HomeMy WebLinkAboutDelta Greely School District Wood Chip Boiler Heating System App
Renewable Energy Fund Round 3
Grant Application
AEA 10-015 Application Page 1 of 21 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 21 10/7/2009
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Delta/Greely School District
Type of Entity:
Public School District/R.E.A.A. #15
Mailing Address
P.O. Box 527 Delta Junction, AK 99737
Physical Address
1664 North Clearwater Avenue
Telephone
(907)895-4657
Fax
(907) 895-4246
Email
pjford@dgsd.k12.ak.us
1.1 APPLICANT POINT OF CONTACT
Name
PJ Ford Slack, Ph.D.
Title
Superintendent
Mailing Address
P.O. Box 527 Delta Junction, AK 99737
Telephone
(907) 895-4657
Fax
(907) 895-4246
Email
pjford@dgsd.k12.ak.us
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 school district
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 students of the Deltana Unorganized Borough Area
and the general public.
Renewable Energy Fund
Grant Application Round 3
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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.
Wood Chip Boiler Heating System
2.2 Project Location –
Include the physical location of your project and name(s) of the community or communities that will
benefit from your project.
1664 North Clearwater Avenue, Delta Junction, Alaska. The Wood Chip Boiler Heating System
will be approximately 50 feet from north end of the Delta High School Complex.
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind X Biomass or Biofuels
Hydro, including run of river Transmission of Renewable Energy
Geothermal, including Heat Pumps Small Natural Gas
Heat Recovery from existing sources Hydrokinetic
Solar Storage of Renewable
Other (Describe)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Reconnaissance X Design and Permitting
Feasibility X Construction and Commissioning
X Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
The Delta/Greely School District proposes a Wood Chip Boiler Heating System to heat 77,000
sq. ft. of educational space in the sub-arctic. The legal description of the Delta High School
complex is 64 degrees 02’ 35.66” N 145 degrees 42’ 57.10”W. The building would be located
50 feet away from the Delta High School new mechanical room. This Wood Chip Boiler
Heating System constructs and installs the following: Cement building to house wood chip
boiler, chip storage room, 4 chip storage trailers, and a chip feeding and chip drying process.
The direct impact of this Wood Chip Boiler Heating System will be the Delta High School
complex staff and students as well as the community groups that use this facility on a weekly
basis. The following communities are served by this facility: Delta Junction, Fort Greely
Garrison and its contractors, Gerstle River, and the greater Deltana area. The businesses, non-
profit agencies, Farm Forum, Relay for Life, Fish and Game, Department of Motor Vehicles,
Delta Chamber of Commerce, Boy Scouts and Girl Scouts to name a few groups. All use the
Delta High School complex during the year. Future plans include hooking the boiler to our
Vocation/Agriculture building and Career Advancement Center building. There is also the
possibility of adding a large greenhouse that would supply the schools in the district with fresh
Renewable Energy Fund
Grant Application Round 3
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2.4Project Description continued
produce year round. Finally, the following groups will be involved in this project: Delta/Greely
School District (DGSD), the Delta/Greely School Board, DGSD Facilities Committee, Alaska
Department of Natural Resources Forestry, CTA, CE2 Engineers, T.R. Miles Technical
Consultants, Delta Logging and Milling Associates, Salcha Big Delta Soil & Water Conservation
District. USKH (an architecture, engineering, land surveying and planning company).
SEE ATTACHMENT 2.4 PROJECT DESCRIPTION MAP
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 main benefit would be the reduction in fuel cost to the school district. Based on the current
economic spreadsheet, assuming the entire project is funded, the school is estimated to save
around $135,000 in fuel oil cost the first year, and with conservative inflation rates, would save
nearly $6,880,000 over 20 years. The other economic benefit would be that this money would
go to local businesses and stay within the local economy. Further, school district instructional
dollars would once again be able to used for instruction not heating costs.
SEE ATTACHMENT 2.5 FUEL OIL/WOOD CHIPS COST COMPARISON
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 Delta/Greely School District requested $2,868,168.00 to complete Phases 2, 3, and 4 of the
proposed Wood Chip Boiler Heating Project. In 2008 the Delta/Greely School District was
awarded $2 million by AEA. The cost of the project has not changed; we still believe that we
will need the $2,868,168.00 to complete this project successfully. We request reconsideration by
AEA for the remaining $868,168.00 in order to insure successful completion of this project.
The Delta/Greely School District during the 2009 school year worked with the Alaska
Department of Natural Resources Forestry in order to try to secure the $800,000 from stimulus
funds. That proposal was unsuccessful at this time. The Delta/Greely School District is an
R.E.A.A. which means it does not have a tax base or ability to bond for funds.
