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HomeMy WebLinkAboutKenny Lake School Project App Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 1 of 12 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 12 9/3/2008 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Copper River School District Type of Entity: Public School Regional Education Attendance Area Mailing Address PO Box 108 Glennallen, AK 99588 Physical Address Aurora Drive Glennallen, AK 99588 Telephone 907-822-3234 Fax 907-822-3949 Email jelliott@crsd.k12.ak.us 1.1 APPLICANT POINT OF CONTACT Name Tim Hand Title Maintenance Mechanic II Mailing Address PO Box 108 Glennallen, AK 99588 Telephone 907-822-3234 Fax 907-822-3949 Email thand@crsd.k12.ak.us 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 x A local government, or Regional Education Attendance Area 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 12 9/3/2008 SECTION 2 – PROJECT SUMMARY Provide a brief 1-2 page overview of your project. 2.1 PROJECT TYPE Describe the type of project you are proposing, (Reconnaissance; Resource Assessment/ Feasibility Analysis/Conceptual Design; Final Design and Permitting; and/or Construction) as well as the kind of renewable energy you intend to use. Refer to Section 1.5 of RFA. The Copper River School District proposes to install a bulk fuel wood boiler heating system for the Kenny Lake school. The Kenny Lake School provides instruction for K – 12th grades for 125 students. CRSD is requesting grant monies for Resource Assessment/ Feasibility Analysis/ Conceptual Design work, Final Design, Permitting, Purchase of bulk fuel wood boiler, delivery system and building construction, which are Phase II, Phase III and Phase IV as describe in RFA 09-004 section 2.2. A qualified Engineering firm will be contracted to perform Phase II and Phase III when grant monies have been awarded. Public bid solicitations will be advertised for bulk fuel boiler system and building construction. Local construction companies will be targeted. 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. The final design work will build upon the feasibility study and preliminary design work completed as of October, 2008. A bulk fuel wood boiler will be built at the Kenny Lake K-12 school to displace 18,035 gallons of fuel oil. The current boilers will be used for backup and low load periods. This project will involve school district personnel, local contractors, design engineers and Alaska Energy Authority. This project will employee local residents in project management, construction and chip material delivery. 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. $1.2 million is requested for this project. The Copper River School District will contribute necessary land for construction to see this project succeed. Phase II requires $45,000 in State funds to complete by March 6, 2009. Phase III requires $75,000 in State funds to be completed by June 17, 2009. Phase IV requires $1,080,000 in State funds to be completed by Nov. 19, 2009. 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 installation of a bulk fuel wood boiler system will save the CRSD an estimated $27,452 in fuel costs, annually. $3,000,000, using conservative inflation rates, will be saved over 20 years. This project will help reduce the hundreds of acres of standing and down dead spruce killed from the spruce bark beetle outbreak of the 1990’s. There is an agricultural subdivision where landowners must clear forested land and turn it into tillable agricultural land by 2015. Currently landowners are piling hundreds of stems that could be chipped and used for fuel. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 4 of 12 9/3/2008 This project will increase the viability of the local sawmill with sustainable wood harvest. Utilizing woody biomass will help to reduce the CRSD carbon footprint by using this carbon neutral energy and be a demonstration project for many Alaskans and visitors to see. The State of Alaska spent an average of $32.82/acre to perform wild land fire suppression. This project would utilize approximately 20 acres/year at a savings of $700 in reduced wild land fire suppression costs. 2.5 PROJECT COST AND BENEFIT SUMARY Include a summary of your project’s total costs and benefits below. 2.5.1 Total Project Cost (Including estimates through construction.) $1,200,000 2.5.2 Grant Funds Requested in this application. $1,200,000 2.5.3 Other Funds to be provided (Project match) $Value of land for building 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $1,200,00 2.5.5 Estimated Benefit (Savings) $27,452 annually 2.5.6 Public Benefit (If you can calculate the benefit in terms of dollars please provides that number here and explains how you calculated that number in your application.) $32.82/acre wild land fire control, $3,000,000 savings in 20 years 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. Heidi Veach, Consultant. Heidi Veach currently works for the Cooperative Extension Service, UAF, Glennallen Project Office. The Extension Service office will close Nov. 30, 2008 and Ms. Veach will become a private consultant able to focus on this project. While working for Extension Ms. Veach was instrumental in obtaining the initial feasibility study and preconstruction grant from Alaska Energy Authority. She has provided technical assistance in applying for the AEA grants as well as organizing the different agencies and private sector to make this project a sustainable project. Resume attached. AEA project technical assistance will be utilized to make this project a success. 