HomeMy WebLinkAboutKasaan Wood Boiler Village of Kasaan App
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 1 of 16 9/2/2008
Application Forms and Instructions
The following forms and instructions are provided for preparing your application for a
Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA)
and the forms are available online at http://www.akenergyauthority.org/RE_Fund.html
The following application forms are required to be submitted for a grant recommendation:
Grant Application
Form
GrantApp.doc Application form in MS Word that includes an outline of
information required to submit a complete application.
Applicants should use the form to assure all information is
provided and attach additional information as required.
Application Cost
Worksheet
Costworksheet.doc Summary of Cost information that should be addressed
by applicants in preparing their application.
Grant Budget
Form
GrantBudget.xls A detailed grant budget that includes a breakdown of
costs by task and a summary of funds available and
requested to complete the work for which funds are being
requested.
Grant Budget
Form Instructions
GrantBudgetInstr.pdf Instructions for completing the above grant budget form.
If you are applying for grants for more than one project, provide separate application
forms for each project.
Multiple phases for the same project may be submitted as one application.
If you are applying for grant funding for more than one phase of a project, provide a plan
and grant budget for completion of each phase.
If some work has already been completed on your project and you are requesting
funding for an advanced phase, submit information sufficient to demonstrate that the
preceding phases are satisfied and funding for an advanced phase is warranted.
If you have additional information or reports you would like the Authority to consider in
reviewing your application, either provide an electronic version of the document with
your submission or reference a web link where it can be downloaded or reviewed.
REMINDER:
Alaska Energy Authority is subject to the Public Records Act, AS 40.25 and materials
submitted to the Authority may be subject to disclosure requirements under the act if no
statutory exemptions apply.
All applications received will be posted on the Authority web site after final
recommendations are made to the legislature.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 2 of 16 9/3/2008
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Organized Village of Kasaan
Type of Entity:
Tribal Government
Mailing Address
PO Box 26 – Kasaan, Ketchikan, Alaska 99950-0340
Physical Address
Kasaan, Alaska
Telephone
(907) 542-2230
Fax
(907) 542-3006
Email
richard@kasaan.org or Wunrow@gci.net
1.1 APPLICANT POINT OF CONTACT
Name
Jonathan Wunrow
Title
Grants Administrator/Planner
Mailing Address
PO Box 26 – Kasaan, Ketchikan, Alaska 99950-0340
Telephone
(907) 738-7556
Fax
(907) 747-5145
Email
Wunrow@gci.net
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
An independent power producer, or
A local government, or
X A governmental entity (which includes tribal councils and housing authorities);
Yes
or
No
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
or
No
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
or
No
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 16 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 Organized Village of Kasaan is proposing a Feasibility Analysis/Conceptual Design
Biomass Project.
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 proposed Biomass project will focus on conducting a feasibility analysis and the developing
a conceptual design of two wood burners for the community of Kasaan. The project will be
located in the village of Kasaan on the Southeast side of Prince of Wales Island in southern
Southeast Alaska. The Organized Village of Kasaan (OVK), a federally recognized Tribe is the
applicant organization. OVK will work closely with the City of Kasaan in the successful
completion of this project.
One wood burner will be designed to heat all of the community buildings in Kasaan (school, city
offices, medical clinic, Tribal offices, community library, and community hall). The second
wood burner will be constructed on a separate site in Kasaan to heat a cultural- and eco-tourism
lodge that is in the design phase and will be owned and operated by the Tribe as the primary
economic development focal point for the community.
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.
Since this grant application is requesting funds to conduct a Feasibility Analysis and Conceptual
Design, the project budget is a preliminary estimate for completing these two work products:
- Contract for Feasibility Analysis (Including travel) – $14,000*
- Contract for Conceptual Design (two wood burners) – $8,000*
- OVK Staff and Administration Costs - $10,000
$30,000 is requested through this AEA Renewable Energy Fund Grant Application. The
remaining $2,000 will be provided in staff and office support as an in-kind contribution from the
Organized Village of Kasaan.
