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Cordova Biomass District Heating Project App
110 Nicholoff Way P.O. Box 1388 Cordova, Alaska 99574-1388 Ph (907) 424-7738 * Fax (907) 424-7739 10,000 years in our Traditiorwl homeland. Prince William Sound the Coiner River Delta & the Gulf of Alaska Alaska Energy Authority 813 West Northern Lights Blvd. Anchorage, AK 99503 November 6, 2008 Attn: Butch White Re: Request for Funding Dear Mr. White, The Native Village of Eyak has developed a proposal for a Cordova Biomass District Heating Project for residents in Cordova, Alaska. We are pleased to request funding from the Alaska Energy Authority for $1,850,320. Cordova is only accessible by air or water, so the cost of living is extremely high. The City of Cordova spends approximately $350,000 each year heating buildings reliant on fuel oil. The Native Village of Eyak would like to alleviate this burden on our community by initiating a Biomass District Heating Project. The entire community will be directly served through this program. The district heating program will focus on reducing heating costs in municipal buildings by using waste wood and cardboard as fuel to run a biomass boiler for heat instead of the expensive heating oil. With your assistance, we will help Cordova save money on heating costs allowing the City to allocate those funds towards programs that benefit the community members. This project has the potential to displace 241,953 gallons of fuel saving the community $1.2M. Please find enclosed the Renewable Energy Fund grant application for the Cordova Biomass District Heating Project. Your financial support for this project is ereatly appreciated. Sincerely, Q., ,cc Bruce Cain Executive Director Native Village of Eyak Vill NativeC�� - Cordova Biomass District Heating Project Table of Contents (Page numbers refer to hand -numbered pages) Grant Application Resumes....................................................................................................................18 CostWorksheet........................................................................................................21 Budget.......................................................................................................................24 GoverningBody Resolution....................................................................................28 Supporting Documentation.....................................................................................30 MatchingFunds .............................................................................................30 BreakEven Analysis......................................................................................31 Notesand Assumptions..................................................................................32 City of Cordova Heating Expenses................................................................33 Feasibility Study & Design Estimates...........................................................36 Chipper Cost & Descriptions.........................................................................41 BurnPile Audit..............................................................................................46 RequiredCity Permits....................................................................................48 Lettersof Support..........................................................................................49 /o ALAHSKA ENERGYAUT 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/RE Fund 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 rovided 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 GrantBudgetlnstr.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 17 9/2/2008 /ORITY � ALASHKA Renewable Energy Fund Grant Application SECTION 1 —APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Native Village of Eyak Type of Entity: Federally Recognized Indian Tribe Mailing Address P.O. Box 1388, Cordova, AK 99574 Physical Address 110 Nicholoff Way, Cordova, AK 99574 Telephone Fax Email 1 907-424-7738 907.424.7739 6ruceCdnvevak.ore 1.1 APPLICANT POINT OF CONTACT Name Title Bruce Cain Executive Director Mailing Address P.O. Box 1388, Cordova, AK 99574 Telephone Fax Email 907-4247738 907-424.7739 bruce nve ak.or 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); X 1.2.2. Attached to this application is formal approval and endorsement for its project by Yes its board of directors, executive management, or other governing authority. If a or No collaborative grouping, a formal approval from each participant's governing authority is necessary. (Indicate Yes or No in the box ) X 1.2.3. As an applicant, we have administrative and financial —stems Yes managements and follow procurement standards that comply with the standards set forth in the grant or agreement. No X 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached Yes grant form. (Any exceptions should be clearly noted and submitted with the or application.) No AEA 09-004 Grant Application Page 2 of 17 9/3/2008 �40= ALAS�KA Renewable Energy Fund Grant Application ISECTION 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. The Native Village of Eyak is proposing to conduct a feasibility study to design and construct a biomass district heating facility using the wood and cardboard waste generated in the community. This project includes three phases, the feasibility analysis, the final design, and the construction phase. We will perform a feasibility analysis on the biomass resources available in the community and choose appropriate buildings based on their heating load. We will then design a boiler facility, and construct a system that will heat buildings using affordable renewable energy. 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 Astronomical heating costs are inspiring new creativity in planning for sustainable and affordable energy sources for our community in Cordova, Alaska. Affordable fuel sources have been identified: waste cardboard that is currently taken to the landfill and wood waste generated at the community bum pile. Historically, the community has squandered these potential energy sources. The bum pile will better serve the community when transitioned from a community dump into local -source heating fuel. The community will also save valuable landfill space by diverting waste cardboard into a fuel source. The purpose of this project is to 1) quantify 2) design and 3) deploy a system that will re -use these valuable resources currently being wasted. The wood and cardboard waste will become fuel for a biomass boiler to heat our community through a district heating network. Potential buildings include the city hall, pool, hospital and schools. We need financial assistance to fully develop this project, which can then become self- sustaining. The feasibility study will quantify the available BTUs that can be generated by our waste stream, and the potential methods of fuel treatment and system equipment. The data will help determine which buildings we can start with and create parameters for the system design. The design will determine required purchases — the boiler, wood chipper and other components, and identify required integration work. The deployment phase will manage the construction and commissioning of the system and equipment to integrate it with the existing system. The City of Cordova owns and operates the burn pile and has endorsed this project. The Cordova School District is also very supportive of the project. See letters of support on pages 49 and 50. 