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Cordova Winter Firewood Supply Project Native Village of Eyak App
110 Nicholoff Way P.O. Box 1388 Cordova, Alaska 99574-1388 Ph (907) 424-7738 * Fax (907) 424-7739 10,000 years in our Traditional Homeland, Prince William Sound, the Copper River Delta, & the Gulf of Alaska Alaska Energy Authority 813 West Northern Lights Blvd. Anchorage, AK 99503 October 6, 2008 Attn: Butch White Re: Request for Funding Dear Mr. White, The Native Village of Eyak has developed a proposal for a Cordova Winter Firewood Supply Project for residents in Cordova, Alaska. We are pleased to request funding from the Alaska Energy Authority for $364,225. Cordova is only accessible by air or water, so the cost of living is extremely high, at 25% more than the U.S. average. For that reason, the majority of Tribal and Community members rely heavily on subsistence hunting, fishing, and gathering for their survival. Households reliant on diesel fuel for heat are confronted with the challenge of paying high retail fuel prices to meet their basic survival needs. The Native Village of Eyak would like to alleviate this burden by initiating a community -wide firewood program. Residents in Cordova will be directly served through this program. The community firewood program will focus on reducing heating costs this winter by providing affordable firewood to use instead of the astronomically expensive heating oil. With your assistance, we will help households save money on home heating costs this winter. This project has the potential to displace 312,633 gallons of fuel saving the community $1.578 million. Please find enclosed the Renewable Energy Fund grant application for the Cordova Winter Firewood Supply Project. Your financial support for this project is greatly appreciated. Sincerely, B ce Cain Executive Director Native Village of Eyak Native Village of Eyak Cordova Winter Firewood Supply Project Table of Contents (Page numbers refer to hand -numbered pages) Grant Application Resumes Cost Worksheet Budget Electronic Version of Grant Application .................. Governing Body Resolution 1 17 ...........................................22 ............................................2 5 ...30 Supporting Documentation.....................................................................................34 MatchingFunds.............................................................................................34 BreakEven Analysis......................................................................................35 Notes and Assumptions..................................................................................36 BusinessPlan Data.........................................................................................37 WoodSupply Estimates.................................................................................38 Firewood Processor Mill Description............................................................41 Shipping Cost Estimate..................................................................................46 Lettersof Support ..........................................................................................47 ALASM Renewable Energy Fund © ENERGY AUTHOWTY Grant Application 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.orq/RE Fund.html The following application forms are required to be submitted for a grant recommendation: Grant Application GrantApp.doc Application form in MS Word that includes an outline of Form 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 Costworksheet.doc Summary of Cost information that should be addressed Worksheet by applicants in preparing their application. Grant Budget GrantBudget.xls A detailed grant budget that includes a breakdown of Form costs by task and a summary of funds available and requested to complete the work for which funds are being requested. Grant Budget GrantBudgetlnstr.pdf Instructions for completing the above grant budget form. Form Instructions • 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. AEA 09-004 Grant Application Page 1 of 16 9/2/2008 ALASKA ENERGY AUTHORITY Renewable Energy Fund Grant Application SECTION 1 — APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Native Village of Eyak Type of Entity: Federally Recognized Indian Tribe Mailing Address P.O. Box 1388, Cordova, AK 99574 Physical Address 110 Nicholoff Way, Cordova, AK 99574 Telephone Fax Email 907.424-7738 907-424.7739 bruceOnvevak.org 1.1 APPLICANT POINT OF CONTACT Name Title Bruce Cain Executive Director Mailing Address P.O. Box 1388, Cordova, AK 99574 Telephone Fax Email 907-424-7738 907-424-7739 bruce@nveyak.org 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer, or A local government, or X A governmental entity (which includes tribal councils and housing authorities); X 1.2.2. Attached to this application is formal approval and endorsement for its project by Yes its board of directors, executive management, or other governing authority. If a or collaborative grouping, a formal approval from each participant's governing No authority is necessary. (Indicate Yes or No in the box ) X 1.2.3. As an applicant, we have administrative and financial management systems and Yes follow procurement standards that comply with the standards set forth in the grant or agreement. No X 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached Yes grant form. (Any exceptions should be clearly noted and submitted with the or application.) No AEA 09-004 Grant Application Page 2 of 16 9/3/2008 W /ALASKA Renewable Energy Fund t_, ENERGY AUTHORITY Grant Application 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. We are proposing to implement a community wide firewood processing and distribution program. This is a field ready non -construction project that will be implemented this winter and provide critically needed fuel for our community this winter. The equipment has an expected life of 5 years and we have a planned 5 year fuel supply that can be used to keep the program going into the future. 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 r*ct. The project is located in Cordova, Alaska. Because of astronomical home heatine costs, we need to provide an affordable form of energy this winter. Affordable fuel wood is available to the community, from donated logs at an old sort yard and from an airport clearing project. We need assistance with purchasing a processing mill, yarding the logs, and cutting the logs into split firewood. The Eyak Corporation owns several log sort yards which they have generously donated to the village for firewood use. The State of Alaska has offered down logs from the airport clearing project. To efficiently process this wood, we will purchase a firewood processing mill, set it up and train the operators. The mill will enable us to process firewood in a timely manner to be able to distribute an abundant amount of firewood to the community. We will mill approximately 3,421 cords of firewood. The supply for this will come from existing log decks and the airport clearing project. The firewood will be distributed to our elders at no cost and the rest of the community will be asked to contribute $50 per cord to sustain the program. The money generated will help pay for labor costs of processing the firewood in future years. This project will provide 37.2 billion BTU's of low cost energy for home heating and will offset 312.6 thousand gallons of fuel oil and save $1.58 million this winter in home heating costs for Cordova. 