Estimated Cost Through Construction – To be determined once the Feasibility Analysis and
Conceptual Design are complete.
*Cost estimates from Jim Rehfeldt, Alaska Energy, Juneau, AK. 10/21/08
*Additional cost estimates have been obtained from a fee proposal submitted by RSA
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 4 of 16 9/3/2008
Engineering, Inc. (Anchorage) to the Southeast Island School District (SISD) for providing a
feasibility report and mechanical engineering services to design a wood boiler system to
supplement fuel oil heating systems at three SISD village schools including the school in Kasaan.
Project benefits have been identified in the following areas:
1. The wood burner heating project will be a reliable source of heat and hot water for all
community buildings and the Tribally owned Discovery Lodge in Kasaan.
2. The Feasibility Study that will be funded through this AEA grant will also explore the
economic feasibility of constructing a wood-fired “combined heat and power plant” (CHP), as
has been developed on a larger scale in St. Paul, MN. By Ever-Green Energy. We will explore
the feasibility of constructing a combined heat and power plant for all community buildings and
for the Tribe’s Discovery Lodge project.
3. Waste wood is in abundance in the Kasaan area due to thousands of acres of clear-cut and
partial cut forests owned by local and regional Native for-profit corporations.
4. A wood burning heat source in the Discovery Lodge will not only provide a less costly and
consistent source of heat energy and hot water, but will also be an important marketing aspect of
this eco- and cultural-tourism facility.
5. The community of Kasaan will serve as a model for other small communities in “timber-rich”
southeast Alaska.
6. The Feasibility Study that will be developed will estimate the amount of money that will be
saved in heating and hot water costs by the City of Kasaan, the Organized Village of Kasaan, and
the Southeast Island School District.
2.4 PROJECT COST AND BENEFIT SUMARY
Include a summary of your project’s total costs and benefits below.
2.5.1 Total Project Cost
(Estimates through construction to be determined after the
Feasibility Study and Conceptual Design are complete.)
$32,000
2.5.2 Grant Funds Requested in this application. $30,000
2.5.3 Other Funds to be provided (Project match) $ 2,000
2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $32,000
2.5.5 Estimated Benefit (Savings) To be determined through
Feasibility Study
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.)
Significant. The goal of this
project is to provide heat &
hot water for all public
facilities in Kasaan.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 5 of 16 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 indica te 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.
Richard Peterson, the Tribal President for the Organized Village of Kasaan will represent the
Tribe in the development of the Feasibility Study as well as in the construction and
implementation of the waste wood-fired heating systems. Mr. Peterson has been the Tribal
President and Administrator for the Organized Village of Kasaan for the past ten years (see
attached resume)
Jonathan Wunrow, OVK Grants Manager will serve as the initial project manager for this AEA-
funded Feasibility Study and Conceptual Design. Once the study and design are complete, and
construction funding is secured, a project manager will be contracted who has the appropriate
expertise to assure the successful completion of the project. Mr. Wunrow has been a program
manager for the Organized Village of Kasaan for the past six year (see attached resume).
Paul Voelckers is the president of MRV Architects in Juneau, is currently overseeing the
architectural and engineering design work for the Discovery Lodge, a Tribally owned eco-and
cultural-tourism lodge to be located in Kasaan. Mr. Voelckers will work closely with the firm
contracted to develop the waste wood boiler to be used to heat the Discovery Lodge. Mr.
Voelckers has been with MRV Architects since 1981 (see attached resume).
James A. Rehfeldt is a mechanical engineering consultant for Alaska Energy Engineering,
specializing in energy efficient design, energy audits and analysis, and energy management
system evaluation. Mr. Rehfeldt has submitted a preliminary cost estimate for completing the
Feasibility Study and Conceptual Design outlined in this AEA proposal (see attached resume).