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. Funding is needed to perform a feasibility study, design a system and construct a district heating facility. The Native Village of Eyak is requesting funding from the Alaska Energy Authority for these tasks. The feasibility assessment is estimated to cost approximately $50,000. Another $125,000 will be needed for contractual expenses associated with the system design. A biomass AEA 09-004 Grant Application Page 3 of 17 9/3/2008 reALASKA Renewable Energy Fund ENERGY AUTHORITY Grant Application heating system of this scale costs approximately $1.6M including the boiler equipment and shipping, site development and construction of the boiler building, and labor to integrate it with the current oil fired system. Other costs include $100,000 for materials and fees associated with permitting, and $250,000 for a wood chipper (includes shipping) to prepare the waste wood and cardboard for fuel. The personnel needed for this project include two full time employees, a project manager and a biomass fuel processor. Local contributions include the donated wood and cardboard waste; in -kind match from the applicant consists of the use of local facilities and equipment and one part time employee all of which is valued at $100,750. The project cost total is the amount requested in this application $1,850,320. The project will be sustainable for the life of the boiler and is budgeted to save up to $1,2M per year without any further grant assistance required. This savings estimate assumes that all of the waste biomass will offset oil consumption and doesn't take into consideration overhead costs. When factoring in the operation and maintenance expenses, required labor, unusable fuel and weather challenges the calculated savings will be slightly lower. 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. This project will be valuable to the community, both economically and culturally. The community will save money through the reduction of heating costs by using affordable biomass instead of expensive heating oil. We will use the wood generated at the community bum pile and the community's waste cardboard for fuel. These are resources that would otherwise be wasted in a time of great need. Using a 75% efficiency rate for the boiler, approximately 28.8 billion BTUs of heat are available from the biomass waste in the community, which is equivalent to an estimated 242,000 gallons of fuel oil. The potential total savings to the community could reach $1.2M. Through this biomass heating project, we can provide greater energy security for our community, as the demand for energy here is greater than the supply. Other benefits include the increase in local employment opportunities. Temporary jobs will be created during the feasibility, design and construction phases of the project and permanent jobs will be created to process the waste wood and cardboard and operate and maintain the boiler. The biomass waste district -heating project will also be very beneficial for the environment. The biomass boiler system will divert consumption from the oil -based heating systems thus reducing fossil fuel combustion and decreasing emissions. In addition, biomass heating is considered carbon neutral, where the carbon cycle is balanced. The biomass extracts the same amount of carbon dioxide from the atmosphere for its growth as it releases into the atmosphere during combustion. Therefore, biomass -fired systems make a major contribution to climate stability. The wood boilers currently available are highly efficiency and have low emissions. By generating energy from locally available fuels, this project will be an important means for our community to transition to clean, renewable energy sources. We will be diverting waste away from the landfill and improving air quality. By eliminating the burn pile we will decrease harmful air pollutants and remove an aesthetic eyesore. Finally, locally produced fuel for renewable energy adds to cultural independence and self-sufficiency and builds local pride and ownership. 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. $1,850,320 2.5.2 Grant Funds Requested in this application. $1,850,320 2.5.3 Other Funds to be provided (Project match) $27,750 AEA 09-004 Grant Application Page 4 of 17 9/3/2008 Imo ALASHKA Renewable Energy Fund Grant Application 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $1,878,070 2.5.5 Estimated Benefit (Savings) $1,221,862 2.5.6 Public Benefit (If you can calculate the benefit in terms of Annual savings $1,221,862 dollars please provide that number here and explain how assumes all biomass you calculated that number in your application.) generated will divert oil usage. Total fuel oil displaced for the project is 241,953 gallons. Five year Future savings to our communi is $3,163,57. AEA 09-004 Grant Application Page 5 of 17 9/3/2008 /c KA ALASRenewable Energy Fund GK::D ENERGY AUTHORITY Grant Application 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 Native Village of Eyak will manage the grant. A project manager will be hired to oversee the three different phases of the project; feasibility, design and construction. This person will need experience in selecting and hiring contractors, personnel management, grant management, and biomass heating. The Native Village of Eyak has a solid management team. Bruce Cain, CPA is the executive director of NVE and will insure the project will be implemented according to schedule and budget. Scott Madison, Projects Coordinator has a substantial background in managing construction projects and hiring contractors. Autumn Bryson, Environmental Coordinator has extensive experience with renewable energy, environmental permitting, and natural resource management. See attached resumes on page 18. 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.) Q2-Q3 2009 Feasibility Study (3-4 mo) -Waste stream analysis of burn pile and cardboard waste - Determine heating value of biomass waste - Investigate potential buildings - Determine heating loads for those buildings - Choose appropriate buildings in which to install the biomass heating system Q3-Q4 2009 Design District Heating System (4-6 mo) QI-Q4 2010 Construction and integration of District Heating Facility (12 mo) Q4 2010 Project Final Report 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them This project has 3 key tasks. The tasks and schedule are as follows: 1. feasibility study 2. system design 3, construct facility The first and most important step of this project is to perform a feasibility study for supplementing the oil based heat with a biomass heating system. Items to be addressed in the feasibility study will include the availability of wood and cardboard to use as fuel, the heating value of that fuel, the capacity of the biomass fuel to heat community buildings, and the buildings most suitable to transition to biomass heat based on their heating loads and the biomass available. The feasibility study will investigate the biomass waste stream to assess the type, form and availability of wood and cardboard to determine the heating value of the biomass available. The study will review the specific needs and opportunities for wood heating systems This study AEA 09-004 Grant Application Page 6 of 17 9/3/2008 /o ALASKA Renewable Energy Fund ENERGY AUTHORITY Grant Application will also describe biomass heating alternatives based on the economic analysis and discussions with system providers. Wood boiler suppliers will be contacted to refine the system selection and cost assumptions. The feasibility study will determine which buildings will be suitable to heat with biomass, give an estimate for the size and capital costs of the system and evaluate the operating and investment costs and potential economic benefits. The second aspect of this project is to design an appropriate wood boiler heating system. The system will need to take into account the heat load for the buildings, the best location for the boiler facility, and the appropriate boiler model. Once a model has been selected an engineered system design will be needed to integrate the new system in with the current system. The final step of this project is to construct the heating system designed by the engineers. This will entail constructing a facility to house the boiler and performing the installation of the infrastructure needed to integrate it with the current system. 