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.) Phase II – Resource Assessment/Conceptual Design (35%). Jan 6 – March 6, 2009. Phase III – Final Design. March 9, 2009 – May 15, 2009. Permitting May 18, 2009 – June 17, 2009. Approval to Construct Issued – June 17, 2009. Phase IV – Construction Phase. Procurement June 18, 2009 – July 30, 2009. Construction July 31, 2009 – 10 22, 2009. Startup October 14, 2009 – October 22, 2009. Final Inspection October 22, 2009. Project Closeout October 23, 2009 – Nov. 19, 2009. See Kenny Lake Preliminary Schedule. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 5 of 12 9/3/2008 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. # 1 Phase II – Resource Assessment/Conceptual Design (35%). Contract with Engineer firm to perform assessment and design. Finish by March 6, 2009. # 2 Phase III – Final Design. Contract with Engineer firm to perform final design and permitting requirements. Begin March 9, 2009 and finish by June 17, 2009. Panel consisting of AEA, Copper River School District and Project Manager will accept estimate and design. Go – no go decision made. # 3 Phase IV – Construction Phase. Publish Solicitation for construction of buildings, installation and pipe connections. Publish Solicitation for boiler and feed system. If design and estimate accepted prepare solicitation by June 18, 2009. July 20, 2009 pick construction and boiler manufacturer. Begin construction of building July 27, 2009. Develop timelines for construction before boiler system is put in place. Project manager responsible for coordinating schedules. See Kenny Lake Preliminary Schedule. 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. CTA Engineers have developed preliminary design work for buildings and the bulk fuel wood fired boiler system. We will contract with an Engineering firm to provide final design and cost estimates. School personnel, local construction companies and local consultants will be utilized to accomplish this project. The CRSD has a letter of commitment from Regal Enterprises to provide the necessary chips for a bulk fuel wood fired boiler. Letter attached. Public solicitations will be used to procure construction work and a boiler manufacturer. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. The Project Manager, Heidi Veach, will be the point of contact for all engineering, construction and consultants. Final design work will be monitored by Ms. Veach via email and bi-weekly phone calls to asses progress. AEA will be given monthly progress & financial reports by email beginning in February, 2009. The school district, AEA and the Project Manager will be on the panel to evaluate the design and cost estimates. They will also be on the evaluation panel to select construction bids and boiler manufacturer bids. AEA will be informed by email and regular mail of selections made for each phase. During construction the Project Manager will perform daily or weekly site visits to ascertain adequate progress. Bi-weekly reports will be emailed to AEA. At the end of each phase a final report will be produced to denote success and any problems encountered. A final inspection of all work will be performed with Tim Hand of the CRSD, Project Manager and AEA representative. Quarterly Progress & Financial Reports will be emailed beginning Jan. 15, 2009. 3.6 Project Risk Discuss potential problems and how you would address them. Potential problems are each phase not being accomplished on time. Project Manager will be point of contact for all contractors. Having one point of contact will allow for coordinated communication. Weekly communication with contractors will be maintained to identify any problems. Solicitations for project work not bid on. Month long solicitations for project work will occur. Area Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 6 of 12 9/3/2008 contractors will be contacted in advance of publish solicitations to gain interest. Weather conditions will be monitored to identify earliest construction start time. 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. State of Alaska : Valdez/Copper River Area manages 4 million forested acres with an average of 20 tons of wood fiber/acre US Federal : BLM 144,000 forested acres with an average of 20 tons of wood fiber/acre Tonsina North Agricultural Subdivision: 1,000 acres There are few alternatives for heating in the Copper River Valley. Wind in the area is not consistent enough at even 6 mph to warrant wind turbines – Copper Valley Electric Cooperative commissioned a study for the Copper River and Valdez service area in 2006. Kenny Lake is not close to streams to look to hydro power at any scale while solar power could have some potential. The uses of fuel oil or propane are the only alternatives and the cost continues to be very high. The Copper River Valley does have ample amounts of small diameter trees suitable for chipping. There is currently one large chipper owned by the one sawmill in the Valley. They are dedicated to making this project a success and are willing to work with local residents to utilize all of the valley’s resources. 