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Hoonah Biomass 2017
Alaska Energy Authority Grant Agreement c- =ENERGY AUTHORITY Grant Agreement Number CFDA Number Amount of Funds:AEA use only7081161NA$45,000 Managed |?Pass-thruigProjectCode(s)Proposal Number:Period of Performance: 402133 RE81161 From:July 1,2015 To:June 30,2017 Project Title: Hoonah Biomass District Heating LoopGrantee Grantor Name Alaska Energy AuthorityHoonahIndianAssociation Street/PO Box Street/PO Box P.O,Box 602 813 W.Northern Lights BlvdClty/State/Zip City/State/Zip Hoonah,AK 99829 Anchorage,AK 99503 Contact Person Contact Person Robert Starbard Karl Reiche,Project Manager Phone:Fax:E-mail:Phone:Fax:E-mail:907-945-3703 4 907-945-3703 |rstarbard@hlatribe.org 907-771-3017 |907-771-3044 kreiche@aidea.org AGREEMENT The Alaska Energy Authority (hereinafter 'Authority')and Hoonah Indian Association (hereinafter 'Grantee'),agree as set forth herein. Section |.The Authority shall grant funds to pay for expenses incurred by the Grantee under the terms and conditions of this Agreement,in an amount not to exceed $45,000,unless the grant amount is amended as provided herein. Section ll.The Grantee shalt apply the grant funds to the Project and perform all of the work and other obligations required by this Agreement. Section Ill.Performance under this agreement begins July 1,2015 and shall be completed no later thanJune30,2016. Section IV.The agreement consists of this page and the following: Appendices Attachments/Forms Appendix A:General Provisions Attachment 1:Financial Report/Request forAppendixB:Standard Provisions "Reimbursement Form Appendix C:Grantee Proposal/Scope of Attachment 2:Progress Report FormWorkAttachment3:Notice of Project CloseoutAppendixD:Project Management &Attachment 4:Grantee Certification 'Reporting Requirements Attachment 5:Waiver of Sovereign ImmunityAppendixE:Project Budget & Reimbursement Provisions AMENDMENTS:Any amendments to this Agreement must be signed by authorized representatives of Grantee and the Authority and should be listed here. Authority Executive Director orGranteeProjectManager-.DesigneeSignatureDateSoeDateignatur DateALLRED41419016rl(Cosids 2-2-6 bailRobertStarbard,Karl Reiche,Sara Fisher-Goad, Tribal Administrator Project Manager AEA Executive Director Hoonah Biomass District Heating Loop Grant Agreement #7081161 Table of Contents Grant No.7081161 AGREEMENT..va csesssssesovsansacees 1 APPENDIX A GENERAL PROVISIONS 4 1.DEFINITIONS .saeaceecenassnensenanaceaess 4 2.AUTHORITY SAVED HARMLESS 4 3.WORKERS'COMPENSATION INSURANCE 4 4,INSURANCE stesecsaseccsasososseassosscsasanssosesenssorstbevesessenearesesssersacceseeseaceatsrenses 4 5.EQUAL EMPLOYMENT OPPORTUNITY (EEO).......5 6.PUBLIC PURPOSES ....44:5 7.OFFICIALS NOT TO BENEFIT ..,5 8.GOVERNING LAW "5 9.COMPLIANCE WITH APPLICABLE LAW AND FUNDING SOURCE REQUIREMENTS 5 10.SEVERABILITY 5 11,NON-WAIVER ..6 12,INTEGRATION ......ccssccssssssceccersocorssssssavensececsecsessseustassacesonsatssestrsssees 6 13.GRANTEE NOT AGENT OF AUTHORITY 6 14.DISPUTES 6 15,TERMINATION "6 16.TERMINATION DUE TO LACK OF FUNDING 7 17.NO ASSIGNMENT OR DELEGATION sees? 18.No THIRD PARTY BENEFICIARIES 7 19.No ADDITIONAL WORK OR MATERIAL 7 20.CHANGES 18 21.RIGHTTOWITHHOLD FUNDS ...8 22,REMISSION OF UNEXPENDED FUNDS...8 23.TAX COMPLIANCE RESPONSIBILITIES OF GRANTEE 8g 24.LOBBYING ACTIVITIES 8 25.FINANCIAL MANAGEMENT AND ACCOUNTING 8 26.PROCUREMENT STANDARDS 8 27.REPORTING REQUIREMENTS .cscssssccscosscessecersscenscacsedsstarcucocscesssacsnvaesseserssseecenssascessonenronesscsepnsaacacsessseessnssevens 8 28.OWNERSHIP OF DOCUMENTS AND PRODUCTS ...scsccssssasssscsorsscssnsssenssaceossensscorsssecanserscsaasessensessasecentonessseaeveones 9 29.INSPECTIONS AND RETENTION OF RECORDS 9 30.AUDITS on) 31.LEGAL AUTHORITY ...scssssscsnscssnnccsersscssssscsssnssssssscssncsscooevssssessessnsassssssonerasareresessocersnssasscsscssoseeasaussccesegnuscesecees 9 32.GRANT CLOSE OUT.9 APPENDIX B STANDARD PROVISIONS 10 L.GRANT FUNDING SOURCES......cccsccscsccocsesscsessscsssscsssssenceccscecsaeesenseeronsscossaccnsssseeesstsceses seasssasessesscsenaacuagas sagen 10 2.GOVERNING LAWS 10 3.ELIGIBLE COSTS Lavasasseesoeensscserencncnnessencenesscaceosarsedssteessssuraceasenseossacescesseuacsassssscacnessesers 10 4.INSURANCE REQUIREMENTS daesateaceateneeeossansnnaaevsceoess 10 5.SOVEREIGN IMMUNITY eussecenncocssccscceacsonssscseestenaseacsactacenesovesevacensenussseazesses 11 6.PROCUREMENT AND SUSPENSION AND DEBARMENT....ccccccesccccscessscscsssssensoserssseosseensoscesssessrsecersessueascseeseeses 11 APPENDIX B1 STANDARD PROVISIONS FOR GENERAL DESIGN 12 1.DECLARATION OF PUBLIC BENEFIT ....ccccoscscosssssssessessssescesssecsessvvesrevoessennavscesesossatecacsasssscorestsasesocessarencsseeece 12 2.CONTRACTS FOR ENGINEERING SERVICES .....-..sccscsssceocsccossenssoseocesssessasnnssaterevecesscessesssaccesensesesscsersecestsaoes 12 3.SITE CONTROL .....-0ccsssscsscsecscncesccsossssssssscsecsenerescesonsacsancensseesecsrsenerasnasenensscerssensseneen 12 4.PERMITS ":.12 5.EXCLUSION OF EXISTING ENVIRONMENTAL HAZARDS 12 Page 2 of 29 Hoonah Biomass District Heating Loop Grant Agreement #7081161 6.ENVIRONMENTAL STANDARDS deena 7.TARIFFS &RATES FOR USE OF GRANT-FUNDED ASSETS 8.GRANT-FUNDED ASSETS NOT INCLUDED WITH PCE........cscsssssesscscsesssatsscnsececsesactscesecacossteaeens APPENDIX C GRANTEE PROPOSAL/SCOPE OF WORK APPENDIX D PROJECT MANAGEMENT &REPORTING REQUIREMENTS 1.PROJECT MANAGEMENT, 2.CONTACT PERSONS 3.MONTHLY PROGRESS AND FINANCIAL REPORTS 4,DOCUMENTATION AND RECORD KEEPING APPENDIX E PROJECT BUDGET &REIMBURSEMENT PROVISIONS I,ALLOWABLE COSTS Direct Labor &Benefits Travel,Meals,or Per Diem Contractual services saeneseaceansensars Construction ServiceS....cccscssecerssesesens RASAP&AwmS&Other Direct Costs ...ccccsssccssesstentssesee SPECIFIC EXPENDITURES NOT ALLOWED MATCH seveeeeCosTSHAREMATCHREQUIREMENTS VALUING IN-KIND SUPPORT AS MATCH GRANT DISBURSEMENTS WITHHOLDING OF GRANT FUNDS ADVANCE DISBURSEMENTS weveeen deveee PENIAAAWD;UNEXPENDED GRANT FUNDS AND INTEREST EARNED 10.BUDGET ADJUSTMENTS AND CHANGES...... ATTACHMENT 1 FINANCIAL REPORT/REQUEST FOR REIMBURSEMENT FORM ....cssssssecscsosscessee ATTACHMENT 2 PROGRESS REPORT FORM ATTACHMENT 3 NOTICE OF PROJECT AND GRANT CLOSEOUT ATTACHMENT 4 GRANTEE CERTIFICATION ATTACHMENTS WAIVER OF SOVEREIGN IMMUNITY (IF REQUIRED) Page 3 of 29 Hoonah Biomass District Heating Loop Grant Agreement #7081161 |APPENDIX A .GENERAL PROVISIONS 1.Definitions In this Grant Agreement,attachments and amendments: a)"Authority”means the Alaska Energy Authority,a public corporation of the State of Alaska. b)"Authority Project Manager”means the employee of the Authority responsible for assisting the Grantee with technical aspects of the Project and is one of the Grantor's contacts for the Grantee during all phases of the Project. c)"Authorized Representatives”means those individuals or entities authorized by an entity to act on its behalf,with delegated authority sufficient to accomplish the purposes for which action is needed. d)"Economic Life”means _20_years from the date of the final disbursement. e)"Executive Director”means the Executive Director of the Authority or the Executive Director's authorized representative. f)"Grantee Project Manager”means the person designated to fulfill the obligations arising under Appendix B1,item #2. g)"Matching Contributions”means the cash,loan proceeds,in-kind labor,equipment,land, other goods,materials,or services a Grantee provides to satisfy any match requirements of a grant or to complete the Project. h)"Project”means Hoonah Biomass District Heating Loop as defined in Appendix C (Scope of Grant)for which funds have been made available. i)"State”means the State of Alaska, 2.Authority Saved Harmless As a condition of this Grant,the Grantee agrees to defend,indemnify,and hold harmless the Authority and the State of Alaska,and their agents,servants,contractors,and employees,from and against any and all claims,demands,causes of action,actions,and liabilities arising out of, or in any way connected with this grant or the project for which the grant is made,howsoever caused,except to the extent that such claims,demands,causes of action,actions or liabilities are the proximate resuit of the sole negligence or willful misconduct of the Authority or the State of Alaska. 3.Workers'Compensation Insurance The Grantee shall provide and maintain Workers'Compensation Insurance as required by AS 23.30 for all employees engaged in work under this Grant Agreement.The Grantee shall require any contractor to provide and maintain Workers'Compensation Insurance for its employees as required by AS 23.30. 4,Insurance The Grantee is responsible for obtaining and maintaining any necessary insurance and endorsements as defined in Appendix B Standard Provisions Page 4 of 29 Hoonah Biomass District Heating Loop Grant Agreement #7081161 5.Equal Employment Opportunity (EEO) The Grantee may not discriminate against any employee or applicant for employment because of race,religion,color,national origin,age,physical handicap,sex,marital status,changes in marital status,pregnancy,or parenthood.The Grantee shall post in a conspicuous place, available to employees and applicants for employment,a notice setting out the provisions of this paragraph. The Grantee shall state in all solicitations or advertisements for employees to work on Authority funded projects,that it is an Equal Opportunity Employer (EEO)and that all qualified applications will receive consideration for employment without regard to race,religion,color, national origin,age,physical handicap,sex,marital status,changes in marital status,pregnancy or parenthood. The Grantee shall include the provisions of this EEO article in every contract relating to this Grant Agreement and shall require the inclusion of these provisions in every agreement entered into by any of its contractors,so that those provisions will be binding upon each contractor and subcontractor. 6.Public Purposes The Grantee agrees that the Project to which this Grant Agreement relates shall be dedicated to public purposes and any project constructed or equipment or facilities acquired,shall be owned and operated for the benefit of the general public.The Grantee shall spend monies appropriated under this grant only for the purposes specified in the Grant Agreement.The benefits of the Project shall be made available without regard to race,religion,color,national origin,age,physical handicap,sex,marital status,changes in marital status,pregnancy or parenthood. 7.Officials Not To Benefit No member of or delegate to Congress or the Legislature,or officials or employees of the Authority or Federal government may share any part of this agreement or any benefit to arise from it. 8.Governing Law This Grant Agreement is governed by the laws of the State of Alaska.Any civil action arising from this Agreement shall be brought in the Superior Court for the Third Judicial District of the State of Alaska at Anchorage. 9.Compliance with Applicable Law and Funding Source Requirements The Grantee shall comply with all applicable local,state and federal statutes,regulations, ordinances and codes,whether or not specifically mentioned herein.Refer to Appendix B Standard Provisions for more specific requirements. 10.Severability If any section,paragraph,clause or provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement shall be unaffected and enforced to the fullest extent possible, and the invalid or unenforceable provision shall be deemed replaced with a valid and enforceable provision that is as similar as possible to such invalid or unenforceable provision. Page5of29 Heoonah Biomass District Heating Loop Grant Agreement #7081161 11.Non-waiver The failure of either party at any time to enforce a provision of this Agreement shall in no way constitute a waiver of the provision,nor in any way affect the validity of this Agreement,or any part hereof,or the right of such party thereafter to enforce each and every provision hereof. 12.Integration This instrument and all appendices,amendments,attachments,Request for Applications dated July 2,2014 and the Application dated September 22,2014 hereto embody the entire Agreement of the parties concerning the grant funds granted hereunder.There are no promises,terms,conditions,or obligations regarding said funds other than those contained in the documents described above;and such documents shall supersede all previous communications,representations or agreements,either oral or written,between the parties hereto.To the extent there is any conflict between the provisions of Appendix A and B theGrantee's application or proposal,the provisions of Appendix A and B prevail. 13.Grantee Not Agent of Authority The Grantee and any agents and employees of the Grantee act in an independent capacity and are not officers or employees or agents of the Authority in the performance of this Grant Agreement. 14.Disputes Any dispute arising under this Grant Agreement which is not disposed of by mutual agreement must be dealt with in accordance with 3 AAC 108.915. 15.Termination a)The Grantee shall have no rights to compensation or damages for termination except as provided in this Section. b)In addition to all other rights available under law,the Authority may terminate this Agreement or stop work on the Project for the convenience of the Authority or for cause upon ten (10)days written notice. c)"Cause"for termination shall exist when the Grantee has failed to perform under this Agreement,has been stagnant on progression of the project for 2 years,has provided incorrect or misleading information or has failed to provide information which would have influenced the Authority's actions.In order for termination to be for cause,the Grantee's failure to perform or the Grantee's provision of incorrect,misleading,or omitted information must be material. d)If this Agreement is terminated for cause,the Grantee shall be entitled to no compensation.The Grantee shall reimburse the Authority for all grant funds expended under this Agreement by the Grantee or on the Grantee's behalf including interest accrued from the date of disbursement.The Grantee shall also reimburse the Authority for any costs incurred to collect funds subject to reimbursement,and for any damagesincurredbytheAuthorityasaresultoftheGrantee's failure to perform or provision of incorrect or misleading information.The Authority may require the Grantee to return to the Authority some or all of the Project assets and the fair market value of the returned Project assets will be applied to reduce the amount of reimbursement the Grantee owes the Authority under this subsection d. Page 6 of 29 Hoonah Biomass District Heating Loop Grant Agreement #7081161 e)If this Agreement is terminated at the sole request of the Authority for the sole reason of its convenience,the Grantee is not required to reimburse the Authority for funds expended prior to the date of termination.If the Grantee has incurred costs under this agreement,the Grantee shall only be reimbursed by the Authority for eligible costs the Grantee incurred prior to the date of termination of the Agreement.However,prior to making any claim or demand for such reimbursement,the Grantee shall use its best effort to reduce the amount of such reimbursement through any means legally available to it.The Authority's reimbursement to the Grantee shall be limited to the encumbered, unexpended amount of funds available under this Agreement. f)If the basis for the termination of the Agreement or stop work under Section 15(b)is capable of being cured,the Authority shall provide the Grantee thirty (30)days from the date the termination or stop work becomes effective for the Grantee to cure the basis for the termination or stop work.If the Grantee cannot reasonably cure the basis for the termination or stop work within this thirty (30)day period,but the Grantee promptly undertakes and diligently pursues such cure,the cure period shall be extended to sixty (60)days.The Authority may further extend the cure period if the Grantee demonstrates that it is prohibited from curing the basis for termination or stop work by any process, stay or injunction issued by any govermmental authority or pursuant to any bankruptcy or insolvency proceedings.If the Grantee cures the basis for the stop work,the stop work will be lifted.Until the Agreement is reinstated or stop work lifted,the Authority may not disburse any amount under this Agreement to the Grantee except as otherwise specifically provided in this section. 16.Termination Due to Lack of Funding In the event funding from the Authority,federal or other sources is withdrawn,reduced,or limited in any way after the effective date of this agreement and prior to normal completion,the Authority may terminate the agreement,reduce funding,or re-negotiate subject to those new funding conditions. 17.|No Assignment or Delegation The Grantee may not assign or delegate this Grant Agreement,or any part of it,or any right to any of the money to be paid under it,except with the written consent of the Executive Director or Designee. 18._No Third Party Beneficiaries Except as otherwise specified in this agreement,no person is a third party beneficiary of this Agreement and this Agreement creates no third party rights.Specifically,any person who is not a party to this Agreement shall be precluded from bringing any action asserting the liability of a party or asserting any right against a party to this Agreement,through the terms of this Agreement.No person,other than a party to this Agreement,may bring any action based upon this Agreement for personal injuries,property damages,or otherwise. 19.No Additional Work or Material No claims will be allowed for additional work,materials,or equipment,not specifically authorized in this Grant Agreement,which are performed or furnished by the Grantee. Page 7 of 28 Hoonah Biomass District Heating LoopGrantAgreement#7081161 : 20.Changes Any changes which have been agreed to by both parties will be attached and made a part ofthisGrantAgreementbyuseofawrittenAmendment.Any such Amendment must be dated and signed by Authorized Representatives of the Authority and the Grantee. 21.Right to Withhold Funds The Authority may withhold payments under this Grant Agreement for non-compliance with any of the provisions of this Grant Agreement. 22.Remission of Unexpended Funds The Grantee shall return all unexpended grant monies to the Authority within 90 days of the Project completion. 23.Tax Compliance Responsibilities of Grantee The Grantee is responsible for determining applicable federal,state,and local tax requirements, for complying with all applicable tax requirements,and for paying all applicable taxes.The .Authority may issue an IRS Form 1099 for Grant payments made.The Grantee shall pay all federal,state and local taxes incurred by the Grantee and shall require the payment of all applicable taxes by any contractor or any other persons in the performance of this Grant Agreement. 24.Lobbying Activities In accepting these funds,the Grantee agrees and assures that none of the funds will be used for the purpose of lobbying activities before the United States Congress or Alaska Legislature. No portion of these funds may be used for lobbying or propaganda purposes as prohibited in AS 37.05.321,18 U.S.C.1913,31 U.S.C.1352,or other laws as applicable. 