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HomeMy WebLinkAboutUAF Rural Alaska-biomass-final-draf App November 5, 2009 Alaska Energy Authority 813 West Northern Lights Blvd. Anchorage, AK 99503 Re: Proposal to AEA Renewable Energy Fund, Round 3: “Cultivating Rural Alaska for Biomass Energy” Dear Sir or Madam: The University of Alaska Fairbanks is pleased to submit the attached proposal, “Cultivating Rural Alaska for Biomass Energy.” The Principal Investigator from UAF is Dr. William E. Schnabel, Director of the Water & Environmental Research Center, INE. As ARO for the UAF Office of Sponsored Programs, I affirm that UAF, as a division of the Alaska State government, is eligible to apply for this funding. UAF is committed to supporting this project as outlined in the statement of work and budget, and that UAF has the necessary infrastructure to manage and support this project. While this proposal does not commit any matching funds, the project will benefit from a complementary project managed by the Chugachmiut Tribal Organization. This collaboration will represent a significant cost savings to AEA over the life of this project. UAF is in compliance with applicable federal, state, and local laws, including existing federal credit and federal tax obligations. If you need additional information, please feel free to call my office at (907) 474-1851. Sincerely, Andrew Parkerson-Gray, Director Office of Sponsored Programs University of Alaska Fairbanks 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) University of Alaska Fairbanks, Institute of Northern Engineering, Water and Environmental Research Center Type of Entity: Government – University Research Center Mailing Address PO Box 755860, Fairbanks, AK 99775-5860 Physical Address 525 Duckering Building, 309 Tanana Loop Telephone (907) 474-7789 Fax (907) 474-7041 Email weschnabel@alaska.edu 1.1 APPLICANT POINT OF CONTACT Name Maggie Griscavage Title Director, UAF Office of Contract & Grant Administration Mailing Address University of Alaska Fairbanks PO Box 757880 109 Administrative Services Center Fairbanks, AK 99775-7880 Telephone (907) 474-7301 Fax (907) 474-5506 Email fygrcon@uaf.edu 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. Yes 1.2.3. As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement. Yes 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached grant form. (Any exceptions should be clearly noted and submitted with the application.) No 1.2.5 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public. (The results of this research will be publicized for the benefit of the general public, however the project is not designed or intended to construct physical infrastructure) 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) Cultivating Rural Alaska for Biomass Energy 2.2 Project Location – Include the physical location of your project and name(s) of the community or communities that will benefit from your project. This project will evaluate soils, plant species, growth conditions, and potential fertilizer sources for biomass crop production in the communities of Bethel, Eyak, Nenana, Nome, and Fairbanks. Greenhouse studies and associated analytical activities will be conducted at the University of Alaska Fairbanks. 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind X Biomass or Biofuels Hydro, including run of river Transmission of Renewable Energy Geothermal, including Heat Pumps Small Natural Gas Heat Recovery from existing sources Hydrokinetic Solar Storage of Renewable Other (Describe) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) X Reconnaissance Design and Permitting Feasibility Construction and Commissioning Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. This project will evaluate the potential for cultivating short rotation woody biomass crops in varied regions of Alaska, and will help to establish growing practices specific to each region. This work is a necessary precursor to implementing biomass cropping as a sustainable energy solution in rural Alaska. The work will complement a project currently being performed by the University of Alaska Fairbanks and Division of Agriculture to determine adaptability of various plant species to management as biomass crops under Alaskan agricultural conditions. Our work will also be performed in conjunction with a project being conducted by the Chugachmiut tribal organization to determine the potential for biomass production by various willow species under non-intensive management in interior Alaska. Specifically, this project will seek to address the following questions: 1) What is the current nutrient status of typical soils in regions likely to establish biomass plantations in the near future? Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 4 of 19 10/7/2009 2) What are the nutrient requirements for woody species likely to be used as biomass crops? 3) Can biosolids, an abundant and inexpensive resource potentially available in many Alaskan communities, be successfully utilized as a fertilizer to maximize biomass production? 4) Would the utilization of biosolids as a fertilizer for biomass crops present unintended environmental consequences such as pathogen mobility or heavy metal emissions? Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 5 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.)  