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HomeMy WebLinkAboutIonia AEA Grant Application Renewable Energy Fund Round 3 Grant Application AEA 10-015 Application Page 1 of 16 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 16 10/7/2009 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) The State of Alaska Mental Health Trust Authority Type of Entity: Governmental Organization (State of Alaska) Mailing Address 3745 Community Park Loop Ste 200 Anchorage, AK 99508 Physical Address 3745 Community Park Loop Ste 200 Anchorage, AK 99508 Telephone 907-267-7960 Fax 907-269-7966 Email jeff.jessee@alaska.gov 1.1 APPLICANT POINT OF CONTACT Name Ionia, Inc c/o Ted Eller (Project Manager) Eliza Ann Eller (Administrator) Title Ionia Renewable Energy Educational Center Mailing Address 54932 Burdock Road Kasilof, Alaska 99610 Telephone (907) 262-2824 Fax (907) 262-2893 Email ellers@ionia.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); Yes 1.2.2. Attached to this application is formal approval and endorsement for its project by its board of directors, executive management, or other governing authority. If the applicant is a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate Yes or No in the box ) Yes 1.2.3. As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement. Yes 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached grant form. (Any exceptions should be clearly noted and submitted with the application.) Yes 1.2.5 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 3 of 16 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) Type in your answer here and follow same format for rest of the application. Ionia Renewable Energy Training Center 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 Ionia Renewable Energy Training Center (RETC) is located at the Ionia community on the Kenai Peninsula, approximately 8 miles west on North Coho Loop from Highway 1, near Kasilof. Communities located on the Kenai Peninsula(Kasilof, Soldotna, Kenai, Calm Gulch, Ninilchik, Anchor Point, Homer, and communities across the Bay, as well as all South Central Alaska will directly benefit from this educational outreach center that serves as a living example of alternative renewable energy technologies designed to work with the local resources. The RETC is located on the road system, in a summer tourist area, and is accessible to many Outside visitors as well as Alaskans who travel to the Kenai Peninsula. 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 x Solar Storage of Renewable Other (Describe) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Reconnaissance Design and Permitting Feasibility x Construction and Commissioning Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description your proposed project. Alaska Mental Health Trust is applying to the Alaska Energy Authority (AEA) Renewable Energy Fund Round III grant program, seeking funding for equipment purchase and installation of a GARN biomass heating system for the community of Ionia. The Ionia community is building a two-story 6,000 square foot community center/barn on their property near Kasilof for the purpose of demonstrating renewable energy systems and sustainable living strategies for their neighbors of Kenai Peninsula and other rural Alaskans. Ionia has been a successful example of sustainable and healthy “intentional community” living for many years and is now expanding its outreach to a more active demonstration and educational center. There are many books, magazines, websites, and videos about sustainable living, intentional communities, and conscious living. Ionia is a living-breathing village where seekers and the merely curious can interact and get a real feel for viable alternatives. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 4 of 16 10/7/2009 The Ionia Renewable Energy Training Center (RETC) will be the first renewable energy educational center located on the Kenai Peninsula. The Center, in its design and use of sustainable and renewable energy technology, will serve as an educational resource and conference center for the demonstration of renewable energy technologies specific to local ecosystems. A wind “met tower” (anemometers and wind vane on a 100 foot tower connected to a data logger computer) was recently installed nearby to assess the wind resource for proper sizing of a wind turbine, as part of the overall suite of community scale renewable energy systems. A combination of grants and private funds has been raised for the construction of the RETC building. The Ionia Community has provided all the labor and the log milling for the project. GARNs use cordwood, (not chips or pellets), burned hot and fast—cleanly--in a boiler to heat a large reservoir of liquid, which is pumped through tubes in floors and radiators to heat the building. This request also includes funding for a solar-thermal heating system to augment the biomass system for this unique community. Both systems will provide heat for the RETC and for the South- facing greenhouse on the side of the building. The Ionia RETC building is already under construction and is approximately 30% finished (as of October ‘09). When completed, the building will serve as barn/storage, classrooms, meeting and office space, and conference center. The building itself will be an integral part of the demonstration of energy efficient building techniques, a renewable energy heating system and food production, preparation and storage. The anticipated date of the commissioning and start-up of the educational center is October 1, 2011. This funding request is to complete Phase IV (Construction and Commissioning) of renewable energy systems to heat the educational center, which includes the Garn cordwood boiler, solar thermal system, radiant heat flooring and hydronic radiators. The project will establish an integrated, alternative energy heating system for the building that effectively models energy conservation while using local renewable resources (wood and solar). 