25.'Financial Management and Accounting The Grantee shall establish and maintain a financial management and accounting system that conforms to generally accepted accounting principles.In addition,the accounting system must keep separate all grant funds awarded under this grant agreement. 26.Procurement Standards Grantees will follow competitive purchasing procedures that:1)provide reasonable competitive vendor selection for small dollar procurements;2)provide for competitive bids or requests for proposals for contracts and procurements greater than $100,000;3)provide a justification process for non-competitive procurements or contracts;4)document the source selection methods used for all contracts,equipment,or material transactions greater than $10,000;5)and comply with other procurement requirements as defined in Appendix B.Grantees who have questions about their procurement procedures or a specific procurement should contact the Authority's Grant Manager. 27.Reporting Requirements The Grantee shall submit progress reports to the Authority according to the schedule established in Appendix D of this Grant Agreement. Page 8 of 29 Hoonah Biomass District Heating Loop Grant Agreement #7081161 28.Ownership of Documents and Products Except as otherwise specifically agreed,all designs,drawings,specifications,notes,artwork, computer programs,reports and other work developed with grant funds in the performance of this agreement are public domain and may be used by the Authority and/or public without notice or compensation to the Grantee.The Grantee agrees not to assert any rights and not to establish any claim under the design patent or copyright laws.Except as otherwise specifically agreed,and without limiting any Intellectual Property requirements of a federal funding agency, the Authority shall have unlimited rights to use and to disseminate any data produced or delivered in the performance of the contract.For purposes of clarity,nothing in this section precludes Grantee from using any document or product with respect to the Project or other Grantee uses. 29.inspections and Retention of Records The Grantee shall keep a file for financial,progress and other records relating to the performance of the grant agreement.The file must be retained for a period of four years from the fully executed close out of the grant agreement or until final resolution of any audit findings claim or litigation related to the grant.The Authority may inspect,in the manner and at reasonable times it considers appropriate,records and activities under this Grant Agreement. 30.Audits This Grant Agreement is subject to 2 AAC 45.010 single audit regulations for State Grants.The Grantee must comply with all provisions of 2 AAC 45.010 and any additional audit requirements outlined in Appendix D. Commercial (for-profit)entities shall obtain an audit by an independent auditing firm similar to a program audit prepared under OMB A-133.The auditee and auditor shall have basically the same responsibilities for the federal or state program as they would have for an audit of a major program in a single audit.The expenditure threshold is $500,000 in the commercial entity's fiscal year. 31.Legal Authority The Grantee certifies that it possesses legal authority to accept grant funds under the State of Alaska and to execute the Project described in this Grant Agreement by signing the Grant Agreement document.The Grantee's relation to the Authority and the State of Alaska shall be at all times as an independent Grantee. 32.Grant Close out Upon completion of all work and expenditure of all grant funds related to the Project the Authority will provide written notice to the Grantee that the Grant will be closed.The Grantee shall sign the Notice of Project Closeout within 30 days after it is delivered by the Authority.The Grant will be considered closed upon receipt of the signed Notice of Project Closeout. The Grant will be administratively closed if the Grantee fails to return the Notice of Project Closeout within 30 days after it is delivered by the Authority.If the Grantee has a valid reason for the Grant to remain open,they must contact the Authority in writing within 30 days. No additional reimbursements will be made to the Grantee after the grant is closed out. Page 9 of 29 Heoonah Biomass District Heating Loop Grant Agreement #7081161 |Appendix B Standard Provisions 4.Grant Funding Sources This Grant is subject to appropriation and availability of funds as listed below: State of Alaska $45,000 SLA 2015;Ch.38;Sec.1;Pg.2;Ln.26-27 Hoonah Indian Association 10,000 In-Kind Match Total Funding $55,000 Grantee acknowledges that if additional grant funds are made available they are subject to the terms and conditions of this Agreement and any amendment. 2.Governing Laws The Grantee shall perform all aspects of this Project in compliance with all applicable state, federal and local laws. 3.Eligible Costs The Authority,as Grantor,shall have sole discretion to determine which project costs are eligible to be paid from Grant monies under this agreement.Only direct costs of the Project are eligible for payment or reimbursement from grant funds.Indirect costs are not allowed under this grant unless approved by the Authority in Appendix E. The eligible costs will be determined in accordance with 3 AAC 107.600 -695 and the Request for Applications dated July 2,2014;which is incorporated by reference into this grant agreement. 4.Insurance Requirements The following insurance requirements are in effect for this Project.Grant funds will be used to procure Project related insurance and the Authority will work with the Grantee to ensure that these requirements are met.Insurance will be obtained with an insurance carrier or carriers covering injury to persons and property suffered by the State of Alaska,Alaska Energy Authority or by a third party as a result of operations under this grant.The insurance shall provide protection against injuries to all employees of the Project engaged in work under this grant.All insurance policies shall be issued by insurers that (i)are authorized to transact the business of insurance in the State of Alaska under AS 21 and (ii)have a Bests Rating of at least A-VII and be required to notify the Authority,in writing,at least 30 days before cancellation of any coverage or reduction in any limits of liability. Where specific limits and coverage are shown,it is understood that they shall be the minimum acceptable and shall not limit the Grantee's indemnity responsibility.However,costs for any coverage in excess of specific limits of this agreement are the responsibility of the Grantee and may not be charged to this grant agreement. The following policies of insurance shall be maintained with the specified minimum coverage and limits in force at all times during the performance work under this Project: 1.Workers'Compensation:as required by AS 23.30.045,for all employees engaged in work under this Project.The coverage shail include: Page 10 of 29 Hoonah Biomass District Heating Loop Grant Agreement #7081161 a.Waiver of subrogation against the State and the Alaska Energy Authority and Employer's Liability Protection at $500,000 each accident/each employee and $500,000 policy limit; 2.Commercial General Liability:on an occurrence policy form covering all operations under this Project with combined single limits not fess than: a.$1,000,000 Each Occurrence; b.$1,000,000 Personal Injury; c.$1,000,000 General Aggregate;and d.$1,000,000 Products-completed Operations Aggregate. The State of Alaska and Alaska Energy Authority shall be named as an Additional insured. 3.Automobile Liability:covering all vehicles used in Project work,with combined singlelimitsnolessthan$1,000,000 each occurrence. All of the above insurance coverage shall be considered to be primary and non-contributory to any other insurance carried by the State of Alaska and Alaska Energy Authority,whether self- insurance or otherwise. The Authority's acceptance of deficient evidence of insurance does not constitute a waiver of Grant requirements. 5.Sovereign Immunity By execution of this grant agreement,the Grantee imevocably waives any sovereign immunity which it may possess,and consents to suit against itself or its officials,under the laws of the State of Alaska,in the courts of the State of Alaska as to all causes of action by the Authority arising out of or in connection with this agreement.If the Grantee is an entity which possesses sovereign immunity,it shall provide the Authority with a resolution of the Grantee's goveming body waiving sovereign immunity,and such resolution shall be incorporated into this agreement as an Attachment.(See Attachment 5) 6.Procurement and Suspension and Debarment When the Grantee enters into a transaction with an entity for the purchase of goods or services that are expected to equal or exceed $25,000,or meet other special criteria as specified in 2 CFR section 180.220,the grantee is required to verify that the entity and its principals as defined in 2 CFR section 180.995,are not suspended or debarred or otherwise excluded from participating in the transaction.The Grantee must verify the eligibility of the entity and its principals by one of the following:(1)checking the Excluded Parties List System (EPLS) maintained by the General Services Administration (GSA)(Note:EPLS is no longer a separate system;however,the OMB guidance and agency implementing regulations still refer to it as EPLS)and available at https:/Awww.sam.gov/portal/public/SAM/),(2)collecting a certification from the entity,or (3)adding a clause or condition to the covered transaction with that entity stating it is not suspended or debarred from participating in the transaction (2 CFR section 180.300). Page 11 of 29 Hoonah Biomass District Heating Loop Grant Agreement #7081161 |Appendix B1 Standard Provisions for General Design - 7.Declaration of Public Benefit The parties acknowledge and agree that the Project shall be constructed,owned and operated for the benefit of the general public and will not deny any person use and/or benefit of Project facilities due to race,religion,color,national origin,age,physical handicap,sex,marital status, changes in marital status,pregnancy or parenthood. z.Contracts for Engineering Services in the event the Grantee contracts for engineering services,the Grantee will require that the engineering firm certify that it is authorized to do business in the State of Alaska and provide proof of licensing and required professional liability insurance. Unless otherwise agreed by the Authority,the insurance required by this section shall,at a minimum,included professional liability insurance covering all errors,omissions or negligent acts in the performance of professional services under this agreement,with limits required per the following schedule: Contract Amount Minimum Required Limlts Under $100,000 $300,000 per Occurrence/Annual Aggregate $100,000-§499,999 $500,000 per Occurrence/Annual Aggregate $500,000-$999,999 $1,000,000 per Occurrence/Annual Aggregate $1,000,000 or over Refer to Risk Management 3.Site Control If the grant Project involves the occupancy and use of real property,the Grantee assures that it has the legal right to occupy and use such real property for the purposes of the grant,and further that there is legal access to such property.The Grantee is responsible for securing the real property interests necessary for the construction and operation of the Project,through ownership,leasehold,easement,or otherwise,and for providing evidence satisfactory to the Authority that it has secured these real property interests. 4.Permits It is the responsibility of the Grantee to identify and ensure that all permits required for the construction and operation of this Project by the Federal,State,or Local governments have been obtained unless otherwise stated in Appendix C.These permits may include,but are not limited to,Corps of Engineers,Environmental Protection Agency,Alaska Department of Environmental Conservation,State Historic Preservation Office,State Fire Marshal,Alaska Department of Natural Resources,Alaska Department of Fish and Game and Boroughs. 5.Exclusion of Existing Environmental Hazards Grant funds for investigation,removal,decommissioning,or remediation of existing environmental contamination or hazards,are not allowed unless specifically specified and approved in Appendix C. Page 12 of 29 Hoonah Biomass District Heating Loop Grant Agreement #7081161 6.Environmental Standards The Grantee will comply with applicable environmental standards,including without limitation applicable laws for the prevention of pollution,management of hazardous waste,and evaluation of environmental impacts. 7.Tariffs &Rates for Use of Grant-Funded Assets Rates for power provided as a result of generation or transmission facilities built with grant funds may be subject to review and approval by the Regulatory Commission of Alaska (RCA),or if the rates are not subject to RCA review and approval,they may be subject to review and approval by the Authority to ensure reasonable and appropriate public benefit from the ownership and operation of the Project. As a condition of the grant,Independent Power Producers will agree to sell energy resources for electricity and heat at a cost-based rate for the economic life of the project.The Authority will hire an independent economist to provide guidance in developing a cost-based rate for electric sales with an appropriate rate of return on equity. The allowable cost-based rate represents the highest rate that the Independent Power Producer will be allowed to charge.Because the cost-based rates are a grant condition,avoided costs rates or Public Utility Regulations Policies Act (PURPA)rates will not apply for projects which obtain grant funding. Application for a Certification of Public Convenience and Necessity (CPCN)is also a grant condition.RCA action related to the issuance of the CPCN must be completed prior to the issuance of any construction grant funding. 8.Grant-funded Assets Not included with PCE The Grantee agrees that it will not include the value of facilities,equipment,services,or other benefits received under this grant as expenses under the Power Cost Equalization Program or as expenses on which wholesale or retail rates or any other energy tariffs are based. Page 13 of 29 Hoonah Biomass District Heating Loop Grant Agreement #7081161 |Appendix C -Grantee Proposal/Scope of work | Hoonah Indian Association (HIA)requested funding to evaluate the technical and financial feasibility for a district biomass heating system for the following buildings:Hoonah School (possibly including pool),Hoonah School Auto Shop/Carving Shed,Hoonah Boys and Girls Club,Hoonah Indian Association Cookhouse,Headstart Building,Hoonah City Hall and a large privately-owned commercial building containing apartments,a laundry mat and a thrift store. Hoonah Indian Association is pursuing the construction of a community Greenhouse to be located and operated in conjunction with the community garden that was initiated two (2)years ago.It is proposed that the district heat loop would incorporate this facility as well.HIA plans to own,maintain and operate the proposed district heat loop system as a not-for-profit heat utility. HIA is open to alternative ownership models as may be determined appropriate and desirable through the proposed feasibility planning process.HIA has the support of all of the identified involved parties.The best location can be identified during the feasibility study process.The first deliverable is a list of stakeholders,property owners and project partners,with associated MOU's,project scoping and map of the proposed district heating loop. Fuel Displacement:A key objective of this project is the displacement of diesel by use of local resources which will mean more money stays in the community that would otherwise be used to purchase heating oil.The next milestone and deliverable is 2 years of heating data from each of the proposed entities in the heating district.This information should include the current type of facility heat,boiler type and age,gallons used and the cost for the past 24 months. The Hoonah Indian Association will provide the Alaska Energy Authority a final draft of the Request for Proposals (RFP)prior to publication.The estimated cost for professional consultant services is between $35,000 and $45,000 to evaluate: 1.The technical and financial feasibility of integrating renewable energy systems, 2.Energy modeling of woody biomass fuels (chips,pellets or cordwood)for the proposed buildings, 3.Adistrict heat system with an option to tie into the current loop using waste heat from the electric plant, 4.Analysis of wood and sawmill residue availability and delivered cost to biomass system, and delivered cost of pellets or cordwood. An assessment of integrating biomass into buildings'current heating system,including updates like baseboard improvements to improve the efficiency of the system 6.The option to build a greenhouse,which will use excess heat in the shoulder seasons, ideally at the community garden hosted by Hoonah Indian Association on their centrally located property. 7.Complete a regional resource assessment to determine the extent of available woody biomass in Hoonah.aScope Page 14 of 29 Hoonah Biomass District Heating Loop Grant Agreement #7081161 Grant Match Total Start |}EndMilestonesRelmbursableTasksBudget|Budget |Budget |Date |Date |Deliverables Jan Feb 1 |Finalize Award Documents $Oo!$ft]0}2016 |2016 List of .|Partner Coordination,MOU and Feb |Feb |stakeholders2|project scoping,map 0 2,000 |$2,000 |2016 |2016 |MOU,mapMarMar|2 years3|Heating data update 0 2,000 2,000 |2016 {|2016 |heating dataMarApril|Draft RFP to4|Draft RFP,Solicit Proposals 1,000 500 1,500 |2016 |2016 |AEA Complete inventory, Local and regional resource April |July |resource5|assessment 2,000 3,500 4500 |2015 |2016 |assessmentApril|April |Copy of6|Award contract,kick-off meeting 3,000 500 3,000 |2016 |2016 |contract Contract deliverables, Contractor deliverables,May Oct |stakeholder 7_|community engagement 17,000 1,000 18,000 |2016 |2016 {|meetingsNovNov|Preliminary8|Preliminary report 17,000 500 17,000 |2016 |2016 |report Dec May 9 |Final report 5.000 0 5.000 |2016 |2017 |Final report Total $45.000 |$$55,000 Page 15 of 29 Hoonah Biomass District Heating Loop Grant Agreement #7081161 |Appendix D_Project Management &Reporting Requirements 1.Project Management The Grantee will notify the Authority immediately of any significant organizational changes during the term of the grant,including changes in key personnel or tax status,any unforeseen problem or project delay that may cause a change to the work plan or budget or that may otherwise affect the Grantee's ability to perform its commitments under this Grant Agreement. Any unreported or unapproved changes to the work plan or budget evident in reports may result in an amendment being required,costs disallowed,suspension or termination of the grant as described in Appendix A. 2.Contact Persons For the Grantee For The Authority Grant Manager Grant Manager Robert Starbard Shawn Calfa,Grants Administrator P.O.Box 602 813 W.Northern Lights Blvd. Hoonah,AK 99829 Anchorage,Alaska 99503rstarbard@hiatribe.org scalfa@aidea.org 907-945-3703 907-771-3031 Project Manager Project Manager Robert Starbard Karl Reiche P.O.Box 602 813 W.Northern Lights Bivd. Hoonah,AK 99829 Anchorage,Alaska 99503 rstarbard@hiatribe.org kreiche@aidea.org 907-945-3703 907-771-3017 3.Monthly Progress and Financial Reports The Grantee will provide monthly progress and financial reports by email (or other method allowed by the Authority,if email is not available)to the Authority Project Manager.These reports are due starting the first full month after the execution of this Agreement.This report must update the Authority on the project's progress,regulatory and compliance issues,possible delays,and grant expenditures during the month.These Monthly Progress Reports,which are due within 30 days of the end of the previous month,must summarize,in one or two pages,the progress made on grant tasks during the month and identify any difficulties in completing tasks or meeting goals or deadlines.The Grantee must also include with the report copies of any work products due to the Authority during this period. Reports are considered late five (5)days after the due date.No further payments will be made without submission and approval of required reports.Work completed after the twenty-day period when required reports have not been submitted is at the Grantee's risk,and costs incurred may be disallowed.Repeated failure to submit reports in a timely manner could result in suspension or termination of the grant. Page 16 of 29 Hoonah Blomass District Heating Loop Grant Agreement #7081161 All reports and deliverables required in this agreement must have been submitted and approved by the Authority prior to the final payment being released. 