HomeMy WebLinkAboutTok School Biomass Heating Project AppTable of Contents Section
Regional School Board Resolution 1
Funding Application 2
Resumes 3
Feasibility Studies 4
Proposed Project Schedule 5
Map of Tok Area Wildfire Remediatioi 6
Available Biomass 7
Conceptual Design g
State of Alaska Use Permit 9
Project Cost Estimate Summary 10
Cost Worksheet 11
Budget Sheet 12
Engineering & Business License 13
56C 1
Renewable Enerry
ALASKA GATEWAY SCHOOL DISTRICT
RESOLUTION #08-03
AUTHORIZATION TO REQUEST FUNDS FOR RENEWABLE ENERGY
WHEREAS, the Alaska Energy Authority has grants funds available for application; and
WHEREAS, the Alaska Gateway School District purchased 65,419 gallons of heating fuel for
FY08 at Tok School; and
WHEREAS, the price of heating fuel has risen to $4.09 a gallon during the past year; and
WHEREAS, the average price of fuel has risen 12% per year over the past ten years; and
WHEREAS, Tok School is located in the middle of the Tanana Valley Forest; and
WHEREAS, the Tanana Valley Forest has available a vast quantity wood fuel for energy
usage; and
WHEREAS, the Alaska Gateway School District currently has approximately a two year
supply of wood cut and decked to use as fuel on location at Tok School; and
WHEREAS, the Tok Umbrella Corporation received a legislative grant for $500,000 to
purchase a wood chipper; and
WHEREAS, a wood furnace at Tok School would save approximately $ 100,000 on fuel costs
per year; and
WHEREAS, these fuel savings could be transferred into the instructional program to directly
impact and provide additional opportunities for student learning; and
WHEREAS, the mission of the Alaska Gateway School District is to work in partnership with
communities to educate all student to be responsible citizens and reach their full potential;
THEREFORE, BE IT RESOLVED, that the Board of the Alaska Gateway School District is
authorizing the administration to request funds from the Alaska Energy Authority thru the
Renewable Energy Grant Program for the purpose of purchasing a biomass heating system at
Tok School.
ADOPTED by the Board of the Alaska Gateway School District this 7 h day of October, 2008
William MiWer, President
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Melinda Rallo, Vice -President
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Renewable Energy Funew ArC
Grant Application
SECTION 1 — APPLICANT INFORMATION
Name (Name of utility, IPP, orgovernment entity submitting proposal)
Alaska Gateway School District
Type of Entity:
K-12 Public School
Mailing Address
Box 226, Tok Alaska 99780
Physical Address
Mile 1313.5 Alaska Highway, Tok Alaska
Telephone
Fax
Email
907 883 5151
907 883 5154
smacmanus@agsd.us
1.1 APPLICANT POINT OF CONTACT
Name
Scott MacManus
Title
Director/ Special Projects
Mailing Address
Box 226, Tok Alaska 99780
Telephone
Fax
Email -
907 883 5151
907 883 5154
smacmanus@agsd.ds ,
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
entity (which includes tribal. councils and housing authorities);
ttached to this application is formal approval and endorsement for its project by
s board of directors, executive management, or other governing authority. If a
ollaborative grouping, a formal approval from each participant's governing
uthority is necessary. (Indicate Yes or No in the box)
Vmental
s an applicant, we have administrative and financial management systems and
llow procurement standards that comply with the standards set forth in the grant
reement.
awarded the grant, we can comply with all terms and conditions of the attached
rant form. (Any exceptions should be clearly noted and submitted with the
pplication.)
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2.1
of project you are proposing, (Recoi
Conceptual Design; Final Design and
Renewable Energy Fund
Grant Application
Resource Assessment/
andfor Construction) as
The Tok School Biomass Heating Project is a comprehensive proposal, from
project Reconnaissance and Feasibility, to Design and Construction, and on to
final commissioning of the facility in the fall of 2009. Using an automated wood
chip heating system that will heat a 75,000 square foot facility, plus
approximately 50,000 square feet of outbuildings, to largely displace the 64,000
gallons of heating fuel used in 2007-2008, and create an annual savings of at
least $126,562 for this complex. This project will take'advantage of infrastructure
that is currently in place.and activities that are underway to make our community
safe from wildfire. It will convert the largest facility in the Tok area to a
sustainable, cost effective fuel source, that is long term and has economic benefit
to the region. It will allow the school district to improv6 the quality of education
that is offered to our youth.
The Reconnaissance piece is already nearly completed. Both preliminary and
primary feasibility studies and analysis have been completed, and are included in
the application, and both of which conclude that biomass programs will be cost
effective, even were the wildfire remediation project were not in place and
providing a sustainable source of fiber.
The Conceptual Design is included in this proposal, and intends an automated
wood chip boiler that is capable of heating the entire complex except during the
most sever weather. Final Design, Permitting and Construction will be completed
based on the enclosed project schedule, with commissioning of the facility.
The project has approximately two years of biomass fuel currently decked on the
school premises in place right now, with 200 more acres already funded for
wildfire remediation. A conservative measure of 50 tons of biomass an acre,
means that 10,000 tons of fiber is immediately available, where this project will
use just 700 to 800 tons a year. By working closely with Tok Area Forestry to use
the biomass identified by the Tok Area Wildfire Remediation Plan from the 3000
acres of dense forests.
Section 4:
Pre -feasibility Assessment for Integration of Biomass Energy Systems
Connected Boiler load summary
Fuel Chips cost analysis
Economic Summaries
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 pro ect.
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The proposed biomass heating system will take place at Tok School, in Tok
Alaska, and will serve to initiate the beginnings of a systemic regional conversion
from fossil heating fuel to clean, renewable biomass heating systems. An
outbuilding to house the boilers will be constructed behind the school, in a centra
location where access to the outbuildings can also be had. The building will have
3 bays for fiber wagons that will to feed into the a feeder bin inside the boiler
room. The boiler will be able to be fed from the inside or the outside of the
building, to accommodate for downtime on the biomass feed systems. The
biomass boiler will feed into the current boiler infrastructure, which will serve as a
back up system, and will heat the outbuildings. The project has the advantage of
being designed by firms having extensive experience with biomass systems, and
is heavily supported by the community. It was written in partnership with the Tok
Area Forestry, CTA Engineering, and by Alaska Gateway School District staff.
amount of funds needed, the anticipated sources of funds, and the nature and source _
ns to the project. Include a project cost summary that -includes an estimated total cost
n.
A $3,207,000 grant from the Alaska Energy Authority is requested in this proposal that
will cover all phases of the project, through final commissioning.
The Tok Umbrella Corporation received a $500,000 legislative appropriation that will
fund the purchase of a wood chipper, fiber wagons, and storage. The chipper will be
operated by Tok Area Forestry to chip the biomass harvested from the wildfire fuel
reduction project that will be used to fuel the chip boiler at Tok School, and will provide
an important match for the project.
The district currently has between 1000 and 1200 tons of biomass decked at the location
of the project. Using the figure of $50 per chipped ton of biomass, this means that the
district has between $50,000 and $60,000 in fiber available on hand.
A detailed cost benefit estimate can be found in Appendix B
2.4 PROJECT SI
Briefly discuss the
that will result from
an estimate of economic
As is described in detail throughout this application, the immediate and most
obvious benefit is the cost savings to the school district through the direct
reduction of heating fuel costs for the district. Based on the current economic
spreadsheet, assuming the entire project is funded, the school is estimated to
save around $125,000 in fuel oil cost the first year, and with conservative inflation
rates, would save or avoid costs of nearly $39,000,000 in 30 years.