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. Funding is needed to purchase the firewood processor, hire a project manager and process the firewood. The Native Village of Eyak is requesting funding from the Alaska Energy Authority for these items. The Firewood Processing Mill costs approximately $147 thousand including shipping and labor to set it up. Another $149 thousand will be needed for labor costs and supplies associated with processing the firewood. Other costs include $29 thousand to distribute the wood, $22 thousand to yard up logs from the airport clearing project, $10 thousand to train the operators and $6 thousand for cleanup after the project is completed. Contributions include the donated firewood. The Eyak corporation has generously agreed to donate the logs located in the sort yards on their land. The value of contributed wood is $176,050. In kind match from the AEA 09-004 Grant Application Page 3 of 16 9/3/2008 5 �V ALASM Renewable Energy Fund Grant Application applicant consists of use of our facilities and equipment and is valued at $88,550. The project cost total is the amount requested in this application. This is a short term project that can be implemented immediately. Total project cost including the value of the donated wood and in kind match is $628,825. The AEA request is $364,225. The project will be sustainable for 5 years and is budgeted to produce 1,500 cords per year into the future without any further grant assistance required. 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. This nroiect will be very beneficial to the communitv. Households and individuals will save money on hearing costs this winter by having affordable firewood available to use as fuel instead of astronomically expensive heating oil. The project will displace 312,633 gallons of heating oil in year 1. The estimated annual savings to the community is $1,578,797 with avoided purchases of fuel oil in year 1. In years 2 through 5, we plan to produce 1,500 cords per year which will displace 137,080 gallons of fuel oil and generate $692,254 in savings annually. The total dollar savings in a 5 year period is estimated to be $4,347,813 and the future value over a 5 year period of this annual benefit to our community at a 6% rate is estimated to be $4,969,716. The return on the grant fund requested investment is estimated at 433% and the break even period is 2.77 months. This estimate was generated by calculating the amount of money saved when using wood heat instead of oil. Other benefits include creating 3 seasonal winter jobs in the wood processing industry and better energy security for our community. We will use wood at the airport clearing project and the old sort yards that would otherwise be wasted in a time of great need. In addition, we will clean up the log sort yards when we are done so they can be used for recreation or agriculture. 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 $628,825 (including estimates through construction. 2.5.2 Grant Funds Requested in this application. $364,225 2.5.3 Other Funds to be provided (Project match) $264,600 2.5.4 Total Grant Costs (sum of 2.6.2 and 2.5.3) $628,825 2.5.5 Estimated Benefit (Savings) $1,578,797 2.5.6 Public Benefit (If you can calculate the benefit in terms of Net savings in year one dollars please provide that number here and explain how $1,578,797. you calculated that number in your application.) Five year savings to our community is $4,347,813. Future value of savings over five year period at 6% is $4,969,716. Return on AEA investment 433%. Simple payback on AEA funds 2.77 months. Fuel oil displaced in year 1 is $312,633 and fuel oil displaced in years 2 through 5 is $137,080. Total fuel oil displaced for the project is 860,953. AEA 09-004 Grant Application Page 4 of 16 9/3/2008 /© ALASKA Renewable Energy Fund 41111117) ENERGY AUTHORITY Grant Application 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 The grant will be managed by the Native Village of Eyak. A project manager will be hired to oversee the processing and distribution of the firewood. This person will need experience in the wood products industry, firewood and sawmill operations, operating heavy equipment and customer service. We have a solid management team. Bruce Cain, CPA is the executive director of NVE and will insure the project will be implemented according to schedule and budget. Autumn Bryson has extensive experience with natural resource projects and Aaron Deville, our proposed project manager has worked on milling wood for years. See attached resumes on page 17. 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.) December 2008 Hire project manager Purchase Firewood Processing Mill Train Operator Set up Mill Begin Processing Firewood at Sort Yards Begin Distribution of Firewood January 2009 through May 2009 Continue Processing and Distribution of Firewood February 2009 Yard logs from Airport Clearing Project when snow cover sufficient May 2009 Completion of processing and distribution May 2009 Clean up work areas, project reports. September 2009 Present project accomplishments at the Rural Energy Conference December 2009 Project Final Report 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. This nroiect has 6 key tasks. The tasks and schedule are as follows: 1. Purchase Firewood Processing Mill December 2008 2. Train Operators December 2008 3. Mill 3,421 cords of firewood December 2008 to May 2009 4. Yazd 100,000 BF of logs from Airport Clearing Project February 2009 5. Manage Distribution of Firewood to Community December 2008 to May 2009 6. Clean up yard and work area May 2009 The most important aspect of this project is the purchase and set up of the Firewood Processing Mill. The firewood could not be cut and distributed in a timely fashion without the use of this AEA 09-004 Grant Application Page 5 of 16 9/3/2008 r� ALASKA Renewable Energy Fund ® ENERGY AUTHORITY Grant Application equipment. Once the mill has been obtained and the operators trained we can begin processing and distributing the firewood. We will yard the logs from the airport clearing project once sufficient snow load is available this winter. We will distribute wood to the elders at no cost. The rest of the community will be asked for a $50 per cord contribution to sustain the firewood program into the future. However, if a family cannot afford to make a contribution, they will still be able to get needed firewood. We also plan to attend the fall 2009 Rural Energy Conference and are willing to present the accomplishments of this project at that time. 