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HomeMy WebLinkAboutGalena Assited Living Installation of Biomass and Solar Energy Systems App Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 1 of 18 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 18 9/3/2008 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Interior Regional Housing Authority ( IRHA) Type of Entity: Non-profit organization with authority derived from both state and federal law. Mailing Address P. O. Box 12 Physical Address 828 27th Avenue, Fairbanks, Alaska 99701 Telephone (907)452-8315 Fax (907) 452-8324 Email bketzler@irha.org 1.1 APPLICANT POINT OF CONTACT Name Bear Ketzler Title Chief Executive Officer Mailing Address P.O. Box 12 Fairbanks, AK. 99701 Telephone (907)452-8315 Ext . Fax (907) 452-8324 Email bketzler@irha.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 1.2.2. Attached to this application is formal approval and endorsement for its project by its board of directors, executive management, or other governing authority. If a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate Yes or No in the box ) Yes 1.2.3. As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement. Yes 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached grant form. (Any exceptions should be clearly noted and submitted with the application.) Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 3 of 18 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. Construction Request: Installation of Biomass and Solar Energy Systems to the Galena Assisted Living Facility. The Yukon-Koyukuk Elder Assisted Living Facility project is designed to provide a sub-regional assisted living home in Galena where Elders can get nursing home level of care while remaining in the area, close to family, friends and traditional activities. The Yukon-Koyukuk Elder Assisted Living Facility is a cooperative effort between Louden, Ruby, Nulato, Koyukuk and Kaltag Tribal Councils and the City of Galena. It is intended to be a sub Regional facility to serve all Elders in the Yukon-Koyukuk area. The City of Galena has donated 3.42 acres of property on the Yukon River approximately 1000 feet from the Sub-Regional Health Clinic, City Hall and City Power Plant. The Elder Assisted Living Facility will consist of a 8,000 square foot home designed to start as a 9 unit/13 resident multi-use facility that can eventually be expanded to 20 units providing residency for up to 28 Elders. The project has received funding from a variety of State and Federal Sources, including, HUD, AHFC, the Denali Commission, The First Alaskans Foundation, and the Rasmuson Foundation. Currently the project is at 60% completion, and the facility is expected to open on schedule in February 2009. Interior Regional Housing Authority (IRHA )is the contractor for the project. In order to improve energy efficiency of operations and lower operating costs, IRHA is proposing to construct a Biomass Building adjacent to the Facility that will house two WHS- 2000 GARN Wood Fired Heating Units and provide a staging area for loading the boilers and storing wood. A solar system is also planned for installation, June 2009. The solar powered panels would provide an alternative source of electrical power to the building and at peak efficiency will provide 8000 watts of electricity. The Biomass and solar systems proposed for the Facility in Galena, are modeled on the successful Biomass/Solar Systems installed in Tanana, Alaska in 2008. The Biomass Heating System relies on a steady source of wood/fuel, readily available in the Galena region. Local suppliers are available in Galena and have expressed an interest in becoming suppliers. The Solar System proposed for the Center also has a proven track record in rural Alaska. The units are easily maintained, once installed, and will lower electrical costs significantly during summer months. Although market forces are beyond the control of rural Alaskans, the renewable resource systems proposed for the Facility can be operated and maintained at the local level using the abundant supply of wood/fuel that is annually replenished wood from the Yukon River and local Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 4 of 18 9/3/2008 on land sources. The renewable resource base provides an opportunity to use local suppliers to 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. IRHA proposes to install a biomass heat source for the Yukon-Koyukuk Assisted Living Center, a NAHSDA, Denali Commission, ICDBG, FHLB, and AHFC funded project that will provide a 9 unit housing complex for the elderly of the Yukon Koyukuk Region. The design includes a multi- purpose area, office space, and dormitory-type housing for transient village health care workers. Interior Regional Housing Authority (IRHA) is designated by the owner, Louden Tribal Council, to be the Construction/Contractor of the Galena Assisted Living Facility. In addition Interior Regional Housing Authority functions as the Construction Manger for the