The project will also assist in the remediation of the wildfire threat to the
communities in the Upper Tanana Valley, by using wood fiber that is removed
during Wildfire Remediation programs as a heat source for Tok School, as a
starting place. We would finally be able to turn the situation around and have a
sustainable way of removing hazardous fuels from around our homes and
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community, and a sustainable energy supply with an annual cost that we can
afford and plan for. A sustainable economy will be nourished that does not
export our hard earned dollars out of the local economy creating long term
employment and opportunity. From these benefits move toward becoming self
sufficient from a one time investment instead of endless request for more funds
for energy cost. Lastly, safety for our families, schools and communities that will
be the result of removing wildfire threat and instead using this material to power
our future. We will begin to turn a state funded liability of hundreds of millions of
dollars in firefighting, into an asset s worth millions of dollars, with the resulting
project being used a model for a dozens of similar situations around the state
proving what can be done with the states world class renewable resource of our
forest
The benefit's that this project will have on this community and the upper Tanana
region is of paramount importance. Sustainability, self sufficiency and the safety
of our community will be the result of using a local renewable resource for a long
term energy that up to this date has been a liability and a looming annual threat
of a disaster in the form of wildfire. This project will initiate the conversion from
fossil fuel to a fiber based industry in the Upper Tanana that will create the
foundation for creating heat and power from the renewable resource of the
Tanana Valley Forest. A sustainable economy will be created that does not
export hard earned dollars out of the local economy, creating long term
employment opportunity. From these benefits we get started down the road
toward becoming self sufficient from a one-time investment, instead of the
endless requests for more funds for energy cost.
A detailed cost benefit estimate can be found in Appendix B
2.5 PROJECT COST AND BENEFIT SUMAR`
Include a summary of your project'' total costs
you
ne that number here and exl
number in your application.)
��a,uuu,uuu over 30 years
is of This benefit will be in
how terms of long term jobs
created, keeping funds in
the community, and
saving firefighting dollars.
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4NE-D ENERGY AUTHORITY Grant Application
,.._ - ,,,,, 0 — r 1nA1Mttu1=1WtN i; PLAN
Pescribe-who will be responsible for managing the project end 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
The Project Manager and main point of contact will be Scott MacManus, who is
also the principal investigator of this application. Mr. MacManus has had
experience in project managements for both construction and education
programs. He will coordinate the stages of the project between the district,
engineer and construction companies and with the Alaska Energy Authority,
ensuring timely completion of the project.
Mr. MacManus will be assisted by Chris Rauch Distribt Maintenance Director,
Nathan Reitz, from CTA Engineering, and Jeff Hermanns, Tok Area Forestry.
Section #3
These resumes are enclosed:
■ Scott MacManus - AGSD, Project Manager
• Nathan Ratz - CTA, Mechanical Engineer
• Jeffery Hermanns- State of Alaska, Tok Area Forester
• Nick Salmon - CTA, Civil Engineer
■ Todd Poage - AGSD Superintendent
■ Marion MacManus - AGSD, Business Manager
• Christian Rauch - AGSD, Maintenance Supervisor
3.2 Project Schedule
Include a schedule for the proposed work that will be funded by this grant. (You may include a
chart or table attachment with a summary of dates below )
Project Schedule flow chart can be found in Section 5
3.3 Project` Milestones
Define key tasks and decision points in our project and a schedule for achievingthem
The kev tasks forth is nrnlACt AM nQ TAII, ,.,�
Phase 1: Reconnaissance (completed)
Phase 2: Feasibility
Field Visit
Pre -Feasibility Report
Cost Estimate
Grant Application
Grant Award & Notice to Proceed
Field Visit
35% Complete Design Development Documents
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ALA, Agencies, AGSD review & comment
Phase 3: Final Design
Complete Design Development Documents
Complete Cost estimate/QA/QC Review
AEA, Agencies, AGSD review & comment
Complete Construction Documents
Complete Cost estimate/QA/QC Review
AEA, Agencies, AGSD review & comment
Phase 4: Construction
Bid/Negotiate
Release
Bid Date
Award
Procurement of Wood Fired Boiler/Fabrication
Mobilization
Begin mechanical integration with existing boiler room
Complete mechanical integration with existing boiler room
Begin construction of wood storage/boiler building 7
Renewable Energy Fund
Grant Application
Complete construction of wood storage/boiler building
Delivery of wood fired boiler
Begin mechanical integration within wood storage/boiler building
Complete mechanical integration within wood storage/boiler building
Substantial Completion/punch list
Commissioning
Final Completion
1 YR Warranty Review
attached
section 5
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.. kev nersmi-IM rnnirnrfnrc n-
Personnel:
Professional design services will be determined through a competitive request for
qualifications. Firms with experience in integrating wood -fired heating systems in
to school buildings will be selected.
Contractors:
To be determined through competitive bid process and managed by the
Construction Project Manager.
Wood Fired Heating System Vendor.
To be determined through a competitive bid process and managed by the
Construction manager. Selection rubric for the wood fired heating system vendor
will include project cost, ability to meet or exceed emissions standards, past
Performance with projects of a similar size, ability to serve the Droiect nnra
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complete, and ability to meet specifications.
Renewable Energy Fund
Grant Application
Equipment:
A new boiler building with storage capacity for four 25-30 ton chip trailers for
wood fuel could be located approximately 150 feet from the existing boiler room,
with good access for large trucks and chip trailers to maneuver. Wood fuel
delivery vehicles would access the campus from the main access road and would
back the vehicle into one of three overhead doors to the receiving conveyor. The
hydraulics of the live bottom trailer would be connected to hydraulic equipment in
the building and an empty trailer would be removed from an adjacent bay and
filled with chips from logs decked on site or from other thinning projects and mills
in the region. This approach to wood fuel processing minimizes the handling of
the material, reduces contact with the ground (and potential sources of
contamination) and provides the school with access to wood fuel in most weather
conditions above 30 degrees below zero. The storage capacity of the facility
should allow for approximately two weeks of wood fuel to minimize the need to
chip wood fuel in severe weather conditions. The building includes storage for a
chipper, which would allow the equipment to operate in colder temperatures.
The overhead doors to the building would be 18-20 feet wide to allow 2 pairs of
chip trailers (4 total) to be stored inside the building: The building would be
heated with residual heat from the boiler or an in -slab radiant heating system to
improve the performance and longevity of the chip trailers and chipping
equipment.
Services:
Professional design services will be determined through a competitive request for
qualifications. Firms with experience in integrating wood -fired heating systems in
to school buildings will be selected.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status
A communications plan will be developed as part of the project, and all engaged
parties (Consultants, Contractors, Engineers, AEA Staff and AGSD Staff) will be
briefed on the plan. Communications will be the.primary responsibility the
Project Manager, who will work closely with Engineers and Contractors to ensure
that each party understands their role, and what the time lines are, and will
trouble shoot the issues that will arise during design and construction.
3.6 Project Risk
Discuss potential problems and how you would address them
While an attempt has been made to foresee the possible events and issues that
��U u uciay u1ty Niuject, or oinerwise cause problems bringing the boilers on line,
there are scenarios where by problems may occur, as follows:
Cost Increases that go beyond the scope of the proposal.
Construction delays, to include equipment not being completed on time, or
gaining the required approvals from the Fire Marshal and State DEC.
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■ Mechanical glitches with the equipment, eg; filtering out "stringers", or
chip -wagons that freeze
Clearly, all problems that come along will not be foreseen, however, ensuring
that realistic planning timelines and project flowcharts are in place, contingencies
developed, and ensuring that lines of communication are used, will reduce many
of the problems that might otherwise occur. To some extent, installing liquidated
damages agreements into each contract, and clearly outlining these at the start
of each phase, with clear benchmarks in place, should serve to reduce delays.
