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Home My WebLink AboutFort Yukon Revised Scoping DocumentGwitchyaa Zhee Native Corporation  Fort Yukon Wood Energy Program Scope of Work – AEA Phase III Final Design and Permitting Denali Commission -- Purchase of Harvest Equipment A. PROJECT SCOPE  Gwitchyaa Zhee Native Corporation (GZ) has been working for three years in conjunction with multiple partners to develop a model Integrated Biomass Energy Program and specifically a Wood Heating Utility. This integrated approach links sustainable forest management with an in-village wood energy utility to displace over 150,000 gallons of diesel fuel for heating in Fort Yukon. GZ’s scope links two awards together, one if from the Denali Commission for the purchase of harvest equipment and to support harvest of biomass and to initiate the development of a wood yard and storage facility. The second award is from the Alaska Renewable Energy Fund to complete phase 3 planning objectives for installation of wood boiler district hating system in Fort Yukon. Funds from these awards will be managed and assigned directly to Alaska Wood Energy Associates. See attached assignment by GZ Corp. B. PROJECT OBJECTIVES   The purpose of the AEA funding award is to support the preconstruction tasks as  defined by Alaska Energy Authority for installation of wood boilers at the CATG  clinic, the Vocational Education complex, if warranted, and a district heating system  for downtown Fort Yukon as part of the development of a for profit wood energy  utility in Fort Yukon.  The purpose of the Denali Commission award was to purchase  harvest equipment to support biomass harvest and delivery into the village.   Two  reports have been prepared on specific equipment to purchase and a workshop will  be held in June 2009 in Anchorage to discuss the final equipment list to be  purchased for the GZ Wood Utility.  If equipment can be purchased and delivered,  harvesting will begin late summer of 2009.    C.  Matching Funds   The awards that match AEA and Denali funds include  $210,000 from DOE Tribal  Energy Program, of a $1.2 million award that is divided into two Phases  preconstruction and construction.  The school district is donating a 30x40 foot 10”  slab frame garage type building that will be used to house the district heating boiler  and biomass storage.  A minimum value of $240,000 has been placed on the  building, and an appraisal will be conducted to figure actual match value.  Gwitchyaa  Zhee Corporation will be putting up $165,600 in cash for equipment and project  support, AVI through DOE funding is providing $82,500 in match to support  development of a GIS based forest inventory, a five year harvest plan, travel funds,  and business board training for GZ Corporation Board.  The Denali funds require a  50% match of which 25% must be local.  Total matching funds for the Denali  Commission funds are approximately $933,000 of which $430,000 is local cash or  in‐kind match.  This is over the 25% local match required for the $808,805  committed by the Denali Commission.     D. TASKS TO BE PERFORMED in Phase III Final Design and Permitting    • Project Initiation and Dynamic Planning – A workshop is planned in Fort  Yukon to conduct a dynamic planning facilitated workshop for CATG,  Gwitchyaa Zhee Corporation, Fort Yukon City Council, Gwitchyaa Zhee Tribal  Council, Yukon Flats School District, and the University of Alaska.  The  purpose of the workshop is to bring all the major organizations in the village  up to speed on status of the project and to develop a dynamic plan for  implementing a new wood energy utility as well as installing all aspects of  the project.  Focus will be on Phase III implementation.   Completed April 21,  2009.  Project flow outline is attached.    • Boiler Schematic Design & Oversight  An initial level 2 feasibility study  was conducted by Efour Engineering to determine a conceptual design and  feasibility for district heating and heating of key other commercial buildings.   This feasibility determined that chip systems were the best all round  approach.  The next step is to develop a specific schematic design by a district  heating engineering specialist and develop specific parameters for a final  engineered design build construction bid process. Funds from both DOE and  AEA will be used to complete this task.  To be completed by October 31,  2009.    • Final Design – Final design will be a design build document that will  complete the design phase.  This will be the plan that the three planned  heating systems will be built from including the CATG Clinic, the downtown  district heat system and boilers for the Vo Tech Campus.  