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HomeMy WebLinkAboutUAF Statewide Biomass Application--- Renewable Energy Fund Grant Application Application Forms and Instructions The following forms and instructions are provided for 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/REFund.html The following application forms are required to be submitted for a grant recommendation: Grant Application GrantApp.doc Application form in MS Word that includes an outline of Form 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 Costworksheet.doc Summary of Cost information that should be addressed Worksheet by applicants in preparing their application. Grant Budget GrantBudget.xls A detailed grant budget that includes a breakdown of Form costs by task and a summary of funds available and requested to complete the work for which funds are being requested. Grant Budget GrantBudgetl nstr.pdf Instructions for completing the above grant budget form. Form Instructions • 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 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. • 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. AEA 09-004 Grant Application Page 1 of 15 9/2/2008 I~)ALASKA ~ ENERGY AUTHORITY SECTION 1 -APPLICANT INFORMATION Name (Name of utility, IPP, or govemment entity submitting proposal) University of Alaska Fairbanks Type of Entity: University/State entity Mailing Address Physical Address P.O. Box 757140 172 AHRB Renewable Energy Fund Grant Application University of Alaska Fairbanks, Fairbanks, AK 99775 University of Alaska Fairbanks, Fairbanks, AK 99775 Telephone Fax Email (907) 474-7083 (907) 474-6567 ffcel@uaf.edu 1.1 APPLICANT POINT OF CONTACT Name I, Title Carol E. Lewis I Dean and Director I School of Natural Resources and Agricultural Sciences Agricultural and Forestry Experiment Station Mailing Address P. O. Box 757880 University of Alaska Fairbanks, Fairbanks, AK 99775-7880 Telephone Fax Email (907) 474-7301 (907) 474-5506 fyosp@uaf.eduP.O. Box 757880 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 A local government, or X A governmental entity (which includes tribal councils and housing authorities); Yes 1.2.2. Attached to this application is formal approval and endorsement for its project by its board of directors, executive management, or other governing authority. If 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.) AEA 09-004 Grant Application Page 2 of 15 9/3/2008 I~)ALASKA ~ ENERGY AUTHORITY SECTION 2 -PROJECT SUMMARY Provide a brief 1-2 page overview of your project. 2.1 PROJECT TYPE Renewable Energy Fund Grant Application 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 ener:qy you intend to use. Refer to Section 1.5 of RFA. Reconnaissance; Resource Assessment/Feasibility Analysis. The project is a reconnaissance of agricultural and forestry biomass availability in Alaska; a resource assessment of Alaska agricultural bioenergy crops and standing forest biomass for use as biofuels, and afeasibility and economic analysis of use of agricultural crops and standing forest biomass as biofuels. 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. The project addresses the availability, quality andfeasibility of sustainable, economic use of agricultural andforestry biomass for bioenergy in Alaska. This must be considered before the myriad of biofuel projects proposed & envisioned can move forward, and before existing, commercially available technologies that use biomass to produce energy for heat, fuel, & power can be most effectively, and most successfully, deployed. The goal of the project is to 1) assimilate existing information on standing forest and agricultural crop biomass in Alaska, 2) conduct research and demonstration projects addressing agricultural bioenergy crop varieties and crop management and addressing harvest methods in preparation for natural and managed regeneration in mixed, single-aged forest stands, and 3) determine the biological, physical, and economic feasibility of using Alaska agricultural energy crops and existing forest stands for biomass as biofuels. The impetus for the study is the biomasslcoal-to-liquids plant proposedfor the Fairbanks area of interior Alaska, alld its needfor commercial/industrial-scale volumes of biomass fuel stocks. However, the study will have major statewide application as it will serve as the basis for all agricultural and forestry biomass-based energy projects; the greatest number of which are being proposedfor rural and village communities. Work will take place in Fairbanks and Palmer, Alaska. Project cooperators are the School of Natural Resources and Agricultural Sciences(SNRAS) and the Agricultural and Forestry Experiment Station(AFES) at the University of Alaska Fairbanks(UAF) (project primary/agricultural energy crops and forest biomass), Fairbanks Economic Development Corporation(FEDC) (logistics, data support, and information dissemination), and the Alaska Division of Forestry (forest biomass, and harvest, transport, and storage technologies). 