HomeMy WebLinkAboutHaines Wood-fired Hydronic Heating System App
Haines Borough | Box 1209 | Haines, AK 99827
Renewable Energy Fund
October 08
Grant Application
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 1 of 11 9/3/2008
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 11 9/3/2008
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Haines Borough
Type of Entity:
Municipal Corporation
Mailing Address
PO Box 1209, Haines, AK 99827
Physical Address
103 Third Avenue S., Haines, AK 99827
Telephone
907-766-2231
Fax
907-766-2716
Email
tbolen@haines.ak.us
1.1 APPLICANT POINT OF CONTACT
Name
Tom Bolen
Title
Haines Borough Manager
Mailing Address
PO Box 1209, Haines, AK 99827
Telephone
907-766-2231
Fax
907-766-2716
Email
tbolen@haines.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
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
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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 Haines Borough proposes a reconnaissance phase followed by a resource assessment / feasibility
analysis / conceptual design phase for a renewable energy project. The energy project employs a wood-
fired hydronic heating system that uses locally available wood biomass fuel.
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 Haines Borough proposes to explore the potential for use of low-emission nontoxic wood biomass as
the source for wood-fired boilers to provide heat (through an insulated pipe distribution system) initially
to four buildings located within the Borough: the K-12 School, the Voc-Ed Building, the Municipal
Administration Building, and the Public Library. The Borough would begin to reduce our dependence on
costly fossil fuels, while employing cleaner, renewable, and locally available resources, through the use of
locally available wood biomass. The Haines Borough will contract qualified consultants to perform
reconnaissance and feasibility studies, and guide us through the 35% concept design. Contracting will be
in accordance with the Borough’s standard procurement policies.
2.3 PROJECT BUDGET OVERVIEW
Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source
of other contributions to the project. Include a project cost summary that includes an estimated total cost
through construction.
The preliminary estimate of project cost is provided in Attachment C. The Haines Borough anticipates
receiving $120,500 for Development Services from this grant. The Haines Borough received a grant of
$10,000 from the Jump-Start Wood-to- Energy Program, which will be used for this project, and the
Haines Borough will match that $10,000, for a total initial development budget of $140,500.
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.
These are the first two phases of a four-phase project to use wood biomass to replace oil as the primary
heating fuel for selected Haines Borough buildings. The goal is to displace 85-90% of the oil used for
heating in the Haines K-12 school, Voc-Ed Building, Administration Building, and Public Library with
local wood biomass heat. Depending on findings from Phases 1 and 2, operational cost savings are
estimated to range from 25 to 50% of present oil costs. While the capital cost of a high-efficiency, low-
emission wood-fired hydronic heating system is higher than an oil-fired system, with the cost of oil far
outstripping the cost of wood fuel, the system will pay for itself in as little as 12 years.
Wood is a renewable resource, in plentiful supply in the Haines area. The US Forest Service has
determined that the carbon dioxide (CO2) emitted during the burn process is typically 90% less than
burning fossil fuel if the wood is harvested on a sustainable basis. Use of clean fuel is important to our
community. Replacing most oil consumption with wood biomass will create additional positive economic
benefits to the citizens of Haines Borough through stimulation of the local economy and employment by
buying wood biomass locally. In short, money would circulate within the community rather than going
out to external fuel oil suppliers.
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.) $ 2,090,500
2.5.2 Grant Funds Requested in this application. $ 120,500
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 4 of 11 9/3/2008
2.5.3 Other Funds to be provided (Project match) $ 20,000
2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $ 140,500
2.5.5 Estimated Benefit (Savings) $ 108,717 (annual)
2.5.6 Public Benefit (If you can calculate the benefit in terms of
dollars please provide that number here and explain how you
calculated that number in your application.)
$ 4,049,524. in savings over a
20-year period, using a
conservative 5% annual fuel
oil cost increase. This is shown
in the Simple Cost Worksheets
in Attachment F.
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.
Haines Borough is currently soliciting for a Director of Public Facilities. We provided a copy of the
position description in Attachment A. The director will function as the project manager and will be the
primary coordinator with AEA, who will provide project management support, and the engineering
design consultants, and construction managers throughout the course of the project.
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.)
A preliminary Project Schedule outlining tasks in Phase I and Phase II is provided in Attachment G.
3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them.
Project milestones begin with Notice to Proceed from AEA on December 19, 2008. Other key milestones
include:
Phase I - Wood Heat Report: February 18, 2009
o Define the wood source, and determine if we continue on to Phase II.
Phase II - Feasibility Study: May 5, 2009
o Evaluate project viability; favorable results will take us to the next task
Phase II - Conceptual Design: June 17, 2009
o Move to a design that fits our needs using our locally available wood source.
Phase II – Concept Design Approval: July 8, 2009
o Community and Agency approval of conceptual design will take us to the next phase of
funding for Phase III – Final Design, and Phase IV - Construction.
Key milestones are noted on the Schedule provided in Attachment G.
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.
Haines Borough Key Personnel initially includes: the Haines Borough Director of Public Facilities (to be
identified) and Tom Bolen, Haines Borough Manager. The Haines School District has a three person and
plans to hire one more person. We will need, at a minimum, a design engineer and bulk wood heating
specialist, and possibly a forestry consultant. We have consulted with the State’s Wood Energy Task
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Force in Juneau, and will continue to seek their expertise. We have also consulted with CE2 Engineers,
Inc. for preliminary feasibility data as required for this application. CE2’s Statement of Qualifications is
provided in Attachment A, along with the Position Description for the Director of Public Facilities and
Mr. Bolen’s résumé.
Financial accountability will be performed by the Borough Finance Department. The selection process for
major equipment purchases or contractual agreements is stipulated by Haines Borough Code (HBC)
Chapter 3.60, Purchasing. The Assembly may authorize single-item purchases or contracts between ten
and twenty-thousand dollars provided whenever possible, be based on no fewer than three written bids,
quotations, or statements of interest from potential suppliers. Except as set out in HBC 3.60.170, the bid
is awarded to the lowest responsible bidder in accordance with the standards set in HBC 3.60.160. If a
contract or purchase is estimated to exceed $20,000 and not exempt from competitive sealed bid as
provided in 3.60.170, purchase shall be through competitive sealed bid. See HBC 3.60.090 through
3.60.170 for sealed bid process.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
The project will be monitored through formal weekly written communication between the Project
Manager and the Borough Manager. The Project Manager will provide status reports to the Alaska Energy
Authority through the Borough Manager and Clerk's office. Monthly written reports will be provided to
document project progress, even in the planning stages, at minimum. Written reports will include photo-
documentation of construction progress, during the construction phase.