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. A firewood processor needs to be purchased and delivered to Cordova. We plan to purchase the Cord King model 60 processor because it has the capacity we need and is built to handle the kind of wood we will be using. We have a John Deer 844 loader that will be available for the project. We will need forks to move the logs with. Personnel will be needed to manage this project and ensure timely processing and distribution of firewood. Personnel will be trained on the operation and maintenance of the equipment. We will use NVE company trucks to distribute the firewood to our elders. Local residents will haul their own wood or contract separately for delivery. A local contractor will be used to yard the logs from the airport clearing project. A partnership with the Eyak Corporation has made this program possible. The Corporation has generously donated the firewood to distribute to the community. See letter on page 50. Elders will receive free firewood. Other residents will be asked to contribute $50 per cord to cover costs for the program and to fund future firewood projects to sustain the program. Native Village of Eyak went through a rigorous selection process to select the appropriate model for the firewood processor. Many models were reviewed, however not all the models were best suited for the size of logs available. Therefore the Native Village of Eyak chose the Cord King model 60. This model has the capabilities that are required for the scope of the project. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. The Native Village of Eyak will keep records on the number of cords of wood processed and distributed to the community. These records will be available for the Alaska Energy Authority to view at any time. We have an approved accounting and management system and meet the requirements of a Mature Contractor under the Indian Self Determination Act and have operated our own self governance programs through a government to government compact with the United States for many years. All transactions will be approved and processed according to our standard policies and procedures. Progress reports will also be submitted to the Alaska Energy Authority that include the cords processed, cords distributed, the funds expended, the funds remaining in the budget, fuel oil savings to the community and other project benefits. We conduct an annual single audit of all the operations of the Native Village of Eyak. This report will be available to the Alaska Energy Authority. We will also submit all required grant and project narrative and financial reports in a timely manner as outlined in the grant conditions. AEA 09-004 Grant Application Page 6 of 16 9/3/2008 a ALASKA Renewable Energy Fund ®ENERGY AUTHORITYGrant Application 3.6 Project Risk Discuss potential problems and how you would address them. A potential problem that may arise with this project is equipment malfunctions. The Native Village of Eyak will address equipment breakdown issues by performing preventive maintenance and training operators on safe and proper ways to operate the machinery. We will do daily safety inspections and keep the equipment oil changed and greased properly. The processing mill also comes with a good manufacturer's warranty that will cover manufacturing defects. Inclement weather may also disrupt the project activities. NVE will attempt to work around the weather as much as possible and keep snow and other debris clear of all working areas. We plan to have an extensive training and safety program to insure worker safety while working on the equipment. 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. There are two sort yards located on Eyak Corporation land. The sort yard at Mile 15 contains 1,863 cords of firewood. The sort yard on Cabin Lake Road contains 1,358 cords. The log pile located at the airport clearing project contains 200 cords of firewood. The total cords of firewood available for this project totals approximately 3,421. These cords will produce approximately 49.6 billion gross BTUs of heat. Using an estimated efficiency factor of 75%, this will produce a net usable heat value to the community of 37.2 billion BTU's. These values were approximated by measuring the log piles, estimating the cords recoverable from each pile, and converting the cords into BTUs. USFS certified log scalers reviewed our computations. See page 38. The advantage of increasing the use of wood heat this winter is that this is one of the few ways we can impact heating costs immediately. There are many good projects that will take years to implement. However, this project will make an impact this winter when we really need help. One disadvantage of using firewood is that heating with wood fuel is more labor intensive compared to oil heat. This is a minor inconvenience when considering the amount of money that is saved. The estimated fuel oil savings using an 85% efficiency factor for fuel oil is 312,633 gallons and will produce an annual savings of $1,578,799 at our current price of $5.05 per gallon. See attached break even analysis on page 35. 4.2 Existing Energy System AEA 09-004 Grant Application Page 7 of 16 9/3/2008 /Zip ALASM Renewable Energy Fund GED ENERGY AUTHORITY Grant Application 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. Most households in Cordova rely on oil furnaces to heat their homes. Our community is an older community with inefficient heating systems. Fuel oil is a very inefficient and expensive way to heat with this set up. Wood heat is a good short term alternative. According to the 2008 Community Weatherization Statistical Information, there are 1,012 households in Cordova with 61 % owning their own home. This project will provide an immediate benefit to our oil crisis and will get us through the winter while we work on other longer term permanent solutions such as hydro -electric storage and wind power. We want to aid our community by ensuring that there is plenty of inexpensive firewood available this winter so that we prevent families and elders from severe hardship. 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 existine enerev resources includes both wood and oil heat. Currently the maioritv use oil heat. However with the increasing oil prices many residents have gone back to wood heat or are transitioning to wood based heating. The firewood project has the potential to decrease the demand for oil. The project is not anticipated to have any impact on the existing energy infrastructure. Approximately 312,633 gallons of fuel oil could be displaced by using wood for heat instead of oil. According to the Energy Information Administration, the average cost per month for heating fuel is expected to increase by 30% this winter. Our estimates in Cordova this winter are that 200 gallons per month will cost $1,010 for one month. Many homes use more than this and people simply cannot afford it. The only alternative without the wood project is to go without heat or leave town. