Complete Package

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Table of Contents Alaska Energy Authority AEA-11-005-RE Fund Renewable Energy Fund Round 4 Port Graham Village Council Submittal: “Renewable Energy Development Project” September 15, 2010 Page Cover Letter Table of Contents ...................................................................................................2 Grant Application ..................................................................................................3 Signed Certification Page ..........................................................................32 Grant Authorized Signers ..........................................................................33 Resumes Port Graham Staff ......................................................................................34 Chugachmiut staff......................................................................................36 Consultants.................................................................................................42 Grant Budget Forms, Spreadsheets and Gantt Chart Project Cost/Benefit Worksheet.................................................................53 AEA11-005 Budget Form - Phase III ........................................................55 AEA11-005 Budget Form - Phase IV........................................................56 AEA11-005 Budget Form - Combined Phases..........................................57 Project Spreadsheets AEA11-005 Budget Detail.............................................................58 AEA11-005 Travel Budget Detail .................................................59 AEA11-005 Project Budget Consultants .......................................60 AEA11-005 Gantt Chart – Timeline..........................................................61 Port Graham Village Council Resolution 10-03................................................63 Letters of support/commitment Port Graham Corporation...........................................................................65 Chugachmiut ..............................................................................................66

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Renewable Energy Fund Round IV Grant Application Application Forms and Instructions The following forms and instructions are provided to assist you in preparing your application for a Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA) and the forms are available online at: http://www.akenergyauthority.org/RE_Fund-IV.html Grant Application Form

GrantApp4.doc

Application Cost Worksheet Grant Budget Form

Costworksheet4.doc

Grant Budget Form Instructions

Application form in MS Word that includes an outline of information required to submit a complete application. Applicants should use the form to assure all information is provided and attach additional information as required. Summary of Cost information that should be addressed by applicants in preparing their application. A detailed grant budget that includes a breakdown of costs by milestone and a summary of funds available and requested to complete the work for which funds are being requested. Instructions for completing the above grant budget form.

GrantBudget4.doc

GrantBudgetInstructions4.pdf

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If you are applying for grants for more than one project, provide separate application forms for each project.

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Multiple phases for the same project may be submitted as one application.

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If you are applying for grant funding for more than one phase of a project, provide milestones and grant budget for completion of each phase.

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If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted.

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If you have additional information or reports you would like the Authority to consider in reviewing your application, either provide an electronic version of the document with your submission or reference a web link where it can be downloaded or reviewed.

REMINDER: •

Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials submitted to the Authority may be subject to disclosure requirements under the act if no statutory exemptions apply.

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All applications received will be posted on the Authority web site after final recommendations are made to the legislature.

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In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or proprietary company data be kept confidential subject to review and approval by the Authority. If you want information is to be kept confidential the applicant must: o

Request the information be kept confidential.

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Clearly identify the information that is the trade secret or proprietary in their application.

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Receive concurrence from the Authority that the information will be kept confidential. If the Authority determines it is not confidential it will be treated as a public record in accordance with AS 40.25 or returned to the applicant upon request.

SECTION 1 – APPLICANT INFORMATION AEA 11-005 Application

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Renewable Energy Fund Grant Application Round IV Name Port Graham Village Council

Type of Entity: Federally Recognized tribe Mailing Address

P.O. Box 5510 Port Graham, Alaska 99603 Telephone 907-284-2227

Fax 907-284-2222

Physical Address 5510 Main Street Port Graham, Alaska 99603 Email [email protected]

1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Patrick Norman

Title First Chief

Mailing Address P.O. Box 5510 Port Graham, Alaska 99603 Telephone Fax 907-284-2227 907-284-2222

Email [email protected]

1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer in accordance with 3 AAC 107.695 (a) (1), or A local government, or XX

A governmental entity (which includes tribal councils and housing authorities);

Yes or No

1.2.2. Attached to this application is formal approval and endorsement for its project by its board of directors, executive management, or other governing authority. If the applicant is a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate Yes or No in the box )

Yes or No

1.2.3. As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement.

Yes or No

1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached grant form. (Any exceptions should be clearly noted and submitted with the application.)

Yes or No

1.2.5 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public.

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SECTION 2 – PROJECT SUMMARY This is intended to be no more than a 1-2 page overview of your project.