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 Kenny Lake School which provides K – 12 instructions is heated by two oil-fired Burnham boilers rated at 1.87 million BTU's/hr (net, each). They are located in a single mechanical room at the rear of the main building. Heat is delivered via a hydronic heating system, with supplemental hot air. 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 State of Alaska has 4 million acres of forest land in the Copper River/Valdez area. Hundreds of acres are in non merchantable timber that could be utilized to produce chips for this heating system. The Bureau of Land Management also has 144,000 acres of forest land within the Glennallen District that could be Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 7 of 12 9/3/2008 harvested. Ahtna, Inc. and Chitina Native Corporation have native forest land within 30 miles of the Kenny Lake School. This project has the potential of increasing work and jobs for people within the Kenny Lake area. The local sawmill, Regal Enterprises, is able and looking forward to increase its capacity to provide chips. Local residents have forest land that needs to be cleared of hazard fuels and a new agricultural subdivision has hundreds of acres to clear. This material could be chipped and be a source of fuel. More workers would be needed to clear and chip the material. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Most homes are heated with a combination of oil-fired boilers and wood stoves. The increase of fuel oil is resulting in outmigration of Copper River Valley residents to Anchorage and Fairbanks. Utilizing the small diameter timber to produce chips will not impede resident’s ability to harvest firewood. Firewood is dead and downed wood usually in the 6 – 10” diameter range while chips can be made of smaller diameter wood. 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  A description of renewable energy technology specific to project location: Kenny Lake 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.  Optimum installed capacity: The optimum boiler size is approximately 60% of the connected load of the school. Typical load profiles for schools show that approximately 90% of the boiler run hours occur at 60% of the peak load or less. Sizing the boiler at this smaller size allows the boiler to operate in the medium and high fire range more often which optimized efficiency and reduces emissions. During the design process, an energy model of the facility will be developed to determine the final optimum boiler size.  Anticipated capacity factor: The anticipated capacity factor is 0.24. 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.  Anticipated annual generation: The biomass boiler is estimated to use approximately 2,770,000,000 Btu per year, which is approximately 316 green tons of chips.  Anticipated barriers: Some anticipated barriers would be: 1. The distance of this site from the boiler system manufacturers. During construction, this Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 8 of 12 9/3/2008 creates a longer lead time for the boiler to be manufactured and shipped to Kenny Lake. The construction schedule will be closely monitored to make sure this does not cause any project delays. 2. Access to wood fuel in winter. This will be addressed further in design. The request for proposal process used to select a wood fuel vendor would also address this.  Basic integration concept: The biomass boiler building would be constructed south of the school just off the perimeter access road. The biomass boiler would be a boiler added to the existing boiler system. 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.  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. 4.3.2 Land Ownership Identify potential land ownership issues, including whether site owners have agreed to the project or how you intend to approach land ownership and access issues. The Kenny Lake School resides 100% on State owned land. The Copper River School District is fully in support of this project. See Kenny Lake Site Plan.pdf 4.3.3 Permits Provide the following information is it may relate to permitting and how you intend to address outstanding permit issues.  List of applicable permits  Anticipated permitting timeline  Identify and discussion of potential barriers A Plan Review & Approval to Construct will be required by the State Fire Marshall. No local building permits are required. At this time, no ADEC permits are required. 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 This facility will be located on School District property adjacent to the existing school building. It will not be located on wetlands. Location will be on previously disturbed land. No archaeological issues are present. There are no land development constraints. The site will not interfere with any telecommunications or aviation concerns. Visual, aesthetics impacts will be dealt with at design time. No other barriers are foreseen at this time. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 9 of 12 9/3/2008 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 See Kenny Lake Project Cost Estimate 100708.xls 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 Project Operating & Maintenance Costs are estimated to be 3,200 and 6,720 See KL Fuel Oil Chips Spreadsheet.xls. 