4.Documentation and Record Keeping The Grantee shall maintain the following in their files: Grant application; Grant agreement and any amendments; All written correspondence or copies of emails relating to the Grant; Reports,including any consultant work products; A separate accounting of grant income and expenditures; Supporting documentation for the expenditures charged to the grant (including supporting documentation for all required matching contributions). The Authority and any authorized federal representative may inspect,in the manner and at any reasonable time either considers appropriate,the Grantee's facilities,records,and activities funded by this Grant Agreement. Page 17 of 29 Hoonah Biomass District Heating Loop Grant Agreement #7061161 Appendix E Project Budget &Reimbursement Provisions 4.Allowable Costs Allowable costs under this grant include all reasonable and ordinary costs for direct labor & benefits,travel,equipment,supplies,contractual services,construction services,and other direct costs identified and approved in the Project budget that are necessary for and incurred asadirectresultoftheProjectandconsistentwiththerequirementsnotedinAppendixB3Eligible Costs. A cost is reasonable and ordinary if,in its nature and amount,it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the costs. Allowable costs are only those costs that are directly related to activities authorized by the Grant Agreement and necessary for the Project.The categories of costs and additional limits or restrictions are listed below: a.Direct Labor &Benefits Include salaries,wages,and employee benefits of the Grantee's employees for that portion of those costs attributable to the time actually devoted by each employee to,and necessary for the Project.Direct labor costs do not include bonuses,stock options,other payments above base compensation and employee benefits,severance payments or other termination allowances paid to the Grantee's employees. b.Travel,Meals,or Per Diem Include reasonable travel expenses necessary for the Project.These include necessary transportation and meal expenses or per diem of Grantee employees for which expenses the employees are reimbursed under the Grantee's standard written operating practice for travel and per diem or the current State of Alaska Administrative Manual for employee travel. -'¢.Equipment Include costs of acquiring,transporting,leasing,installing,operating,and maintaining equipment necessary for the Project,including sales and use taxes. Subject to prior approval by the Authority Project Manager,costs or expenses necessary to repair or replace equipment damage or losses incurred in performance of work under the grant may be allowed.However,damage or losses that result from the Grantee's employees,officer's,or contractor's gross negligence,willful misconduct,or criminal conduct will not be allowed. d.Supplies Include costs of material,office expenses,communications,computers,and supplies purchased or leased by the Grantee necessary for the Project. Page18of29 Hoonah Biomass District Heating Loop Grant Agreement #7081161 2. e.Contractual services Include the Grantee's cost of contract services necessary for the Project.Services may include costs of contract feasibility studies,project management services,engineering and design,environmental studies,field studies,and surveys for the project as well as costs incurred to comply with ecological,environmental,and health and safety laws. f.Construction Services For construction projects this includes the Grantee's cost for construction contracts,labor, equipment,materials,insurance,bonding,and transportation necessary for the Project. Work performed by the Grantee's employees during construction may be budgeted under direct labor and benefits.Contracted project management or engineering may be budgeted under contractual services and major equipment purchases made by the Grantee may be budgeted under equipment. g.Other Direct Costs In addition to the above the following expenses necessary for the Project may be allowed. e Net insurance premiums paid for insurance required for the grant Project; e Costs of permits and licenses for the grant Project; e Non-litigation legal costs for the Project directly relating to the activities;in this paragraph,"non-litigation legal costs”includes expenses for the Grantee's legal staff and outside legal counsel performing non-litigation legal services; e Office lease/rental payments; e Other direct costs for the Project directly relating to the activities and identified in the grant documents;and/or e Land or other real property or reasonable and ordinary costs related to interests in land including easements,right-of-ways,or other defined interests. Specific Expenditures not allowed Ineligible expenditures include costs for overhead,lobbying,entertainment ,alcohol,litigation, payments for civil or criminal restitution,judgments,interest on judgments,penalties,fines, costs not necessary for and directly related to the grant Project,or any costs incurred before the beginning date of the grant as indicated on the signature page. Overhead costs described in this section include: »salaries,wages,applicable employee benefits,and business-related expenses of the Grantee's employees performing functions not directly related to the grant Project; e office and other expenses not directly related to the grant Project;and e costs and expenses of administration,accounting,human resources,training,property and income taxes,entertainment,self-insurance,and warehousing. Page 19 of 29 Hoonah Biomass District Heating Loop Grant Agreement #7081161 3.Match The Grantee is required to provide $10,000 of in-kind match for this Project.Cash match will be applied based on a percentage basis unless otherwise specified in the budget in Appendix C. In-kind match will be applied based on the budget in Appendix C. 4.Cost Share Match Requirements Cost sharing or matching is that portion of the Project costs not borne by the Authority.The Authority will accept all contributions,including cash and in-kind,as part of the Grantees'cost sharing or matching when such contributions meet the following criteria: «Are provided for in the Project budget; Are verifiable from the Grantee's records; e Are not included as contributions for another state or federally assisted project or program;(The same funds cannot be counted as match for more than one program.) e Are necessary and reasonable for proper and efficient accomplishment of the Project or program objectives; Are allowable costs; Are not paid by the State or federal government under another award,except for those authorized by the State or federal statute to be used for cost sharing or matching; e Must be incurred within the grant eligible time period.The Authority may allow cost sharing or matching contributions that occurred prior to the grant eligible time period for projects that involve construction. 5.Valuing In-Kind Support as Match If the Grantee chooses to use in-kind support as part of or its entire match,the values of those contributions must be approved by the Authority at the time the budget is approved.The values will be determined as follows: e The value of real property will be the current fair market value as determined by an independent third party or a valuation that is mutually agreed to by the Authority and the Grantee and approved in the grant budget. e The value assessed to Grantee equipment or supplies will not exceed the fair market value of the equipment or supplies at the time the grant is approved or amended. e Equipment usage will be valued based on approved usage rates that are determined in accordance with the usual accounting policies of the recipient or the rates for equipment that would be charged if procured through a competitive process.Rates paid will not exceed the fair market value of the equipment if purchased. *Rates for donated personal services will be based on rates paid for similar work and skill level in the recipient's organization.{f the required skills are not found in the recipient organization,rates will be based on rates paid for similar work in the labor market. Fringe benefits that are reasonable,allowable,and allocable may be included in the valuation. e Transportation and lodging provided by the Grantee for non-local labor will not exceed the commercial rates that may be available within the community or region. Page 20 of 29 Hoonah Biomass District Heating Loop Grant Agreement #7081161 ; 6.Grant Disbursements The Grantee must request disbursement of grant funds in the form and format required by the Authority with appropriate back-up documentation and certifications.(See Attachment 1). Reimbursements are made for actual costs incurred and must be for approved milestones.The back-up documentation must demonstrate the total costs incurred are allowable,and reflect the amount being billed.Documentation must include: A ledger summarizing cost being billed; A summary of direct labor costs supported by timesheets or other valid time record to document proof of payment; Travel and per-diem reimbursement documentation; Contractor or vendor pay requests; Itemized invoices and receipts;and Detailed ledger of costs being charged to this grant. Additionally,the Grantee may be required to provide proof of payment of the incurred costs at the request of the Authority. Payment of grant funds will be subject to the Grantee complying with its matching contribution requirements of the Grant. Payment of grant funds will be made by the Authority to the Grantee within 30 days from receipt of a properly completed,supported,and certified Reimbursement Request (See Attachment 1). 7.Withholding of Grant Funds If,upon review of the monthly billings,the Authority discovers errors or omissions in the billings it will notify the Grantee within thirty (30)days of receipt of the billing.Payment for the portion of billings for which there is an error or omission may be withheld pending clarification by Grantee. Grant funds may be withheld for the following reasons: e The Grantee fails to provide adequate back-up documentation. e The Authority determines that a specific expense is not allowed under the grant. e The Grantee's matching contribution requirements are not met. Up to 10%of the Authority's contribution of grant funds may be retained by the Authority until the Project is completed and all required final documentation and reports are received and accepted by the Authority. 8.Advance Disbursements In most instances,payments to a Grantee will be made on a cost reimbursable basis.If the Authority determines that cost reimbursement will significantly inhibit the Grantee's ability to perform the Project and determines that an advance is in the public interest,the Authority may recommend an advance to the Grantee of an amount not to exceed a projected thirty (30)day cash need,or twenty percent (20%)of the grant amount,whichever amount is less. Page 21 of 29 Hoonah Biomass District Heating Loop Grant Agreement #7081161 Before the Authority will issue an advance,the Grantee must provide in writing,and the Authority must approve a "Request for Advance Payment”form which includes: a.justification of the need for the advance; b.documentation of anticipated line item costs associated with the advance. All advances will be recovered with the Grantee's next Financial/Progress Report form.Should earned payments during the terms of this Grant Agreement be insufficient to recover the full amount of the advance,the Grantee will repay the unrecovered amount to the Authority when requested to do so by the Authority,or at termination of the Grant Agreement. 9.Unexpended Grant Funds and Interest Earned Any grant funds not expended under this agreement and any interest accruing on the grant funds belong to the Authority and shall be retumed to the Authority. 10.Budget Adjustments and Changes When a Grantee faces increased unbudgeted costs,the Grantee should contact the Authority Project Manager.Budget adjustments cannot increase the grant award amount.Cost overruns that may require reduced scope of work will require Authority approval and an amendment to the grant.If a budget adjustment or other changes indicate to the Authority Project Manager that the project cannot be completed as currently planned and budgeted for,the Authority Project Manager will not approve the release of additional grant funds until the Grantee provides sufficient information on how the Grantee intends to complete the revised project. Budget Adjustments The Grantee shall identify budget changes on its Financial Reports submitted to the Authority. At least quarterly,the Authority will compare actual costs to budgeted distributions based on the Financial Report/Request for Reimbursement form.Costs charged to grant funds must reflect adjustments made as a result of the activity actually performed.The budget estimates or otherdistributionpercentagesmustberevisedatleastquarterly,if necessary,to reflect changed circumstances. Page 22 of 29 Hoonah Biomass District Heating Loop Grant Agreement #7081161 |Attachment 1 Financial Report/Request for Reimbursement Form | THIS REQUEST IS FOR FINAL PAYMENT Cj Grantee:Hoonah Indian Association Project:Hoonah Blomass District Heating Loop Perlod:to Grant Number:7081161 A B c D=B+C E=#A-D BUDGET SUMMARY GRANT MATCHING TOTAL PRIOR EXPENDITURES TOTAL GRANT BUDGET BUDGET BUDGET |EXPENDITURES}THIS PERIOD |EXPENDITURES|BALANCEBYTASKORMILESTONE Partner Coordination and project scoping $0 $2,000 $2,000 MOU with project partners 0 2,000 2,000 Heating data update 0 2,000 2,000 Solicit Proposals 1,000 600 1,500 Local and regional resource assessment 1,000 3,500 4,500 Award contract 3,000 0 3,000 Site vistt 18,000 0 18,000 Preliminary report 17,000 0 17,000 Final report _5,000 0 5,000 TOTAL $45,000 $30,000 $55,000 BY FUND SOURCES Grant Funds $45,000 $0 $45,000 Grantee Match -in-kind Q 40,000 40.000 TOTAL $44,000 $10.000 $55,000 Please submit this form and the supporting documentation to grants@aidea.org CERTIFICATION Form requires two original signatures.The person certifying must be different from the person preparing the report.One signature should be the authorized representative of the Grantee organization or highest ranking officer;the other should be the person who prepared the report. |certify to the best of my knowledge and belief that the Information reported on both the Financial Report above and the attached Progress Report are correct.In addition,funds were spent and work performed In accordance with the grant agreement terms and conditions. Certified By:Prepared By: Printed Name:Printed Name: Title:Date:Title:Date: Page 23 of 29 Hoonah Biomass District Heating Loop Grant Agreement #7081161 |Attachment 2__Progress Report Form - Grantee:Hoonah Indian Association Project Name:Hoonah Biomass District Heating Loop Grant #7081161 Period of Report:to Project Activities Completed: Existing or Potential Problems: Activities Targeted for Next Reporting Period: Prepared By:Date: Printed Name: Page 24 of 29 Hoonah Biomass District Heating Loop Grant Agreement #7081161 |Attachment 3.Notice of Project and Grant Closeout NOTICE OF PROJECT AND GRANT CLOSEOUT ALASKA ENERGY AUTHORITY Project Name:|Hoonah Biomass District Heating Loop Grantee:Hoonah Indian Association Grant Number:7081161 The Alaska Energy Authority certifies and acknowledges that the Project referenced above has been completed,and that all tasks have been satisfactorily carried out in accordance with the terms and conditions of Agreement Number:7081161. Project Manager Date Alaska Energy Authority Hoonah Indian Association certifies that the Project named above is complete in accordance with the terms and conditions of Alaska Energy Authority Agreement Number:7081161. Hoonah Indian Association also certifies that,we have been reimbursed for all eligible expenses pertaining to 7081161,and that as of the date of signature,no further reimbursements will be requested for any activity related to the Project identified above. Total project cost $ The total project cost should include all expenses related to this grant funded project (grants, loans,match,etc.).It should include design and construction costs,but should not include feasibility and reconnaissance work. Notes/comments:___Please attach on a separate page Authorized Signature Title Printed Name Date Page 25 of 29 Hoonah Blomass District Heating Loop Grant Agreement #7081161 |Attachment 4 Grantee Certification CERTIFICATION OF GRANTEE AND LOWER-TIER PARTICIPANTS REGARDING DEBARMENT,SUSPENSION,AND OTHER INELIGIBILITY AND VOLUNTARY EXCLUSION Grantee Hoonah Indian Association P.O.Box 602 Hoonah,AK 99829 I,Robert Starbard,Tribal Administrator _hereby certify on behalf of Hoonah (Name and title of official) Indian Association that: (1)The prospective Grantee and lower tier participant certifies,by submission of this letter,that neither it nor its "principals"[as defined at 49 C.F.R.§ 29.105(p)]is presently debarred,suspended,proposed for debarment,declared ineligible,or voluntarily excluded from participation in this transaction by any Federal department or agency.In the event,your company or any principals become ineligible from participating in federally funded transactions,you are required to notify us immediately. (2)When the prospective Grantee and lower tier participant is unable to certify to the statements in this certification,such prospective participant shall attach an explanation to this proposal. Executed this 22"4 day of January,2016 ay,LEE (Signature of authorized official) Tribal Administrator (Title of authorized official) Page 26 of 29 Hoonah Biomass District Heating Loop Grant Agreement #7081161 DEBARMENT,SUSPENSION,INELIGIBILITY &VOLUNTARY EXCLUSION -49 CFR Part 29;Executive Order 12549 [Applicable to all Federal-aid contracts which exceed $25,000] Instructions for Certification: 1.The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into.If it is later determined that the prospective Grantee and lower tier participants knowingly rendered an erroneous certification,in addition to other remedies available to the Federal Government,THE AUTHORITY may pursue available remedies,including suspension and,or debarment. 