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Currently in Cordova, approximately 670 thousand gallons of fuel are used for home heating. This project would have a positive impact on energy customers. If energy customers opted to use wood heat instead of oil, the community could cut our oil consumption almost in half. This project has the potential to displace 312,633 gallons of heating oil. Energy customers will save money by utilizing affordable firewood instead of astronomically expensive heating oil. Approximately $1.578 million dollars could be saved by displacing heating oil with firewood for energy use. AEA 09-004 Grant Application Page 8 of 16 9/3/2008 rd /4 ALASM Renewable Energy Fund 409D ENERGY AUTHORITY Grant Application 4.3 Proposed System Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, and environmental issues. 4.3.1 System Design Provide the following information for the proposed renewable energy system: • A description of renewable energy technology specific to project location • Optimum installed capacity • Anticipated capacity factor • Anticipated annual generation • Anticipated barriers • Basic integration concept • Delivery methods Woodv biomass is considered a renewahle resource TTsino wood for e e.rvv nrnductinn createc renewable energy. There is an abundant amount of wood available in Cordova. Currently this valuable resource is laying in the sort yard rotting. We want to take advantage of this easily accessible and inexpensive form of energy. One cord of wood produces approximately 14.5 million BTUs. This project has the potential to generate approximately 3,421 cords of wood. The total generation of energy from this project is over 37.2 billion BTUs. By utilizing this abundance of heat generated from burning wood, we can warm our homes this winter in a cost-effective manner. For those of us with woodstoves in our homes, this is the perfect solution to overcome the high cost of energy. Inexpensive wood energy will be delivered right to our door. The system will be setting up the firewood processor at the sort yard, milling the wood into a giant pile of split wood. The Cord King Model 60 has a production factor of 4 to 7 cords per hour with an estimated annual production of 6,000 cords per year and 30 cords per day working an 8 hour day. We anticipate milling the 3,421 cords in 6 months. We will deliver firewood to our elders with military two surplus one ton crew cab 4WD diesel pick up. Other community members will haul their own or contract separately for delivery. They will load from the pile and our crew will assist with loading. Those who can afford it will be asked to make a $50 per cord contribution to the project for cost recovery and program sustainability. The Native Village of Eyak will coordinate delivery of wood to our elders. 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 Eyak Corporation owns several tracts of land which contain old log sort yards. The Corporation has agreed to donate these logs to the community for firewood this winter. The State of Alaska owns the land that the logs from the Airport Clearing Project are on. They are supportive of the logs being used by the public. The only restriction that is in place is that the logs cannot be yarded or skidded until sufficient winter snow cover is in place and we have to coordinate with air traffic control for aircraft safety. No other land ownership issues are anticipated. 4.3.3 Permits Provide the following information as it may relate to permitting and how you intend to address outstanding permit issues. AEA 09-004 Grant Application Page 9 of 16 9/3/2008 /® ALASKA Renewable Energy Fund ® ENERGYAUTHORRV Grant Application • List of applicable permits • Anticipated permitting timeline • Identify and discussion of potential barriers No permits are anticipated for this project. Permission from the Eyak Corporation for access to log decks has been granted. We have support from the Alaska Department of Natural Resources and the Alaska Department of Transportation and Public Facilities, to yard up 100,000 board feet of logs from the airport clearing project. We will need to coordinate with air traffic control on moving logs across the airport. We have contacted the FAA and AK DOT on this and they have given us verbal support. 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 nroiect will have no impact on threatened or endangered -neciec The lnnR have alreadv heP.n felled sn no impacts to habitat are anticipated. We will stay out of wetlands and protected areas. No known archaeological or historical resources are associated with the sort yard sites. No additional visual or aesthetic impacts are likely to occur. The project will be beneficial to the environment by removal of the large log piles from the old sort yards and airport area. The sort yard areas will be cleaned up after the project is completed. The land will not be developed with this project. There will be no telecommunications interference associated with this project. All aviation rules and regulations will be followed when processing the logs on the airport land. 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 The anticipated cost of this project is $364,225. Matching funds in -kind in the amount of AEA 09-004 Grant Application Page 10 of 16 9/3/2008 �D '© ALASKA Renewable Energy Fund © ENERGY AUTHORrTY Grant Application $264,600 is provided. Total project cost is $628,825. Return on AEA investment is expected to be 433% and a payback of 2.77 months. See attached financial analysis spreadsheets on page 35 and budget on page 25. This project cost effective and is a good use of the limited Renewable Energy Fund dollars. The project can be implemented immediately and will impact energy costs to homes in our community this winter. Residents will benefit this winter when the assistance is needed the most. The up front cost for starting this project will be a one time expense. The project will be self sufficient after the initial investment. Revenues generated from the cost recovery contributions will be reinvested into the project to pay for future firewood projects and to sustain the on -going program. Applicant matching costs will be provided as follows. Use of meeting space for training $800. This value is based on our standard charges for use of meeting space. Use of loader for moving logs and yard work $81,000. This is based on the rental value of the equipment net of fuel and repairs. Use of trucks for delivery, and other project uses $6,750. This is based on the rental value of the trucks net of fuel and repairs. Total in kind provided by applicant $88,550. Other funding source is the contribution of the logs for the project. These are estimated to be a $175,050 value at $50 per cord. Total in kind match for the project is $264,600. 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 No facilities will be constructed in association with this project. Operation and maintenance costs for the firewood processing mill, loader and pick up trucks are estimated to be $66,838. We are requesting this amount from AEA. Operation and maintenance will include fuel and spare parts, such as oil, filters, grease, hydraulic oil, anti -freeze, bearings, hoses, fittings, hydraulic pumps, blades, wedges, conveyor axles, welding rod, tires, gaskets, wiring, drivelines, u joints, windshields, wipers, mirrors, lights, small tools, etc. We are requesting these funds from AEA. After the first year the O&M costs will be paid for with the contributions from firewood users for cost recovery. 