Loading...
HomeMy WebLinkAboutThorne Baywood Boiler App Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 1 of 21 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.akenerhgyauthority.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 21 9/3/2008 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Southeast Island School District - For Thorne Bay School, Thorne Bay, AK Type of Entity: School District Mailing Address PO Box 19569 Thorne Bay, AK 99919 Physical Address 1218A Shoreline Drive Thorne Bay AK 99919 Telephone (907) 828- 8254 Fax (907) 828 -8257 Email lburch@sisd.org or cpage@sisd.org or emosenthin@sisd.org 1.1 APPLICANT POINT OF CONTACT Name Lauren Burch Title Superintendent Mailing Address PO Box 19569 Thorne Bay, AK 99919 Telephone 907 828- 8254 Fax 907 828 -8257 Email lburch@sisd.org 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 X 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 X 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 X 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 21 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. The school district request is for a Conceptual/ Final Design** and Permitting and Construction of a wood fired boiler to supplement the diesel fuel oil heating system in the Thorne Bay School in Thorne Bay, Alaska. We intend to use wood biomass to heat the school, replacing diesel as the energy source. The project involves placing two Garn type wood fired boilers adjacent to the school site and running underground pipes from the wood fired boiler to plumb into the school’s heating system. The energy from the wood fired boilers would reduce the cost of heating the school with diesel fuel. Wood is available from: waste from local saw mills, USFS small sales, wood left behind on landings from large timber sales, and from small local firewood cutters. If the Feasibility Assessment done by T. Miles meets AEA’s standard for a Feasibility Analysi/Conceptual Design, we would ask for a Final Design if it does not we will need a conceptual design. 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 involves placing supplemental cord wood fired boilers at the school site. The supplemental heating system would be located at the Thorne Bay School in the City of Thorne Bay on Prince of Wales Island in Southeast Alaska. The project would also serve the residents of the City of Thorne Bay. The entities involved in this project would be Southeast Island School District, an engineering firm, local contractors, and the Alaska Energy Authority; We would rely on Alaska Energy Authority for guidance with the project. 2.3 PROJECT BUDGET OVERVIEW Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of other contributions to the project. Include a project cost summary that includes an estimated total cost through construction. The amount of funding required would be a total of $220, 179, which includes a 15% overrun cost figured in. Southeast Island School District would commit $42,000 of in-kind matching funds to complete the project. In phase three we would use $19360.00 to have a final design drawn up and the remainder of the funds would be used for purchasing and installing the wood fired boiler at the Thorne Bay School site. We have previously written and were awarded a grant that allowed Dan Parent from the Juneau Economic Development Council to travel to Prince of Wales Island to conduct an initial feasibility study for two schools in our the School District. The source of the funds would come from two sources. The first source of funding would be from the School District’s general fund and the final source would be from a grant from the Alaska Energy Authority. 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. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 4 of 21 9/3/2008 The benefits for this project are multifold; Southeast Island School District will save $39,450 in heating costs the first year by replacing costly diesel with locally available wood. Plumbing the school for a supplemental wood fired boiler can provide additional jobs in the community. The economic impact to the community is multifold. Money, that has previously left town in the form of payments to a diesel fuel provider, will be invested locally. The contract for providing wood could be split among a few families providing supplemental income to the families. The contract for the supplying wood could be the impetus to start a small business that would hire local people. The economic benefit remains in town. The money earned can be used to purchase housing, groceries, fuel, food and other economic goods and services. The School will save $39,450 the money saved goes back to the general fund and can be used to purchase a number of items: part of a teachers salary, aide time for the school site or educational materials for the schools. Families remain in the small towns when jobs are created, and the schools remain open. Schools are the center of community wellness in many ways. With low cost heat we can open the school gym to nightly activities. Open gym gives students and adults some place to go and something to do. Communities become healthier, when community members can use fitness equipment, play volleyball, and help students with archery, and basketball tournaments and hold community events in the gym. Without these options people find other ways to entertain themselves not always positive sometimes getting into trouble and that is costly for society, both locally and for the state when they end up incarcerated. 