3.4 Project Resources Describe the personnel, contractors, equipment, and services you will use to accomplish the project. Include any partnerships or commitments with other entities you have or anticipate will be needed to complete your project. Describe any existing contracts and the selection process you may use for major equipment purchases or contracts. Include brief resumes and references for known, key personnel contractors and suppliers as an attachment to your application. Personnel will be needed to manage this project, ensure timely data collection, contract engineers and designers, and construct the facilities. We will hire contractors based on our standard policies and procedures for putting work out to bid. Contractors will be hired to conduct the feasibility study, design the system and construct the facility. We have received preliminary quotes from contractors on what it will cost to conduct a feasibility study and design a heating system. A wood boiler and chipper will need to be purchased and delivered to Cordova. The type and size of boiler and chipper to be purchased will be determined at the completion of our feasibility study. Personnel will be trained on the operation and maintenance of the wood boiler and chipper. A contractor will be used to construct the facility that houses the boiler and integrate it with the existing system. 3.5 Project Communications Discuss how you plan to monitor the erqject and keep the Authority informed of the status. The Native Village of Eyak will have project reports for the three phases of the project. We will keep detailed notes on the whole process from feasibility to implementation. These biomass heating programs are beginning to pop up all over Alaska and we want to apply the lessons already learned and pass on what we learn to others. We will keep records on the amount of wood generated and used to heat the community buildings. We will also track the money spent compared to the money saved from transitioning to biomass heating. These records will be available for the Alaska Energy Authority to view at any time. The project manager will also be involved in the AEA biomass working group and report status updates to that forum. This will allow a tight networking of similar projects across Alaska. We have an approved accounting and management system and meet the requirements of a Mature Contractor under the Indian Self Determination Act and have operated our own self governance programs through a government to government contact with the United States for many years. All transactions will be approved and processed according to our standard policies and procedures. Progress reports will also be submitted to the Alaska Energy Authority that includes the status of the project, the funds expended, and the funds remaining in the budget. We conduct an annual single audit of all the AEA 09-004 Grant Application Page 7 of 17 9/3/2008 /� ALENERGASHKA Renewable Energy Fund Grant Application operations of the Native Village of Eyak. This report will be available to the Alaska Energy Authority. We will also submit all required grant and project narrative and financial reports in a timely manner as outlined in the grant conditions. 3.6 Project Risk Discuss potential problems and how you would address them It is possible that the oil prices will decrease enough that a biomass heating system will not be financially viable at this time. However, we feel that the price of fossil fuels will likely continue to fluctuate making biomass heat an investment in energy security for a stable and sustainable future. Another potential problem that may arise with this project is equipment malfunctions. To avoid faulty equipment, we plan to research each system thoroughly and talk with communities that have installed similar systems to see what they learned and what they would have done differently. The Native Village of Eyak will also address equipment breakdown issues by performing preventive maintenance and training operators on safe and proper ways to operate the boiler. We will do regularly scheduled safety inspections and keep the equipment well maintained. We prefer to purchase a boiler that has an automated system with an alarm that will alert us of any malfunctions or maintenance issues. The boiler will also come with a good manufacturer's warranty that will cover manufacturing defects. We may consider a maintenance contract with a qualified system maintenance contractor. 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. The burn pile is located at Fleming Spit, two miles northwest of town. A preliminary waste stream analysis was performed on the bum pile this summer. The burn pile generates everything from scrap wood to brush. A chipper will be needed to convert this wood into a usable form. It is estimated that the bum pile produces approximately 4 cords of firewood per day, or 1,460 cords per year. If there are 14.5 million BTUs per cord then approximately 21.17 billion BTUs are produced per year at the community bum pile. If those BTUs were instead used to heat community buildings at a 75% efficiency rate then approximately 133,000 gallons of oil could be saved. At the current price of $5.05 per gallon, the community could save $674,000 by diverting the burn pile waste to usable fuel. The City of Cordova produces approximately 3,000 tons of waste per year; an estimated 35% of that waste is burnable materials such as cardboard and paper, which gives about 1,050 tons of cardboard waste per year that can be burned for heat Cardboard AEA 09-004 Grant Application Page 8 of 17 9/3/2008 IoALASKA Renewable Energy Fund Grant Application contains approximately 8,200 BTUs/lb. Therefore, approximately 17.22 billion BTUs of heat are available from the waste cardboard in the community. One 500 lb bale of cardboard is equivalent to the BTUs produced from burning 29.7 gallons of #2 heating fuel. If burning cardboard instead of oil offsets 108,000 gallons, then approximately $548,000 could be saved by burning waste cardboard. The amount of fuel oil replaced depends on the heating value of the biomass fuel and the efficiency of the wood boiler. The estimated fuel oil savings using an 85% efficiency factor for fuel oil is 242,000 gallons and will produce an annual savings of $1,2M at our current price of $5.05 per gallon. See attached break even analysis on page 31. One disadvantage of using wood boilers is that they are more expensive to install, own and operate than oil boilers. Fuel savings will likely compensate these higher costs. 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. Community buildings in Cordova rely on individual oil furnaces for heat. These are older, inefficient heating systems. In 2007, the City of Cordova budgeted $147,425 for the City Hall, pool, and hospital in heating expenses; $36,642 for the City Hall, $55,000 for the pool, and $55,783 for the hospital. However since the price of heating fuel increased, the city went over the budgeted amount. In the 2008 fiscal year the Cordova School District spent $203,960 in heating expenses; $99,826 for the elementary school, $4,458 for the district office, and $99,767 for the high school. To offset these escalating and unsustainable heating expenses, biomass heat is an affordable alternative. This project will provide a first step toward solving our oil crisis and has the potential to save the community millions of dollars in the long term. 4.2.2 Existing Energy Resources Used Briefly discuss your understanding of the existing energy resources. Include a brief discussion of any impact the pr2ject may have on existing energy infrastructure and resources. The existing energy resources used are heating oil. Currently all of the City buildings use oil heat. In 2008 fiscal year, the school district's heating expenses were $203,960. At an average cost of $5.00 per gallon, the school district purchased about 40,792 gallons. In 2007 when fuel was at an average price of $4.00 per gallon, the city budgeted $147,425 purchasing approximately 36,856 gallons of fuel oil. The district heating project has the potential to decrease the demand for oil and thus decrease fuel costs. The project is intended to supplement, not replace the existing energy infrastructure. The oil -fired system will still be available for peak demand or backup. Using wood and cardboard waste for heat instead of oil could displace approximately 241,953 gallons of fuel oil. This project could potentially provide enough heat to replace the oil for the school district and City buildings. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. In 2007 the City of Cordova budgeted approximately $147,425 on heating expenses; however, we know that the City went over budget. The Cordova School District spends approximately $203,690 on fuel costs. Combined, oil heat is costing Cordova at least $351,115 per year. This AEA 09-004 Grant Application Page 9 of 17 9/3/2008 �© ALAS�KA Renewable Energy Fund Grant Application project would have a positive impact on the City's energy costs. If the city opted to use biomass heat instead of oil, this project has the potential to displace 241,953 gallons of heating oil. That is enough to replace all of the city's oil consumption. The City will save money by utilizing affordable biomass fuel instead of astronomically expensive heating oil. Approximately $1.2M dollars worth of heat is generated from our waste products, which could be converted to community savings by replacing heating oil with biomass for energy use. By showing the community the benefits of transitioning to biomass, we hope this program will inspire the community to transition to renewable energy for residential purposes as well. AEA 09-004 Grant Application Page 10 of 17 9/3/2008 /ALASKA Renewable Energy Fund 41= ENERGY AUTHORITY Grant Application 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 There is an abundant amount of wood and cardboard available in Cordova. Currently this valuable resource is being wasted. We want to take advantage of this easily accessible and inexpensive form of energy. One cord of wood produces approximately 14.5 million BTUs. One ton of cardboard produces approximately 16.4 million BTUs. This project has the potential to generate approximately 1,460 cords of wood and 1,050 tons of cardboard. The total generation of energy from utilizing these waste products is over 38 billion BTUs. At an efficiency of 75% there is the potential of 28.8 billion BTUs available for heat generation. By utilizing this abundant energy generated from burning biomass, we can heat our buildings in a cost-effective manner. This is the perfect solution to overcome the high cost of energy. First we will need to conduct a feasibility analysis; a feasibility study will determine how much biomass fuel is generated from our waste and examine the heat loads for the different community buildings. We want to install the district heating system where we will get the most "bang for our buck." To determine which buildings have a suitable heat load, we will examine their oil consumption, square footage, and energy efficiency. We will then determine which buildings will be suitable for the wood boiler system. We will hire mechanical and electrical engineers to design the system. The ideal system will provide heat to as many buildings as possible while still being cost effective. After the system has been designed and the city has approved the design, we will begin construction. The new biomass system will supplement not replace the current oil based system. The fuel for the system will have to be handled and processed. A wood chipper and trained operator will produce the fuel for the boiler. The operator's salary and the chipper fuel can be offset by the money saved from the decreased heating costs. This will keep the revenues in the community instead of shipping them overseas. 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 of Cordova owns the community buildings in which we wish to install a district heating system. We won't know which buildings will be connected to biomass heating system and where it will be placed until the feasibility study is complete. The City is very supportive of this project and has signed a letter showing their support, see page 50. They are very excited to see the outcome of the feasibility study and system design. No other land ownership issues are anticipated. AEA 09-004 Grant Application Page 11 of 17 9/3/2008 ALASKA Renewable Energy Fund /dff= ENERGY AUTNORRY Grant Application 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 A building permit may be required for this project. Since the city is the government body that issues the permit and they are in support of this project, we don't anticipate problems obtaining the proper building permits. Permits may also be required to install underground heat lines. A `Road Opening Permit' would be required if any of the underground lines require excavation of a city street. Roads under the jurisdiction of the Alaska Department of Transportation would have to be permitted through their office. It is unlikely that we will need an Air Quality permit. The currently available systems have emissions that are below the standards required for an air quality permit. The project manager will be responsible for applying for the proper permits and ensuring that they are obtained in a timely manner. Address whether the following environmental and land use issues apply, and if so how they will be addressed: • Threatened or Endangered species • Habitat issues • Wetlands and other protected areas • Archaeological and historical resources • Land development constraints • Telecommunications interference • Aviation considerations • Visual, aesthetics impacts • Identify and discuss other potential barriers This project will have no impact on threatened or endangered species. No impacts to habitat are anticipated. All wetlands and protected areas will be avoided during the construction phase. No known archaeological or historical resources are associated within the project boundaries. Aesthetic and visual impacts may occur with the construction of a new building; however, the building will be constructed in an urban setting where development has already occurred so the visual and aesthetic quality will not be significantly altered. No additional visual or aesthetic impacts are likely to occur. The project will be beneficial to the environment by removing the bum pile from an otherwise aesthetically pleasing area. The removal of the bum pile will actually improve the air quality of the surrounding area, as it has been documented that plastics have historically been burned releasing harmful dioxins into the atmosphere. No telecommunications interference is associated with this project. Land may need to be developed in association with this project depending on whether a new facility needs to be constructed to house the wood boiler. Ideally we would like to house the boiler in an existing structure to cut down on construction costs. If an existing structure is not available, a new facility will be constructed. 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. AEA 09-004 Grant Application Page 12 of 17 9/3/2008 rALASKA Renewable Energy Fund ENERGY AUTHORITY Grant Application 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 enerqy s The anticipated cost of this project is $1,850,320 for all three phases of the project. Matching in - kind funds in the amount of $27,750 will be provided. Applicant matching costs will be provided as follows: use of meeting space for training, $2,000, based on our standard charges for use of meeting space; use of trucks for local transportation, $13,500, based on the rental value of the trucks net of fuel and repairs; and one part time employee estimated at $12,250. The other funding source is the contribution of the fuel for the project estimated to be a $73,000 value at $50 per cord. Total project cost is $1,850,320. The projected capital costs for this project are estimated at $1.6M which includes the purchase of the chipper and boiler and construction and integration. The development costs for the project amount to approximately $230,000 and include the contractual costs for the feasibility study and design phases. See attached financial analysis spreadsheets on page 31 and budget on page 24. This project is cost effective and is a good use of the Renewable Energy Fund dollars. The project can be implemented within two years and will have a positive impact on the high energy costs plaguing our community. The up front cost for starting this project will be a one time expense. The project will be self sufficient after the initial investment. Savings generated from the reduced heating costs will be reinvested into the project to pay for operation and maintenance and to sustain the on -going program. 