Locally grown biomass crops may represent an enormous untapped energy resource for many Alaska communities, but there is scant information detailing the energy-production potential or proper management practices for biomass farming in Alaska. Implementation of biomass cropping as a viable renewable energy solution in Alaska will not proceed without preliminary studies such as the one proposed here. A major limiting factor for production of farmed biomass is likely to be low levels of soil nutrients. High production and transport costs of commercial fertilizers could be a major stumbling block for producing biomass crops, especially in remote regions. Many communities currently produce biosolids as a result of human waste treatment, and this could be a cheap, sustainable source of plant nutrients. Two potential concerns regarding the use of biosolids are vegetative uptake of heavy metals and mobilization of pathogenic microbes. Although biosolids have been deemed safe for non-edible crops in other areas of the country, we believe that further evaluation is necessary in order to ensure public acceptance in Alaska. This project will provide some of the answers to important questions surrounding biomass crop production, such as growth rates, plant nutrient needs, and effectiveness of biosolids as a fertilizer in Alaskan soils. Moreover, this project will evaluate any potential pitfalls to biosolids use including heavy metal uptake by plants and pathogen content of the biosolid fertilizer. This project will provide information that will help establish biomass cropping as a feasible way to produce fuels locally with local resources and thus reduce the need to import expensive fossil fuels and fertilizers into Alaska communities. Although non-woody species such as grasses may have potential as biomass crops in some areas of Alaska, we will focus this project on woody species because they are widespread in Alaska, are likely to be relatively easy to cultivate, and will not require advanced technology for energy conversion. This project will be a combination of field and greenhouse trials with various shrub or tree species, all of which are native to Alaska. It will be a cooperative effort by several units at the University of Alaska Fairbanks (School of Natural Resources and Agricultural Sciences, Water and Environmental Research Center, and the Alaska Center for Energy and Power), Chugachmiut Tribal Organization, and the Village of Eyak. In addition, the Tanana Chiefs Conference has expressed support for the project and will lend technical support. This multi- disciplinary, multi-unit approach will not only benefit the project by producing a more comprehensive research product, but will also benefit the State by forming a core group of entities interested in implementing the technology. This project will result in a final report and a publication written for Alaska land managers, evaluating the potential for biomass cropping in Nenana, Eyak, Nome, Bethel, and Fairbanks. Considerations will include the soil nutrient requirements, potential sustainable solutions for soil nutritional amendments (e.g., biosolids), biomass species options, climate characteristics, irrigation requirements, cultivation practices, and economic costs/benefits. This project will also support current studies being conducted by other groups designed to evaluate biomass production in Eyak and Nenana. Moreover, this project will seek partners in Nome and Bethel to establish pilot-scale biomass plantations in future projects. Finally, this project will support and produce two Master’s level scientists/engineers with interests and expertise specifically focused upon biomass cropping in Alaska. The success of biomass in Alaska depends not only upon our ability to cultivate energy crops in nutrient-deficient soils, but also upon our ability to cultivate young scientists and engineers capable of delivering fresh ideas to rural Alaska. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 6 of 19 10/7/2009 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. This budget contains funding for three UAF faculty researchers, two UAF graduate students, and funding for the travel and materials necessary to carry out the work. One Environmental Engineering faculty member will oversee an Environmental Science/Engineering graduate student and focus on issues related to biosolids production and application, heavy metal uptake, pathogen mobility, and the engineering aspects of large-scale crop production in Alaska. One Natural Resources Management faculty member will oversee an NRM graduate student and focus upon species selection, plant growth characteristics, soil nutritional requirements, and best management practices for large scale plantations in Alaska. One researcher affiliated with both the Alaska Center for Energy and Power and the Tanana Chiefs Conference tribal consortium will focus on project outreach and implementation of results. 