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HomeMy WebLinkAboutKenny Lake School Alternative Energy Grant Proposal - Feb 2008 - REF Grant 2195302Kenny Lake School, Copper River School District Garn Cordwood fired Boiler Alternative Energy Grant Proposal Preconstruction Application Prepared by Heidi Veach Forestry Administrative Specialist Cooperative Extension Service, Univ. of AK, Fairbanks For Dr. James Elliott, Superintendent Copper River School District Date: February 11, 2008 Application prepared by: Heidi Veach . r rh Project Description: The Kenny Lake School would like to build a building to enclose 3 (three) Garn WHS 3200 cordwood boiler and one weeks worth of wood. A building 32' by 20' on a concrete pad would house the boilers while the wood could be on a gravel pad of 24' by 16'. These boilers could completely replace — 20,000 gallons/year at a savings of $28,000. We are asking for a planning and engineering feasibility report, preliminary engineering up to 65% design work and identification of license and permit needs. We will utilizes these funds to fund engineer field work, surveying, geo investigation, site control, public meetings, and research efforts. Application Information A. Organization Name: Copper River School District B. Mailing Address: PO Box 108 Glennallen, AK 99588 C. Telephone Number: 907-822-3235 D. Fax Number: 907-822- 3949 E. Dun & Bradstreet Number: 08-993-7700 2. Copy of Utility Certificate of Public Convenience and Necessity Attached? No. 3. Individual Person representing Applicant (must be authorized by Resolution, see Item 4 below) Name (authorized person): Tim Hand Title: Maintenance Mechanic 11 Mailing address: SAME E-Mail address: thand@crsd.kl2.ak.us Telephone Number: 907-822-3234 Fax Number: 907-822-3949 4. Resolution of governing body is enclosed? Yes Note: Resolution must respond to all items 4A, 4B and 4C. A. Authorizes this application for project funding? B. Authorizes the individual named in 3 above to represent the applicant for purposes of this application? Yes C. States that the application is in good standing with respect to its existing credit and federal tax obligations? Yes 5. Application Eligibility by Project Type. A. Project intended to produce electricity? No Certified electric utility? NO Independent power producer? No B. Project intended to produce thermal energy or fuel? Yes Will the thermal energy or fuel supply one or more public facilities? Yes Will the thermal energy or fuel supply a certificated electric utility? No Will the thermal energy or fuel supply multiple end -users other than the applicant or its affiliates? No Is the applicant a formally organized public, private or non-profit entity? Yes C. Project will substitute the use of local sources of coal or natural gas for diesel fuel in applications serving populations of 10,000 or less? No Is the applicant a formally organized public, private or non-profit entity? NIA. 6. Eligibility for Project A. Project will serve rural Alaska? No. B. Would the project under consideration produce electrical or thermal energy from resources other than fossil fuels, including wind, solar, geothermal, biomass, or water resources? Yes Would the project under consideration produce fuel predominantly from feedstock other than fossil fuels? Yes. Would the project under consideration substitute the use of local sources of coal or natural gas for diesel fuel in applications serving populations of 10,000 or less? No. 7A (i). Statement of any State or federal grant or loan funds already committed to the project. -$a- 7A(ii). Sustainability. Applicant/operator technical capability documentation included? Yes Applicant financial capability documentation included? Yes Applicant management capability documentation included? Yes Applicant O&M Plan documentation included? Applicant Business Plan documentation included? Alternate supporting sustainability documentation? Yes 7A(iii). State the extent to which the project technology can be applied elsewhere in Alaska. The use of a cordwood boiler is applicable to many regions of Alaska. Numerous agencies, such as AK DNR, BLM, and NPS, have firewood permit systems. Many Tribal organizations' also have permit systems. The Copper River Valley has all of these entities plus 1 commercial sawmill and a number of private landowners willing to sell firewood. The State of Alaska has 70 working sawmills which produce sawdust and woodchips but are concentrated in Southeast Alaska, Fairbanks and Anchorage. The Kenny Lake School is located 240 miles southeast of Fairbanks and 225 miles east of Anchorage so could not utilize these resources. Most