2.1

Project Title – (Provide a 4 to 5 word title for your project)

Type in your answer here and follow same format for rest of the application. Port Graham Village Biomass Waste Heat Demonstration Project 2.2 Project Location – Port Graham, Alaska is located on the most southern tip of the Kenai Peninsula, in a region known as South Central Alaska. Port Graham is located on the southwestern tip of Alaska’s Kenai Peninsula, along the coast of Kachemak Bay. Port Graham is the second to last village on the peninsula and is located approximately 25 air miles south of Homer, Alaska. The closest neighboring village is the Native Village of Nanwalek that is located 4.5 miles to the west. A state-owned 1,850 foot by 50-foot gravel airstrip sits in the middle of the Port Graham community. The only access to Port Graham is by air or water. Water access experiences periods of stormy weather that creates violent seas that inhibit or prevent water transportation and at times cancels regularly scheduled flights. Port Graham community is predominately of Alutiiq heritage where approximately 85% of the residents are Alaskan native. One hundred thirty-four (135) Sugpiaq people reside in the Native Village of Port Graham overlooking Cook Inlet. Port Graham Village Council is the federally recognized Alaska Native tribal council. The council and the community that is administered by the council desire to maintain their cultural identity and ties. Many members participate in traditional hunting and gathering methods while observing cultural traditions. Households and community buildings in the target area rely, heavily on electricity and heating diesel fuel for energy services.1 The area encompasses 5.9 square miles of land with adjacent village corporation lands extending approximately 20-miles from the community; winter temperatures range from 14 to 27 degrees Fahrenheit; while summer temperatures vary from 45 to 60 degree Fahrenheit. Average annual precipitation is 24 inches.

2.2

PROJECT TYPE

Put X in boxes as appropriate

2.3.1

Renewable Resource Type Wind

XXX Biomass or Biofuels

Hydro, including run of river

Transmission of Renewable Energy

Geothermal, including Heat Pumps

Small Natural Gas

Heat Recovery from existing sources

Hydrokinetic

Solar

Storage of Renewable

Other (Describe) 2.3.2

Proposed Grant Funded Phase(s) for this Request (Check all that apply) Reconnaissance

XXX Design and Permitting

Feasibility

XXX Construction and Commissioning

Conceptual Design 1

Port Graham School is owned and operated by Kenai Peninsula Borough that by singular exception heats the school with propane that they supply.

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2.3 PROJECT DESCRIPTION Port Graham Village Council and Chugachmiut are planning implementation of a 1.45 mmbtu biomass community building heat utility for Port Graham, Alaska. A feasible biomass technology option has been identified to utilize a GARN Boiler to provide hot water heat from a woody biomass fuel source that can be obtained from Port Graham Village Corporation lands on a sustained basis. An existing road system supplies access to the fuel source. The project will provide hot water to heat Port Graham community buildings (New Fire Hall (and accessory building housing a 4-wheeler foam fire trailer), the Old Fire Hall, the Port Graham Health and Dental Clinic, the Port Graham Village Council Office, the Port Graham Museum/HeadStart Center and the Port Graham Corporation Office) at a price sufficiently below the cost of current heating costs using fuel oil to justify investment. Existing community buildings fuel oil heating systems can be retro-fitted to accommodate hot water from the proposed wood-burning GARN Boiler and rely on the existing fuel oil-fired hot water heating equipment for backup. The GARN Boiler community building heating option will provide heat at less than the current fuel oil based system displacing more than an equivalent amount of diesel fuel on a Btu basis. A conceptual design and feasibility review for a central combined heat and power (CHP) biomass-fired plant was completed in 2009. Detailed engineering and economic evaluations were included. Three – phase power grid connection is necessary for a central CHP facility viability. In the mean time, community buildings and homes in Port Graham must rely on expensive fuel oil for heating. The proposed GARN Boiler hot water distribution system will be designed to: • Heat the identified community buildings at significantly lower cost than fuel oil; • Be expandable to connect to additional GARN Boilers and hot water distribution systems to heat homes throughout the Port Graham community, and eventually; • Be connected to a central CHP biomass fired facility. The communities of Port Graham and Nanwalek continue to work towards connecting the communities to Homer Electric’s three-phase power grid system. Three-phase power is essential for long-term economic development for Port Graham and Nanwalek, Alaska. Port Graham Village Council owns a fish cannery that currently cannot operate partly due to the high cost of operating a diesel 3-phase power plant. To be operational and create jobs in the community, a lower cost, 3-phase power source is needed. Fish hatchery operations in Port Graham Cannery and in Nanwalek also require 3-phase electrical power to provide the necessary water flow required by these operations. Nanwalek is also developing a seaside gravel / rock mining site that will require a 3-phase electrical supply for motors to power conveyor belts. These businesses and a central biomass CHP project will provide up to 60-70 seasonal and year-round jobs in the two communities. A feasibility study that included a resource assessment was completed July 2007 through funding from U. S. Department of Energy (DoE) Tribal Energy Program. A conceptual design for a CHP biomass power generating facility was completed in 2009. This Port Graham Biomass CHP Project remains on DoE’s list of projects eligible for development assistance. Its viability depends upon completion of the three-phase connection to Homer Electric’s power distribution grid system. Office of Indian Energy and Economic Development funded an assessment of capacity and capability of the Port Graham Village Council to develop, staff, and manage a biomass utility business. The Building Tribal Energy Development Capacity for the Port Graham Biomass Project2 assessment was completed September 30, 2009, and a final report was submitted late October 2009. The Council currently plans to develop a tribally owned, non-profit entity to operate the biomass CHP utility. This non-profit entity would operate the proposed project to meet costs for capital investment, operations, and maintenance. The 2