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.) $ 220,179 2.5.2 Grant Funds Requested in this application. $ 178,179 2.5.3 Other Funds to be provided (Project match) $ 42,000 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $220,179 2.5.5 Estimated Benefit (Savings) $ 39,450 per year 2.5.6 Public Benefit (If you can calculate the benefit in terms of dollars please provide that number here and explain how you calculated that number in your application.) $ 44, 500 per year The public benefit is calculated by taking the number of hours the gym will be open from 3 – 7PM, four nights a week, 16 hours a week at a value of $20 an hour for a total value of $320 per week. Multiply $320 per week times 35 weeks a year gives you the total of $11, 200 of community value. There are other economic values that are hard to put a cost factor to. Families remaining in the community for the quality of life that small schools offer, with open gym nights, activities that take place at the gym such as Boy and Girl Scouts, 4H, competitive archery. There will also be other economic factors such as jobs created cutting wood to supply the wood fired boilers at $150 a cord times 222 cords of wood for a total of $ 33, 300 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 5 of 21 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. Our School District Superintendent, Lauren Burch, will manage the project. Paper work for the grant will be managed by the school district’s grant coordinator, management of the budget, including purchasing, and tracking expenses will be tracked through the School District’s business managing firm and the local purchasing agent. The local site manager will be the maintenance supervisor for the school site. Each one of these people are required to report to the Superintendent on a weekly basis, the Superintendent is available to managers on a daily basis. Written progress reports are sent to the School Board and the Superintendent on a monthly basis. Reports are included in the School Board meeting packet and posted on line for the public to view. 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.) Timeline Feasibility Assessment for Thorne Bay School Completed August 2006 AEA final design application submitted November 2008 AEA Grant is awarded making funding available ( 5/15/09) School District puts a RFP out for the Final Design (5/30/ 09) RFP’s reviewed by School Board and RFP contract awarded June, 2009 Engineering Firm is hired July 2009, site visit occurs Project final design and report completed September 2009 Apply for Fire Marshal Permit September 2009 Construction Application for Phase 3 submitted October 2009 Funding awarded January 2010 RFP for construction put out to bid February 2010 Construction started in May 2010 Project finished by July 2010 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. Feasibility Assessment for Thorne Bay School Completed August 2006 AEA final design application Submitted November 2008 Spring 2009 – decision point – funding for furthering project incorporated into budget AEA Grant awarded by May 2009 RFP put out for final design May 2009 – decision point – in June 2009 choosing design firm Engineer firm hired July 2009 Report design submitted to School Board – decision point – any changes or concerns 9/09 October 2009 – decision point – to seek funding for project. Phase 4 construction application submitted October 2009 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 6 of 21 9/3/2008 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. Key Personnel for School District Lauren Burch, Superintendent Southeast Island School District, - Project Manager Lucienne Smith Business Manager for Southeast School District – Financial Reporting Liz Mosenthin –grant coordinator – Grant procedures and paperwork Preliminary feasibility Study (Phase 1&II already completed) Preliminary Reconnaissance; Resource Assessment completed August 2006 Equipment We will purchase wood fired boilers similar to the Garn style high efficiency, low emissions. We will hire a local contractor to dig the trench to run the underground piping to connect the wood fired boiler to the heat exchanger on the diesel fired boilers Phase III &IV Final Design and Permitting; and/or Construction Engineering firm to be hired in the future Process for major equipment purchase or contracts are dictated by School Board Policy The School District purchases equipment, supplies and services on a competitive bidding basis when required by law and whenever it appears to be in the best interest of the district to do so. The Superintendent or designee shall establishes procedures to insure that verbal quotes are obtained for purchases between $500 and $2,000, that informal written quotes are obtained for purchases between $2,000 and $25,000, and that formal advertised bids are solicited for purchases over $25,000. See Attached board policy Resumes – Attached. Lauren Burch, Superintendent Project Manager Lucienne Smith Business Manager Liz Mosenthin Grants Coordinator 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. The site maintenance supervisor will produce a weekly report on the status of the project. The weekly status summary will be reported to the supervisor and head of maintenance and summarized for the School Board’s monthly packet, this in turn will be sent to the AEA on a monthly or weekly basis as required/requested by the Alaska Energy Authority. Maintenance work logs and work orders will be maintained at the District Office. A monthly financial report is required for the School Board on all projects, along with a grant report. These reports detail expenditures and progress for the School Board and the Superintendent. A copy of the School Board minutes and the School Board packet are housed at the SISD District Office and will be Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 7 of 21 9/3/2008 available on the SISD Website for viewing. 