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. The amount of funding requested from AEA is $454,828 over a period of 2 years. The only funding requested for a senior participant is for 3months each year for the project wood chemist. Afield technician is budgetedfor12 months over the period of the grant, and one graduate student is included to assist in the economic analysis. All travel is within Alaskafor any necessary field work. Funds are requested for laboratory supplies for biomass chemical analysis andfencingfor the bioenergy crop studies. There a two sub-awards. One is to FEDCfor logistics support, data compilation, publication preparation, and public information dissemination. Another is to the Alaska Division of Forestry for synthesis of information on AEA 09-004 Grant Application Page 3 of 15 9/3/2008 Renewable Energy Fund G rant Application forest inventory, best management practices, regeneration, forest harvest methods and equipment, transportation and potential processing, and on and off site storage andfor the portion of the research/demonstration projects that address harvest methods and land preparation. The University of Alaska AFES will lever its federal formula funds that it receives for applied research in agriculture (Hatch Act) and forestry (McIntire-Stennis Act) pursuant to its mission as a central component of UAF, the State's land-grant university, to perform applied research that is relevant to the State o./'Alaska and supports its economic development and quality of life of its residence against any grant funds receivedfrom AEA. The AFES will also lever funds receivedfor wood chemistry research through a special USDA grant "Wood Utilization Research" against the AEA grant funds. Researchers involved in the project are involved in energy-related crop and forestry work and will only require operating support and either no or only partial salary support. The Alaska Division of Forestry is presently conducting aforest inventory of the Tanana Valley State Forest, encompassing approximately 1.8 million acres in the interior of Alaska in the middle and upper Tanana Basin. The project is funded with state general fund monies. Forestry will contribute all of this information to this research project. It will also lever all information that is gatheredfrom the biomass inventory being conducted on the TokArea in the community of Tok. These efforts are underway to determine the per acre volume of biomass available in a variety of timber types. Work is being conducted by state Wildland Fire and Resource Technicians under the direction of the Tok Area Forester, leff Hermanns. All work is being done in accordance to the guidelines and parameters established by Dr. lingjing Liang, Assistant Professor of Forest Managem.ent, and Research Assistant Tom Malone of the University of Alaska Fairbanks. FEDC will make available to this project the prelimil1.(ll)! woody biomass assessment embodied in the Interior Issues Council's 2007 Cost of Energy Taskforce Fairbanks Energy Business Plan and all other pertinent information gathered in pursuance of its prOlnotion of the Valued-Added Forest Products industl)!. It will also lever the results of the Biomass/Coal-to-Liquids Pre- feasibility & Engineering study. FEDC personnel involved in the project are involved in ongoing energy project work and will require operating support and either no or only partial salary support. 2.4 PROJECT BENEFIT Briefly discuss the financial benefits that wi/! 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. Currently, there are a nUlnber of biOlnass-to-energy projects functioning or under consideration across Alaska, and it is expected that ujJwards o.f half the projects seeking funding under the Renewable Energy Grant FUlul program will be same. However, there is currently no "answer" to the above discussion point for Alaska agricultural energy crops and forest biomass that are projectedfor biofuel use; the information is either scattered and not organized in a manner that enables quantifiable answers to be provided to those who have an intense interest in harvesting, producing, and using biomass for fuel, or is simply unavailable. Available Informatioll Some information is available about Alaska's energy biomass but it is not assembled in one data base: a. Forest inventory for parts of Alaska 1. Type potentially fro 112 Division of Forestry inventory 2. Volume of economically viable species for commercial timber, but timber AEA 09-004 Grant Application Page 4 of 15 9/3/2008 Renewable Energy Fund Grant Application inventory may not provide accurate estimate of potential bi01nass for energy feedstocks b. Crop inventory for Alaska 1. Grain and grass crops -we know how much is produced and can estimate residues that may be available for energy feed stocks. 