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 N/A on power buyers and power purchase agreements. Return on AEA investment is 477%. Simple payback is 2.77 months. The project will displace 312,633 gallons of heating oil in year 1. Estimated annual savings to the community is $1,578,797 over purchasing fuel oil in year 1. Years 2 through 5 we plan to produce 1500 cords per year which will displace 137,080 gallons of fuel oil and generate $692,254 in savings annually. The total dollar savings in a 5 year period is estimated to be $4,347,813 and the future value over a 5 year period of this annual benefit to our community at a 6% rate is estimated to be $4,969,716. 4.4.4 Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. AEA 09-004 Grant Application Page 11 of 16 9/3/2008 ® ENERGY ALASHORITY KA Renewable Energy Fund Grant Application Download the form, complete it, and submit it as an attachment. Document any conditions or sources your numbers are based on here. AEA 09-004 Grant Application Page 12 of 16 9/3/2008 ,a ALASKA Renewable Energy Fund /4MC) ENERGY AUTHORITY Grant Application 4.4.5 Business Plan Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum proposed business structure(s) and concepts that may be considered. This project is planned to be sustained for 5 years. Our main goal is to get fuel wood available for use this winter while we are in a crisis mode from the extreme cost of heating fuel. The mill will provide 3,421 cords of wood from existing log decks and down trees from an airport clearing project. We have the following construction projects on the books for Cordova in the next 5 years. The Hartney Bay Subdivision will provide 22.5 miles of new road construction. The Shepard Point Road is anticipated to have 4.5 miles of new road construction. The Coast Guard Housing project will have 2 acres of clearing. In addition there will be on going right of way clearing from routine maintenance on the highway system. The USFS estimates approximately 16 cords per acre cleared. This will provide and estimated 284 cords of wood per year for the next five years to sustain the project fuel supply. An additional 1,216 cords will need to be supplied from public and private sources. We will request $50 per cord contribution from those who can afford it in year 1 and we will charge everyone $50 per cord in years 2 to 5. This is expected to generate $75,000 per year that will sustain the labor and maintenance costs to keep the project going. Year 1. Production 3421 cords. Cost 364,225 AEA Funded. Year 2 Production 1500 cords. Cost $67500. Cost Recovery Funded. Year 3 Production 1500 cords. Cost $67500. Cost Recovery Funded. Year 4 Production 1500 cords. Cost $67500. Cost Recovery Funded. Year 5 Production 1500 cords. Cost $67500. Cost Recovery Funded. See attached Cordova Winter Firewood Supply Project Section 2 Note 5 Business Plan assumptions on page 37. 4.4.6 Analysis and Recommendations Provide information about the economic analysis and the proposed project. Discuss your The economic analysis, break even analysis and business plan assumptions are attached on page 35. The analysis concludes that this is a sustainable project. The project will cost $364,225 thousand and approximately $1.578 million will be saved in year 1. Through the firewood sales we will be able to continue to produce 1500 cords annually and displace 137,080 gallons of fuel oil and provide a savings of $691,254 annually. This project will provide 3 local direct jobs in the community and will also provide jobs in the support sector. Additional project development work is to develop a long range community fuel wood supply plan. AEA 09-004 Grant Application Page 13 of 16 9/3/2008 13 /ALASKA Renewable Energy Fund ® ENERGY AUTHORITY Grant Application 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) The community firewood project will be very beneficial for Cordova residents. With an increase in wood heat the amount of fuel displaced will be 312,633 gallons in the first year. Approximately $75,000 thousand is estimated to be generated in revenue from the contributions from users of the firewood. This money will be reinvested in the program to help pay for labor costs. This project will also provide much needed winter employment opportunities in Cordova. The project will displace 312,633 gallons of heating oil in year 1. Estimated annual savings to the community is $1,578,797 over purchasing fuel oil in year 1. Years 2 through 5 we plan to produce 1500 cords per year which will displace 137,080 gallons of fuel oil and generate $692,254 in savings annually. The total dollar savings in a 5 year period is estimated to be $4,347,813 and the future value over a 5 year period of this annual benefit to our community at a 6% rate is estimated to be $4,969,716. The return on the grant fund requested investment is estimated at 433% and the break even period is 2.77 months. This project will also be beneficial to the environment through the reduction of emissions from burning oil. Emissions reduced are as follows: Project Year Oil Diverted CO (Ibs) S02 (Ibs) 1 312,633 1,563.17 2,219.69 2 137,080 685.40 973.27 3 137,080 685.40 973.27 4 137,080 685.40 973.27 5 137,080 685.40 973.27 TOTAL 860,953 4,304.77 6,112.77 Emission factors (lbs/gal) CO — 0.005 S02 — 0.0071 NOx — 0.02 Emission factors are from EPA AP 42, 1.3 Fuel Oil Combustion 9/98. NOx (Ibs) 6,252.66 2,741.60 2,741.60 2,741.60 2,741.60 17,219.06 SECTION 6 — GRANT BUDGET Tell us how much your total project costs. Include any investments to date and funding sources, AEA 09-004 Grant Application Page 14 of 16 9/3/2008 I IV ALASKA Renewable Energy Fund ® ENERGY AUTHORITY Grant Application 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. We are very committed to this project; our community is depending on it. We are requesting $364,225 in grant funds for the initial startup costs. We will invest our time and support equipment into the project. Our in kind contribution amounts to $264,600 and includes $88,550 in kind equipment usage and $176,050 of logs. See attached budget work sheets on page 25, break even analysis and assumptions on pages 35 to 37. AEA 09-004 Grant Application Page 15 of 16 9/3/2008 15 � _ALASM Renewable Energy Fund Grant Application SECTION 7 — ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. Resumes of Applicant's Project Manager, key staff, partners, consultants, and suppliers per application form Section 3.1 and 3.4 B. Cost Worksheet per application form Section 4.4.4 C. Grant Budget Form per application form Section 6. D. An electronic version of the entire application per RFA Section 1.6 E. Governing Body Resolution per RFA Section 1.4 Enclose a copy of the resolution or other