3.6 Project Risk Discuss potential problems and how you would address them. Potential Risks How Problem is addressed Barges don’t make scheduled delivery runs Delays in schedule, remind maintenance to plan ahead and stick to suggested timelines Unforeseen Price over runs due to increased fuel, metal or barge line shipping or other prices 15% overrun factored included in the budget. Delays in manufacture of the wood fired boilers Notify the wood fired boiler dealers early of dead lines for installation of boilers, order barge items early, correspond with Alaska Dealers or Garn Dealer regularly, order from Seattle for Southeast Project if was unavailable in Alaska. 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 United States Forest Service (USFS) recently published a map and reconnaissance reports (See Appendix attached) listing commercial firewood potential. The potential wood resources available to contractors on Prince of Wales Island is approximately 270 MBF (million board feet) or more. There are also other private sources of wood available, along with waste wood from the local sawmills. Pros: the school is located in the heart of the Tongass National Forest, the largest forest in the nation. Wood sources are located near school sites. Transportation of wood to school district is reasonable since wood sources are located nearby. Wood can be obtained and stored for up to a year or more ahead of time, ensuring a reliable and reasonable source of energy. It is a renewable source of energy. Wood is an organic, non-contaminating, biodegradable renewable material. Cons: It takes up more room than diesel fuel, and needs a larger dry storage area. It also requires more manual labor than turning a switch; it also generates ash, which needs to be disposed of. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 8 of 21 9/3/2008 Item Pros Cons Continues Using Diesel Fuel – don’t supplement with wood fired boilers. Requires no changes to existing heating system at the school and doesn’t create any new industries in Southeast Alaska, Prince of Wales or local towns. High fuel prices, money leaves community, no local job created, fluctuating diesel prices creates no stability for estimating budgets, no economic development – families leave communities, schools close. Wood source Locally available - Saw mills, slash piles, thinning projects, wood sources located on Prince of Wales, in and near school sites Renewable nontoxic, energy source, After years and years of use, easy access to the wood sources could necessitate farther travel and increase the cost. New wood products developed A wood pellet industry could be developed on Prince of Wales Island and offer a cheaper supplemental product for purchase to be used in Garn Boilers. A new business could be created in towns with schools delivering the product to homes and the school. Allows for partnership development among entities in Southeast Alaska and groups on Prince of Wales Island Transportation costs to get pellets to the school site might increase the fuel costs and reduce savings to school district. Priorities for product use may not favor rural and remote towns. Amount available 270 MBF available Renewable resources with potential to use species not considered such as Alder and second growth thinning slash Some distant areas of harvest could be more than 50 miles from school site. Might require and investment into new equipment to harvest new sources of wood biomass ( thinning for example) No information on amount of thinning residue available at this time Wood contracts Local people willing to bid contracts, creating jobs, and keeping families in small communities and children in community to keep small schools open. With local people supplying wood easy to contact them and follow up on contracts Competitive process, might be awarded to an outside bidders who will raise the price of wood and decrease school district savings. Requires deadline dates in the wood suppliers contract and follow up by maintenance personnel to assure supply. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 9 of 21 9/3/2008 Wood condition Lots of dead standing wood, and thinning slash, located close to school sites. Only requires short drying time for use of product. Has to be stored out of the weather, ahead of time in order to reduce moisture content, Green wood will need to be stored for a longer period than dry wood, taking up more space 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. There are two boiler rooms on the school site. One heats the upper building, the school, which i s 21, 750 square feet. The athletic complex is 18,103 square feet. Each site has two boilers in the boiler room. The boilers produce 266,000 BTU’s per hour. The Weil McLain boilers are twenty years old and have an efficiency rating of 70% or less. 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. Adding a supplemental wood fired boiler(s) will have little impact on the existing energy resource. Thorne Bay District Ranger, Jason Anderson, provided an attachment that contains approximately 270 MBF of wood available. Trees are a renewable energy source. Removal of the trees, allows more light to hit the forest floor and other trees will grow to replace the removed trees. In the case of slab wood from sawmills, the wood fired boilers will use wood that is usually stacked and left to rot. T. Miles found that “ The major advantage of wood compared with fuel oil is the cost of the fuel. Wood burning boilers are usually first installed where chips, pallets or cordwood are free. Two wood boilers on Prince of Wales Island use cordwood that is essentially free. At Thorne Bay Wood Products [in Thorne Bay] and W.R. Jones & Son Lumber Co. [in