HomeMy WebLinkAboutSitka CHP City Grant App
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 1 of 32 9/2/2008
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
City and Borough of Sitka (CBS), Alaska
“Providing for today…preparing for tomorrow”
Type of Entity:
Local Government
Mailing Address
100 Lincoln Street, Sitka, AK 99835
Physical Address
100 Lincoln Street
Telephone
(907)747-1808
Fax
(907)747-7403
Email
jimdinley@cityofsitka.com
1.1 APPLICANT POINT OF CONTACT
Name
Jim Dinley
Title
Municipal Administrator
Mailing Address
100 Lincoln Street, Sitka, AK 99835
Telephone
(907)747-1808
Fax
(907)747-7403
Email
jimdinley@cityofsitka.com
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, or
X A local government, or
A governmental entity (which includes tribal councils and housing authorities);
No:
See
attached
cover
letter.
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 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.)
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 2 of 32 9/3/2008
SECTION 2 – PROJECT SUMMARY
Provide a brief 1-2 page overview of your project.
2.1 PROJECT TYPE
Describe the type of project you are proposing, (Reconnaissance; Resource Assessment/
Feasibility Analysis/Conceptual Design; Final Design and Permitting; and/or Construction) as
well as the kind of renewable energy you intend to use. Refer to Section 1.5 of RFA.
Reconnaissance and Resource Assessment/Feasibility Analysis/Conceptual Design for a biomass
fueled heating system.
2.2 PROJECT DESCRIPTION
Provide a one paragraph description of your project. At a minimum include the project location,
communities to be served, and who will be involved in the grant project.
This application seeks funding to conduct a feasibility study on using high efficiency, low
emissions (HELE) biomass heat and power systems for the Sitka Community Hospital and the
proposed adjacent Sitka Community Greenhouse. Specifically, we are following the example of
the system being used in the city of Craig, which is a wood chip fired gasifier burner that
transfers heat via a low pressure hydronic system. This study will be accomplished by
contracting with mechanical engineers who will determine the specific equipment necessary, the
fuel requirements and availability, and the costs and payback period of the project. If this project
is selected by the AEA and approved by the Alaska Legislature, the award recipient will be the
City and Borough of Sitka. The City will contract with the engineers to do the study. Sitka
Community Hospital will provide the engineers with all the data and access to their facilities
necessary for the study. Direct technical assistance regarding the community greenhouse
requirements will be provided by the Sitka Community Greenhouse Committee and other
members of the Sitka Health Summit. The City will be responsible for reporting to the Authority
and providing AEA with the final report.
2.3 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. Include a project cost summary that includes an estimated total cost
through construction.
We are requesting $30,000 from the AEA to be used to contract engineers to perform the
feasibility study. One hundred percent of this award will be used to contract the engineering firm
conducting the study. The firm will pay all of their expenses, including travel and
subcontracting, out of this amount. There are no other monetary contributions. Members of the
Sitka Health Summit, Sustainable Sitka, and the Sitka Community Greenhouse Committee have
been volunteering their time, and will continue to contribute over 20 hours a month of volunteer
labor per project milestone while the study is being done.. (20 hrs @ $20/hr x 5 months =
$2,000.) Thus, the total project cost is $32,000. This grant application was written by community
volunteers.
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Grant Application
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2.4 PROJECT BENEFIT
Briefly discuss the financial benefits that will result from this project, including an estimate of economic
benefits(such as reduced fuel costs) and a description of other benefits to the Alaskan public.
It is our hope that this study will provide the City and Borough of Sitka with information that
shows biomass energy to be technically and financially feasible for these two adjacent facilities.
We will then work to obtain the funding to purchase, install and use this technology, which we
expect will save the hospital and Sitka taxpayers $108,940 a year (at today’s fuel oil price) in
heating and power costs.