3.6 Project Risk
Discuss potential problems and how you would address them.
Risk 1: We have to find a sustainable source of suitable fuel in the local area. To mitigate the risk:
there are 700 MBF being used annually, and a sizeable amount of that material would be scrap, which
may be suitable for use as fuel. This will be investigated.
Risk 2: Is there a decent pool of suitable contractors that can supply the necessary fuel within the
specifications required for compatibility with the heating units? Risks can be minimized by
developing designs that are flexible enough to accept fuels with differing moisture contents.
Risk 3: Availability of local talent to properly operate the systems. This can be mitigated by
identifying suitable local talent during Phase 2 of the study. We can provide O&M training for promising
candidates.
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.
Local wood biomass resources include the Haines State Forest, which has an allowable harvest of 5.88
million board feet annually. Currently, this resource is under-used. There are a minimum of eight local
wood suppliers that may be able to supply wood biomass material for the system. Other suppliers in
southeast Alaska and nearby Canada may be available as alternative suppliers. The vast amount of
potentially usable biomass in the Haines State Forest must be evaluated as to suitability and accessibility.
This is one of the purposes of Phases I and II of this project. The pros include use of a renewable resource
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Grant Application
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with a nearly neutral carbon footprint, lower operational costs, and economic stimulation through business
opportunities. The cons include a more complicated heating system than existing oil-fired system alone,
possible resistance by local environmental groups, and a significant impact on the local fuel oil supplier.
The Feasibility Study will address the pros and cons. Haines Borough could continue to use diesel fuel,
which is reliable technology, but a non-renewable resource with a high cost and heavy carbon footprint.
We believe that our community would be better served by using locally available wood biomass fuel from
our own forest.
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.
All four of these buildings are presently heated by oil-fired boilers, as detailed below.
Location K-12 School Voc-Ed Bldg Public Library Admin Bldg
Number of boilers 3 1 1 1
Rated boiler capacity 4.2mm btu/hr
combined 219,000 btu/hr 397,000 btu/hr 500,000 btu/hr
Boiler Type Weil-
McClain 80
Hydro
Therm 580
Weil-
McClain 80 Ultimate PFO-5T
Boiler Age 2 yrs 27 yrs 5 yrs 12-15 yrs
Boiler Efficiency 78% 70% 78% 74%
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.
Currently the Haines Borough pays a local vendor for delivery of outside fuel oil to fire the boilers used to
heat the buildings. While the price of oil has increased steadily over the last decade or two, oil prices rose
drastically in the last 12 months. Our project calls for displacement of up to 90% of the fuel oil currently
consumed for heating by the four buildings, and replaces the costly foreign fuel with locally available
wood biomass. There are currently a minimum of 8 local suppliers in the wood industry that can
immediately begin to provide local material to meet 90% of our fuel energy needs for heating, using the
existing infrastructure in the state forest.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy customers.
The existing energy market in our community relies heavily on expensive, non-local (outside) fuel oil
deliveries. The proposed wood biomass project will significantly reduce heating costs for the School
District and Borough buildings, while increasing employment and stimulating the local economy through
use of locally available wood provided by local vendors. The cost savings and environmental benefits of
using our own resources are most attractive to our community and will be steps in our goal toward
achieving energy independence in the Haines Borough. The significant drop in fuel oil consumption as a
result of moving to wood biomass fuel could have an impact on other customers, should the local fuel oil
supplier increase or reduce prices as a result of the lower demand. This will be addressed in the Feasibility
Study.
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
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Optimum installed capacity
Anticipated capacity factor
Anticipated annual generation
Anticipated barriers
Basic integration concept
Delivery methods
The proposed system will be a central wood chip-fired boiler system and chip storage building that will
provide heat to four Borough buildings. The buildings will be connected with underground, insulated
piping from the central boiler building and will be separated from the central heat system and each other
by heat exchangers. A proposed Site Plan is provided in Attachment H. A conceptual plan of the boiler
building also provided in Attachment H.
The optimum boiler size is approximately 60% of the connected load of the building. Typical load
profiles 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 at the medium- and high-fire range more often,
which optimizes efficiency and reduces emissions. An energy model of the facility will be developed to
determine the final optimum boiler size, during the design process. The optimum installed size for the
biomass boiler is estimated to be approximately 2.2 MM btu/hr. The Preliminary Boiler Sizing Data
(provided in Attachment H) shows the connected boiler load summary, biomass boiler Size, and School
Heating System capacity factors.
Anticipated capacity factor for the wood boiler is 0.35, compared to the overall capacity factor of 0.14 for
the existing boiler systems. The wood boiler capacity factor is over twice that of the oil heat, so the wood
boiler should run in a more efficient operational range than the existing oil-fired boilers.
Anticipated annual generation of heat is 4.00 billion btu, of which 90% is wood biomass, and 10% is fuel
oil. The biomass boiler is anticipated to use 512 green tons of wood annually.
Anticipated barriers include obtaining sustainable quantities of compatible biomass fuel (to be determined
in the Feasibility Study), and the possibility of environmentalist objections to using wood biomass (which
will require Haines Borough to provide public education on the current technology). Access to the wood
during the winter is a potential barrier that needs to be addressed.
Basic integration concept: heat will be transferred from the central boiler system using a primary
circulating loop to the buildings. Heat will be transferred through heat exchangers into the return side of
each building’s hydronic system. This provides reliability and isolation of each building heating system,
so the failure of one hydronic system (such as a piping break) will not take the whole system down. Heat
will be delivered using propylene glycol hydronic systems (two pipe) with circulating pumps. The system
will be designed for low head operation to keep pumping cost as low as possible.
Delivery method: The biomass boiler building would be constructed similar to any other Haines Borough
capital project. The building and systems would be designed by licensed professionals who generate
construction documents to be bid out to contractors. The successful bidder would mobilize to 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 Haines Borough owns the land where we plan to install the wood-fired heat system.
4.3.3 Permits
Provide the following information as it may relate to permitting and how you intend to address outstanding
permit issues.
List of applicable permits
Anticipated permitting timeline
Identify and discussion of potential barriers
The Haines Borough will obtain all necessary permits, which may include: a Coastal Management Plan
review, and a State Fire Marshall review and permit. There are currently no applicable ADEC regulations
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for a system of the size that we propose to install. Permitting will occur in future phases. We do not
anticipate any barriers as the project location is on existing developed land owned the Haines Borough.
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
The following potential environmental issues have been reviewed and determined to have no impact:
Threatened or Endangered species: none in the area where the boilers will be installed.
Habitat issues: not applicable to the area where the boilers will be installed.