of the Fuels for Schools projects in the lower 48 states utilize bulk fuel boiler systems which would not be feasible in South Central, Western or the Interior of Alaska. The Kenny Lake School Project would be a demonstration project on the road system that other interested individuals could come and see. It would demonstrate the cooperation of a school district, local agencies and private individuals and businesses to help reduce a schools fuel bills and produce local jobs. This would also help build a local market for small diameter, spruce beetle lolled trees. The local sawmill has stated they could commit to supply the bulk of the fuel but would need help from individuals to supply the whole amount. 7B. Business history of private applicant attached? No. 7C. Preconstruction cost estimate and breakdown attached? (i) Project narrative attached? Yes (ii) Project map and land ownership information attached? Yes (iii) Preliminary capital cost estimate and conceptual design attached? Yes (iv) Narrative on environmental issues attached? No none issues (v) Comparison of project cost and savings attached? Yes Project Narrative: The Copper River School District (CRSD) pfbposes to install three High Efficiency Low Emission (ISLE) Cordwood Boilers. These boilers would replace 20,000 gallons/year of fuel oil burning 235 cords of wood with a cost savings of $28,000. There are four companies that manufacture HELE units. In Alaska, there are numerous Tam residential units in operation and one Garr boiler in Dot Lake and two recently installed in Tanana. CRSD proposes to build a 20' by 32' building on a concrete pad to house the boilers and a 16' by 24' building on a gravel pad to store wood. New pipe will be laid to connect the wood fired boiler to the existing hydronic heating system at Kenny Lake School. The estimated required boiler capacity (RBC) to heat the Kenny Lake School is 690,400 Btu/hr during the coldest 24-hour period. A single 950,000 Btu/hr HELE cordwood boiler operated at maximum capacity could supply 100% of the RBD required. Installing three GARN VHS 3200 boilers would require fewer firings of the boilers. This firing schedule would allow current custodial workers to perform these duties'during regular working hours and rely on the oil fired boilers for only 7 hours each night. It is estimated a total of 218 hours of daily labor is required to fire the boilers if run for 210 days 24 hours/day. Periodic Labor is estimated to be three hours/week for boiler inspection, cleaning and fuel management. Annual labor for three boilers is estimated to be 60 hours for maintenance and/or repairs. Preliminary Capital Cost Estimate Kenny Lake School Copper River School District Feb. 8, 2008 Item Cost/item Quantity Total Cost Garn VHS 3200 $33,000 3 $99,000 Fuel Storage Building $7,680 (gravel pad, $20/sf) 24' x 16' 1 $ 7,680 Boiler building $64,000 (concrete pad, $100/sf)32' x 20' 1 $64 000 Plumbing/connections $36,276 Installation $18,000 Subtotal -- ME Costs $224,956 Contingency (251/6) $ 56,239 Grand Total $281,195 Comparison of Project Costs and Savings Fuel Oil 20,000 gal/yr x $3/gal $60,O00 Cordwood 235 cords/yr x $135/cord $31,725 Gross Annual Fuel Cost Savings $28,275 Annual non -fuel OM&R Costs $ 5,360 Net Annual Fuel Cost Savings $19,915 Copper River School District M Chistochina Copper Center Gakona Glennallen Kenny Lake Slana Office of the Superintendent P.O. Box 108 GIennallen, AK 99588 (907) 822-3234 ext. 223 (907) 822-3949 fax Copper River School District Resolution #08-04 Alaska Alternative Energy Project WHEREAS, the Copper River School District has completed a preliminary feasibility assessment for high efficiency, low emission wood heating for Kenny Lake School; and WHEREAS, said feasibility assessment affirms the economic viability of a single Garr VMS 4400 wood -fired boiler as an alternative to Kenny Lake School's existing oil -fired boiler system; and WHEREAS, the Copper River School District is in good standing with respect to its existing credit and federal tax obligations; NOW, THEREFORE, BE IT RESOLVED, that the Copper River School District authorizes: (1) Heidi Veach, Forestry Administrative Specialist for University of Alaska Fairbanks Cooperative Extension Service, to submit an application to the Alaska Energy Authority on its behalf for an alternative energy project at Kenny Lake School; and, further authorizes (2) Tim Hand, Maintenance Mechanic II, P.O. Box 108, Glennallen, Alaska 99588, phone (907) 822-3234, fax (907) 822-3949, email thand@crsd.kl2.ak.us to represent the Copper River School District for purposes of this application. Adopted this 