formal action taken by the applicant's governing body or management that: - authorizes this application for project funding at the match amounts indicated in the application - authorizes the individual named as point of contact 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 Bruce Cain Signature Title Executive Director Date October 7, 2008 AEA 09-004 Grant Application Page 16 of 16 9/3/2008 ALASM Renewable Energy Fund � ENERGY AUTHORITY 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. See Attached Break Even Analysis Page 35 Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) 2. Existing Energy Generation a) Basic configuration (if system is part of the Railbelt' grid, leave this section blank) i. Number of generators/boilers/other ii. Rated capacity of generators/boilers/other iii. Generator/boilers/other type iv. Age of generators/boilers/other v. Efficiency of generators/boilers/other b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor ii. Annual O&M cost for non -labor 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 d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] 677,000 Gallons ii. Electricity [kWh] 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. RFA AEA 09-004 Application Cost Worksheet revised 9126108 Page 1 as /c ALASKA Renewable Energy Fund -i ENERGY AUTHORITY iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] 400 Cords vi. Other a) Installed capacity b) Annual renewable electricity generation i. Diesel [gal or MMBtu] N/A ii. Electricity [kWh] N/A iii. Propane [gal or MMBtu] N/A iv. Coal [tons or MMBtu] N/A v. Wood [cords, green tons, dry tons] 3421 cords vi. Other N/A a) Total capital cost of new system $146,946 b) Development cost None. Shipping and set up labor included above. c) Annual O&M cost of new system $61,088 d) Annual fuel cost Processor $20,453, Loader $13,635 5. Project Benefits a) Amount of fuel displaced for i. Electricity ii. Heat 312,633 gallons Year 1, 860,953 gallons Project Life iii. Transportation b) Price of displaced fuel $5.05/Gallon $1,578,797 Year 1, $4,347,813 Project Life c) Other economic benefits d) Amount of Alaska public benefits The project will displace 312,633 gallons of heating oil in year 1. Estimated annual savings to the community is $1,578,797 over purchasing fuel oil in year 1. Years 2 through 5 we plan to produce 1500 cords per year which will displace 137,080 gallons of fuel oil and generate $692,254 in savings annually. The total dollar RFA AEA 09-004 Application Cost Worksheet revised 9126108 Page 2 �� /4'IED ALASKA Renewable Energy Fund 101111172 ENERGY AUTHORITY savings in a 5 year period is estimated to be $4,347,813 and the future value over a 5 year period of this annual benefit to our community at a 6% rate is estimated to be $4,969,716. The return on the grant fund requested investment is estimated at 433% and the break even period is 2.77 months. 6. Power Purchase/Sales Price a) Price for power purchase/sale N/A 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio Payback Year 1: 4.33 Project Life: 11.94 2.77 Months Simple Payback RFA AEA 09-004 Application Cost Worksheet revised 9126108 Page 3 El a 0a1 V�1 O O N W 00 LD c-I r, N N t+l CO O H a C J LL `w t O c o o CD M O O o0 o � O M N 00 a u Y N N 3 J LL L u Y @ N L J a C a' rl 01 U1 N 01 r` 0 0 0 r` N LL�6 O cr N a Lr a a c-I a N N lD N L N N V W LL c G y Y_ bn U J E h O` E a o u y u `0 O a a a � Q a O O 3 a E 3 v o o v 0 3 w LL 0 0 p O a w — c Y = y O O 0 Y m N N i N a LL m J L O O O 0 N Q Y O m O U 0 0 N_ ° O a O m U N U .0 MM 'p a Vf cC Y 0 G } C } rl N m a V1 lD H u i N O M T of O O V1 a v J a C, O W O O N w rr a H c-I O m lD W 00 It y Q O N m lD c-1 rl tD o 0 a m � > m " n UD (U u 0) 3 0 O C rn O O 00 r` . 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O } L (p W > 0 0 u n Y Y H F N o O N C O O c 0 U (U O C C vO N a V m c v V m 0 F- ry h 00 V N Y c Q — LL 1,41 00 0 0 0 0 0 Ln v Ln v m o 6 Ol m m m w Ill Ln Q1 a-1 r, N V 0 w LO N .--I N m (U 7A N 0 O Y N 3 c 0 ? (a U r 3 3 N U i S t Y U H v 3 � m Y LN > C Y N O •- a 0 O u O 0 O 0 a)w a c v m v p o O 0 Y o p w Y v a N 0/ Y m 00 LL U (U F- F- O. c Y v o a a a ( M M C Q .� m on M O ? O F- W U Z) m W V O= 0 LL d rn 7 m v O O rn Q a W a a W a� al O O 00 O O O O O O 0 0 00 O u1 O Ln O O N V 00 V N N Ln N w c C. u U do ona w N O u O a o - T vt O Y a � O ] O O 0 C O a a 3 U bD C V i m O `O 'C G1 O- Ci t w y L V0/1 00 w = C C O o y N a �jas� O O N _ ._ " 0 w 0 \ o 00 Q cu O N � � M N a v3i 0 m 0 I V Lo CO C N T tb Ln N N T 0 N a m O to v \ O Ln iy O Ln d 0 � 0 O E J O O 0 Vi cu (L' :2 N aX j W bo F o M v v T C v > 3 O C Y L OU C @ O C a)•On � O L bo O a s 3 C m U N N O N C N a � vi L V U w L a bo a o n o . C U U E O C i w . z t r 3 3 O O O M 0 LL N 61 a m v 0 0 O O Q W a a LL ly 511 nt am 0 0 O 0 O O 0 0 ti ti G O w N O0 o 0 L 0 0 v LL O co 3 0 a 0 v O a 0 0 u N ti v u O ° O O_ L bo m 3 u u u Y 0 — c O U 0 U U m 0 0 0 N tv1 O Y O Y s o v � d 00 op O c � Q 0 O s N O ma � u •Y Y 0_ O � N N tLa d O ai M c m 0 � O C u a C U u j 0 Oq 6 3 0 O c ? ° Y^ °i 3 ° Q ll1 U Y O LT V1 0 J 11 Li n ko 0 Ln o; N Io n O N N n n 0 M a '•I n n O ID M m �o V ei LO LL d a� m Q O CD 0 a W a a 1. 509 1" Street P.O. Box 1388 Cordova, Alaska 99574-1388 `h (907) 424-7738 * Fax (907) 424-7739 TELEPHONE POLL Date: 10-6-08 Resolution No.: 2008-09-01 (REVISON WITH ADMINISTRATIVE EDITS) Resolution In Support of a Grant Application to the Alaska Energy Authority to Develop a Title: Firewood Processing Plant Council Member Name Vote NO YES ABSTAIN Robert J. Henrichs, President Jack Hopkins, Vice -President !/a d Darrel Olsen, Secretary -Treasurer I/ Crystal deVille, Council Member V/ Patience Faulkner, Council Member K/ This Resolution was APVWWE1 on (ktdpeC (Onl2CUB VIA Telephone Poll, with 5 voting For, __0_ voting Against, and __9_ Abstaining. CERTIFIC TI N: Robert J. Henrichs, Vresident D " o lA,� Darrel Olsen, Secretary -Treasurer /,/� q Date Oct fp, Zyo 5( Date The Native Village of Eyak Tribal Council P.O. Box 1388, 509 1" Street Cordova, Alaska 99574-1388 Phone (907) 424-7738 Fax (907) 424-7739 Resolution 2008-09-01 A RESOLUTION BY THE NATIVE VILLAGE OF EYAK IN SUPPORT OF A GRANT APPLICATION TO THE ALASKA ENERGY AUTHORITY TO DEVELOP A FIREWOOD PROCESSING PLANT WHEREAS: the Native Village of Eyak (hereinafter "Tribe") is a federally recognized self-governing tribe; and WHEREAS: the Native Village of Eyak is the governing body of the Tribe; and WHEREAS: The Native Village of Eyak is faced with astronomical costs for heating fuel this winter, and WHEREAS: The state of Alaska has appropriated funds to address renewable energy projects, and WHEREAS: The Native Village of Eyak has an abundance of wood available for use as fuel, and WHEREAS: The Native Village of Eyak has identified the need to improve the availability of wood for our members, and WHEREAS: The Native Village of Eyak will develop a plan to process and distribute firewood, and WHEREAS: The Native Village of Eyak Traditional Council views participation in this project as consistent with the goals of the Tribe. NOW THEREFORE BE IT RESOLVED: That