Wetlands and other protected areas: not applicable to the area where the boilers will be installed.
Archaeological and historical resources: not applicable, but will be monitored as needed.
Land development constraints; not applicable, but will be monitored as needed.
Telecommunications interference: not applicable.
Aviation considerations: not applicable.
Visual, aesthetics impacts: these will be considered during system design.
While Haines is home to the Chilkat Bald Eagle Preserve, this protected area is not open for timber sales,
so it will have no impact on the acquisition of wood biomass fuel. There is the potential barrier of local
environmental group(s) to resist the project based on lack of familiarity with cleaner technology that was
developed in the latest generation wood heating systems. We will need to educate the community about
the merits of the low-emission, high efficiency systems and their cleaner burning characteristics.
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
Total anticipated project cost, through construction, is $2,090,500 which is further broken down below:
Cost for Phase I – Reconnaissance estimated at $39,000.
Cost for Phase II – Feasibility Study and Concept Design (35%) estimated at $101,500.
Initial project development cost for Phases I and II total $140,500.
Haines Borough is requesting $120,500 from AEA for this Renewable Energy Fund Grant. We have
received a $10,000 grant from the State’s JumpStart Wood-to-Energy program that we will apply to this
project, and Haines Borough will provide matching funds of $10,000. The projected capital cost of the
proposed renewable energy system is $1,850,000, with another $100,000 estimated in additional project
development costs to take the concept design to 100%. The total projected development cost is $240,500.
At this time, the Haines Borough requests $120,500 in funding under AEA’s Renewable Energy Fund
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grant. Additional development funds will be requested once we have demonstrated that the project is an
economically feasible and sustainable project.
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
Estimated O&M funding costs are approximately $3,000 per year, which will be funded by the Haines
Borough. The O&M costs are shown in the Simple Cost Worksheets in Attachment F. Costs in this
worksheet were derived from consumption data derived from the Haines Borough’s vendor invoice
records for each building for the 12-month period from September 2007 through August 2008.
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 to the proposed wood-fired heat project.
4.4.4 Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered in
evaluating the project.
Download the form, complete it, and submit it as an attachment. Document any conditions or sources your numbers are based on
here.
The completed Cost Worksheet is provided in Attachment B. We have also provided three versions of a
simple cost worksheet in Attachment F. These estimates use a modest 5%, realistic 8%, and high-end 10%
cost escalation to estimate the cost savings for the proposed Haines Borough Biomass District Heat
System. Each of these worksheets contains preliminary cost estimates based on projects in other similar
locations in Alaska, and uses data generated from the Haines Borough fuel vendor records. The
preliminary estimates only to give an idea of the scope of this proposed project.
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 capital costs for the system will be covered through this AEA grant, our State of Alaska JumpStart
Wood-to-Energy Grant, and the Haines Borough’s matching funds. The operating costs for this facility
will be 100% offset by the savings generated as a result of reducing our consumption of costly diesel fuel.
The renewable wood fuel will be significantly less expensive than fuel oil. Sustainability of this project is
demonstrated in the Simple Cost worksheets provided in Attachment F. The surrounding Haines State
Forest contains a plentiful supply of wood biomass fuel. State forester Roy Josephson has stated that there
is plenty of timber available for a wood-heat program. “There’s a surplus of wood on the Haines State
Forest that could easily provide the volume of wood that would be necessary to heat a building the size of
a new school," he said, noting that 74 percent of the forest’s annual allowable harvest of 5.88 million
board feet, on average, has been uncut during the past 10 years.
A high defect rate makes much of the local timber unusable as saw logs, but utility logs would work in a
wood heat project, Josephson said. "A local demand for this type of low-grade wood would provide an
avenue for the purchasers of these sales to sell some of their low value logs locally without that added
barging costs that adds to their deficit value." There are currently eight businesses providing wood locally
in Haines. We are considering our supply options, which may include the use of a contract price
adjustment clause to lock in the starting price with a yearly escalation factor linked to the Consumer Price
Index.
The Haines Borough Department of Public Works oversees operation of the wood-fired hydronic system.
The Haines School District maintenance staff will perform daily stoking and routine maintenance of the
system.
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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 economic analysis is shown in the Simple Cost Worksheets provided in Attachment F, using inflation
factors ranging from very conservative values of fuel oil inflation at 5% to a realistic expectation of 8%
and a high inflation rate of 10%. Payback time, taking inflation into account, varies from 10 – 12 years.
Wood fuel cost was figured at $100/green ton, which should be a high value. This appears to be a very
viable project, but will be properly evaluated in Phase II, prior to final design.
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
Project benefits are expected to include:
Estimated annual fuel displacement of 38,340 gallons of fuel oil and savings of up to $8.5 million
over the 30-year project service life of the wood-fired boilers.
Anticipated annual revenue - Not applicable for this wood heat project.
Potential additional annual incentives (i.e. tax credits) – Not applicable to this wood heat project.
Potential additional annual revenue streams (i.e. green tag sales or other renewable energy.
subsidies or programs that might be available) – Not applicable to this wood heat project.
The non-economic public benefits to Alaskans over the lifetime of the project: This wood biomass project
will help Haines Borough achieve greater energy independence from fossil fuels, while stimulating our
local economy with jobs and increased business opportunities. This project will be mainly carbon-neutral
and will produce heat energy from a local sustained natural resource. Letters of support for this project
have been written by the Chilkoot Indian Association and the State of Alaska Division of Forestry. Copies
are provided in Attachment I.
SECTION 6 – GRANT BUDGET
Tell us how much your total project costs. Include any investments to date and funding sources, how
much is requested in grant funds, and additional investments you will make as an applicant.
Include an estimate of budget costs by tasks using the form - GrantBudget.xls
Provide a narrative summary regarding funding sources and your financial commitment to the project.
The total project costs for Phase I and Phase II is $140,500. This will define the wood source and
estimate costs, and take the system design to a 35% complete plan set. Haines Borough has committed
$7,000 of Borough funds for preparation of this application, which will not come out of grant funds. In
addition, we have received a State grant of $10,000 which will be applied to Phase I and Phase II, along
with a match of $10,000 from Borough funds should this grant be awarded. Our proposed grant budget is
provided in the required format in Attachment C.
The Haines Borough is committed to this important project and will provide necessary support and
resources to ensure the project succeeds.