project, and is directed to act with full authority of the Owner, in all matters of coordination of design work performance of the A&E Consultant, Construction Scheduling and Implementation, Management of funding dollars, in accordance with the Payment Schedule, and Management of any and all Subcontractor entities required to produce satisfactory work completion. On behalf of the Louden Tribal Council and the Y-K Senior Living Center Consortium, Interior Reigonal Housing Authority is proposing to install an energy efficient biomass and solar system to the project. The project site is bordered by the Yukon River and Campion Road within section 4, T9S, T10E, Kateel River Meridian, Nulato Recording District, and contains 3.42 acres. The Biomass Center would be located within 100 feet of the Center building site, a 8,000 SF building under construction. Selecting the System The biomass Center wood system costs include the initial capital costs of purchasing and installing the equipment, non capital costs ( engineering, permitting, etc.), the costs of the fuel storage building and boiler building, the fuel costs, and the other costs associated for operating with operating and maintaining the heating system, including labor. Comparative Costs of Fuels The selection of fuel system for the Galena Assisted Living Facility has been based in part on the success of the Energy Center recently built in Tanana, Alaska. Comparative Costs of Fuels for the Tanana Energy Center were derived from the Preliminary Feasibility Assessment for High Efficiency, Low Emission Wood Heating in Tanana, Alaska, May 8, 2007 by Daniel Parrent, Juneau Economic Development Council. According to the study, ,at high efficiency, heat from white spruce cordwood (MC30) at $353.30 per cord is equal to the cost of oil at $3.50 per gallon, before considering the costs of equipment and operation, and maintenance and repair. It is interesting to note since this study was completed, the cost of oil per gallon has increased and is currently $7.00 per gallon and expected to rise. Current estimates from suppliers in Galena place a cord of wood at $ 250.00 per cord. Initial Investment Cost Estimates The Biomass System would provide a sustainable resource energy source for heat to the facility. The oil system designed for the building will remain in place as a back-up system to the Biomass System. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 5 of 18 9/3/2008 If the Biomass System can be installed during the construction phase, installation costs for the Biomass System will be reduced because the plumbing and piping system, the most significant costs besides the boiler, can be installed during the installation of the oil system. The payback period for the Biomass Heating Units and the fuel storage building are expected to be recovered within a year three year span. The Solar Panel System is an additional source of renewable heat, hot water, and electricity for the Center. 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. IRHA is requesting $ 382,779 to install a Biomass and Solar Energy Systems at the Yukon- Koyukuk Elder Assisted Living Center currently under construction. The costs for the technology and installation are derived from written estimates by experienced suppliers of biomass and solar systems in rural Alaska. The construction project costs are derived from cost estimates of the IRHA Construction Staff and Engineers. Construction material and shipping costs are quotes from vendors. The project costs are as follows: 1. Construction of 24 x 32 Biomass Building to provide wood storage and housing for boilers: $145,899  Direct Labor and Fringe: $56,000  Building materials, Includes foundation, floor, window, door, sidewalls, roof: $45,000  Construction Services: include $ 6,500 for engineering and design, $14,599 for site prep, including 900 cubic yards of gravel fill, and $11,300 for wiring for building with exterior lighting, interior lighting and power for circulation pumps and control install. 2. Purchase and install solar system total cost: $160,000 1. Equipment purchase of 63 solar collectors, helio-pak heat-transfer appliance: $140,000. 2. Construction services: install solar storage and hook up with facility plumbing, $5,000 3. Other direct costs: shipping units from Fairbanks to Galena. 3. Purchase and install Biomass System total cost:$76,880  Purchase of 2 WHS-2000 GARN heating units: $31,700  Replacement and maintenance parts, flue kit: $6,180  Construction Services: one supply line installed in arctic pipe run under footing connected to  Heating system, circulation pumps and control materials for pump.