2.The prospective Grantee and lower tier participants shall provide immediate written notice to THE AUTHORITY if at any time the prospective Grantee and lower tier participants learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances. 3.The terms "covered transaction,""debarred,”"suspended,""ineligible,”"lower ticr covered transaction,""participant,”"persons," "lower tier covered transaction,”"principal,""proposal,"and voluntarily excluded,"as used in this clause,have the meanings set out in the Definitions and Coverage sections of rules implementing Executive Order 12549 [49 CFR Part 29].You may contact THE AUTHORITY for assistance in obtaining a copy of those regulations. 4.The prospective Grantee and lower tier participants agrees by submitting this proposal that,should the proposed covered transaction be entered into,it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended,declared ineligible,or voluntarily excluded from participation in this covered transaction,unless authorized in writing by THE AUTHORITY. 5.The prospective Grantee and lower tier participants further agrees by submitting this proposal that it will include the clause titled "Certification Regarding Debarment,Suspension,Ineligibility and Voluntary Exclusion-Lower Tier Covered Transaction",without modification,in all lower tier covered transactions and in all solicitations for lower tier covered transactions. 6.A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transactionthatitisnotdebarred,suspended,ineligible,or voluntarily excluded from the covered transaction,unless it knows that the certification is erroneous.A participant may decide the method and frequency by which it determines the eligibility of its principals.Each participant may,but is not required to,check the Non-procurement List issued by U.S.General Service Administration, 7.Nothing contained in the foregoing shall be construed to require establishment of system of records in order to render in good faith the certification required by this clause.The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings. 8.Except for transactions authorized under Paragraph 5 of these instructions,if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is suspended,debarred,ineligible,or voluntarily excluded from participation in this transaction,in addition to all remedies available to the Federal Government,THE AUTHORITY may pursue available remedies including suspension and/or debarment. Certification Regarding Debarment,Suspension,Ineligibility and Voluntary Exclusion Lower Tier Covered Transaction (1)The prospective Grantee and lower tier participants certifies,by submission of this bid or proposal,that neither it nor its "principals”[as defined at 49 CFR §29.105(p)]is presently debarred,suspended,proposed for debarment,declared ineligible,or voluntarily excluded from participation in this transaction by any Federal department or agency. (2)When the prospective Grantee and lower tier participants is unable to certify to the statements in this certification,such prospective participant shall attach an explanation to this proposal. The Grantee,Hoonah Indian Association certifies or affirms the truthfulness and accuracy of each statement of its certification and disclosure,if any.In addition,the Grantee understands and agrees that the provisions of,49 CFR §29 apply to this certification and disclosure,if any.Ze _Signature of Grantee's Authorized Official:___LLL Name and Title of Grantee's Authorized Official:__Tribal Administrator Date:___January 22,2016 Page 27 of 29 fe Hoonah Indian AssociationanO.Box G02 Hooualh,AK 99829-0602 Phone (QT)945-3845 Fux (907)948-8765Resolution#16-01:Limited Weiver of Sovercign Immutity to Alaska Energy Acthority A RESOLUTION OF Hoonuh Indian Assuciution accepting State of Alasku,Alaska [nergy Authority Grant number 7081161 for the Hoonsh Biomass District NMeuting Loop and waiving sovercign immunity from suit for actions arising out of,or in Gaimection with,the Grent. WHEREAS,the Authority requires as a condition of the Grant that the Huanah Indian Association irrevocably waive any sovercign immunity v lich it raay possess,aud consent to suit against itself or its officials as to all causes of action arising out of or in connection with the Caant Agreument; NOW THEREFORE BE IT RESOLVED TILAT: 1.Hoonah Indiaa Assuciation (HLA)hetcby consents to sait by the Siate of Alaska eecinst (EMA)ord its otticials in state court.fuderal court ot in administative proceedings with respeut to any disputes,claiins or causes of acim (including without limitation enforcement or infuuetive relief)acisivg cmt of or in eonusction with Grant Agnsenmnt 7051161;the contractual duties assumed by (Hi)unter that agrcervent,and any other ayreement pettainbiy to fe graut-fluwed project or the yperaiion of vae facility following construction, 2.(HIA)herchy consents ty levy,excention,or garuishracnt asuinst (LLA)'s real and poxzenad propery, huwever heid wed wlicrever locared,for any judgaueni cr ender execred ia any lawanit or eduriniztrative pruccediny rejacedfu ar arising out cf GrautAgreement 7081161;the cuniractusl dutics assumed by (LIA)vader tht eyreement,and ary olher ecreemert neriainbig te the graat-finded "i ject or ihe opevalion ofthefacilityfollovingccaisiruciion,inciudiay,but cot linuited te.awards of sttorawy's feus aid Costs entered by any cout.ve](LITA)consents te the assertion by the Siete of any defenses,cross-claiuts,or couuterchiens in any civil agtion thatis filed hy (HIA)against the staic. 4,With respect to a claim or avtiun by a furce arcuuni ciaployee or other emuployve of (LILA)auising out of ar ii connection with Graut Agreement 7081161;,the contractaal duiies assunied by (HA)under tht agreement, and any other agreement pertaining to the erant-funded project;or the operation of the facility following construction,(HIA)waives soveteign in-munity to the extent of:and ty the extent necessary to secure, insurauce coverage including workers compensation insurance. 5.'This waiver shail inno case be deemed a waiver or consent ty suit,iax,or any other charge against (MTA)by any party other than ihe Stare of Alaska,cxcept as specifically provided in (4)above. 6,Robert Starbard,Tabal Adiministrator is hereby authorized to neyatiate,administes and execute on behalf of Hoonah Indian Assoviativn Grant number 7081161 for the {loonals Biomass District Hvating Luop and tu negotiate,execute,and administer any otliar documunts,agrcoments,and contracts required wider or sclaicd to the Grant Agreement including subsequent emundtients. CERTIFICATION Thereby certify that the above resolution was evly adupted by the Hoard of Directors on this 13°dey of Ovtoher 2015,withavoteof_§for,0 apainst,|abstentions,UY absent, 5earrieRaof.AAhadfyaALAA 2 48scab?-tpetober 13,2018 a -Grace Villarreal,Bev:ident Date AARLE oyATTESICeBEESTe oaaari,.2015Koberthors{Tribal Adininistrator Date Hoonah Biomass District Heating Loop Grant Agreement #7081161 |Attachment 5 Waiver of Sovereign Immunity (if Required)© WAIVER OF SOVEREIGN IMMUNITY RESOLUTION NUMBER A RESOLUTION OF THE Hoonah Indian Association accepting State of Alaska,Alaska Energy Authority Grant number 7081161 for the Hoonah Biomass District Heating Loop and waiving sovereign immunity from suit for actions arising out of,or in connection with,the Grant. WHEREAS,the Authority requires as a condition of the Grant that the Hoonah Indian Association irrevocably waive any sovereign immunity which it may possess,and consent to suit against itself or its officials as to all causes of action arising out of or in connection with the Grant Agreement; NOW THEREFORE BE IT RESOLVED THAT: 1.Hoonah Indian Association (HIA)hereby consents to suit by the State of Alaska against (HIA)and its officials in state court,federal court or in administrative proceedings with respect to any disputes,claims or causes of action (including without limitation enforcement or injunctive relief)arising out of or in connection with Grant Agreement 7081161;the contractual duties assumed by (HIA)under that agreement, and any other agreement pertaining to the grant-funded project;or the operation of the facility following construction. 2.(HIA)hereby consents to levy,execution,or garnishment against (HIA)'s real and personal property,however held and wherever located,for any judgment or order entered in any lawsuit or administrative proceeding related to or arising out of Grant Agreement 7081161;the contractual duties assumed by (HIA)under that agreement, and any other agreement pertaining to the grant-funded project;or the operation of the facility following construction,including,but not limited to,awards of attorney's fees and costs entered by any court. 3.(HIA)consents to the assertion by the State of any defenses,cross-claims,or counterclaims in any civil action that is filed by (HIA)against the state. 4,With respect to a claim or action by a force account employee or other employee of (HIA)arising out of or in connection with Grant Agreement 7081161;,the contractual duties assumed by (HIA)under that agreement,and any other agreement pertaining to the grant-funded project;or the operation of the facility following construction,(HIA) waives sovereign immunity to the extent of,and to the extent necessary to secure, insurance coverage including workers compensation insurance. Page 28 of 29 Hoonah Biomass District Heating Loop Grant Agreement #7081161 5.This waiver shall in no case be deemed a waiver or consent to suit,tax,or any other charge against (HIA)by any party other than the State of Alaska,except as specifically provided in (4)above. 6.Robert Starbard,Tribal Administrator is hereby authorized to negotiate, administer and execute on behalf of Hoonah Indian Association Grant number 7081161 for the Hoonah Biomass District Heating Loop and to negotiate,execute,and administer any other documents,agreements,and contracts required under or related to the Grant Agreement including subsequent amendments. PASSED AND APPROVED BY On September 15,2015. IN WITNESS THERETO BY:SIGNATURE OF PRESIDENT Signature Title Attest:SIGNATURE OF CLERK/SECRETARY Signature Title Page 29 of29 =mye ra V fa |l)ar |{U )NA aus 2]28 gesAlaskaEnergyAuthorityarisJe-5 KAGrantAgreementa .g G-->ENERGY AUTHORITYAmendment Grant Agreement Number |CFDA#Amount of Funds AEA use only 7081161 NA $45,000 Managed _:Pass-thru i Project Code(s)Proposal No.Period of Performance: 402133 RE81161 From:July 1,2015 To:June 30,2017 Project TitleHoonahBiomass District Heating LoopGRANTEE GRANTOR Name Alaska Energy AuthoriHoonahIndianAssociationoyty Street/PO Box Street/PO Box P.O.Box 602 813 W.Northern Lights Blvd. City/State/Zip City/State/Zip Hoonah,AK 99829 Anchorage,AK_99503 Contact Person Contact Person Robert Starbard Karl Reiche,Project Manager Phone Fax Email:Phone Fax Email: 907-845-3703 |907-945-3703 |rstarbard@hiatribe.org 907-771-3017 |907-771-3044 kreiche@aidea.org AMENDMENT 1 Update Scope of Work and Milestones Update Budget Categories Amend ment 1 Continued on next page nt Auth Proj -_Executive DirectorPais86ontyrojectManagerorDesigneeDate|Signature Date |Signature Date F-27-Kdecihs 2/26,fl LK alehRobertStarbard,Karl Reiche,Michael'Lamb,Tribal Administrator Project Manager AEA Interim Executive Director Hoonah Biomass District Heating Loop Grant Agreement #7081161 Amendment #1 Appendix C Grantee Proposals/Scope of work,replace with the following: Hoonah Indian Association (HIA)requested funding to evaluate the technical and financial feasibility foradistrictbiomassheatingsystemforthefollowingbuildings:Hoonah School (possibly including pool),Hoonah School Auto Shop/Carving Shed,Hoonah Boys and Girls Club,Hoonah Indian Association Cookhouse,Headstart Building,Hoonah City Hall and a large privately-owned commercial buildingcontainingapartments,a laundry mat and a thrift store. Hoonah Indian Association is pursuing the construction of a community Greenhouse to be located and operated in conjunction with the community garden that was initiated two (2)years ago.It is proposed that the district heat loop would incorporate this facility as well.HIA plans to own,maintain and operate the proposed district heat loop system as a not-for-profit heat utility.HIA is open to alternative ownership models as may be determined appropriate and desirable through the proposed feasibility planning process.HIA has the support of all of the identified involved parties.The best location can be identified during the feasibility study process.The first deliverable is a list of stakeholders,property owners and project partners,with associated MOU's,project scoping and map of the proposed district heating loop. Fuel Displacement:A key objective of this project is the displacement of diesel by use of local resources which will mean more money stays in the community that would otherwise be used to purchase heating oil.The next milestone and deliverable is 2 years of heating data from each of the proposed entities in the heating district.This information should include the current type of facility heat, boiler type and age,gallons used and the cost for the past 24 months. HIA intends to contract with the National Renewable Energy Laboratory (NREL)to conduct the study, per the attached scope. Grant Match Total Start |End Milestones Reimbursable Tasks Budget Budget |Budget |Date |Date |Deliverables July Aug1|Finalize Award Documents $9 $2.000)$2,000!oo16 |2018 |Copy 3 Design 20,000 3,000 23,000 Meeting ;Nov Nov |Preliminary 3 |Pretiminary report 20,000 3,000 23,000 2016 |2016 |report Dec Dec4|Final report 5.000}2,000}£009)5016 |2016 |Final report Total $45.000 |$10,000}$55,000 Page 2 of6 Hoonah Biomass District Heating LoopGrantAgreement#7081161Amendment#1 Technical Services Agreement Appendix A -Statement of Work Prepared by the National Renewable Energy Laboratory June 28,2016 |.Title of project Hoonah Biomass District Heating Loop Feasibility Study Background Hoonah Indian Association (HIA),the tribal government for the Native Village of Hoonah,Alaska (Hoonah),has a goal of developing energy projects that result in displacement of imported diesel by use of local resources and which promote local economic development.One project being considered by HIA that meets both these goals is a biomass district heat loop for buildings downtown.A total of ten candidate buildings have been identified for potential inclusion in the heat loop,including a community greenhouse to be collocated with a community garden that was initiated two years ago.HIA's head offices are located at 254 Roosevelt St,Hoonah,AK 99829. The National Renewable Energy Laboratory ("NREL")is a laboratory owned by the U.S. Department of Energy (DOE),located at 1617 Cole Boulevard,Golden,Colorado,and managed and operated by Alliance for Sustainable Energy,LLC ("Alliance”)under DOE Contract No.DE- AC36-08GO28308.Under the DOE Office of Indian Energy's Strategic Technical AssistanceResponseTeam(START)Program,NREL worked with HIA to develop a strategic energy plan forthecommunity.The next step in the START project in Hoonah is helping the community develop a priority energy project-in this case is the biomass district heat loop.To leverage the START project with other efforts in support of the biomass project in Hoonah,HIA is seeking a contract with NREL to perform the initial techno-economic feasibility assessment of the district heat loop project concept. Task Descriptions and Deliverables a.Site Review -$7k NREL will visit the project site to better understand the layout of existing equipment and loads,the condition of existing equipment,the tie-in locations for integrating new equipment,and to meet with key individuals regarding project performance issues and to discuss the progress/results from the biomass resource assessment being led by HIA. An analysis of the existing site and facilities needed to support the introduction of a biomass heat loop to the area will be conducted to include:1)new biomass facility site determination,2)fuel delivery and storage requirements,3)fuel lay down or storage area requirements to include equipment and site location,4)estimate of daily fuel requirements,5)determination of best utility connections to existing utility systems,6)estimate utilization of heat from existing diesel engines. Deliverable:NREL personnel will visit Hoonah,Alaska and submit a brief site visit report.A detailed report of findings from the site visit will be included in the final report. Page 3 of6 Hoonah Biomass District Heating Loop Grant Agreement #7081161 Amendment #1 b.Verify Existing Biomass Resources &Costs -$2k NREL will review the work done to date,verify key assumptions and update pertinent information and data.Biomass resource quantities,availability and estimated costs will be reviewed including expected escalation rates during the life of the project.The cost estimates of these resources are critical to the project viability. NREL will explore the feasibility of long term fuel supply contracts in order to ensure the long term feasibility of the biomass heat loop and the long term accuracy of the project economic analysis. Deliverables:NREL will review available information on the local biomass resource and costs and any gaps in information for inclusion in the final report.HIA is responsible for completing the biomass resource assessment in support of this effort and will be responsible for providing NREL the necessary information to complete this task. c.Optimize Facility Size &Location -$15k Using the quality and quantity of the resources available,thermal load requirements and all relevant economic factors,the system design options will be optimized.Design considerations NREL will review will include: 1.Size and location of the biomass boiler(s) 2.Loads to be served by the heat loop,including the option to build a greenhouse which will use excess heat in the shoulder seasons (i.e.spring and fall) 3.Type of woody biomass fuels (chips,pellets or cordwood)for the heat loop,including analysis of wood and sawmill residue availability and delivered cost to biomass system, and delivered cost of pellets or cordwood 4.Integration into the buildings'current heating system,including updates like baseboard improvements to improve the efficiency of the biomass heat loop Integration into the existing heat recovery loop to leverage that existing resource 6.Scalability of the overall system for inclusion of other buildings/projects that may be developed in the future.aData for thermal requirements will be evaluated.Calculations for efficiency and piping heat losses will be performed.Several courses of actions will be developed and a recommended best course of action will be provided to meet these requirements. Deliverables:NREL will develop a preliminary set of design options and their variables.NREL's final report will include the results of this effort and a recommendation for optimal design of the system and explanations for the recommendation.The report will contain several courses of action while identifying the option with the lowest life cycle cost (LCC), d.Preliminary Course of Action Review -$2k NREL will present preliminary courses of actions along with recommendations for the best course of action for implementation of the biomass heating loop.This presentation will be made via an online/virtual platform.HIA will provide direction on selected course of action for inclusion as preferred method in the final report. Deliverables:NREL will present various courses of action along with preferred action. Page 4 of 6 Hoonsh Biomass District Heating Loop Grant Agreement #7081181 Amendment #1 e.Process Flow Diagram -$3k The proposed plant will be modeled showing equipment and flows of all streams.This model will verify the outputs of the preliminary work and provide sizing for the major pieces of equipment. The flow diagram which represents the facility's "heat and mass balance”also provides critical information for construction and cost estimates for construction. Deliverables:NREL provide a graphic flow diagram showing the flows and temperatures for the entire system. f.Cost Estimate &Economic Evaluation -$6k NREL will verify the current cost estimates for major pieces of equipment and the system infrastructure.This includes estimates of the equipment erection and construction.Soft costs will be also be estimated for items like financing,permitting,engineering,legal and others.These parameters will be entered into an economic proforma providing a LCC analysis comparing potential alternatives with the baseline costs.Key parameters like fuel cost will be varied (sensitivity analysis)showing their effect on the project economics. Deliverables:NREL will provide a cost estimate and an economic proforma with additional outputs showing the sensitivity of the project retum for key variables. g.Final Report -$5k NREL will provide a final report detailing all the findings.The report will be submitted as a draft allowing an opportunity for questions and modifications prior to the issuance of the final report. The fina!report will be completed no later than 5 months following the execution of the contract with HIA and receipt of funds. 