This project could serve as a demonstration in cogeneration in Alaska, as a portion of the heat
produced by the biomass hydronic heating system will be used to run a low-temperature Organic
Rankine Cycle (ORC) 200 kW electric generator. This power will be sold directly to the city
electric system to reduce the overall costs paid by the hospital and community greenhouse for
power. Other benefits include reducing the electric load on the city’s electric utility, thereby
freeing up energy for a rapidly growing demand as Sitkans switch from diesel oil and gasoline to
electricity for space heating and transportation. Additionally, the demonstration of the viability
of low-temperature power generation will encourage the implementation of this technology in
other appropriate installations, such the utilization of waste heat created by our fish processing
facilities and hospital laundry facilities.
Overall, the use of biomass could make Southeast Alaska’s economy much more sustainable by
lowering the cost of heating and by purchasing wood products from local producers instead of
importing petroleum products. The demand for bulk wood fuel will encourage pre-commercial
and commercial thinning, both of which provide economic and environmental benefits. This
heating system would have the added benefit of reducing our carbon footprint. Finally, the
establishment of a Community Greenhouse would provide fresh local produce for volunteers and
local food programs, as well as creating therapeutic and educational opportunities for Sitkans.
2.5 PROJECT COST AND BENEFIT SUMARY
Include a summary of your project’s total costs and benefits below.
2.5.1 Total Project Cost
(Including estimates through construction.)
$32,000
2.5.2 Grant Funds Requested in this application. $30,000
2.5.3 Other Funds to be provided (Project match) $2,000 volunteer time
2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $32,000
2.5.5 Estimated Benefit (Savings) $108,940/year
2.5.6 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.)
Sitka Taxpayers will save
$108,940 a year in fuel
costs, and as a result,
increased services at the
hospital.
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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.
The Project Manager is Jim Dinley, the Municipal Administrator of the City and Borough of
Sitka.
The project manager will be assisted by Kerry MacLane, Community Development
Consultant, and a member of the Sitka Community Greenhouse Committee. Mr. MacLane will
be working on a volunteer basis.
The engineering work will be monitored by Tom Marthaller, the Director of Support Services
for Sitka Community Hospital.
Biomass data will be reviewed and assessed by the Alaska Wood Utilization Research and
Development Center, Sitka.
The terms and conditions of power purchased by the city utility will be determined by the staff of
the Sitka Electric Department.
Resumes and/or CVs for these individuals are attached to this application.
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.)
May, 2009: Legislature Approves Project, funds are released. Grant agreement is signed.
Engineering firm is contracted to perform the study.
June, 2009: Heating requirements are determined and approved by the hospital staff and
the Community Greenhouse Committee.
August 2009: Bulk fuel/ Biomass availability, storage and transport are researched.
Research results are reviewed and approved by the Alaska Wood Utilization Research
and Development Center and the Community Greenhouse Committee.
September 2009: The conceptual design for equipment and installation is completed,
reviewed and approved by the hospital administration, and the Community Greenhouse
Committee.
October 2009: Detailed financial and operational viability is compiled along with the
final feasibility report.
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3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them.
1. May, 2009: Funding is approved by the state legislature. If the contract is signed with
engineering firm and approved by the Project Manager, the project proceeds.
2. June, 2009: If the needs assessment is completed and approved by hospital administration
and community greenhouse committee, the project proceeds..
3. August 2009: If the Biomass study is completed, reviewed and approved the project
proceeds.
4. July 2009: If the conceptual design is completed, reviewed and approved the project
proceeds.
5. October 2009: If the financial and operational viability is completed and included in the
final feasibility report, and the report is reviewed and approved, the project is completed.
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.
It is anticipated that our lead engineer will be Chris Combs, PE, proprietor of Combs
Engineering, Sitka, AK. Mr. Coombs has an extensive background in mechanical
engineering, has been a resident of Alaska since 1994, and has volunteered his services
for a variety of community projects. He has completed successful contracts for the City &
Borough of Sitka, the Sitka School District, the Sitka Pioneer Home, Mt. Edgecumbe
High School, SEARHC Hospital, and the Sitka Community Hospital. Additional firms or
individuals may be subcontracted by Combs Engineering. Examples of parties
knowledgeable of biomass applications in the Southeast include Daniel Parrent, Woods
Utilization Specialist for the Juneau Economic Development Council and Tom Miles of
T.R. Miles Technical Consultants, Inc. Daniel Parrent’s research on biomass heating was
key to the composition of this grant application.