` & 1`1- - 1'iFC7J Cl+I UCaI. C Kit'1 SUN 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 wood biomass that is available for use in this project is incredible. With the
annual required biomass required, the estimated harvest would only require
between 15 to 30 acres of the typical forest found within a 10 mile radius of the
school if one was harvesting specifically for this use.
The first source of material is the trees removed from the hazardous fuels
reduction projects in the Tok Area. Over the last 18 years all of the material
removed to create a safety zone around homes and business for defensible
space has been burned in the open and at a tremendous cost. There has been
very little use of this material for firewood with 99% being piled and burned. A
Community Wildfire Protection Plan (CWPP) was signed off by the community
and State of Alaska agencies in 2008. This was and continues to be a
collaborative effort of community leaders and state and federal agencies to
address the issue of the of material is extreme wildfire hazard the community
faces annually.
The second source is from Tok's two small, longtime sawmill businesses that
have never had a use or market for the waste products from their milling
operations. This includes tons of sawdust, planner shavings, and slabs. These
materials are available for purchase at a very reasonable prices and could be a
significant source of biomass for the school. This would be a tremendous benefit
to the milling operations and the timber industry in the upper Tanana with a
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suuice or revenue never before realized in the interior of
Renewable Energy Fund
Grant Application
One of the most basic and sensible approaches agreed in the CWPP to was the
remove of the hazardous fuels surrounding our homes, schools, businesses,
Public building, communication facilities, roads and highways. Currently State of
Alaska Forestry is working on a realized grant agreement with US Fish and
Wildlife Service Tetlin Wildlife Refuge funding of approximately $180,000 dollars
to be used by October 2009 for the removal of hazardous fuels in the Tok Area.
This includes the Tok School where 50 Acres of hazardous fuels (spruce trees)
are being selectively removed and decked for future chipping. This will be
approximately 1000 Tons of biomass alone. An additional 70 acres will be
harvested on nearby Red Fox road less than 3 miles from the school, which will
generate an estimated 2100 tons of biomass that could be used at the school.
Additionally 60 acres will be thinned and removed from around senior citizens
homes in the Tok Area. This will generate an additional estimated 100 to 300
tons of biomass for the Tok School. This biomass/ hazardous fuel (spruce trees)
have never had a use or value but have been a real cost and liability to the land
owner and the State of Alaska. This hazardous material (biomass) will now have
a value. of $50 to $70 dollars per Ton.
There is a goal over the next 5 to 10 years to remove 3000 acres of highest
priority hazardous fuels in the Tok area. This is a hundred year rotation just within
the highest priority areas for fuel removal for the Tok School. The total stand of
high volume hazardous fuels is over 39,000 acres in Tok. By having a value for
the material it will make it possible to sustainable remove this fuel with and turn a
real liability into a real value. This simply cannot be overstated on the importance
of this to the Tok community. At the historic cost per acre it would require
$7,500,000 million dollars of funding to remove this hazardous fuel. This is far
more fuel than the school alone could use but would have a minimum value of at
least $50 per ton or at least $4,500,000 million dollars for biomass fuel. Thirdly,
are the clearing operations for private land development, highway, road
construction and the clearing for any future pipeline construction. The forth
supply is the growing, ongoing timber harvest operations for firewood and sawlog
production in the area. Approximately 40 % of the forest is not suitable for
commercial firewood or sawlog products and is left on the ground, on the harvest
unit landing or disposed of in the log yards. This is at a considerable cost to the
timber harvest operators with an unrealized use for the material. This material
could be utilized and transported in chip form or log form to the mill and or school
and sold for biomass fuel. This material alone could annual heat the Tok School.
Our issue is going to be not having enough capacity to fully utilize the tremendous
biomass resource we have, not finding enough. The constraints of harvesting
timber on federal land are not an issue in the Tok Area, where the vast majority of
land available for harvest being State of Alaska land including land designated as
State Forest and private land with native corporations of Tanacross, Tetlin and
Doyon. There is widespread agreement among all landowners to this project and
the harvest of hazardous fuels or timber products in the Upper Tanana.
Section 6:
Hazardous fuels man
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Grant Application
source of revenue never before realized in the interior of Alaska.
One of the most basic and sensible approaches agreed in the CWPP to was the
remove of the hazardous fuels surrounding our homes, schools, businesses,
public building, communication facilities, roads and highways. Currently State of
Alaska Forestry is working on a realized grant agreement with US Fish and
Wildlife Service Tetlin Wildlife Refuge funding of approximately $180,000 dollars
to be used by October 2009 for the removal of hazardous fuels in the Tok Area.
This includes the Tok School where 50 Acres of hazardous fuels (spruce trees)
are being selectively removed and decked for future chipping. This will be
approximately 1000 Tons of biomass alone. An additional 70 acres will be
harvested on nearby Red Fox road less than 3 miles from the school, which will
generate an estimated 2100 tons of biomass that could be used at the school.
Additionally 60 acres will be thinned and removed from around senior citizens
homes in the Tok Area. This will generate an additional estimated 100 to 300
tons of biomass for the Tok School. This biomass/ hazardous fuel (spruce trees)
have never had a use or value but have been a real cost and liability to the land
owner and the State of Alaska. This hazardous material (biomass) will now have
a value of $50 to $70 dollars per Ton.
There is a goal over the next 5 to 10 years to remove 8000 acres of highest
priority hazardous fuels in the Tok area. This is a hundred year rotation just within
the highest priority areas for fuel removal for the Tok School. The total stand of
high volume hazardous fuels is over 39,000 acres in Tok. By having a value for
the material it will make it possible to sustainable remove this fuel with and turn a
real liability into a real value. This simply cannot be overstated on the importance
of this to the Tok community. At the historic cost per acre it would require
$7,500,000 million dollars of funding to remove this hazardous fuel. This is far
more fuel than the school alone could use but would have a minimum value of at
least $50 per ton or at least $4,500,000 million dollars for biomass fuel. Thirdly,
are the clearing operations for private land development, highway, road
construction and the clearing for any future pipeline construction. The forth
supply is the growing, ongoing timber harvest operations for firewood and sawlog
production in the area. Approximately 40 % of the forest is not suitable for
commercial firewood or sawlog products and is left on the ground, on the harvest
unit landing or disposed of in the log yards. This is at a considerable cost to the
timber harvest operators with an unrealized use for the material. This material
could be utilized and transported in chip form or log form to the mill and or school
and sold for biomass fuel. This material alone could annual heat the Tok School.
Our issue is going to be not having enough capacity to fully utilize the tremendous
biomass resource we have, not finding enough. The constraints of harvesting
timber on federal land are not an issue in the Tok Area, where the vast majority of
land available for harvest being State of Alaska land including land designated as
State Forest and private land with native corporations of Tanacross, Tetlin and
Doyon. There is widespread agreement among all landowners to this project and
the harvest of hazardous fuels or timber products in the Upper Tanana,
Section 6:
Hazardous fuels map
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4.2 Existing Energy System
Renewable Energy Fund
Grant Application
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 Tok School is approximately 75,000 SF in size and includes school, detached
multipurpose building housing an ice hockey rink and shooting range with a
detached Zamboni garage. The school is heated with a pair of fuel oil fired hot
water boilers each with a 3,000,000 Btu/hr capacity (output). The existing boiler
operates at approximately 80% efficiency. A 1,000,000 Btu/hr (output) domestic
hot water for lavatories and showers has a 600 gallon capacity and represents a
portion of the fuel oil use for the facility. The existing domestic hot water heater
operates at approximately 80% efficiency.
