Loading...
HomeMy WebLinkAboutTok Forestry REF App� ) ALASKA Renewable Energy Fund Round 3 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/RE Fund-Ill.html Grant Application GrantApp3.doc Application form in MS Word that includes an outline of Form 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 Costworksheet3 Summary of Cost information that should be addressed by Worksheet doc applicants in preparing their application. Grant Budget GrantBudget3.d A detailed grant budget that includes a breakdown of costs by Form oc milestone and a summary of funds available and requested to complete the work for which funds are being requested. Grant Budget GrantBudgetlnst Instructions for completing the above grant budget form. Form Instructions ructions3. df • 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. II: �i1I�17�A • 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. AEA 10-015 Application Page 1 of 16 10/7/2009 ALASKA Renewable Energy Fund Grant Application Round 3 SECTION 1 —APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) State of Alaska Department of Natural Resources Division of Forestry Tok Area Office Type of Entity: State of Alaska Government Facilities Mailing Address Physical Address P.O Box 10 Tok Ak 99780 MP 123.9 Glen Highway (Tok Cutoff) Telephone Fax Email 907-883-5134 907.883.5135 Jeffrey.hermanns@alaska.gov 1.1 APPLICANT POINT OF CONTACT Name Title Jeffrey D. Hermanns Tok Area Forester Mailing Address P.O Box 1024 Tok AK. 99780 Telephone Fax Email 907.883.5134 907-883-5135 Jeffrey.hermanns@alaska.gav 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. ff 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 or its board of directors, executive management, or other governing authority. If the No applicant is a collaborative grouping, a formal approval from each participant's governing authority is necessary. (Indicate Yes or No in the box ) es 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 or No agreement. es 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached or grant form. (Any exceptions should be clearly noted and submitted with the No application.) es 1.2.5 We intend to own and operate any project that may be constructed with grant or funds for the benefit of the general public. No AEA10-015 Grant Application Page 2 of 16 10/7/2009 1. ALASKA Renewable Energy Fund S `-) ENERGY AUTHORITY Grant Application Round 3 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) Tok ForestrvRenewable Biomass F.nervv Demonstratinn Prniact 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. Tok Area Forestry Compound MP 123.9 Glen Highway (Tok Cutofj7 Tok Community and the Upper Tanana Region including Northway, Tetlin, Mentasta, Dot Lake, Tanacross, Eagle 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind X Biomass or Biofuels Hydro, including run of river Transmission of Renewable Energy Geothermal, including Heat Pumps Small Natural Gas Heat Recovery from existing sources Hydrokinetic Solar Storage of Renewable Other (Describe) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Reconnaissance X Design and Permitting Feasibility X Construction and Commissioning Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. Construct 16 x 20 building adjacent to Tok Main office building to house pellet boiler, water storage tank and pellet storage. Install pellet boiler, water storage and radiant heating system in the Tok Main office. Purchase pellets on contract with local pellet manufactures in Dry Creek (50 miles from Tok with trees harvested from the Tanana Valley State Forest) currently producing pellets. Track use of pellets for three year period and compare cost to fuel oil usage and cost. Invite other state and federal agencies and general public to visit the facility to learn the local renewable biomass heating options, the environmental benefits, local economic benefits and the cost savings. This is a very simple, straight forward, proven, dependable system with a high quality dependable fuel source that we have already used 6 tons in small pellet stove this last year in the office. Radiant heating systems are used extensively in the Tok area with the outside wood boilers. No engineering will be required. We will also displace a 50 gallon electric hot water heater with AEA10-015 Grant Application Page 3 of 16 10/7/2009 /� ALASKA Renewable Energy Fund Grant Application Round 3 domestic hot water exchanger to provide all the hot water we could use. AEA10-015 Grant Application Page 4 of 16 10/7/2009 ALASKA Renewable Energy Fund 4MV-) ENERGY AUTHORITY Grant Application Round 3 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.) 1.) This nroiect is designed to save the State of Alaska DNR Forestry mnnev eurrently n.ced for heating and electrical cost. 2.) Would have secondary heating system for safety and savings over single failed system. In 2009 the failure of the current fuel oil furnace at 50 degrees below zero cost over $4,500 in repairs. The Riel oil system would remain in place as a backup secondary system to the pellet boiler. 3.) This project is designed as a public demonstration project for converting a State of Alaska facility from fossil fuels and to using a renewable energy in the form of woody biomass from our forest the Division of Forestry is responsible for managing for the benefit of the people of Alaska. The significant electrical cost of electric hot water heater would also be eliminated. This would help stabilize Tok Forestry's budget using a local, renewable fuel instead of the world market fuel prices currently paid. 4.) This would also be a demonstration of medium residential size pellet fired systems. 5.) Currently an underground fuel oil tank is in use that has been identified to be removed and remediated with an unknown cost potentially up to $100,000. 6.) The new pellet manufacturing facility at Dry Creek would have a multi -year contract with Forestry for pellets, this is a very obvious advantage for a new endeavor manufacturing a renewable energy product. 7.) An integrated forest products industry is key to the long term success of utilizing the state renewable resources of our forest. 8.) To complete a project cost effect and with a payoff that can be replicated in other facilities and homes. 