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. $578,719 2.7.2 Other Funds to be provided (Project match) $ 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $578,719 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) $578,719 2.7.5 Estimated Direct Financial Benefit (Savings) $ See Section 5 2.7.6 Other Public Benefit (If you can calculate the benefit in terms of dollars please provide that number here and explain how you calculated that number in your application (Section 5.) $ See Section 5 Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 7 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. William Schnabel, PhD, P.E., will serve as the primary project manager. He will be the principal project contact, and will be responsible for maintaining the budget and ensuring that all project deliverables are properly submitted. Bill is the Director of the UAF Water and Environmental Research Center. 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.) This will be a three year project. A table showing important timelines is included Timeline Activity June 2010 Chugachmiut Tribal Organization forester will establish willow plantation at Nenana. July/August 2010 Collect soil samples from all locations. Conduct field survey of rural Alaska locations. Prepare land for field study at Fairbanks. Early winter 2010 Analyze soil samples for indigenous nutrient levels Late winter 2011 Collect plant cutting from each location for use in greenhouse and field studies. Spring 2011 Begin greenhouse study at UAF. Summer 2011 Begin field trial at Fairbanks, collect soil from field plots for anlaysis. Conduct follow-up evaluation at Nenana plot. Winter 2011/2012 Collect plant and soil samples for continued greenhouse study. Conduct soil and plant analyses. Spring 2012 Evaluate plants in plantations at Nenana and Fairbanks for survival. Summer 2012 Continue UAF field trials. Fall 2012 Collect plant and soil samples from plantations at Nenana and Fairbanks Winter 2012/2013 Weigh plants to determine wood yield, analyze plant and soil samples. Spring 2013 Evaluate plants for survival. Spring/summer 2013 Complete final report and publication. Make visits to villages covered in the study to discuss biomass cultivation. Conduct follow-up rural Alaska plant surveys. Future Although this project will end on June 30 2013, we hope to obtain further funding to continue the field studies, as data needs to be collected over several years in order to develop good conclusions about biomass cultivation. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 8 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.) This is a reconnaissance project designed to provide information critical to the development of biomass cropping as an effective and sustainable alternative energy solution in rural Alaska. The primary project deliverable is information rather than built infrastructure. As a consequence, the proposed annual reports are considered to be the most appropriate milestones by which to evaluate project progress. Annual reports will be submitted in September of 2010, 2011, 2012, and in June 2013. The first report will be submitted shortly after the project startup (Project Kickoff Report), and will detail the results from our cooperating agency’s (Chugachmiut) summer activities, preliminary UAF team site visit summaries, and provide information about students hired on to the project. Subsequent annual reports will contain information detailing that year’s research and budget activities. The final annual report 2013 will provide an evaluation of the entire project. 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. William Schnabel, PhD., P.E. will serve as co-leader of the project. Bill is an environmental engineer, and has expertise utilizing willow and poplar trees for engineering purposes including mitigation of contaminated sites, nutrient management, and water management. Bill will oversee one Environmental Quality Science or Engineering graduate student focusing upon the benefits and/or impacts of utilizing biosolids as soil nutrient amendments Steve Sparrow, PhD., will serve as co-leader of the project. Steve is an Associate Dean and Professor of Agronomy in the UAF School of Natural Resources and Agricultural Sciences. Steve has vast experience developing agricultural practices for use in Alaska, and will oversee one Natural Resources Management graduate student focusing upon species selection, growth rates and conditions, and best management practices for developing short rotation energy crop plantations throughout Alaska. Ross Coen is a Rural Energy Specialist at the UAF Alaska Center for Energy and Power. Ross serves a joint position with ACEP and the Tanana Chiefs Conference, and specializes in engendering relationships between technology developers and technology end-users. This role is critical for successful implementation of biomass technology in rural Alaska. In this project, Ross will serve as Outreach Coordinator, and will help to ensure that all project results are effectively communicated to the residents of rural Alaska. All biosolids-amendment field and greenhouse studies will be conducted at University of Alaska Fairbanks facilities. Soils analysis will be conducted at the UAF Water and Environmental Research Center and the UAF Agricultural and Forestry Experiment Station’s Analytical Laboratory in Palmer. UAF has ample field and greenhouse space, as well as state of the art analytical facilities to conduct all of the experimental work described in this proposal. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 9 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. This project is scheduled to last for a period of three years. At the end of each year, the project team will issue an annual report to bring the Authority up to date on project status. At the end of the third year, the project team will issue a final report. In addition, the team will set up a frequently-updated web page available to the general public shortly after the onset of the work. As outreach is a critical to the eventual implementation of project results, the team will also seek to ensure that the project objectives and activities are communicated to tribal organizations, rural community governments, and/or other interested entities. This will be accomplished by providing presentations at public meetings, sending project reports to contacts, and promoting the project website. 3.6 Project Risk Discuss potential problems and how you would address them. This is a reconnaissance/research project, and carries a very low risk of failure. Any information gleaned, even failed or insufficient growth on the proposed experimental field plots, will prove relevant to the evaluation of biomass crops as a renewable energy solution for rural Alaska. One potential problem is a failure to identify interested partners in the Nome and Bethel regions (we have already identified partners in Nenana and Eyak). In order to address this, we have included Ross Coen on our team. Ross specializes in energy-related outreach activities for the Tanana Chiefs Conference, and will be helpful in identifying contacts and finding partners in the Nome and Bethel areas. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 10 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. On its face, Alaska’s potential for production of biomass energy from managed biomass plantations is immense. This project seeks to better quantify the potential for production of woody biomass in Alaska and to begin to refine management practices to cheaply produce it. Thus, this project will ultimately lead to cheaper energy for many communities in Alaska through use of a local resource and which is economically and environmentally sustainable. The information generated will be applicable to both urban communities as well as small, remote communities in Alaska. Some of the perceived drawbacks to this proposal is that it will require a long-time (several years) before sufficient actionable information is generated; in some communities biomass plantations will require a cultural change (i.e. intensively managing a resource as opposed to harvesting existing resources); cropping would result in landscape changes (from native forest or shrub vegetation to plantations), which in turn could result in changes (either positive or negative) in wildlife habitat and view-sheds. We believe many of these potential drawbacks can be addressed through education and careful management. Also, at present, this project will be able to address the economic feasibility of growing biomass only in a general way, as site-specific information will be needed to fully evaluate the economic costs and benefits of cropping biomass. 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. Not applicable to this proposal. 4.2.2 Existing Energy Resources Used Briefly discuss your understanding of the existing energy resources. Include a brief discussion of any impact the project may have on existing energy infrastructure and resources. Alaska has several indigenous shrub and tree species which are well-adapted to its climate and may have potential as short rotation biomass crops. These include willows, poplars, alders, and several grass species. Various species of these plants occur across wide regions of Alaska and there have been numerous studies for purposes such as mined-land revegetation, streambank protection or restoration, and restoration of soils affected by oil-spills, but we are aware of no Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 11 of 19 10/7/2009 information on their growth rates or yields, either under managed or non-managed situations. Thus, biomass crops are at present essentially an unknown resource in Alaska. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Biomass (e.g., wood energy) is widely accepted and utilized as a heat source for homes and businesses throughout Alaska. Although most users burn wood obtained from large forest trees, alternative forms such as wood pellets are gaining momentum. Short rotation woody crops (e.g., willow plantations) are not well-exploited as an energy resource in Alaska, but could potentially represent a significant component of a community’s renewable energy strategy in the future. Their significance could be amplified if biosolids were utilized as fertilizers for plantation soils. A biomass plantation augmented with nutrients derived from a community’s wastewater stream not only promises the benefit of superior energy yield, but also offers a beneficial use for an otherwise problematic waste product. 