An Alaskan based  engineering firm with rural Alaska design and build experience will be  selected.  Funds from both DOE and AEA will be used to complete this task.   To be completed (TBC) by January 31, 2010.    • Boiler Permitting – Boiler permitting at the midscale 2‐8 mBTU/h has  essentially not been done in rural interior Alaska.  An experienced biomass  boiler engineer will complete the process in conjunction with the State of  Alaska.  Funds from AEA will be used to complete this task.  TBC by April,  2010.    • Landowner Agreements and Donations – The project is anticipating the  donation of land from GZ Corporation for a wood yard, a building and land  from the Fort Yukon School District and an old quanson hut for a shop and  wood chip storage from the federal government.  Siting of boilers on various  ownerships and piping will require easements.  This task will negotiate,  create and finalize all necessary agreements.  Funds from AEA will be used to  complete this task.  TBC by December 31, 2009.    • Environmental Analysis – Both AEA and DOE require a complete analysis  on the potential positive and negative environmental impacts.  An analysis  following the NEPA EA process will be prepared on boiler installations and a  general analysis on forest management impacts. Funds from AEA will be used  to complete this task.  TBC by December 31, 2009.    • Power Sales Agreements – Each heating customer in the heating district  will require a BTU purchase agreement from the newly formed heat utility.    Under this task, we will develop a purchase price for BTUs that reflect the  cost of production plus operations, maintenance, and profit.  Long‐term  agreements will be developed probably tied to the cost of fuel oil with  escalation and reductions clauses. Funds from AEA will be used to complete  this task.  TBC by January 31, 2010.     • Project Management, Reporting and Technical Support  Project  manager will coordinate the entire project among the various organizations  and contractors.  He will be responsible for report writing to AEA and DOE  Tribal Energy.  Contractor will also give technical support on the  development of a forestry program at CATG as well as support the initiation  of the Wood Energy Utility under GZ Corporation.  DOE, AEA, GZ and Denali  will fund this task.  TBC by end of grant period.    • Travel – Travel will support project manager and specific consultants travel  to and from Fort Yukon and other destinations as needed.  Funds will also  support travel of CATG personnel and project manager to DOE Tribal Energy  Program Annual Workshop. TBC by end of grant period.    • Purchase and Delivery of Harvest Equipment – The complete list of  equipment will be finalized at a workshop on boilers and harvest systems to  be held in Anchorage on June 15‐16.  Initial orders will be made immediately  with a delivery of July 31, 2009 complete compliment of all equipment to be  delivered on the first barge of summer 2010.    • Develop GIS Forest Inventory and Forest Management Plan ‐‐ Alaska  DNR Forestry will develop a GIS inventory by December 31, 2009.  A five‐ year harvest plan will be completed by May 15, 2010 and will be developed  by Peter Olsen of AWEA.    • Wood Yard, Wood Storage, and Haul Road Development – Wood Yard  development will start with the delivery of the initial portion of the harvest  equipment scheduled for the first of August 2009.   Wood haul road  development and improvement will be initiated also with the delivery of the  harvest equipment.   A place for dry wood storage is in process of donation  and will be secured by the end of summer 2009.   Some renovations to the  building will be required.  Alaska Energy Authority ‐ Renewable Energy Fund RFA AEA09-004 Budget Form BUDGET INFORMATION Phase III 2009Gwithyaa Zhee Wood U?llity BUDGET SUMMARY: Milestone or Task CATG ‐ DOE  Federal  Funds GZ ‐ State  Funds GZ ‐ Local  Match  Funds  (Cash) GZ/Local  Match Funds  (In‐Kind) DOE ‐ AVI  Match Funds GZ‐ Denali FundsTOTALS Project IniNaNon & Dynamic Planning $0 $7,500 $5,000 $12,500 GZ Board Business Training for Wood UNlity $7,500 $7,500 Develop GIS Forest Inventory and Forest Management Plan $50,000 $50,000 SchemaNc Design & Oversight District Heat and boilers $40,000 $30,000 $5,000 $75,000 Final Design Boilers installaNon and construcNon $40,000 $100,000 $10,000 $150,000  Permi_ng Process Boilers $0 $20,000 $20,000  Land ownership agreements and donaNons $0 $5,000 $7,000 $240,000 $252,000 Environmental Analsysis Boilers $0 $15,000 $5,000 $0 $20,000 Power Sales Agreements $0 $5,000 $7,000 $5,000 $17,000 Project