The requested money will cover the following items that are outlined on the Estimated Project
Cost Summary Attachment: Biomass boiler system, biomass boiler building, biomass project
plumbing and piping costs, mechanical integration, soft costs, chip vans for storage, Project
Manager, and part of a Technology Technician in order to maintain and monitor a paperless/web
based communication system. The DGSD will hire two maintenance people to be the point
people on maintaining and operating the Wood Chip Boiler System. DGSD will also provide in-
kind services from its partner, the Partners for Progress in Delta, a group that trains plumbers,
pipe-fitters, welders, carpenters at both the high school level and the adult level.
SEE ATTACHMENT 2.6 ESTIMATED PROJECT COST SUMMARY
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 5 of 21 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 AEA approved $2million in 2008 – cap set due to Railbelt area
(Summary of funds requested)
2.7.1 Grant Funds Requested in this application. $868,000.00
2.7.2 Other Funds to be provided (Project match) AEA approved $2,000,000.00
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $2,868,000.00
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)
$2,868,000.00
2.7.5 Estimated Direct Financial Benefit (Savings)
SEE ATTACHMENT 2.7 ESTIMATED PROJECT COST
SUMMARY
Current savings are
approximately $135,000 in
the first year and over
$6,880,000 for 20 years.
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 ATTACHMENT 2.7 ESTIMATED PROJECT COST
SUMMARY
$ Currently savings are
approximately $135,000 in
the first year and over
$6,880,000 for 20 years.
All savings realized would
be passed on to
education benefits
including curriculum,
vocational education
programs, student
activities, and salaries
and benefits for teachers
and staff.
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.
Type in your answer here and follow same format for rest of the application. The Delta/Greely
School District will be contracting for a professional engineering firm. Solicitation for this firm
will follow Delta/Greely School District Policy as stated in Delta/Greely School District Board
Policy 7420. The Delta/Greely School District will request Alaska Energy Authority’s assistance
in oversight of this project, specifically someone with wood heating experience. This project
will be managed by the following entities: Superintendent of Delta/Greely School District,
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 6 of 21 10/7/2009
3.1 Project Manager continued
Delta/Greely School District Facilities Committee (this committee is made up of teachers,
administrators, board members and community members who are vetted by the Delta Greely
School Board) – chaired by the Head of M and O, and a Project Manager to be named. The RFP
(Request For Proposal) process will be used for award of the construction contract.
SEE ATTACHMENT 3.1 DGSD BIDDING PROCESS
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.)
Phase 1 Reconnaissance - FEASIBILITY ASSESSMENT FOR WOOD HEATING – T.R.
MILES Technical Consultants, Inc.
Phase 2 Resource Assessment/Feasibility Analysis/Conceptual Design.
Phase 3 Final Design and Permitting
Phase 4 Construction
SEE ATTACHMENT 3.2.1 – FEASIBILITY ASSESSMENT FOR WOOD HEATING
SEE ATTACHMENT 3.2 PROJECT SCHEDULE GANNT CHART
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.)
Phase 1 Reconnaissance – FEASIBILITY ASSESSMENT FOR WOOD HEATING – T.R.
MILES Technical Consultants, Inc completed this study in 2004. Mr. Miles has a firm grasp on
the needs of the Delta/Greely School District and has maintained contact with the district
regarding the status of this conversion. Recently Mr. Miles met with the Superintendent to
review his report and propose where the district should head in light of the current fuel costs.
Phase 2 Resource Assessment/Feasibility Analysis/35% plan set complete. Existing data will be
collected. A geotechnical investigation will be conducted on the side of the proposed bulk wood
heat boiler / wood chip storage building by bringing a truck mounted geotechnical drill rig down
from Fairbanks and drilling at least two holes on the proposed location of the building. The
engineer will gather sample chipped wood fuel from local forests and sawmills to examine for
moisture, handling, and combustion characteristics. A fuel handling system will be developed
that will be suitable for the boiler system. This will be done in collaboration with the local State
Forester and potential wood chip suppliers. The size of the wood-fired boiler will be done to
match to the high school’s heating system. Then a plan view and elevations will be developed of
the building that will house the boiler, fuel handling equipment, and chip storage. The 35% plan
set will be developed and the feasibility report will be completed and submitted to the
Delta/Greely School District, AEA and other parties for review and comment.