Additional expertise will be provided by:
The Sitka Community Greenhouse Committee, whose members include representatives
of the Sitka Health Summit, SEARHC, the USFS, Sustainable Sitka, the Sitka
Conservation Society, the Sitka Global Warming Group, Alaska Longline Fisherman’s
Association, Sitka Assembly members, fishermen, charter boat and lodge operators,
gardeners, members of the Sitka Farmers Market, and members of the community at
large.
The Wood Products Utilization Lab, Sitka
The Federal Fuels for Schools program
Chena Hot Springs Resort/Your Own Power.com
No-cost technical information will be obtained from the following non-profit organizations:
The Alaska Center for Energy and Power, Renewable Energy Alaska Project (REAP), the
Alaska Center for Appropriate Technology (ACAT), the Sitka Conservation Society, the
Cheyenne Community Greenhouse and Botanical Garden, the National Center for
Appropriate Technology ( NCAT), and the Appropriate Technology for Rural Area
(ATTRA).
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3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
After the grant agreement is signed, the Project Manager will send a copy of the signed contract
between the City and Borough of Sitka and the engineering firm selected to the Authority. It is
anticipated that this first milestone will be completed by the end of May, 2009.
For the following four months of this study, the engineer, and representatives of the Sitka
Community Hospital and the Sitka Community Greenhouse Committee will meet with the
Project Manager at the end of each month. The Project Manager will report to the Authority
after each of these meetings. At the conclusion of the project, the Project Manager will submit a
final report along with the feasibility study itself.
3.6 Project Risk
Discuss potential problems and how you would address them.
Conducting this study is considered to be a low-risk activity. Parties that inspect the hospital’s
boiler room and basement will be accompanied by appropriate hospital staff.
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 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 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.
Requirements/Phase of Project/History of Project
The City and Borough of Sitka has defined how we will meet the requirements of project
management, schedule, milestones, resources, communication and risk, as per Section 2 of
the RFA, in the preceding questions.
We have chosen to begin by rolling the Phase I (Reconnaissance) and Phase II (Feasibility
Analysis/Resource Assessment/Conceptual design) levels together. We have elected to do
so as sufficient reconnaissance has been presented at our doorstep in the form of nearly
identical and highly successful projects in neighboring Southeast communities. These
projects have all been funded by the Authority.
Work on this project began this spring at the Sitka Community Health Summit.
(www.sitkahealthsummit.org). This is an annual conference at which Sitka’s two
hospitals, health care providers and community leaders collaborate to provide a higher
quality of health care for the community. The two primary goals set at the Summit this
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year were to increase the amount of locally produced healthy food in Sitkans diets and
create a related vibrant community center: a Community Greenhouse. A committee was
formed to bring these projects forward. New gardens were started as well as a
collaborative “Fellowship Farm” at St. Peters Episcopal Church. Sitka’s first Farmers
Market experienced 3 markets that surpassed all expectations, with local produce and fish
being sold out and the demand for more vendors and products exceeding supply. The
committee selected the site of the former hospital as their first choice for the location of
the Sitka Community Greenhouse. Faced with the dual challenges of peak oil and global
climate change, the committee investigated biofuels for heating the greenhouse.
Engineers presented with the goal of heating a greenhouse with biomass, adjacent to a
hospital (that is experiencing skyrocketing fuel costs) advised the committee to use the
opportunity to provide heat to the hospital as well. At the Southeast Wood Energy
Workshop, held at the end of October in Sitka, we were presented with operating
examples of biomass heating and power systems that could be applied to our needs. Also
at the workshop, Sitka Utility Director Charlie Walls was able to connect committee
members with a qualified engineer who agreed to take on the feasibility study. Thus, the
quest for establishing the Sitka Community Greenhouse has evolved into this grant: An
application for a study and design of a system that can heat both the greenhouse and the
hospital.