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 goal of this project will be to determine the growth rates of short-rotation woody biomass crops under intensive and non-intensive management, soil nutrient limitations in typical in non disturbed or recently disturbed soils in three regions of Alaska (Interior, South Coastal, and Western) , the effectiveness of biosolids as a fertilizer for woody biomass crops, and potential for heavy metal uptake by biomass crops. This will involve collecting soil samples from five locations in regions in Alaska where interest is strong in using biomass for energy and there is likely potential for success in raising biomass crops. We will also collect soil samples from land which has never been managed (other than clearing native vegetation) and land which has been under low-intensive agricultural management for many years. Locations will include willow/alder stands near Eyak, Alaska which have been hydroaxed to enhance moose habitat but may have potential for biomass production, sites yet to be determined near Bethel and Nome, a site near Nenana which was recently cleared of native forest and will be planted to willows in 2010, and an old hay field at the University of Alaska Fairbanks Experiment Farm near Fairbanks. Soils from each location will be analyzed for available plant nutrients and will be included in a greenhouse study in which we will grow native woody species from each location with their respective soil with various levels of nutrients added to determine nutrient requirements for each species and soil Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 12 of 19 10/7/2009 type. One treatment will include addition of biosolids. At Nenana, approximately one acre of newly cleared land will be planted with cuttings of various willow species in spring 2010 by the Chugachmiut Tribal Organization forestry program and will be monitored for cutting establishment, survival, and growth rates. This will provide us with information on willow production under non-intensive management that may be typical of many woody biomass plantations in Alaska. At Fairbanks, we will establish a small plantation of felt-leaf willow and balsam poplar which will be fertilized with either commercial fertilizer or biosolids or left unfertilized. We will use felt-leaf willow and balsam poplar because a preliminary study at the Fairbanks Experiment Farm indicated these species are likely to have the most potential as short rotation biomass crops. This trial will allow us to determine the growth rates of these species under high and low nutrient levels and to compare the effectiveness of biosolids with commercial fertilizers and a fertilizer for biomass crops. 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. All experimental plots associated with this project will be completed on University Land set aside for research or on native allotments for which permits to plant willows have already been acquired. Regional vegetation surveys will be performed either on public lands or private lands after obtaining access permission from the land managers. Ross Coen, the project outreach coordinator, will coordinate the permissions if access to private lands is deemed necessary. 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 None needed other than as listed in 4.3.2. 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 This project will not impact any of the above environmental resources. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 13 of 19 10/7/2009 4.4 Proposed New System Costs and Projected Revenues (Total Estimated Costs and Projected Revenues) The level of cost information provided will vary according to the phase of funding requested and any previous work the applicant may have done on the project. Applicants must reference the source of their cost data. For example: Applicants Records or Analysis, Industry Standards, Consultant or Manufacturer’s estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following:  Total anticipated project cost, and cost for this phase  Requested grant funding  Applicant matching funds – loans, capital contributions, in-kind  Identification of other funding sources  Projected capital cost of proposed renewable energy system  Projected development cost of proposed renewable energy system Not applicable 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for new facilities constructed and how these would be funded by the applicant. (Note: Operational costs are not eligible for grant funds however grantees are required to meet ongoing reporting requirements for the purpose of reporting impacts of projects on the communities they serve.) Not applicable 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following:  Identification of potential power buyer(s)/customer(s)  Potential power purchase/sales price - at a minimum indicate a price range  Proposed rate of return from grant-funded project Not applicable 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. The objective of this project is to evaluate the soil characteristics, growth characteristics and nutrient requirements for cropped biomass plantations in various regions of Alaska in order to maximize energy yield. These quantities are required for conducting cost-benefit analyses, but are not yet available. Consequently, the cost-benefit worksheet is not applicable at this stage of our reconnaissance project. We do, however, intend to perform a cost/benefit analysis as a component of our project final report for use by ourselves and others in subsequent projects. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 14 of 19 10/7/2009 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 economic benefits of biomass cropping in Alaska are highly dependent upon site-specific characteristics such as accessibility of land, local climatic and growth patterns, soil nutrient status, and availability and quality of fertilizers. This project seeks to evaluate these characteristics in a variety of rural Alaska settings in order to provide the information upon which a detailed cost-benefit analysis could be based. In so doing, we intend to develop evaluation procedures that other entities could follow when considering biomass cropping in their own localities. Follow-up studies (feasibility studies) will incorporate the information and techniques produced in our reconnaissance study to evaluate biomass cropping costs/benefits, then compare those results to other energy alternatives Due to the uncharacterized status of our study sites as well as the fundamental nature of the research issues being addressed, we are not able to produce a cost-benefit analysis prior to the completion of our study. However, similar activities being conducted in other regions indicate that our work will ultimately lead to an alternative, renewable energy source for many communities in Alaska. The utilization of biosolids as a fertilizer resource promises significant benefits for Alaskan communities. As stated previously, biosolids provide nutrients essential for maximized plant growth in Alaska’s nitrogen and phosphorus depleted soils. In biomass parlance, maximized plant growth leads to maximized energy yields. In Fairbanks, biosolids produced at the wastewater treatment plant are processed and sold as soil amendments. In smaller communities, wastewater is treated differently (often in lagoon systems), and all products associated with that waste are considered to be nuisance materials requiring disposal. One component of the proposed research will be to evaluate not only how will the application of biosolids impact the trees and soils on which they are applied, but also how best to convert the waste products of various types of rural Alaskan treatment systems into safe and effective soil amendments. The research proposed here represents the fundamental steps necessary to develop the practices and technologies leading to reliable and sustainable harvests of Alaskan biomass crops. At the same time, this research will provide an effective avenue for recycling a ubiquitous waste product. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 15 of 19 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 Not applicable 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. We intend to begin work on the project as soon as the grant is awarded. Indeed, the Nenana planting (funded by BIA and performed by Chugachmiut) will begin before the project start date of 1 July 2010. Immediately following the start date, we will identify the students to be involved, visit the villages described in the proposal, and collect soils and plant materials required for our initial studies at UAF. These activities will be described in the Project Kickoff Report due 30 Sep 2010. There is currently a complementary research project being carried out by the University of Alaska Fairbanks’ School of Natural Resources and Agricultural Sciences and the Alaska Division of Agriculture’s Plant Materials Center to evaluate various woody and herbaceous species for their potential as bioenergy crops. While that study evaluates which species might make effective biomass crops in Alaska, the study proposed here evaluates how best to quantify and maximize the energy gained from a select variety of promising species. Nonetheless, results from the existing study will enhance the results of the proposed study. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 16 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. We have discussed this project with the Chugachmiut Tribal Organization, The Tanana Chiefs Conference, and the Village of Eyak. All have expressed support for our proposed research. We do not anticipate any opposition, as all field trials and greenhouse studies involving biosolids application will be conducted in designated research areas on the UAF campus. SECTION 9 – GRANT BUDGET Tell us how much you want in grant funds Include any investments to date and funding sources, how much is being requested in grant funds, and additional investments you will make as an applicant. Include an estimate of budget costs by milestones using the form – GrantBudget3.doc We request $578,719 to carry out all phases of this three-year project. Roughly 70% of the budget is intended to support the personnel required to meet our objectives, with the remaining 30% dedicated to supplies, travel, and other project necessities. This amount of labor reflects the time devoted to data gathering, interpretation, and data reporting, as well as engaging two graduate students and one undergraduate in this work. A key component of this research is to produce new professionals with a deep background in Alaskan biomass applications for energy. Salaries Senior Personnel. Funding to support a total of 174 hours per year for 3 years is requested for the Principal Investigator and Co-principal Investigator of this project. Per UAF policy, these faculty receive leave benefits at a rate of 18.7%, calculated on salary. Total cost to Project: $84,994. Other Personnel. Funding to support 174 hours of salary per year for 3 years is requested for one Rural Energy Specialist, who will coordinate project outreach and implementation. Per UAF policy, staff receive leave benefits at a rate of 20.2%, calculated on salary. Total cost to Project: $19,151. Support is requested for two Masters level Graduate Student Research Assistants for three years. Students work 20 hours per week during the academic year (560) and 40 hours per week during the summer (760), for a total of 1320 hours. Total cost to project: $245,183. Support is requested for an undergraduate student research assistant for one summer for each year of the project (560 hours a year). Total cost to Project: $32,454. Fringe Benefits Staff benefits are applied according to UAF’s benefit rates for FY10, which are negotiated with the Office of Naval Research (ONR) annually. Rates are 28.2% for senior salaries, 44.1% for Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 17 of 19 10/7/2009 staff, and 8.0% for graduate and undergraduate students (summers only). Additionally, UAF requires that any graduate student supported by a research project also receive health insurance while working on the project. Costs for academic and summer coverage in FY10 are $1,398. Total cost to Project: $29,218. Permanent Equipment No permanent equipment shall be purchased for this project. All equipment required for soils and plant analysis is already owned by UAF and will be made available to this project. Travel Funds of $13,650 are requested to support travel to field sites in Year 1. Funds of $735 and $15,175 are requested for travel in Years 2 and 3, respectively. Travel during Years 1 and 3 include airfare, lodging, and meals for the team to travel to Nome, Bethel, Eyak. Car rental and meals are included for day trips to Nenana during all three years of the project. Airfare costs are estimated at $625 per RT ticket to Nome and Bethel, and $500 per RT ticket to Eyak. Per diem is estimated at $230 per day, based on current pricing, US Government figures and UA Board of Regents policy. Total cost to Project: $29,560. Other Direct Costs Materials & Supplies. A total of $36,250 is requested for supplies required to carry out field and greenhouse studies at UAF. Funds of $25,000 are requested for Year 1, while $8,750 and $2,500 are requested for Years 2 and 3, respectively. The following expenses are covered in this category: Field plot fencing $5,000 Analytical standards, columns, and solvents $15,000 Field sampling supplies $4,000 Computing supplies $2,000 Microbiological analysis supplies $7,500 Lab glassware and maintenance supplies $2,750 Subtotal $36,250 Publication & Dissemination. A total of $939 is requested to fund publication costs, to defray the expenses of publishing our results in professional journals. Services. Funds of $1,125 are requested to cover the cost of producing presentations, factsheets, and/or brochures describing our results for dissemination in rural Alaskan communities. Soil Nutrient Analysis. Soil nutrient analyses will be performed at the UAF Palmer Research and Extension Center. Soil analyses are charged on a per sample basis. Approximately 125 samples are planned over the course of the study, with an estimated cost of $85 each. Total cost to project: $10,625. Shipping. Funds of $1,250 for each of Years 1 and 2 are requested to cover the cost of shipping soil and plant samples from rural areas to Fairbanks and/or Palmer for analysis and greenhouse studies. Total cost to project: $2,500. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 18 of 19 10/7/2009 Homoraria. Funds of $625 for each of Years 1 and 2 are requested to fund local rural residents for assistance in sampling and surveying. Total cost to project: $1,250. Other. UAF requires that any graduate student supported by a research project over the course of the academic year also receive tuition support for the life of the project. Requested cost of three years tuition for two graduate students is $80,652. Match and other resources This project is not offering match funds as defined by federal regulations. However, this project will benefit from the collaboration with Chugachmiut Tribal Organization, who will spend $75,000 developing a willow plantation in the Nenana area (see attached letter of support). As our planned evaluation of their plantation will be integral to our project results, Chugachmiut’s investment represents a cost savings to our project. Renewable Energy Fund Grant Round III Grant Budget Form 10-7-09 Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS Project Kickoff Report 30 Sep 2010 $80,002 $ $80,002 2011 Annual Report 30 Sep 2011 $127,064 $ $127,064 2012 Annual Report 30 Sep 2012 $181,457 $ $181,457 Final Report 30 June 2013 $190,196 $ $190,196 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $578,719 Budget Categories: Direct Labor & Benefits $415,818 $ $415,818 Travel & Per Diem $29,560 $ $29,560 Equipment $0 $ $0 Materials & Supplies $36,250 $ $36,250 Contractual Services $16,439 $ $16,439 Construction Services $0 $ $0 Other $80,652 $ $80,652 TOTALS $578,719 $ $578,719 Applications should include a separate worksheet for each project phase (Reconnaissance, Feasibility, Design and Permitting, and Construction)- Add additional pages as needed