Phase 3 Final Design and Permitting After review and comment, the 35% plan will be
developed to 95%, which will include all civil, structural, electrical, process piping, mechanical,
and electrical sheets. The 95% plan set will be submitted to the Delta/Greely School District
Board and Facilities Committee, AEA and other parties for review and comment. After review
and revision, the plan set is submitted to the State Fire Marshal for review, comment, and
approval. Any revisions are made at this time and the plan set is developed to 100%.
Renewable Energy Fund
Grant Application Round 3
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3.3Project Milestones continued
School board approval is obtained for the plan set and the project approved for bid.
Phase 4 Construction A Request for Bid is issued, and a bid award is made. Construction begins
in summer 2010 and is completed by fall of 2010. A contract to supply wood chips is
developed. The wood heating system is commissioned and started up. Final inspection is
performed and a punch list is created and corrected. Training of the School District Staff is
performed for operation and maintenance of the new system. An O&M Manual is completed.
Close out of the AEA grant is performed. Substantial Completion Check List and letter is
received fall of 2010 to complete the grant.
As with all projects it is important to keep the basics in mind: Planning, design, bidding,
construction and occupancy (operation/maintenance). This process is repeated until a facility is
into demolition or adaptive reuse.
SEE ATTACHMENT 3.3– FEASIBILITY ASSESSMENT FOR WOOD HEATING
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.
Personnel
Wood Chip Boiler Project Manager ( to be hired following district policy)
PJ Ford Slack, Ph.D. - Delta/Greely School District Superintendent
Kent Scifres - Director of Maintenance and Operations
Gary Hall Construction Teacher Career Advancement Center
Maintenance Personnel to oversee Wood Chip Boiler Heating System
Students of Delta/Greely School District Construction Trades Program
Delta/Greely School Board
Delta Partners for Progress in Delta, Inc. – is made of the following members: UAF Tanana
Valley Campus, UAF Cooperative Extension Service, Delta Mine Training Center, Alaska
Works Partnership, and Delta/Greely School District
Contractors
Purchasing regulations will dictate this list of contractors as stated in Delta/Greely School Board
Policy 7420.
TR Miles Technical Consultants, Inc.
Concrete Company– local
Mechanical contractor
Electrical contractor
Equipment companies
General Labor
Specialized firm for Wood Heat
Engineers
Construction Manager
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3.4 Project Resources continued
Project Manager
Consultant on Resources: Division of Forestry
JDO Law Firm for contract review
USKH for the Weatherization Project
Stanton Construction for the Weatherization Project
SEE ATTACHMENT 3.1DGSD BIDDING PROCESS
Equipment
Purchasing regulations will dictate these companies as stated in Delta/Greely School Board
Policy 7420.
SEE ATTACHMENT 3.1DGSD BIDDING PROCESS
Government/Agencies
City of Delta Junction
Fort Greely Garrison
UAF/Cold Climate Housing Research Center
Dept. of Environmental Conservation
State Dept. of Public Safety/Fire Marshall
Department of Natural Resources Forestry
Salcha Big Delta Soil & Water Conservation
Services
Firm or firms for Wood Chip Delivery (Logging & Milling Associates & Gilmore Construction
possible)
Technical Providers for Wood Chip Heating System
Extra Maintenance Personnel
The majority of Delta Junction’s community service providers will be utilized throughout the
completion of this project.
Wrigley’s Farm ( Barley Production)
Bid Process listed – Delta/Greely Policy Manual - Board Policy 7420
SEE ATTACHMENT 3.1DGSD BIDDING PROCESS
Delta/Greely School District Personnel Resumes
SEE ATTACHMENT 3.4 PJ FORD SLACK, Ph.D. VITAE
SEE ATTACHMENT 3.4.1 KENT SCIFRES RESUME
SEE ATTACHMENT 3.4.3 GARY HALL RESUME
SEE ATTACHMENT 3.4.4 TOM MILES RESUME
Facilities Committee Members Resumes
SEE ATTACHMENT 3.4.2 FACILITIES COMMITTEE MEMBERS
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 9 of 21 10/7/2009
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
The Delta/Greely School District is applying for a Wood Chip Boiler Heating System not only
because of bio-fuel costs but also to continue to teach our students and community how to
“green” our operations in education. To that end, we will make every attempt to communicate
with respecting the Earth’s resources in mind.
Our Technology Coordinator will help keep the communication for this project open to the
public and in the 21st century. Two web portals will be established. For the project principals,
daily communication will be done through a DGSD web-portal for this project. This portal will
require the principals of the project (Superintendent, Director of Maintenance, Business
Manager, Board Member, Project Manager, Construction Contractor, Design Contractor, and
others during Phase 3 and Phase 4 to communicate. This web portal allows the latest drawings,
meeting notes, key communications, and specifications, as well as other project information to be
available to key team members 24/7 as well as allowing for AEA to monitor project status. We
will also set up a general public website to allow the community and students to stay abreast of
the project. As part of this project email archiving and recording will be planned for.
