wood storage and/or equipment upgrades. Basic integration concept: heat will be transferred from the central boiler system using a primary circulating loop to the buildings. Heat will be transferred through heat exchangers into the return side of each building’s hydronic system. This provides reliability and isolation of each building heating system, so the failure of one hydronic system (such as a piping break) will not take the whole system down. Heat will be delivered using propylene glycol hydronic systems (two pipe) with circulating pumps. The system will be designed for low head operation to keep pumping costs as low as possible. Delivery method: The biomass boiler building would be approached like other school district capital projects. The building and systems would be designed by licensed professionals who generate construction documents to be bid out to contractors. The successful bidder would mobilize to construct the building. 4.3.2 Land Ownership Identify potential land ownership issues, including whether site owners have agreed to the project or how you intend to approach land ownership and access issues. The City of Hoonah owns the land where installation of the wood-fired heating system is planned. HCS has begun discussions with the city and anticipates full endorsement of this project. Any site access issues will be addressed during the feasibility study. 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 HCS will obtain all necessary permits, which may include a Coastal Management Plan review, in addition to the State Fire Marshall review and permit. There are currently no applicable ADEC regulations that apply for a system the size of that proposed for HCS. Permitting will be accomplished during Phase III. Although no barriers are anticipated, a preliminary evaluation will be conducted during the feasibility study. 4.3.4 Environmental Address whether the following environmental and land use issues apply, and if so how they will Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 9 of 12 10/7/2009 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 The following potential environmental issues have been reviewed and determined to have no impact: • Threatened or Endangered species: none in the area where the boiler building and storage facilities will be installed. • Habitat issues: not applicable in the area where the facilities will be installed. • Wetlands and other protected areas: not applicable in the project area. • Archaeological and historical resources: not applicable, but will be monitored as necessary. • Land development constraints; not applicable, but will be monitored as necessary. • Telecommunications interference, aviation considerations, and visual, aesthetics impacts will all be considered during system design. No other potential barriers have been identified at this time. Should any arise during the feasibility study, they will be addressed in the resulting report. 4.4 Proposed New System Costs and Projected Revenues (Total Estimated Costs and Projected Revenues) The level of cost information provided will vary according to the phase of funding requested and any previous work the applicant may have done on the project. Applicants must reference the source of their cost data. For example: Applicants Records or Analysis, Industry Standards, Consultant or Manufacturer’s estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following: • Total anticipated project cost, and cost for this phase • Requested grant funding • Applicant matching funds – loans, capital contributions, in-kind • Identification of other funding sources • Projected capital cost of proposed renewable energy system • Projected development cost of proposed renewable energy system Total anticipated project cost, through construction, is $3,652,680 which is further broken down below: • Cost for Phase II – Feasibility Study and Concept Design (35%) estimated at $140,000. The projected capital cost of the proposed renewable energy system is $3,652,680, with another $100,000 estimated in additional project development costs to take the concept design to 100%. The total projected development cost is $240,000. At this time, HCS requests $140,000 in funding under AEA’s Renewable Energy Fund Round 3 grant program. Additional development funds will be requested once we have demonstrated that the project is an economically feasible and sustainable 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 Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 10 of 12 10/7/2009 ongoing reporting requirements for the purpose of reporting impacts of projects on the communities they serve.) Estimated O&M labor costs are $3,000 per year, which will be funded by HCS. The O&M costs are shown in the Cost Analysis Spreadsheets provided in Attachment J. Costs in this worksheet were derived from consumption data extracted from district records for the entire school facility for FY 2007, 2008, and 2009. 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 – no power to be sold under 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. Download the form, complete it, and submit it as an attachment. Document any conditions or sources your numbers are based on here. The completed cost worksheet form is provided in Attachment B. Comparison of cost savings, payback, and cost/benefit ratio was made using the current fuel oil price of $5.35/gallon. This analysis is presented in Attachment J. SECTION 5– PROJECT BENEFIT Explain the economic and public benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following: • Potential annual fuel displacement (gal and $) over the lifetime of the evaluated renewable energy project • Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or cost based rate) • Potential additional annual incentives (i.e. tax credits) • Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) • Discuss the non-economic public benefits to Alaskans over the lifetime of the project Annual fuel displacement is estimated at 45,000 gallons, for a total of 1.35 million gallons over the 30-year project life. The project is expected to achieve $12.58 million in savings over 30 years based on a conservative 5% annual fuel oil price escalation, using the FY2009 rate of $5.35/gallon. See cost analysis spreadsheet provided in Attachment J. Non-economic benefits include the positive environmental effects associated with the use of carbon-neutral, low-sulfur biomass. 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. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 11 of 12 10/7/2009 • 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 This system will be part of the normal operations and maintenance for the HCS facilities. Maintenance and operational costs will not exceed the already-budgeted amounts for these facilities. Cost savings are estimated in the cost analysis spreadsheets provided in Attachment J. These figures are estimates only, and the actual savings will be tracked and reported to AEA. This data will be available to the general public to encourage the use of renewable energy sources. 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. A preliminary feasibility study and reconnaissance was completed in October 2008, recommending additional studies if the bulk fuel option was chosen. Upon receipt of grant award and NTP from AEA, HCS will immediately proceed with solicitation, in accordance with district and AEA procurement policies, for a qualified consultant to conduct the feasibility study. 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. Letters of support from the Forest Service, Hoonah Ranger District, and Icy Straits Lumber & Milling are provided in Attachment D. These letters demonstrate local project interest, and local forest resources are available to support this renewable energy project. The project has gone through the public discussion process and has been approved by the HCS board of education. A resolution will be provided to AEA as Attachment F no later than December 1, 2009. SECTION 9 – GRANT BUDGET Tell us how much you want in grant funds Include any investments to date and funding sources, how much is being requested in grant funds, and additional investments you will make as an applicant. Include an estimate of budget costs by milestones using the form – GrantBudget3.doc Provide a narrative summary regarding funding sources and your financial commitment to the project. CRSD is requesting $140,000 in grant funds for Phase II – Feasibility Study and Concept Design. The completed Grant Budget Form is provided in Attachment C.