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 A facility to house the wood boiler may need to be constructed in association with this project. Operation and maintenance costs for the boiler are estimated to be $24,000 for air filters, piping, pumps, etc. One full time employee will be needed for handling and processing the biomass and delivering the fuel to the facility. Boiler maintenance is only required for an hour once or twice a day for most automated systems and is usually done by an already employed maintenance staff person. After the first year the O&M costs will be paid for with the money saved from heating expenses. Contributions will be made from the users for cost recovery. 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 qrant-funded proiect N/A on power buyers and power purchase agreements. AEA 09-004 Grant Application Page 13 of 17 9/3/2008 eU sr.-D ALASKA Renewable Energy Fund 4K= ENERGY AUTHORITY Grant Application The project will displace 242,000 gallons of heating oil per year. Estimated annual savings to the community is $1.2M from utilizing free biomass heat instead of purchasing fuel oil. 4.4.4 Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. The BTUs available for the project were calculated by estimating the amount of waste biomass in the community. See break even analysis on page 31. The specific configurations and operation and maintenance costs for each municipal building's heating system are unknown at this time. This information will be determined during the feasibility study. The annual heating fuel usage was estimated based on the amount of money the City has allocated towards heating expenses and the average cost of heating fuel. See the City's and School Districts heating expenses on pages 33 through 35. AEA 09-004 Grant Application Page 14 of 17 9/3/2008 /n A�S� Renewable Energy Fund EE= ENERGY AUTHORITY Grant 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 project is planned to be sustained for the life of the wood boiler. Our main goal is to reduce the city's heating costs by using burnable biomass waste products available in the community while we are in a crisis mode from the extreme cost of heating fuel. Burnable cardboard and waste wood combined will provide approximately 28.8 billion BTUs of heat. These are renewable resources that will continue to be available in the community for the life of the project. Operation and maintenance costs are higher with a wood fired heating system however these costs are minimal compared to the savings generated from transitioning from a oil based heating system to a more sustainable biomass heating facility. The savings from the reduced heating costs will be used for the operation and maintenance expenses and to pay the salary of the fuel handler. 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 and assumptions are attached on page 31. The analysis concludes that this is a sustainable project. The project will cost $1,850,320 and has the potential to save the community approximately $1.2M per year. The money saved from the reduced heating expenses can be used to support the project long term. This project will provide permanent local jobs in the community and will also provide several temporary jobs in the support sector. The feasibility analysis will give us more accurate numbers on the actual expenses versus the projected savings. 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 district heating project will be very beneficial for Cordova. With a transition to biomass heat, the amount of fuel displaced will be 242,000 gallons. At $5.05 a gallon this amounts to an astounding $1.2M in savings. This money saved can be reinvested into the community. This project will provide much needed employment opportunities in Cordova. This project will also be beneficial to the environment through the reduction of emissions from eliminating the bum pile and reduced oil usage. Fossil Fuel Emissions reduced per year are as follows: AEA 09-004 Grant Application Page 15 of 17 9/3/2008 © ENERGY ALASHKA Renewable Energy Fund Grant Application Emissions Avoided Oil Diverted (gal) CO (Ibs) S02 (Ibs) NOx (Ibs) 241,953 1,209.77 1,717.87 4,839.06 Emission factors (Ibs/gal) CO — 0.005 S02 — 0.0071 NOx — 0.02 Emission factors are from EPA AP 42, 1.3 Fuel Oil Combustion 9/98 The elimination of the burn pile will also reduce the emissions of harmful dioxins released from burning plastic. The Bum Pile Audit conducted last summer documented plastic and tire burning. By removing the bum pile we will encourage the community to dispose of their waste properly. 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. of budget costs the form - We are very committed to this project; our community's energy security is depending on it. We have been submitting similar grants for this project for several years and are determined now more than ever to get it funded. We are requesting $1,850,320 in grant funds for the initial startup costs. We will invest our time and support equipment into the project. Our in kind contribution amounts to $27,750 in equipment usage and employee time. See attached budget work sheets on page 24 and break even analysis on page 31. AEA 09-004 Grant Application Page 16 of 17 9/3/2008 /ORITY ® AENELASRGYAUTHKA Renewable Energy Fund Grant Application 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 Bruce Cain Signature B.a , Title Executive Director Date November 7, 2008 AEA 09-004 Grant Application Page 17 of 17 9/3/2008 /4'0= ALASKA Renewable Energy Fund E. ENERGY AUTHORITY Application Cost Worksheet Please note that some fields might not be applicable for all technologies or all project phases. Level of information detail varies according to phase requirements. 1. Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. 28.8 billion BTUs from biomass fuel 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 Railbelt' grid, leave this section blank) i. Number of generators/boilers/other Oil -fired boiler in each building ii. Rated capacity of generators/boilers/other iii. Generator/boilers/other type iv. Age of generators/boilers/other v. Efficiency of generators/boilers/other varies from building to building Oil -fired Unknown at this point in time More will be known after the feasibility study b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor none ii. Annual O&M cost for non -labor Unknown, to be determined from feasibility study 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] d) ii. Fuel usage Diesel [gal] Other iii. Peak Load iv. Average Load v. Minimum Load vi. Efficiency vii. Future trends Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] 80,000 gallons ii. Electricity [kWh] 1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. RFA AEA 09-004 Application Cost Worksheet revised 9126108 Page 1 ai /® ALASKA Renewable Energy Fund 40 -` ENERGY AUTHORITY iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu) v. Wood [cords, green tons, dry tons] vi. Other a) Installed capacity b) Annual renewable electricity generation i. Diesel [gal or MMBtu] ii. Electricity [kWh) iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] Approximately 1,460 vi. Other a) Total capital cost