1V.Schedule e The period of performance is July 21,2016 -December 31,2016 e NREL will participate in monthly calls with HIA and the Alaska Energy Authority to discuss progress Attachment _#1,Financial_Report/Request for Reimbursement Form,replace with the form provided below All other terms and conditions remain unchanged Page5of6 Hoonah Biomass District Heating Loop Grant Agreement #7084161 Amendment #1 |Attachment1 Financial Report/Request for Reimbursement Form THIS REQUEST IS FOR FINAL PAYMENT Lj Grantee:Hoonah Indian Association Project:Hoonah Biomass District Heating Loop Period:to Grant Number:7081161 A B c DeBec E#a-D BUDGET SUMMARY GRANT MATCHING TOTAL PRIOR EXPENDITURES TOTAL GRANT BUDGET BUDGET BUDGET EXPENDITURES |THIS PERIOD |EXPENDITURES BALANCE BY TASK OR MILESTONE F Finalize AwardDocuments $0 $2,000 $2,000 Design 20,000 3,000 23,000 Preliminary report 20,000 3,000 23,000 Final report 5,000 _2,000 7,000 TOTAL $45,000 $10,000 $55,000 BY FUND SOURCES Grant Funds $45,000 $0 $45,000 premee Match -in-"10,000 40 TOTAL $45,000 $10,000 $55,000 Please submit this form and the supporting documentation to aeapayables@aidea.org CERTIFICATION Form requires two original signatures.The person certifying must be different from the person preparing the report.One signature should be the authorized representative of the Grantee organization or highest ranking officer,the other should be the person who prepared the report. i cartify to the best of my knowledge and bellef that the Information reported on both the Financlal Report above and the attached Progress Report are correct.In addition,funds were spent and work performed In accordance with the grant agreement terms and conditions. Certified By: Printed Name: Title: Prepared By: Printed Name: Date:Title:Date: Page6of6 Alaska Energy Authority Grant Agreement ALASKA(=AENERGY AUTHORITY Hoonah,AK 99829 Anchorage,AK 99503 Amendment Grant Agreement Number |CFDA#Amount of Funds AEAuseonly 7081161 NA $45,000 Managed]Pass-thru G3 Project Code(s)Proposal No.Period of Performance: 402133 RE81161 From:July 1,2015 To:December 31,2017 Project Title Hoonah Biomass District Heating Loop GRANTEE GRANTOR Name , Hoonah Indian Association Alaska Energy Authority Street/PO Box Street/PO Box P.O.Box 602 813 W.Northern Lights Blvd. City/State/Zip City/State/Zip Contact Person Contact Person Robert Starbard Karl Reiche,Project Manager Phone Fax Email:Phone Fax Email: 907-945-3703 |907-945-3703 |rstarbard@hiatribe.org 907-771-3017 |907-771-3044 |kreiche@aidea.org AMENDMENT 2 Continued on next page Extend Period of Performance to December 31,2017 trendoaen ¢2 ran,.Executive Director7GanteeAuthorityProjectManagerorDesigneeSeDate|Signature Date |Signature Dateof;s LIL U,Dreube I?|Male ekhzaoaStarbard,Aza Reiche,MichaefLamb,i? Tribal Administrator Project Manager AEA Executive Director Hoonah Biomass District Heating Loop Grant Agreement#7081161 Amendment #2 Appendix C Grantee Proposals/Scope of work,replace milestone table with the following: Grant Match Total Start |End Milestones Reimbursable Tasks Budget Budget |Budget |Date |Date |Deliverables July Aug 1 |Finalize Award Documents $0]$2,000}$2,000 2016 |2016 |Copy 3 |Design 20,000 3,000 23,000 Meeting Nov Nov Preliminary3|Preliminary report 20,000 3,000 23,000 |oo1g |2016 report Dec Dec4|Final report 5.000}_2,000 7,000 |9016 |2017 |Final report Total $45.000 |$10,000]$55,000 All other terms and conditions remain unchanged Page 2 of 2 Daniel L Smith ne ne From:Stout,Sherry <Sherry.Stout@nrel.gov> Sent:Friday,November 17,2017 3:24 PM To:Daniel L Smith;Robert Starbard Ce:Elizabeth M.Hodges-Petty Subject:RE:7081161 -Hoonah Biomass District Heating Loop;November Financial Request All, |apologize for the delay.|had to get back to the building to use the internal systems.The cost was entirely labor hours. The labor hours are as follows: Gregg Tomberlin:238 Jared Temanson:16 Sherry Stout:8 Total:262 hours Does that solve the reporting conundrum? Thanks! Sherry Stout Engineer,Integrated Applications Center National Renewable Energy Laboratory 15013 Denver West Pkwy |Golden,CO |80401 office:303-275-4281 email:sherry.stout@nrel.gov #NREL40:View our accomplishments -----Original Message----- From:Daniel L Smith [mailto:DSmith@aidea.org] Sent:Friday,November 17,2017 4:32 PM To:Robert Starbard <rstarbard@hiatribe.org>;Stout,Sherry <Sherry.Stout@nrel.gov> Cc:Elizabeth M.Hodges-Petty <EHodgesPetty@aidea.org> Subject:RE:7081161 -Hoonah Biomass District Heating Loop;November Financial Request Bob |have not received this yet. Sherry,are you able to get a summary of NREL staff time together on short order?|understand time is of the essence; AEA may have to find alternative to process the reimbursement request. Dan Smith 907-771-3983 DSmith@aidea.org -----Original Message----- From:Robert Starbard [mailto:rstarbard@hiatribe.org] Sent:Friday,November 17,2017 2:19 PM To:Daniel L Smith <DSmith@aidea.org> Cc:Elizabeth M.Hodges-Petty <EHodgesPetty@aidea.org> Subject:FW:7081161 -Hoonah Biomass District Heating Loop;November Financial Request Importance:High Dan- Have you received the information from NREL/Alliance for Sustainable Energy related to their support documentation for the payment breakdown? Bob -----Original Message----- From:Stout,Sherry [mailto:Sherry.Stout@nrel.gov] Sent:Wednesday,November 15,2017 6:17 PM To:Robert Starbard <rstarbard@hiatribe.org> Subject:Re:7081161 -Hoonah Biomass District Heating Loop;November Financial Request That shouldn't be a problem.|can pull staff hours tomorrow to send along to AEA Sherry Sent from my iPhone On Nov 15,2017,at 8:09 PM,Robert Starbard <rstarbard@hiatribe.org<mailto:rstarbard@hiatribe.org>>wrote: Here is the response |received from Dan @ AEAa short bit ago,in which he notes that main AEA concern is that NREL/ Alliance for Sustainable Energy LLC needs to provide a more detailed breakdown of their payments.This despite the contract terms being for payments in advance which we made for a basic fixed price contract.You have to love government contracting. -----Original Message----- From:Daniel L Smith [mailto:DSmith@aidea.org] Sent:Wednesday,November 15,2017 5:24 PM To:Robert Starbard <rstarbard@hiatribe.org<mailto:rstarbard@hiatribe.org>>;Elizabeth M.Hodges-Petty <EHodgesPetty@aidea.org<mailto:EHodgesPetty@aidea.org>> Subject:RE:7081161 -Hoonah Biomass District Heating Loop;November Financial Request Bob, The scope excerpt from the contract should act as a good descriptor of the payouts to NREL/Alliance for Sustainable Energy LLC,Liz will have to confirm this,but I think the main concern is that NREL/Alliance for Sustainable Energy LLC needs to provide a more detailed breakdown oftheir payments.Similar to how HIA provided a breakdown of your time (see attached),it may be simply staff time for the report.The supporting documentation shows how much was paid,and for what project,but AEA needs to see more detail on what the money that went to NREL/Alliance for Sustainable Energy LLC was used for. For my part,|deem the expenses worth reimbursement. Dan Smith 907-771-3983 DSmith@aidea.org<mailto:DSmith@aidea.org> -----Original Message----- From:Robert Starbard [mailto:rstarbard@hiatribe.org] Sent:Wednesday,November 15,2017 4:47 PM To:Daniel L Smith <DSmith@aidea.org<mailto:DSmith@aidea.org>>;Elizabeth M.Hodges-Petty <EHodgesPetty @aidea.org<mailto:EHodgesPetty@aidea.org>> Subject:FW:7081161 -Hoonah Biomass District Heating Loop;November Financial Request Is the contractual description as provided below sufficient,and if so,how do you want this transmitted to be responsive to the reporting request.We previously submitted a series of monthly reports that outlined work performed and were requested to consolidate into a single report which we did. -----Original Message----- From:Stout,Sherry [mailto:Sherry.Stout@nrel.gov] Sent:Wednesday,November 15,2017 4:42 PM To:Robert Starbard <rstarbard@hiatribe.org<mailto:rstarbard @hiatribe.org>> Cc:Tomberlin,Gregg <Gregg.Tomberlin@nrel.gov<mailto:Gregg.Tomberlin@nrel.gov>>;Greeley,Joanne <Joanne.Greeley@nrel.gov<mailtoJJoanne.Greeley@nrel.gov>>;David See <dsee@hiatribe.org<mailto:dsee@hiatribe.org>>;Julie Jackson <jjackson@hiatribe.org<mailto:jjackson@hiatribe.org>>; Elizabeth M.Hodges-Petty <EHodgesPetty@aidea.org<mailto:EHodgesPetty@aidea.org>>;Daniel L Smith <DSmith@aidea.org<mailto:DSmith@aidea.org>> Subject:Re:7081161 -Hoonah Biomass District Heating Loop;November Financial Request Hi Bob, The written scope of work in the contract is as follows: NREL will perform a technical and financial feasibility study of a biomass heating loop in downtown Hoonah,Alaska. Candidate buildings to be included in the analysis include:Hoonah School,Hoonah School Auto Shop/Carving Shed, Hoonah Boys and Girls Club,HIA Cookhouse,Headstart Building,Hoonah City Hall,a large privately-owned commercial building containing apartments,a laundry mat and a thrift store.The feasibility study will also evaluate the potential for connecting a greenhouse to the loop and also utilizing/leveraging existing heat recovery infrastructure. Deliverables: Technical report detailing the technical and financial of a potential biomass district heat loop for downtown Hoonah, Alaska Is that sufficient? Sent from my iPhone On Nov 15,2017,at 6:27 PM,Robert Starbard <rstarbard@hiatribe.org<mailto:rstarbard@ hiatribe.org><mailto:rstarbard@hiatribe.org>>wrote: Sherry/Dan Can I get someone at NREL to respond to the request for the details of the work done to support the second half of the feasibility study so that the tribe can get its reimbursement.With continuing resolutions,the cash flow has become critical so your assistance in turning this around is greatly appreciated. Gunalch?esh Bob <image001.png> From:Elizabeth M.Hodges-Petty [mailto:EHodgesPetty@aidea.org] Sent:Wednesday,November 8,2017 9:41 AM To:Robert Starbard <rstarbard@hiatribe.org<mailto:rstarbard@hiatribe.org><mailto:rstarbard@hiatribe.org>> Cc:Brandi L White <blwhite@aidea.org<mailto:blwhite@aidea.org><mailto:blwhite@aidea.org>> Subject:7081161 -Hoonah Biomass District Heating Loop;November Financial Request Good morning Robert, We received both of the Financial Requests.The November report does not have any detail for the work performed by Alliance for Sustainable Energy LLC.Will you please provide back up for invoice 1006015 that details the work done? Thank you, Elizabeth Hodges |Grants &Finance Administrator Alaska Energy Authority 813 W.Northern Lights Blvd Anchorage,AK 99503 P:(907)771-3902 F:(907)771-3044 <Excerpt from recent Financial report.pdf> DRAFT Feasibility Assessment Biomass Heating Facility Preparedfor: the Hoonah Indian Association Hoonah,Alaska G.Tomberlin J.Temanson S.Stout DRAFT Produced under direction of the Environmental Protection Agency by the National Renewable Energy Laboratory (NREL)under Interagency Agreement and Task No WTSE1000 DRAFT NREL is a national laboratory of the U.S.Department of Energy,Office of Energy Efficiency &Renewable Energy,operated by the Alliance for Sustainable Energy,LLC. Technical Report Contract No.DE-AC36-08G028308 DRAFT 4 NREL NATIONAL RENE '"BLE ENERGY LABORATORY Hoonah,Alaska G.Tomberlin J.Temanson S.Stout Prepared under Task No.WTSE1000 NREL is a national laboratory of the U.S.Department of Energy,Office of Energy DRAFT NOTICE This manuscript has been authored by employees of the Alliance for Sustainable Energy,LLC ("Alliance”) under Contract No.DE-AC36-08GO28308 with the U.S.Department of Energy ("DOE”). This report was prepared as an account of work sponsored by an agency of the United States government.Neither the United States government nor any agency thereof,nor any of their employees, makes any warranty,express or implied,or assumes any legal liability or responsibility for the accuracy, completeness,or usefulness of any information,apparatus,product,or process disclosed,or represents that its use would not infringe privately owned rights.Reference herein to any specific commercial product, process,or service by trade name,trademark,manufacturer,or otherwise does not necessarily constitute or imply its endorsement,recommendation,or favoring by the United States government or any agency thereof.The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States government or any agency thereof. Cover Photos:(left to right)PIX 16416,PIX 17423,PIX 16560,PIX 17613,PLX 17436,PIX 17721is"ae Printed on paper containing at least 50%wastepaper,including 10%post-consumer waste. NREL NATIONAL RENEWABLE ENERGY LABORATORY D RAF I Acknowledgments The author wishes to acknowledge the assistance of the following people:Special thanks to lan Johnson and Robert Starbard for their assistance in getting all data and information required for the report.Bob Deering provided consulting and insight to numerous issues during the study.Thanks to Shaina Kilcoyne with the Sustainable Southeast Partnership provided information regarding potential sustainable technologies.Special thanks to the mayor of Hoonah,Ken Skafflestad for his continued support for the project EXECUTIVE SUMMARY The purpose of this study is to develop,to the maximum extent possible,a comprehensive look at implementing a biomass heating facility in Hoonah,Alaska.Currently,buildings in Hoonah either burn diesel fuel or get heat from an existing CHP plant that generates power using diesel fuel.The recently constructed hydro power has lessened the power generation requirements of this facility which also lessens the amount of thermal energy available for building heat.There is a potential for future hydropower development although there are no projects currently planned. Although there are several biomass technologies besides combustion in the marketplace,combustion is the most reliable and financeable option at this time.The areas in and around Hoonah have plentiful biomass resources to support a project of this size.It is important to note that economies of scale are important for the economic viability of these systems.The larger the heating load,the more economical the project.It costs the same to dig a trench for a 2 inch water line as it does a 1 inch water line but the water flow and heating revenues are almost four times greater.The Hoonah School and pool that are partially serviced by the CHP plant are included as future hydro projects in the area may further reduce the amount of heat available from the CHP plant.A greenhouse was also investigated as an option that could provide an environment for growing food while serving educations purposes as well. The initial effort for this study focused on sizing a facility appropriately to meet the load requirements for the buildings identified to be part of the system.Due to the uncertainty of the future loads for the school and pool,and the local interest in the greenhouse concept,the study now looks at estimated costs and returns based on project size.The outputs are in the form of a sensitivity analysis that looks primarily at local biomass fuel pricing and project size as expressed in total annual heating load. The study found that the best biomass heating option is the utilization of boiler that can bum wood chips and hog fue!while generating hot water for underground distribution to satisfy the heat load.Given the average moisture content of the biomass feedstocks in the area,a more robust boiler was modeled that is capable of handling non uniform fuels with moisture contents up to 60%and a larger variance in fuel quality. The economics of a facility were analyzed using a life cycle cost analysis (LCCA).LCCA assesses all costs throughout the life of the project with revenues showing as negative costs.If the LCCA is positive,the project has a net positive worth.Costs for future years are discounted to a present day value known as net present value (NPV).For this project,there are unknowns regarding the cost of biomass fuel and the future heating load.Therefore a sensitivity analysis was performed to estimate what combinations of biomass fuel costs and total heating load yield a positive NPV.Additionally,subsidies in the form of grants are often available in Alaska for this type of project and could have a substantial positive effect on the overall economics.Another advantage for this project is that it provides a hedge against very volatile diesel fuel prices.The price for diesel is subject to many forces outside of our control but local biomass fuel prices are inherently more stable. The results of the sensitivity analyses are shown below in Tables 1.The biomass fuel cost per green ton is shown on the top of the table and the annual load in MMButu per year is shown on the left.Positive NPV's are highlighted in green and negative values are shown in red.For example,a wood cost of $150 per green ton and an annual heat load of 8,000 MMBtu per year has a positive net worth of $20,000. Table 1:Net Present Value (S thousands) Net Present Value ($thousands) Wood Cost ($/green ton) $100 $110 $120 $130 $140 $150 $160 $170 $180 3,000 -$746 $790 -$834.-=-s«-$878 $922 $966 "$1,010 $1,054 --$1,09 3,500 -$618 $670 -$721.-=s«-$772,-s-s«$824 $8.75 -$926 $977 $1,0294,000 -$489 $548 =$606 =$665 =-$723-« $782 $841 -$899 -$958 4,500 -$358 $424 $490 «=-$556.-S ss -$622-s«$688 $753 -$819 $885 5,000 -$226 -$299 -$372 -$445 -$518 -$591 -$665 $738 $811 Annualload 5,500 BemeesSQh,-$172 $252 -$333 -$413 -$494 $574 -$655 -$735 Serviced 6,000 $44 _$134 -$219 -$307 $394 -$482 -$570 -$658 (MMBtu/yr)6,500 $182 $87 -$198 $293 -$388 -$483 $578 7,000 $321 $219 $116 $14 -$293 -$395 -$498! 