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.)
Since AEA funds are being requested to complete a Feasibility Study and a Conceptual Design,
the Project Schedule for this AEA project is very straight forward. Following notification of
receipt of funding:
Month 1: Develop a contract template for work to be completed by contractor.
Month 2: Select a contractor to conduct Feasibility Study and complete a Conceptual Design.
Months 3-6: Contractor will complete Feasibility Study.
Months 7-8: Contractor will complete Conceptual Designs for community wood burner plant
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 6 of 16 9/3/2008
and Discovery Lodge wood burner.
Months 9-12: Secure construction funding from AEA and other government and private sources;
address permitting issues
3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them.
Since AEA funds are being requested to complete a Feasibility Study and a Conceptual Design,
the Project Milestones for this AEA project is very straight forward.
Month 2: Contract(s) established and signed for Feasibility Study and Conceptual Design
Month 6: Feasibility Study completed
Month 7: Make a decision about whether to pursue designing a wood-fired “combined heat and
power plant” (CHP) ,or just a heat and hot water plant.
Month 8: Conceptual Designs for community wood burner plant and Discovery Lodge wood
burner completed
Month 9: Begin addressing relevant permitting issues
Month 12: Construction funding from AEA and other government and private sources secured
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.
Organized Village of Kasaan staff and Tribal Council: OVK staff that will be directly involved
in the successful implementation of this project include Richard Peterson - OVK Tribal
Administrator and Jon Wunrow – OVK Grants Manager. The OVK Tribal Council will be
involved in approving the submission of all grant requests and in approving all construction
activities.
City of Kasaan staff and City Council: The City of Kasaan staff that will be directly involved in
the successful implementation of this project include Audrey Escoffan – Mayor and Mike
Escoffan - City of Kasaan Public Works Director.
Tlingit and Haida Regional Housing Authority (THRHA): OVK has had a close working
relationship with THRHA throughout the development of a six unit elder- and low income
housing project in Kasaan. Once the Feasibility Study and Conceptual Design are complete,
OVK will approach THRHA to see if they are interested in assisting with the construction phase
of this project.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 7 of 16 9/3/2008
Paul Voelckers, MRV Architects: As was mentioned above, OVK is currently working very
closely with MRV Architects on the completion of the architectural and engineering design work
for the Tribally owned Discovery Lodge. MRV Architects will be involved in the design of the
wood boiler for the Lodge facitlity.
Jim Rehfeldt, Alaska Energy, Juneau: OVK has contacted Mr. Rehfeldt to obtain a cost estimate
for completion of a Feasibility Study and Conceptual Design. He has expressed an interest in
working with OVK to complete this project.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
Richard Peterson, the Tribal President for the Organized Village of Kasaan will represent the
Tribe in the development of the Feasibility Study as well as in the construction and
implementation of the waste wood-fired heating systems. Jonathan Wunrow, OVK Grants
Manager will serve as the project manager for this AEA-funded Feasibility Study and
Conceptual Design. Mr. Wunrow will be responsible for assuring the completion of this project
and completing all reporting requirements as outlined by the AEA. Mr. Wunrow will be the
point of contact with AEA for this project. In addition to submitting all required program and
fiscal reports, OVK will also inform the AEA if any significant barriers to project completion are
encountered.
3.6 Project Risk
Discuss potential problems and how you would address them.
Potential Problem #1 is obtaining funding to complete a Feasibility Study and Conceptual
Design. This problem will be resolved when AEA funding is received.
Potential Problem #2 is to assure that a Feasibility Study will be successfully completed. This
problem will be resolved by seeking and obtaining bids from at least two different
companies/individuals that are qualified to complete the work identified in this grant proposal,
and then by providing competent program oversight to assure that the Feasibility Study and
Conceptual Design(s) are completed.
