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HomeMy WebLinkAboutcity of tanana GrantApp3_10-7-09 Renewable Energy Fund Round 3 Grant Application AEA 10-015 Application Page 1 of 19 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 19 10/7/2009 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) City of Tanana Type of Entity: Local government - Municipality Mailing Address PO Box 249 Tanana, Alaska 99777 Physical Address 249 2nd Street Tanana, Alaska 99777 Telephone 907-366-7159 Fax 907-366-7169 Email beartanana@gci.net 1.1 APPLICANT POINT OF CONTACT Name Bear Ketzler Title City Manager Mailing Address PO Box 249 Tanana, Alaska 99777 Telephone 907-978-5848 Fax 907-366-7169 Email beartanana@gci.net 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer in accordance with 3 AAC 107.695 (a) (1), or X A local government, or A governmental entity (which includes tribal councils and housing authorities); Yes or 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 ) Yes or No 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 or No 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 or No 1.2.5 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 3 of 19 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) City -Tribe Biomass Energy Conservation 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. At the Assisted Living Facility, tribal offices and Internet Training Center in Tanana, Alaska 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 of your proposed project. The City of Tanana in collaboration with the Tanana Tribal Council proposes to install a biomass heating source and solar panels for the Assisted Living Facility for elders in Tanana, the Tanana Tribal Offices and the Internet high tech training center in Tanana. All three buildings are located close to one another. The City of Tanana will oversee the construction and implementation of this project; the Tribal Council will provide in-kind and collaborative oversight of the project. The project site is on 4.3 acres of land dedicated to this project. The Biomass Center building will be located in the middle of the complex of three buildings within 100 feet of the center of these building. The Biomass Center will house three (3) GARN heating units that will provide hot water heat to each of the buildings. The biomass heating units will greatly reduce the use of expensive fuel oil and save money for the Assisted Living Facility and Tribal Council. The installation of 63 solar panels will provide electricity to the three buildings during the summer months significantly reducing the cost of electricity. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 4 of 19 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.) The economic benefits of the installation of a Biomass Heating System will be immediate. The projected biomass fuel use at this facility will be 46 cords per year for a total cost of $12,650. When wood is translated into BTUs it provides energy at a rate of $2.00 per gallon of diesel fuel. The current gallons of diesel fuel used to heat all three complexes are 12,960 gallons a year. At today’s cost of $5.99 per gallon for diesel fuel, the annual heating costs are expected to be $77,630. This translates into an annual minimum savings of $64,980 per year. The price per gallon of fuel oil is expected to rise even higher this year. In addition to this savings of diesel fuel cost, local jobs will be created by wood cutters. This will be a plus for the community as instead of money going to outside based fuel companies, wages paid to work cutters will remain within the community of Tanana circulating several times in a multiplying economic effect. Wood fuel for the biomass boilers will come from thousands of acres of forest surrounding the community of Tanana and from drift wood floating down the Yukon River. The City of Tanana has a proven track record of operating biomass systems since the start up of the Tanana Energy Center that heats and provides electricity for our washeteria. The 63 solar thermal panels that will be installed in this project will also bring substantial benefit to the elders and tribal council offices. Just the combined electrical expense of the assisted living facility and the tribal council has averaged between $35,000 and $39,000 per year. By using solar panels during the last half of April, the full months of May, June, July, August, a half month of September, the cost of electricity will be reduced by $16,000 each year. This will be as a result of 90% use during the months mentioned above and this savings can be passed on to the elders living in the assisted living facility and the tribal office. . 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 City of Tanana is requesting $492,642 to install Biomass and Solar Energy Systems at the Tanana Assisted Living Facility, Tanana Tribal Office and Internet Training Center buildings. The costs for the biomass and solar systems come directly from experienced suppliers of these systems in Interior of Alaska. The construction project costs are derived from the cost of construction the Tanana Energy Complex by the City of Tanana and reflex accurate direct and indirect construction costs in our rural community. Construction material and shipping costs are quotes from vendors. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 5 of 19 10/7/2009 The project costs are as follows: 1. Construction of 40 x 42 Biomass Building to provide wood storage and housing for three (3) boilers. $297,322 Direct Labor and Fringe: $172,202 ($27/hr x 40 hrs x 7 x 20 wks) Fringe @ 13.89% Building materials including foundation, floor, window, door, sidewalls, roof and with added sheetrock for fire wall: $80,499. Construction services: $7,200 for engineering and design, $19,033 for site prep in- cluding 1,386 cubic yards of gravel fill, $18,388 for wiring for building with ex- terior lighting, interior lighting and power for circulation pumps and controls. 2. Purchase and install solar system at total cost: $80,000 Equipment purchase of 63 solar thermal panels, heilo-pak heat transfer equipment at $65,000. Construction service to install solar storage and hook up with facility plumbing at $12,500. Other direct costs include shipping solar panels to Tanana at $2,500. 3. Purchase and install three Biomass System total costs: $115,320. Purchase of 3 WHS-2000 GARN heating units: $ 47,550 Replacement and maintenance parts, flue kits: $9,270. Construction services to install three arctic pipe runs under flooring connected to heating system, circulation pumps and control materials for pump: $48,000 Other direct costs include: shipping 3 units from MN to Fairbanks, shipping from Fairbanks to Tanana $10,500. Grant Costs (Summary of funds requested) 2.7.1 Grant Funds Requested in this application. $ 492,642 2.7.2 Other Funds to be provided (Project match) $ 95,723 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $ 588,365 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) $ 492,642 2.7.5 Estimated Direct Financial Benefit (Savings) $ 80,980 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.) $ 37,950 Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 6 of 19 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. Bear Ketzler, City Manager of Tanana, will manage this project. Bear has over 25 years of construction management experience including overseeing and managing the construction and operation of the Tanana Energy Center that has the same technical components in this project. (resume is attached) 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.) Task # 1: Construction of biomass building. Complete design and mechanical engineering by July 1 2010. Obtain Fire Marshall approval by July 5, 2010. Place order of building materials from SBS by June 1, 2010. Site preparation by July 15, 2010 Begin construction of building by July 16, 2010. Task # 2: Install Solar System. Place order of 63 solar panels from ABS in Fairbanks by July 1, 2010. Ship panels to Tanana by August 1 2010. Schedule installation of solar panels on roof by August 15, 2010. Install solar system hookup to three facilities by Sept. 1, 2010. Solar system operational on April 15, 2011. Task # 3. Install Biomass Systems. Place order for 3 GARN Heating units by May 2010. Begin first phase of construction with site preparation July 1, 2010. Receive building supplies by July 15, 2010. Begin construction of Biomass building on July 15, 2010. Receive shipment of 3 GARN Boilers by August 15, 2010. Secure wood contracts by Sept. 1, 2010. Complete Biomass building December 15, 2010. Install units by December 31, 2010. Units operational by January 1, 2011.  Placing orders for supplies prior to receiving Alaska Energy Authority grant monies is necessitated by the need to have supplies delivered in time by barge to Tanana. This is also based on the assumption the City of Tanana will be notified of an award prior to the actual grant start up date of July 1, 2010. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 7 of 19 10/7/2009 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.) The first milestone will be to complete the installation of the solar panels on the three buildings by October 1, 2010. Key tasks include: Completion of the contract with the Solar System supplier for the ordering, purchase and delivery of solar panels. Scheduling mechanical/plumbing/ and electrical crews to assist with the installation of the solar panels and tie in to the solar storage unit the heating and electrical systems in place. The second milestone will be to begin and complete the construction of the Biomass Building by December 15, 2010. Key tasks include: Obtaining the fire marshal’s permit. Placing order for building supplies. Site preparation. Purchase and delivery of building supplies. Begin and complete building the Biomass Building. The third milestone will be to have the 3 GARN Boilers operational by December 31, 2010. Key tasks include: Purchasing 3 GARN WHS-2000 Heating Units and supplies, delivered to Fairbanks in time to be loaded on a barge and shipped to Tanana. Completion of engineering, mechanical, and plumbing required to tie in the Biomass Units to the three facilities. Delivery of wood for biomass system and begin operations. 