- $32,000  Other direct costs: Shipping 2 units from MN to Fairbanks, shipping Fairbanks/Galena., $7,000 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 6 of 18 9/3/2008 2.4 PROJECT BENEFIT Briefly discuss the financial benefits that will result from this project, including an estimate of economic benefits(such as reduced fuel costs) and a description of other benefits to the Alaskan public. The economic benefits of the installation of a Biomass Heating System will be immediate. The projected biomass fuel use at the Facility will be 50 cords/per year for a total cost of $12,500.00. When wood is translated into BTUs its providing energy at a rate of $2.00 per gallon of diesel. The projected fuel costs to heat the Center were projected at 10,000 gallons per year. At today’s price of $7.00/gallon, the annual heating costs are expected to be $70,000. If the Center used the Biomass System it could realize a savings of up to $50,000, per year. Other economic benefits include the savings which will stay in Galena as payments to people who harvest wood and deliver it to the Assisted Living Facility. With the thousands of acres of forest available, and all the drift wood that comes down the Tanana and Yukon Rivers, Galena is well placed to take advantage of biomass energy. Solar system improvements which will include a bank of 63 solar electric collectors on the roof of the Assisted Living Facility will also bring economic benefits to residents in 9 units and the City of Galena. Projected costs of electricity were $ 650 per unit. With the addition of solar powered energy the reductions in kilowatt use (up to 90% in summer months,) can be passed on to the residents and City of Galena. For example if solar power operates at peak efficiency for 1/3 of the year, then annual electricity costs of $70,200 can be reduced by $21,060 annually. Costs are based on the Galena Business model of $7800 per unit x 9 units resident can be reduced. The annual maintenance budget from the Business model is attached in Tab 3. 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.) $382,779 2.5.2 Grant Funds Requested in this application. $382,779 2.5.3 Other Funds to be provided (Project match) $4, 659,760 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $5,042,539 2.5.5 Estimated Benefit (Savings) $71,060 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.) $ Biomass savings: $50,000 /yr. Solar Savings: $21,060/yr. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 7 of 18 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. Interior Regional Housing Authority is the Contractor for the Galena Assisted Living Project. As Contractor IRHA’s CEO, Bear Ketzler, has oversight on the project. Interior Regional Housing Authority, Consortium Construction Manager, Paul Snow will be directly managing the project. Carl Hoffman, Construction Administrator, will oversee specific work. Mr. Ketzler, has direct experience with installation of GARN Boilers and solar collectors, having developed the Tanana Energy Center in 2007. Mr. Carl Hoffman, IRHA Construction Administrator, has over 40 years experience as Superintendent/Project Manager on both public and private Alaskan projects in urban and rural Villages, including school construction and Army Corp of Engineer Projects. Project experience includes Mt. Roberts Tram in Juneau, the Denali Center, and Fairbanks Memorial Hospital in Fairbanks. He is currently the Project Manger of the Galena Assisted Living Facility under construction. Mr. Snow, IRHA Project Manager, has working experience with National Plumbing Codes and compliance with all safety guidelines. Mr. Snow has experience in coordinating with supervising Subcontractors and IRHA departments to ensure a consistent flow of work. Mr. Snow also has experience as a laborer/Carpenter/Supervisor for IRHA. Mr. Snow will work with Mr. Hoffman to ensure the work schedules are coordinated with site foreman, as well as sub contractors. Mr. Snow also has experience with drafting and will oversee the design specifications for the Biomass Building and the Solar Panel installation 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.) Task 1: Construction of Biomass Building: Complete design and mechanical engineering by December 1, 2008 Obtain Fire Marshall approval by January 15, 2009 Complete Order building materials from SBS by January 30, 2009 Complete site preparation by May 15, 2009 Begin construction of building by May 25, 2009 Task 2: Install Solar System Order 63 panels from ABS in Fairbanks by December 1, 2008 Ship 63 panels to Galena by mid-May, 2009 Schedule installation of panels on roof by June 1, 2009 Install solar system hook up to the Center facility by June 10, 2009 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 8 of 18 9/3/2008 Solar System units operational by June 15, 2009. Task 3: Install Biomass Systems Order 2 GARN Heating Units by December 10, 2008 Ensure piping hook up, linking the biomass units to the facility plumbing is in place in the facility by December 30, 2008 Receive shipment of units in Fairbanks by January 5, 2009 Secure wood supplier contracts by April, 2009 Place units on barge in Nenana by June 1, 2009 Install and test units by July 15, 2009 Units operational by July 30, 2009 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. Key milestone 1is to complete the construction of the Biomass Building by July1, 