I Renewable Energy Fund ALASKA ENERGY AUTHORITY 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 ofthe 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'I,
Thomas K. Bolen
-~
Borough Manager
October 7, 2008
AEA 09-004 Grant Application Page 11 of 11 9/3/2008
Haines Borough Renewable Energy Fund Grant Application
Attachment A:
Resumes
Thomas K. Bolen
Box 1209 – Haines, AK 99827
907-766-2231
907-766-2716
www.hainesborough.us
Skills 30 years experience in Business Management
Well-versed in Project Management, Safety, Hazardous Materials
Preparedness and Emergency Response
Certified Basic Public Information Officer
Trained in Public Law Contracting and Employment Law
Education Towson State College
BS English, minor in Sociology
Experience
Otter Enterprises and Arctic Consulting Services: Sole Proprietor
October 2006– August 2008
Real estate management and consulting, freelance writing, and logistical support
services.
Kikiktagruk Inupiat Corporation: Interim President of KIC Construction LLC
April – July 2007
Responsible for all aspects of running this native-owned construction business in
Kotzebue, Alaska.
Northwest Arctic Borough: Director of Public Services
July 1998 – October 2006
Served as Village Projects Coordinator, Borough Procurement Officer, Borough
Contracting Officer, prior to taking over as Director of Public Services. Responsibilities
included supervision of up to five full-time, 10 part-time, and eight temporary
employees. Also served as Borough Emergency Manager and Borough Fire
Administrator, and on numerous occasions, as Acting Mayor. Negotiated the purchase
of current Borough office building, and oversaw the design and construction of
renovations. Position required a high degree of multi-tasking and organization skill to
manage tasks including the direct oversight of the Borough Fire Department, Search &
Rescue coordination, Winter Trails Program, Public Safety Commission activities, local
Emergency Planning Committee activities, Emergency Management Performance Grant
Program, major village capital projects, grant writing efforts, and contract DMV
operations.
Tom started with the Haines Borough in September 2008. A strong background in business
management and city administration in rural Alaska serves him well in his duties as Haines
Borough Manager.
State
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CE2 ENGINEERS, INC. STATEMENT OF QUALIFICATIONS
PREPARED FOR: HAINES BOROUGH PAGE 1
INTRODUCTION
G ENERAL E XPERIENCE, Q UALIFICATIONS AND B USINESS H ISTORY
CE2 Engineers (CE2) was founded in 1985 by bush sanitary design engineer Chuck
Eggener, P.E. and bush construction superintendent Brian Aklin to provide rural Alaska
communities with planning, design engineering, and force account construction
management services. In 2003, with the retirement of Chuck Eggener, Brian Aklin
assumed the leadership role as president of CE2. To date, we have successfully
planned, designed, and managed force account construction for over $350 million in
bulk fuel improvements, power plant construction, and rural sanitation to over 50
Alaskan communities, statewide. CE2 has managed force account construction for over
$300 million in energy (bulk fuel and rural power system upgrades) and infrastructure
projects for the Alaska Energy Authority (AEA), Alaska Village Electric Cooperative
(AVEC), and State of Alaska, Village Safe Water Program. Our success stems from our
commitment to putting the local community to work, and our philosophy that public
works projects are best constructed by the ultimate end users.
CE2’s headquarters is a two-story 7,500 square foot secure heated combined office,
shop, and warehouse building with a fenced laydown yard, located just off Dimond
Boulevard in South Anchorage. From our central location CE2 is able to provide a full
range of construction management services including material procurement and freight
consolidation, warehouse and expediting services, and project management and
administrative support.
We are equipped with the latest electronic technology at 23 desktop computer
workstations currently, with laptops as well as digital cameras for our traveling staff.
Our project management team uses Microsoft Project scheduling software. Project
support personnel utilize the latest version of the Microsoft Office Suite, and our site
superintendents are provided with electronic copies of CE2’s standard forms and
reporting documents. Whenever possible and economically feasible, CE2’s site
superintendents are able to communicate quickly not only via phone but via the Internet
to email reports, digital photos, or other electronic files. This ensures that the home
team can keep abreast of progress as well as any issues at the project sites.
CE2 is a stable and mature business with a highly experienced staff; therefore we can
readily commit the resources needed to ensure the success of all the projects we are
involved with.
Over the last ten years CE2 Procurement and Logistics Officer Mike Tate has honed our
procurement and material tracking procedures to meet our Client’s procurement
requirements. He leads the procurement team, issuing and guiding project managers
on bid solicitations (including large sealed bid procurements), preparing purchase
CE2 ENGINEERS, INC. STATEMENT OF QUALIFICATIONS
PREPARED FOR: HAINES BOROUGH PAGE 2
orders, and managing the expediting and warehouse functions, including freight
consolidation and tracking. The project administration group processes invoices for
project management approval and Client submission and maintains project purchase
order tracking logs.
At the field level, the site superintendent prepares and submits daily project reports,
performs quality assurance/quality control inspections and provides all required testing
documentation, maintains red lines, and works with contractors to ensure contract
compliance. The site superintendent also submits all field-generated invoice and
receipt documentation for small procurements to the project administration group for
reconciliation with vendor statements and/or invoices. All field-incurred charges are
verified prior to payment approval.
Safety is a key factor in CE2’s construction projects. CE2’s site superintendents receive
Red Cross CPR/First Aid training with required updates. They conduct weekly safety
meetings with the force account crews to ensure that all participants are aware of how
to perform their work in a safe manner. CE2 prepares and provides required site-
specific safety plans, and the site superintendents are responsible for review with the
crew and compliance.
Our highly experienced staff includes project managers, field superintendents, and a
top-caliber team of office-based project support personnel: an office manager,
procurement officer, warehouseman/expediter, and construction and project
administrators. As a seasonal employer, we also have qualified maintenance
mechanics, welders, journeyman plumbers, and a journeyman carpenter available, if
required to supplement the local workforce.
In addition to our full range of in-house resources, CE2 has developed long-term
working relationships with Alaskan subconsultants who are experts in their respective
fields, and would be available to work with us on projects, including (but not limited to):
electrical and mechanical engineers, qualified journeyman field electricians, and
structural engineers.
CE2 is a licensed Alaskan business, as is each of our project team subconsultants. CE2
can and will furnish evidence of satisfactory Workmen’s Compensation, Public Liability
and Property Damage, and Automobile Liability insurance on request.
CE2 ENGINEERS, INC. STATEMENT OF QUALIFICATIONS
PREPARED FOR: HAINES BOROUGH PAGE 3
I NTRODUCTION OF CE2’S P ROJECT T EAM
CE2’s project team is composed of qualified individuals with a broad range of
experience in management of rural Alaska force account construction projects.