7,500 $462 $352 $243 $133 -$196 -$306 "$415 8,000 $604 $488 $371 $254 $137 $214 8,500 $749 $624 $500 $376 $252 $127 $3 "$124 9,000 $894 $763 $631 $500 $368 $237 $105 | 9,500 $1,042 $903 $764 $625 $486 $348 $209 Section 7.0 of the report provides more specificity and includes a sensitivity analysis if a grant were to be included.This analysis is useful as the price of fuel in the area becomes more precise.Once the fuel analysis and negotiations have progressed to a point that the cost of fuel is well defined,the analysis will show the load requirements necessary in Hoonah to make the project positive.A greenhouse could provide fresh produce in an area where it is hard to come by. Acronyms BDT Bone Dry Ton (2000 pounds,also called Oven Dry Ton) British thermal unit Combined Heat and Power Department of Energy Energy Information Agency Green Ton (2000 pounds,consisting of wood with varying moisture content) kilowatt of electricity (unit of electrical power) kilowatt-hour of electricity hour (unit of electrical energy) Thousand Btu per hour 1 thousand Btu 1 million BTU National Institute of Standards and Technology National Renewable Energy Laboratory Operations and Maintenance Pounds per square inch -absolute pressure Pounds per square inch -gauge pressure Request for Proposal A unit of heating value equal to 100,000 BTU United States Forest Service United States Department of Agriculture 1 BACKGROUND at 1.2 ExistiING COMBINED HEAT AND POWER (CHP)SYSTEM. SUMMARY OF ANALYSIS. BIOMASS HEATING SYSTEMwht 3,1 BUILDINGS SERVICED 3.2 THERMAL ENERGY SALES BIOMASS AVAILABILITY AND COSTa 4.1 FOREST RESIDUE AND LOCAL TREE TI 4.2 Icy STRAIGHTS MILL 4.3 BIOMASS FUEL ASSUMPTIONS 4.4 Feepstocx Cost wwno62OWWwWNNH§TECHNOLOGIES 10 5.1 GENERAL 10 5.2 CORD WOOD SYSTEMS.10 $5.3.Wood Cnip SYSTEMS 11 5.4 HOG FuEt SysTEMS 11 5.5 Wood PELLET SysTEMS 11 6 FACILITY MODELING 12 6.1 MODELING ASSUMPTIONS 12 6.2 FINANCIALINPUTS 12 7°PROJECT ECONOMICS.14 7.1 REVENUES FROM OFFSETTING HEATING OIL 14 7.2.Wood FUEL Cost.15 7.3 CAPITAL CosTS 15 7.4 OPERATING CosTs 16 7.5 Economic RESULTS 16 7.6 CREDIT FOR THE AVOIDANCE OF FUTURE EQUIPMENT REPLACEMENT 18 8 PROJECT DEVELOPMENT.18 81 G 18 8.2 Status 18 9 CONCLUSION 19 9.1 SUMMARY OF RESULTS.19 9.2 NEXT STEPS.19 List of Figures Figure 1 -Hoonah Location..........see Figure 2 -Conceptual Facility Layout ................ Figure 3 -Hoonah Daily High and Low Temperature... Figure 4 -CHP Facility Diesel Generators ............ Figure 5 -Underground Piping from CHP Plan' Figure 6 -Proposed Biomass Hot Water Heating System ... Figure 7 -HIA Community Building...ceeeesersseeeereeeeeeeeeeeeeneaes Figure 8 -Apts /Laundry /Thrift Store Figure 9 -Wastewater treatment plant. Figure 10 -Hoonah School Figure 11 -Hoonah Pool ..........cccccscsessssesscesessecetssessseseeceseneserseseets Figure 12 -Greenhouse Audit Tool Climate Locations Figure 13 -Greenhouse Energy Use Figure 14 -Thorne Bay School Greenhouse Figure 15 -Load Coverage Figure 16 -Hoonah Surrounding Area a Figure 17 -Icy Straights Lumbet ............::0:seeeeee Figure 18 -Slab Wood Pile at Icy Straights Lumber Figure 19-Cord Wood Boiler «0.0.0...cece Figure 20-Cord Wood Storage. Figure 21 -Wood Chip Pile... Figure 22 -Hog Fuel .......... Figure 23 -Wood Pellets............... Figure 24 -Costs based on System Size List of Tables Table 1:Net Present Value ($thousands)..........ccccccccsesscsssessssesssssescscsssesssccsesesescacssessesvesencasseacscsescevsvescssecsssuessessessscsesseseasesseeceesseseseeeeuenes Table 2 -Buildings Connected to Proposed Biomass Heat Loop Table 3 -Greenhouse Design Metrics Table 4 -Buildings in the Heating Loop Table 5 -Wood Samples Table 6 -Wood Sample Moisture Content... Table 7 -Wood Sample Moisture Content Table 8 --Wood System Assumptions Table 9:Cost Comparison -Diesel vs.Wood.... Table 10 -Historical Heating Fuel Prices in Hoonah...................- Table 11 -NIST Escalation Factors .............-:cccccsccsecessesessestececsesecesseeseneceseseeneanenssseeasaneneasene Table 12 -Facility Cost Estimates .....0.0.0ccccccccccsssssssessssesesssesessssssescscsncssessencsesesecsssessseseseeseusnssenssesessesenensseneasaesenssaeseeaeserenersensesnaeeeesieess 15 Table 13 -General Economic Assumptions .............:ccccccccscsecesesseccseecesceeeeesecseneacesencatetaensenee ...16 Table 14 -Cash Flow Analysis Example.....17 Table 15 -Sensitivity Table (no subsidies)...............ccsscesesensscescsssesetssceenseneeevensnensertseeenssenes ..18 Table 16 -Sensitivity Table ($1 million subsidy)............ccccsssscsssssssssseeesseeceseesesteccnesesscsecassesseeesessesesecaesteseaesresescssceesssaensaseeeseeeeesaseecansee 18 1 Background 1.1 General Hoonah,Alaska is a native village located on Chichagof Island,on Icy Strait about 30 miles west of Juneau.According to the UnitedStatesCensusBureau,the city has a total area of 8.7 square miles of which,6.6 square miles of it is land. Figure 1 --Hoonah Location Hoonah is the only first-class city on Chichagof Island and the 5th largest island in the United States.Incorporated in 1946 as the City of Hoonah,it began as a Tlingit village.In In 1754,the Huna Tlingit people permanently settled twenty miles south of Glacier Bay,to Hoonah where they subsistence-harvested each summer.Located in Alaska's panhandle in the southeast region of the state,Hoonah has mild winters and rainy summers.” Figure 2 -Conceptual Facility Layout Hoonah,Alaska has a mild humid temperate climate with warm summers and no dry season.The area within 25 miles of this station iscoveredbyforests(49%),oceans and seas (37%),and tundra (14%).?A summary of Hoonah's annual temperatures is shown in Figure 3 below. __cold 70°F May 26 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dee The daily average low (blue)and high (red)temperatuie with percentile bands Ginner band from 25th to 75th percentile,outer band tram [0th to 9th percentile), Figure 3 -Hoonah Daily High and Low Temperature' "https://www.wikiwand.com/en/Hoonah,Alaska http://cityofhoonah.org/community/page/about-us>https://weatherspark.com/averages/33027/Hoonah-Alaska-United-States"https://weatherspark.com/averages/33027/Hoonah-Alaska-United-States DRAFT 1.2.Existing Combined Heat and Power (CHP)System A CHP system is currently operating in Hoonah.The facility's primary purpose is power generation and it contains four diesel generators.Two generators are sized at 475 kW and two are sized at 1 MW for a total of almost 3 MW.The most common operating scenario is to run both small engines in parailel for better efficiency and to get more thermal heat since they are both marine engines. The hydro facility can generate 425 kW at full flow which is more likely in the spring and in the fall.During these seasons,the diesel generators are minimally utilized.This means that very little thermal energy is generated as well. Figure 4-CHP Facility Diesel Generators Photo by Gregg Tomberlin The heat from the engines goes to a heat exchange to heat water that is sent via underground piping to various loads in town including the Hoonah School,pool,a senior citizens facility and a utilities building.Figure 5 below shows the routing of the underground hot water piping.A new biomass heating plant would be located in closer proximity to the town to minimize the costs of the trenching, piping and backfill. fe NS ee bp pwns oe7tae. Figure §-Underground Piping from CHP Plant Image from Google Earth 2 Summary of Analysis 2.1.1 Thermal Users NREL completed the analysis of biomass-fueled hydronic heating systems for downtown Hoonah.Figure 6 below shows the potential biomass plant location potential underground pipe routing for buildings that would potentially use the hot water.The yellow lines denote new piping that would be added as part of the project construction project.The blue lines are the existing lines that now service the Hoonah School and pool from the CHP plant.The optional greenhouse location is shown in the layout below.There may be a desire in the future to tie in additional buildings to the system which may require an increase in line sizing.Changing the line sizing prior to construction would not have a great impact on the overall project pricing. DRAFT Figure 6 -Proposed Biomass Hot Water Heating System A biomass heating plant could be installed downtowna little northwest of the Hoonah School.Buildings initially targeted in theheatingloopwereidentifiedbytheHIAandareshowninaboveinFigure6aboveandinTable2belowalongwiththeirestimated annual heating load. Table 2 -Buildings Connected to Proposed Biomass Heat Loop Annual Heat Load (MMBtu/year) Building Name Base Loading With Pool &|Pool,School &School Greenhouse School Auto Shop/Carving shed 183 183 183 Boys &Girls Club 1,706 1,706 1,706 HIA incl.Cookhouse *183 183 183 Head Start Building 357 357 357 City Hall 336 336 336 Apts /Laundry /Thrift Store ©116 116 116 Waste water treatment plant(s)172 172 172 Hoonah Pool &Gym 7 1,608 1,608 Hoonah School 1,608 1,608 Greenhouse (3,600 sq.ft}831 TOTAL 3,053 6,269 7,100 In addition to buildings identified by the HIA,a greenhouse addition would provide fresh produce to an area where this asset is hard to come by and can serve as an educational tool for the students at the Hoonah School.The Hoonah Pool and Gym are already getting some heat from the existing diesel engine CHP plant.They may be included in a future project however as the amount of heat available from the CHP plant had been reduced due to hydro power generation and its future output is uncertain. NREL did not conduct a full analysis of the biomass fuel supply available to Hoonah.The area has an abundant,sustainable supply of biomass fuel,consisting largely of local mill waste,local forest residue and tree trimming operations locally. 3 Biomass Heating System 3.1 Buildings Serviced Below is a summary of the buildings initially targeted for the biomass heating plant. 3.1.1 HIA Community Building The HIA community building provides offices and meeting rooms for the HIA community.The building is currently heating using a diesel furnace and baseboard heating as shown in the pictures below. Figure 7 --HIA Community Building 5 Level 1 Targeted Commercial Energy Audit -"Hoonah Indian Association Community Hall”June,09,2015,Energy Audits of Alaska.Jim Fowler.£Same EUI used from footnote 4 since no audit was available. 7 Level |Targeted Commercial Energy Audit -"Hoonah Natatorium and Gymnasium”June,12,2015.Energy Audits of Alaska.Jim Fowler. 3 DRAFT 3.1.2 Apartment Building --Laundry -Thrift Store The building below is an apartment building that also has a laundry service on the main floor. Figure 8 -Apts /Laundry /Thrift Store The existing wastewater treatment plant is show below on the left.A new facility is schedule to be constructed in the area shown in the picture on the right indicated by the arrow. Figure 9 -Wastewater treatment plant 3.1.3 Hoonah School and Pool The Hoonah School and pool already receive hot water heating from the existing CHP plant.The underground piping is already installed for hot water supply and cold water return which will save in costs if they can be used.The loads for these two buildings are included in the biomass heating calculations. a toonua = Be Bicea og ail inset Cie aneoerae dent a.Pat ee eS Loenin ted saram 2 ' _a "-een : is nn Figure 10 -Hoonah School DRAFT Figure 11 -Hoonah Pool 3.1.4 Greenhouses The larger the thermal load,the larger the biomass facility required and the more economical the project.There is an economy of scale for most technologies and this is no exception.In order to increase the thermal load while adding value to the project and the community,it was suggested that a greenhouse might be desirable for the City of Hoonah.Greenhouse projects are becoming more popular in Alaska as several have been installed or planned in recent years.Kasaan,Naukati Bay,Thorne Bay and Coffman Cove have all replaced diesel generators with wood boiler systems and are using local wood to heat schools,greenhouses,andbusinesses.*According to the Alaska Energy Authority,10 Alaska schools out of 507 are heated with biomass systems,five of which have operational greenhouse projects.Over the last decade,the Alaska Wood Energy Development Task Group with Renewable Energy Fund grants has worked to encourage the conversion to high efficiency biomass boilers.This guide will build from the existing momentum and recent successes of biomass greenhouses in Alaska Schools.® Greenhouse energy usage is dependent upon the local weather conditions and the type of greenhouse utilized.Energy usage was calculated with the assistance of a software tool developed by Scott Sanford,M.Eng.,a Distinguished Outreach Specialist at the Rural Energy Program at the University of Wisconsin-Madison.The UW-Greenhouse Audit Tool includes weather data from numerous sites but does not currently include Hoonah or Juneau.Based on Figure 12 below,the closest site for comparable weather data is Yakatut Alaska which is about 180 miles northwest of Hoonah. Figure 12 -Greenhouse Audit Tool Climate Locations The economic viability of a project is largely dependent upon the size of the total load.The sizing of the greenhouse is key to this process as it can represent a substantial percentage of the total load.Therefore,a sensitivity analysis was run varying the size and looking at the variance in capital cost,heat usage and the overall project return.The greenhouse sizes analyzed are shown below. *hetp://inab!heast .net/coming-soon-the-alaska-bi heated-greenhc handbook/>http://inab}heast .net/coming-soon-the-alaska-bi heated-greenh -handbook/ DRAFT Table 3 -Greenhouse Design Metrics Annual Heat Length Width |Area (sq.Usage (feet)(feet)feet)(MMBtu/yr) 80 20 1,600 189.82 120 30 3,600 304.43 160 40 6,400 458.35 200 50 10,000 645.16 A relationship is then developed between total greenhouse area and annual heat usage.As shown in Figure 13 below: Annual Heat Usage (MMBtu) 1,600.00 1,400.00 1,200.00 y=0.10124 +44727 Annual Heat Usage 1,000.00 (MMBtu)300.00 oo. 600.00 + 400.00 200.00 0.00 r T r r T 7 0 2,000 4,000 6,000 8,000 10,000 12,000 Greenhouse Area (sq.feet) Figure 13 -Greenhouse Energy Use The greenhouse in the community of Thome Bay is operational and producing vegetable while educating students.In its first year,it produced over 1,200 heads of lettuce using hydroponics and heat from a biomass facility.In addition to lettuce,the greenhouse in Thorne also produces multiple varieties of red,green,bibb and romaine,with plans to expand to herbs like basil.'°The greenhouse is shown below in Figure 14. Figure 14 -Thorne Bay School Greenhouse! 3.2.Thermal Energy Sales The revenues for the biomass heating plant are essentially the savings from not having to burn heating fuel oil when it is operating. Therefore,the key to the financial success depends largely on the current and future forecasted cost of diesel.The economics are discussed further in Section 7.0 but for this study,the diesel price is assumed to be $3.61 per gallon of diesel with an annual escalation rate calculated using values from the National Institute of Standards and Technology (NIST). The buildings that could be serviced by the biomass facility are listed below in Table 4 and the last column shows the annual cost in diesel fuel for heating.For some of the buildings,the gallons of heating fuel used were known and were used (2014 data).For the remaining buildings an Energy Utilization Index (EUI)that estimates the heat use per square foot for the building type was used. EUI's were used for the HIA building,the Hoonah pool and gym and the Apts/Laundry/Thrift Store. '°hitp://2knowabout.blogspot.com/2014/05/in-remote-thome-bay-alaska-students.html"'hup://2knowabout blogspot.com/2014/05/in-remote-thorne-bay-alaska-students.htm! 6 DRAFT Table 4-Buildings in the Heating Loop Annual Heat Annual *Annual load Heating Heating Fuel(MMBtu/year)Fuel Use Cost (5) Building Name (gallons) School Auto Shop/Carving shed 183.60 1,552 $5,595 Boys &Girls Club 1,706.20 12,546 $45,232 HIA incl.Cookhouse *¢183.60 1,552 $5,595 Head Start Building 357.20 2,626 $9,469 City Hall 336.19 2,472 $8,912 Apts /Laundry /Thrift Store fd 116.64 1,225 $4,417 Waste water treatment plant(s)172.10 1,265 $4,562 Hoonah Pool &Gym 1,608.05 13,591 $49,000 Hoonah School 1,608.05 13,591 $49,000 TOTALS 6,271 50,420 $181,782 Using a heat fuel cost of $3.61 /gallon 3.2.1 Operational Inputs 3.2.1.1 Qperation mode The heating plant is designed to operate 24 hours per day and 7 days per week during the colder months.The boiler can turn down to accommodate load variations.Conversations with boiler vendors lead us to setting the design minimum load at 25%of full load.This means that the biomass boiler can handle load fluctuations between the maximum boiler output and 25%of the maximum boiler output.Below this level,the biomass boiler will shutoff and the backup diesel boiler will start up to handle the smaller loads.This will be the case in the summer.Daytime hours during summer months will not require heating.At night however,some heating is required but not enough typically to run the wood heating system so the diesel fired boiler will accommodate these smal!loads.The small blue area in the summer shown below in Figure 15 illustrates this scenario for a fixed annual heat load.The other blue spikes shown below represent times when the biomass boiler is unavailable for maintenance or problems that force it off line. 350,000,000 300,000,000 250,000,000 - , 200,000,000 \= MMBtu/Day Y @ Total Load150,000,000 +oh;®Diesel Load100,000,000 " --50,000,000 . wes «alt) SESEREERSERSSESESRSEESESERERE5Sseea=Sesssez Ss8RESESSSFEETSRTESSEREaesSSSSSSSSESSSSSESSSSSS§SSss Figure 15 -Load Coverage 3.2.1.2 Heating System Availability Availability is the percentage of time that the system is available for use.Unavailable time is from planned maintenance and force outages due to some type of breakdown.If the boiler is off during the summer,any planned maintenance can be performed at that time making the winter time availability better.For this study,a wood heating system availability of 94%was used meaning that 6%of the time when the system should be operating,it will be off due to some difficulty.This is a conservative number and the availability could be higher.The facility is operational for 94%of 8,760 hours (8,059 hours)per year. 3.2.1.3 Fuel Storage capacity Storing fuel is important for a facility so it can remain operational for periods of time when fuel deliveries are not possible such as holidays and long weekends.A fuel storage capacity for 3 days has been chosen for this project to provide a buffer while not increasing the project costs substantially with a large indoor storage building.Fuel storage can be expensive in harsh climates since chips are stored in a building to protect them from the elements and to make reclamation and transport easier.The boiler can bum about 4.5 green tons of fuel per day so 3 days of storage is about 13.5 tons of chips.With an average fuel density of about 20 pounds per cubic foot,13.5 tons would occupy 1,350 cubic feet.A building sized at 2,500 square feet which is adequate space for the boiler equipment and for three days of storage.If the average pile height were 3 feet,the area required would be 450 square feet which is 18%ofthe total building area. "2 Level |Targeted Commercial Energy Audit -"Hoonah Indian Association Community Hall”June,09,2015.Energy Audits of Alaska.Jim Fowler.13 Same EUI used from footnote 4 since no audit was available. "4 Level 1 Targeted Commercial Energy Audit -"Hoonah Natatorium and Gymnasium”June,12,2015.Energy Audits of Alaska.Jim Fowler. 