2009. Key tasks include:  obtaining the Fire Marshall Permit  competing site preparation  purchasing of construction materials in time to meet the first barge shipment in the spring. Key milestone 2 is to install the Solar System by June 15, 2009. Key tasks include:  Completion of contract with the Solar System Suppler for the ordering and purchase of solar panels  Scheduling mechanical/plumbing/ and electrical crews to assist with the installation of the solar panels on the roof and the tie in of the solar storage unit to the Center’s heating and electrical system. Key milestone 3 is to have the GARN WHS- 2000 Heating Units operational by August, 2009. Key tasks include:  purchasing of the GARN WHS-2000 Heating Units and supplies, delivered to Fairbanks in time to be loaded on the first barge shipment in the spring.  completion of the engineering, mechanical, and plumbing required to tie in the Biomass Units to the Center Facility  completion of biomass supplier agreements by August, 2009. 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. IRHA, as contractor, will have direct oversight and management for the project implementation. Key personnel include: Carl Hoffman, IRHA Chief Administrator, Mr. Hoffman has over 25 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 9 of 18 9/3/2008 years experience in construction management. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. As General Construction Contractor for the Galena Assisted Living Center, IRHA oversees the following: 1. coordination of design work performance of the designated A& E Consultant 2. Construction Scheduling and Implementation 3. Production of Payment Schedule for owner’s pre-approval 4. Management of funding dollars, in accordance with Payment Schedule, as pre-approved by the owner. 5. Management of all Subcontractors ( Biomass and Solar entities) required to produce satisfactory work completion. 3.6 Project Risk Discuss potential problems and how you would address them. The biggest challenges to the project are logistics. Timing of the barge shipments are extremely important for the construction of the Biomass Building, as well as the delivery of the GARN Heating units. In order to avoid costly delays, and ensure the successful hook up of the heating units, replacement parts are included in the project costs. In order to time the solar units to be operational by June 15th, 2009, it will be crucial to have the solar panels ordered and shipped by May 30, 2009 and a crew on site to install the panels by June 1st. SECTION 4 – PROJECT DESCRIPTION AND TASKS  Tell us what the project is and how you will meet the requirements outlined in Section 2 of the RFA. The level of information will vary according to phase of the project you propose to undertake with grant funds.  If you are applying for grant funding for more than one phase of a project provide a plan and grant budget for completion of each phase.  If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. 4.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available. Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be available for the market to be served by your project. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 10 of 18 9/3/2008 There are thousands of acres of forest available around Galena, and with the drift wood that comes down the Tanana and Yukon Rivers, Galena is well placed to take advantage of biomass energy. According to the Fish and Wildlife Office in Fairbanks, villages that can utilize the biomass fuels surrounding villages, can significantly reduce the fire danger to communities Solar energy is limited to day length, however, with the high costs of kilowatt in Galena ( .78) the facility can realize cost benefits from a limited use of solar energy. 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 existing plans for the Galena Assisted Living Center are based on oil fired boilers. This system will remain in place, to be used as needed. The biomass system will be linked to the main plumbing and heating system and this work will be completed with IRHA designated mechanical engineers. 4.2.2 Existing Energy Resources Used Briefly discuss your understanding of the existing energy resources. Include a brief discussion of any impact the project may have on existing energy infrastructure and resources. The GARN units burn at 84 percent average efficiency when the wood has 20 percent humidity. They are rated for safety by a major product testing laboratory and are shielded to prevent hot temperatures near workers. The company boasts that its units have been in operation for more than 20 years. As a result of patented design, the ceramic burn box consumes particulates, smoke and creaosote at 2,000 degrees before moving hot gas through a heat exchanger within the water jacket. Most of the heat is transferred to the water, producing a “cool” exhaust that is approximately 150-350 degrees above water temperature. The units burn so completely that their final exhaust produces virtually no smoke