2. Woody crops -none are currently grown as crops in Alaska and we have only very limited estimates on potential productivity under intensive management. We have limited estimates of standing biomass in non-intensively managed fields. c. Limited chemistry for forest types -laboratory data d. Current infrastructure for moving processed product e. Ongoing projections of new rail routes Important Information Gaps There are specific gaps in information that is currently available. These are associated with agronomic bioenergy crops and use of existing forest stands for bioenergy. a. Volume of biomass available for energy from existing forest stands b. Harvest techniques that would provide reasonable conditions for regeneration c. Varieties and crop managementfor both woody and other agricultural bioenergy crops d. Chemistry for selected interior biomass forest types e. Chemistry for non-woody field crops Other Needed Information Other information is needed if Alaskans are to seriously consider using agricultural and forest biomass for energy. Some can be obtained from existing literature and some can only be obtained from applied research and demonstration field work. a. Managem,ent information for crops that pertains to biomass not for food or feed b. Forest management for harvest for biomass -not economically viable species for timber c. Economic viability of Alaska biomass feedstocks I. Cost of crop production II. Cost afforest management iii. Cost afforest & other land treatments IV. Infrastructure -description of capital and operating cost v. Equipment i. crop planting and harvest ii. forest harvest VI. Processing Vll. On-site storage Vill. Transportation IX. Off-site storage x. Land profitability in alternative uses d. Energy units available by biomass feedstock source Research/Demonstration Projects: a. Field bioenergy studies to consider viable varieties and crop management techniques b. Clearing techniques on a mixed stand specific for energy biomass c. Potential for regeneration with minimum site preparation d. Possible low-cost augmentation for regrowth andlor cropping potential There will be direct benefit to all Alaskans who wish to use harvested/cultivated biomass as a biofuel -particularly so for rural & village communities, where the need to reduce the cost of energy is most acute. AEA 09-004 Grant Application Page 5 of 15 9/3/2008 , I~)ALASKA .::::) ENERGY AUTHORITY Renewable Energy Fund G rant Application The results from this Study will provide key inJormation for the evaLuation of the physicaL, biological and economic feasibility oj a sustainable biomass energy industry. In a broader scope, this Study will also address the question of what impact the use of biomass for biofuels will have to Alaska agricultural and forest resources. The economic feasibility component of this project will lay the groundworkfor future specification and estimation of biomass feedstock supply curves and wiLL provide specific supply curves for the research/demonstration projects. The supply curves will represent the quantity oj biomass available from a given feedstock on a sustainable basis at a given price. The supply curves wiLL be used to identify the cost m.inimizing combination of biomass feedstocks by energy requirements. As such the supply curves are of critical interest to policy makers, communities, industries and other stakeholders who need to assess the potential for large scale biomass energy development. The study will underpin most, if not all, future projects intending to use agricultural andlor forestry biomass as their major or sole fuel component and serve as a primary point of reference in the feasibility phase of future agriculturaL and forestlY biomass to energy projects. 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 $454,828 (Including estimates through construction.) 2.5.2 Grant Funds Requested in this application. $454,828 2.5.3 Other Funds to be provided (Project match)* $ 0 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $454,828 2.5.5 Estimated Benefit (Savings) $ SEE ABOVE 2.5.6 Public Benefit (If you can calculate the benefit in terms of $ SEE ABOVE dollars please provide that number here and explain how you calculated that number in your application.) ·We have stated the fund sources that Will be used as leverage In Section 2.3. ThiS IS not a formal match obligation from UAF or SNRAS/AFES. 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 a'pplicant expects project management assistance from AEA or another government entity, state that in this section. Carol E. Lewis for SNRASIAFES lomo Stewart for FEDC Mark ELiotfor Division of Forestry No other project management assistance is requested. AEA 09-004 Grant Application Page 6 of 15 9/3/2008 3.2 Project Schedule Renewable Energy Fund Grant Application 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.) See Attachment F. Schedule assumes a start date of FebruQ1y 1, 2009. The research and demonstration projects are time sensitive and will depend on the availability offunding. Reconnaissance Publication of Reconnaissance Research and Demonstration Agronomic Bioenergy Crops Forest Stand Inventory Forest Stand Clearing Chemical, Physical Feasibility Economic Feasibility Publish Final Results Disseminate Public Information 3.3 Project Milestones February}, 2009-ApriL 31,2009 May 1, 2009-May 31,2009 March 1,2009 -October 31,2010 March 1,2010-January 31,2011 March 1,2009 -January 31, 2010 March 1,2010 -January 31, 2011 June 1, 2009 -June 30, 2010 FebruCl1Y 1, 2009-July31, 2010 October 1, 2010 -January 31,2011 June 1, 2008 -January 31, 2011 Define key tasks and decision points in your project and a schedule for achieving them. Our schedule for the completion of