Brian Aklin is the Program Manager for key clients, and oversees a handful of our
larger energy projects. With over 30 years of construction experience, Brian has been a
field hand, equipment operator, foreman, and field superintendent. He has provided
both on- and off-site management of force account construction for bulk fuel and
sanitation projects throughout rural Alaska. Brian performs all aspects of construction
management: constructability reviews, cost estimating, procurement, scheduling, and
site supervision. He has gained a keen understanding of the unique challenges of rural
construction including environmental, procurement and logistics, and personnel issues.
Brian is the program manager for CE2’s contract with the AEA’s Rural Energy Group
(AEA/REG) for bulk fuel and rural power system upgrade projects in rural Alaska, and
for a similar bulk fuel contract with AVEC.
Brian’s leadership and thorough knowledge of construction techniques, personnel
supervision, and cost analysis enables CE2 to achieve timely results and cooperation
within rural communities. He has managed force account construction for nearly $55
million dollars of bulk fuel, power plant and power upgrade, sanitation, and road,
projects in Akiachak, Brevig Mission, Chefornak, Chignik Bay, Chignik Lagoon, Cold
Bay, Gambell, Hooper Bay, Hughes, Huslia, Kokhanok, Mountain Village, Nelson
Lagoon, Nikolski, Noatak, Nome, Pelican, Seldovia, Sleetmute, St. Mary’s, Tenakee
Springs, and Tuluksak.
CE2’s other in-house team members include:
Senior Design Engineer: Paul Weisner, PE. Paul brings a wealth of knowledge and
experience to the project. Paul has 28 years of arctic facilities management, planning,
and design experience in rural Alaska. Paul combines a solid engineering education:
Bachelor of Science, Civil Engineering from the University of California, at Berkeley,
with hands-on field experience in the design and operation of renewable energy
systems. Paul also has extensive experience using waste heat from power generation
and wood heat as an alternate energy source.
Project Manager: David Harvey. David brings over 23 years of construction
experience to the CE2 team. He has been on site superintendent or project manager
for over 11 years, and has five years of Bush Alaska experience in project planning,
logistics, and construction. David is experienced in all aspects of construction and force
account management, and is able to effectively and efficiently manage simultaneous
projects. He combines his field and technical experience with proficiency in material
take-offs and project controls, including cost estimating using Microsoft Excel, and
CE2 ENGINEERS, INC. STATEMENT OF QUALIFICATIONS
PREPARED FOR: HAINES BOROUGH PAGE 4
scheduling in Microsoft Project. David was project manager for both the Brevig Mission
Bulk Fuel Upgrade and the Kalskag Bulk Fuel Upgrade, the Savoonga Bering Straits
School District fuel facility containment cell at Savoonga, projects. Both were multi-year
force account construction projects that included bulk fuel storage and dispensing
facilities.
Project Manager: Walton Smith. Walton has over 20 years of rural Alaska planning
and on- and off-site force account construction management experience. Walton’s
background in management of utility services is a valuable resource for his project
management activities. Walton is responsible for preparation of Site Specific Safety
Plans for all CE2 projects. Walton currently is leading the Akiachak Water and Sewer
project, which includes overseeing up to three site superintendents on the force account
construction of water and sewer main lines, services, and in-house plumbing upgrades.
He also coordinated the effort to bring the Akiachak water treatment plant, which CE2
constructed in 1999, back on line. Walton was successful in getting the project started
again by assisting the community with Rural Utility Business Advisor (RUBA)
compliance. His strength is in achieving results in rural communities.
Site Superintendent: Mike West. Mike has 27 years of experience in the construction
field and has managed field crews on rural sanitation projects for CE2 for the last eight
years. His broad knowledge of all aspects of rural construction projects (logistics,
materials, construction methods, and supply management) has been applied to bulk
fuel, power upgrades, and water and sewer system construction. Mike has provided his
top level of site supervision on bulk fuel force account construction projects in
Unalakleet and Pelican; and water and sewer system construction in Akiachak, Brevig
Mission, Hooper Bay, Mountain Village, and, Sleetmute.
Site Superintendent: Jonnie Ross. Jon Ross has been with CE2 for 8 years, first as
a certified welder and then as a Site Superintendent. Jon has experience as a pipe
fitter, mechanic, and heavy equipment operator. Jon is thoroughly versed in CE2’s
force account construction management system and has provided exemplary site
supervision on bulk fuel force account projects in Atka, Igiugig, Kakhonak, Nikolski,
Pedro Bay, and Port Heiden. Additionally, he has supervised power plant projects in
Chefornak, Kakhonak, and Pedro Bay.
Site Superintendent: Daryl Ramstad. Daryl’s welding experience spans 31 years,
13 of those in rural communities and remote jobsites. His work experience includes
generator installation, tank farm installation, tank decommissioning, pipe welding, and
quality control inspection. Daryl has been a Site Superintendent with CE2 since 2007,
and has worked in Seldovia, Gambell, Savoonga, and King Cove in bulk fuel and rural
power plant installations.
Haines Borough Renewable Energy Fund Grant Application
Attachment B:
Application Cost Worksheet
Renewable Energy Fund
RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 1
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. 5,880 Million board feet* wood biomass fuel available annually
(*existing industry is currently only using 26% of this resource)
Unit depends on project type (e.g. windspeed, hydropower output, biomass fuel)
*Note: Figure provided by the State of Alaska Department of Natural Resources Division of Forestry for
the Haines State Forest.
2. Existing Energy Generation
a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank)
K-12
School
Voc-Ed
Bldg
Public
Library
Admin
Bldg
i. Number of generators/boilers/other 3 1 1 1
ii. Rated capacity of generators/boilers/other 4.2mm btu/hr
combined
219,000
btu/hr 397,000
btu/hr
500,000
btu/hr
iii. Generator/boilers/other type Weil-McClain
80
HydroTherm
580
Weil-
McClain 80
Ultimate
PFO-5T
iv. Age of generators/boilers/other 2 yrs 27 yrs 5 yrs 12-15 yrs
v. Efficiency of generators/boilers/other 78% 70% 78% 74%
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor Sunk cost – part of school maintenance duties using existing staff
ii. Annual O&M cost for non-labor $3000.
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]
ii. Fuel usage
Diesel [gal]
Other
iii. Peak Load
iv. Average Load
v. Minimum Load
vi. Efficiency
vii. Future trends
1 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.