of new system $1,397,466 b) Development cost $228,892 c) Annual O&M cost of new system $75,000 (1 FTE+O&M of boiler) d) Annual fuel cost Included in O&M costs 5. Project Benefits a) b) c) Amount of fuel displaced for i. Electricity ii. Heat 241,953 gallons iii. Transportation Price of displaced fuel Other economic benefits d) Amount of Alaska public benefits $1,221,862 Local employment keeps money in the community The project has the potential to displace 241,953 gallons of heating oil. Estimated annual savings to the community is $1,221,862. The future value over a 5 year period of this annual benefit to our community at a 6% rate is estimated to be $3,163,571. The return on the grant fund requested is estimated at 75% and the break even period is 16 months. RFA AEA 09-004 Application Cost Worksheet revised 9126108 Page 2 ®ALASKA Renewable Energy Fund �- ENERGY AUTHORITY 6. Power Purchase/Sales Price a) Price for power purchase/sale N/A 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio Payback a 18 months RFA AEA 09-004 Application Cost Worksheel revised 9126108 Page 3 a3 Er 000 0' m Q v 0 r v r, Lr rb DO N C LL L L O u O o 0 0 c o Ln o — c� C 9 C lD lD V N Y � = J LL u a+ N � N J � LL N LL W O O n N N V1 Lo 00 i W C O O lL LL L O m a O O 3 Y � N a N c C no a O rn NCU N @ rU O Y o E N m N N ate+ U N W n a H .-I N M i 0 0 0 0 0 0 0 0 N O O O O O O N N LO O O O O V M N N O r- Lr O M O to n N n O N Ln M V1 ci W c-I O 0 0 0 0 0 0 a — ��, L n' O O O O 0 N aa c m 0 ri N O O O O rri N I N 0 0 Lr p t—I t—i o m O 06 rl L O U. d 'II m 0 O LU Q Q LLLL w M 2 N N t C Y Q L c L QJ .fl Q L E > Y V O O c O o a E n00 E a O U N Y L w m o c c o a E Y _0 °o LL u a C C C N L O m w O mpQj L u w O C C N LL Q O U� :5 o a v E Q)° a �'. o °- c O O o a a C o V a a o Y r a c r u ys, N 'o C vi m N t Y w> > u m :EO O C N 1 [1 C m m 2 co L O C IBM b m F m yi c O_ w N Y C N c 61 a [1 C E m au u c C m E o a 3 � w N X a m Y V � c 0 to y c m i LL H N Q� Q E N W z N m L Q 0 a 04 0 + U -O O 00 > m 0 v -o 0 E ° o E w � N > m a yd � fl :■ ®■ In ■ O LL CD a� v m d 0 C6 Q W Q Q U. w 0 0 0 0 0 0 o v O N C LO lD LL T 00 N 0 0 O O 0 C O 0 W 0 0 O O O N w im N O c 0 u .l U Y L m N a 0 L v Q O � co 0 Y b cu m a E m = u E 0 c O ` o W 7 C 0 'a 0 E a 3 u0 �a 15 W a a 3 in m 0 s El O O O O a+ ^ 0 0 0 0 Q N Q ly Q 7 v 0 O L!1 O M cc H W 0 L O O u C O O O 000 N N a r m m E 0 0 r w m o O Ln Ln N N N O o aC v C 0 0 m m In n N N1 LL !'I C 0 N y u f0 L D N m C N N Q U u _ c L f0 V� N 0 O p O 0 O o I*i N N O O O O O 0 0 0 0 0 0 O o m Lt7 O N � VI d u Y L L U v 0 O C tL0 C � m O u H to T L Y y L 0 o- a U O a In 0 N a CO 'i O LL d m m v O O O) O Q W Q Q U. w U The Native Village of Eyak Tribal Council P.O. Box 1388, 509 1" Street Cordova, Alaska 99574-1388 Phone (907) 424-7738 Fax (907) 424-7739 Resolution 2008-10-03 A RESOLUTION BY THE NATIVE VILLAGE OF EYAK IN SUPPORT OF A GRANT APPLICATION TO THE ALASKA ENERGY AUTHORITY TO DEVELOP A DISTRICT HEATING PROJECT WHEREAS: the Native Village of Eyak (hereinafter "Tribe") is a federally recognized self-governing tribe; and WHEREAS: the Native Village of Eyak is the governing body of the Tribe; and WHEREAS: The Native Village of Eyak is faced with astronomical costs for energy, and WHEREAS: The state of Alaska has appropriated funds to address renewable energy projects, and WHEREAS: The Native Village of Eyak has wood and cardboard waste available, and WHEREAS: The Native Village of Eyak has identified the need to generate energy from the wood and cardboard waste, and WHEREAS: The Native Village of Eyak will design a district heating project that will utilize the wood and cardboard waste as fuel, and WHEREAS: The Native Village of Eyak Traditional Council views participation in this project as consistent with the goals of the Tribe. NOW THEREFORE BE IT RESOLVED: That the Native Village of Eyak Traditional Council authorizes and fully supports this application that requests a grant from the Alaska Energy Authority, BE IT FURTHER RESOLVED: That the Native Village of Eyak Traditional Council authorizes Executive Director Bruce Cain as the representative point of contact for this project; and BE IT FURTHER RESOLVED: That the Native Village of Eyak Traditional Council states that we are in compliance with all federal, state, and local laws including existing credit and federal tax obligations. CERTIFICATION: I, hereby certify that 1. Robert J. Henrichs am President of the Native Village of Eyak Traditional Council, and the Council consists of 5 duly elected members, and that this Resolution No. 2008- 10-03 was considered and A Vrc(Z_ by the council on hCiOOM �tk 0mdt and that the vote was �k— For, and _6 Against, and _tk� Abstaining and that the foregoing resolution has not been rescinded or amended in any way. ki Ix i $\ t* Robert J. Henriclif ',/10egiddnt Date tn�� —�► — Darrel Olsen, Secretary -Treasurer Date laoI Native Village of Eyak Cordova Biomass District Heating Project Match Detail Use of Board Room for training/meetings In kind value per day Days (non-consecutive) Value Environmental Coordinator at 25%time $49K including benefits/tax value to project Rental value of 1 ton crew cab diesel truck Number of trucks provided to the project Rental Value Per Day Days Per month Months Value to project 100 20 2000 For Training/meetings 0.25*49000 12250 environmental/permitting 2 25 22.5 12 13500 local transportation Note, repair parts and fuel are being requested in the grant. The in -kind is for the hourly usage value for the trucks net of fuel and repair parts. Value of wood Cords 1,460 value in log form per cord 50 Value to the project 73,000 Fuel Total Match 100,750.00 Match provided by Applicant: Math provided by others (City of Cordova) Total Match 27,750 73,000 100,750 Source NVE Source NVE Source NVE Source City of Cordova O O M N O 00 UD CO ' O� O O O O N O N N O N 0) Ol N M 1� 00 00 M N 0 0 0 0 0 Oi .0 O u1 O 0 O 1l N O^ O 0 00 0 �/1 ✓1 O '6 00 W O O O Oi W Ln H i N m U O O O c 00 O 00 ON 00 to O O O O N O 0) rl k l0 a 0 0 O M O 00 0 a ul w O .-� O O' O O O Oi rri en r!1 O Om N n ro H N m 0) O LOI) 0000 .�-I .M-I N tn M t ` c 00 � ri lf1 m N i N T u @ u N C �O Q c a W � N Y � � 0! ca O n O m c O vO n v m V w O w N %1 ti m Q W Z m C O U cc m 31 N m m 0 0 0 o E ° o 0 0 0 O 0 0 0 n N O 00 M O O �D O a 0 O 0 ti N f Y f0 d N C 0 YY O. d C Y C Y1 A N 3 a" W p N 04 U Z f6 O u C N O y C >- 0 O u 7 Y m z3� co �a Printed by: Autumn Bryson Title: Fwd: RE: heating costs Wednesday, November 05, 2008 10:06:59 AM Page 1 of 2 From: q Bruce Cain Sat, Oct 18, 2008 6:27:34 AM 4 "Scott Hahn" <citymanager@cityofcordova.net> Subject: Fwd: RE: heating costs To: 4 Autumn Bryson @ Hahn, Scott 6'' Koplin, Clay fad? Nygaard, Jim Autumn and all. This email was sent by Scott in June of 2007. There were actuals on the school and the hospital but not on the pool or city hall. If you look at the budget variance for the year at the hospital, and assume that everyone got hit the same, you could make some guesses. Adding up the budgeted and actual numbers we know the total as of June 2007 was 353,316. This is a guess especially on the pool. Mabe at this point, Scott has some better actual numbers for FY 07 on the pool and city hall. At any rate, the price is way higher now than June 07. So, hopefully we have some new data as well. I recall that Clay said he worked on some cost data for the pool when he was on City Council. Maybe Clay can find those numbers or knows where or how to compute them. Thanks everyone. I appreciate your help on this. bruce ----- Original Message ---- Not right now because we buy in bulk and its hard to know if what we spent to date means we still have a full tank or empty. Scott -----Original Message ---- From: Bruce Cain fmailto:bruce(a),nveyak.orol Sent: Monday, June 04, 2007 4:27 PM To: Scott Hahn Cc: pmcintosh(a)denali.00v Subject: Re: heating costs Thank you Scott, this is very helpful. Do you have any numbers on actual cost for the pool or city hall? "Scott Hahn" <c!tymanager cDcitvofcordova.net> writes: Bruce City hall is budgeted for $36,642, the pool budgeted at $$55,000, the >hospital ions budgeted at $55,783 but has spent $102,400 already, the >school spent $159,574 for the fiscal year now ending. Good luck! >Scott A. Hahn >Cordova City Manager B r �<oaowo—r r-ws��-t I >rovmrnl I jcOo�ol LL 0m I LL�mmol o w >Mvccf! }� LL� 'mrvl I LLo�mwcl m mo mol I nomw LL }MNNcc I I >Nno�l "��,�'NI I LLO'Ool om�m�°ml } N N N I mM��`I V I LLWV0�I } M r• O i I LLN d) �I to I� »69 IUovMioom�l I`vMOM>I I�}e-MNw^I Iv}vv oml I""m�to m��I IWLL —MCC I MOW Q)w I I I I Mww V I orn nv y�mva I }ooe- I o LLM I I LLtow0 I U ANw fA (A fA I I fA f9 e- I C g I I I I E Ou m ocn F mI m I Lu 2 -6xF2I I =1 xF�I I mn SI i ° I i ° I LL❑ w Oda mM MIS r, O V to ww C M Iq M wNp w K0 V r`wrne-w�(JO f N N w U- N V f0 r Mm M w 1� W � m N W LL a 11') h r` m w N MM O '- O t+OJ b9 fA fA fA � fA fA EA fA fA fA � fA fA fA b9 fA b9 � � bo 6 Vj b9 69 1� N M M V w 0 w m t n r• M �- I� r• w M M C- w 7 m M N 7 }�wo wM a Nww M LLcovmn�m �rict�oi �i aMim }OM ON tp Ci e-tn d Ow e- LLui cc r�o$r�corooi of of ui ai v3 en ea F»f»»Fa �F»ei ss Fn m� »F»�a f»F»ei��rn�ss»o c O)NO f�wM hw(Dw I� h0 O w a tOOw Owe-[�In tnp NM 00 w w w } M a 1� I O O N 0 O M aI-: N } t m M e- M w R I� Nip N LL N e- N O r w C I� (D N tD N 1:r- N (fl to fA E9 di fA fA fA fA f9 fA fA � d3 E9 ffl fA to f9 fA � fA � � fA O �OOO�Ow wON OIfJ MN O r`t9 NN N N wN N MN M MMe-'7 OOw 1� V' V r, NN W V pM w e- 7 M *t0ON N MM im N LL } fD M N M p M R O N w O M '_ M 6 to f .6 zt w N w fA fA fA b9 fA fA fA 69 b9 fA V69 LL V lfi 1� w w I� w W OJ Q� ww to N fA fA 69 fA tl9 fA fA fA f9 f9 fA fA O Vi O d'M �fi7 r• r`e-OC-Me-� Ome- ^e-r, NMOpw�fi ln� LLbe +>ww rnwcnh'7(6rnmnvwwnwvv_ LL M N N h M M M KfV LL N a h w (6h l0 T h w h 'V O fA H3 EA fA f9 (fl Vi fA fA fA (flm� E9 fA Ni fA fA fA to fA fA fA to EA w ffl N U MN W O MMw f� �e-ONNm MOh N OI� W V OOe-e-r-w H Ow OfA OON tt NNw NMr• CeT 'O O>OJOe- Oe-O In Ntn W 7 wMMww W dme CLL •am - N CJ V M, N N O e 69 LLNm 0 m m E � _ n ✓', m a 2 a 0 E E E EZ m U w o 0m- O coLL Qn OZO 2Q m a LL 2 0 o m N M m m o o m o fA H3 fA (A fA Ofl fA di O O W O N N I� O M t• M fA aD I� N O y(P fA h O O O O O O N O O M fA fA fA h N N O (A fA A oM')�OO W �7�O7n m� O M 0 0 0 N O W fA OO 69 r N W .. d' M fA fA e- f9 fA b9 fA fA fA N E a a Z J U E E �Qm OZO-�i tiiQ��F 1O00N mNOQOiN O000 fA ffl fA�fA Ofl fA��� N N R m V O N O N �Minwonm mro NOD tONOOa t0 V 00 M 00'at OJNO 5096.646L6 O OV M V o Wh WN O� N OMMOnNNMMMN LL}ON OO aD O7 OJ OM b9 E9 V3 � fA fA fA (A fA O� �� VIClNO (QMC j O V Cl MR O p ( NIO � LL N N N N M M V M M, W Ofl Y3 69 O f W w O9 fA fA M d'NOtO Ol�hnntON }� OOh MOIL O7 M I r M O O (O O fA M 7 LL �.-�ni NCV v MMM� fA Vi fA fA V3 fA fA Ofl V3 fl3 a a 2 m E 0 E E 2� � ,o >.mn° > coi �a _ >.0 m >> d u o d m o o a, o 6 n<cnOZO�LL2Q24F t` } LL O LL N } LL O >- LL M } LL 'moNcovcnMnMcc d OV e07 M Ofl di fA fA fA � fA fA fA EA N N N O M v O O V In N NN O � 7 O N w C9 fA fA fA fA fA fA V'(A O(ON N0to O NLf M W O CFO OD O cOMR m! OO(D �ui�aom oim�o� f»ss c»v�en c»� e3 i»i»in n r N o M N O O t p N T W O O N W 7 O f` ?ONNNO t[i Op (n to (D O O m O O fA E9 EA fA Ef9 fA � f9 �- fA fA fA ? N M O M M r m W ,4RON MGM�pp OOpP� NM �MO� �6�9 fA � EA TM bN9 Ofl N (A O G N R M N R( O a M A W N U O � U a a s Z ° d o a�i o a `m m m m Y 2 �Q(0 0Z on tiQnoH Printed by: Autumn Bryson Title: Fwd: Cordova District Heat: Eyak From: 4 Bruce Cain q Brian Gray <bgray@ak.net> Subject: Fwd: Cordova District Heat To: Q Autumn Bryson Wednesday, November 05, 2008 10:15:37 AM Page 1 of 1 Wednesday, November 05, 2008 10:10:06 AM �=H=Ze �• Brian lbraylResume for Eyak.pdf 18K is this the right one? Reyna Bruce Bruce Cain Executive Director Native Village of Eyak PO Box 1388 Cordova, AK. 99574 Ph (907) 424-7738 Fax (907) 424-7739 ---- Original Message ----- Bruce Cain - In 1995 1 traveled to Cordova at the request of the interim City Manager to discuss possible energy infrastructure projects. The concept I identified that appeared to have the most potential was a biomass steam boiler located in the vicinity of the cannery. There is a significant amount of energy in the wood waste and municipal solid waste stream that could be utilized to offset fuel oil. In light of current energy prices I think this concept has more merit than ever and it should be thoroughly explored. Attached is a resume which shows my extensive experience in energy related projects. Should you choose to pursue this project I would like to work with you. Brian C. Gray, P.E., Project Engineer Alaska Energy and Engineering, Inc. Phone (907)338-3035 Fax 338-3034 3G Printed by: Autumn Bryson Title: Re: Cordova District Heat : Eyak From: i Brian Gray <bgray@ak.net> Subject: Re: Cordova District Heat To: i Autumn Bryson Wednesday, November 05, 2008 12:42:22 PM Page 1 of 1 Wednesday, November 05, 2008 12:26:20 PM v Autumn - Since we haven't even done a feasibility study yet I would need to guess high. At this stage I would estimate engineering fees at $50,000 for Phase 1 feasibility study and analysis and $100,000 for Phase 2 design. 1 would assume there would be many permits required. The most difficult would probably be the air quality. I know that electric utilities often pay over $100,000 to get air permits for diesel generators. The permitting requirements would need to be identified under Phase 1 feasibility. The lions share of the permitting could possibly be done under Phase 3 construction unless there is an extremely long timeline that would require us to start under Phase 2 design. I am sorry to be so vague. We have done many heat recovery and district heating projects including some small wood boilers but we have never done a solid waste boiler and I am sure there will be some onerous enivronmental issues. Brian C. Gray, P.E., Project Engineer Alaska Energy and Engineering, Inc. Phone (907)338-3035 Fax 338-3034 ----- Original Message ----- From: "Autumn Bryson" <abryson(c)nveyak.org> To: <bgray(a ak.net> Sent: Wednesday, November 05, 2008 11:28 AM Subject: Cordova District Heat Hl Brian, Bruce gave me your e-mail and said to contact you regarding the Cordova District Heating Project. I'm putting the final touches on the grant and I was wondering if you could give me an estimate on what it would cost for a sytem design. Also do you know if we would need to obtain any state or federal permits? Thanks, Autumn Bryson Environmental Coordinator Native Village of Eyak (907)424-7738 5� Printed by: Autumn Bryson Wednesday, November 05, 2008 4:50:29 PM Title: RE: feasibility assessment for biomass heat: Eyak Page 1 of 2 From: i "Tom Miles" <tmiles@trmiles.co... Wednesday, November 05, 2008 4:39:41 PM G Subject: RE: feasibility assessment for biomass heat To: 4 Autumn Bryson Dear Autumn, Thank you for the call regarding the feasibility of using wood for heating in Eyak facilities. I understand that Eyak is considering new and/or retrofitted wood -fired heating plants for up to six facilities for the purpose of reducing energy costs. Based on our conversation it looks like up to 60,000 gallons of heating oil per year might be saved with wood heat. An engineering assessment would include: Visit sites in Eyak including: a. Elementary and High School (40,000 gal) b. City Hall and Pool (6,000 gal) c. Gym d. Hospital and pool (10,000 gal) Assess the suitability of the sites for wood heat. Assess type, form and availability of wood. Review the specific need opportunities for wood heating systems. Size and estimate the capital costs of suitable systems. Estimate the potential economic benefits from installing wood heating systems. Based on my previous assessments on Prince of Wales Island and in the communities in the Interior I would estimate the fees and travel expenses for conducting this study to be $30,000. That would include one trip to Eyak to inspect the facilities and meet with community leaders and preparing analyses and recommendations. Kind regards Tom Miles T R Miles Technical Consultants, Inc. 503-292-0107 503-780-8185 c 