Potential Problem #3 is that the Feasibility Study may determine that the construction of a wood
heater is not a reasonable/feasible source or heat, hot water, and/or electricty for Kasaan. If
this ends up being the case, OVK will begin the second stage of pursuing their renewable energy
priorities, namely to pursue the feasibility of developing a wind power plant in Kasaan.
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.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 8 of 16 9/3/2008
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.
There are tens of thousands of acres of logged forest area located on Tribally owned land on Prince of
Wales Island. The Organized Village of Kasaan also has a long-standing working relationship with the
U.S. Forest Service and Alaska Fish and Game for the co-management of fisheries resources on Prince of
Wales Island. In addition, OVK may also become a destination for industrial wood waste from other
communities on the island as a way to save land-fill costs. The Feasibility Study will determine the
amount of wood biomass available as well as the cost for “harvesting,” hauling, and preparing the wood
for burning.
The viability of using wood and wood waste as a cost-effective way to displace fuel oil for heating and hot
water for public buildings in Alaska is already being demonstrated at in several communities around the
state including Craig, Fort Yukon, Talkeetna, Kenney Lake, and Tanana among other locations.
According to AEA publication, Alternative Energy and Energy Efficiency Assistance Plan, 6/29/05,
benefits of wood energy development include lower costs for heating and hot water, improved or neutral
air emissions, local economic development, reduced risk of oil spills, and use of wood waste that would
otherwise need to be transported to a landfill, or left unused.
It will be important that the wood burners designed for Kasaan utilize “gasification” combustion
technology to capture, extract and transfer additional energy that conventional wood boilers simply waste.
Efficient wood boilers that utilize gasification, achieve overall thermal efficiencies of nearly 90%,
translating into more hot water for heating and hot water, almost complete fuel efficiency, and significant
savings in fuel bills.
The Feasibility Study that will be funded through this AEA grant will also explore the economic feasibility
of constructing a wood-fired “combined heat and power plant” (CHP), as has been developed on a larger
scale in St. Paul, MN. By Ever-Green Energy. We will explore the feasibility of constructing a combined
heat and power plant for all community buildings and for the Tribe’s Discovery Lodge project. It is
unclear at this time, whether it is economically feasible to design, build and operate a wood-fired power
plant on a small scale for a community the size of Kasaan that has unlimited waste wood resources.
The only other available energy sources in Kasaan are electric heat and hot water, oil heaters (forced air
and individual units), and propane hot water heaters. Given the costs of transporting fuels too and around
Prince of Wales Island, diesel fuel and propane are expensive to burn. Electricity costs on the island are
also significantly higher than in more urban areas. Again, the Feasibility Study outlined in this AEA
proposal will determine whether community and lodge wood burners will be an efficient and cost effective
alternative energy source for Kasaan.
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.
The wood burning systems discussed in this AEA proposal will be used to provide heat and hot water for
all of Kasaan’s community buildings. Existing energy systems for each building are as follows:
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 9 of 16 9/3/2008
City Hall, Offices and Clinic:
Heat – Force air oil furnace installed in 1976
Hot Water - Electric
City Owned Apartment:
Heat – Toyostove oil heat installed in app. 2000
Hot Water – Electric
Library:
Heat – Forced air oil furnace (unsure of exact age, but is approximately 20 years old)
Hot Water – Electric
School:
Heat – Forced air oil furnace (unsure of exact age, but is approximately 10 years old)
Hot Water – Electric
Tribal Offices:
Heat – Forced air oil furnace installed in 2000
Hot Water – Electric
City and Tribal Shop – Currently has not heat source
Discovery Lodge (in engineering design phase):
Heat – a oil fired boiler is proposed
Hot Water – the boiler will have hot water hydronic piping to fin-tube heat registers.
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.
Kasaan gets its electricity from Alaska Power and Telephone through two hydro power plants (Black Bear
and South Fork). These hydro plants supply most of the electricity for Prince of Wales Island. In the
event of disruption in power production or transmission, the City of Thorne Bay has two back-up diesel
generators that are tied into the grid and can back-feed to Kasaan. The village of Kasaan also has its own
back-up diesel generator.