All principals listed below will be able to check project status and meeting notes through the
web-portal. The project secretary will also help facilitate both electronic and paper
communication.
Daily – Director of Maintenance (Mr. Scifres) and Wood Chip Boiler Heating System Project
Manager
Weekly – Superintendent Ford Slack
Bi-monthly – Delta Greely School board
Monthly – DGSD Facilities Committee, Delta Junction City Council
Quarterly – AEA (electronically or written report as the Grantor desires/requires)
AEA – site visit 3 times during the life of the Wood Chip Boiler Heating System Project
3.6 Project Risk
Discuss potential problems and how you would address them.
1) Timing of bids. Risk – Contractor availability is limited in the Interior of Alaska. Solve – Bid
process to begin Oct. 2009
2) Inflation Costs Risk - With current inflation rates, materials and shipping costs are rising
exponentially in Alaska. Solve – Early engineering of the project will help to contain the cost of
shipping and purchasing materials.
3) Logistics Risk – Missing the bidding season of contractors and materials. Solve – To go out
for bid pre-construction season. Will have a lot more to do with Grantor AEA, this depends on
grant awarding process and Alaska Legislative funding.
4) Construction Lead Time Risk – Specialty system with limited contractors, limited
contractors to fill needs in Alaskan interior. Solve - To avoid missing the bidding season it is
essential to receive this award in a timely manner.
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3.6 Project Risk continued
5) Markets are dynamic and unstable Risk – Ordering of materials or equipment (wood chip
boiler) needs as much lead time as possible. Solve - To avoid a long delay and cost overruns a
timely awarding of this grant will assist in controlling costs.
6) Possible larger contingency costs with inflation then currently calculated. Solve – This one is
very difficult to predict with rising inflation and shipping costs.
7) Wood Chip Fuel Risk – Size of chip and quality can cause maintenance issues. Solve - We
will write a tight contract with our contractor for chip size and quality to be delivered. Supply of
consistently high grade chips in the Delta/Greely area is not an issue.
8) Project Manager Risk – We need a high quality person with Alaska and Wood Heat
experience. Solve - We have been in conversation with two nationally recognized biomass
consulting firms who will assist with finding a qualified project manager.
9) Weather Risk - this is Alaska and the Interior building season could be two days or two
months. Solve - Assure that construction contractor has successful experience building and
completing projects in subzero temperatures. We will also utilize the skills of our high school
construction trades students.
10) Overruns Risk – Build shell and work inside during winter months. Solve - Need
experienced construction contractor who has success completing projects in subzero
temperatures.
11) Wood chip size Risk – needs to be correct size for chipper. Solve - Write a tight contract
with wood chip source to maintain accurate size.
12) Only having one fuel source Risk – We currently have one reliable wood chip delivery
source. Solve - The Forestry and DGSD have actively encouraged other local businesses to
consider wood chips as an industry. There is a possibility that barley could be supplied as a fuel
source by a local farmer. It has come to our attention that there may be one or two other sources
for wood chips or pellets in a 100 mile radius of DGSD project.
13) Insurance Risk - If a school cannot get insurance, it would be difficult to use this method of
heating. Solve - On June 5, 2008, APEI responded that the Bio Mass System is acceptable as
long as adequate engineer, fireproofing and alarm systems were in place.
14). Purchase of Wood Chip Boiler Risk – Supply depends on availability of chips to boiler
systems in place in 2009 and 2010. Solve - The earlier we are awarded the grant the earlier we
can go to bid on the boiler.
Renewable Energy Fund
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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.
FOREST LAND BASE
The Delta Junction School District has several forest land ownerships in the vicinity that could
potentially be used to supply wood for the proposed wood boiler. The land base in the Delta
Management Area is categorized by ownership as follows:
ACRES
463,000 Tanana Valley State Forest Lands
1,237,000 Other Forested State Lands
948,000 Other Non-Forested State Lands
650,000 Military Lands
469,000 BLM Lands
230,000 Native Corporation Lands
130,000 All Private Lands (includes farms, residential lots, homesteads,
native allotments, etc.)
_________
4,127,000 TOTAL LAND BASE
The biggest supplier of timber to the local area is the State’s Forestry Office in Delta Junction.
The State of Alaska, develops timber sales on state lands managed by the Delta Area Office
providing wood for the local sawmills, export markets, firewood, house logs, and private timber
sales. The other land owners listed above have also made timber available.