predect milestones is shown in 3.3 above and the chart of our timeline that is attached in Attachment F. • Complete Reconnaissance Study -Complete by June 1, 2009 • Publish preliminary results of long-term agronomic study -Complete by January 1, 2011 • Publish results of the inventory oftheforest stand -Complete by October 31,2009 • Publish results of the clearing and ground preparation forest stand project -Complete by January 1, 2011 • Chemical/Physical/Economic Feasibility analyses -Complete by August 1, 2010 • Publication of all project results -Complete by January 31, 2011 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. Carol E. Lewis -Project Manager Stephen D. Sparrow -Bioenergy crops lead Joshua Greenberg -Economic feasibility lead Gwen Holdmann -Assist with data gathering Juan A. Soria -Physical and Chemislry feasibility lead Mark Eliot-Forest biomass lead Jomo Stewart -logistics, data management, public information dissemination lead The project is a research and demonstration project combined with collection of existing data on agronomic and forest stand biomass and a feasibility and economic analysis project. SNRAS/AFES, FEDC, and Alaska Division ofForestTy resources and data bases will be utilized. AEA 09-004 Grant Application Page 7 of 15 9/3/2008 I~)ALASKA -=:j ENERGY AUTHORITY Renewable Energy Fund Grant Application Wood and crop chemistry work ·will be conducted at the Kertulla Hall laboratory, a component of SNRASIAFES located in Palmer, Alaska. Research and demonstration projects will be on AFES Fairbanks Experiment Farmfacilities and forest stands near Fairbanks. Resumes for Key Personnel Attached. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. All project monitoring will be the responsibility of the Project Manager. Three reports to AEA, each at the completion of a major phase of the project, are listed in the time lines. FEDC will be the responsible partnerfor public information dissemination throughout the project. 3.6 Project Risk Discuss potential problems and how you would address them. The project is a low-risk project. All data bases reside with the project partners andlor are a part of public record and published material. All research and demonstration work will be on facilities managed by the SNRAS/AFES or on public lands of the state and/or the Fairbanks North Star Borough. Those involved in the research/demonstration work have long records of successful execution and completion o.t similar projects. The methodology is well known for constructin.g cost/supply side models that will depict benefit!cost scenarios associated with the use of different types offorest and crop biomass and the technology application. All partners have commissioned, designed, andlor authored and directed graduate students in conducting feasibility studies of this nature. 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. On its face, Alaska's forest and agricultural resource potential is immense. The project seeks to better qualify/quantify those resources and addresses the question of availability, quality and feasibility of biomass so that it might be used in Alaska as an econOlnic, sustainable fuel source. The goal of the project is to 1) assimilate existing information on standing forest and agricultural crop biomass in Alaska, 2) conduct research and denwnstration projects addressing agricultural bioenergy crop varieties and crop management and addressing harvest methods in preparation for natural and managed regeneration in mixed, single-aged forest stands, and 3) determine the AEA 09-004 Grant Application Page 8 of 15 9/3/2008 I~)ALASKA ~ ENERGY AUTHORITY Renewable Energy Fund Grant Application biological, physical, and economic feasibility of using Alaskan agricultural energy crops and existing forest stands for biomass as bic~fuels. Completion of the proposed project will be necessary before the requested information on pros and cons of the proposed energy resource or alternatives can be provided 10 those who intend to use agricultural and forest biomass as a total or partial source for energy generation. 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, aQe, efficiency, and type of qeneration. NOT APPLICABLE TO THIS PROPOSAL 4.2.2 Existing Energy Resources Used Briefly discuss your understanding of the existing energy resources. Include a brief discussion of any impact the project may have on existing energy infrastructure and resources. Alaska contains vast forested lands and lands that have agricultural production capability. However, a forest inventory analysis (FIA) for Alaska total is incomplete at best. Agricultural· land surveys existfor most of the state, but are also not complete. Additionally, large masses of the productive forest and agricultural lands are nor within reach of current transportation infrastructure and existing electrical or power supplies. The u.s. Forest Service information for A laska forests dates to the m.id 1980s. The School of Natural Resources and Agricultural Sciences and the Agricultural and Forestry Experiment Station's Growth and Yield Program has information along the road system from the Kenai Peninsula to the Brooks Range. The Alaska Division