Building Tribal Energy Development Capacity for the Port Graham Biomass Project, Margaret King and Associates, Inc., October 2009. AEA11-005 Grant Application

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use of a for profit entity would seek an investment/operating partner to capitalize on available tax incentives and this project may not be of interest since it’s tax incentive is assumed would be of little value and not attractive. If tax incentive is of value, then The Council would develop a for-profit entity.

Port Graham Village Corporation has supplied a letter of intent to enter into a fuel source agreement to supply the proposed GARN Boiler (and eventually a CHP plant). The initial GARN Boiler system will require 120 tons/year of log fuel at 20% Moisture Content (MC). Equipment requirements and options for biomass extraction and fuel preparation are currently being evaluated. Port Graham Corporation currently owns at least 16,000 acres of forested lands that are on operable slopes and within ½ mile of the existing road system. Readily accessible Native Allotments near Port Graham contain 2877 acres of over mature Sitka spruce forest and forest inventory data from the United States Forest Service in the area show there is 75 bone dry tons of biomass/acre in this forest type. The Native Allotments alone contain 215,775 bone dry tons, enough to sustainably provide 2158 bone dry tons/year indefinitely without further development. Port Graham Village Corporation has asked Chugachmiut Forestry and Fire Management to develop a Forest Management Plan (PGVC-FMP) for their timberlands suitable for biomass fuel supply. This PGVC-FMP will use the existing road system to access areas where timber stand improvement projects will be conducted. Windthrow and other damaged trees can be accessed from this road system. Considerations include resource ownership and compensation plan, harvesting planning process and approvals, permitting; employment requirements (number of people involved, payroll, benefits, etc); equipment requirements for harvesting, transportation and inventory management (specifying equipment, and estimating costs and maintenance budgets); and inventory storage requirements. Port Graham Native allotment landowners that desire to participate in the fuel supply for the biomass project will have Chugachmiut Forestry and Fire Management develop a Forest Management Plan (NA-FMP) for their timberlands suitable for biomass fuel supply. Part of this process includes identifying specific Native allotment owners and the amount of timberlands they would like to have participated in the fuel supply process as well as conducting the required NEPA documents for Native Allotments. Staffing requirements are anticipated to initially require 9 - 12 people to stockpile fuel during summer months and to operate and maintain the system during cooler months. Eventually a larger fuel supply extraction crew, or better described as a harvesting crew, will be required to support a central CHP plant fuel requirements. (update) The selected site for the GARN Boiler is the Old Water Plant Building, owned and controlled by Port Graham Village Council. They will own and operate the facility. Nearby community buildings that will be heated by the proposed facility are the New Fire Hall, the Old Fire Hall (and accessory building housing a 4-wheeler foam fire trailer), the Port Graham Clinic, the Port Graham Village Council Office, the Port Graham Museum and the Port Graham Corporation Office. A detailed project cost assessment is currently being completed via a DOE Energy Efficiency Block Grant (EECBG). A final report will be issued in early October. The GARN Boiler will use a locally available, sustainable supply of biomass fuel. Preliminary findings suggest that two Garn Boiler model WHS-3200 are required to satisfy the heating demand for the selected community buildings. Capital investment requirements for the GARN Boilers, the hot water distribution (piping) system, and building retrofit to integrate the new hot water supply with existing fuel oil fired systems is anticipated to be approximately $200,000. Fuel cost savings, diesel vs. wood, is projected to be approximately $45,000 per year at current diesel prices. As diesel fuel cost is expected to continue rising, fuel cost savings could be AEA11-005 Grant Application