Craig], slabs, edgings, butt cuts and buck-outs are burned in cordwood boilers to heat a process building and dry kilns. (T. Miles 4.3.1 Fuel Cost) When the USFS offers small thinning sales; a contract to remove the thinned wood could remove wood that only ends up rotting on the forest floor and generating green house gasses. At this time none of the thinned trees are used. The positive impacts: cutting wood to supply the wood fired boilers in the schools will create an Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 10 of 21 9/3/2008 economic opportunity that would allow money to stay in the community. The jobs created may keep a family with children employed or supplement seasonal employment, keeping families and children in the school district. When families stay in small towns the schools remain open, schools hire local people to work at the school adding to the economic benefit of the community. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The existing energy resource is diesel fuel used to heat the school. The current price is $4.50 a gallon for diesel heating fuel. The school will use approximately 17,500 gallons of fuel per year or $78,750 worth of fuel. We would save over $40,000 a year by switching to wood. The savings in that amount of fuel would buy 200 cords of wood, enough to heat the school for one year. Switching from diesel fuel to wood heat will have little or no negative impact on the people of Thorne Bay since fuel oil for the school is purchased from an out of town distributor and the money leaves the community. See tables below for a discussion of the amount of fuel replaced by a high efficiency low emissions wood fired boiler. The table is from T. Miles feasibility study conducted for the Thorne Bay School in 2006. (Page 4-3) Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 11 of 21 9/3/2008 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 12 of 21 9/3/2008 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 Renewable energy technology: Two boilers similar to the Garn Wood Fired Boilers will be added to the school heating system to supplement the school heating system and replace diesel fuel with wood to reduce heating costs. T. Miles found “According to this calculation the Thorne Bay school could supply 100% of its heating needs of 347,000 Btuh with a 425,000 Btuh wood fired boiler.”(Page 4-7). Optimum installed capacity/ capacity factor/ annual generation This chart below show the estimate of the heat required to heat the Thorne Bay School during the coldest 24-hour period. The installed heating capacity is 1.8MMBtuh for the school and the gym. T. Miles found that the calculated demand is on 347,000 Btuh so that a wood fired boiler producing 425,000 Btuh could replace all of the fuel oil now used. Anticipated barriers A delay in the funding cycle could become a barrier if construction begins too late in the season to Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 13 of 21 9/3/2008 dig the trench, bury the pipe and connect the wood fired boilers to the heat exchanger in the boiler room at the school and gym site. Delaying the building of the wood storage building could cause the wood to not dry adequately and decrease the amount of Btu’s produced. Basic integration concept Wood fired boilers would be located near the school and gym housed in a separate building. The wood fired boilers are integrated into the current diesel heating system through a series of underground pipes, pumps and heat exchangers that transfers energy in the form of heat, stored in the liquids surrounding the burn chamber of the wood fired boiler to the diesel system. The transferred heat keeps the temperature high in the diesel system and keeps the boilers from turning on. Delivery methods T. Miles feasibility study determined a single cord wood boiler burning 147 cords per year could replace all of the fuel oil. A building could be built with one boiler installed to supply the upper building, which would be a short run to the school, and piping could be installed to supply the gym as well if it was economically feasible and the first boiler has excess capacity. A 20 X 30 ft building could house two 425,000 Btuh cordwood boilers and could supply 850,000 Btuh. Cordwood could be stored adjacent to the building or in the case of only one boiler, under cover adjacent to the boiler. The boiler would be filled at least twice a day by school personnel, this will allow the boilers to handle large heat demands during a short period of time (see page 6-2 T.Miles) 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 land for the project is owned by Southeast Island School District. There are no potential land ownership issues. The School District supports the project. There are no access issues as the school district controls access to the site. See attached support letter in the form of a School Board Resolution. Also see attached City of Thorne Bay resolution supporting the wood fired boilers. See archaeology release documents as well. 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 List of Permits The only permit that is required would be the Fire Marshall’s approval for a wood fired boiler at the school location. Southeast Island School District has site control. Timeline :Once the project has been funded and the mechanical drawings drafted we would proceed with the application for the Fire Marshall’s approval. The time line for Fire Marshall’s approval and permit is approximately 4 weeks after submittal of conceptual design. Barriers: A delay in the Fire Marshall granting approval of the project would cause a delay in the installation of the project. 