of Forestry in the Department of Natural Resources also has comprehensive data along the road system. These data bases have 110/ been merged into a single data management system. The u.s. Forest Service estimates the cost to complete the F IA for Alaska at $2.9 million annually over a period of 20 years. Agricultural land surveys for Alaska are published by the USDA Natural Resource Conservation Service (NRCS). It is estimated that within the road system there are 500,000 acres of cropable lands. Grain, grass, and oilseed crops are likely candidates for energy use. The USDA National Agricultural Statistics Service (NASS) provides statistics for grain and hay. There are 11.0 statistics for oilseeds or crop residues although amounts could be estimated. Woody biomass as a crop is also a potential energy source. There have been reasonable successes with these crops in other northern areas. Research at the University of Alaska Fairhanks under the Agricultural and F orestlY Experiment Station is progressing. Willow and poplar are the species most frequently used and our included in the research. The Western Governors' Association in the review draft of "Biomass Electric Supply Sourcesfor the Western States" (2005) estimated biomass resources in the western states including Alaska. The major categories included agricultural, forest, and urban. biomass resources. However, much of the information regarding crol) residues, en.ergy crops, unused logging slash, primmy sawmill residues, biosolids, wastewater, and landfill waste had to be estimated based on an average from selected western states, calculated on a per capita or per acre basis as applicable, then extrapolated to obtain totals. AEA 09-004 Grant Application Page 9 of 15 9/3/2008 I~)ALASKA ~-:::; ENERGY AUTHORITY Renewable Energy Fund Grant Application There has been little done in the way of research and/or demonstration projects using agronomic bioenergy crops or existing forest stands that have been specifically directed at biomass and bioenergy. This project will take information that has been gleaned from previous field research in both agronomic and forest arenas and apply it to specific research and demonstration projects that address the use of agronomic and forest resources for bioenergy. It is the first such directed investigation in the state of Alaska. The resulting supply functions will be essential if the state and its villages and communities is to continue to promote the use of renewable resources as a source for bioenergy. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Available information regarding energy production and usage in Alaska can be gleaned from a number of sources and in varying levels of detail. A broad stroke analysis can be found in the document titled, "How Would$l ,200 Per Person State Payments Compare With Increased Household Costs for Energy Use?" recently published by ISER. For a more detailed, regional analysis, one can look to the Interior Issues Council's 2007 Cost of Energy Taskforce Fairbanks Energy Business Plan. What is clear is that communities which do not have access to the Southcentral Natural Gas distribution system, particularly in Northern, Northwestern, Western and Interior Alaska, rely heavily (75%+) on high cost petroleum basedfuels to satisfy their home/space heating. Most also use petroleum products for their electrical generation needs. The negative aspects of this reliance are further compounded in relatively isolated Rural & Village communities by the high cost transporting these expensive fuels to point of use. It is this high end-use fuel cost that is driving many individuals and communities to seek alternative fuel sources, especially in the critical realm of home/space heating. And "biomass" - because of its apparent wide distribution, abundance, proximity to affected communities, easy availability and assumed low cost -combusted in an appropriate technology, is being strongly considered as a means of alleviating the fuel cost dilemma. Biomass boilers currently operating in Alaska include those in Tanana, Ionia, Kasilof, Tok and Craig. Projects also under consideration or in process include Dot Lake, Fort Yukon, Kenny Lake School, New Su-Valley High, Galena Boarding School. However, in the absence of this Study, or one similar to it, many of these projects have and will be moving forward on biomass availability, sustainability and economic optimization assumptions that are at best incomplet e, and at worst purely anecdotal. This Study will indirectly impact energy consumers throughout Alaska by underpinning most, if not all, future projects intending to use agricultural and/or forestry biomass as their major or sole fuel component, and by providing a primmy point of reference in the feasibility phase of future agricultural and forestry biomass to energy projects that may be considered for or within communities. AEA 09-004 Grant Application Page 10 of 15 9/3/2008 I~)ALASKA -=) ENERGY AUTHORITY 4.3 Proposed System Renewable Energy Fund Grant Application 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 NOT APPLICABLE 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. NOT APPLICABLE 