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
Based on the last two years of fuel consumption, the facility uses approximately
46,250 gallons of fuel oil each year at a current delivered cost of $4.10/gallon or
$190,000 per year, and the campus (including the school) uses approximately
56,600 gallon per year at a cost of $231,900.
The school, as the primary customer for heating fuel in the region, will have a
negative impact on the market for heating fuel following a transition to biomass
fuels that reduces consumption by 41,625 a year. However, most of the cost of
that fuel is transferred outside the community, whereas the costs for biomass will
remain in the community.
Section 6:
Hazardous fuels map
Section 7:
Decked wood photo
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
i ne exisung energy use in the 1 ok Area and Upper Tanana consists of fuel oil,
propane, cordwood, wood pellets, wood chips and electricity. The use of fuel oil
over the last two years has dramatically shrunk in the residential market to an
estimated 5 to 20 % of the total heating energy. Most people have added wood
stoves and or outdoor wood boilers and are planning to heat mostly with wood
and using oil only for a backup.
The primary use for heating fuel oil is with state and federal government offices
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and buildings and with some commercial businesses because of the lack of
suitable alternatives. Some businesses are using the outdoor (Central) wood
boilers but they are very smoky and inefficient. Fuel oil will have some of the
market in the area for a long time, due to its dependability in cold weather and as
a backup system which is a must in this part of Alaska. Fuel oil is expensive, and
currently costs 4.10 a gallon.
Propane is not used for heating by much of anyone. Propane freezes at minus 40
degrees and so is not well suited to this country. Propane is the choice for
cooking stoves. Propane has become very expensive, and costs $79 for a 1001b
tank.
Cordwood is a large market in the area, and is growing rapidly around the entire
state for residential use and for some business applications. Cordwood costs
between $150 and $200 dollars cut and delivered. The demand for cordwood has
created a supply shortage this year as the price has increased with demand.
Most of the trees in the upper Tanana are not cordwood trees. If the school were
to burn cordwood it would be in direct competition for the cordwood with the
residential market that cannot meet current market demand.
Wood pellets are becoming increasing popular and are being imported into the
area from as far away as Idaho, and costs between $200 and $300 a ton. If a
local manufacturer were to start producing pellets consistently, the wood pellet
market would greatly expand for residential and commercial use. One person
currently is burning wood chips in a homemade sawdust and chip stove to heat
their home and greenhouse.
There is no current market or use for sawdust, wood chips or small diameter trees
that will not make cordwood. The school project would not be competing with
anyone for this biomass material. In fact it will help reduce the cost for timber
harvest operations by enabling them to be more efficient in the harvest of
firewood and saw -logs by giving them a market for the 30% of their current
harvest that is slash, and for which they curently have no market. Lastly
electricity in the upper Tanana is extremely expensive being it's generated from
diesel. No one that I know heats with electricity and everyone uses it very
sparingly for lights and necessities. Even with Power Cost Equalization, it is cost
prohibitive for most people and business. The power company currently has no
realistic plans to produce reasonable power by any other mean within the next
few years.
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Renewable Energy Fund
Grant Application
4.3 Proposed System
Include information necessary to describe the system you are intending to develop and address
potential system design, land ownership, permits, and environmental issues.
4.3.1 System Design
Provide the following information for the proposed renewable energy system:
• A description of renewable energy technology specific to project location
• Optimum installed capacity
• Anticipated capacity factor
• Anticipated annual generation
• Anticipated barriers
• Basic integration concept
A new boiler building with storage capacity for four 25-30 ton chip trailers for wood
fuel could be located approximately 150 feet from the existing boiler room, with good
access for large trucks and chip trailers. Wood fuel delivery vehicles would access
the campus from the main access road and would back the vehicle into one of three
overhead doors to the receiving conveyor. The hydraulics of the live bottom trailer
would be connected to hydraulic equipment in the building and an empty trailer would
be removed from an adjacent bay and filled with chips from logs decked on site or
from other thinning projects and mills in the region. This approach to wood fuel
processing minimizes the handling of the material, reduces contact with the ground
(and potential sources of contamination) and provides the school with access to
wood fuel in most weather conditions above 30 degrees below zero. The storage
capacity of the facility should allow for approximately two weeks of wood fuel to
minimize the need to chip wood fuel in severe weather conditions. The building
includes storage for a chipper, which would allow the equipment to operate in colder
temperatures. The overhead doors to the building would be 18-20 feet wide to allow
2 pairs of chip trailers (4 total) to be stored inside the building. The building would be
heated with residual heat from the boiler or an in -slab radiant heating system to
improve the performance and longevity of the chip trailers and chipping equipment
• A description of renewable energy technology specific to project location: The
Tok School will use a biomass boiler to help heat the school. Wood chips will
be made from timber harvesting in the region and burned in the boiler to heat
water which will circulate through the school to heat the school.
A new boiler building with storage capacity for four 25-30 ton chip trailers for wood
fuel could be located approximately 150 feet from the existing boiler room, with good
access for large trucks and chip trailers. Wood fuel delivery vehicles would access
the campus from the main access road and would back the vehicle into one of three
overhead doors to the receiving conveyor. The hydraulics of the live bottom trailer
would be connected to hydraulic equipment in the building and an empty trailer would
be removed from an adjacent bay and filled with chips from logs decked on site or
from other thinning projects and mills in the region. This approach to wood fuel
processing minimizes the handling of the material, reduces contact with the ground
(and potential sources of contamination) and provides the school with access to
wood fuel in most weather conditions above 30 degrees below zero The storage
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Renewable Energy Fund
Grant Application
capacity of the facility should allow for approximately two weeks of wood fuel to
minimize the need to chip wood fuel in severe weather conditions. The building
includes storage for a chipper, which would allow the equipment to operate in colder
temperatures. The overhead doors to the building would be 18-20 feet wide to allow
2 pairs of chip trailers (4 total) to be stored inside the building. The building would be
heated with residual heat from the boiler or an in -slab radiant heating system to
improve the performance and longevity of the chip trailers and chipping equipment
The wood fired boiler is estimated to have an output capacity of 4,000,000 Btu/hr, or
approximately 60% of the likely existing boiler and domestic hot water peak load.
Typical load profiles for schools show that approximately 90% of the boiler run hours
occur at 60% of the peak load or less. This will allow the wood boiler to operate in
medium and high fire mode as often as possible which optimizes efficiency and
reduces emissions. An energy model of the facility would be developed during the
design process to optimize the boiler size.
Anticipated capacity factor: The anticipated capacity factor is 0.26. Unlike a power
plant with a consistent base load, a biomass boiler is used to heat a building, which
has a variable load. The amount of heat generated is directly proportional to outside
air temperature. This capacity factor is actually two to three times better than the
existing connected heating equipment.
Based upon current fuel oil consumption, the wood boiler is estimated to use 800
tons of wood fuel each year. The Tok School is immediately adjacent to large
forested areas where active thinning is occurring, creating a steady supply of fuel in
close proximity to the facility. Thinning in the region typically generates more than
100 tons of material per acre. The school could be heated on an annual basis with
material from less than 10 acres per year. The material is likely to be staged in log
decks similar to drying processes used at lumber mills. Storing the wood fuel in this
manner will minimize handling of the trees and potential sources of contamination
(from soil and rocks). The wood fuel can be accessed throughout the winter and
chipped directly in to a chip trailer.
This project will not produce electrical energy, however, the combustion of 800 tons
of wood fuel is projected to produce 7,900,000,000 btu's of heat energy for space
heat and domestic hot water.
Anticipated barriers: Some anticipated barriers would be:
The wood fired heating system vendors are not in close proximity to the project site.
