HomeMy WebLinkAboutYukon Koyukuk School District Alternative Energy Recon
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 1 of 14 9/2/2008
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/RE_Fund.html
The following application forms are required to be submitted for a grant recommendation:
Grant Application
Form
GrantApp.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
Costworksheet.doc Summary of Cost information that should be addressed
by applicants in preparing their application.
Grant Budget
Form
GrantBudget.xls A detailed grant budget that includes a breakdown of
costs by task and a summary of funds available and
requested to complete the work for which funds are being
requested.
Grant Budget
Form Instructions
GrantBudgetInstr.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 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.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 2 of 14 9/3/2008
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Yukon Koyukuk School District
Type of Entity: School District
Mailing Address
Yukon Koyukuk School District
4762 Old Airport Way
Fairbanks, Alaska 99709-4456
Physical Address
Yukon Koyukuk School District
4762 Old Airport Way
Fairbanks, Alaska 99709-4456
Telephone
907 374-9400
Fax
907 374-9440
Email
kboyd@yksd.com
1.1 APPLICANT POINT OF CONTACT
Name Kathy Christy
Title Project Manager
Mailing Address 51 72 E. 98th
Anchorage, AK 99507
Telephone
907 868-3498
Fax
907 868-2887
Email
christykj@gci.net
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
An independent power producer, 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.)
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 3 of 14 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
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 project is to conduct an assessment of potential sources of alternative energy for the schools
and communities served by the Yukon Koyukuk School District. These communities are
Alakaket, Hughes, Huslia, Kaltag, Koyukuk, Manley Hot Springs, Minto, Nulato and Ruby.
Potential alternative energy sources in the District include hydrokinetic, geothermal, biomass
(wood ), waste heat and wind. There is a high degree of interest in developing alternative energy
in the Interior. The District plans to coordinate with other agencies working in this area. The
Gwitchyaa Zhee Corporation in Fort Yukon is developing a much larger wood fuel project than
would be required by YKSD communities but they provide a model to follow. The District will
contract with the consultants assisting in the development of that project, Dr. William Wall,
Ph.D. and Peter Olsen. The biomass potential community of Kaltag will be address in a separate
grant application. The Yukon River Inter-Tribal Watershed Council (YRITWC) has an
experimental hydrokinetic project in Ruby that might have application to our other river based
communities. Dr. Brian Hirsch of the Council will assist in the evaluation of harnessing river
power. River conditions in the Region will be reviewed and the two most promising site will be
selected for evaluation. Gwen Holdmann of the Alaska Center for Energy and Power at the
University of Alaska Fairbanks will complete a basic reconnaissance of the geothermal potential
in the District for direct use and power generation applications. The District will review waste
heat options with local utilities. Manley may have good waste heat potential.From initial review
it appears wind generation opportunities are limited. This will be confirmed with AEA. Kathy
Christy will serve as the District’s project manager responsible for coordinating the work of the
consultants and the compilation of the Phase I report and recommendations.
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 total cost of the reconnaissance phase of this project is $120,500. The District is requesting
a grant of $112,000 to study alternative energy options in the region. The biomass component of
the study will cost $57,500. The Hydrokinetic portion of the study will cost $13,000. The
geothermal investigation will cost $20,000. The associated District and project management
costs to oversee the various components of the study, evaluate wind and waste heat options and
compile study results will be $30,000. The District will provide $5,000 in in-kind staff hours.
The Yukon River Inter-Tribal Watershed Council will contribute $2,000 in staff labor and
$1,500 in travel costs to support the hydrokinetic investigation. At this phase of the project is it
is not possible to estimate the total construction cost as a determination is yet to be made of the
most cost effective alternative energy solutions for these communities. Preliminary cost benefit
analysis will be included in the scope of work.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 4 of 14 9/3/2008
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.
The goal is to reduce and stabilize the cost of energy for the Yukon Koyukuk School District.
This will have multiple benefits of making more funding available for direct instruction of
students and strengthening the local economy of the Yukon Koyukuk communities and
supporting their continued existence.
Utility costs are a significant portion of the school district budget. ISER determined that the cost
of fuel in off road areas of the state increased 83 percent from 2000-2005. As energy costs
increase more of the District’s funding directed away from instruction into the operation budget.
Application of alternative energy can reverse this trend.