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substantially higher. Preliminary findings suggest that the project to heat community buildings will have an eight to ten pay out period. The engineering and financial consulting team is providing realistic economic projection for development and operation of the proposed GARN Boiler system using information provided by the equipment manufacturer, Port Graham Tribal Council and Chugachmiut. An economic model is being refined for the final report to demonstrate the financial viability of the GARN Boiler project. Key input parameters include capital costs, significant operating costs (fuel, supply, labor, maintenance, etc.), and financing considerations (debt / equity ratio, grant support, interest rates, taxes, etc.). Model outputs are return on equity investment, debt service coverage ratio and net present value. An economic model is being developed to assess the financial viability of the GARN Boiler project. Key input parameters include capital costs, significant operating costs (fuel, supply, labor, maintenance, etc.), and financing considerations (debt / equity ratio, grant support, interest rates, taxes, etc.). Model outputs are return on equity investment, debt service coverage ratio and net present value.

2.4

PROJECT BENEFIT

Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel costs, lower energy costs, etc.)

The Port Graham Village Biomass Waste Heat Demonstration Project provides several significant benefits to Port Graham, Alaska, which includes increasing its self-sufficiency by lowering the cost of home heating over the long-term, and gaining locally supplied heat generation and distribution system for this remote community. One regional benefit is this project will enhance the community’s ability to provide alternative sources of heat and conceivably a consistent supply of power to the community. A statewide benefit is this project would serve as a template for biomass for heat/power generation that could be adapted for other small remote Alaska communities with a sustainable biomass resource. Benefits to the community, region and state are briefly described here: 1. Reduced diesel fuel oil consumption for heating the Port Graham Community facilities and housing, 53,100 gallons, and Port Graham Cannery, 25,000 gallons, usage up to 78,100 gallons diesel displaced annually. 2. Community heat and power project brings more local control and local jobs a. Local control of management, operations, and maintenance by independent power producer formed by Port Graham Village Council b. Meaningful employment and training to manage, operate and maintain independent power source c. Local resources used for biomass fuel source provided under a purchase agreement from local landowners, increasing income to the local Port Graham economy. d. Estimated number of direct full time, part-time and seasonal jobs for operation and maintenance of local power is approximately 9-12. e. Sustainable and healthy timberland management through development of a forest management plan that includes woody biomass production. f. Energy supply security that along with the other benefits would have an overall economic benefit to helping sustain the community and preserving their way of life.

3. The Port Graham Village Biomass Waste Heat Demonstration Project could demonstrate economic biomass power for small remote Alaskan communities using a sustainable biomass utilization model, which includes using local resources and labor/employment. Examples of AEA11-005 Grant Application

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benefits are listed: Green house gas benefits since biomass renewable energy projects are considered carbon neutral producers. 2.5

PROJECT BUDGET OVERVIEW

Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of other contributions to the project.