Energy Resources Available/Pros and Cons
At the recent Southeast Alaska Wood Energy Workshop, representatives of the city of Craig
shared their success with a wood chip fired boiler system that is providing economical heating for
two city buildings and a school swimming pool. It was estimated that the waste from the milling
operations there had a backlog of wood chips and hog fuel sufficient to heat their schools for over
40 years. Barge shipments of 400 tons each from Southeast communities like Craig, on Price of
Wales Island, may be the initial source of bulk fuel for this project.
The long-term sustainable source of bulk fuel will come from thinning local stands of second
growth timber. There are at least 437,000 acres such second growth in the Tongass National
Forest (TNF). Nearly 42% of all TNF second growth stands lie on gentle ground (slopes that are
less than 35%) and within 800 feet of an open road, which would make them suitable for ground
based, mechanical harvesting. 27,000 acres of these are in need of pre-commercial thinning. The
products of pre-commercial thinning is suitable for little else than chips for biomass fuel or pulp.
Slash from commercial thinning can also be used as biomass
The USDA Forest Service owns the majority of forested land surrounding Sitka. Smaller
parcels are owned by the City and Borough of Sitka, Alaska Mental Health Trust Land Office,
The Shee Atika Group, Sealaska Corporation, University of Alaska, and various private owners.
Since 1950, nearly 53,000 acres of timber were harvested in the Sitka Ranger District. In a recent
feasibility study for Sitka’s Hames Athletic and Wellness Center, the Forest Service predicted
that 80 acres of thinning per year would support the wood burning needs of the Center. The
Forest Service has been actively engaged with the community in the effort to develop wood
resources as an alternative energy resource.
Thinning of these second growth stands, which are largely the result of clearcut harvests that
supplied the now-defunct pulp mill, has four primary benefits: Prolonging understory vegetation,
reducing competition between trees, increasing growth rates and improving wildlife habitat.
Today’s EPA-regulated high efficiency, low emissions biomass burners create less pollution than
diesel boilers and have a much smaller carbon footprint, as they replace high-impact petroleum
fuel.
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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.
Sitka Community Hospital is heated by two Cleaver Brooks water tube oil-fired high pressure
steam boilers upgraded in the year 2000 that also provide domestic water heating and steam for
the sterilizing unit. These units cycle and share duty from high fire to low fire providing 2
million BTU per hour. Two of the original 1983 oil fired low pressure boilers remain on site to
provide heat in case the newer boilers go off- line. Electricity is purchased from the city electric
utility. A back-up 400 KW diesel-fueled generator is operated during the rare power outage for
electric needs and 8 hours a month as required by law. Efficiency of this integrated system is
determined as a ratio of steam production to total boiler fuel consumption at 79% when first
installed. The efficiency curve on this boiler design is the same on high and low fire and if
maintained properly will not decrease over the life of the boiler.
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 hospital currently derives 100% of its space and water heating from two water tube oil-
fired steam boilers. 68,000 gallons of diesel are year are purchased from the local distributor at
the current bulk rate of $4.40/gallon for an annual cost of approximately $300,000. The hospital
currently purchases 93.5% of its electricity from the city utility at $.075/kWh for an annual cost
of $18,000. The hospital produces the remaining 6.5% of its electricity by means of an on-site
diesel-fueled generator (at $4.40/gallon for an annual cost of $1,800 (at a consumption rate of 5
gal. /hour). The energy requirements of the proposed Sitka Community Greenhouse will be
determined during the course of this feasibility study.
Approximately 25% of the energy used in Sitka is in the form of electricity and 75% is derived
primarily from petroleum products. Virtually all electricity is delivered by the city electric utility.
There are no private power producers. Approximately 99% of the electric power (113 mWh) in
Sitka is derived from two hydro plants at Blue Lake and Green Lake. When electric demand
exceeds supply, or in the event the hydroelectric sources are interrupted, inefficient diesel
generators are employed, making up the remaining 1% of the power used in Sitka.