and exists the building with little notice. This project is proposing to purchase 50 cords of wood per year from local suppliers from the Galena region. The wood source, is expected to come from the river and land based resources. The wood resources that come from the Yukon River are replenished annually and are essentially limitless. The land based resources are available from local native lands in the area. Local suppliers in Galena are interested in contracting with the Center to provide 24’-32’ cut/stacked cordwood. As in Tanana, which has installed a Biomass System in 2007, local suppliers were more than agreeable to securing contracts with the City of Tanana to supply the Biomass Center. When rural communities are spending 40 percent of their annual income on energy this winter compared with 4 percent for the average urban household, its easy to see the sense of looking at wood utilization. When fuel oil costs $7.00 per gallon, people get creative. 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 11 of 18 9/3/2008 The existing energy use projected at 10,000 gallons of fuel oil per year for the Assisted Living Facility is unsustainable. It also relies on purchasing oil from outside suppliers located in Anchorage, Alaska. As world-wide demand for oil continues to increase, the impacts for rural Alaska will only worsen. If the costs of energy continue to rise at current rates, rural communities, such as Galena will see a migration of the population to the cheaper urban locations of Anchorage and Fairbanks. This migration will have a corresponding negative impact on public schools, forcing many to close. Many communities, such as Galena, will also see a reduction in services as City governments struggle to meet the energy costs to keep basic services in place. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 12 of 18 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 The GARN WHS-2000 heating units proposed for the project use up to 45% less fuel and labor . The heating units have massive water storage; Intermittent, hi temp efficient combustion; and a computer designed, efficient 5 pass heat exchanger. The units provide intermittent, hi temp to stage combustion with ceramic lined second chamber, sealed combustion with horizontal vent. Manway access with self cleaning dished galvanized cover, provide a low life cycle cost. The Burn rate, Btu/hr for the 2000 series is 425,000. Btu’s stored 120-200 is 1,272,000. The boilers take wood lengths between 24’’ – 32’’, making the units easy to load. Two similar units installed at Tanana, Alaska, to provide heat to the washeteria have been operational for a year. The units are quiet, have a low repair record, and are easy to load. Solar System Installation is also based on a model installed in Tanana, Alaska. This proposal will install 63 panels on the roof of the Facility. The solar panels are scheduled to be installed and operational by June 15, 2009, thereby taking advantage of the summer day length. At peak efficiency the units are projected to produce 8000 watts of electricity, enough to power 100% of the facility demand. The solar system proposed for this project is manufactured by Heliodyne, Inc. a company that is among the oldest solar hot water companies in the U.S. The Heliodyne solar hot water systems come with ease of installation, durability, and affordability. The Solar Rating & Certification Corp. (SRCC), rated the Helio-Pak 25% more efficient. The GOBI lines of solar flat-plate collectors is one of the industry’s highest-rated products. Over 30 years of design with engineering refinement have gone into making the solar collectors an excellent choice for rural Environments. 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. There are no land ownership and access issues. IRHA is the contractor for the project to build the Yukon-Koyukuk Elder Assisted Living Center(Copy of Agreement attached). Construction of the Facility is 60% complete as of 9/25/08. Completion is scheduled for February 2009. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 13 of 18 9/3/2008 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 IRHA will obtain a Fire Marshall permit for the Biomass Building by January 10, 2009. The permit application and plan will be filed as soon as funding for the project is secured. 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 An environmental review has been completed for construction of the Center Facility. The proposed construction of the Biomass Building is within 100 feet of the existing facility and within the parcel boundary. 