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 Not Applicable 4.4.4 Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. See Kenny Lake School Cost Worksheet 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 addition of the wood fired boiler at the Kenny Lake School will become part of the heating system maintenance program. All management and financing of the boiler will part of the Copper River School District. Bids for delivered fuel will be obtained in early fall, as are fuel oil prices, and a contract will be Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 10 of 12 9/3/2008 executed. Scheduling of delivery will be address in the contract, to avoid hazardous interaction between students and the 20’ trailers full of wood chips. An additional 4 hours/week are estimated for O&M at a cost $3,200. 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. The B/C ratio is the cumulative cash flow divided by the initial cost. 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 ($70/ton) is based on a local lumber mill quote. 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 were assumed to be at approximately 35% moisture content, yielding 5400 Btu/lb. 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. The O&M inflation rate was assumed to be 5%. The fuel cost escalation for petroleum based fuels was estimated at 12% annually. This is based on long term historical data since 1990. The fuel oil inflation rate since 1973 is approximately 9%. Fuel cost escalation for wood based fuels was estimated at 6% annually. 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 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 $27,446 and positive accumulated cash flow (PAC) of $633,898 in year 10, $3,028,379 in year 20; and $11,180,256 in year 30. This indicates a strong project. The simple payback is 44 years. The B/C ratios are 0.53 at year 10; 1.22 at year 15; and 2.52 at year 20 and 9.32 in year 30. Since the project is expected to have a 30 year life, a B/C ratio greater than 1.0 in year 14 indicates a strong project. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 11 of 12 9/3/2008 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 There are a number of economic benefits by utilizing a bulk fuel wood fired boiler. $60,598 worth of fuel oil, 18,035gallons, will be replaced with $19,908 worth of wood chips, 284.tons, for a savings of $40,690. This project will not only save money but it will get money to local businesses and area landowners. This project will open up a market for the valleys thousands of acres of small diameter trees. The harvesting of these small diameter trees has the potential to open up currently hard to access merchantable timber stands. This wood is a potential hazard fuel and its harvest will reduce the hazard and save thousands of dollars fighting wild land fires. Burning wood chips is a carbon neutral approach. The Copper River Valley will see cooperation between the School District, State, Federal, Native Corporations and community members. It will be used a state tour site for others to see. SECTION 6 – GRANT BUDGET Tell us how much your total project costs. Include any investments to date and funding sources, how much is requested in grant funds, and additional investments you will make as an applicant. Include an estimate of budget costs by tasks using the form - GrantBudget.xls The Copper River School District has obtained a feasibility study for the Copper Center and Kenny Lake School through the Alaska Wood Energy Task Force in 2006. A report was completed by Dan Parrent of the Juneau Economic Development Council in Jan. of 2008. The Copper River School District received a $40,000 grant from the Alaska Energy Authority to proceed with a preliminary design and cost estimates which was awarded in June, 2008. CTA Engineers were contracted to perform a preliminary design and cost estimate completed October, 2008. $1,200,000 is being requested to fund Resource Assessment/ Feasibility Analysis/ Conceptual Design, Phase II, final project design and permitting, Phase III, and construction, Phase IV. The Copper River School District will use School District land to construct the wood fired boiler. See attached KL GrantBudget.xls Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 12 of 12 9/3/2008 SECTION 7 – ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. Resumes of Applicant’s Project Manager, key staff, partners, consultants, and suppliers per application form Section 3.1 and 3.4 B. Cost Worksheet per application form Section 4.4.4 C. Grant Budget Form per application form Section 6. D. An electronic version of the entire application per RFA Section 1.6 E. Governing Body Resolution per RFA Section 1.4 Enclose a copy of the resolution or other formal action taken by the applicant’s governing body or management that: - authorizes this application for project funding at the match amounts indicated in the application - authorizes the individual named as point of contact to represent the applicant for purposes of this application - states the applicant is in compliance with all federal state, and local, laws including existing credit and federal tax obligations. F. CERTIFICATION The undersigned certifies that this application for a renewable energy grant is truthful and correct, and that the applicant is in compliance with, and will continue to comply with, all federal and state laws including existing credit and federal tax obligations. Print Name Signature Title Date