the Native Village of Eyak Traditional Council authorizes and fully supports this application that requests a grant from the Alaska Energy Authority; and BE IT FURTHER RESOLVED: That the Native Village of Eyak. Traditional Council authorizes project funding in the match amount of $ 5Q; and BE IT FURTHER RESOLVED: That the Native Village of Eyak Traditional Council authorizes Executive Director Bruce Cain as the representative point of contact for this project; and BE IT FURTHER RESOLVED: That the Native Village of Eyak Traditional Council states that we are in compliance with all federal, state, and local laws including existing credit and federal tax obligations. �P �a CERTIFICATION: I, hereby certify that I, Robert J. Henrichs am President of the Native Village of Eyak Traditional Council, and the Council consists of 5 duly elected members, and that this Resolution No. 2008-09-01 was considered and FAQ ojET) by the council on Qckober tr')Wg and that the vote was 15 For, and t' _ Against, and _Q5_ Abstaining and that the foregoing resolution has not been rescinded or amended in any way. ,1 bl Robert . Hennchs, Hn si ent Date m Da0I/lbe l Ic Darrel Olsen, Secretary -Treasurer Date 33 Native Village of Eyak Cordova Winter Firewood Supply Project Match Detail Use of Board Room for training In kind value per day 100 Days 8 Value 800 For Training Source NVE Use of Loader to load live deck and to clean up yard when done In Kind Value Per hour 75.00 Hours Per day 8.00 Days Per Month 22.50 Months 6.00 Total Value 81,000.00 90%milling and 10%cleanup Source NVE Note, repair parts and fuel are being requested in the grant. The in -kind is for the hourly usage value for the loader net of fuel and repair parts. Rental value of 1 ton crew cab diesel truck Number of trucks provided to the project 2 Rental Value Per Day 25 Days Per month 22.5 Months 6 Value to project 6750 60% delivery 40% milling Source NVE Note, repair parts and fuel are being requested in the grant. The in -kind is for the hourly usage value for the trucks net of fuel and repair parts. Value of wood Cords 3,521 value in log form per cord 50 Value to the project 176,050 Milling Total Match 264,600.00 Source Eyak Corporation Match provided by Applicant: Math provided by others (Eyak Corporation) Total Match 88,550 176,050 264,600 3_1 m. o o g o o= O m o m N O O O O VI O N q'1 r a o o n o o N o m vi w m o o V o of o a o n a W a v m e r+ o in �c e l0 N m o ,y ti e a N0 0 o n o 0 06 w 0 0 o o m N Y O O O O O1 I� N a O N rl V1 ri n m N N 0 0 o �n o 0 o a > O O O O m n N V O N ri 1l1 r I n m N 'Y M O O O M O O N O W O Y1 > O O O O m n N vOi O voi .ai .�-i ti � a O N •i V1 rl n M N ei 1p 0 0 O O 0 0 N > O O O O T h N V O N rl N rl W Y 6 O W N Q O O O M O N O� O m 0 OI r1 m n W O R Y V O O n b O m ti n lm0 i LL jp 1p N � c c z 3 ; � W Y > O N a w `O t0 V a c J � le u E O 1p `m a o V ar m w i a oo L j u o t £ LL w x w v Z v o o o x C 10 a• � N � a+ N > _ c ? a > a o c O W T a O 5n O C fO hp ac m m y i O iv E E y Y.. E a Q E a c > v N w m J c O 1n � N d m LL F N m C A N � � Y Yl W D o.uU Q CI V v J (O �LLm�wz W a U N o owZ(Du z T m �m d 35 N N N N N 0 0 0 0 0 N N N N N N a 0 0 :7 H m 0 0 0 0 0 0 0 0 0 0 0 C 0 O O O O O v v a a a Ol V 0 0 0 0 0 0 0 0 0 0 N N 1!1 Il1 1!1 v v a v v 0 0 0 0 0 0 0 0 0 0 0 0 of of ui 0 0 .� n n O N O N .ti M 0 0 0 0 0 0 000000 0 0 0 0 0 0 0 0 0 0 0 0 Om Om n1 O1 O O a v LR .i N E W a 0 E N a W O V v w v Z Z 2 w ti o N N O � ri ri K 3 N N > O 0 m w 00 m ti o n o m m 0 F v o ry o m N of �i v ri o n n m o W m m � ti m m v N O m O O O W V� y �y O V1 V1 O N r 1f1 n n n N n lO M 01 r V) n n n N L r' N N m m C O _ >• N C y O ✓ N E m o0 0 0 0 o a -o $ a 3 a w m in o 0 o m �n w �y O Vl Vl O N i� 0� 6 T J u r Vt n n n N w N O. O in Yl 3 °V p V>? w C M W « n E ¢ O m « E o w y ti O Vf Vl O N D O m E m 0" wG r V1 n n n N a u 0 O. h0 C y n l0 M Ot C L V O v C a w w O EO m �O J >i c c Y L E` O m C 0 Om`0 m m �O m J O °u w v > O O 0 J O O w N N O U O' O V N O N O tp n w> J C> N n W a`O _° o 0 n `m m m vni o M O u v C V ri O O tD O, w°- w o w > 3 "D M>m m a m° o '� a w y -° a m@ m'n as c `°wa o m w r w o 0 a o W C y 01 w ` w 0 C d c« m a s a -wa F $° a v p V a ° w Y a C >>o w N° O V1 0 0 w O w y m w 0 r w N w C m C m O m t m N a m 0 0 L O E 3= a 3' u v J a 3 c x w ` a '^ a� `m o E w w 3 m $ ow o a w w c w E o v� E 0 O y J a z u o O N « w E > w V O¢ O a N w L„ o >, G m y a O ¢ 0 W m d '� > C C > O O N m N w Y O = O r N mO O> 0 0 m m O O w u y> O vi V C w z 3 t>a > ti N m 3 v? v° ° w a > A O W ° 0 0 N w 0 O 0 Z u g z a l7 u u r z z z z z Printed by: Bruce Cain Friday, September 26, 2008 4:29:54 PM Title: Re: Firewood Quantities at the Eyak Sort Yard : Eyak Page 1 of 2 Friday, September 26, 2008 2:08:36 PM Message From: $ Robert Behrends <rehrends@fs.fed.us> Subject: Re: Firewood Quantities at the Eyak Sort Yard To: Q Bruce Cain Cc: y Robert Behrends <rehrends@fs.fed.us> Hi Bruce, sorry it has taken me so long to get back with you. I have been out of town part of the time getting Brian back to college. Shown below are the estimated quantities you requested. • Pile #1 has 879 cords = 439 mbf • Pile #2 has 879 cords = 439 mbf • Pile #3 has 105 cords = 53 mbf • Pile Mile 15 has 1358 cords = 659 mbf "Bruce Cain" <bruce(a)nveyak.org > To rbehrends(afs.fed.us 07/31 /2008 03:46 cc PM Subject Firewood Quantities at the Eyak Sort Yard :.. went out to the two sort yards and the following piles of logs are left: 15 mile sort yard: 1 pile 150 foot by 30 foot by 25 foot = 112,500 ft3 / 128 ft3/cord = 879 cords @ 2 cords/mbf = 439 mbf 1 pile 150 foot by 30 foot by 25 foot = 112,500 ft3 / 128 ft3/cord = 879 cords @ 2 cords/mbf = 439 mbf Printed by: Autumn Bryson Title: Wood Supply from Right of way clearing - FS letter of support : Eyak From: 1 Robert Behrends <rehrends@fs.fed.us> Tuesday, October 07, 2008 11:00:05 AM Page 1 of 2 Mon, Oct 06, 2008 4:04:26 PM Z(G Subject: Wood Supply from Right of way clearing - FS letter of support To: Bruce Cain } Autumn Bryson Cc: Robert Behrends <rbehrends@fs.fed.us> Bruce, Autumn, attached is the estimate of wood supply from right of way clearing you requested. I will have the letter of support from the FS to you by noon tomorrow. Please call if you have any questions. ----- Forwarded by Robert Behrends/R10/USDAFS on 10/06/2008 04:00 PM Robert Behrends/R10/USDA FS To "Bruce Cain" <bruce(a)nveyak.orp> 10/03/2008 02:35 cc PM gary.mullen(a).alaska.gov, Robert Beh re nd s/R 10/USDAFS @ FS N OT ES Subject Re: Wood Supply from Right of way clearing(Document link: Robert Behrends) Bruce, 5380 ft/mile x 24' ROW width = 126,780 sq ft / 43560 sq ft/acre = 2.91 acres/mile of ROW 2.91 acres/mile x 8 mbf/acre/ave = 23.3 mbf/mile of ROW 23.3 mbf/mile x 2 cords/mbf = 46.6 cords/mile Between the shephard creek road (with steep sideslopes) and the Hartney Bay road extension (flat to rolling ground), I would estimate your average ROW width to be closer to 30 feet. Redoing the calculation with 30 ft ROW width would equal 3.6 acres/mile x 8mbf/acre/ave =29.1 mbf/mile of ROW 29.1 mbf/mile x 2 cords/mbf = 58.1 cords/mile Bruce, I am estimating ave 8mbf/acre with the understanding parts of the ROW will not have trees on it (ie muskeg, rock outcrops, etc). Generally in the country we are talking about, the ave mbf/acre is approx 10-15 mbf/acre and may go higher in certain locations... so 8mbf/acre is probably Printed by: Autumn Bryson Tuesday, October 07, 2008 11:00:05 AM Title: Wood Supply from Right of way clearing - FS letter of support: Eyak Page 2 of 2 a conservative estimate. Gary, please recheck my numbers. thanks, bob. Bruce, please call if you have any questions. "Bruce Cain" <bruce(a)nvevak.oro > To rbehrends(a)fs.fed. us, 10/03/200810:29 garv.mullen(@alaska.aov AM cc Subject Wood Supply from Right of way clearing Does anyone have any idea how many cords of wood per mile of right of way clearing is generated in the Cordova area? 