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 City of Tanana as the contractor will undertake direct oversight and management of this project implementation from start up to finish. Key personnel will be Bear Ketzler, as Project Manager, Pat Moore as Construction Administrator, Tom Hyslop as Project Manager and Darlene Wright as Project Coordinator. Cliff Wiehl will be the head maintenance person of the Assisted Living Facility and the Tribal Council Offices. All five of these persons have worked together in the past. Bear, Pat Moore, and Tom Hyslop all have extensive construction over sight and management experience. Bear was the key personnel for developing the Tanana Energy Center. Pat Moore has been Construction Administrator of both state and federal project as has Tom Hyslop. Darlene Wright has coordinated projects for well over the past 25 years and presently as the Executive Director of the Tanana Tribal Council is able to work effectively with the Council and the City to maximize efficiency of this project. Cliff Wiehl has over 20 years heating and building maintenance experience. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 8 of 19 10/7/2009 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. The City of Tanana will oversee and monitor the project and keep the AEA informed of the status. Bear Ketzler, as Project Administrator will be responsible for: 1) coordination of the mechanical and engineering designs of the project; placing orders of all needed building supplies, solar panels and the 3 GARN boilers. 2) Construction scheduling and Implementation. 3) Financial management of funding dollars in accordance with Authority’s agreement and disbursement of project funding. 4) Documentation of all in-kind for the project for the Authority. 5) Management of all Subcontractors required to produce satisfactory work completion. The Alaska Energy Authority will receive regular written reports on the progress of the grant and the building of the biomass center, installation of the three GARN boilers and installation of the solar panels. 3.6 Project Risk Discuss potential problems and how you would address them. As in all rural areas, the biggest problem is logistics. Timing of barge shipments is critical, placing orders and paying for the orders upon grant approval is also critical. The supplies to be purchased and paid for include: all building supplies, solar panels and related hook up equipment, 3 GARN boilers and parts. Once the City of Tanana is notified its grant has been approved we will immediately begin the ordering process so as to avoid delays and prompt shipment by barge to Tanana of all items to be used in this grant. The City of Tanana has an excellent credit rating and if money had to be borrowed to pay for needed supplies and barged to Tanana in advance of grant monies received, the City would borrow money until the actual grant monies are in hand. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 9 of 19 10/7/2009 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. Tanana is surrounded by thousands of acres of forest that are accessible for the firewood needed in this project. The solar panels will be used starting in April when the sun begins to cast its energy outward with increasing daylight hours. In June and July the panels will be producing electricity for 90% of the capacity needed. The biomass system will create local jobs and reduce significantly our dependence on a non renewable resource, diesel fuel. Both of these factors will help our local economy. We have yet to discover or run into any cons with the Tanana Energy Center that uses biomass boilers and solar panels for Tanana’s washeteria. Local residents’ pride has been significantly increased in the operation of the Tanana Energy Center. The only con might be increasing man made efforts to reforest the areas cut down for firewood. By our best estimates, there exists a 200 years supply of wood products if nothing is done. The City of Tanana wants to begin reforestation in the near future as it will help in the global carbon reduction effort. The only other alternative fuel would be propane but this would be paying for propane to outside the community suppliers and would adversely impact the local economy. 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. The existing energy system in the three buildings is oil fired furnaces and electricity provided by the privately owned utility company. In the Assisted Living Facility and the Tribal Offices, the heating system is over 20 years old. Heating pipes are corroded and inefficient. This also increases significantly the amount of fuel oil that is burned. When the biomass system is hooked up to the three buildings, new cooper piping will be used to increase the efficiency of the heating system. The electricity generated by the privately owned electric company runs off generators fueled by diesel fuel. By installing solar panels on the three buildings, the consumption of non renewable diesel fuel will be reduced. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 10 of 19 10/7/2009 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 GARN boiler units burn at 84 to 86% average efficiency when the wood has 20% humidity. The units are rated for safety by a major testing laboratory and are shielded to prevent hot temperatures near workers as well as for fire protection. GARN boiler units have been in operation for over 20 years. As a result of their patented design, the ceramic burn box consumes particulates, smoke and creosote at 2,000 degrees before moving hot gas through a heat exchanger within the water jacket. Most of the heat is transferred to the water, producing a “cool” exhaust that is approximately 150 to 350 degrees above water temperature. The units burn so thoroughly that their final exhaust produces virtually little smoke and exits the building with little to no smoke. This project will purchase 42 cords of wood per year from local suppliers from Tanana. A source of wood will also come from the Yukon River as drift wood and land based resources. The wood resource that comes from the Yukon River is replenished annually and is essentially timeless. The wood from land surrounding Tanana is available on Native lands in the area. Local suppliers in Tanana will contract with the City of Tanana to provide 24” – 32” cut/stacked cordwood. Contracts with wood suppliers will help the local economy through a multiplier affect as money will be spent locally that would otherwise leave the community and go to outside based fuel companies. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The current diesel fuel used by the Assisted Living Facility for Elders, the Tribal Council Offices and the Internet Training Center is unsustainable and project to be in excess of 12,960 gallons for this year. At $5.99 per gallon, this cost is over $77,630 and adversely affects the quality of living for the elders in the Assisted Living Facility as well as reducing the amount of money that could be used to pay for direct services to elders. The cost of $5.99 is expected to go even higher in the future. As the cost of energy continues to rise, rural residents are forced to live their homes in rural communities and migrate to urban areas where fuel costs are lower. This compounds the adverse economic conditions in rural communities. This project will have a positive, significant affect on our community by lowering costs to heat the Assisted Living Facility, Tribal Council Offices and the Internet Learning Center. This project can also serve as a model for other villages just as the Tanana Energy Center has provided a model for washeterias in other rural communities. The Biomass/Solar Project is a win-win project for all parties concerned. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 11 of 19 10/7/2009 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 GARN WHS-2000 heating units proposed for the project use up to 45% less fuel and labor. The heating units have massive water storage; intermittent, hi temp efficient combustion; and a computer designed, efficient 5 pass heat exchanger. The units provide intermittent, hi temp to stage combustion with ceramic lined second changers, sealed combustion with horizontal vent. Man way access with self cleaning dished galvanized cover provides a low life cycle cost. The burn rate, BTU per hr for the 2000 series is 425,000. BTUs stored at 120-200 degrees are 1,272,000 BTUs for each boiler which take wood lengths from 24” to 32” making the units easy to load. The GARN units in the Tanana Energy Center used to heat the washeteria and heat the hot water have an excellent record of operation, low repair record and are easy to load. The more BTUs stroed the less firing needs to be done on the GARN each day. Solar Panel Installation is based on a model installed on the washeteria in the Tanana Energy Center. This proposal will install 63 solar terminal panels on the roofs of the three buildings. The panels will begin operation in April 2011 and reach full operational use the months of June and July when there are long summer days. At peak efficiency, the units are projected to produce 8000 watts of electricity, enough to power 100% of the facility demand. The solar panels to be installed are manufactured by Kyocera Solar, Inc. a company that is among the oldest solar companies in the United States. The Kyocera solar systems come with ease of installation, durability and affordability. The Solar Rating and Certification Corp. (SRCC) rated their solar panels as 25% more efficient.. Over 40 years of design with engineering refinement have gone into making the solar collectors an excellent choice for rural environments. 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. There are no land ownership issues. The lands the three buildings are located on have been dedicated to the Tribe. A collaborative agreement between the Tribal Council and the City of Tanana for this project has been approved. Because of its experience in developing the Tanana Energy Center, the City of Tanana and Bear Ketzler, City Manager will over see the project. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 12 of 19 10/7/2009 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 The City of Tanana will obtain a Fire Marshall’s permit for the Biomass Building by July 5, 2010. No other permits are required. 