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 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 14 of 21 9/3/2008  Archaeological and historical resources  Land development constraints  Telecommunications interference  Aviation considerations  Visual, aesthetics impacts  Identify and discuss other potential barriers Threatened or Endangered Species Each of the school sites have already been disturbed and filled with shot rock, and contain no threatened or endangered species at the locations. Habitat Issues: Each of the school sites have already been disturbed and filled with shot rock, and there are no habitat issues that would need to be addressed. Wetlands and other protected areas: None of the schools sites are located in a wetland or other protected area, as the area was filled with shot rock prior to school construction. Archaeological or Historical resources: none of the project areas are located where archaeological, cultural, or historical resources are located. The Alaska State Historic Preservation Office evaluated Thorne Bay and found no historic properties affected. See attached document. Land Development Constraints There are no land constraint issues at any of the sites. The School District owns the land surrounding the possible location of the wood fired boilers and there is plenty of land surrounding the areas. Telecommunications interference – There are no: Satellite dishes, phone lines, cell towers or cables in the areas selected for the wood fired boilers to interfere with telecommunications. Aviation considerations – The schools are located away from the seashore. All our aviation is conducted by float planes and the wood fired boilers would be located in an area that would not interfere with floatplane operations. Visual and Aesthetics Impacts – The location selected for the wood fired boilers will have a minimal affect on the surrounding areas as boilers similar to the Garn Boilers must be contained inside a building and fenced to keep people away from the area. One of the outer fences could become part of another project such as a project that could enhance the area like community garden or a community green house. Identify and discuss other potential barriers: Other barriers could include placing the project in an earthquake or tsunami potentials zone. Neither of these events would affect the students at the schools. The schools are located on one of the highest locations in town, away from tsunami danger, and the wood fired boilers are self contained in their own buildings away from the main school, piping is underground and plumbed directly to the boiler room, where students do not have access, so broken pipes are not an issue in the event of an earthquake. Garn boilers have a high efficiency and low emissions. Emissions will not be a problem as boilers similar to Garn Boilers have met the EPA clean air requirements. (Attached also see the Alaska Coastal Project Questionnaire) 4.4 Proposed New System Costs (Total Estimated Costs and proposed Revenues) The level of cost information provided will vary according to the phase of funding requested and any previous work the applicant may have done on the project. Applicants must reference the source of their cost data. For example: Applicants Records or Analysis, Industry Standards, Consultant or Manufacturer’s estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following:  Total anticipated project cost, and cost for this phase  Requested grant funding  Applicant matching funds – loans, capital contributions, in-kind Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 15 of 21 9/3/2008  Identification of other funding sources  Projected capital cost of proposed renewable energy system  Projected development cost of proposed renewable energy system Total anticipated project cost, and cost for this phase $220,179. The table below illustrates the pay back time and costs for installing the wood fired boiler at Thorne Bay School ( our table page 17) when the feasibility study was done in 2006 fuel oil was at $2.50 a gallon. We are now paying $4.80 a gallon. You will also note that this study included the Thorne Bay School. We calculated two boilers into the cost to cut diesel consumption in both buildings. However if the engineer who designs the system based on the feasibility study deemed one boiler adequate we would follow the engineer’s recommendation. So with the increasing cost of fuel taken into account, the payback time for this project would be less than 7 years. (See T.Miles report below). Requested grant funding Applicant matching funds – loans, capital contributions, in-kind Identification of other funding sources Project capital costs of the proposed renewable energy system Projected development costs of proposed renewable energy system Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 16 of 21 9/3/2008 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 Operating and Maintenance costs Total Operating and Maintenance Costs per year are approximately $15361.70 per year. Dan Parent, in his report on the Coffman Cove School found that “the primary operating cost of a cordwood boiler, other than the cost of fuel, is labor”. Labor is required to move wood from its storage area to the boiler building, fire the boiler, clean the boiler and dispose of the resulting ash. The boiler system could be operated every day for 210 days (30 weeks) per year between mid-September and mid-April. Other operating costs based on a report projected for Coffman Cove School by Dan Parent: Dan found that the general costs include replacing items such as fire brick, door gaskets, water treatment chemicals, etc. He used a flat rate of $1,000 per boiler per year. The non- fuel OM&R cost estimates are summarized in Table 6-3. 