This will result in delays in shipping the equipment to the project site.
Service and technical support for the project are not in close proximity to the project
site. This will result in additional costs during the first year of operation to provide
additional training and support.
Access to wood fuel in winter will present processing problems in severe weather.
The building could be expanded to include storage for a chipper, which would allow
the equipment to operate in colder temperatures. The overhead doors to the building
could also be 18-20 feet wide to allow 4-5 chip trailers to be stored inside the
building. The building would be heated with residual heat from the boiler or an in -
slab radiant heating system to improve the performance and longevity of the chip
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ALASKA
and chipping equipment.
Renewable Energy Fund
Grant Application
Basic integration concept: The biomass boiler building would be constructed
on the same side of the building as the existing boiler room. A primary —
secondary pumping system would be utilized to allow the biomass boiler to be
the primary boiler and allow the fuel oil boilers to operate to supplement the
biomass boiler in peak heating conditions and/or at other times when the
biomass boiler is not functioning.
The main boiler room is currently located on the exterior of the school building on the
west end of the facility. A new boiler building with storage capacity for four 25-30 ton
chip trailers for wood fuel could be located approximately 150 feet from the existing
boiler room, with good access for large trucks and chip trailers. Wood fuel delivery
vehicles would access the campus from the main access road and would back the
vehicle into one of three overhead doors to the receiving conveyor. The hydraulics of
the live bottom trailer would be connected to hydraulic equipment in the building and
an empty trailer would be removed from an adjacent bay and filled with chips from
logs decked on site or from other thinning projects and mills in the region. This
approach to wood fuel processing minimizes the handling of the material, reduces
contact with the ground (and potential sources of contamination) and provides the
school with access to wood fuel in most weather conditions above 30 degrees below
zero. The storage capacity of the facility should allow for approximately two weeks of
wood fuel to minimize the need to chip wood fuel in severe weather conditions. The
building includes storage for a chipper, which would allow the equipment to operate
in colder temperatures. The overhead doors to the building would be 18-20 feet wide
to allow 2 pairs of chip trailers (4 total) to be stored inside the building. The building
would be heated with residual heat from the boiler or an in -slab radiant heating
system to improve the performance and longevity of the chip trailers and chipping
equipment. Deliveries should be scheduled to minimize conflicts with other activities
on the school campus.
Delivery methods: The biomass boiler building would be constructed similar to
any school capital project. The building and systems would be designed by
licensed professionals who will generate construction documents to be bid out
to contractors. The successful contractor would then mobilize and construct
the building.
Section 8
Biomass Boiler Building Schematic
Building placement map
4.3.2 Land Ownership
Identify potential land ownership issues, including whether site owners have agreed to the
project or howyou intend to approach land ownership and access issues
The project will be constructed on land owned by the School District, directly
adjacent Tok School.
Section 9:
Use A reement from the State of Alaska
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Renewable Energy Fund
Grant Application
4.3.3 Permits
Provide the following information as it may relate to permitting and how you intend to address
of applicable permits
cipated permitting timeline
List of applicable permits
Approval to Construct, from the State of Alaska Fire Marshall (approximately 30 days)
Department of Education and Early Development Review and Approvals (approximately 5 days)
Air Quality Review, from the Department of Environmental Conservation
The bid documents will be issued to the building department on April 6, 2009 for review. A
permit is expected to be issued by June 1, 2009.
Anticipated permitting timeline
The boiler output is likely to require review by Alaska Department of Environmental
Conservation, Division of Air Quality. Modeling of the stack height and emissions is
recommended. An environmental engineer will be responsible for modeling the stack height and
determining the emissions requirements for the boiler selected. The air quality permit process
will begin once a wood heating system vendor has been selected May 1, 2009. A permit is
expected to be issued by June 30, 2009.
Identify and discussion of potential barriers
No significant barriers are anticipated for either the building permit or air quality permit.
Compliance with local air quality standards can be readily met by many wood heating system
vendors. If additional air quality protections are requested by the Alaska Gateway School District
or required by the Alaska Department of Environmental Conservation, Division of Air Quality the
construction contract would be modified to include those items. The items may be bid as
additive alternates during the bidding negotiation phase of the project to determine the cost of
additional air quality controls and to expedite the procurement of those items.
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
There are no identified Endangered species in the Upper Tanana. The habitat
issues are few. The Tok Area is on a glacial outwash comprised of sand and
gravel. There is no permafrost in the immediate area and very limited permafrost
within a 25 mile radius of Tok. Most of the ground is suitable for year around
timber harvest operations. The major habitat issue is the natural cycle of large
wildfires in the Tok area comprising hundreds of thousands of acres in single
fires. This in essence creates a large single aged stand and forest succession
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401r--) ENERGY AUTHORITY Grant Application
that is never ideal for wildlife. Small mosaic of fires on the landscape is much
better habitat. By having active forest management and breaking up the
continuous stands of spruce fuel there is much reduced chance of large fires on
the landscape. Alaska Department of Fish and Game is in support of our project
and active timber harvest in mature stands of spruce. Timber harvest mimic fire
and create new areas for browse for moose and upper land game such as ruffed
grouse. Many timber harvest projects have been jointly planned for habitat
improvement between Forestry and Fish & Game in the area and will continue
into the future. Tok again is on a glacial outwash and has very limited wetlands.
Wetlands in not an issue in the Tok Area.
There are limited Archaeological and historical resources in the area, this has
never been a restriction to development or timber harvest activities in the past 50
years in the Tok Area. Those areas that are identified are largely on Native
owned lands, where there are strict controls. The land development constraints
are just the short construction season in the upper Tanana from June through
September for all earthwork. There are no zoning constraints with any local
government of any kind including no borough. Telecommunications interference
is not an issue. There are no negative Aviation considerations for the project or
harvest operations. IF there is less fires there would be less smoke and that
would be a great benefit for the all aviation activities. Visual, aesthetics impacts
are minimal with the harvest of hazardous fuels and timber in the area. The
harvest activities are limited in size and are never seen from the highway. Any
impact is short term in duration with a vigorous rate of reproduction of aspen from
coppice (20,000 trees per acre sprouting in the 1990 burn) and spruce from
natural seeding in the Tok Area of up to a foot of growth annually. Timber harvest
is much preferable to large burns such as the 100,000 plus Tok River fire that
scorched the land in 1990 or the million acres of large burns in the Tok Area in
2004.
The primary environmental barrier we have in the Upper Tanana is the extreme
cold temperatures. It is difficult to harvest timber in temperatures colder than 30
below zero. We have several weeks a year that will reach 30 below and colder.
This will not be a prohibiting factor for the supply of biomass for this project. A
minimum of one months supply will be on hand in chip vans at all times.
Additionally biomass will be stored in tree length decks in Tok that will be chipped
through out the winter by a chipper stored in the heated building. Harvest of
timber in winter has taken place in the Upper Tanana for over 70 years. Lastly a
very positive proactive approach to burning the hazardous fuels for biomass
rather than letting it burn in forest fires will have a huge positive impact on the air
quality. New research by major universities is finding large quantities of suit and
other pollutants from wildfires much more damaging to the atmosphere than once
thought and may be a contributing factor to the global climate change.
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.
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4.4.1 Project Development Cost
Renewable Energy Fund
Grant Application
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 or000sed renewable anarmr Q"cfam
Requested grant funding:
Grant Funds Requested: A $3,245,349 grant from the Alaska Energy Authority is
requested. The Alaska Gateway School District does not have the ability to
borrow funds for the project. $251,211 will be used for project design of the
integrated complex.
Applicant matching funds:
The Tok Umbrella Corporation has already received a $500,000 grant for the
purchase of a chipper, chip trailers and expansion of the building to store the
chipper.