Private lands could be a significant supplier of wood energy for the school when land is cleared
to develop homes, businesses and farms. Forests cleared for developments on private land has
historically been windrowed and burned or hauled to an approved burning site. The close
proximity of the private lands that surround the school would seem to make it the most feasible
energy source.
The Delta High School Complex estimated energy need is 1,400 to 2,100 tons of wood chips per
year. This roughly equates to 50 to 75 acres of low grade commercial quality forest. This is a
very low quantity in comparison to the potential available. At least twice this amount of forest is
presently being cleared on private lands in the Delta Area in the last 12 months. Even if the
schools needs were 2-3 times more than projected there is more available.
Renewable Energy Fund
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4.1 Proposed Energy Resource continued
The State of Alaska’s timber sale program and it’s estimated sustained yield harvest is
summarized in the “Delta Area Forestry Five-Year Schedule of Timber Sales, Fiscal Years 2008
to 2012” (FYSTS). The report states, “the Delta Area can be expected to support a sustained
yield of 4,873,600 cubic feet of white spruce and 5,412,700 cubic feet of hardwoods on roughly
5,092 acres per year”. There has been an average harvest of 167 acres of commercial timber in
the last 5 years from state lands in the Delta Area. There is an exceeding surplus of wood
available to meet the energy needs of the public school even if the amount was tripled.
SAWMILL RESIDUE
There are presently three (3) small commercial sawmills operating in the Delta Area as a primary
business. Logging and Milling Associates (LMA) is presently harvesting more timber annually
than its competitors, Granite Mountain Alaska Lumber (GMAL), and Delta Lumber (DL). Sawmill
residue may also be available from Glenallen and Tok, but it was not considered for this report.
Each of the local sawmills has logging and sawmill residue in the form of log tops, edgings,
sawdust and planner shavings. None of these residue types make high quality chips but they
could be made into fuel. The total available amount of the residue is roughly estimated to be
about 2,000 tons per year not including limbs. Approximately a third of this residue is sold as
firewood. About 10% is being used in a boiler system at LMA, and the remainder is burned or
discarded. Two pellet mills are under construction in Delta and it is predicted that a third to
100% of the residue could be made into wood pellets for home heating.
The log tops and edgings comprise over 60% of the residue. Both of these could easily be made
into chips but they would have bark on them. The best thing about this fuel source is its ability to
be air dried before being chipped, improving its heating value.
There is a wood chip business in Fairbanks that has expressed interest in supply us with wood
chips. There is also the possibility of wood residue for chipping from a wind generation project
that has cleared many acres of trees in the Delta Junction area.
EXISTING AND FUTURE TIMBER SALES
The timber sale logging contractors have been supplied with multiple timber sales that exceed
near term requirements of the local sawmills. Portions of these timber sales could be used for
the school during the next 2-3 years. Additional timber sales are planned in the state’s FYSTS.
There is presently at least another 1,000 acres of timber sales in various stages of completion
and review to be auctioned in the future. Sales are being planned that could be used specifically
for the school. As long as the state continues to fund the timber staff there will be an ongoing
supply to accommodate the potential market.
SEE ATTACHMENT 4.1.1 DELTA 5 FYSTS 08-12 MAPS
SEE ATTACHMENT 4.1.2 PUBLIC REVIEW OF DELTA 5YR SCHEDULE SPREADSHEET
SEE ATTACHMENT 4.1.3 PUBLIC REVIEW OF DELTA 5YR SCHEDULE NARRATIVE
SEE ATTACHMENT 4.1.4 LOGGING & MILLING ASSOCIATES LETTER
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 13 of 21 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.
The Delta/Greely High School was constructed in ten stages from 1960 through 1986. A
separate heating and ventilation system was provided for each stage of construction. With minor
exceptions, the existing equipment dates back to original construction. The systems have been
well maintained over the years as evidenced by the fact that they are still operational after at a
minimum 20 years and in the most extreme case as long as 50 years.
Attached at the end of this narrative is a plan of the entire school showing the mechanical
spaces and the areas of the school served by each of these mechanical spaces. The dates
used in the labeling of the various additions refer to the date used on the construction drawings
for each of the additions rather than the actual date of construction. Existing control systems
are, for the most part, pneumatic.