5`" day of February 2008. M. Beth Betts, President Copper River School District Board of Education Capper River School District Chistodina Office of the Superintendent Copper Center P.O. Box 108 Gakona Glennallen, AK 99588 Glennallen (947) 822-3234 ext. 223 Kenny Lake (947) 822-3949 fax Slana rR 1r � February 8, 2008 Heidi Veach. Forestry Project Specialist Cooperative Extension Service University of Alaska — Fairbanks Glennallen Project Office PO Box 454 Glennallen, AK 99588 The Copper River School District (CRSD) is one of 21 regional educational attendance areas (REAAs) created by the Alaska Legislature in 1975 to operate public schools in the AIaska Unorganized Borough. Since 1976, the first year of operation for REAAs, like CRSD, the school district, by Alaska statute, has been required to submit to the Alaska Department of Education an annual, independent audit by a certified public accounting firm. During the last five fiscal years, the tenure of the present school superintendent, CRSD has received clean, unqualified opinions from its auditors regarding its fiscal management and operations. Those public audits also, included audits of CRSD's capital projects, namely Kenny Lake Elementary School Addition ($4,071,274), Glennallen Elementary School Roofing Study ($119,000), Glennallen High School Upgrade ($1,677,576), Kenny Lake School Upgrade ($1,156,378), and Glennallen Elementary School Addition ($12,794,481). The Glennallen Elementary School project is scheduled to be completed by the end. of March 2008. This project is on -schedule and within budget. The CRSD has completed all other capital projects listed. They were all on -schedule and within budget. Contact me if you need additional information concerning the RFP for Alternative Energy. Sincerely, Loreen Kramer Business Manager | !| CR|�I� Lake School 14---mRichardson Hwy, ToXtWcott / ' Ulde League field. "all Gmn;3 Community [—lib"ry--_l | ����_----- ` /-----------------------------�---------- � , / . / ` ' / / /| | . . . . ' . . . . . . . . . . .^ .� . . nes=�m, . . ����=� . . - . ' ---------� d'' . F—Appzax-1-3 . 07-� xm w Preliminary Feasibility Assessment for High Efficiency, Low Emission Wood Heating In Copper Center and Kenny Lake, Alaska Prepared for: James Elliott, PhD., Superintendent Copper River School District Glennallen, Alaska Prepared by: Daniel. Parrent, Wood Utilization Specialist Juneau Economic Development Council Notice This Preliminary Feasibility Assessment for High Efficiency, Low Emission Wood Heating was prepared by Daniel Parrent, Wood Utilization Specialist, Juneau Economic Development Council for James Elliott, PhD, Superintendent, Copper River School District. This report does not necessarily represent the views of the Juneau Economic Development Council (JEDC). JEDC, its Board, employees, contractors, and subcontractors make no warranty, express or implied, and assume no legal liability for the information in this report, nor does any party represent that the use of this information will not infringe upon privately owned rights. This report has not been approved or disapproved by JFDC nor has JFDC passed upon the accuracy or adequacy of the information in this report. Funding for this report was provided by USDA Forest Service, Alaska Region, Office of State and Private Forestry Key words: HELE, LEHE, bulk fuel, cordwood ABSTRACT The potential for heating the school facilities at Copper Center and Denny Lake with high efficiency, low emission (HELE) wood boilers is evaluated for the Copper River School District (CRSD). Early in 2006, organizations were invited to submit a Statement of Interest (SOI) to the Alaska Wood Energy Development Task Group (AWEDTG). Task Group members reviewed all the SOIs and selected projects for further review based on the selection criteria presented in Appendix A. AWEDTG representatives visited Copper Center and Kenny Lake during the summer of 2006 and information was obtained for each facility. Preliminary assessments were made and challenges identified. Potential wood energy systems were considered for each project using AWEDTG, USDA and AEA objectives for energy efficiency and emissions. Preliminary recommendations are made for each facility. SECTION 1. EXECUTIVE SUMMARY 1.1 Goals and Objectives • Identify CRSD school facilities in Copper Center and Kenny Lake as potential candidates for heating with wood • Evaluate the suitability of the facility(s) and site(s) for siting a wood -fired boiler • Assess the type(s) and availability of wood fuels • Size and estimate the capital costs of suitable wood -fired system(s) • Estimate the annual operation and