Sustainable wood heat would provide a more stable energy cost than fluctuating oil. A
significant economic benefit to the public is that development of local wood industry would
provide new local jobs, strengthening the local economy, and reducing dependency on diesel fuel
and therefore reducing need for state subsidy. Bio mass projects provide a remedy to
outmigration from villages by providing stable fuel source that returns money to the community,
rather than drains it. The initial cost of biomass fuel may not be significantly less than diesel but
it would be less subject to price fluctuations and the revenue would be kept on the local level.
Geothermal and hydrokinetic projects may have a higher development cost than wood heat, but
once established nature provides the fuel source. With assistance in the construction of these
projects they have the potential for significantly reduced energy costs and quick pay back of
development costs. Recovery of waste heat results in cost savings from more efficient use of
fuel.
This project will provide a comprehensive look at the entire District and compare the benefits of
multiple alternative energy options to recommend the best option or combination of options for
each community.
Looking beyond the region, increasing the self-sufficiency of rural communities and increasing
the number of local jobs will have a positive benefit on the total state budget.
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.)
$ **
2.5.2 Grant Funds Requested in this application. $ 112,000
2.5.3 Other Funds to be provided (Project match) $ 8,500
2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $ 120,500
2.5.5 Estimated Benefit (Savings) $ **
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.)
$ **
** One of the purposes of the reconnaissance study will to be able to answer 2.5.1, 2.5.5 and
2.5.6 for each of the communities in the District.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 5 of 14 9/3/2008
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 District will contract with Kathy Christy of Project Resources to serve as the project
manager of the study. The District will collect the energy requirement data. The District intends
to contract with consultants who have experience with similar alternative energy projects in
Interior Alaska for the technical evaluation of the options.
Biomass – Dr. William Wall and Peter Olsen
Hydrokinetic – Dr. Brian Hirsch
Geothermal – Gwen Holdmann
Wind - AEA
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.)
Project is an eight month effort. The actual completion date depends on notification of award of
grant. The District will conduct the research portion of the project with in-house resources prior
to the grant award. If the Legislative approval is given in the FY 2009 budget the evaluation
process could begin in June. Summer weather will be needed for evaluation of biomass and
hydrokinetic potential. Individual consultant reports could be completed by September. This
would be followed by a comprehensive comparative analysis of the results for each community
and each energy source. A recommendation of projects worthy of more detailed feasibility study
and development efforts would be made to the School Board by October so that funds could be
requested in the next AEA grant cycle.
Schedule Outline – Schedule can be adjusted to if funding is available prior to July
1. Background 2- 3 months - Research and database development (this can occur prior to
grant award). Catalog of existing energy systems. MOA with consultants pending
funding
2. Evaluation June to August -
Evaluation of biomass potential
Evaluation of hydrokinetic potential
Evaluation of geothermal potential
Evaluation of wind potential
3. Partnerships August to September
Identification of potential energy provider partners
4. Cost Benefit September to October –
Comparison of cost benefit of options
5. Recommendations October
Recommendation of alternative energy option for each community
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 6 of 14 9/3/2008
3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them.
See Project Schedule 3.2. As a reconnaissance study the timeframe is eight months. The
reconnaissance study needs to be completed before an informed decision can be made regarding
appropriate projects to move to the next stage of development. If preliminary investigation
determines that there is a minimum load demand to justify investment in an alternative energy
option at a particular location then further investigation of that option be halted.
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.
There is ongoing research on alternative energy options in Interior Alaska. The District intents to
incorporate this information into its decision making process and to share what we learn. To
facilitate this, the District plans to contract with recognized researchers currently evaluating and
testing different energy options within the Interior. The Gwitchyaa Zhee Corporation in Fort
Yukon has taken the lead on biomass and most helpful in sharing their information regarding
development of biomass utilization. The District intends to contract with their consultants Dr.
William Wall and Peter Olsen to conduct the YKSD bio mass reconnaissance study. This team
is currently developing a Forest Stewardship plan for the Gana A’Yoo Corporation which serves
Galena, Kaltag, Koyukuk and Nulato and is the land manager for this area. This plan is funded
through the Alaska Department of Natural Resources and private forestry. Work under this
project will incorporate the stewardship plan and not duplicate it. The scope of work for the bio
mass Phase I study is attached to this application.