1960 Original Classroom Building
1963 Classroom and Multipurpose Room Addition
1966 and 1969 Classroom Additions
1974 Gymnasium Addition
1975 Metal Shop and Wood Shop Addition
1977 Home Economics Addition
1980 Classroom Addition
1980 Art Room Addition
1981 Vocational Education Building
1986 Classroom Addition
SEE ATTACHMENT 4.2 DELTA HS MECHANICAL IMPROVEMENT RECOMMENDATIONS
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 energy currently used by the Delta High School complex is approximately 58,343.7 gallons
of heating fuel per year. The fuel usage for the Delta High School complex would be reduced by
converting to wood as a fuel. The reduction in the sale of heating fuel would be minor for the
local fuel oil distributor. There would be a slight increase in the per gallon cost associated with
the reduced amount of fuel oil purchased by the Delta/Greely School District.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
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Grant Application Round 3
AEA10-015 Grant Application Page 14 of 21 10/7/2009
4.3.2 Existing Energy Market continued
The Delta/Greely School District does not plan to be an energy supplier. The energy currently
used by the Delta High School complex is approximately 58,343.7 gallons of heating fuel per
year. The local fuel distributors have been the recipients of the heating fuel contract. It is
anticipated that there will be a significant reduction in the demand for heating fuel from the local
distributors. We expect the market for wood chips to increase. Market demand for wood chips
may offer additional jobs and opportunities for businesses in the community.
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
A description of renewable energy technology specific to project location: Delta High
School will use a biomass boiler to help heat the school. Wood chips will be made from
timber harvesting in the region and burned in the boiler to heat water which will circulate
through the school to heat the school.
Optimum installed capacity: The optimum boiler size is approximately 50% of the
connected load of the school. Typical load profiles for schools show that approximately
90% of the boiler run hours occur at 50% of the peak load or less. Sizing the boiler at
this smaller size allows the boiler to operate in the medium and high fire range more often
which optimized efficiency and reduces emissions. During the design process, a energy
model of the facility will be developed to determine the final optimum boiler size.
Anticipated capacity factor: The anticipated capacity factor is 0.25 to 0.30. Unlike a
power plant with a consistent base load, a biomass boiler is used to heat a building,
which has a variable load. The amount of heat generated is directly proportional to
outside air temperature. This capacity factor is actually two to three times better than the
existing connected heating equipment.
Anticipated annual generation: The biomass boiler is estimated at 8,700,000,000 Btu per
year, which is approximately 800 green tons of chips.
Anticipated barriers: Some anticipated barriers would be:
1. The distance of this site from the boiler system manufacturers. During construction,
this creates a longer lead time for the boiler to be manufactured and shipped to Delta
Junction. The construction schedule will be closely monitored to make sure this does
not cause any project delays.
2. Access to wood fuel in winter. This will be addressed further in design. The request
for proposal process used to select a wood fuel vendor would also address this.
Basic integration concept: The biomass boiler building would be constructed near where
a future consolidated boiler room will be located. The biomass boiler would simply be
one boiler in the new boiler system. A primary – secondary pumping system would be
utilized to allow the biomass boiler to be the primary boiler and allow the fuel oil boilers to
operate to supplement the biomass boiler in peak heating conditions and/or at other
times when the biomass boiler is not functioning.
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 15 of 21 10/7/2009
4.3.1 System Design continued
Delivery methods: The biomass boiler building would be constructed similar to any
school capital project. The building and systems would be designed by licensed
professionals who will generate construction documents to be bid out to contractors. The
successful contractor would then mobilize and construct the building.
4.3.2 Land Ownership
Identify potential land ownership issues, including whether site owners have agreed to the
project or how you intend to approach land ownership and access issues.
The Delta High School Complex sits on land that is owned by the Delta/Greely School District.
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
All applicable permits will be acquired through design and construction. Currently the only local
permit that we are aware of is to show the construction design to the City of Delta. This permit
has no cost attached and is only to afford the City time to review a project that will be built in a
floodplain area. A Plan Review and Approval to Construct Certificate is required from the
Alaska State Fire Marshall. An air quality permit is not required from the Alaska Department of
Environmental Conservation at this time.
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
Threatened or Endangered species – Does not apply
Habitat issues – Does not apply
Wetlands and other protected areas – Does not apply
Archaeological and historical resources – addressed during construction
Land development constraints – Does not apply
Telecommunications interference – The Wood Heat building will not be higher than that of the
existing school. The only telecommunications antennas nearby are on the Alascom tower, which
is high enough and far enough away from the school to not be affected.
Aviation considerations – less emissions to affect the local aviation concerns
Visual, aesthetics impacts – Does not apply
Identify and discuss other potential barriers – None
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 16 of 21 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.
SEE ATTACHMENT 4.4 Project Cost and Benefit Summary.
The greenhouse costs are not part of this project.