2.5 PROJECT BENEFIT Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel costs, lower energy costs, etc.)  The Ionia Renewable Energy Training Center’s primary benefit will be as an educational facility that has a focus on the use of renewable resources on the Kenai Peninsula. It will be a living demonstration of local renewable building materials, local milling, energy efficient design and renewable energy, heated by local biomass and solar energy. Public benefit can result when visitors are able to see and feel what have been unfamiliar alternative methods and materials, and can better imagine their own adoption of more efficient and sustainable lifestyles. 2.6 PROJECT BUDGET OVERVIEW Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of other contributions to the project. The estimated funding needed to complete the project is $235,523. This amount will be directed toward the completion of Phase IV (Construction and Commissioning of the educational center). Funds will be dedicated to: final design and construction of the biomass and solar heating system; and, 2) commissioning of these renewable energy systems to heat the educational center, which includes a Garn cordwood boiler, solar thermal panels, radiant heat flooring (upstairs) and hydronic radiators downstairs). The project will establish an integrated, alternative energy heating system for the building that effectively models energy conservation while using local renewable resources (wood and solar). Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 5 of 16 10/7/2009 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. $235,523 2.7.2 Other Funds to be provided (Project match) $33,000 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $268,523 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) $268,523 2.7.5 Estimated Direct Financial Benefit (Savings) $12,600 per year 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.) Education and training on the use of renewable energy systems 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. Ted Eller will serve as the Construction Project Manager. Mr. Eller is an Ionia resident and Board Member and has past experience in overseeing many work projects at Ionia, including the construction and commissioning of a similar wood fired system for an Ionia “Longhouse.” Additionally, Mr. Eller has undertaken extensive educational efforts in regards to design, feasibility, and implementation of renewable solar and biomass systems. Mr. Eller will manage the processes of purchasing, safety and accessibility, Ionia crew management and logistics. He will coordinate resident participation and input, and supervise the contractor’s work. His additional expertise includes 20 years of experience at Ionia managing numerous construction jobs, including Tempcast masonry heaters in 4 log homes, 2 Finnish masonry heaters, a Russian masonry fireplace, and many other construction projects. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 6 of 16 10/7/2009 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.) Milestones Completion Date Confirm Final Construction Plan, Schedule; Cost /Review and schedule arrival of materials 8/2/2010 Select Contractors(plumbing/electrical per Phase III request for bids; Finalize Contracts 8/16/2010 Plumbing and electrical construction 8/31/2010 Installation of GARN system Installation of radiant hydronic floor 8/31/2010 Solar system installation 9/15/2010 Commission GARN system and solar system 9/30/2010 Create As-Built and owner’s manual 9/30/2010 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.) Key project milestones for the Ionia Renewable Energy Training Center have already been met. To date the following milestones have been accomplished: Phase I: Reconnaissance • Determination of renewable energy resources and alternatives explored • Permit/ and Ownership, Environmental Issues explored and resolved • Conceptual design of facility and costs • Avoided costs of energy (fuel displacement over lifetime of operation) • Proposed Costs of Alternative Energy System • Grants and private funding secured for Phase II • Basic Economic Analysis Phase II: Feasibility Analysis, Conceptual Design, and Initial Construction • Site specific biomass resource (Kenai spruce forest assessment) • BTU energy requirements for facility • Analysis of O&M, and fossil fuel offset savings determined over life of project • Draft schedule for completion with milestones for Phase I and III • Beginning building construction: pilings, first and second levels subflooring and framing: completion of floors one and two (Approximately 30% of building completed by time of grant submission November, 2009) Phase III: Final Design: Renewable Energy System • Conceptual engineering design for energy system • Material lists compiled • Bid requests to contractors (plumbers/electricians) • Complete Initial Schedule and Operational Plan Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 7 of 16 10/7/2009 The remaining milestones (Phase IV) will be completed with AEA grant funding and in-kind labor: Phase IV: Construction, Commissioning, Operation, and Reporting • Confirm final construction plan, schedule, and budget review: confirm materials dlvry • Select contractors as per Phase III request for bids • Finish roof and framing of facility • Finish GARN prep & installation • Rough-in Plumbing & Electrical • Install Radiant hydronic flooring (4000 sq feet) • Finish Plumbing & Electrical • Roof solar panel Installation/hookup • Integration and Commissioning of GARN & Solar systems • Finalize as-built documentation • Final report to AEA 3.4 Project Resources Describe the personnel, contractors, equipment, and services you will use to accomplish the project. Include any partnerships or commitments with other entities you have or anticipate will be needed to complete your project. Describe any existing contracts and the selection process you may use for major equipment purchases or contracts. Include brief resumes and references for known, key personnel, contractors, and suppliers as an attachment to your application. The proposed project will maximize the value of the funds appropriated because of the in-depth experience and background the community of Ionia and its Project Manager, Ted Eller. Ionia has successfully commissioned and operated 2 Garn boilers for their Community Longhouse since 2007. Engineering support will be provided by Martin Lunde (Dectra, manufacturer of GARN systems). Mr. Lunde has extensive experience with cold climate construction and renewable energy systems. Additional engineering support will be from Alaskan resources. Plumbing and Electrical work will be bid out to local area contractors. Experienced and capable local contractors have been identified and have expressed interest. Non-technical labor and assistance will come from members of the Ionia community who are very familiar with the installation and operations of hydronic heating systems and solar panels. Their contribution of labor and expertise is substantial, and itemized in budget for the project. Additionally, Ionia resident Bill Johnson will assist Ted Eller as Assistant Project Manager. Bill has supervised the development and construction of Ionia’s infrastructure for 20 years. He is experienced in researching and designing ecologically friendly technologies and construction methods and has had a major role in the planning for this project. Existing contracts are with Mmense Architects of Anchorage, and Martin Lunde of DECTRA Corporation. Other Ionia residents are also builders, having helped build Ionia’s existing Longhouse Community Center, 10 log houses and numerous other projects. The Ionia Community has developed and operates a log/lumber mill with a 35-amp band saw mill. They have milled most of the materials for their houses and for the current RETC building. Waste wood from Ionia’s sawmill is an ongoing source of biomass fuel for the wood heaters. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 8 of 16 10/7/2009 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Ionia has a long successful history of grant administration and reporting. Milestones will be broken down into phases with time and budget allotted. At the completion of each milestone, the Authority will be informed by email from the Project Manager. Project Manager will be available by phone for consultation and questioning by the Authority. 3.6 Project Risk Discuss potential problems and how you would address them. Potential challenges include unforeseen delays in arrival of material items. To counteract this event, engineering and design contracts will be established early on. Materials and key components will be ordered as soon as possible for delivery to rural Alaska. Weather is always a risk factor in Alaska. Ionians have lived with the Kenai climate for 20+ years, and are adept at the required flexibility. Most of this project will be done under cover and out of weather. Succession is a risk factor, with projects relying on key persons. At Ionia, the “2nd Generation” (now in their 20s and 30s) has grown up learning in an apprentice environment, bringing their own creativity and strength to projects. Ionia has successive layers of dedicated expertise. 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. Biomass The primary resource for the Renewable Energy Training Center will be biomass from local spruce forests. In this area of the Kenai Peninsula, biomass is an abundant resource. Alaska State DNR Foresters estimate there remain many thousands of acres of beetle-killed Spruce on the Kenai. If not harvested for fuel or milling, it is a wildfire hazard. Solar Additionally, the Training center will integrate a series of solar-thermal panels placed high on the South-facing roofline as a secondary energy source to the biomass boiler system. The solar gain achieved in the shoulder months (Spring and Fall) will significantly contribute to the system. Wind energy is being considered, and a full year test of the wind resource is being conducted with the newly installed wind Met Tower at Ionia. There is no hydro capacity; no tidal access. The conventional energy sources for the area are grid electrical service from Homer Electric, Propane and Fuel Oil deliveries by truck, and coal delivery. The Ionia community is committed to reducing its use of fossil fuels, and maximizing its use of viable renewable energy systems. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 9 of 16 10/7/2009 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. N/A. The project is in a new building. The conventional alternatives would be propane or fuel oil boilers, with lower capital costs, but higher and unstable fuel costs, and environmental consequences. 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 Ionia Renewable Energy Training center will use locally available biomass materials from the Kenai Peninsula and available solar energy in an integrated system. The goal is to create a facility that is never reliant on conventional fossil fuels, achieving a high level of economic sustainability through energy independence. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The impact that the Ionia RETC may have on the existing local energy market will be indirect, but may be measurable. If visitors and neighbors are inspired to “take the learning home” then more energy efficiency measures may be adopted, more renewable energy systems put into operation, more fossil fuel use may be avoided, lower imports required. Cleaner air and healthier people may result. This may have a negative effect on conventional energy infrastructure, fuel oil and propane importers and distributors. Conventional energy costs are already widely expected to escalate. Reduced usage could exacerbate the cost escalation. 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 Design of the primary energy system was established through the collaborative efforts of Ted Eller (Project Manager) and Martin Lunde (Engineer and owner of Dectra Systems, manufacturer of Garn hydronic boilers). Ionia residents are familiar with the operation of Garn biomass hydronic energy systems as they currently operate 2 Garn 2000 units to heat their Long House building. The GARN design is an EPA approved, High Efficiency Low Emission system with wide use in North America and a long-standing reputation for reliability. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 10 of 16 10/7/2009 The primary energy system will be two (2) Garn 2000 units. The maximum capacity of the system installed is approximately 850,000 to 900,000 BTU/hour. The solar-thermal panels will operate as a ‘cordwood’ offset thereby reducing firing from twice a day to once a day or every other day during the shoulder seasons (spring and fall). 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 project site is on land owned by Ionia, Inc. An agreement will be executed between Ionia and the Alaska Mental Health Trust, acting as grantee, for ownership control, operations and maintenance. The intention of all parties is to execute an agreement that meets the requirements of AEA’s grant guidelines. 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 It has been determined that this project needs no special permits. The design, methods, materials and construction is following standard construction code adherence, as per direction of engineers Martin Lunde and local engineering resources. 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 The following addresses the specified list of environmental and land use issues. • There are no endangered or threatened species impacted • There are no identified critical habitat issues • Wetlands and other protected areas are not impacted by this project • There are no identified historical or archeological resources impacted • There are no land development constraints • There will be no telecommunications interference established by this project • There are no identified aviation considerations • Visual, aesthetic impacts are minimal as the design of the building is integrated with the surrounding area and existing structures • The GARN system is a High Efficiency, Low Emissions EPA approved system based on the virtually complete combustion of wood. The GARN does not pollute the environment with incompletely combusted particulates, otherwise known as ‘smoke.’ This system will Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 11 of 16 10/7/2009 be a ‘good neighbor’ for the people of the Kenai Peninsula. • Other potential issues: As this center is open to the public; ease of access and parking will be developed so that traffic will have minimal impact on the residents of Ionia. Signage, speed of traffic and flow issues will be addressed. 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 The Training center is currently under construction with much of the design issues completed. The heating systems will be installed in the structure concurrently with the second half of facility construction. The Ionia Renewable Energy Training Center site work and foundation pilings were completed in the summer of 2008, floor joists and walls were built in the summer of 2009. Construction and framing of floors and walls began in summer of 2009 and will continue once the roof goes on in the summer of 2010 (see attached project timeline.) MILESTONE AEA/RE REQUEST MATCH TOTAL PROJECT Confirm Final Construction Plan, Schedule; Cost /Review and schedule arrival of materials $2,000 $1,000 $3,000 Select Contractors(plumbing/electrical per Phase III request for bids; Finalize Contracts $600 $600 Plumbing and electrical construction $56,000 $5,000 $61,000 Installation of GARN system $111,354 $6,000 $117,354 Installation of radiant hydronic floor $24,000 $7,500 $31,500 Solar system installation $33,169 $7,500 $40,669 Commission GARN system and solar system $6,000 $2,500 $8,500 Create As-Built and owner’s manual $2,000 $1,500 $3,500 Final review report to Authority $1,000 $1,400 $2,400 TOTALS $235,523 $33,000 $268,523 Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 12 of 16 10/7/2009 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for new facilities constructed and how these would be funded by the applicant. (Note: Operational costs are not eligible for grant funds however grantees are required to meet ongoing reporting requirements for the purpose of reporting impacts of projects on the communities they serve.) Annual Project Operating and Maintenance Costs of the energy system are as follows: Maintenance budget: $1,000/yr including a fund for eventual parts replacement. Fuel (Cordwood) costs are projected to be $4K to 5K/yr (40 to 50 cords at $!00/cord) Ionia project manager, Ted Eller and his team are very familiar with the regular maintenance on Garn units, having successfully operated 2 units for almost 2 years. The Solar Thermal system requires little maintenance, a prudent budget for broken/replacement parts and liquid service is: $1,000/yr Funding for these costs will be derived from donations to the center, lecture and conference fees, and from dedicated funds from Ionia, Inc.’s annual budget. 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 Power/Purchase and Sales agreements are not applicable to 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. SECTION 5– PROJECT BENEFIT Explain the economic and public benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following: • Potential annual fuel displacement (gal and $) over the lifetime of the evaluated renewable energy project • Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or cost based rate) • Potential additional annual incentives (i.e. tax credits) • Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) • Discuss the non-economic public benefits to Alaskans over the lifetime of the project Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 13 of 16 10/7/2009 Potential Annual Fuel Displacement: Diesel Fuel Displacement: The annual fuel displaced would approximately be 4,200 gallons per year assuming year around operation. At current costs ($3/gal) this is approximately $12,600 per year. The cordwood offset is 40 cords at $160/cord or $6,400 per year. This creates a net savings of $6,200 per year. Over the twenty-year life of the boiler at current prices a savings of $124,000 and a net diesel fuel offset of 84,000 gallons over a 20-year period. Propane Fuel Offset: Local per gallon commercial rate for propane is at $3.57 a gallon (p.c. Suburban Propane, Nov 3, 2009). Estimated usage for 4000 square feet of heated space was at 3900 gallons per year for a total cost of $13,923. The cordwood offset would remain the same as in the previous example of $6,400 per year. This creates an estimated net savings of $7,523 per year; and, over the total twenty-year life of the boiler at current prices a savings of $150,460. The value of this wood fired heating system is further demonstrated by the following table which breaks the costs of all available fuel types down into ‘cost per million BTUs” Cost per Million BTUs FUEL TYPE BTU per UNIT FUEL UNIT Equipment Efficiency Delivered BTUs Cost Per Unit Cost per million BTU Oil 135,000 gallon Furnace 78% 105,300 $3.15 $29.90 Propane 91,500 gallon Furnace 78% 71,370 $3.40 $47.60 Electricity 3412 Kilo- watt hr Furnace 95% 3241 $0.17 $52.40 Wood 16,000,000 CORD Boiler 75% 12,000,000 $160 $13.33 Ionia is located in a spruce-wood forest with a renewable supply of wood. The wood fired unit is the most economically viable form of energy for the Training center at $8.20 per million BTUs. Ionians have taken additional proactive steps in ensuring future locally available harvests by planting a portion of their land with trees designated for cordwood harvest. Additionally, large amount of State and Borough lands are accessible for citizens to harvest wood. Non-economic public benefit: This Training center has the potential to make a profound impact on the public’s understanding of alternative energy, and on their energy usage choices. As the operational plan is formalized, several different outreach methods will be used. The Internet will be the primary source of information: detailing hours of operation, workshops available, lectures series, and tours. The office dedicated to administering and operations for the Training center will have fully functioning video conferencing capabilities that will enable this center to serve as a regional hub for alternative energy information and education. Additionally, the Ionia RETC will serve as a strong proactive model demonstrating the creation of energy independence, self reliance, and sustainable methods for living in the local environment. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 14 of 16 10/7/2009 SECTION 6– SUSTAINABILITY Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum: • Proposed business structure(s) and concepts that may be considered. • How you propose to finance the maintenance and operations for the life of the project • Identification of operational issues that could arise. • A description of operational costs including on-going support for any back-up or existing systems that may be require to continue operation • Commitment to reporting the savings and benefits The Ionia Renewable Energy Training Center will be administered under the 501(C) (3) status of which Ionia Inc. is currently designated. Funds for operating the Training Center will be available from several sources: donations, lectures admissions, and suggested tour fees. Currently, there is no other center in on the Kenai Peninsula highlighting renewable energy technologies at a grassroots level. The overall costs of operating this system over an estimated 20 year life (although many of these units have been in operation 30 years) are quite low. Annual Maintenance: The Garn unit must have its water (or other liquid) tested once a year and perhaps adjusted. This requires $400. in chemicals and water testing that can be purchased through the manufacturer. Every 3 to 4 years new fire brick will have to be purchased for the unit: this would add an additional $50. average cost per year of operation. A prudent annual budget for cost of maintenance per year is $1,000. Annual Fuel Requirements: Approximately 40-50 cords of wood will be necessary to heat the building per year. This usage is offset in part by the use of solar-thermal panels that will be most effective in the shoulder seasons (Spring and Fall) and in the summer, and will reduces the daily ‘burns’ for the Garn unit from two to one per day. This forms an integrated renewable system based upon local climate and renewable resources. Ionia residents have already taken upon themselves the creation of a ‘sustainable’ cordwood harvest forest by dedicating and planting approximately 22 acres of trees for their long term cordwood needs. The residents of Ionia have made a long standing commitment for the past 20 years, to develop renewable and sustainable energy systems in the area. This continued commitment to a sustainable way of living is an integral part of Ionia life that transcends energy issues and intersects with how this community grows and gathers its own food, and its commitment to a deliberate, conscious, and healthy lifestyle. As seen in the Ionia Board resolution (attached), Ionia’s community members are committed to reporting basic numbers of the public using the Training center, numbers of lectures and workshops, per year by type and content, numbers of renewable energy tours and lectures. Additionally, they have agreed to report the amount of fossil fuel offset and yearly operating costs of the renewable system and in general the numbers of the general public that are researching and implementing these renewable energy systems. 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 Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 15 of 16 10/7/2009 meet the requirements of previous grants. Ionia has successfully completed initial phases of the Training Center Project. Currently, a 6,000 square foot log renewable energy building is being constructed that will house the Training center; funding for the construction has included capital grant funding from the Alaska Mental Health Trust Authority, USDA Rural Development, the M.J. Murdock Charitable Trust, the Rasmuson Foundation, and the Paul G. Allen Family Foundation. Private funding and labor has been contributed by Ionia. These funds used for initial reconnaissance and feasibility studies, site selection, and initial construction through second story framing. In-kind labor and donated equipment has been vital to completing these first two phases. All requirements of these previously awarded grants have been met. If AEA this funding request is approved, the goal will be to integrate the construction of the facility as seamlessly as possible with the prior phases. Work will begin immediately, with our first milestone of Phase IV to finalize final engineering plans for the energy system, order necessary components and materials for the energy system and confirm bids from contractors for the mechanical and electrical work. Timely equipment and material purchasing will be key components to meeting our milestone timelines. The project final goal is the operation and start-up by October 1, 2010. SECTION 8– LOCAL SUPPORT 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 local support for this project is very strong. Ionia has already engaged in an active public outreach in regards to sustainable living through the agricultural, nutritional, and renewable energy tours, lectures, and workshops. Ionia residents have demonstrated their ability to effectively and conservatively manage numerous public grants in a responsible manner. The Ionia Renewable Energy Training Center will build upon and augment these successful programs that are already in place, by offering a new model of renewable energy management using local resources. 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. The Ionia Renewable Energy Training Center is requesting $235,523 in AEA funds to complete Phase IV of the project. The core of Phase IV is the installation and commissioning of the renewable energy system for the facility as follows: Equipment, which includes two GARN system units, solar system, and a radiant hydronic distribution system. Amount of request: $167,523 Contractual Services will be required for plumbing and electrical for the installation of the new renewable energy systems. Amount of request: $56,000 Construction Services are required for installation of the new systems. Amount of request: $12,000 Anticipated additional investments to be made by the Ionia community will be approximately $33,000 in-kind administrative labor, and construction labor for Phase IV. Please see attached Grant Budget document. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 16 of 16 10/7/2009 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 Signature Title Date