Another partnership is the Yukon River Inter-Tribal Watershed Council which is currently
conducting a prototype hydrokinetic demonstration project in Ruby. The expertise and
experience of Dr. Brian Hirsch, Energy Manager and the YRITWC engineering staff will be
utilized to evaluate the potential for harnessing river power for the YKSD communities to offset
the demand for oil fueled power for the schools.
The Alaska Center for Energy and Power will be used to determine the potential for geothermal
power and heat in the District. The Center has been involved in the Chena Hot Springs project.
TDX Manley Generating, LLC, the electric utility in Manley, is investigating the geothermal
potential in that community. The District will cooperate with the TDX efforts and with ACEP
will focus its planning efforts under this project on other communities in the region. The ACEP
scope of work is attached to this application.
The feasibility of wind generation projects can be determined from data available from AEA and
a review of development cost information from electric companies that have undertaken these
projects in other regions of the state. The District will partner with TDX and other local utilities
to evaluate waste heat potential.
In each community the school is the largest consumer of energy so it is appropriate for the
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 7 of 14 9/3/2008
District to be a catalyst in encouraging alternative energy. However, the mission of the school
district is to educate children, not to provide power. A focus of the reconnaissance and feasibility
phases of the project will be to identify potential partners who are capable of fulfilling the role of
energy provider. As an example, an essential element for the success of biomass is development
of a wood industry. Gana-A’Yoo Corporation, a profit making entity which serves Galena,
Kaltag, Nulato and Koyukuk is a potential partner to provide energy. The local village
governments are also potential energy providers, as are local entrepreneurs. The development of
partnership agreements will be a critical focus of a future Phase II feasibility study.
The success of any alternative energy option will require collaboration of local Native
Corporations, local governments, regional and local housing authorities, state and federal
agencies and AVEC. The Alaska Energy Authority, Denali Commission, USDA Rural
Development, USDA NRCS, Department of Energy, the Yukon River Inter-Tribal Watershed
Council and Alaska State Division of Forestry are among the key partners.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
The project manager will provide a monthly status report to the school board and the Authority.
The consultant contracts will include an outline of deliverable work products. The project
manager will review the work product development on a regular basis and assure that the project
is keeping within the project schedule.
3.6 Project Risk
Discuss potential problems and how you would address them.
At the reconnaissance phase there is limited risk. However, this is the stage that provides the
foundation for future project development. It is important to inform all potential stakeholders of
the scope of the study and provide an opportunity for input. A good communication plan is key
to the success of this phase of the project. An important goal of this phase is to identify potential
energy providers that can assume responsibility for supplying power and/or heat to the school
and community. Good communication is essential. It is also important to critically evaluate the
results of the study to assure reasonable assumptions and valid conclusions. The future risks and
pitfalls must be realistically considered.
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.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 8 of 14 9/3/2008
The purpose of the reconnaissance study is to determine the potential of the energy resources and
to determine if a feasibility study is warranted. This is the initial stage of study to determine if
there is value in pursuing any of these options and which communities offer the best potential for
possible development. Project will identify the energy requirements of the community and the
school in each location. The potential alternative power generation will be identified along with a
rough order of magnitude cost. Possible energy providers will be addressed.
The Alaska Energy Atlas identifies the Yukon Koyukuk District as having a good potential for
several types of alternative energy technology. There is a good source of biomass – wood fuel.
The forested areas in the District are characterized by open forest and tall shrub and mixed forest.
A major focus of the biomass evaluation will be to determine the quantity of fuel required for
each school and community and impact on the local forest. A successful bio mass project must
include a forest management plan to assure a sustainable source of fuel.
All of the District villages are located on the Yukon, Koyukuk or Tanana Rivers all of which have
a potential for hydrokinetic power as identified by AEA. A current experimental project is
underway in Ruby. The Ruby demonstration project was successful but only operated under ice
free conditions. Improvements in technology are needed before the turbines are ready for
underwater power production which would provide a year round source of power. For this
reconnaissance study river conditions will be evaluated and the two most promising village
locations will be identified and water speed measurements taken. Water speed is the most
important issue to determine power output. Results of this study will identify the best locations,
potential obstacles, power potential and energy savings. Underwater turbines are being developed
and with advance information from the reconnaissance study the District would be in a good
position to move forward when the technology is ready for implementation.
Manley Hot Springs may provide the best option for geothermal power in the District. Other
locations in the District such as Ruby and Huslia may also have a good potential for geothermal.