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 No endangered species, habitat issues, wetlands, archaeological and historical resources, land development constraints, telecommunications interference, aviation considerations are involved with this project. The biomass building will be an attractive building. No other potential barriers have been identified. The construction of the biomass building is within 100 feet of the existing buildings and within the parcel boundary. There are no other potential barriers that have been identified and none have arisen in the operation of the Tanana Energy Center. 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 total project cost including the in-kind will be $ 588,365. The City of Tanana is requesting from the Alaska Energy Authority $492,642 in grant monies. This amount of grant funding will include the construction of a new biomass energy building, solar panels, purchase of three GARN high-tech biomass boilers and all other supplies needed to complete the project. The project will Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 13 of 19 10/7/2009 begin on July 1, 2010, the biomass boilers will be in operation by Jan.1 , 2010 and a final report on the project including all expenditures and in-kind documentation will be submitted to the Alaska Energy Authority by June 30, 2011. In -kind dedicated to this project include: an electrical upgrade of the existing building housing the Assisted Living Facility for Elders and the Tanana Tribal Council offices from Native American set aside monies amount to a total of $46,000. The City of Tanana has agreed to donate heavy equipment to be used in site preparation and construction of the biomass building at the current hourly rental rate of $125/hr with 120 hours to be donated to the project for a value of $15,000. One thousand six hundred and eighty square feet of land will be donated to the project where the biomass building will be constructed. The value of this land as given to the City of Tanana by the Tanana Chiefs Conference’s Realty Department is a minimum of $10 per sq. foot for a total value of $16,800. Bear Ketzler’s hourly rate for oversight of construction projects in Tanana is billed at the rate of $45/hr. He will provide construction administration for a minimum of three hours a week for all 52 weeks of the grant as he will also assume responsibility for all reporting including the final report. The value of his in-kind totals $7,020. Darlene Wright will provide 10 hours a week of project coordination for this project for 20 weeks and her hourly wage is $36.06 per hour. The value of her in-kind totals $7,212. Cliff Whiehl will provide existing building coordination for the project and maintenance and will also oversee installation of the heating pipes from the GARN heating units. The value of his in-kind totals $3,691 at 10 hours per week during construction for 16 weeks at his hourly wage of $23.07. The total value for this project will be $95,723. The projected capital cost for purchasing the three GARN heating units is $47,550 and the capital cost for purchasing the solar panels will be $140,000. These are direct quotes from the suppliers. In addition, we will purchase replacement and maintenance parts in advance for the GARN boilers at a cost of $9,270. This totals $196,820 for direct capital costs. Direct labor and fringe and building supplies for the biomass building totals $217,322. This includes site preparation, wiring for buildings, gravel fill and engineering and design costs. Other development costs include shipping and freighting the boilers and solar panels, installation of the GARN boilers and the solar panels for a total of $78,500. These figures are broken out separately in the accompanying budget forms. 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.) The anticipated O & M costs for the new facilities will come out of existing budgets and funding for the Assisted Living Center for Elders, the Tanana Tribal Council and the Internet Training Center. In lieu of paying for O & M costs for the existing system, the costs will come out of the current budgets and because of the savings from these renewable energy systems to be installed, all O & M costs will easily be covered. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 14 of 19 10/7/2009 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 The customers of this project will be those who live in the Assisted Living Center for Elders, the Tanana Tribal Council and the Internet Training Center. As this project will reduce the cost of heating and electricity, savings can be redirected from the existing budgets to provide better services to those who live and work in these facilities. 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. Attached: The costs to Construct the new biomass building are based on cost estimates from contractors. Construction costs for mechanical and plumbing are based on the actual costs of the construction of the Tanana Energy Center. Freight costs are based on quotes from Inland Barge Company. The cost of delivery of building materials supplies comes from Spenard Builders in Fairbanks. The cost to purchase three GARN heating units, the costs for installation and maintenance as well as replacement parts and shipping is from a quote from Alaska Heat Technologies (attached) The cost to purchase and install 63 solar panels on the roof of the three buildings is from a quote from ABS of Fairbanks, Alaska. Other costs were determined by contacting local suppliers of mechanical, plumbing and electrical supplies in Fairbanks. 