The school district has recently thinned adjacent forest areas in order to reduce
fire hazard. A portion of that material has been decked on site and will be
available to heat the facility during the first year of operation. This material will
save the school district $60,000 to $120,000 in fiber costs during the first year of
operation.
Section 10:
Estimate of Probable costs of design and construction
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
How will 0&M costs be funded?
The project operation and maintenance costs will be funded from the regular budget of
the school district, and the reduced cost of energy to heat the school each year.
Requested grant funding.
Funding will not be needed for O&M. The grant will help reduce the annual loan
payments and result in greater assurance that the reduced cost of energy to heat the
school each year can be used to enhance the educational mission of the Alaska Gateway
School District.
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-fi rnrtari nmior+
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Renewable Energy Fund
Grant Application
N/A
4.4.4 Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
Section 11
Application Cost Worksheet
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� ALAUTAUTENERGYHKA
Renewable Energy Fund
Grant Application
4.4.5 Business Plan
Discuss your plan for operating the completed project so that it will be sustainable. Include at a
minimum proposed business structure(s) and concepts that may be considered
The District proposes to fully develop a business model that will initiate a
conversion from fossil fuel to wood fiber, and to use wood fiber garnered from
local wildfire remediation efforts, and from the district's own property. The issues
that will be addressed in the fully developed plan are:
• Appropriate acquisition of fiber
■ Methods of storage and delivery of bio-mass
• Long term supplies
• Economical use of available resource
■ Personnel
■ Operations and Maintenance costs
• Integration with local economy
• Environmental impacts, if any
4.4.6 Analysis and Recommendations
Provide information about the economic analysis and the proposed project. Discuss your
recommendation for additional project development work
The project was evaluated using a 30-year cash flow analysis. A basic benefit to
cost (B/C) ratio was calculated as well as accumulated cash flow. Accumulated
cash flow is similar to simple payback with the exception that accumulated cash
flow takes the cost of financing and fuel escalation into account. For many
building owners, a positive accumulated cash flow of about 10 years maximum is
considered necessary for implementation. Positive accumulated cash flow in year
one indicates a strong project. Positive accumulated cash flow in year 20 or more
indicates a challenged project.
The existing conditions section of the analysis is based on data collected at the
school. The cost of wood chips ($60/ton is based on estimates from the local
Department of Forestry office which has recent data on thinning operations in the
area. The biomass boiler efficiency was assumed to be 65%. Wood fired boilers
efficiencies can reach 70% to 75%, so 65% is conservative. The wood chips in
the Upper Tanana are assumed to be at approximately 35% moisture content
after a year being decked, yielding 5400 Btu/Ib.
Power is very expensive in Alaska compared to the continental US. Because of
this the cost of the additional electricity used by the new boiler plant was
accounted for in the analysis. The power use is based on historical data from a
wood fired school boiler plant in Darby, Montana, and is estimated at
approximately 55,000kw annually.
The O&M inflation rate was assumed to be 5%. The fuel cost escalation for
petroleum based fuels was estimated at 12% annually which is based on
historical data since September of 1990. Fuel cost escalation for wood based
fuels was estimated at 6% annually.
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d1VD ENERGY AUTHORITY Grant Application
At low loads, the biomass plant will not be able to sufficiently turn down to operate
efficiently. During these times, the fuel oil boilers will operate. Also at the building
peak heating load, the biomass boiler will not be large enough, so the fuel oil
boilers will operate to supplement the heating system. Because of these two
reasons, it is assumed the biomass system will supplant 90% of the facilities fuel
oil use.
Based on discussions with other biomass system users, system manufacturers,
and estimates of operator time required, additional operation and maintenance
time on average of 4 hours per week were assumed. The cost of this over a 40
week operation period at $20/hour was used for the analysis. In addition,
experience has shown that the first two heating seasons have extra maintenance
time as the system "bugs" are worked out and the maintenance staff learns the
system. The analysis includes an additional 4 hours per week for the first two
years to account for this.
Economics based on the very conservative estimated project costs and the
assumptions listed above were assembled and is shown on the attached
summary. With the project fully funded, the economic analysis shows a positive
cash flow in the first year of approximately $89,000 in fuel savings, and a positive
accumulated cash flow (PAC) of $1,387,000 in year 10, $4,609,000 in year 20;
and $11,943,000 in year 30. This indicates a strong project. The simple payback
is 32 years. The B/C ratios are 0.94 at year 15; 1.62 at year 20; and 4.19 at year
30. Since the project is expected to have a 30 year life, a B/C ratio greater than
1.0 in year 20 indicates a strong project.
SECTION 5— PROJECT BENEFIT
Explain the economic and public benefits of your project. Include direct cost savings,
and how the people of Alaska will benefit from the project.
The benefits information should include the following:
• Potential annual fuel displacement (gal and $) over the lifetime of the evaluated
renewable energy project
• Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price,
RCA tariff, or avoided cost of ownership)
• Potential additional annual incentives (i.e. tax credits)
• Potential additional annual revenue streams (i.e. green tag sales or other renewable
energy subsidies or programs that might be available)
Discuss the non -economic public benefits to Alaskans over the lifetime of the project
The Energy Information Administration indicates that over the past 10 years, the price of
heating fuel has increased from 97.7 a gallon in March of 1998, to 3.839 a gallon in
March of 2008. (http://tonto.eia.doe.gov/dnav/pet/hist/whoreus4w.htm)
On the high end, in FY08 (2007-2008) the Tok School complex consumed 65,419 gallons
of heating fuel. Using that amount at the price of 4.09 a gallon, and increasing that price
by 13% a year, (which is the ten year average), by 2018 the district will spend over
$800,000 a yearjust to heat a single school. Using average fuel consumption figures,
(56,567 gallons), and a more conservative estimate of 10% annual increase for heating
fuel, it will cost Tok School $545,532 annually. At that rate, in 30 years, if heating oil is
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40K--) ENERGY AUTHORITY
Renewable Energy Fund
Grant Application
still even being used as a heat source, it will cost $3,670,069 annually to heat the school.
The immediate public benefit is that this project will have, is to allow the school district to
spend less dollars on facilities, and more dollars in the classroom teaching children,
which is the mission of all schools. Our district spends a disproportionate level of financial
resources on heat and power. To the school district in the short term, the project means
that we could hire an itinerate counselor, or a music teacher.
Assuming a successful project, the district will initiate a systemic conversion from fossil
fuel to biomass fuel at two more sites, Northway and Tanacross. Northway is a 30,000
gallon a year facility, and Tanacross where this 15,000 gallon a year project will be a
partnership with the community, offsetting the heating costs of a whole community.
In the long term, this project could be what initiates the beginning of a systemic energy
conversion in Interior Alaska, moving the region from to a renewable biomass energy
source.. The school is the largest single consumer in our small community, followed by
the DOT and State Forestry complex, which is also invested in this conversion.
Initiating a conversion to biomass in the form of Wildfire remediation will simultaneously
make our communities safer, supply a sustainable form of low cost heating fuel for our
schools, initiate a regional conversion from fossil fuels to biomass, and be the foundation
of an industry that will create long-term viable timber industry employment for the -
residents of the Upper Tanana.
5.a.ii Heat: 50,913 gallons (from economic spreadsheet)
5b. $208,743 (from economic spreadsheet)
Section 4:
Economic Summary
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
form -
The total cost of the project is projected to be $3,805,349, including the boiler
building, boiler and connecting infrastructure, fiber wagons, and chipper.
$500,000 in cash is already in hand for this project, along with $60,000 to
$120,000 thousand in -kind, in the form of decked fiber on the applicants
premises.