AEA staff has noted there is a good potential to capture waste heat in Manley. This will be
evaluated with the local utility TDX. The potential of other villages with local utility providers
will also be considered for waste heat recovery.
These energy sources are likely to provide greater opportunities than wind, but wind potential will
be considered in this initial study. The advantages and disadvantages of each option will be
compared on a case by case basis for each community. An important distinction needs to be
made between power and heat generation. School districts traditionally purchase power but
generate their own heat. Some alternative energy options are better suited to power and others to
heat generation. It is quite possible that the communities and school will be best served by a
combination of energy resources.
Based on study outcomes preliminary environmental concerns will be identified. Permit
requirements and permitting timelines will be outlined for each potential project.
Recommendations will be made to the School Board designating projects worthy of further study.
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.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 9 of 14 9/3/2008
This information will be collected as part of the reconnaissance study. All the District’s schools
are heated with commercial oil fired boilers of various ages and conditions. It is the intent that the
District would continue to use the existing heating systems for back up heat generation.
AVEC supplies power to Huslia, Kaltag, Minto and Nulato. Small local utilities provide power in
the other communities. All utilities currently use oil fired generators to produce electricity.
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 schools and power plants purchase bulk fuel. The homes are heated with locally harvested
wood and fuel oil purchased by the barrel. At the household level a wood energy program could
create a consistent supply of fire wood for households and may positively affect the willingness
of households to invest in efficient and clean burning appliances. At the commercial scale
displacing a portion of the oil consumption will reduce, but not eliminate the need for bulk
deliveries of fuel into the village.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
The reconnaissance study will not have an impact on energy customers. If the study leads to
development of an alternative energy source that project could reduce community reliance on
diesel fuel and could reduce the cost to customers by providing a more cost effective fuel
alternative. A biomass project could change for fuel demand from oil to wood. Hydrokinetic and
geothermal could reduce dependence on oil fueled power and after development costs are
recovered could provide very low cost energy. Waste heat recovery would save the District
energy costs but not affect other customers.
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
4.3 The purpose of the study is to determine if a potential system warrants further investigation
for a specific location. The requested 4.3.1 information would be developed as part of Phase II.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 10 of 14 9/3/2008
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.
Identification of land ownership will be a task of the reconnaissance study. Land ownership and
management issues will vary with the type of alternative energy. It is imperative to coordinate
with local village governments and regional corporations and various state and federal agencies
that have interest in land use and natural resources. All landowners for potential energy sites
would be contacted. If, after the benefits of the potential energy source are explained, there is no
support for use of the land for an alternative energy production, that option would not proceed to
the next phase of development.
Gana A’Yoo the land owner for Kaltag, Koyukuk and Nulato is receptive to the concept of wood
harvesting and is participating in development of a forest stewardship plan for the area.
4.3.3 Permits
Provide the following information as it may relate to permitting and how you intend to address
outstanding permit issues.
List of applicable permits
Anticipated permitting timeline
Identify and discussion of potential barriers
The reconnaissance study will provide a preliminary identification of permit requirements and the
permitting timeline. Potential barriers to development will be identified.
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
Once options are identified as having a potential warranting further study, environmental and land
use considerations will be evaluated. Each option must be evaluated individually. The
appropriate review agencies and local communities will be contacted. Telecommunication
interference and aviation considerations are not anticipated to be issues.
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,
Renewable Energy Fund
Grant Application
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Consultant or Manufacturer’s estimates.
4.4.1 Project Development Cost
Provide detailed project cost information based on your current knowledge and understanding of
the project. Cost information should include the following:
Total anticipated project cost, and cost for this phase
Requested grant funding
Applicant matching funds – loans, capital contributions, in-kind
Identification of other funding sources
Projected capital cost of proposed renewable energy system
Projected development cost of proposed renewable energy system
The cost of Phase I is estimated at $ 120,500. A grant of $117,000 is requested. The District will
contribute $5,000 and YRITWC will contribute $3,500 or a total of $8,500 in in-kind staff
services. The match contribution represents 7 percent of the total project amount.