7 DRAFT 4 Biomass Availability and Cost 4.1 Forest Residue and Local Tree Trimming Hoonah Alaska is located in a wooded area where biomass is available from forest management activities.Additionally,the City of Hoonah maintains roads and utilities by clearing and chipping brush on a regular basis.These biomass sources are useful as a fuel although the moisture content can be 50%or more reducing the fuel's heating value.Although this fuel is available,it is prudent to look for other sources that might be more economical or be a better fuel due to lower moisture content or other factors. An in depth resource assessment for forest residues and local trimmings was not undertaken although it is estimated that these resources are substantial for a facility in this size range. Figure 16 -Hoonah Surrounding Area 4.2 Icy Straights Mill A good option for finding biomass fuel can be a local sawmill.The closest sawmill to the proposed biomass plant location is Icy Straights Lumber.Figure 17 below shows the location of the mill relative to the City of Hoonah.The mill is close enough to Hoonah that fuel deliveries would not incur large transportation costs that can often hinder a project's viability. Figure 17 -Icy Straights Lumber The owner of the mill was contacted and has expressed interest in providing waste wood to a biomass facility.The wood available from the mill is a mix of wastes from various processes and consists of various species.Samples were taken from these sources and sent to a lab for analysis.Icy Straights Lumber has a chipper on site and would potentially chip the wood for this project and deliver it to the site with a dump truck.The chipping operation would be periodic reducing the labor costs.A large quantity of fuel would be produced at intervals and stored on site.The mill has room for fuel storage but would have to install some additional infrastructure to achieve covered storage. Table 5 -Wood Samples Sample 'D |Sample Notes Description A Resaw -mix of heartwood &sap _|Chips B Chipper planer pile Chips C Barn -sawdust Planer shavings o*Mile 4 Pit -low grade sample Saturated black muck E Slabwood pile --cedar?Splinters F Yellow cedar -saw blade pile Splinters G Alder -saw blade pile Splinters DRAFT Table 6 -Wood Sample Moisture Content Sample ID Initial Sample Final Sample Moisture Content Weight (grams)Weight (grams)(%,wet basis) A 189.9 125.7 33.81 8 251.0 156.7 37.57 Cc 71.9 60.8 15.44 E 150.4 121.9 18.95 F 100.5 79.3 21.09 G 142.6 106.5 25.32 The owner of the mill was contacted and interest was expressed in potentially supplying a biomass facility with wood chips.The biomass at the mill resides in several different areas and consists of different materials.In order to assess the resource,a representative visited the mill site to engage the owner and take biomass samples for further analysis.Figure 18 below shows the area where slab wood is piled.The slabs and other wood resources at the mill would require chipping which the mill owner could perform. Figure 18 -Slab Wood Pile at Icy Straights Lumber The other areas were sampled as well and the test results for each area are shown below. Table 7 -Wood Sample Heating Value Bag Notes Description poaiahd thins ry bass wet basi Nae(Btu/lb)(Btu/Ib) Re-saw -mix of hardwood &sap |Chips 33.81%15%8,430 5,580 75 Chipper planer pile Chips 37.57%15%8,018 5,006 75 Stab wood pile -cedar?Splinters 21.00%10%8,018 6,334 50 Yellow cedar -saw blade pile Splinters 21.09%40%8,018 6,327 201 Alder -saw blade pile Splinters 25.32%20%8,760 6,542 100 100%$02 Mix moisture content 26.3%Final Heating Value 6,190 The sawdust and planer shavings were not included as potential fuel because they are used as fuel for the mill's dry kiln boiler.The final row shown in the table estimates the moisture content of the mix and the fuel heating value.Moisture content is important because most small boiler technologies require that the fuel doesn't exceed the maximum moisture content.This value is often around 30%moisture.Although the fuel mix from the mill will likely average below 30%moisture,it could exceed this value when chips are coming from the saw blade pile.Additionally,if the fuel from the mill is not the fuel of choice,or if the mill stopped supplying fuel at some point during the life of the project,the replacement fuel would likely be forest residue or tree trimming waste which would have a much higher moisture content.For this reason,a more robust boiler technology was chosen that can handle higher moisture,a wider variance in chip sizing and more bark and ash.This technology choice is discussed further in Section 5. 4.3 Biomass Fuel Assumptions 4.3.1 Biomass Design Basis For the analysis,it was assumed that wood from the mill could be procured but that the system design should accommodate the potential for wetter fuel if the mill wood is not available.The boiler chosen for this application can handle this range of moisture but the assumed value is still important for the design of the system.Since the cost for procuring fuel is typically on a green ton basis,the moisture content plays a critical role in the fuel pricing.Bone dry wood (0 %moisture)will have a heating value of about 8,600 Btu's per pound depending on the wood species.Using an average moisture content of 40%,the higher heating value would be approximately 5,160 Btu's per pound. 4.4 Feedstock Cost Estimating the cost for wood fuel is difficult without performing a full resource study that includes discussions with local fuel providers and forest industry professionals.As with diesel fuel,the cost for wood fuel can change from year to year although fuel supply contracts can be engaged that would assure the price for five years and sometimes longer.Regardless,the cost for wood fuel should be less volatile than diesel fuel costs.Fuel supply contracts may include an escalation factor from year to year but a long term "known”price makes project financing easier and reduces risk.A next step for this investigation would be to perform a resource DRAFT assessment by professionals in this area.This study looks at reasonable estimates for fuel and provides a sensitivity analyses to assess the likely feasibility of a project. From conversations with locals,other Alaskan communities with biomass facilities and references to other studies,it is assumed the cost of wood chips in the area will be approximately $150 per green ton for wood although this number is highly dependent on localissuesincludinggeographyandtopography.A sensitivity analysis is shown in Section 7 illustrating the change in project viabilitywithvaryingfuelcosts.The cost of wood fuel vs.diesel fuel is outlined in Table 5 Technologies 5.1 General Technologies associated with biomass heating include combustion,gasification,pyrolysis,plasma and others.For commercially available technologies,combustion is the most common and the easiest to finance due to its proven track record.While some companies make claims that they have newer technologies that are ready for prime time,there is a risk in implementing them.Projects employing technologies without a history of successful installations can be unreliable and could fail completely.There are some technology companies that have promising products but an extensive guarantee would need to be included with assurance that the company was willing and able to back the guarantee. The most common system for converting solid biomass fuel into energy is a direct-fired combustion system.The fuel is burned typically on a grate to create hot combustion gases that pass over a series of boiler tubes transferring heat into water inside the tubes creating hot water or steam.The combination of the burning apparatus and the heat transfer surface areas are typically referred to as the boiler.There are several wood boiler vendors that can provide technology in this size range.The main difference is the ability of some equipment to process wood fuels that are not within a tight specification.This is particularly true of moisture content variations. Boilers are differentiated by their configuration,size and the quality of the steam or hot water produced.Boiler size is most often measured by the fuel input or the heat output in millions of Btu's per hour (MMBtwhr).Grates are typically stationary (fixed)or moving.Stationary grates are simpler and less expensive due to the lack of moving parts in a hot combustion zone.Moving grates come in many different styles including grates that travel while carrying the fuel through the furnace.Some grates move up and down or back and forth to agitate the fuel creating better combustion,more complete burning of the fuel on the grate,lower emissions and the capability to handle a wide variety of fuel characteristics. For smaller applications as with the project in Hoonah,there are typically three choices of technologies which vary by fuel type,cost and reliability.Most of these heating systems run on cord wood,wood chips,hog fuel or wood pellets. §.2.Cord Wood Systems Cord wood systems utilize firewood as shown below.They come in sizes ranging from small residential up to several hundred thousand Btus per hour.Cord wood systems require someone to manually feed the furnace which means opening the furnace to the atmosphere which can affect efficiency and emissions.The cost of paying someone to keep the furnace full of fuel can be prohibitive. The efficiency of the combustion will also vary depending on the furnace loading.A hot fire with plenty of fuel will bum better than a fire that is burned down and in need of fuel.Cord wood does not bum as efficiently as wood chips or pellets as the fuel does not mix as well with the combustion air due to the size of the logs.Overall,this system is relatively less expensive to buy and more expensive to operate. Figure 19--Cord Wood Boiler'* Cord wood systems are more common for smaller applications for a number of reasons.One reason is storage complexity as shown below.Chips or pellets are far easier to store and transfer.They can be kept in piles or silos. SUSE Figure 20-Cord Wood Storage 'S Biomass Heated Greenhouse Manual.Alaskan Energy Authority.USDA Forest Service16,oehittps:'www.wikiwand.com en Wood fuel DRAFT Given the size of this project and the availability of better wood resources,and the additional labor required,cord wood boilers were not considered for this project. 5.3.Wood Chip Systems As shown below,wood chips are fairly uniform and can be screened to satisfy almost any fuel sizing specification.Wood chips are typically clean with respect to bark,dirt and debris and make for a good quality wood fuel.Chips are usually screened to make sure that there are not too many fines or that there are not large oversized chunks and splinters.This makes the fuel easier to dry,transport, store and convey from storage into the furnace.Wood chips are more expensive than hog fuel but less expensive than pellets. Figure 21 -Wood Chip Pile Attps:www.wikiwand.com en Wood fuel Wood chip systems are very common and similar in technology to hog fuel systems.If clean chipped wood is available that is reasonably homogenous and low in moisture,chip boilers are a great option and reliable as long as the fuel is consistently provided within the manufacturer's specifications. §.4 Hog Fuel Systems Hog fuel is wood that has been processed through a mill resulting in some wood chips.Hog fuel however can also include splintery and stringy material,bark,sawdust,wood chunks,dirt and debris.In colder climates like Hoonah,it can include snow and ice.Hog fuel is not uniform and consistent like wood chips and many types of boilers cannot handle this type of fuel.Hog fuel is typically cheaper than a clean chipped fuel and is easier obtain since it isn't screened or refined to fit a mandated boiler specification.Boilers that can handle hog fuel are usually more expensive however and hog fuel is harder to handle and store as it can be stringy and stick together in intertwined clumps of material. SORRYCeaeetalSRE ae Figure 22 -Hog Fuel The boiler system chosen for analysis in this study is capable of handling hog fuel.This makes the project capital cost a little higherbutallowsthefurnacetohandlemanytypesoffuelifthewoodsourcechangesovertheyears.Without a long term contract with an established wood supplier,this kind of flexibility is important to ensure that the facility can acquire fuel that is not priced so high that it doesn't make sense to operate on a regular basis. 5.5 Wood Pellet Systems The easiest systems to operate are ones that utilize wood pellets.Wood pellets are dry,high in heating value uniform in size and very easy to transfer,store and feed into a furnace.Pellets are commonly stored in silos where they are conveyed using a screw conveyor into a metering bin attached to the furnace.From there,another screw conveyor can meter the pellets into the furnace on demand automatically with very little attention,problems or maintenance.The lower cost of labor is an economic advantage but the cost and availability of pellets can make the project cost prohibitive in many cases. is DRAFT Figure 23 -Wood Pellets Photo by Gregg Tomberlin Wood pellets are not a viable option in Hoonah as there is no pellet manufacturer located nearby and shipping pellets into Hoonah would be very expensive.For this reason,pellet systems were not analyzed in depth. 6 Facility Modeling 6.1 Modeling Assumptions 6.1.1 Technical Inputs As discussed earlier,the fuel type,moisture content and processing are key assumptions for analysis.This affects the boiler efficiency, the fuel usage,fuel cost and equipment sizing.If the project moves to the next phase of investigation,wood fuel resource assessments and contract negotiations with suppliers should be performed to better understand the fuel heating value and cost on a Btu basis. Because the boiler choice is a technology that can handle hog fuel in addition to wood chips,the fuel specification is not prohibitive requiring additional processing costs including screenings to meet the fuel sizing requirements. Table 8 below illustrates key technical assumptions and metrics from the NREL analysis,including diesel energy savings resulting from the installation of the biomass system. Table 8 -Wood System Assumptions Description Value Wood system availability 94% Biomass boiler efficiency 86% Wood heating value -HHV (Btu/Ib)5,160 Average annual wood boiler capacity 75% 6.2 Financial Inputs Due to uncertainty in project ownership structure,project timing and availability of incentives at time of construction,project economics have been calculated without inclusion of any incentives,carbon credits or renewable energy credits (RECs).The following sections present a sample of federal and state incentives that have been available to renewable energy projects,includingbiomass,and CHP installationsin the recent past,and which may be extended to future years. 6.2.1 Federal Incentives for Biomass 6.2.1.1 Active Legislation The following two bills died in the previous Congress.There is currently no pending legislation for biomass thermal energy. S.727 (114th Congress)-Biomass Thermal Utilization Act of 2015 (BTU Act) H.R.1145 (114th Congress)-Biomass Thermal Utilization Act of2015 (BTU Act) 6.2.1.2 Tribal Energy Program Grant _https:_energy.gov savings tribal-energy-program-grant The Tribal Energy Program promotes tribal energy sufficiency,economic growth,and employment on tribal lands through the development of renewable energy and energy efficiency technologies.The program provides financial assistance,technical assistance,and education and training to tribes for the evaluation and development of renewable energy resources and energy efficiency measures.DOE's Golden Field Office solicits,awards,administers,and manages financial assistance agreements. Program funding is awarded through a competitive process.Current program funding opportunities can be found at https://energy.gov/indianenergy/funding.Technical assistance can be accessed at this URL https://energy gov/indianenergy/technical- assistance . Some of the categories eligible for assistance are:Solar Water Heat,Solar Space Heat,Geothermal Electric,Solar Photovoitaics,Wind (All),Biomass,Hydroelectric,Wind (Small) 6.2.1.3 Rural Ene 'or America Program Renewable Energy Systems&Energy Efficiency Improvement Loans &Grants' This program Provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements.Funds can be used for the following: "7 https://www.rd.usda.gov/programs-services/rural-energy-america-program-renewable-energy-sy stems-energy-efficiency 12 DRAFT Biomass (for example:biodiesel and ethanol,anaerobic digesters,and solid fuels) Geothermal for electric generation or direct use Hydropower below 30 megawatts Hydrogen Small and large wind generation Small and large solar generation Ocean (tidal,current,thermal)generation¥YVVYYVYLoan guarantees on loans up to 75%of total eligible project costs and grants for up to 25%of total eligible project costs. Combined grant and loan guarantee funding is available up to 75%of total eligible project costs. Loan guarantee terms are as follows: $5,000 minimum loan amount $25 million maximum loan amount Up to 85%loan guarantee Rates and terms negotiated with the lender and subject to USDA approval Maximum term of 30 years for real estate Maximum term of 15 years for machinery and equipment Maximum term of 7 years for capital loans Maximum term of 30 years for combined real estate and equipment loansvYyvYvYvvYYvY More information can be found by contacting the Alaska State Rural Development Energy Coordinator: Jessie Huff,USDA Rural Development 800 West Evergreen,Suite 201 Palmer,AK 99645-6539 Tel:(907)761-7768 jessie.huff@ak.usda.gov http://www.rd.usda.gov/ak 6.2.14 U.S,Forest Service The U.S.Forest Service offers Wood Innovations Grants'®,The 2017 Request for Proposals focuses on the following priorities: >Reduce hazardous fuels and improve forest health on National Forest System and other forest lands; >»Reduce costs of forest management on all land types;and >»Promote economic and environmental health of communities. 