4.4.1 Project Development Cost
Provide detailed project cost information based on your current knowledge and understanding of
the project. Cost information should include the following:
Total anticipated project cost, and cost for this phase
Requested grant funding
Applicant matching funds – loans, capital contributions, in-kind
Identification of other funding sources
Projected capital cost of proposed renewable energy system
Projected development cost of proposed renewable energy system
Total anticipated project cost, and cost for this phase - $2,988,168.00 ($120,000.00 is
Delta/Greely School District cost for 2 Maintenance people attached to the Wood Heat
Boiler System).
SEE ATTACHMENT 4.4.1 ESTIMATE OF PROBABLE COST OF DESIGN AND CONSTRUCTION
Requested grant funding - $2,868,168.00
Applicant matching funds – loans, capital contributions, in-kind Delta/Greely School
District will provide $120,000.00 for Maintenance personnel to maintain the Wood Heat
Boiler System. Partners for Progress in Delta and Delta Construction Trades Program
will lend assistance during the construction phases of this project.
Identification of other funding sources N/A
Projected capital cost of proposed renewable energy system $2,556,168.00
Projected development cost of proposed renewable energy system $189,296.00
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. Consultant
& Manufacturer’s estimates: Decton, Kob, Messersmith, BCT, Means, including 30% increase
for rural Alaska. 10% escalation.
SEE ATTACHMENT 4.4.1 ESTIMATE OF PROBABLE COST OF DESIGN AND CONSTRUCTION
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.)
Total anticipated project cost for this phase – Over a 5 year period, the Bio Mass System
operating costs are $565,080.00 plus an estimated $600,000.00 in extra personnel
salaries and benefits to maintain the system.
Requested grant funding - $2,868,168.00
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 17 of 21 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
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.
Download the form, complete it, and submit it as an attachment. Document any conditions or
sources your numbers are based on here.
See Cost Worksheet at the end of the grant.
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 health benefits of this project relate to cleaner breathable air both inside and outside the
school building. Our current set of boilers and furnaces are neither efficient nor clean emission
producing. This Wood Chip Boiler System will emit fewer particles in the air.
Vocational skills acquired: Delta High School has an exemplary Construction Trades Program.
Every year a number of our students are accepted into apprenticeships. This project offers the
high school and adult students an opportunity to practice and work with professionals during
Phase 3 and Phase 4.
Academic Skills acquisition: Students at Delta High School, New Horizons High School, Delta
Cyber School, and Ft Greely Middle School have an opportunity to determine and report to the
board on the energy savings of this project. Cold Climate Housing Research Center has discussed
adding sensors to various locations in the building to collect data.
Because this project touches so many parts of living in Delta/Greely we also hope other
businesses in the area see this as a demonstration project and come to us for advice and guidance.
It is a great lesson in citizenship and giving back to our community.
SEE ATTACHMENT 5 FUEL OIL/WOOD CHIPS COST COMPARISON
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 18 of 21 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 Delta/Greely School District ( DGSD) Biomass project has the full support of the Delta/Greely
School District and Community. The District‘s Facility committee has already begun discussions
about the technical personnel needs for this project.
The Partners for Progress in Delta is actively looking at ways to expand training to include:
Biomass boilers, biomass testing, plumbing and heating of biomass boilers, electrical inspections
of biomass panels. We believe that this future classes or academies will serve people in the Tok,
Glenellen, and Deltana area to support these new heating systems. DGSD continues to be in
conversation with the Alaska Gateway School District in order to share personnel, equipment,
and knowledge as our biomass systems come online.
Our science teachers at both the high school and middle school are ready to set up a data
collection system. Next fall we hope to have Cold Climate Housing Center come and assist the
secondary students in establishing this system. The data will then be used to project utility costs
for budgeting as well as foundational data for future Capital Improvement projects that the district
might undertake.
Our school district is committed to the long term success of this project. This project is intended
to lead to the establishment of a greenhouse to support edible produce during the winter months.
With Mr. Kent Scifres, our long term facility and maintenance director transitioning to the Project
Manager for the Biomass project, DGSD believes we have designed the optimum infrastructure to
support personnel, the new heating system, and the future biomass heating and gardening
project.
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.
Readiness and Compliance with other grants
DGSD Biomass Project Reconassance: Completed
DGSD Biomass Project Feasibility: Completed
Concept Design: January 2010
Select Boiler Manufacturer and Order Boiler: February 2010
Move Modular Unit and Prepare Pad for building: May 2010
The Delta/Greely School District is on track to begin the Concept Design Phase of the Biomass
Boiler Project. Simultaneously we are exploring ways to hook up a green house to utilize any
residual heat. We have also had three additional inquiries about providing us with wood chip fuel.