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 j)otential barriers NOT APPLICABLE 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 NOT APPLICABLE AEA 09-004 Grant Application Page 11 of 15 9/3/2008 I~)ALASKA -=-J ENERGY AUTHORITY Renewable Energy Fund Grant Application 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 NOT APPLICABLE 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for new facilities constructed and how these would be funded by the applicant. • Total anticipated project cost for this phase • Requested grant funding NOT APPLICABLE 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following: • Identification of potential power buyer(s)/customer(s) • Potential power purchase/sales price -at a minimum indicate a price range • Proposed rate of return from grant-funded project NOT APPLICABLE 4.4.4 Cost Worksheet Complete the cost worksheet form which provides summary inforrnation 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. This Cost Worksheet is not applicable to the proposed project which is a feasibility study. 4.4.5 Business Plan Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimumj)roposed business structure(s) and concepts that may_ be considered. AEA 09-004 Grant Application Page 12 of 15 9/3/2008 NOT APPLICABLE 4.4.6 Analysis and Recommendations Renewable Energy Fund Grant Application Provide information about the economic analysis and the proposed project. Discuss your recommendation for additional project development work. NOT APPLICABLE 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 This information is addressed in Sections 2.4: PROJECT BENEFIT, 4.1: PROPOSED ENERGY RESOURCE, 4.2.2: EXISTING ENERGY RESOURCES USED, and 4.2.3: EXISTING ENERGY MARKET. 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 total project cost to the state of Alaska. AEA is $454,828. Pursuit of this Study fulfills part of the mission of UAF and SNRASIAF~'S as the lmul-grant institution for the State of Alaska, and we have provided an explanation of what SNRASIAFES and our partners bring to the project as a leveraged investment, The budget justification for expenditures that AEA will incur to complete the project is: Budget Justificatioll Salaries: No salary is requested for the 4 senior participants, Carol E. Lewis, Stephen D. Sparrow, Joshua Greenberg or Gwen Holdmann. We are requesting salary for 3 mos per year for 2 years for research faculty Dr. Andy Soria at $37. 18/hr for 520 hrs in each year 10 conduct chemical analysis for the project. 1.5% leave reserve is included. Also requested is 6.0 mo. per year for a field technician at $20.00/hour to conduct the fieldwork. 21.5% leave reserve is included. AEA 09-004 Grant Application Page 13 of 15 9/3/2008 I~)ALASKA -==J ENERGY AUTHORITY Renewable Energy Fund Grant Application SupporT is also budgetedfor 1 graduaTe student (academic year and summers) including tuition for 2 years, to assist in compiling the data. Salaries include a 4.5% inflation increase for senior personnel in the 2nd year. Be1lefits: Staff benefits are applied according to UAF'sfixed benefit ratesfor FY09. Rates are 32.1%for senior salaries, 62.8%for classified staff and 7.9%for graduate students (summers only). A copy of the rate proposal is available at: htt(J:/lwww.alaska.edulcontrollerlcost- analvsislnegotiated agreements.l1tml Travel: Domestic: $5,000 in Yr 1 and $5,000 in Yr 2 is requested for in state research site travel. Subawards: A subaward will be made to the Fairbanks Economic Development Corporation (FEDC) for ($10,000 in Yr 1 and $10,000 in Yr 2)for logistic support, data compilation, publication preparation and public information. A subaward will be made to the Division of Forestry for $25,000 in Yr 1 and $105,000 in Yr. 2 for synthesis of information onforest inventory, best management practices, regeneration, forest harvest methods and equipment, transportation equipment, on and off site storage andfor application of biomass harvest and land preparation trials on appro.ximately 300 acres of a mixed-species stand. Biomass harvest and land preparation is expected to cost approximately $350.00 per acre. Materials & Supplies: Funds are requested for publications supplies, for laboratory supplies for the biomass chemical analysis, andfor fencing ($20,250 in Yr 1 and $3,000 in Yr. 2) for the agronomic research/demonstration field plots for protection against wildlife. Other Direct Costs: Per UAF policy, in-state tuition costs are includedfor the graduate student (academic year only). Fees are also included for graduate student health care. Indirect Costs: Alternative Indirect Cost Statement vvhen the Sponsor Limits F &A Recovery: Facilitates and Administrative (F &A) Costs are calculated at 25.0% as per our agreement with the State of Alaska for all State agencies (attached). 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. AEA 09·004 Grant Application Page 14 of 15 9/3/2008 Renewable Energy Fund Grant Application 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 And~ Po.rke.r~of)-G.r~ Signature ~ Title DirfLc-tor, UA F O.f1F) ce of 5,oonsorruJ ..pY-03~o.fJ'IS Date ft/fO/O"{; AEA 09-004 Grant Application Page 15 of 15 9/3/2008 ATIACHMENT A Resumes