Section 10:
Estimate of probably cost of design and construction.
Section 12:
Grant budget form
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Renewable Energy Fund
Grant Application
SECTION 7 — ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION:
A. Resumes of Applicant's Project Manager, key staff, partners, consultants, and
suppliers per application form Section 3.1 and 3.4
B. Cost Worksheet per application form Section 4.4.4
C. Grant Budget Form per application form Section 6.
D. An electronic version of the entire application per RFA Section 1.6
E. Governing Body Resolution per RFA Section 1.4
Enclose a copy of the resolution or other formal action taken by the applicant's
governing body or management that:
authorizes this application for project funding at the match amounts indicated in
the application
- authorizes the individual named as point of contact tq 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
Todd Poage
Signature
Title
Superintendent
Date
October 7th, 2008
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•
s t` A
FINAL DRAFT
Pre -feasibility Assessment for
Integration of Biomass Energy Systems
in
Tok School
Tok, Alaska
October 3, 2008
Presented by
CTA Architects Engineers
Nathan Ratz & Nick Salmon
For
Alaska Gateway School District
CTA Project: AGSD_TOK
Executive Summary
The following assessment was commissioned to determine the technical and economic
feasibility of integrating a wood fired heating system in the existing Tok School located in Tok,
Alaska.
The Tok School is approximately 75,000 SF in size and includes school, detached multipurpose
building housing an ice hockey rink and shooting range with a detached Zamboni garage. The
school is heated with a pair of fuel oil fired hot water boilers each with a 3,000,000 btu capacity
(output). A 1,250,000 btu (input) (1,000,000 btu output) domestic hot water for lavatories and
showers has a 600 gallon capacity and represents a portion of the fuel oil use for the facility.
The facility currently uses approximately 46,250 gallons of fuel oil each year at a current
delivered cost of $4.10/gallon or $190,000 per year. The 10,000 gallons of fuel consumption
associated with the multipurpose building and Zamboni garage is does not appear to warrant
spending an additional $700,000 in buried pipe and integration costs. If the price of fuel oil were
to rise substantially !in the future, providing a second heating loop.the multi -purpose building, or
future buildings might be considered. For the purpose of this investigation it is assumed that the
wood fired boiler would serve only the school building.
Energy Analysis•
For the purpose of this investigation it is assumed that 90% of the +existing annual fuel oil
consumption could be offset by the combustion of wood chips or wood pellets in a boiler
approximately''/2 the size of the combined capacity of the fuel oil boilers. Modeling energy
consumption would establish a more precise wood boiler size for the facility. The wood heating
system would be sized to meet approximately 90% of the typical annual heating load of the
building, using the existing boilers for additional capacity in peak load conditions, and for future
expansion.
Electrical energy consumption is projected to increase with the installation of the wood fired
boiler, conveyors, augers, compressors and a pair of circulating pumps. The cash flow analysis
accounts for the additional electrical energy consumption and reduces the annual savings
associated with using wood fuel rather than fuel oil.
Building & Site Constraints:
The main boiler room is currently located on the exterior of the school building on the west end
of the facility. A new boiler building with storage capacity for three 25-30 ton chip trailers for
wood fuel could be located approximately 150 feet form the existing boiler room, with good
access for large trucks and chip trailers. Wood fuel delivery vehicles would access the campus
from the main access road and would back the vehicle into one of two overhead doors to the
receiving conveyor. The hydraulics of the live bottom trailer would be connected to hydraulic
equipment in the building and an empty trailer would be removed from an adjacent bay and
filled with chips from logs decked on site or from other thinning projects and mills in the region.
This approach to wood fuel processing minimizes the handling of the material, reduces contact
with the ground (and potential sources of contamination) and provides the school with access to
wood fuel in most weather conditions above 30 degrees below zero. The storage capacity of
the facility should allow for approximately two weeks of wood fuel to minimize the need to chip
wood fuel in severe weather conditions. The building includes storage for a chipper, which
would allow the equipment to operate in colder temperatures. The overhead doors to the
building would be 18-20 feet wide to allow 2 pairs of chip trailers (4 total) to be stored inside the
building. The building would be heated with residual heat from the boiler or an in -slab radiant
heating system to improve the performance and longevity of the chip trailers and chipping
equipment. Deliveries should be scheduled to minimize conflicts with other activities on the
school campus.
Fuel Suooly:
Tok School is immediately adjacent to large forested areas where active thinning is occurring,
creating a steady supply of fuel in close proximity to the facility. As of this writing, approximately
1200 tons of decked spruce are in place, ready for chipping. Recent yield assessments in the
region typically generates between 50 and a 150 tons of wood fiber per acre. The school could
be heated on an annual basis with material from less than 15 acres per year.
Wood pellets are not currently being produced in bulk quantities in the region. Wood pellet fuel
may also freeze in extreme temperatures if stored in exposed grain bins rather than with a
heated building. For this reason a wood pellet heating system was not explored in greater
detail.
Air Quality Permits:.
Air quality permit requirements in Tok should be reviewed in greater detail. The boiler output is
likely to require review by Alaska Department of Environmental Conservation, Division of Air
Quality. Modeling of the stack height and emissions is recommended, and is built into the
project costs.
Estimated Costs:
The total project costs including integration, contingency and escalation are estimated as noted
on the attached spreadsheet.
Results of Evaluation
The cash flow analysis assumes delivered fuel oil costs of $4.10/gallon, wood chips at a locally
delivered price of $60 per green ton.
Wood Chip Options:
Option A.1: Appears to achieve positive accumulated cash flow (PAC) in 1 year with a subsidy
of $2,848,000. The project may achieve PAC in 18 years without subsidy. 30 years savings
(avoided costs) are approximately $8,000,000 to $11,000,000.
Accumulated cash flow is the primary evaluation measure that is implemented in this report and
is similar to simple payback with the exception that accumulated cash flow takes the cost of
financing and fuel escalation into account. For many building owners, a positive accumulated
cash flow of about 10 years maximum is considered necessary for implementation. Positive
accumulated cash flow in year one indicates a strong project. Positive accumulated cash flow in
year 20 or more indicates a challenged project.
Proiect Fundin
The Tok Umbrella Corporation has already received a $500,000 grant for the purchase of a
chipper, chip trailers and expansion of the building to store the chipper.
The Alaska Gateway School District is pursing a grant from the Alaska Energy Authority
Renewable Energy Program.
The project might be of interest local rural electric and telephone cooperatives. Rural electric
and telephone cooperatives have the ability to provide a portion of the project financing through
the Rural Economic Development Loan and Grant (REDLG) program.
The school could enter into a performance contracts for the project. Companies such as
Siemens, McKinstry, Johnson Controls and Chevron have expressed an interest in participating
in funding projects of all sizes throughout the Western United'States. This allows the facility
owner to pay for the project entirely from the guaranteed energy savings, and to minimize the
project funds required to initiate the project.
Next Steos7
The Tok School appears to be a good candidate for the use of a wood biomass heating system.
Modeling the energy use would establish the appropriate size and energy savings associated
with the boiler. It is recommended that a detailed energy analysis and cost estimate be
developed to refine the project economics with grant support from the Alaska Energy Authority
grant program.
Attachments:
• Diagrams of biomass heating system and wood fuel storage facility.
• Cost estimate.
• Cash flow analysis.
Alaska Gateway School District
Tok School
Fuel Oil Use Summary
Building
Fuel Oil Use - Gallons
FY07
I FY08
AVG
School
37571
54930
46251
Multipurpose Building& Zamboni Garage
10144
10489
10316
Totals
477151
654191
56567
Connected Boiler Load Summary
Output
MBH
Peak
Load
Factor
Likely
System
Peak
MBH
School
Boiler 1 3000
0.6.