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 small building 20 x 16 was estimated at $80 per square foot for finished construction totaling $25,600. We planned to contract out the constnuction of the building including the electrical. We have planned to contact out the installation of the boiler, heat tank and setting up the zone values and most plumbing. This work is budgeted at $10,000. Also the electrical would be contracted out. We plan to do the labor of running the radiant in -floor heat. We have a full time maintenance person that is experience and we planned to do this basic work ourselves as matching. The tank and plumbing supplies are $6,500 and the boiler we expect to pay less than $20,000. A project manager will approve the design and oversee contractors and completion of project. This cost is $5000. AEA10-015 Grant Application Page 5 of 16 10/7/2009 /OLD ALASKA Renewable Energy Fund Grant Application Round 3 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. $ 67,000 2.7.2 Other Funds to be provided (Project match) $ 10,000 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $77,000 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 $77,000 including estimates through construction) 2.7.5 Estimated Direct Financial Benefit (Savings) $5644 annually $169,320 30 years 2.7.6 Other Public Benefit (If you can calculate the benefit in $ 3600 into local economy terms of dollars please provide that number here and annually — currently $0 for explain how you calculated that number in your application heating a state facility (Section 5.) AEA10-015 Grant Application Page 6 of 16 101712009 OWD ALASKA Renewable Energy Fund Grant Application Round 3 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. Rex L. Goolsby will be the project manager for this project. Rex is currently the project manager for the Tok School biomass project and is very experience in construction and heating systems. Jeff Hermann, Tok Area Forester will assist Rex in the supervision and management of this project. 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 summaa of dates below. One month after grant award. The project manager will complete a final approved lavout for the system. We will take RFP through the DNR procurement process for building, boiler and plumbing contracts. This project will begin June 15 with the excavation of the foundation for the building and will be complete by September 15" 2010. 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.) Hire the nrniect mannger. Finalize rlrnwina Riaht the RFP can.l t, r1NP —..,.a bids, manage contractors, complete the work. 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. Rex Goolsby — project manager is very experience in heating systems and construction and can develop CAD drawing for building and plumbing. He will oversee project and there is an efficiency we are taking advantage of him working with the School on their biomass project across the street and the UAF in town. We have excellent contracts with experience with construction, electrical and radiant heating systems. There are many very high quality pellet boilers on the market with very high efficient and are time proven and repeatable with the scale we are looking to heat 2500 square feet of office. These units come mostly assembled and are very easy and quick to hook up and get operational. Logging and Milling has already sold us pellets for $250 a ton and we have burned them for months with excellent results. AEA10-015 Grant Application Page 7 of 16 10/7/2009 ,RED ALASKA Renewable Energy Fund Grant Application Round 3 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Jeff Hermanns works at this office location of the nroiect and will send the Authoritv the statn.c updates as they are required and as the project proceeds. 3.6 Project Risk Discuss potential problems and how you would address them. Tok Forestry is committed to the project and has an interest in the success of the forest products and biomass industries that is core to our mission developing the resources of our forest. The ground is A#1 sand and gravel. No risk for foundation placement. We have the materials available locally and in Alaska to complete this project. We have local expert in heating systems and constriction to manage the project. We have very good local contractors to do all phases including concrete pours, construction, electrical and plumbing. We have staff on hand that will be made available to assist on all phases of this project. There are many very high quality pellet boilers in the size and configuration required for this project. They are time tested and reputable and reasonably priced. We have a dependable, study supply of pellets for the foreseeable future. Logging and Milling providing the pellets are very established in the area and are very dependable. We have burned their pellets in a pellet stove in the office for going on a year and are very pleased with the quality and performance of the fuel. We have operated a pellet stove in the office for close to a year and love it. We are willing to feed the bags of fuel and clean the ash as needed. We love the heat and the use of our forest resources. AEA10-015 Grant Application Page 8 of 16 10/7/2009 &ALASKA Renewable Energy Fund ENERGY AUTHORITY Grant Application Round 3 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. Logging and Milling is like all forest product businesses in the Interior of Alaska in that they have a lot of waste material that they have had no market for and has been a cost to openly burn. The pellet they are manufacturing are from the waste of their sawmill in slabs. All other sawmill have the same issue and more with no use of the sawdust. This converts a waste material into a sellable product that they can profit from. This will help with the utilization of the logging units on state forested lands. The annual allowable cut harvest has been historically at 1 to 3 % in the Upper Tanana the last 25 years. We could provide fuel for 100 pellet mills this size on a sustainable basis. 