Renewable Energy Fund
RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 2
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] K-12 School
36,417 gals
Voc-Ed Bldg
1,687 gals
Pub Library
3,244 gals
Admin Bldg
1220 gals
(Total annual diesel fuel usage: 42,600 gallons)
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
3. Proposed System Design
a) Installed capacity 2.2 MM btu/hr
b) Annual renewable electricity generation
i. Diesel [gal or MMBtu] 4,260 (heating only)
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons] 569 green tons (heating only)
vi. Other
4. Project Cost
a) Total capital cost of new system $1,850,000.
b) Development cost $ 140,500. (this does not include an estimated
$100,000. needed to take design to 100%)
c) Annual O&M cost of new system $ 3,000.
d) Annual fuel cost $ 70,356. (90% wood heat, 10% oil heat)
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity N/A
ii. Heat 38,340 gallons fuel oil
iii. Transportation N/A
b) Price of displaced fuel $4.49 per gallon (as of August 2008)
c) Other economic benefits $108,717. annual savings using wood instead of oil
d) Amount of Alaska public benefits $4.05 million in savings over 20 years, based on a
conservative 5% annual escalation of fuel oil price.
Renewable Energy Fund
RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 3
6. Power Purchase/Sales Price
a) Price for power purchase/sale N/A
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 5% fuel inflation: 0.34 in 5 yrs; 1.02 in 12 yrs; 2.19 in 20 yrs (very
conservative)
8% fuel inflation: 0.37 in 5 yrs; 1.13 in 11 yrs; 3.37 in 20 yrs (realistic)
10% fuel inflation: 0.39 in 5 yrs; 1.11 in 10 yrs; 4.44 in 20 yrs (high-end)
Payback Simple payback = $1.85 million / $108,717 annual savings =
17 years. Note that this does not allow for inflation.
For reference see the Simple Cost Spreadsheets in Attachment F.
Haines Borough Renewable Energy Fund Grant Application
Attachment C:
Grant Budget Form
Haines Borough Application Alaska Energy Authority ‐ Renewable Energy Fund Attachment CHAINES BOROUGH PROPOSED WOOD‐FIRED HYDRONIC DISTRICT HEAT SYSTEMBUDGET INFORMATIONBUDGET SUMMARY:Task Federal Funds State FundsLocal Match Funds (Cash)Local Match Funds (In‐Kind)Other FundsTOTALS1: Phase I ‐ Reconnaissance $33,000.00 $3,000.00 $3,000.00 $39,000.002: Phase II ‐ Feasibility Study $20,500.00 $3,000.00 $3,000.00 $26,500.003: Phase II ‐ Concept Design $67,000.00 $4,000.00 $4,000.00 $75,000.00456120,500.00$ 10,000.00$ 10,000.00$ 140,500.00$ Milestone # or Task #BUDGET CATEGORIES:1Phase IRecon2Feasibility Study3Concept Design 4 5 6 TOTALSDirect Labor and Benefits $5,000.00 $2,000.00 $3,000.00 $10,000.00Travel, Meals, or Per DiemEquipmentSupplies $500.00 $500.00 $1,000.00 $2,000.00Contractual Services $32,500.00 $23,000.00 $69,000.00 $124,500.00Construction ServicesOther Direct Costs $1,000.00$1,000.00$2,000.00$4,000.00TOTAL DIRECT CHARGES $39,000.00 $26,500.00 $75,000.00 $140,500.00RFA AEA09‐004 Budget Form
Haines Borough Renewable Energy Fund Grant Application
Attachment D:
Electronic Copy of Application
Haines Borough, Alaska
In Adobe Acrobat .pdf format
Attachment D
Renewable Energy Fund Grant Application CD
Haines Borough Renewable Energy Fund Grant Application
Attachment E:
Governing Body Resolution
Haines Borough Renewable Energy Fund Grant Application
Attachment F:
Simple Cost Worksheets
PRELIMINARY VALUE ANALYSIS WORKSHEETEXISTING CONDITIONSFuel Type Fuel OilCurrent Annual Fuel Cost (August 2008) 4.49 per galAnnual Average Fuel Usage 42,600 galsAnnual Heating Costs $191,274ENERGY CONVERSIONGIVEN PARAMETERSHeat value of fuel oil 134,000 btu/gal Inflation rates:Current Annual Fuel Volume (btu) 5,708,400,000 btu Cost of living 2.5%Assumed efficiency of existing heating system (%) 70% Wood Fuel 3.5%Net Annual Fuel Usage (btu) 3,995,880,000 Fuel Oil 5.0%WOOD CHIP FUELAssumed btu content of wood fuel 5400 btu/lb Wet BasisAssumed efficiency of wood heating system 65%Tons of wood fuel to meet 100% annual heat load 569 tons Wet BasisWood fuel cost $100 per tonPROJECT CAPITAL COST$1,850,000Notes:1. The cost of the wood boiler system is estimated from similar systems envisioned for interior Alaska.Project Financing Information - based on 2008$2. The wood chip fuel cost is a rough estimate based on current chip fuel costs in the Copper River Basin, and Upper Tanana Valley.Percent financed 0% 3. This preliminary spreadsheet provides for a starting point to examine the feasibility of replacing oil heat with wood biomass heat.Amount financed 0% 4. The actual fuel cost and availability will be examed in the study phase.Amount of grant(s) $1,850,000 5. The longer lengths of heat piping needed to connect the separate buildings in this proposed district system increase the cost.Interest Rate 5%TermAnnual Finance Cost (years) 0%Simple Payback: Total Project Cost/Year One Operating Cost Savings:22 YearsPayback with inflation-adjusted savings: 12 YearsCash Flow DescriptionUnit CostsFuel Source (%)Annual Volume Unit Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 12 Year 20 Year 30Existing Heating System Operating CostsDisplaced Heating Costs $4.49 100% 42,600 gal $191,274 $200,838 $210,880 $221,424 $232,495 $244,119 $256,325 $269,142 $282,599 $296,729 $327,143 $483,340 $787,310Displaced Operation & Maintenance Costs0 0 0000000000 0Biomass System Operating CostsWood Fuel ($/ton, delivered) $100 90% 569 tons $51,229 $53,022 $54,878 $56,799 $58,787 $60,844 $62,974 $65,178 $67,459 $69,820 $74,793 $98,488 $138,927Small load existing fuel (10% of total heat requirement) $4.49 10% 42,600 gal $19,127 $20,084 $21,088 $22,142 $23,249 $24,412 $25,633 $26,914 $28,260 $29,673 $32,714 $48,334 $78,731Additional Operation & Maintenance Costs $3,000 100% 1 $3,000 $3,075 $3,152 $3,231 $3,311 $3,394 $3,479 $3,566 $3,655 $3,747 $3,936 $4,796 $6,139Additional Operation & Maintenance Costs, first 2 years$5,000 100% 1 $5,000 $5,000Additional Electrical cost $0.21 100% 20,000 kWh $4,200 $4,305 $4,413 $4,523 $4,636 $4,752 $4,871 $4,992 $5,117 $5,245 $5,511 $6,714 $8,595Total Biomass System Operating Costs$82,557 $85,486 $83,530 $86,695 $89,984 $93,402 $96,956 $100,651 $104,491 $108,485 $116,954 $158,333 $232,393Annual Operating Cost Savings$108,717 $115,352 $127,349 $134,729 $142,511 $150,717 $159,369 $168,491 $178,107 $188,244 $210,189 $325,007 $554,917Savings Percent56.8% 57.4% 60.4% 60.8% 61.3% 61.7% 62.2% 62.6% 63.0% 63.4% 64.2% 67.2% 70.5%Cumulative Savings108,717$ 224,069$ 351,418$ 486,147$ 628,658$ 779,375$ 938,745$ 1,107,236$ 1,285,343$ 1,473,587$ 1,882,704$ 4,049,524$ 8,466,532$ Benefit /Cost Ratio0.06 0.12 0.19 0.26 0.34 0.42 0.51 0.60 0.69 0.80 1.02 2.19 4.58**ESTIMATE**Simple Cost Worksheetwith: 5pct annual cost increase
PRELIMINARY VALUE ANALYSIS WORKSHEETEXISTING CONDITIONSFuel Type Fuel OilCurrent Annual Fuel Cost (August 2008) 4.49 per galAnnual Average Fuel Usage 42,600 galsAnnual Heating Costs $191,274ENERGY CONVERSIONGIVEN PARAMETERSHeat value of fuel oil 134,000 btu/gal Inflation rates:Current Annual Fuel Volume (btu) 5,708,400,000 btu Cost of living 2.5%Assumed efficiency of existing heating system (%) 70% Wood Fuel 3.5%Net Annual Fuel Usage (btu) 3,995,880,000 Fuel Oil 8.0%WOOD CHIP FUELAssumed btu content of wood fuel 5400 btu/lb Wet BasisAssumed efficiency of wood heating system 65%Tons of wood fuel to meet 100% annual heat load 569 tons Wet BasisWood fuel cost $100 per tonPROJECT CAPITAL COST$1,850,000Notes:1. The cost of the wood boiler system is estimated from similar systems envisioned for interior Alaska.Project Financing Information - based on 2008$2. The wood chip fuel cost is a rough estimate based on current chip fuel costs in the Copper River Basin, and Upper Tanana Valley.Percent financed 0% 3. This preliminary spreadsheet provides for a starting point to examine the feasibility of replacing oil heat with wood biomass heat.Amount financed 0% 4. The actual fuel cost and availability will be examed in the study phase.Amount of grant(s) $1,850,000 5. The longer lengths of heat piping needed to connect the separate buildings in this proposed district system increase the cost.Interest Rate 5%TermAnnual Finance Cost (years) 0%Simple Payback: Total Project Cost/Year One Operating Cost Savings:22 YearsPayback with inflation-adjusted savings: 11 YearsCash Flow DescriptionUnit CostsFuel Source (%)Annual Volume Unit Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 20 Year 30Existing Heating System Operating CostsDisplaced Heating Costs $4.49 100% 42,600 gal $191,274 $206,576 $223,102 $240,950 $260,226 $281,044 $303,528 $327,810 $354,035 $382,358 $412,946 $825,481 $1,782,152Displaced Operation & Maintenance Costs0 00000000000 0Biomass System Operating CostsWood Fuel ($/ton, delivered) $100 90% 569 tons $51,229 $53,022 $54,878 $56,799 $58,787 $60,844 $62,974 $65,178 $67,459 $69,820 $72,264 $98,488 $138,927Small load existing fuel (10% of total heat requirement) $4.49 10% 42,600 gal $19,127 $20,658 $22,310 $24,095 $26,023 $28,104 $30,353 $32,781 $35,403 $38,236 $41,295 $82,548 $178,215Additional Operation & Maintenance Costs $3,000 100% 1 $3,000 $3,075 $3,152 $3,231 $3,311 $3,394 $3,479 $3,566 $3,655 $3,747 $3,840 $4,796 $6,139Additional Operation & Maintenance Costs, first 2 years$5,000 100% 1 $5,000 $5,000Additional Electrical cost $0.21 100% 20,000 kWh $4,200 $4,305 $4,413 $4,523 $4,636 $4,752 $4,871 $4,992 $5,117 $5,245 $5,376 $6,714 $8,595Total Biomass System Operating Costs$82,557 $86,060 $84,753 $88,647 $92,757 $97,095 $101,676 $106,517 $111,635 $117,048 $122,775 $192,547 $331,877Annual Operating Cost Savings$108,717 $120,516 $138,349 $152,303 $167,469 $183,949 $201,851 $221,293 $242,400 $265,310 $290,171 $632,935 $1,450,276Savings Percent56.8% 58.3% 62.0% 63.2% 64.4% 65.5% 66.5% 67.5% 68.5% 69.4% 70.3% 76.7% 81.4%Cumulative Savings108,717$ 229,233$ 367,583$ 519,885$ 687,355$ 871,304$ 1,073,156$ 1,294,448$ 1,536,848$ 1,802,158$ 2,092,329$ 6,235,099$ 16,530,630$ Benefit /Cost Ratio0.06 0.12 0.20 0.28 0.37 0.47 0.58 0.70 0.83 0.97 1.13 3.37 8.94**ESTIMATE**Simple Cost Worksheetwith: 8pct annual cost increase