Costs associated with the project have been estimated at $845,805 as summarized below and provided in this application. A detailed project cost assessment has recently been completed using a contractor, T. P. Roche Company, whose team includes a biomass project development and financial consultant, a biomass plant design engineer, and a biomass supply consulting forester. Detailed Resource Assessments Chugachmiut’s Forestry program includes a Geographic Information System (GIS) and forest inventory data from the Native Allotments in the Port Graham vicinity and for the Port Graham Corporation land. We have completed detailed timber typing for all Native Allotments in the area and basic timber typing for the Port Graham Corporation lands. Since the 1980’s various timber cruises and stand exams have been completed and we are working on updating these data. Our data show that there is at least 16,000 acres of Sitka Spruce forest which is in operable terrain within ½ mile of an existing road system to extract biomass from in the Port Graham Corporation ownership. These lands are currently being inventoried using remote sensing techniques, primary 3-P remote sensing biomass cruising, and field inventories which will be completed during the 2010 and 2011 field seas son. Chugachmiut’s GIS and forest inventory data for Native allotments in the vicinity of Port Graham show that there is currently 2788 acres of over mature Sitka spruce which is readily accessible and an additionally 2012 acres of over mature Sitka spruce which can be accessed with additional road construction. Forest Inventory and Analysis (FIA) data from the United States Forest Service FIA program report that over mature Sitka spruce in the vicinity of Port Graham average 75 bone dry tons of biomass per acre. The currently accessible stands contain 215,775 bone dry tons of biomass, enough to sustainably provide 2158 bone dry tons/year indefinitely without further development. The Native Allotments alone can sustainably provide over 4 times the required fuel for the project. Capital Investment is based upon preliminary design and engineering estimates provided by rem Engineering, Inc. Fuel cost estimates are based on prior feasibility study findings and Chugachmiut forester assessments. Fuel usage and online stream factor are based on rem Engineering, Inc. input. Refer to the Cost Benefit Worksheet regarding project payback and the cost benefit ratio. To assess risks associated with the project, rem Engineering, Chugachmiut and Port Graham evaluated project performance sensitivity to key assumptions. Those assumptions are listed and discussed here. Fuel Usage - The system is designed to produce the specified amount of hot water from 260 pounds/hour of fuel. Two factors will determine how much fuel is consumed in the heat generating operation. The first is the systems efficiency. Will the system perform at the efficiency its manufacturer claims? This uncertainty can be limited by evaluating the experience of other customers. Clarifying and detailing manufacturer guarantees will be important to do. The second is fuel quality. Planning and budgeting for fuel with higher moisture content is also important. The system design is based upon fuel quality projections provided to rem Engineering, Inc. by Chugachmiut forestry personnel. If the fuel has higher moisture content or has lower energy content, more fuel will be consumed to reach design production levels. Increasing fuel usage from 260 pounds/hour by 10% to 286 pounds/hour reduces return on equity to 23.34% and reduces debt service coverage ratio to an unacceptable 1.03. Decreasing fuel usage by 10% to 234 pounds/hour increases project return on equity to 37.44% and increases debt service coverage ratio to 1.67. AEA11-005 Grant Application

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Estimated Direct Financial Benefit – The annual cash influx benefit to Port Graham community as measured from the economic mode base case for direct financial benefit is estimated to be $12,000 fuel supply purchase and $15,000 payroll. The fuel purchase expenditure includes labor and stumpage fee to timber landowner for fuel supply. Additional benefits would be what the Tribe would pay for delivered cord wood and what a landowner would get for stumpage. If during the demonstration phase of the project, the Corporation contributes wood, then that would be a tax contribution. Estimated Public Benefit – An economic multiplier in dollars was not developed but an assumption of a 2- to 5-times multiplier on the Estimated Direct Financial Benefit would be a good indicator. 2.6

COST AND BENEFIT SUMARY

Include a summary of grant request and your project’s total costs and benefits below.

Grant Costs (Summary of funds requested) 2.7.1 Grant Funds Requested in this application.

$697,475.00

2.7.2 Other Funds to be provided (Project match)

$148,330.00

2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2)

$845,805.00

Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.4 Total Project Cost (Summary from Cost Worksheet including estimates through construction)

$845,805.00

2.7.5 Estimated Direct Financial Benefit (Savings)

$57,646/year

2.7.6 Other Public Benefit (If you can calculate the benefit in terms of dollars please provide that number here and explain how you calculated that number in your application (Section 5.)

$

SECTION 3 – PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope, schedule and budget proposed in the application.

3.1 Project Manager Tell us who will be managing the project for the Grantee and include contact information, a resume and references for the manager(s). If the applicant does not have a project manager indicate how you intend to solicit project management support. If the applicant expects project management assistance from AEA or another government entity, state that in this section. For this project the Port Graham Village Council will enter into an agreement with Chugachmiut to provide Project Management and Technical Assistance. Mr. Charles Sink will be the Principal-in-Charge of the direction and management of this project. Mr. Sink, Director of Chugachmiut Enterprise and Trust Division has extensive experience in this field. His resume has been attached as an integral part of this application. His management of this project will be complemented by additional Chugachmiut staff including Chugachmiut Forestry Manager Nathan Lojewski and Chugachmiut Facilities and Project Manager Elmer Moonin. Additional resources are discussed in Section 3.4 below.

3.2 Project Schedule Include a schedule for the proposed work that will be funded by this grant. (You may include a chart or table attachment with a summary of dates below.)