As noted above, most of the heat supplied to the public buildings in Kasaan comes from forced air oil
furnaces. In addition to the electricity needed to operate these furnaces and blowers, diesel fuel (see
amounts below) is used for these furnaces.
Since the Discovery Lodge is in the engineering design phase, an estimate has not been developed for the
amount of diesel fuel that will be used annually to heat that 16,000sf building.
A number of residential homes in Kasaan have wood burning stoves for heat. Many homes also have
propane on-demand and tank hot water heaters. However, this AEA proposal does not address residential
energy needs in Kasaan.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 10 of 16 9/3/2008
The following power billing data was received from Alaska Power & Telephone on 11/04/08.
For the ten month period 1/01/08 through 10/31/08 electrical power usage for Kasaan was
211,126 KwH. Annualized, this is app. 253,350 KwH/year for 2008. This compares to a total
electrical power usage for all of 2007 of 235,556 KwH. It appears from the billing data that app.
fifty-six percent of total electricity usage in Kasaan is residential, leaving the remaining forty-four
percent (111,474 KwH per year) being used by the public buildings that will be served by the
proposed wood boiler.
The app. cost of electricity on POW over the past year is $0.26/KwH.
It is not possible to determine how much of the electricity used in Kasaan’s public buildings is for
heating and hot water, and how much is for other electrical needs.
Current heating fuel consumption by Kasaan public buildings is estimated as follows:
- Kasaan school building: $15,000 estimated for school year (2008-09);
- Kasaan city hall, offices, clinic and apartment: ………(emailed Audrey)
- Tribal Offices: $10,000 paid for heating fuel in 2007
- Library:…………..(emailed Bonnie)
The impact of a successful wood boiler project on energy customers will be measured in a number of ways
depending on what results from the Feasibility Study and Conceptual Design phases. Impact measures
will include: # of gallons of heating fuel (and cost) saved per year by the City of Kasaan, the Organized
Village of Kasaan, and the Southeast Island School District (Kasaan school building); the cost savings in
electricity if electrical power generation capacity is part of the end design; savings in electricity costs for
powering electric hot water heaters and furnace blowers; development of a more reliable heat and power
source for important city and Tribal buildings; significant energy cost savings for the Discovery eco- and
cultural tourism lodge which is being developed as the economic development and employment vehicle
for the people of Kasaan.
The Feasibility Study will provide specific energy and cost savings data and compare these savings to the
costs of operating and maintaining the wood boiler projects.
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
- Description of renewable energy technology specific to project location:
Construction and operation of a high efficiency, low emission (HELE) wood boiler that
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 11 of 16 9/3/2008
may also have the capacity for electricity generation. The size and typ e of boilers
designed will depend on the maximum heating and electricity demand ranges
(< 1,000,000Btu per hour or >1,000,000 Btu per hour), as well as on local conditions
including fuel availability, moisture content, etc.
Usually, a bulk fuel boiler is tied-in directly with the existing oil-fired system(s).
Although it is anticipated that the wood fuel system will be designed to replace 100% of
the fuel oil used in the oil-fired boiler, it is likely that the existing oil-fired system would
remain in place and be available for peak demand or backup in the event of downtime in
the wood system.
This AEA grant will also explore the economic feasibility of constructing a wood-fired
“combined heat and power plant” (CHP), as has been developed on a larger scale in St.
Paul, MN. By Ever-Green Energy. We will explore the feasibility of constructing a
combined heat and power plant for all community buildings and for the Tribe’s
Discovery Lodge project.