One is from the Delta Wind Turbine Project.
The Delta/Greely School District is on track to award the project mechanical and design to a firm
by November 30th 2009. The district is in final negotiations with our Director of Maintenance and
Facilities to assume the role of Project Manager for the Biomass Project. He is planning to retire
Renewable Energy Fund
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Section 7 - READINESS AND COMPLIANCE WITH OTHER GRANTS continued
his current position June 30, 2010 and assume fulltime Biomass responsibilities. Mr. Scifres has
maintained this building for 30 years and his expertise is invaluable. This is critical as Mr. Scifres
has worked with the Delta High School Weatherization Project Manager, Mr. Woodrow
Humphries.
Both men have extensive mechanical experience and will need to work together, oversee two
separate work crews, and assure a successful hook up of the Biomass boiler to the new heating
system at Delta High School. The Delta High School Mechanical Room change and heating
system upgrade must be fully operational prior to attaching the Biomass system. We are
projected to start heating the school using the new system in the Fall 2010.
The Delta High School Weatherization Project and the DGSD Biomass Project are on track to
merge during the summer of 2010. From October 2009 until the spring of 2010 both projects
continue to consult with Mr. Tom Miles of TR Miles Consulting. Mr. Miles has provided expertise
to the school district since we began conversations about biomass. Mr. Miles firm wrote the first
feasibility study which has been included in both grant proposals.
We do require the 868,000.00 dollars originally requested to assure success
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.
See letters of support at the end of the grant.
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. This is a grant request by a public school district. Our district is categorized by the State
of Alaska as an REAA (Regional Educational Attendance Agency) REAA # 15, Delta/Greely
School District. We serve 869 students locally and an additional 300 students statewide,
through Delta Cyber School. Our district has no tax base to draw on and cannot bond for
Capital Improvement projects.
Delta/Greely School District is requesting $2,556,166.00 dollars to cover the design and
construction phases of this project. There will be additional costs borne by the district in the
form of at least two extra maintenance personnel to maintain the Wood Chip Boiler Heating
System, during the months of school operation, 7 days a week and 24 hours a day. These
costs, at today’s negotiated agreement represent a commitment of $120,000.00 in salary and
benefits per year.
The school district has been researching this option since 2003. The Reconnaissance Phase
was completed in 2004 by T.R. Miles Inc. The conversation has continued over the years, as
fuel prices have risen to almost unsustainable levels. Our largest issue is our old heating
system which consists of 8 separate boiler and furnace systems, all past their life. We currently
have a Capital Improvement Plan into the Department of Education and Early Development to
consolidate our boiler and furnace system and relocate them to one mechanical room in the
high school complex. The cost of that project is approximately 10 million dollars. That project, if
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SECTION 9 – GRANT BUDGET Continued
funded, will provide additional support to this project for piping and plumbing needs.
We have located the new mechanical room to support the Wood Chip Boiler System. With
advice from numerous mechanical engineers and also with USKH, an architectural firm, we
believe we have located the wood chip boiler to maximize efficiency, as well as providing a
location where wood chip trucks will not disrupt the current traffic pattern within Delta City
Limits.
We consider the use of our students (both high school and adult) to assist with the design and
construction of the building to house the wood chip boiler as an investment. The Construction
Trade Program assisted in designing their Career Advancement Center, which houses their
program. Under the leadership and expertise of Mr. Gary Hall, many of these students have
been accepted to apprenticeship programs with Alaska unions. This Center is located across
the street from the proposed Wood Chip Boiler Heating System. The students will also learn
about the plumbing and maintenance of this system. That is an investment to the community
and the region at large. Our summer program students come from Glenallen, Tok, North Pole,
and Salcha so we see this as an investment to the interior region.
Delta Greely School District is also committed to sending key personnel and facility committee
members to Darby, MT. and Craig, Alaska, bio mass heating sites, and any other sites that are
recommended. We are also committed, as mentioned above to provide positions to maintain
this system during the year. That commitment may cause the district to fall out of the required
expenditures called 70/30. We have the right to ask for a waiver from that Alaska regulation.
I am sure that this will be granted given that the district has designed a demonstration project
that may be used by other schools in the sub-arctic region. We will also continue working with
the UAF Cold Climate Housing Research Center in order to provide opportunities to collect data
on the efficiency of the system. This will provide our students an opportunity for hands-on work
with a bio mass heating system. This work will assist them in making smarter choices in their
future lives.
See Grant Budget worksheet at the end of the grant.
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 21 of 21 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 PJ Ford Slack, Ph.D.
Signature
Title Superintendent Delta/Greely School District
Date