management, reporNng & Technical Suport $35,000 $35,000 $5,000 $75,000 $150,000   Travel $25,700 $20,000 $45,700   Wood Yard, Wood Storage, Haul Rd. Development $15,000 $20,000 $35,000   Equipment purchase & delivery $90,000 $660,275 $750,275 $0 Total Direct $140,700 $210,000 $144,000 $265,000 $735,275 $1,494,975   Indirect CATG 49.3% / AWEA 15%/AWEA 10%$69,365 $21,600 $73,528 $164,493   Totals $210,065 $210,000 $165,600 $265,000 $82,500 $808,803 $1,741,968 Hire professional business planner/ resource Business Model Bill Signed aggreements Write business plan Draft operating model Profitable professional model in place 06/01/09 Project Start Find potential matches Financing Ben Complete total budget project Develop political funding strategy Update agencies Start foundation search Funding agreements in place Develop funding/ report method Funding in place for success 01/20/10 Complete environmental assessment Boiler Sytem Design Bill Final construction design Obtain needed permits Design/build bidding process Robust workable system design 10/01/09 EQ IP contract in place - jump start HV Wood Harveting Processing Jerry Put specs out to bid Develop training program Sect & purchase equipment07/01/09 Design wood yard Delivery 1 equipment Harvest/ processing/ wood handling operational Identifying audiences Marketing Gary Develop win/win presentations Support local & outside 07/31/09 07/31/09 08/30/09 Project Completed Purpose: To create a sustainable community Ft. Yukon Wood Energy Project Define staffing needs Forest Management Laurie Recruit & hire staff 1-year forest plan Reforest'n activities/plan Monitor 1st harvest Sustainable forest 07/01/1001/01/10 Goal •By Fall 2010 GZ corporation is a renewable energy producing profitable business reducing energy cost by utilizing our local natural resources while enhancing our local economy. Overarching Policy •This project will be designed to enhance and expand use of local resources •Maximize local hire •Sustainable community development •Sustainable natural resources utilization •We will invest in training local resources (building capacity) •We maximize import substitution with locally produced goods and services •We operate in a professional manner with exceptional customer service •We operate at a reasonable profit for maximum community benefit www.professionalgrowthsystems.com Task Key = Connection Point Date tasks need to be completed Version 1.0, 04/29/09 Draft needed agreements Conduct G-Z Board training Board feedback & approval Define overall funding strategy Follow up Follow up Follow up Regulations/ policies GIS inventory Agreement between G Z & CATG Develop a 5-year HV plan & policy Train staff Update plans Develop marketing strategy Develop local/ external team Execute strategy local & external Contract for clearing opportunities Conduct chip workshop Write HV equipment specs Get site agreements Develop wood yard Recruit & hire staff Train crew Haul-road development Develop fire MITIG plan/roads for clearing opportunities Conduct chip Start harvesting program Equipment contract implementation Clearing or get cut wood Complete siting & agreements Complete conceptual design boilers Develop maintenance system design Identify boiler operators Project out for bid Design boiler system training Boiler System Construction Bill Get agreements in place Order boiler equipment New wood energy up & operating 09/15/10 Select contractor(s) Identify boiler operators Arrange shipping Site prep & control Install piping & connect buildings Assemble boiler system Commission system Plan/Strategy •Hire experts to assist where needed •Community collaborative approach •Recognize and develop local resources •Having formalized agreements •Leveraging funding opportunities Execution See Dynamic Plan Ideal Future/Vision • Sustainable community • More economic growth • People are not leaving our communities • Increase in wildlife as a result of habitat enhancement • More people working • Healthier people • Working partnerships between organizations (synergy) to maximize the value to our community with minimal cost •Optimized community engagement and ownership Performance Measures • Diesel consumption • $ kept in the community • Number of jobs • Corporate profit • Staff capacity development in GZ and CATG • Customer savings on heat Customer/Client Value Proposition • Heat provided to our customers at a slightly reduced cost compared to diesel fuel • Keeps $ local instead of sending $ out for imported fuel • Builds stronger a GZ and CATG • All service providers have more $ to spend on services • More subsistence opportunities • Reduced forest fire hazards DRAFT v1.0.0