maintenance costs of a wood -fired system • Estimate the potential economic benefits from installing a wood -fired heating system 1.2 Evaluation Criteria, Project Scale, Operating Parameters, General Observations • All projects meet the AWEDTG objectives for petroleum fuel displacement, use of hazardous forest fuels or forest treatment residues, sustainability of the wood supply, project implementation, operation and maintenance, and community support • Wood -feed systems are not feasible for very small applications. These may be satisfied with domestic wood appliances, such as wood stoves or pellet stoves/furnaces • Facilities consuming less than 2,000 gallons per year represent minimal savings with wood -Bred systems unless such systems can be enclosed in an existing structure, and wood and labor are very low cost or free • MarginaI economic metrics (such as those associated with small installations) can be improved with low-cost buildings and piping systems • Medium and large energy consumers have the best potential for feasibly implementing a wood energy system and deserve detailed engineering analysis • Efficiency and emissions standards for Outdoor Wood Boilers (OWB) changed in October 2006, which could increase costs for small systems n 1.3 Assessment Summary and Recommended Actions 1.3.1 Copper Center School - Overview. The Copper Center School was built in 1985 and provides instruction for students in grades K through 6. The facility consists of one main building and two small satellite classrooms immediately adjacent to the main building. All facilities appeared to be well -maintained and in good condition. In the main building heat is provided by a pair of Weil -McLain hot air furnaces (located in a mechanical room in the mezzanine above the first floor) capable of delivering a maximum of 526,000 Btu/hr (net, combined). Each of the satellite buildings has -a small hot air furnace rated at about 112,000 Btu/hr (net). None of the buildings has a hydronic heating system. The topography around the school is gentle, presenting no readily apparent physical impediments to an external boiler installation. There are several potential sites for a wood - fueled boiler within reasonable distances to the school buildings. • Fuel consum tion. Altogether, the reported total fuel consumption estimate is 6,000 gallons of fuel oil per year. - Potential savings. At $2.90 per gallon and 6,000 gallons of fuel oil per year, CRSD pays $17,400 per year for fuel oil. The high -efficiency, low -emission (HELE) fuel equivalent of 6,000 gallons of fuel oil is about 60 cords, and at $100/cord represents a potential gross annual fuel cost savings of about $11,400. • Required boiler capacity. The estimated required boiler capacity (RBC) to heat the Copper Center School is 207,500 Btu/hr during the coldest 24-hour period. it would appear that a single HELE cordwood boiler could supply 100% of that RBC with a margin similar to that of oil and/or gas fired furnaces or boilers. • Recommended action regarding a bulk fuel woods stem. Due to its small heating demand, a "bulk fuel" system is not feasible for the CRSD Copper Center School. Recommended action regarding a cordwood system. Two hypothetical boiler installations were compared: one medium boiler (Garn WHS 2000, rated at 425,000 Btulhr) and one large boiler (Garn VMS 3200, rated at 950,000 Btu/hr). Under the stated assumptions and estimated costs, neither option was cost-effective; net present value was still negative at 20 years and internal rates of return, while positive, were low at approximately 0.5% and 1% respectively. However, this is a preliminary assessment; fuel oil prices are not static and annual savings are therefore likely to increase. Closer scrutiny by a professional engineer is warranted. 1.3.2 Kenny Lake School - Overview. The Kenny Lake School (slab on grade construction) underwent extensive remodeling in 2006 and provides K through 12 instruction for 135 students. The facility consists of one large main building and several utility "outbuildings". The community library is also located nearby. Heat is provided by two oil -fired Burnham boilers rated at 1.87 million Btu/hr (net, each), located in a single mechanical room at the rear of the main building. Heat is delivered via a hydronic heating system, with some supplemental hot air. The topography around the school is gentle, presenting no apparent physical impediments to an external boiler installation, There are two potential sites for a wood -fueled boiler within reasonable distances to the school buildings. • Fuel Consumption, The Kenny Lake School can be considered a