- Optimum installed capacity: Information to be gathered as part of the Feasibility Study
- Anticipated capacity factor: Information to be gathered as part of the Feasibility Study
- Anticipated annual generation: Information to be gathered as part of the Feasibility Study
- Anticipated barriers: Information to be gathered as part of the Feasibility Study
- Basic integration concept: Information to be gathered as part of the Feasibility Study and
Conceptual Design
- Delivery methods: Information to be gathered as part of the Feasibility Study and
Conceptual Design
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 to be used for both the community wood boiler and the Discovery Lodge wood boiler is
owned by the Organized Village of Kasaan. Property deeds are available upon request.
4.3.3 Permits
Provide the following information as it may relate to permitting and how you intend to address
outstanding permit issues.
List of applicable permits
Anticipated permitting timeline
Identify and discussion of potential barriers
The proposed Feasibility Study will assess the need for environment, construction and other
permits. A permitting timeline will be developed as part of the Conceptual Design phase of this
project. The Organized Village of Kasaan has successfully completing permitting processes
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 12 of 16 9/3/2008
4.3.4 Environmental
Address whether the following environmental and land use issues apply, and if so how they will
be addressed:
Threatened or Endangered species
Habitat issues
Wetlands and other protected areas
Archaeological and historical resources
Land development constraints
Telecommunications interference
Aviation considerations
Visual, aesthetics impacts
Identify and discuss other potential barriers
None of these environmental or land use issues apply to this proposed project. The Organized Village of
Kasaan has a full-time environmental scientist on its staff. Cathy Needham has conducted and coordinated
a number of NEPA and other environmental assessments for other projects in the Kasaan area should
environmental assessments be needed.
4.4 Proposed New System Costs (Total Estimated Costs and proposed Revenues)
The level of cost information provided will vary according to the phase of funding requested and
any previous work the applicant may have done on the project. Applicants must reference the
source of their cost data. For example: Applicants Records or Analysis, Industry Standards,
Consultant or Manufacturer’s estimates.
4.4.1 Project Development Cost
Provide detailed project cost information based on your current knowledge and understanding of
the project. Cost information should include the following:
Total anticipated project cost, and cost for this phase
Requested grant funding
Applicant matching funds – loans, capital contributions, in-kind
Identification of other funding sources
Projected capital cost of proposed renewable energy system
Projected development cost of proposed renewable energy system
As noted above, this grant application is requesting funds to conduct a Feasibility Analysis and
Conceptual Design. Thus the project budget only includes an estimate for completing these first
two products.
- Contract for Feasibility Analysis (Including travel) – $14,000*
- Contract for Conceptual Design (two wood burners) – $8,000*
- OVK Staff and Administration Costs - $10,000
*Cost estimates from Jim Rehfeldt, Alaska Energy, Juneau, AK. 10/21/08
*Additional cost estimates have been obtained from a fee proposal submitted by RSA
Engineering, Inc. (Anchorage) to the Southeast Island School District (SISD) for providing a
feasibility report and mechanical engineering services to design a wood boiler system to
supplement fuel oil heating systems at three SISD village schools including the school in Kasaan.
$30,000 is requested through this AEA Renewable Energy Fund Grant Application. The
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 13 of 16 9/3/2008
remaining $2,000 will be provided in staff and office support as an in-kind contribution from the
Organized Village of Kasaan. No other grant funding is being sought at this time.
Once the Feasibility Study and Conceptual Designs are complete, OVK will develop a
construction and operating budget that will include a funding plan and operational plan.
Estimated Cost Through Construction will be determined once the Feasibility Analysis and
Conceptual Design are complete.
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 cost estimates will be developed as part of the Feasibility Study.
4.4.3 Power Purchase/Sale
The power purchase/sale information should include the following:
Identification of potential power buyer(s)/customer(s)
Potential power purchase/sales price - at a minimum indicate a price range
Proposed rate of return from grant-funded project
Power purchase will consist of identifying the most available and least expensive sources of high
quality cord wood and other scrap wood sources, taking into consideration the cost of harvesting
and transporting the wood fuel to Kasaan.