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Scope of Work The Scope of Work is in 2 categories, corresponding to Phases 3 and 4 of Alaska Energy Authorities Request for Grant Application, Renewable Energy Fund Grant Recommendation Program Round IV. Phase III project activities include final design and permitting. Phase IV project activities include construction, commissioning, initial operations and reporting. Specific tasks for each phase are described below. Phase III Activities and Milestones Task 1 - Renewable Energy Resource Supply Our objective in this task is to design a dependable fuel supply chain that includes fuel supply agreements, as well as related transportation and inventory management agreements. Specific tasks include: • Develop sample fuel supply agreements and assess necessary contractual terms to develop a sustained fuel supply for the proposed facility. • Review sample fuel supply agreement with Port Graham Village Corporation. • Evaluate fuel supply entity alternatives. Options include creation of a new, for-profit corporation; establishing a new operating division of Port Graham Village Corporation; establishing fuel supply entity as division of new Port Graham utility entity; etc. • Continue to refine and update resource assessment (growth rates, windfall, airport and road projects clearing, allotment owner interest, etc) • Continue to refine and update supply chain economics assessment (capital requirements for equipment, stumpage, labor, fuel cost maintenance, yard-operating costs, etc). • Establish fuel supply entity. • Negotiate fuel supply letter of intent with Port Graham Village Corporation. • Negotiate binding fuel supply contracts. Task 2 - System Design Our objectives in this task are to finalize engineering/design work. Specific tasks include: • Finalize Detailed GARN Boiler and Hot Water Distribution System Engineering and Design – rem Engineering has provided a preliminary design package. The preliminary design package includes turnkey capital estimate and project scope description, equipment specifications, performance data, budget, and schedule. Task 3 -Project Cost Our objective in this task is to refine and finalize all cost estimates in preparation for project implementation. Specific tasks include: • Finalize engineering estimates of project costs. • Refine Project Economic Model - Provide a financial model including capital costs, operating costs, financing terms, etc. The model will be used to evaluate alternative deal structure and financing strategies. Inputs to the model will include investment and operating cost projections, fuel supply cost projections, financing terms, deal structure equity and tax implications, sitespecific operations and maintenance costs (including land, fuel, transport, employee training, salaries and benefits, equipment maintenance, power, water, insurance, etc). The model will serve as a basis for justifying financing package elements including grant expenditures. • Financing and Funding - Refine and update evaluation of available project funding mechanisms, public and private incentives and funding sources for project implementation. Determine optimal financing package elements. • Negotiate letter of intent with providers of financing package elements. • Negotiate binding financing agreements. AEA11-005 Grant Application

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Task 4 – Revenue Stream Agreements and Management Plan • Hot Water Sales - For heat distribution to community buildings, develop the necessary language and terms needed for sales agreement. Negotiate agreements for the sale and delivery of hot water energy from the GARN Boiler, including contract capacity, delivery terms, rates, and payment terms, scheduling, reimbursement of expenses, operation, control, metering of output, maintenance, etc. • Monetization of Renewable Energy Credits - Our objective in this task is to optimize the value of the renewable energy credits associated with GARN Boiler operations. Options include selling “future credits” for cash now to offset investment costs and selling green credits independently as they are created. Agreements will be developed for certification and trading of renewable energy credits created by the project. Task 5 - Site Agreements Our objective in this phase is to eliminate any uncertainty about the site’s suitability to host the proposed project. Specific tasks include: • Site and right-of-ways surveys • Title work • Archeological and endangered species reviews • Lease Agreements • Etc. Task 6 - Permits Our objective in this task is to identify and obtain all permits required for construction and operation of the GARN Boiler system and its associated activities (pipeline installation, fuel harvesting and transportation, etc.). Specific tasks include: • Environmental and regulatory analysis of the proposed plant – Specify emissions and waste disposal characteristics and permitting information requirements. Develop budget, schedule, and action plan. • Refine environmental permitting and regulatory compliance plan for the proposed plant. • Finalize emissions, effluents, and solid waste estimates as basis for permit scoping. • Develop budget, schedule, and action plan. Task 7 - Business and Operating Plan Our objective in this task is to optimize project business structure (ownership, legal structure, tax implications, etc.), system expansion considerations, Village objectives, and project financial performance requirements. Specific tasks include: • Develop project business model (ownership, legal structure, tax implications, etc.). Consider the business form (e.g., tribal utility, partnership, other tribal entity) and evaluate legal issues, contractual requirements, regulatory requirements, management costs and logistics for the formation and operation of each. An important factor in determining he business model for the project will be future system expansion facilitation. Most likely, the initial business model will be either establishing a “Not-for-Profit” Tribal Utility or incorporating the new operation into an existing village department. • Determine optimal deal structure - To enhance economic performance, it may be desirable to structure the project in a way that allows for capturing available tax incentives. Our objective in this task is to optimize the deal structure from a tax and project finance perspective for the development and ownership of the project, including capitalizing on available tax credits. We will structure site control and lease agreements to satisfy the revenue and policy objectives of the Village, while at the same time complying with applicable federal law relating to leasing and fair market valuation and optimizing production tax credits and other potential tax subsidies. Key considerations are allocation of project development risk, preconstruction development budgets, schedules, and milestones; agree upon rights of compensation before and after financing, and terms and conditions for key project issues such as Village employment and preferences. AEA11-005 Grant Application