503-292-2919 f tm iles(a-trm iles.com www.trmiles.com -----Original Message ----- From: Autumn Bryson [mailto:abrvson(a)nveyak.oro] Printed by: Autumn Bryson Title: Revised estimate. $12,000 : Eyak From: 5 "Tom Miles" <tmiles@trmiles.co... Subject: Revised estimate - $12,000 To: 9 Autumn Bryson Dear Autumn, Thursday, November 06, 2008 8:44:12 AM Page 1 of 2 Thursday, November 06, 2008 8:38:47 AM Thank you for the call regarding the feasibility of using wood for heating in Eyak facilities. I understand that Eyak is considering new and/or retrofitted wood -fired heating plants for up to six facilities for the purpose of reducing energy costs. Based on our conversation it looks like up to 60,000 gallons of heating oil per year might be saved with wood heat. An engineering assessment would include: Visit sites in Eyak including: a. Elementary and High School (40,000 gal) b. City Hall and Pool (6,000 gal) c. Gym d. Hospital and pool (10,000 gal) Assess the suitability of the sites for wood heat. Assess type, form and availability of wood. Review the specific need opportunities for wood heating systems. Size and estimate the capital costs of suitable systems. Estimate the potential economic benefits from installing wood heating systems. Based on my previous assessments on Prince of Wales Island and in the communities in the Interior I would estimate the fees and travel expenses for conducting this study to be $12,000. That would include one trip to Eyak to inspect the facilities and meet with community leaders and preparing analyses and recommendations. travel expenses are estimated at $2000 for a five say trip from Portland. Fees are based on five day - four days on site - site visit and six days of office work. Kind regards Tom Miles T R Miles Technical Consultants, Inc. 503-292-0107 503-780-8185 c 503-292-2919f tmiles(a)trmiles.com www.trmiles.com 90 Printed by: Autumn Bryson Title: Fwd: Morbark Grinders : Eyak From: 4 Scott Madison 4 "Wayne Watts" <wayne.watts@morbark.com> Subject: Fwd: Morbark Grinders To: 4 Autumn Bryson quote Scott Madison Capital Projects Coordinator Native Village of Eyak P.O. Box 1388 Cordova, Alaska 99574 907-424-7738 907-424-7739fax ----- Original Message ----- Thursday, November 06, 2008 8:44:21 AM Paoe 1 of 1 Thu, Nov 06, 2008 8:08:06 AM vi9 Scott, Thanks for inquiring into Morbark grinders and chippers. As we spoke about yesterday there are a couple of directions you can choose to go, so I'll give you prices on 4 different units. The two chippers I priced are a Hurricane 18 ($75,000.00) and a Typhoon 20 ($84,000.00). On the grinders I priced a 2600 Wood Hog ($195,000.00) and a 3800 Wood Hog ($360,000.00). If you would like some literature or a DVD of these units please contact me at the numbers listed below and I will be glad to send them out. If you have any other concerns let me know. Thanks again, Wayne Wayne Watts Inside Sales Toll Free: (800) 831-0042 Ext. 1420 Phone: ( 989) 866-2381 Cell Phone: (989) 854-2999 Fax Number: (989) 866-2280 E-mail: wavne.wattsemorbark.com www.morbark.com `_J O 01 v _ � N � � c N o v t O ° L 0 N y d Y H w y C t0 � N O ° O ° ' ° " m a = X = N a N .c E N a �- ° E t E J W ° N W G/ C « C N } N L C 0 a V � 3E O a v T O O c � � wv m d > E Y AV m C 0 a"O Y U -O m j p m 0 0 n C O O U m J N c L ao ry E co C � CLu O�Y m p lL C N Z o a 3 M x O C L d °i rn — '0 `d o d " QGcl TyJ W c W O• d C r Ali} LL T aCC nCC�JJJJ C G Q 'a Z 9 E m° v v° °,TEN W > > d � 6 C C d d = d o O 0 V�i x0 �O N n E tv o i U c 0 C O d W .•� C d m 3 j O N V O y a C d 0 0 2 0 0 I� F— O [C W W n 0 d Y E w d C C rnE O. 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Box 1388 4 Cordova, AK 99574 Attention: Bruce Cain, E.D. October 27, 2008 RE: District Heat Project- Required City Permits Bruce: I am in receipt of your October 20 email regarding your proposed district heating project. In particular you ask what permits would be required by the City to install the heat lines in the (City) streets. Not having a specific plan of your proposal, I can only speak in generalities. We will need to know what organization will be responsible for these utilities once in place as well as who will be installing them. Willa separate utility company be established to oversee their installation and maintenance? If some future problem arises in regards to these lines we will need to know who to contact. Additionally, each utility company is responsible for being able to locate their own particular U/G utility when other entities are excavating in their vicinity. This is usually accomplished through the use of `As -Built' drawings created at the time of construction. As with any of the other utility companies operating in Cordova, we require a `Road Opening Permit' for installing U/G utilities or any excavation activity within our street rights -of -way which commits the owner to certain requirements for repairing the streets or areas once damaged. These requirements are explained in our adopted `Development Standards for New Developments', a copy of which may be obtained at the City Hall. Again, with out a plan, I can not speak to specific's but you should be aware that the Copper River Highway (including Main Street — Ist), Lake Ave. and Whitshed Road are under the jurisdiction of the Alaska D.O.T./P.F. Any activities within these rights -of -way has to be approved by them and any U/G facility will require a permit from them. Their `Permits' office is located in Fairbanks. I trust this is an adequate clarification to you inquiry. If you have additional questions please feel free to contact me. Sincerely, /O & Scott A. Hahn, City Manager C&fD Oct � no Bo ah�e ail � 10pB 388 Co�oya � 9 S79 111 CORDOVA SCHOOL DISTRICT PO Box 140 * 100 Fisherman Avenue Cordova, Alaska 99574-0140 (907)424-3265 * FAX (907)424-3271 Cordova Jr/Sr High School (907)424-3266 FAX (907) 424-5215 Bruce Cain, Executive Director Native Village of Eyak PO Box 1388 Cordova, AK 99574 November 4, 2008 Dear Bruce, Mt. Eccles Elementary (907)424-3236 FAX (907) 424-3117 The Cordova School District strongly supports the Native Village of Eyak's (NVE) application for an AEA Renewable Energy Grant to assist your biomass district heating project in Cordova. I have enjoyed participating in the Cordova Renewable Energy Working (CREW) group that was formed by NVE to address rising energy costs in Cordova. The CREW collectively identified heating as the greatest cost to the community. A biomass district heating project using community wood and cardboard waste would be a no-brainer solution to help curb our astronomical heating costs. The Cordova School District will see direct benefits from this project. Utilizing the community's biomass waste for fuel will provide affordable heat to the school buildings and help reduce our dependence on high priced fossil fuels. The money we will save from the lower cost of heat will allow us to focus our resources on more important aspects of our children's education. The use of local, renewable energy resources to meet our community's heating needs is of staggering economic benefit when the alternative of fuel oil heat is considered. We look forward to supporting your efforts in any way we can. Sincerely, Superintendent of Schools Cordova School District -CITY-OF-CORDOVA November 7, 2008 Alaska Energy Authority 813 West Northern Lights Boulevard Anchorage, AK 99503 To Whom It May Concern: I am writing on behalf of the City of Cordova to express support for the Native Village of Eyak's plan for a Wood Waste District Heating Project. The City of Cordova agrees that a wood -burning boiler system could make great use of wood waste that is already being burned by citizens of Cordova. This idea is a move toward affordable renewable energy sources which all innovative communities are looking toward and could help cut costs for heating some of Cordova's buildings. I urge the Alaska Energy Authority to help fund the Native Village of Eyak's request in this regard. Respectfully, Timothy L. Joyce, Mayor City of Cordova