Of the non-electric energy consumed in Sitka, 42% comes from #2 fuel oil, 13% from #1 fuel
oil, 17% from gasoline, and 3% from propane and/or wood. Approximately half of this energy is
used for space heating and half is consumed by motor vehicles for surface transportation and by
marine vessels.
As the price of petroleum products rises, homes and businesses are switching from diesel to
electric heat for space heating. Simultaneously, the Coast Guard, National Park, City, and a
handful of private citizens have purchased electric vehicles or converted gasoline powered
vehicles to electricity. These trends are likely to continue. The City Electric Department
“acknowledge[s] the expected conversion to electric space heat in the community as a result of
very high fuel oil prices. In addition, it is expected that in a few years there could be a number of
electric vehicles operating in Sitka. As a result, an alternative high load growth case was
developed that includes the energy requirements for electric vehicles”. If 100% of Sitka’s energy
were to be supplied by electricity, power production would have to increase by 500%.
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Two hydroelectric projects are in the planning stages. The expansion of the Blue Lake dam
should increase electricity production by 25% in about ten years. This project is well underway.
The development of a new hydroelectric dam at Takatz Lake, 23 miles east of Sitka, could almost
double Sitka’s present electric generation, but the cost and distance from Sitka make the
development of the project uncertain.
This project would replace approximately 70% of the diesel being used to heat the hospital
with biomass fuel and avoid the need for additional diesel use to heat the proposed adjacent Sitka
Community Greenhouse. The ORC power generator would reduce the load on the electric utility
and demonstrate the viability of low-heat power generation.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
Approximately 25% of the energy used in Sitka is in the form of electricity delivered by the
city electric utility. The ability of the utility to supply the electric needs of Sitka is dependent
upon how much of the current petroleum-derived energy is replaced with electric power, which is
directly related to the cost and availability of oil products. Greater energy, economic, and
environmental sustainability can be realized by diversifying Sitka’s energy portfolio. This project
will demonstrate the viability of such diversification by replacing imported fuel with locally
produced biomass and by co-generating a modest amount of electric power.
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
This application seeks to determine the feasibility of using high efficiency, low emissions
(HELE) biomass heat and power systems for the Sitka Community Hospital and the proposed
adjacent Sitka Community Greenhouse.
Sitka Community Hospital is centrally located, near the community’s schools and the confluence
of our three “neighborhoods”: Downtown, Sawmill Creek Road, and Halibut Point Road. The 15-
year old, hospital is a two story tall concrete structure that occupies 45,000 square feet. Directly
adjacent to the hospital is an 11,000 square foot “T” of what appears to be a concrete slab. This is
actually the former foundation of the old Sitka Community Hospital, which was demolished when
the new hospital was built. The foundation houses a full basement (complete with the old boiler
system), which is connected underground to the new hospital. The Sitka Community Greenhouse
Committee is in the beginning stages of developing a community greenhouse that would occupy
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the majority of the 11,000 square foot surface and we are proposing to locate the biomass burner,
ORC generator, control systems, and perhaps some bulk fuel storage in the old basement. Hot
water will be piped over to the new hospital’s boiler room, which is at the same level as the old
basement. Hot water will also be piped up into the community greenhouse, and warm air from
the boiler room will also be utilized in the greenhouse, and for drying the bulk fuel. The ORC
generator will tie directly into the utility grid as a producer, as will the community greenhouse, as
a consumer.
We anticipate using a woodchip-fired system similar to that being employed by the community of
Craig, Alaska. Their Chiptec system is fully automated and is mechanically and electronically tied
into the preexisting boiler and control systems.
While the heating and power systems we seek to employ are proven technologies with local
examples and expertise to draw on, the availability and storage of this bulk fuel could be
problematic. Space on the hospital campus is very limited and there is already a shortage of
parking spaces. The feasibility study will clarify the availability and cost of wood chips, which are
generally stored outside and delivered to a hopper adjacent to the burner with 50% moisture
content. Heat from the burner is used to reduce the moisture content to between 20 and 30%,
depending on the system requirements. We will have to locate off-site bulk storage and design on-
site storage for the 1-2 dump truck loads of chips that would be delivered almost daily. It is our
hope that our hopper will be located in the existing 11,000 square foot basement, adjacent to the
burner.