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following: Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 17 of 21 9/3/2008  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 Identification of Customer Thorne Bay School, Thorne Bay, AK Southeast Island School District will be the customer for the wood fired boilers. The Purchase price of project: The project will cost approximately $220,179. See table below for the breakdown of the cost. Initial Investment Costs Scenario for Cordwood System Thorne Bay School Fuel Consumption gallons per year 17,500 gallons Required BTU’s per hour 273,783 Cordwood Boiler Btu’s combined and stored per hour 2 Garn Boilers VHS 2000 - 850,000 combined Btu’s per hour 2,544000 Btu’s Stored Building and equipment estimates Final Design $19360.00 Fuel storage building $44,000.00 Boiler building $38, 400.00 Boilers, flue, water treatment ($16,440 each) $32880.00 Shipping for boilers $7820.00 Plumbing and connections $21,000.00 Travel/per diem for Engineers $4000.00 Contractual heavy equipment $4000.00 Instillation labor charges Building construction and boiler instillation $20000.00 Sub total cost $191,460.00 Contingency cost overrun 15% $28719.00 Grand Total $220,179.00 Proposed Rate of Return Simple Payback Period Analysis for HELE Cordwood Boilers Cost of fuel oil $4.50 per gallon $78750.00 Cord wood 262 cords @ $150/cord $39, 300.00 Annual Fuels Savings amount $39,450.00 Total Investment costs $220,179 Simple payback in years 5.58 years 4.4.4 Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 18 of 21 9/3/2008 evaluating the project. Document any conditions or sources your numbers are based on here. The numbers in the budget are derived from two feasibility studies, The first done by Tom Miles for the Alaska Wood Energy Development Task Group (AWEDTG) that included assessment of the Thorne Bay School in 2006. The second feasibility study conducted by Dan Parent from Juneau Economic Development was completed in November 2008. The fuel costs are derived from actual fuel costs for the last year. Wood availability and prices come from a report from Jason Anderson, District Ranger Thorne Bay. Ranger District on Prince of Wales Island. I have quotes from Northland Barge for shipping the wood fired boilers to Alaska from Seattle, and quotes from Dave Frederick for the cost of a wood fired boiler. I have quotes from a local contractor for the price of digging a ditch to place pipe in the ground. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 19 of 21 9/3/2008 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. Plan for Operating The school district will continue to fund a maintenance person who will be responsible for stoking the boilers on a daily basis and a budget pla( n to cover the operating and maintenance tasks along with additional funds to cover associated costs for operation and maintenance of boilers. The funds for purchasing the needed wood source will be figured into the budget, (fuel costs, handling of the wood,) these costs will be less than the amount of diesel purchased the previous year making the project a self sustaining project. 4.4.6 Analysis and Recommendations Provide information about the economic analysis and the proposed project. Discuss your recommendation for additional project development work. A site visit was conducted in 2006, by Tom Miles for the Juneau Economic Development Committee visited Thorne School in October and made a Reconnaissance; Resource Assessment/ economic analysis of the proposed project. His recommendation was to place a Garn or similar wood fired boiler ( high efficiency, low emissions) at the site. See his report attached. (See page 6-4 for his recommendation). 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 At $4.00 per gallon and 17500 gallons of fuel oil the school pays $78,750.00 per year for fuel, switching to wood fired boilers saves $39,450 per year. That money can remain in the general fund. It can be used to buy textbooks, support sports programs, music and art activities help pay salaries of school district personnel or purchase aide time. Non-economic benefit: all of these activities have direct impact on the lives of the students in our school district. Another non economic affect could be that cleaning up the forest of decaying wood might reduce greenhouse gasses being produced and slow global warming. The potential annual fuel displacement of 17,500 gallons over 25years could be in excess of Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 20 of 21 9/3/2008 437,500, gallons or one million seven hundred fifty thousand dollars ($1,750,000.00) over the life time of the boiler based on $4 a gallon diesel. 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 project will cost $191,460.00 with 15% contingency overrun added on, bringing the project total to $220,179. Southeast Island School District is committed to funding the project at $42,000 using an in-kind match. In this phase of the funding cycle we are requesting $19,360 for a final design and $139,379 in construction costs for a total of $158,739. We have written grant proposals and were awarded the funding for the feasibility study that was conducted by Dan Parent, Wood Utilization Specialist, from the Juneau Economic Development Council, and previously were the recipient of Feasibility Assessment for Wood Heating funded by the Alaska Wood Energy Development Task Group. We are committed to the project, which uses wood biomass to reduce our dependency on diesel and reduce our heating cost so we can use our educational dollars wisely, providing the best education possible for the students in our school district. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 21 of 21 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 Signature Title Date