The list of power buyers/customers already identified includes the City of Kasaan, the Organized
Village of Kasaan (Tribe), and the Southeast Alaska School District.
Power purchase price ranges will be developed as part of the Feasibility Study, as well as a
proposed rate of return on investment and operating and maintenance costs.
4.4.4 Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
Download the form, complete it, and submit it as an attachment. Document any conditions or
sources your numbers are based on here.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 14 of 16 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.
Again, a proposed operational plan including a sustainable business plan will be developed as part
of the Feasibility Study, assuming that this pencils out to be a financially feasible project for the
community of Kasaan and for the Discovery Lodge. We anticipate that the community facility
wood boiler system will be operated by the City of Kasaan, and the Discovery Lodge wood boiler
will be operated by the Tribe.
Projected operational costs will be identified in the Feasibility Study. Project operational
revenues will come from redirecting funding that will be saved in electricity and heating fuel
costs. Operating revenues for the Discovery Lodge project will be captured as part of the
business operations of the Tribally owned lodge. A comprehensive Business Plan for the
Discovery Lodge project is available upon request.
4.4.6 Analysis and Recommendations
Provide information about the economic analysis and the proposed project. Discuss your
recommendation for additional project development work.
An economic analysis of the proposed project will be a key component of the Feasibility Study.
After these wood boiler systems are on –line, the Organized Village of Kasaan and the City of
Kasaan plan to pursue the feasibility of wind generated energy for both commercial and
residential use.
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
Estimates for potential annual fuel displacement include heating fuel consumption by Kasaan
public buildings as follows:
- Kasaan school building: $15,000 estimated for school year (2008-09);
- Kasaan city hall, offices, clinic and apartment: ………(emailed Audrey)
- Tribal Offices: $10,000 paid for heating fuel in 2007
- Library:…………..(emailed Bonnie)
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 15 of 16 9/3/2008
The cost savings in electricity is difficult to estimate at this time. Cost savings will include the
electricity currently used for hot water heaters and Toyostoves. As stated above, approximately
111,500 KwH per year) are being used by the public buildings that will be served by the proposed
wood boiler. The app. cost of electricity on POW over the past year is $0.26/KwH.
Benefits to the residents of Kasaan can also be measured in a variety of other ways including the
# of gallons of heating fuel (and cost) saved per year by the City of Kasaan, the Organized
Village of Kasaan, and the Southeast Island School District (Kasaan school building); the cost
savings in electricity if electrical power generation capacity is part of the end design; savings in
electricity costs for powering electric hot water heaters and furnace blowers; development of a
more reliable heat and power source for important city and Tribal buildings; significant energy
cost savings for the Discovery eco- and cultural tourism lodge which is being developed as the
economic development and employment vehicle for the people of Kasaan.
Other benefits to the people of Kasaan include: the wood burner heating project will be a reliable
source of heat and hot water for all community buildings and the Tribally owned Discovery
Lodge in Kasaan; a wood burning heat source in the Discovery Lodge will not only provide a less
costly and consistent source of heat energy and hot water, but will also be an important marketing
aspect of this eco- and cultural-tourism facility; the community of Kasaan will serve as a model
for other small communities in “timber-rich” southeast Alaska.
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
This is a very straightforward project with a simple and straightforward budget. As noted above,
this grant application is requesting funds to conduct a Feasibility Analysis and Conceptual
Design. Thus the project budget only includes an estimate for completing these first two
products.
- Contract for Feasibility Analysis (Including travel) – $14,000
- Contract for Conceptual Design (two wood burners) – $8,000
- OVK Staff and Administration Costs - $10,000
$30,000 is requested through this AEA Renewable Energy Fund Grant Application. The
remaining $2,000 will be provided in staff and office support as an in-kind contribution from the
Organized Village of Kasaan. No other grant funding is being sought at this time.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 16 of 16 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 Richard J. Peterson
Signature
Title Tribal Administrator
Date 11/04/08