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•

Arrange for financing - The project may be eligible for BIA and USDA guaranteed loans. Obtaining funds from these sources will require preparation of a comprehensive prospectus document that addresses all aspects of project development, including economic modeling, risk assessment, and risk mitigation plans. We will identify and solicit participation from candidate lenders, and investors and negotiate key agreements to obtain a balance of sustainable and complimentary funding, including grants, loans, and investment funding.

Phase IV Activities and Milestones Task 1 - Renewable Energy Resource Our objective in this task is to insure the timberlands used for the biomass fuel supply are ready for harvesting. We will be in contact with timberland owners regarding the timber harvest schedule and accessibility to the timberlands. In addition, we will confirm the timber harvesting schedule with for the timber harvesting company/village corporation and insure all loggers are properly trained and available. Task 2 - Verify and Update Projections and System Efficiency Prior to and at the time of construction; contracts and agreements, labor, biomass fuel, construction material, equipment delivery, contractors and weather projections will be reviewed and updated for any effects to project budget or schedule. The project team will review the updated projections on the project schedule, budget, resource and trained availability for final verification of project readiness. Any adjustments and remedies will be implemented to complete the project as described. Task 3 - Existing Heating Systems Our objective in this task is to coordinate the integration of the new biomass heating system loop with the selected community buildings heating systems. The selected buildings that will be heated by the proposed facility are the New Fire Hall, the Old Fire Hall (and accessory building housing a 4-wheeler foam fire trailer), the Port Graham Clinic, the Port Graham Village Council Office, the Port Graham Museum and the Port Graham Corporation Office. These buildings are heated by baseboard circulated hot water/glycol mixture heating systems. The biomass boiler heating system loop will become the primary source of heating for these buildings with the more expensive existing fuel oil heating systems becoming redundant back-ups. The two systems will remain separate, distinct systems protected with valves, shut-offs and instrumentation for reliable service to buildings providing important community services such as the health clinic. Protections and monitoring for back flow prevention, excess pressure, freezing, contamination and heating system switching to back-up will be implemented. Task 4 - EPC Contracts / Agreements The overall goal in this task is to maximize flexibility and options, limit liabilities and structure the right combination of contracts based on available funding resources. Alternatives include lump sum, open book cost plus, guaranteed maximum price (GMP) and other types of contracts. Other considerations include favorable terms for payment, equipment deposits and performance bonds and transferring risk associated with construction while still maintaining control over cost and quality. We will build into the construction contracts provisions to assist the sponsor’s various contractors to work together, including management tools and contracting industry standards and procedures to implement a chronological list of all the important steps from initial development to final completion, ensuring that every task and step has an associated person who is responsible for seeing that it gets completed, that accounting is conducted properly and regularly, and that various contractors coordinate to achieve the best result. We will seek opportunities for the village participation in the process (site preparation, foundations, buildings, roads, etc.) Task 5 - Proposed System Design: Construction and Commissioning Our objective in this task is to construct and commission the project. We will develop a construction and commissioning schedule for all phases of construction. We will track physical changes (location, elevation, type) to the heating system loop, interconnection points and boiler and building specifications on as-built drawings in the field. These changes will then be incorporated into a final set of as-built AEA11-005 Grant Application

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drawings for the project once commissioning is complete and the project is in operation. Start-up, commissioning and system operational requirements and manuals that have been developed in phase 3 will be implemented. Specific tasks will include: • Construction Plan and Schedule • Commissioning Plan and Schedule • Modifications to Design during Construction Task 6 - Staffing Plan Finalize workforce plan for recruiting and managing personnel for facility construction, operation, and fuel supply collection and management. Document Plant Manager qualification requirements to support recruiting plan. Develop detailed operator qualifications package and job descriptions for all employees. Complete training program design. Hire employees to staff the boiler house as well as fuel harvesting operations. Specific tasks will include: • Recruiting plan • Complete job descriptions for all employees • Complete training program • Hire employees • Implement training program Task 7 - Project Cost • Tracking project cost against project budget • Propose budget modifications (as needed) • Manage cost overruns Task 8 - Environmental • Environmental monitoring (as required by permitting and determined in phase 3) Task 9 - Permitting • Reporting to permitting agencies (as required and determined in phase 3) Task 10 - Analysis and Recommendations • Update business plans and agreements as needed to account for actual costs • Final project report (as built specifications, drawings, final budget, schedules, and recommendations) • Periodic O&M reports (actual O&M, fuel and equipment costs, energy output, project availability, conversion efficiency, update renewable energy resource assessment) • Community Briefings - Inform Council and community with regular financial and project

developments reports. 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. The Milestones must also be included on your budget worksheet to demonstrate how you propose to manage the project cash flow. (See Section 2 of the RFA or the Budget Form.)