Until this phase is completed the cost of Phase II can only be generalized. Roughly it is estimated
that the cost of Phase II feasibility study for a regional bio mass project would be $200,000. The
cost of a regional hydrokinetic Phase II study could be less, depending on the amount of
information available from the Yukon River Inter-Tribal Council’s project at Ruby and the
applicability of data to other communities. The combined cost of Phase II and III of a geothermal
project could be approximately the $200,000.
The Phase IV capital costs of the Fort Yukon biomass project are estimated at just over $2
million. Ft. Yukon is a significantly larger community with a greater demand for energy than any
of the YKSD communities. There are numerous unknown variables that can affect the boiler
construction cost. The construction project could range from $400,000 to $1,500,000. A stick
fired boiler at the school installed with the new oil fire boiler would be lowest cost. However, a
village might have an opportunity for a centralized heating system for all the major commercial
buildings in the village and cost as much as $2.5 million but serve more facilities.
Wood harvest, storage and delivery system must be developed to meet the needs of the boiler
systems installed and could range from $100,000 to $400,000 depending on how much annual
production is needed, what local equipment is available and in what form the boilers need the
wood, either round wood or chips. If the wood harvesting operation could serve multiple
communities the cost per community served would be less.
According to the YRITWC construction cost for hydrokinetic is roughly $10 to $12 per watt of
production. For example, a 5 kw turbine would cost about $60,000. The appropriate size turbine
for each community will be evaluated on a case by case basis as part of the Phase I study.
The projected costs of geothermal energy will be determined as part of this study. The Chena Hot
Springs experience will be used as a reference. For waste heat recovery Phase II and III costs are
estimated at $75,000 in design and engineering costs and between $60,000 to $100,000 in
construction costs.
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
Phase I study will include estimated O&M costs of each energy option. Project analysis will not
assume grant support of operating and maintenance costs. Cost of the energy should be priced to
cover operational costs.
Renewable Energy Fund
Grant Application
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4.4.3 Power Purchase/Sale
The power purchase/sale information should include the following:
Identification of potential power buyer(s)/customer(s)
Potential power purchase/sales price - at a minimum indicate a price range
Proposed rate of return from grant-funded project
The school district is the largest customer of fuel in the communities to be studied. The focus will
be on the school use of alternative energy but community use will also be examined. For power
generation projects in particular community generation is likely to be the best option. For the
project to be feasible the cost of alternative energy needs to be equal or less than the cost of diesel
fuel the District is currently paying and have a reasonable payback on investment. The “break
even” points will be included in the cost benefit portion of the Phase I study.
4.4.4 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 Attached. Cost estimates are based on proposals received from William Wall, Brian Hirsch,
Gwen Holdmann and Kathy Christy.
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.
The business plan would be developed in Phase II. The recommended options must be
sustainable. For Bio mass energy the District would require that another entity provide the wood
fuel or function as a utility providing heat to the buildings. That utility would have to be
committed to a forest management plan and demonstrate management responsibility.
Energy options that depend on wind, water or geo- thermal sources could possibly be managed by
the District. However, these options have the potential of service to the entire community and it
would be more appropriate for a local utility to assume responsibility. Local utility providers are
in place in five of the nine communities. AVEC provides power in the other four villages. These
utilities would be involved in the development of the business plan.
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 economic analysis is part of Phase I and will identify projected capital, O&M and fuel costs
of the different energy options under consideration. Strategies for financing the options will also
be addressed. Only options that indicate the potential for positive economic benefit will be
recommended for further Phase II feasibility study.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 13 of 14 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
The above information will be determined as part of the Phase I study. Options selected for
further Phase II study would need to show a potential to replace diesel fuel at an equivalent or
lower cost. Providing new sustainable local jobs would be an additional benefit of the completed
project.
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
Provide a narrative summary regarding funding sources and your financial commitment to the
project.
The total cost of the reconnaissance phase of this project is $120,500. The District is requesting
a grant of $112,000 to study alternative energy options in the region. The biomass component of
the study will cost $57,500. The Hydrokinetic portion of the study will cost $13,000. The
geothermal investigation will cost $20,000. The associated District and project management
costs to oversee the various components of the study, evaluate wind and waste heat potential and
compile the results will be $30,000. The District will provide $5,000 in in-kind staff hours. The
Yukon River Inter-Tribal Watershed Council will contribute $2,000 in staff labor and $1,500 in
travel costs to support the hydrokinetic investigation.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 14 of 14 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 Kelly Boyd
Signature
Title Superintendent
Date