Our integration concept is again based on the Craig example. Hot water will be piped from the
wood chip hydronic system into the hospital’s existing heat exchange system. This will reduce the
amount of time the hospital’s high-pressure boilers will have to cycle from low to high. It will not
affect the existing heat or domestic hot water delivery systems. The electronic controls for the two
systems will be integrated into a graphic interface system. In the community greenhouse, new
supply lines will be run through beds of soil and radiators for space heating. The ORC power
generator will be tied directly into the existing utility grid and not be interconnected with the
hospital or greenhouse eclectic systems.
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 City and Borough of Sitka own the hospital building and land that comprises the hospital
campus, including the future site of the Sitka Community Greenhouse. The hospital is an
Enterprise Fund and as such is managed by a separate governing board. The City Assembly will
have final approval on the installation of any equipment and the lease and/or use of the land.
4.3.3 Permits
Provide the following informationas 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
We will specify that the engineering firm contacted to perform the feasibility study will identify
the permits required, including electrical, plumbing and building permits.
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4.3.4 Environmental
Address whether the following environmental and land use issues apply, and if so how they will
be addressed:
Threatened or Endangered species
Habitat issues
Wetlands and other protected areas
Archaeological and historical resources
Land development constraints
Telecommunications interference
Aviation considerations
Visual, aesthetics impacts
Identify and discuss other potential barriers
The heating and power plant that is the focus of this application is to be located below ground in
an existing basement structure thereby avoiding most potential environmental hazards. The waste
products produced are zero-visibility, EPA-approved smokestack emissions, and small quantities
of wood ash (~5 gallons/week) that can be composted at the nearby community garden.
4.4 Proposed New System Costs (Total Estimated Costs and proposed 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
Based on the Craig model, we anticipate that the cost of this project will be between 1.0 and 1.5
million dollars. We are requesting $30,000 for a feasibility study at this time. Of that we are
contributing $2,000 of in-kind matching funds.
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.
Total anticipated project cost for this phase
Requested grant funding
According to estimates made in Wood Specialist Dan Parrent’s Preliminary Feasibility
Assessment for High Efficiency, Low Emission Wood Heating in Stika, Alaska , the operating,
maintenance and repair (OM & R) costs could total approximately $25,500 yearly. Using the
value of avoided diesel fuel of a $209,440, less the estimated cost of wood chips for fuel of
approximately $75,000 and the OM& R costs of $25,500 the estimated savings to taxpayers and
the hospital would be $108,940.
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This is a preliminary estimate that will be greatly refined as a result of the feasibility study. This
figure does not include the cost savings for heating the proposed Sitka Community Greenhouse or
the electrical usage offset from the sale of excess power generated back to the utility.
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
It is anticipated that the Sitka Electric Utility will be the customer for the 200 kWh produced by
the cogeneration component of the biomass burner. This same power generator produces 1.5
million kWh per year at Chena Hot Springs Resort. The value of electricity to the Sitka Electric
Department varies, depending on demand and if the power is being produced from hydro or
diesel. The rate the utility sells power to the hospital at is $.075/kWh, multiplied by 1.5 MkWh,
equals $112,500.
The feasibility study will define the payback period for this project.
4.4.4 Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
The completed cost worksheet is attached to this application.
4.4.5 Business Plan
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.
This study will determine the best method of operating the system. Most likely the exiting
hospital maintenance staff will add burner/generator maintenance to its daily routine as it will be
tied into their existing computerized monitoring system. The project will not significantly alter
the hospital’s existing business structure. It is likely that the hospital and the non-profit
organization operating the Sitka Community Greenhouse will enter into a Memorandum of
Understanding regarding the use, maintenance and eventual replacement of the system.
4.4.6 Analysis and Recommendations
Provide information about the economic analysis and the proposed project. Discuss your
recommendation for additional project development work.