1800
Boiler 2 3000
0.6
1800
D W H 1000
1.0
1000
School Total
7000
4600
Multipurpose Building
Boiler (Heat) 1528
1.0
1528
Boiler DWH) 346
1.0
346
Zamboni Garage
Boiler 140
1.0
140
Remote Buildings Totals 2014
2014
Campus Total
9014
6614
Proposed Biomass Boiler Size
Likely
System
Peak
MBH
Biomass
Bailer
Factor
Biomass
Boiler
Size
MBH
School Total 4600
0.6
2760
Remote Buildings Total 2014
0.6
1208
Campus Total 6614
3968
School Heating System Capacity Factors
Heat Enerav Produced
Gals
Btu/ al
Input
Btu
Assumed
Efficient
Heat Energy Prod.
Btu
56567
138690
7.85E+09
0.8
6.28E+09
Maximum Potential Out ut - Existinq Boilers
nnectedOutput
Btu/hr
F9(
Weeks of
O eration
Possible
Btu
Capacity
Factor
14000
36
5.45E+10
0.12
Maximum Potential Output - Biomass
Boiler
Connected
Output
Btu/hr
Weeks of
O eration
Max
Possible
Btu
Capacity
Factor
3968000 1
36
2.4E+10
0.26
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SE4L't
TONYXNOWLES, GOVERNOR
u GOLDBELTPLACE
DEPARTMENT OF EDUCATION 801 WEST 10THSTREET. SUITE200
✓UNEA U. ALASX4 99801-1894
OFFICE OF THE COMMISSIONER (907) 465-2800
FAX (907) 465-4156
Larry Weisz, Sr., President
Alaska Gateway School Board
P.O. Box 226
Tok, AK 99780
July 24, 1998
RECEIVED
AUG m 3 1998
AK GATEWAY SCHOOL DISTRICT
TOK , AK 99780
Re: Notice of Termination of School Facilities Use Permit and Issuance of New Use Permit
in Conformai.ce with Regulations of the Department of Education.
Dear Mr. Weisz:
Consistent with 4 AAC 31.090(i), the State of Alaska, Department of Education ('Department")
hereby gives notice of termination of the outstanding USE PERMIT entered by and between the
Department and the Alaska Gateway School District for the use of State owned or leased
property (land and/or buildings) for public elementary and secondary school purposes. This
termination is made in accordance with Section V (b)(2) of the Use Permit, as the current permit
is not in compliance with 4 AAC 31.090 ("Regional School Board Use Permits"), which became
effective on May 21, 1997. A replacement Use Permit which incorporates all regulatory
requirements has been issued and included under this cover and shall take effect simultaneously
with the termination of the former Use Permit.
Please direct any questions regarding this termination and issuance of the new Permit to Michael
Morgan, Facilities Manager, State of Alaska, Department of Education.
Sincerely,
hirley J. Holloway, Ph.D.
Commissioner
Enclosure
cc: Dr. James Elliott, Superintendent
Alaska Gateway School District
Philip Reeves, Assistant Attorney General
Department of Law
Michael Morgan, PMP, Manager
Regional School Board Use Permit
This Regional School Board Use Permit ('Permit") is issued by the State of
Alaska, Department of Education ("State") to the Alaska Gateway School
District School Board ('Board") pursuant to the authority of AS 14.08.151, as
implemented through 4 AAC 31.090. This Permit allows the Board to occupy
and use those State owned or leased properties described herein, in strict
conformance with all terms, conditions, provisions and definitions set out in 4
AAC 31.090.
This Permit covers the property generally described as:
See attached Appendix A
and in addition covers any other property defined in 4 AAC 31.090(j)(4). The
Board shall promptly notify the State if it believes that* this list is inaccurate or
incomplete.
This Permit takes effect upon receipt by the Board and remains in effect
indefinitely unless and until modified or terminated in accordance with 4 AAC
31.090 or other applicable law. The Commissioner of the Department of
Education is the designated agent to 'act on behalf of the State in all matters
pertaining to this Permit, except where context or state law requires otherwise.
All communications relating to this Permit shall be mailed to the Commissioner
of Education at the current address.
DATED this-1 'day 4 ;J;ZKJ - 1998.
Shirley Holloway, Ph.D.
Commissioner
Regional School Board Use Permit
Appendix A
,SEC to
ESPMATE OF PROOMLE COST OF DESIUN IS CONHIAUCL v1pM'NOO ewpi 1 MI
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PRECONTINGENCV PROJECT TOTAL
32.7 4-
CONTINGENCY
RwX
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RECOMMENDED PROJECT BUDGET- DESIGN ANG
CONSTRUC
TION
COSTS
g3,296,348
SEC- %k
'pALASKA Renewable Energy Fund ENERGYAUTHORITY
Application Cost Worksheet
Please note that some fields might not be applicable for all technologies or all project
phases. Level of information detail varies according to phase requirements.
1. Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability
Unit depends on project type (e.g. wi
2. Existing Energy Generation
Bio-Mass, need 20 Acres annual
output, biomasss
a) Basic configuration (if system is part of the Railbelt' grid, leave this section blank)
i. Number of generators/boilers/other 2 heating fuel boilers
ii. Rated capacity of generators/boilers/other 3,000,000,000 each
iii. Generator/boilers/other type Burnham, using heating fuel
iv. Age of generators/boilers/other 13 years
v. Efficiency of generators/boilers/other 75%
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor Approx. $1000
ii. Annual O&M cost for non -labor $231,900 for heating oil
c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the
Railbelt grid, leave this section blank)
i. Electricity [kWh] Est. 10,000
ii. Fuel usage
Diesel [gal] 56,6000
Other
iii. Peak Load 6,000,000,000
iv. Average Load 1.2 btu
v. Minimum Load 0
vi. Efficiency 75%
vii. Future trends Cost for heating fuel has gone up 12% on average annually since 1991.
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] 56,000
ii. Electricity [kWh] $10,000
I The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden
Valley Electric Association, the City of Seward Electric Department. Matanuska Electric Association and Anchorage
Municipal Light and Power.
RFA AEA 09-004 Application Cost Worksheel revised 9126108 Page 1
��ALASHKA Renewable Energy Fund
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
a) Installed capacity 3,968,000 btu/hr
b) Annual renewable electricity generation
i. Diesel [gal or MMBtu]
ii. Electricity [kWh] 55,000 per/Kw
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons] 800 tone of fiber.
vi. Other
a) Total capital cost of new system 3,707,000
b) Development cost 199,364
c) Annual O&M cost of new system $126,562
d) Annual fuel cost $5600 in heating fuel and $40,000 in fiber at market
value, or $2,000 for years one and two.
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity +25,000 KwH
ii. Heat $126,562.00
iii. Transportation
b) Price of displaced fuel
c) Other economic benefits
d) Amount of Alaska public benefits
6. Power Purchase/Sales Price
a) Price for power purchase/sale
Creating jobs, saving funds to improve education.
RFA AEA 09-004 Application Cost Worksheet revised 9126108 Page 2
/4'1EDALASKA Renewable Energy Fund
MILD ENERGY AUTHORITY
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 10.71
Payback 13 ye
RFA AEA 09-004 Application Cost Worksheet revised 9126108 Page 3
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CTA is licensed in the State of Alaska under the following license numbers:
CTA Business License Number is 299774
CTA Architectural and Engineering License Number is 84071-F
306 N. Railroad Aw. Ste. 104 Missoula, Montana 59802 406. 728.9522 Pae: 406. 728.8287