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. We have a forced air fuel oil furnace 168,000 to 210,000 BTU inputs that is four years old. New it cost $45,000 dollars. It quit working this last January and cost us at least $4,500 in damages with frozen and broken pipes and plumbing. This does not include the week of lost productivity of the staff. There was no back up heating system. We purchased a Harman pellet stove to place in the garage to displace the fuel oil Toyo stove that run full out and could never keep up. This Toyo stove has not run since we installed the pellet stove. This was such a success that we know want to heat the entire office with pellets. We will of course leave the fuel furnace in place to act as a backup and secondary system. The hot water heater that will be displaced is a 50 gallon electric hot water heater. This water heater uses a lot of very expensive electricity and cost us $2244 a year to operate. The electric hot water is 4500 watts. AEA10-015 Grant Application Page 9 of 16 10/7/2009 /ZEDD ALASKA Renewable Energy Fund RI'.,D ENERGY AUTHORITY Grant Application Round 3 4.2.2 Existing Energy Resources Used Briefly discuss your understanding of the existing energy resources. Include a brief discussion of any impact the project may have on existing energy infrastructure and resources. The fuel oil that we use currently will not have any effect on demand or supply. The pellet resources we will plan to use is a developing market and the manufactures need dependable purchasers such as the state to develop their businesses. Currently a small demand statewide exists for pellets with a more developed market in Tok and Delta. We currently buy the pellets for $250 a ton but have figured for this project at $375 a ton with increased demand. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Our discontinued use will have no impact on fael oil markets and use. 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 State owns the building. We plan to install a 100,000 to 130,000 btu unit capable of heating 2500 square feet and providing the domestic hot water requirement for the office. We plan to leave the forced air system in place and install a radiant in floor heating system with 1000 gallon tank for optimum heating efficient. We plan to burn two 40 lb bags of pellets every day (total 801bs). We will use a water to water heat exchanger to heat the domestic hot water and discontinue the use of the electric system; we plan to leave this in place for backup system. We plan to store pellets in building in separate room than the boiler. We plan to purchase hopper that will hold at least one week of fuel. 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. AEA10-015 Grant Application Page 10 of 16 10/7/2009 142F) ALASKA Renewable Energy Fund WK-1 ENERGY AUTHORITY Grant Application Round 3 State of Alaska owns the land the forestry compound is located. 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 nd discussion of potential barriers No permits are required for this project. 4.3.4 Environmental Address whether the following environmental and land use issues apply, and if so how they will be addressed: • Threatened or Endangered species • Habitat issues • Wetlands and other protected areas • Archaeological and historical resources • Land development constraints • Telecommunications interference • Aviation considerations • Visual, aesthetics impacts • Identify and discuss other potential barriers There are no negative environmental issues with this project. There are many positive environmental benefits. Burning renewable energy will reduce carbon emissions, there is no smoke from pellet stoves or boilers and is healthier than the emissions from fuel oil furnaces. We likely have a fuel spill issue with the underground tank and will need remediated and there is no negative environmental impact for spilled pellets. 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 AEA10-015 Grant Application Page 11 of 16 10/7/2009 l) ALASKA Renewable Energy Fund .'.',)ENaR©YANTNORITY Grant Application Round 3 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 We will have minimal operating and maintenance cost. The loading of fuel and cleaning of systems is minimal and we not are much of any burden on staff. We have a very small increase in systems that is greatly off set by savings. 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 We currently purchase pellets for $250 a ton and planned for this project to use $375 a ton. We plan to bulk purchase the pellets on multiyear contracts. The return on this project if full budget is used is 13 years. We believe we can do this project for less. 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. 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 (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 AEA10-015 Grant Application Page 12 of 16 10/7/2009 /� ALASKA Renewable Energy Fund Grant Application Round 3 We will displace over 75,000 gallons of fuel oil over the 30 years. We will save 146,370 lcwh over 30 years with a savings of $169,000. This will be money that can be spent for other needed items at Tok Forestry. $108,000 dollars will be spent locally on renewable energy that had previously gone to the oil distribution companies. This will help create and maintain local employment. SECTION 6— SLISTAINABILITY 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 This project is all about sustainability using a local renewable resource. This will get us off of the unsustainable use of fuel oil and high cost electricity. We believe the state should lead by example and that all state facilities should consider the use of renewable local fuels to heat. Dry Creek, Milling and Logging are long term business people with deep roots in the timber industry in the Tanana Valley and have a very good sustainable business that will be greatly aided by the use of their waste material. 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. AEA10-015 Grant Application Page 13 of 16 10/7/2009 /ZDALASKA Renewable Energy Fund Grant Application Round 3 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. We have all contractors notified of potential project and plan to proceed when ground conditions allow with construction the summer of 2010 and ready for use fall 2010. 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. WE. have excellent local support for all of our renewable energy projects in Tokc. We have aggressive fuel reduction projects in Tok and have had total community support for the harvest and utilization of the material. SECTION 9 — GRANT BUDGET Te// us how much you want in gTnt funds Include an investments to date and funding sources, AEA10-015 Grant Application Page 14 of 16 10/7/2009 /� ALASKA Renewable Energy Fund Grant Application Round 3 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 AEA10-015 Grant Application Page 15 of 16 10/7/2009 GRED ALASKA Renewable Energy Fund 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 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 Jeffrey D. Hermanns Signature Title o rea drester Date November 10, 2009 AEA10-015 Grant Application Page 16 of 16 10/7/2009