The feasibility study will define the economic analysis of this project.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 13 of 32 9/3/2008
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 avoided cost of ownership)
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
Potential annual fuel displacement (47,600 gallons a year of diesel fuel @ $4.40/gal) over
the lifetime of the wood chip burner system (20 years) = 952,000 gallons. Annual savings
(avoided fuel minus the O&M and biofuels costs) are $108,940, which equates to
$2,178,800 in savings over the life of the project.
Anticipated annual revenue from power sales: $112,500
Potential additional annual incentives: unknown
Potential additional annual revenue streams: unknown
Non economic public benefits to Alaskans from this project include improved care at the
community hospital, increased production of healthy locally grown food, therapeutic and
educational opportunities at the community greenhouse, improved forest health and
wildlife habitat from thinning for biomass.
SECTION 6 – GRANT BUDGET
Tell us how much your total project costs. Include any investments to date and funding sources,
how much is requested in grant funds, and additional investments you will make as an
applicant.
Include an estimate of budget costs by tasks using the form - GrantBudget.xls
The cost of this feasibility study is $32,000. We are requesting $30,000 from the Authority and
$2,000 of in-kind consulting is being provided by members of the Sitka Community Greenhouse
Committee. Members of this committee have already volunteered over 40 hours researching
biomass, attending workshops and meetings, and writing and reviewing this grant application.
The study is designed in five parts, each with its own milestones, deliverables and decision
points. It is suggested in this application that the contract be awarded in equal segments
according to these five deliverables. However, the actual design of the contract will be at the
discretion of the Project Manager, Municipal Administrator Jim Dinley.
This grant application was prepared by Kerry MacLane
(907) 752-0654, maclanekerry@yahoo.com
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 14 of 32 9/3/2008
SECTION 7 – 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 6.
D. An electronic version of the entire application per RFA Section 1.6
E. Governing Body Resolution per RFA Section 1.4
Enclose a copy of the resolution or other formal action taken by the applicant’s
governing body or management that:
- authorizes this application for project funding at the match amounts indicated in
the application
- authorizes the individual named as point of contact to represent the applicant for
purposes of this application
- states the applicant is in compliance with all 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 Jim Dinley
Signature
Title Municipal Administrator
Date November 7, 2008
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 15 of 32 9/3/2008
Attachments
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 6.
D. An electronic version of the entire application per RFA Section 1.6
E. Governing Body Resolution per RFA Section 1.4
F. Project Partners
G. Sitka Electric Load Forecast (by Charlie Walls)
H. Sitka Non-Electric Energy Use (by Charlie Walls)
I. Sitka Energy Demand (by Dan Parrent)
J. Cheyenne Community Greenhouse/Botanic Gardens Fact Sheet
K. Chiptec Biomass Gasifier Unit in Craig, AK
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 22 of 32 9/3/2008
B. Application Cost Worksheet
1. Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability. Wood chip biomass fuel 2000 to 3000 tons/year
available by barge from Craig and other S.E. towns
and eventually from local thinning.
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
2. Existing Energy Generation
a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank)
i. Number of generators/boilers/other One diesel generator
ii. Rated capacity of generators/boilers/other 400 kWh
iii. Generator/boilers/other type
iv. Age of generators/boilers/other Not known
v. Efficiency of generators/boilers/other Not known
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor $24,000/year for heat boilers and generator
ii. Annual O&M cost for non-labor ~$300,000/year for fuel for heat boilers and generator
c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the
Railbelt grid, leave this section blank)
i. Electricity [kWh] 38,400 kWh/year
ii. Fuel usage
Diesel [gal] Unknown
Other Federal licensing requires that the emergency generator be run 8 hrs/month
iii. Peak Load Unknown
iv. Average Load Unknown
v. Minimum Load Unknown
vi. Efficiency Unknown
vii. Future trends Unlikely to change
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] 68,000 gal/year for both heat and energy
ii. Electricity [kWh] 240,000 kWh/year
iii. Propane [gal or MMBtu] 0
iv. Coal [tons or MMBtu] 0
v. Wood [cords, green tons, dry tons] 0
vi. Other o
1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden
Valley Electric Association, the City of Seward Electric Department, Matanusk a Electric Association and Anchorage
Municipal Light and Power.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 23 of 32 9/3/2008
3. Proposed System Design
a) Installed capacity Primarily for heat generation at 2.5 million Btu with 200
kWh generator
b) Annual renewable electricity generation
i. Diesel [gal or MMBtu]
ii. Electricity [kWh] 1.5 million kWh/year
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons] Between 2.5 and 5.5 green tons/day
vi. Other
4. Project Cost
a) Total capital cost of new system Feasibility study needed.