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Page 1 of r, bruce@nveyak.org D: amlquote@lynden.com abject: New AML Quote Request Form Name: Bruce Cain Email: bruce@nveyak.org Quote Needed by: October 06 Business Name: Native Village of Eyak Phone: 907 424 7738 Fax: 907 424 7739 Business Address: P.O. Box 1388 city: Cordova State: AK Zip Origin of Freight: Anchorage Shipping Date: January 05 2009 Destination of Freight: Cordova Required Delivery Date: January 10 What are you shipping: Loader Forks Estimated Total Weight: 3500 Estimated Dimensions: 4 feet Length What is the frequency of this shipment: Additional comments about the freight: ;iemail 1.6 111: L-CIV6,2- F`�x-_S LS 0-" 99574 2009 8 feet Width 6 feet Height Once i L U0� - UlQv ftp://www.lynden.com/cgi-bin/amlemail.egi/quote-aml.txt qi 10/6/200 Rrwr� E Robert Henrichs, President Native Village of Eyak P.O. Box 1388 Cordova, AK, 99574 October 3, 2008 Dear Robert: CORDOVA ELECTRIC COOI'El-MVE, INC P.O. Box 20, 705 Second Street, Cordova, Alaska 99574-0020 (907) 424-5555 Fax (907) 424-5527 The Cordova Electric Cooperative strongly supports your application for an AEA Renewable Energy Grant to assist your community firewood project in Cordova. I have enjoyed participating in the Cordova Renewable Energy Working group that was formed by NVE to address rising energy costs in Cordova. The CREW collectively identified home heating as the greatest cost to citizens, and the lowest hanging fruit for the quickest deployment and biggest cost reduction for local energy costs. I was pleased to be contacted recently by the USFS to salvage 15 cords of firewood from a CEC project site as part of your program. This cleans the project site and prevents the waste of a valuable renewable resource. The use of local, renewable energy resources to meet heating needs is of staggering economic benefit when the alternative of fuel oil heat is considered. We look forward to supporting your efforts in any way we can to add to the success of your program. Sincerely, Clay Koplin, C O CORDOVA ELECTRIC COOPERATIVE United States Forest Region 10 612 Second Street Department of Service Chugach Natl Forest P. O. Box 280 Agriculture Cordova Ranger Dist Cordova, AK 99574 File Code: 1500 Date: October 6, 2008 To: Bruce Cain Executive Director Native Village of Eyak PO Box 1388 Cordova, AK 99574 re: Letter of Support For Renewable Energy Fund Grant Application By Native Village of Eyak Dear Bruce, This letter is written in support of the Renewable Energy Fund Grant Application being submitted by the Native Village of Eyak (NVE). As energy costs rise throughout the United States no where are the affects of these price increases being felt more than rural communities in Alaska. As winter approaches, many people in Cordova are wondering how they are going to pay for $5.00/gallon fuel oil, and are looking to other sources of energy, particularly firewood, to help heat their homes. Acquiring the firewood processing mill proposed by NVE, utilizing it for fuelwood production, and providing affordable, accessible wood to the public will help reduce Cordova dependence on high price fossil fuels. We look forward to working in partnership with NVE the Eyak Corporation and other agencies and organizations in Cordova to help make the Renewable Energy Fund Grant a success. Please contact Bob Behrends of my staff (424-4729) as the renewable energy fund grant and partnership moves forward. Sincerely, DANIEL W.LOGAN District Ranger Cordova Ranger District q U the C.R.EM. The Cordova Renewable Energy Workgroup P.O. Box 1225 Cordova, Alaska 99574 907-424-7738 John T. Kelsey Chair, AEA Board Alaska Energy Authority 813 West Northern Lights Blvd. Anchorage, AK 99503 October 6, 2008 Dear Chairman Kelsey, I am writing to support three proposals for the Renewable Energy Fund from Cordova The C.R.E.W. is a group of individuals and community organizations that came together this year to address the high energy costs in our community. This summer we made a list of 78 energy projects and ranked them in priority. The top 3 projects are being submitted to you this funding cycle. These address our immediate needs for heating fuel this winter, our mid range electric generation needs and our long range electric generation needs. The supported projects are as follow. Project Title: Cordova Winter Firewood Supply Project. Applicant: Native Village of Eyak. Description: Solves immediate need for heating fuel this winter by providing 3,521 cords of firewood to the community. It will displace 312,633 gallons of fuel oil and will provide an economic benefit of $1,578,797 in fuel oil savings to our community. This addresses the immediate crisis of how we are going to heat our homes this winter. Project Title: Orca Power Plant Heat Recovery Unit. Applicant: Cordova Electric Cooperative. Description: Solves mid term energy production problem by improving efficiency of diesel power generation by 6.7%. It will displace 36,239 gallons of fuel oil annually and will provide an annual economic benefit of $140,245 in fuel oil savings. Project Title: Humpback Creek Hydroelectric Facility Intake and Diversion Dam Construction. Applicant: Cordova Electric Cooperative. Description: Solves long term needs of community for electric production by renovating a 1.25 MWH hydroelectric facility. It will displace 293,040 gallons of fuel oil annually and will provide an economic benefit of $925,085 in fuel oil savings to our community annually. I urge you to favorably review these needed projects for the community of Cordova. If you have any questions, about these projects or our process, please give me a call. Sincerely: 7 the C.R.E.W. Bruce Cain, Coordinator t'M October 7, 2008 Robert Henrichs Chairman Native Village of Eyak Dear Mr. Henrichs, The Eyak Corporation fully supports the program to provide wood to the residents of Cordova. We would like to donate our log sort piles at Cabin Lake and 14 mile to this project. Please consider it an in kind donation on behalf of the shareholders of the Eyak Corporation. We will also issue the necessary permit to set up and operate the equipment in close proximity to the wood on The Eyak Corporation's Land. Sincerely, Jason Borer General Manger The Eyak Corporation. 501,50