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 The Biomass and Solar Systems are going to be installed in a new building currently under construction. The cost data for this proposal is based on written estimates from suppliers. This request of $ 382,779 is matched by the total development costs of the project which are $ 5.9 million. The capital costs to install the two systems is $382,779,000. The development costs of the Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 14 of 18 9/3/2008 proposed renewable energy system are mitigated in part because the piping for the Biomass System has been included in the current design and will be installed along with the oil fired boiler system that will remain in place along with the Biomass System. There are numerous state and federal funding sources that have contributed funds for this project. The funding sources are identified in the Budget on the Cost Worksheet Form. 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 The Yukon Koyukuk Elder Assisted Living Center Facility will be operated by the Consortium of villages. The anticipated operating and maintenance costs of the Biomass and Solar Energy Systems are expected to be significantly lower than the projected operating and maintenance costs that were identified in a Business Model developed for the Center. The percentage of the savings can be held in a reserve account. 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following:  Identification of potential power buyer(s)/customer(s)  Potential power purchase/sales price - at a minimum indicate a price range  Proposed rate of return from grant-funded project The project will reduce rates for electricity charged to customers ( Elders in 9 residential units) The Biomass Savings will reduce the rates the City of Galena will pay to provide hot water and heat for the facility. 4.4.4 Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. The costs to Construct the Biomass Building are based on cost estimates from suppliers. Construction costs for mechanical and plumbing are from the IRHA Construction Department. Freight costs are based on quotes from Yutana Barge Company. The material costs are based on estimates from Spenard Builders Supply in Fairbanks, Alaska. The costs to purchase 2 WHS -2000 GARN Wood Fired Heating Units, and the costs for scheduled maintenance and replacement parts, and shipping the units is from a quote from Alaskan Heat Technologies ( attached). The costs to purchase and install 63 solar units on the roof of the Facility, as well as install solar storage is from a quote from ABS located in Fairbanks, Alaska ( attached). The costs for mechanical, plumbing and electrical costs for installation of both systems are from IRHA Construction Department quote. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 15 of 18 9/3/2008 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 16 of 18 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. This project is based on using renewable resources to provide heat, hot water, and electricity to the Yukon-Koyukuk Assisted Living Facility in Galena, Alaska. A Galena Financial Model completed for the Center in 2007, projected utility costs per unit of $ 2600 per month for Gas/Fuel Oil, and $550 per month for electricity per unit. Using a biomass heating system will cut the monthly costs per unit to $200 a month. Electricity per unit was projected to be $550.00 per month. Using solar panels will cut costs by 50% for three months of the year. 4.4.6 Analysis and Recommendations Provide information about the economic analysis and the proposed project. Discuss your recommendation for additional project development work. This proposal will put into practice a successfully tested model in rural Alaska of renewable resource use applied to public/community facilities. The benefits to the community apply to everyone who has a senior living at the center, and to the community- at-large which will realize a cost savings from operations which can be allocated to other City/community needs. The wood supply from the Yukon River is replenished each year. The land based wood utilization has a longer regeneration rate, but the available harvestable acreage will supply an annual harvest of 25-45 cords of wood. The price for renewable resource use will increase as demand increases, but it is still significantly lower than the price of oil (currently at $7.00 gal. in Galena). 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 SECTION 6 – GRANT BUDGET Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 17 of 18 9/3/2008 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. IRHA will provide project oversight and management. As the contractor on a $5 million project, IRHA is committed to assisting the Consortium bring this project in on time and budget. There is particular attention to installing systems that ill save communities operating and maintenance costs throughout the life of the building. All the systems proposed have been tested in a rural Alaskan setting. Data from these sites indicate that these systems perform well and can be operated and maintained locally. If funded, this investment will be matched by over $4 million in state and federal resources, as well as Alaskan foundations. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 18 of 18 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 Bear Ketzler Signature Title Chief Executive Officer Date October 8, 2008