b) Development cost $30,000
c) Annual O&M cost of new system Feasibility study needed.
d) Annual fuel cost Feasibility study needed.
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity Unknown
ii. Heat Heat and steam generation: 47,600 gallons/year of diesel fuel. This is based
on a 70% reduction in fuel use for the hospital.)
iii. Transportation 0
b) Price of displaced fuel $209,440 at today’s city rate of $4.40/gal.
c) Other economic benefits Purchase of wood chips from local sources replacing
imported fuel. Demonstration of renewable energy as
a “green attraction”. Provides a market for local
thinning and chipping work.
d) Amount of Alaska public benefits $108,940 savings from fuel costs can be redirected
into patient services at the hospital.
6. Power Purchase/Sales Price
a) Price for power purchase/sale 7 ½ cents per kWh x 1.5 MkWh = $112,500/year
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio Feasibility study needed
Payback Projected at less than 10 years.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 24 of 32 9/3/2008
C. Grant Budget Form per application form Section 6.
(Print Excel document SitkaGrantBudget and paste it below this heading…may
need to be reduced to fit on the page.)
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 25 of 32 9/3/2008
D. An electronic version of the entire application per RFA Section 1.6
A CD has been enclosed with this application packet.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 26 of 32 9/3/2008
E. Governing Body Resolution per RFA Section 1.4
Print PDF (Grant letter.pdf) and paste here.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 27 of 32 9/3/2008
F. Project Partners
Sitka Health Summit - www.sitkahealthsummit.org
SEARHC - www.searhc.org
The Federal Fuels for Schools program- www.fuelsforschools.info/
Chena Hot Springs Resort/Your Own Power.com - www.yourownpower.com
Sitka Conservation Society - http://www.sitkawild.org/
Sitka Global Warming Group - http://www.sitkaglobalwarming.org/
City and Borough of Sitka, Public Works Department and Electric Department -
http://www.cityofsitka.com/
Sitka Woods Utilization Center - http://www.fs.fed.us/pnw/sitka/about/
Tongass Round Table - www.tongassfutures.net/
No-cost technical information will be obtained from the following non-profit organizations:
The Alaska Center for Energy and Power, Renewable Energy Alaska Project (REAP), the
Alaska Center for Appropriate Technology (ACAT), the Sitka Conservation Society, the
Cheyenne Community Greenhouse and Botanical Garden, the National Center for
Appropriate Technology ( NCAT), and the Appropriate Technology for Rural Area
(ATTRA).
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 28 of 32 9/3/2008
G Sitka Electric Load Forecast
Print PDF Sitka Electric Energy 1973-2030 and paste here.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 29 of 32 9/3/2008
H. Sitka Non-Electric Energy Use
Print PDF Estimated Petroleum Use in Gallons and paste here.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 30 of 32 9/3/2008
I. Sitka Energy Demand (by Dan Parrent)
Print PDF Sitka Energy Demand and paste here
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 31 of 32 9/3/2008
J. Cheyenne Community Greenhouse/Botanic Gardens Fact Sheet
Print PDF Cheyenne Factsheet and paste here
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 32 of 32 9/3/2008
K. Gasifier Heating Unit in Craig, Alaska
Chiptec Phoenix-Series Gasifiers
Medium scale close-coupled gasifiers & boiler systems
from 1.5 to 40 million Btu/hr
Versatile, convenient, packaged systems
Can utilize wood fuel from 6% MC to 60% MC (wet basis)