relatively large energy consumer, given a reported annual fuel consumption estimate of 20,000 gallons of fuel oil. • Potential Savings. At $2.90 per gallon and 20,000 gallons of fuel oil per year, the school pays $58,000 per year for fuel oil. The HELE cordwood fuel equivalent of 20,000 gallons of fuel oil is 200 cords, and at $100/cord represents a potential gross annual fuel cost savings of $38,000. • Required boiler capacity. The estimated required boiler capacity (RBC) to heat the Kenny Lake School is 690,400 Btu/hr during the coldest 24-hour period. A single 950,000 Btulhr BELE cordwood boiler operated'at maximum capacity could, theoretically, supply 100% of that RBC and provide a significant annual economic benefit. • Recommended action regarding a bulk fuel wood system. A "bulk fuel" system is not financially feasible for the Kenny Lake School, given the likely cost and projected savings. • Recommended action regarding a cordwood system, , s� tem, The financial metrics of installing a single large BELE cordwood boiler are strongly positive, with a simple payback period under 6 years. Net present value becomes positive at year 10 and the internal rate of return at 20 years is 1.0.63%. The financial metrics of installing two large BELE cordwood boilers was also considered for reasons of practicality. Under this scenario, the simple payback period is about 8 years. Net present value becomes positive at year 14, and the internal rate of return. at 20 years is - 6.64% Further Design and Engineering for a BELE cordwood system for the Kenny Lake School is warranted. SECTION 2. EVALUATION CRITERIA, IMPLEMENTATION, WOOD HEATING ,SYSTEMS The approach being taken by the Alaska Wood Energy Development Task Group (AWEDTG) regarding biomass energy beating projects follows the recommendations of the Biomass Energy Resource Center (BERG), which advises that, "[TJhe most cost-effective approach to studying the feasibility for a biomass energy project is to approach the study in stages." Further, BERC advises "not spending too much time, effort, or money on a full feasibility study before discovering whether the potential project makes basic economic sense" and suggests, "[gndertaking a pre feasibility study... a basic assessment, not yet at the engineering level, to determine the projects apparent cost-effectiveness". Biomass Energy Resource Center, Montpelier, Vermont. www.biomasscenter.ora 2.1. Evaluation Criteria The AWEDTG selected projects for evaluation based on the criteria listed in Appendix A. Both of the Copper River School District projects meet the AWEDTG criteria for potential petroleum fuel displacement, use of forest residues for public benefit, use of local residues (though limited), sustainability of the wood supply, project implementation, operation and maintenance, and community support. C Alaskan HeatTechnologies Heidi Veach Cooperative Extension Service University of Alaska - Fairbanks Forestry Administrative Specialist Glennallen Project Office PO Box 454 Glennallen, AK 99588 Re: Kenny Lake School: Dear Heidi; The table below is an estimate of the primary component costs to use GARN wood fired hydronic heating systems to provide heat for Kenny Lake School. The initial data used to select these components was based on the report done by Dan Parrent of the Juneau Economic Development Council. Alaskan Heat Technologies Inc. takes no responsibility for the accuracy of this data; however, we believe it to be correct. Product Code Product Name Count Price Total WHS-3200 GARN WHS3200 3 $33,000.00 $99,000.00 WHS3200-VF18 18' flue kit 2 $2,304.00 $4,608.00 WH52000-CH 2O00 chem treatment and filter 2 $557.00 $1,114.00 Flat Plate HX Flat Plate HX 1 $15,000.00 $15,000.00 GL-30, TD-GL, 2 10K sensors Goldline differential temp control 2 $220.00 $440.00 100' Microflex 3" Single run x 2 1 $6,585.80 $6,585.80 MJ3415450/4.6 NPT-PEX NPT-PEX connectors 8 $221.00 $1,768.00 Pump start controller Pump start controler 2 $1,000.00 $2,000.00 High Volume Pump Grundfos 2 $2,000.00 $4,000.00 Pump Flange PumpFlange 4 $190.00 $760.00 Total $135,275.80 P.Q. Box 2275 • I]nt Lntcpr AK 04737 •`AMMAT•AlaciraniTRatTP(-hnnlnuiPc_rnm • C)n7-882-2000 Alaskan HeatTechnologies inc. 6 This is only an estimate. It does not include header piping, valves, temperature gages etc. as this is a function of building design. I will be happy to provide detailed and accurate pricing when the necessary design and engineering is complete. If I can he of any assistance regarding this project please contact me. Sincerely, David K. Frederick F.O. Box 2275 • Dot Lalte, AK 99737 - www=AlaskanueatTechn.^,l og.es.coiit 9v7-88.-....