PRELIMINARY VALUE ANALYSIS WORKSHEETEXISTING CONDITIONSFuel Type Fuel OilCurrent Annual Fuel Cost (August 2008) 4.49 per galAnnual Average Fuel Usage 42,600 galsAnnual Heating Costs $191,274ENERGY CONVERSIONGIVEN PARAMETERSHeat value of fuel oil 134,000 btu/gal Inflation rates:Current Annual Fuel Volume (btu) 5,708,400,000 btu Cost of living 2.5%Assumed efficiency of existing heating system (%) 70% Wood Fuel 3.5%Net Annual Fuel Usage (btu) 3,995,880,000 Fuel Oil 10.0%WOOD CHIP FUELAssumed btu content of wood fuel 5400 btu/lb Wet BasisAssumed efficiency of wood heating system 65%Tons of wood fuel to meet 100% annual heat load 569 tons Wet BasisWood fuel cost $100 per tonPROJECT CAPITAL COST$1,850,000Notes:1. The cost of the wood boiler system is estimated from similar systems envisioned for interior Alaska.Project Financing Information - based on 2008$2. The wood chip fuel cost is a rough estimate based on current chip fuel costs in the Copper River Basin, and Upper Tanana Valley.Percent financed 0% 3. This preliminary spreadsheet provides for a starting point to examine the feasibility of replacing oil heat with wood biomass heat.Amount financed 0% 4. The actual fuel cost and availability will be examed in the study phase.Amount of grant(s) $1,850,000 5. The longer lengths of heat piping needed to connect the separate buildings in this proposed district system increase the cost.Interest Rate 5%TermAnnual Finance Cost (years) 0%Simple Payback: Total Project Cost/Year One Operating Cost Savings:22 YearsPayback with inflation-adjusted savings: 10 YearsCash Flow DescriptionUnit CostsFuel Source (%)Annual Volume Unit Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 12 Year 20 Year 30Existing Heating System Operating CostsDisplaced Heating Costs $4.49 100% 42,600 gal $191,274 $210,401 $231,442 $254,586 $280,044 $308,049 $338,854 $372,739 $410,013 $451,014 $545,727 $1,169,814 $3,034,197Displaced Operation & Maintenance Costs0 0 0000000000 0Biomass System Operating CostsWood Fuel ($/ton, delivered) $100 90% 569 tons $51,229 $53,022 $54,878 $56,799 $58,787 $60,844 $62,974 $65,178 $67,459 $69,820 $74,793 $98,488 $138,927Small load existing fuel (10% of total heat requirement) $4.49 10% 42,600 gal $19,127 $21,040 $23,144 $25,459 $28,004 $30,805 $33,885 $37,274 $41,001 $45,101 $54,573 $116,981 $303,420Additional Operation & Maintenance Costs $3,000 100% 1 $3,000 $3,075 $3,152 $3,231 $3,311 $3,394 $3,479 $3,566 $3,655 $3,747 $3,936 $4,796 $6,139Additional Operation & Maintenance Costs, first 2 years$5,000 100% 1 $5,000 $5,000Additional Electrical cost $0.21 100% 20,000 kWh $4,200 $4,305 $4,413 $4,523 $4,636 $4,752 $4,871 $4,992 $5,117 $5,245 $5,511 $6,714 $8,595Total Biomass System Operating Costs$82,557 $86,442 $85,587 $90,011 $94,739 $99,795 $105,209 $111,010 $117,233 $123,913 $138,813 $226,980 $457,081Annual Operating Cost Savings$108,717 $123,959 $145,855 $164,575 $185,306 $208,253 $233,645 $261,729 $292,780 $327,101 $406,914 $942,834 $2,577,116Savings Percent56.8% 58.9% 63.0% 64.6% 66.2% 67.6% 69.0% 70.2% 71.4% 72.5% 74.6% 80.6% 84.9%Cumulative Savings108,717$ 232,676$ 378,531$ 543,106$ 728,412$ 936,665$ 1,170,310$ 1,432,038$ 1,724,818$ 2,051,919$ 2,823,857$ 8,217,029$ 25,346,397$ Benefit /Cost Ratio0.06 0.13 0.20 0.29 0.39 0.51 0.63 0.77 0.93 1.11 1.53 4.44 13.70**ESTIMATE**Simple Cost Worksheetwith: 10pct annual cost increase
Haines Borough Renewable Energy Fund Grant Application
Attachment G:
Preliminary Project Schedule
IDTask NameDurationStartFinish1Grant Award and Notice to Proceed (NTP)0 daysFri 12/19/08Fri 12/19/082Phase I - Reconnaissance 42 daysFri 12/19/08Wed 2/18/093Research - gather existing data10 daysFri 12/19/08Mon 1/5/094Preliminary Engineering22 daysTue 1/6/09Wed 2/4/095Prepare Wood Source Report10 daysThu 2/5/09Wed 2/18/096Deliverable: Wood Source Report 0 daysWed 2/18/09Wed 2/18/097Phase 2 - Resource Assessment / FeasibilityAnalysis / Conceptual Design (35%)98 daysThu 2/19/09Wed 7/8/098Gather geotechnical data for boiler and woodstorage building10 daysThu 2/19/09Wed 3/4/099Conduct resource assessment14 daysThu 3/5/09Tue 3/24/0910Review data and prepare Feasibility Study30 daysWed 3/25/09Tue 5/5/0911Issue Feasibility Study0 daysTue 5/5/09Tue 5/5/0912Develop Concept Design30 daysWed 5/6/09Wed 6/17/0913Issue 35% Planset0 daysWed 6/17/09Wed 6/17/0914AEA, agencies, contracted parties review andcomment on report and plans14 daysThu 6/18/09Wed 7/8/0915Concept Design (35%) approved0 daysWed 7/8/09Wed 7/8/0912/19/082/18/095/5/096/17/097/8/0Dec '08Jan '09Feb '09Mar '09Apr '09May '09Jun '09Jul '092009TaskMilestoneSummaryPreliminary Project Development Schedule Haines BoroughProposed Wood-Fired District Heat SystemAttachment GSection 3.2 Project ScheduleHaines Borough, AlaskaPage 1Project: Preliminary Schedule Wood HeatingDate: Wed 10/8/08
Haines Borough Renewable Energy Fund Grant Application
Attachment H:
Proposed Site Plan
Proposed Bulk Wood‐Fired Heating Building
Preliminary Boiler Sizing Data
Haines Borough Proposed Wood-Fired Hydronic Heat System
Attachment H
PRELIMINARY BOILER SIZING DATA
Likely
Peak System
Output Load Peak
MBH Factor MBH
K-12 Bldg Boilers 4,200 0.6 2520.0
Voc Ed Building 219 1.0 219.0
Public Library 397 1.0 397.0
Admin Building 500 1.0 500.0
Total: 5,316 3636.0
Likely Biomass
System Biomass Boiler
Peak Boiler Size
MBH Factor MBH
System Total: 3636 0.6 2182
Heat Energy Produced
Input Assumed Heat Energy Prod.
Gals Btu/gal Btu Efficiency Btu
Fuel Oil 42,600 134,000 5,708,400,000 0.8 4,566,720,000
Maximum Potential Output - Existing Boilers
Connected Max
Output Weeks of Possible Capacity
Btu/hr Operation Btu Factor
5,316,000 36 32,151,168,000 0.14
Maximum Potential Output - Biomass Boiler
Connected Max
Output Weeks of Possible Capacity
Btu/hr Operation Btu Factor
2,181,600 36 13,194,316,800 0.35
Connected Boiler Load Summary
Biomass Boiler Size
School Heating System Capacity Factors
Page 1 of 1
Haines Borough Renewable Energy Fund Grant Application
Attachment I:
Other Support Letters