6.2.2 State ofAlaska Incentives 6.2.2.1 Renewable Energy Fund (REF) Alaska's Renewable Energy Fund provides benefits to Alaskans by assisting communities across the state to both reduce and stabilize the cost of energy.The program also creates jobs,uses local energy resources and keeps money in local economies. Managed by AEA,the REF provides funding for the development of qualifying and competitively selected renewable energy projects in Alaska.The program is designed to produce cost-effective renewable energy for heat and power.As the program matures,the quality of proposed projects continues to grow as does the knowledge base for designing,constructing and operating renewable energy projects in Alaska's diverse climates and terrain.Operational REF projects have an overall benefit cost ratio of 2.51 based on total known project cost,of which State funding is only a portion.Investing in renewable energywillprovidepricestabilityandwillsaveAlaskacommunitiesmillionsofdollarsfordecadestocome.” More information can be found at: http://Awww.akenergyauthority.org/Portals/0/DNNGalleryPro/uploads/2017/1/27/REF%20Round*e20X%20Status%20Report.pdf "8 https://www.fs.fed.us/sci hnology/energy-forest-products/wood-innovations-grants?http://www.akenergy authority .org/Portals/0/DNNGalleryPro/uploads/201 7/1/27/REF%20Round%20X%20Status%20Report pdf 13 DRAFT 7 Project Economics NREL has completed a life cycle costing analysis of a new biomass facility and have provided a rough order of magnitude cost estimate for equipment and construction.An economic analysis was performed using a 20-year life cycle proforma showing annual revenues and expenses resulting from the installation and operation of a biomass heating system at various sizes.This section describes the procedure used to analyze the relevant options. In general,the economic advantage for wood energy is the fuel cost.If we assume that the wood fuel is 5,160 Btu's per 1b and costs $150 per ton,the wood fuel is valued at $14.53 per MMBtu.For diesel,if we use $3.61 per gallon of diesel we get a value of $26.51 per MMBtu. Table 9;Cost Comparison -Diesel vs.Wood Description Diesel Wood Cost $3.61 per gallon |$150 per green ton Heating value 136,000 Btu/gallon 5,160 Btu/Ib Cost per MMBtu $26.51 $14.53 This fuel savings of can be used to offset the higher capital and operating costs and to potentially save money over the life of the project. NREL requested quotes from five biomass system manufacturers and vendors to determine costs of the major pieces of equipment, and estimated costs for others.Budgetary quotes were received from two vendors.These costs were used as baseline and variations in the plant size were scaled exponentially to estimate the associated costs.NIST escalation rates for electricity,natural gas and diesel fuel were used in the analysis and key parameters,like fuel cost,were varied as part of the sensitivity analysis to determine their effect on the project economics. 7.1 Revenues from Offsetting Heating Oil The main financial advantage of a biomass system is the heating fuel that is no longer burned.The financial success of the project is largely dependent upon the cost of the heating fuel.Diesel costs have been volatile in recent years making it more difficult to forecast pricing in the future.Table 10 below shows historical prices for heating fuel up through January of this year.January's price is atypically low but may reflect realistic dynamics.Regardless,an average price for a recent period of time is more commonly used. Averaging back ten years is probably not representative so a five year period was chosen as shown in the shaded cells in the table.The value used for the analysis is $3.61 per gallon. Table 10 -Historical Heating Fuel Prices in Hoonah Heating Fuel Heating Fuel Date Price Date Price ($/gallon)($/gallon) Nov-05 $3.41 dan-11 $4.39 Nov-06 $3.28 Jun-11 $5.29 Jun-07 $3.40 Jan-12 $4.50 Nov-07 $4.18 Jul-12 $4.69 Jun-08 $5.38 Jan-13 $4.63 Oct-08 $5.04 Jul-13 $4.69 Nov-08 $4.55 Jan-14 $4.28 Feb-09 $3.50 Jul-14 $4.43 Jun-09 $3.34 Jan-15 $3.68 Jan-10 $3.54 Jul-15 $3.74 Jun-10 54.04 Jan-16 $2.85 Jan-11 $4.39 Jul-16 $3.14 Jun-11 $5.29 Jan-17 $3.12 3 year average $3.61 Source:Alaska Division of Community and Regional Affairs, Research and Analysis Section A conservative approach would be to use $3.12 as this is the most recent number listed but it is also about 23%less than the average price over the last 12 years.Since this metric is so critical,a sensitivity analysis is provided to help understand the ramifications of heating fuel costs and how they affect the economics.As a placeholder for the initial evaluation,the average of the last 3 years was used yielding a price of $3.61 per gallon. 7.11 Fuel Price Escalation Predicting the future cost of diesel heating fuel is critical to this analysis.It is probably the most difficult value to predict,especially for 20 years.There are many conflicting sources and there is a real possibility that none of them are correct.It is important to make our best effort at evaluating the escalation as the economics are very sensitive to this number. For this analysis we have used the 2016 Annual Supplement to NIST Handbook 135,Life-Cycle Costing Manual for the Federal Energy Management Program (FEMP).The annual supplement provides energy price indices and discount factors for use with the Federal Energy Management Program's procedures for life-cycle cost analysis,as established by the U.S.Department of Energy (DOE)in Subpart A of Part 436 of Title 10 of the Code of Federal Regulations (10 CFR 436A),and amplified in NIST Handbook 135. These indices and factors are provided as an aid to implementing life-cycle cost evaluations of potential energy and water conservation and renewable energy investments in existing and new federally owned and leased buildings.The price indices and DRAFT discount factors are calculated with the most recent energy price projections from DOE's Energy Information Administration (EIA)and the most recent discount rates from FEMP and the Office of Management and Budget (OMB)Circular A-94.° The escalation factors uses are for residential distillate oil and are shown below in Table 11. Table 11 -NIST Escalation Factors Calendar |Project NIST %Calendar Project NIST % Year Year Factor change Year Year Factor |change 2018 1 1.15 -_-2028 1t 1.71 1.2% 2019 2 1.30 13.0%2029 12 1.74 1.8% 2020 3 1.41 8.5%2030 13 1.77 1.7% 2021 4 1.48 5.0%2031 14 1.80 1.7% 2022 5 1.53 3.4%2032 15 1.84 2.2% 2023 6 1.57 2.6%2033 16 1.88 2.2% 2024 7 1.59 1.3%2034 17 1.92 2.1% 2025 8 1.62 1.9%2035 18 1.96 2.1% 2026 9 1.65 1.9%2036 19 2.00 2.0% 2027 10 1.69 2.4%2037 20 2.02 1.0% 7.2 Wood Fuel Cost A major factor for the success of a biomass project is the fuel cost.The cost must be substantially less than the cost of heating fuel in order to compensate for the larger capital costs for biomass boilers and associated equipment.Most fuel for small projects is purchase on a green ton basis,If wood fuel at 50%moisture costs $100 per green ton,the cost per dry ton is $200.If the moisture content was 30%moisture,the cost Green logs are harvested and seasoned for about a year to drive off some of the water in the wood making it easier to chip and better to burn in a boiler.Therefore,the cost per ton of green wood is different than the cost per ton of seasoned wood.Further,the cost per ton for chipping is applied to the lower seasoned ton quantity.Table below shows the basic economics around the wood fuel. 7.3 Capital Costs The total cost for the biomass heating project is estimated by including: Equipment Construction Soft costs (engineering,legal,taxes,insurance,etc.) CommissioningYVWVW®A budgetary cost estimate was solicited from numerous biomass boiler vendors who are well known in the industry.Two responses were received and utilized to develop a curve for project costs based on total load since the load has not been defined at this point. Multi-clones were quoted at a particulate matter (PM)concentration of 0.35 pounds per MMBtu.The resulting capital cost estimate for several heating system sizes are shown below.Table 12 below shows the boiler cost estimates for the four sizing scenarios. Table 12 -Facility Cost Estimates Annual Load (MMBtu/year}3,000 5,000 7,000 9,000 Wood Chip Boller Size {Btu/hr)340,000 575,000 800,000 1,025,000 Equipment Costs $340,788 $440,700 $526,316 $605,443 Construction incl.Piping 238,326 276,663 304,457 327,507 Soft Costs 129,894 155,740 175,897 194,059 Contingency 350,130 365,500 373,413 378,903 Total Project Costs 1,059,139 1,238,603 1,380,082 1,505,912 Using these four pricing point estimates,an equation can be generated that estimates system cost based on the system size which is a function of the annual loading.This is shown in Figure 24 below. $1,550,000 $1,450,000 _-™ $1,350,000 a $1,250,000 eaSystemCost $1,150,000 rat ¥=-0.0034x?+114.32x +747478 $1,050,000 Ca $950,000 $850,000 $750,000 r T T T T 1 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Annual Load (MMBtu/year) Figure 24 -Costs based on System Size a:®hitps://www.nist.gov/publications/energy-price-indices-and factors-life-cycl t lysis-150-201 6-annual 15 DRAFT 7.4 Operating Costs In the thermal energy sales model,all of the operations and maintenance costs normally bome by the individual building owner are now borne by the district energy plant operator.Therefore the operation and maintenance costs include nontraditional items such as legal,accounting,insurance,replacement reserves,property taxes and lease payments. The projected operating and maintenance costs include: Wood Boiler 15 minutes per day,visual check on site 1 hour a week for de-ashing 2 hours a month for bearing grease,etc. 2-4 days per year boiler cleaning,1-2 days each,twice per year Fueling is probably 1 hour per delivery to oversee offload (depends on truck type and unloading configuration) 7.55 Economic Results Table 13 -General Economic Assumptions Assumption Value Units Comments Financing -%Equity 100 percent Project life 20 years Project can last longer with proper care Wood chip cost 150 $/green ton Delivered to the site Heating Oil Cost 3.61 $/gallon (yr 2018) Wood chip costs 14.53 S/MMBtu Based on HHV of 5,160 Btu/Ib Wood fuel cost escalation 2.0%$/green ton Heating oil cost Table of %2016 NIST Supplement escalation values Wood chip cost 14.53 $/MMBtu Based on HHV of 5,160 Btu/Ib Diesel fuel cost 25.99 S/MMBtu Based on HHV of 138,700 Btu/gallon Based on these economic assumptions and the technical assumptions,the cash flows for a project of varying size was completed.An example of cash flows at a specific size for 20 years are shown below in Table 14. 16 Table 14 -Cash Flow Analysis Example Yeer umber 0 1 2 3 4 s 6 7 a 9 w 11 12 2B "B 16 7 B 19 2 Year ___2037 2018 2019 2020 2021,2022 2073,2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 MEYPARAMETERS Ancual heat load (MMBtu)9,000 Wood purchased (tons)764 764 764 764 764 764 764 764 764 764 74 764 764 764 Te 764 764 764 764 764 764 'Wood fuel cost (S/ereen10%-ton}$150.00 $153.00 $156.06 $159.18 $162.36 $165.61 $168.92 $172.30 $175.75 $179.26 $182.85 $186.51 $190.24 $194.08 $197.92 $201.88 $205.92 $210.04 $224.24 $218.52 'Annual heat load (MMBtu)9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 2.0%Heating fuel price (S/gat)$3.61 $4.03 $4.56 ae $5.19 $5.36 $5.50 $5.57 $5.68 $5.78 $5.92 $5.99 $6.10 $6.20 $6.31 $6.45 $6.59 $6.73 $6.87 $7.01 $7.08 Heating fuel displ{enttors)$3,161 $3,161 $3,161 $3,161 $3,161 53,161 53,161 $3,162 53,161 53,161 53,161 $3,161 $3,161 $3,161 53,162 53,161 53,161 53,161 $3,161 $3,361 (MEVENUES Diesel fuel savings $214,268 $262,216 $262,711 $275,753 $285,069 $292,522 $296,269 $301,838 =$307,428 =$314,881 «$318,607 =$304,197 =$329,786 =$335,376 $342,829 «=$380,281 $357,734 $365,187 $372,640 $376,366 Salvage vaive 107,066 Total Revenwes >214268 242,218 262,711 275,758 285,069 292,522 296,249 S0La38 907,428 siqens 316,607 24197 329,706 335,376 2aze 380,281 357,734 365,107 3726400 483,438 bpital Cost $1,500,983 Vood Fuel Cost (S/green »)124,648 116,941 119,280 121,665 124,099 126,581 129,112 131,605 134,328 137,015 139,755 142,550 145,401 148,209 151,276 154,201 157,387 160,55 163,746 167,021 20%Labor O&M $10,000 20,600 22,218 23,855 2510 23,185 23,881 4897 5,338 26,095 26878 27,685 2515 29,371 30,252 31,159 32,094 33,087 34,089 35,070 36,122 2.0%Non labor O&M $4,000 8240 9487 8,742 9,004 9274 9552 9839 10,134 10438 10,751 11,074 11,406 11,748 12,101 12,464 12,838 13,223 (13,619 wwe 16449 10%-Utilities $6,500 13,260 13,658 14,068 14,490 14,924 35,372 15,833 16,308 16,797 17,301 17,820 18,355 18,906 19473 20,057 20.659 21,278 21,917 2s 23,281 Assat Management .--:.--::::::::---::: wraurance ---:---::::::::----:: 05%General Excise Tax .--..:--:-::-::.----- Property Tax --------:..::::-:---: Total Operating Expense 1,521,458 156,740 160,304 163,940 167,568 (171,483 175,386 279,382 13472 187,659 191,945 196,334 200,827 205,426 216,135 214956 219,082 224945 730,120 w54s 240,843 Grant Cash Flow -$1,521,458 $87,520 $a1912 $90,767 $108,084 $115,597 $117,136 $116,967 $118,366 $119,768 $222,995 $122,273 $123,370 $124,960 $125,241 $127,873 $130,390 $132,789 $135,067 =$137,222 $242,589 Sensitivity analyses were run looking at varying the annual load and biomass fuel costs.Table 15 below shows the NPV for thesevariableswithnosubsidiestotheproject.The red values are a negative NPV and the green showa positive project value.Forexample,with a $150 per ton biomass fuel cost and a competing diesel fuel cost of $3.00 per gallon,the project NPV is $395,000. Table 16 is the same sensitivity analysis except that the project is starting with a subsidy of $1 million. Table 15 -Sensitivity Table (no subsidies) Net Present Value (S$thousands) Wood Cost ($/green ton) $100 $1210 $120 $130 $140 $150 $160 $170 $180 3,000 -$746 -$790 -$834 $878 -$922 -$966 $1,010 $1,054 -$1,09: 3,500 -$618 -$670 $721 -$772 -$824 -$875 $926 -$977 -$1,02' 4,000 -$489 $548 $606 -$665 -$723 -$782 -$841 $899 $95 4,500 -$358 $424 -$490 $556 $622 -$688 -$753 -$819 -$88! 5,000 -$226 $299 $372 $445 $518 $591 -$665 -$738 $814 Annual load 5,500 ares -$252 -$333 -$413 $494 $574 -$655 -$735) Serviced 6,000 $44 -$131 $219 -$307 -$394 $482 -$570 $65) (MMBtu/yr)6,500 $182 $87 -$198 $293 -§388 $483 $57: $116 $147,000 $321 $219 -$191 $293 $395 -$49: 7,500 $462 $352 $243 $133 -$196 -$306 $415 8,000 $604 $488 $371 $254 $137 $20 $214 $33: 8,500 $749 $624 $500 $376 $252 $127 $121 9,000 $894 $763 $631 $500 $368 $237 $105 9,500 $1,042 |$903.$764 $625 $486.$348 $209 Table 16 -Sensitivity Table ($1 million subsidy) Net Present Value (3 thousands) Wood Cost ($/green ton) $100 $110 $120 $130 $140 $150 $160 $170 $180 3,000 $225 $181 $137 $93 $49 $5 $83 "$1273,500 $352 $301 $250 $199 $147 $96 $454,000 $482 $423 $365 $306 $247 $189 $130 $72 $134,500 $613 $547 $481 $415 $349 $283 $217 $152 $86,5,000 $745 $672 $599 $526 $453 $379 $306 $233 $160 Annualload 5,500 $879 $799 $719 $638 $558 $477 $397 $316 $236Serviced6,000 $1,015 $928 $840 $752 $664 $577 $489 $401 $313 (MMBtu/yr)-_6,500 $1,153 $1,058 $963 $868 $773 $678 $582 $487 $392|7,000 $1,292 $1,190 $1,087 $985 $883 $780 $678 $576 $4737,500 $1,433 $1,323 $1,214 $4,104 $994 $885 $775 $665 $556 |8,000 $1,575 $1,458 $1,341 $1,224 -$1,108 $991 $374 $757 $640 |8,500 $1,719 $1595 $1,471 $1,347 $1,222 - -s«$1,098 $974 $850 $725 9,000 $1865 $1,734 $1,602 $1,471 «$1,389 «$1,208 -«$1,076 $944 $813 9500 |$2,013 .$1,874 _$1,735 $1,596 |$1,457 $1,318 $1,180 $4,041 $902, 7.6 Credit for the Avoidance of Future Equipment Replacement Simple payback analyses however do not capture the avoided costs for the replacement of existing equipment over the life of the plant. Since the existing heating equipment would only be used sparingly going forward,its life is increased which is a savings.Qualifying this savings can be difficult but it is a plus for this type of project. 8 Project Development 8.1 General It is important to understand the level of development required to bring a project to fruition.This Section outlines the key steps required to complete the development of the proposed project and includes some of the documents required to accelerate that process. 8.2 Engineering Status Engineering status is the quantity of engineering completed.The level of effort can be broken down into the basic categories shown below. 8.2.1 Preliminary Design Energy usage data assessed. Various project scenarios identified. Preliminary economics analyzed. Project configuration chosen. Heat and mass balances developed. Permitting requirements and environmental impacts completed. Cost estimate performed for capex and opex (plus or minus 35 percent).vyvYwVYv8.2.2 Front End Engineering Design (FEED) »Site plan and general arrangement drawings. DRAFT >Heat and material balances finalized using actual equipment data.. »Process flow diagrams done for major systems. 9 Conclusion 9.1 Summary of Results This analysis looked at the installation of a new biomass system that could provide hot water heating to the targeted buildings in the City of Hoonah in an efficient and environmentally sound manner.Several biomass technologies exist in this size range including combustion,gasification and pyrolysis.Combustion however remains the best and most financeable option at this time. The net present value of building this facility varies depending on the total load decided upon by the community.The sensitivity analyses serve as a tool to predict the load requirements for an economically positive project.This is the collective value to the users of the heat but does not include ancillary advantages like jobs,resiliency and carbon emissions.Base economic analyses were performed utilizing NIST values for escalation and sensitivity analyses were done showing the variations in fuel costs as the key project metrics. The project payback is estimated to be 8.6 years for a project with a life of at least 20 years.This can also be expressed as a 20 year internal rate of return (IRR).The opportunity for project subsidies could improve these numbers. It should be noted that a larger heat load makes for better project as long as there is enough fuel available to support it at a reasonable price.The long term supply of heat from the CHP plant should be assessed to understand if and when the biomass plant would take over this load.The greenhouse concept was added as a necessary piece of the overall project to make the load larger.If the greenhouse cannot be implemented,the project economics will suffer but could be shored up by adding other buildings or by accessing grant monies to reduce the capital cost.The cost of the greenhouse was not included in the analysis. 9.2 Next Steps The conclusion of this study finds that there is good economic potential for a biomass heating project in Hoonah.The next steps are recommended below: 9.2.1 Biomass Resource Assessment Further negotiations should take place with the Icy Straights Mill.Samples have been taken and it the relative wood types and quantities are known.More serious discussions regarding long term fuel supply cost and delivery logistics should take place. Additionally,local fuel resources should be assessed utilizing the forest service and other entities that deal with forest biomass resources.Thirdly,local tree trimming quantities should be assessed.Once the resources 9.2.2 Hoonah School and Pool Loads The loads at the Hoonah School and the pool are critical to the project.Most of the buildings targeted for this project have small loads.These two loads are substantial and were being serviced primarily by the CHP plant at one time.Since the CHP plant output is reduced and there is a potential for further future reductions,the loads should be evaluated further.The project also assumes that the underground piping around these two loads could be utilized if they were abandoned.This should be confirmed as additional capital costs would be incurred otherwise. 9.2.3 Investigate Greenhouse Potential A community greenhouse can offer some advantages to the citizenry of a remote community like Hoonah.Other Alaskan villages have installed greenhouses and the feedback is mostly positive.The decision to build a greenhouse and the size of the greenhouse need to be agreed upon before the biomass system sizing can be accurately calculated. +)no Tands Ter Biomass [eSource nddi tion al H re 6 lane Acces $7?ACSA,ee,oe ercsecalle tuber 6 nesfi.tF acres 1A We,bog(Overs:Lb Wool cosh 1S Mary PucShran-)Sem lag ko has interest pkaty et woo pred!A supper tins B jomass to ASSESS laneh AccessSeapplyandcastsA$s0c/c,ted -)25-55K f/*Cu [tarol hen tape Coa tercace cealerSefageleTohgreebonse for Q Seen bouse b new 3pace heats J /o hf __pa (f;yeat >Prelinnnary ote Sega /s,fe 2O(7 9SSevera(Vea ls of Rant pa,SraONE 25 roe J b <fn...LORY? fe for Atcw loca Kron fer grea houseLyheeupWw,fh B romoSS Sy cerhonse bard beg KI?? 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