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 The GARN heating units have a minimal expected life of 20 to 30 years if proper maintenance is performed on them annually. This will be done. Using 20 years as the base for calculations, the total annual fuel displacement of the project will be $252,000 gallons and using the current Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 15 of 19 10/7/2009 cost per gallon of diesel fuel in Tanana of $5.99, $1,509,480 would be the cost over 20 years. This is at the current low price. Since 46 cords of wood would be used at a cost of $275 per cord, this results in a total cost of $253,000 so an actual dollar savings of $1,256,480 would be achieved over the life time of the project. The solar panels are expected to save up to $16,000 per year in electrical costs. Over a 20 year period, this will amount to a total of $320,000 in direct savings. We have not to date identified other annual revenue streams such as green tag sales, subsidies or programs that might be available. The City of Tanana will be on the look out for such programs. The non economic benefits are significant. There is something about burning wood to rural residents that benefit them emotionally. We have seen pride in the Tanana Energy Center translate into positive community attitudes. This is infectious and hopefully down the road will lead to other positive community developments. The fact that money will be saved and then spent in the community also uplifts community spirit. 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 This project is sustainable as it will use renewable resources (wood and the sun) and significantly reduce the cost of current operations. The City of Tanana would be interested in developing larger and cooperative business structures in the future if such structures would provide additional b enefit to the residents who live in Tanana. Cooperative wood suppliers might help, a larger central biomass energy system might enable the local school to be heated at a much smaller cost that using diesel fuel. Maintenance and operations of the project will be funded through the existing funding sources of the Assisted Living Facility for Elders, the Tanana Tribal Council and the Internet Training Center. Each program has budgets that currently support the diesel fuel operations. By developing the biomass systems and solar panels, the cost for heating and providing electricity will be greatly reduced. By signing contracts with wood suppliers, operational costs are reduced. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 16 of 19 10/7/2009 This City of Tanana is committed to submitting all required reports to the Alaska Energy Authority. In addition, we will be willing to provide information to other rural communities that need to and are interested in biomass and solar system installation. 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. Work will begin immediately as soon as we are notified our grant has been approved. This will include ordering GARN heating units, solar panels, scheduling barge shipments, ordering building supplies and seeing that the final engineering and mechanical designs are complete. Using the Tanana Energy Center development information, we were able to efficiently develop our proposal. The building of the Tanana Energy Center is an example of what we have done and done well. No other grant funding has been secured for the collaborative project. The City of Tanana has successfully carried out grants, reporting requirements and financial management in all of our work in the past ten years. The City of Tanana has had not audit exceptions or any mismanagement of grant monies in the past. The City of Tanana is committed to continue this same high degree of grant management and fiscal responsibility in the future. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 17 of 19 10/7/2009 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. With Darlene Wright serving as the project coordinator, local support for this project has been increased. We have attached letters of support from the community that would benefit from this project. No opposition should be forth coming as the community of Tanana has seen the Tanana Energy Center in operation and they like it. 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 City of Tanana is requesting $492,642 in funding from the Alaska Energy Authority for the installation of a biomass system and solar panels for the Tanana Assisted Living Facility for Elders, the Tanana Tribal Council and the Internet Training Center. This is a collabor ative project with the City of Tanana and the Tribal Council working together to carry out the grant if awarded. The City of Tanana and its collaborative partners will contribute a total of $95,723 as an in -kind donation to the project. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 18 of 19 10/7/2009 Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 19 of 19 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 Bear Ketzler Signature City Manager, City of Tanana Date October 9, 2009