Please refer to Section 3.2 Project Schedule for a full listing of Project Milestones. A Gantt Chart has been attached to this application that was developed based on the aforementioned Project Schedule and the assumption funding will be awarded no later than July 1, 2011. All tasks and milestones have been further cross-referenced with the Project Budget. 3.4 Project Resources Describe the personnel, contractors, equipment, and services you will use to accomplish the project. AEA11-005 Grant Application

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Include any partnerships or commitments with other entities you have or anticipate will be needed to complete your project. Describe any existing contracts and the selection process you may use for major equipment purchases or contracts. Include brief resumes and references for known, key personnel, contractors, and suppliers as an attachment to your application. Organization Description The Port Graham Village Council will enter into an agreement with Chugachmiut to provide Project Management and technical assistance with this project. For Port Graham, Chief Patrick Norman will provide on-site project management to address day-to-day issues that arise, he and Charlie Sink will be working close together on this project to ensure success. Port Graham Tribal Administration will provide the services of Ms. Francis Norman, Tribal Administrator and Dana McMullen, Tribal Bookkeeper to perform reporting and accounting duties for this project. For Chugachmiut, this project will be managed by Charles Sink, Chugachmiut Director Enterprise and Trust Services. He will be supported by Elmer Moonin, Chugachmiut Facilities and Project Manager and Nathan Lojewski, Forestry Manager. The Project Development Team will include a number of consultants with particular expertise in development of biomass-fired power plants. They are T. P. Roche Company (Tom Roche, economic modeling, prospectus, deal structure, facilitation, fuel supply issues, renewable energy credits, contract negotiations, etc), rem Engineering (Doug Latulippe – engineering, EPC issues facilitation), and Ater Wynne (Doug McCourt – technical support on contract negotiations). These supporting organizations qualifications for project participants are provided below. Other specialists may be added to support specific activities as the project proceeds (staffing, training, project financing, etc.). Project Facilitation We will develop “working teams” comprising representatives of the Port Graham Village Council, Port Graham Village Corporation, Chugachmiut and consultant representatives, state officials, and others, as appropriate, to facilitate project development. These work teams will address project specific issues such as commercial terms, permitting, etc. Reporting We will provide monthly status reports and summary reports at each project milestone. Commitments This project has brought together several partners to ensure the success of this project. The Port Graham Village Council, the Port Graham Corporation and Chugachmiut. The Port Graham Village Council has committed a 360 square foot building, with an estimated assessed value of $23,000, to this project to house the GARN boilers. The building used to house the Port Graham Pump House for supplying the community with potable water. This building will require some minor modifications to meet state fire codes. Mr. Walter Meganack, Jr. has provided a letter of support to illustrate the commitment Port Graham Corporation has in this project. Chugachmiut has committed the Health and Dental Clinics to participate in this demonstration project as a show of support to this community so deeply invested in bettering the quality of life for its residents.

3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. As a key project funder, providing AEA with information about the Port Graham Village Biomass Waste Heat Demonstration Project is important to us. In addition to the steps identified below, the Project AEA11-005 Grant Application

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Manager will meet with the AEA COTR to determine if other communication steps are needed, and/or if some of the proposed steps should be replaced with other procedures. 1. Project Manager, with assistance from technical representatives will keep a daily log of operations. Monthly reports will be provided to AEA Contracting Officer’s Technical Representative (COTR) assigned to project to assess project completion rate and project spending. Use of electronic mail (email) and telephone communication will be utilized to extent possible. 2. Project management team will provide Project Manager with verbal and written reports. Written reports will be submitted monthly. 3. Project will include monthly meetings in Anchorage for Phase III projects that will include Project Manager, T. P. Roche Company representatives Tom Roche and rem Engineers Doug Latulippe. Summary of meetings will be made by Project Manager. 4. Project development in Phase IV will include daily site meetings by Site Project Manger Chief Patrick Norman who will record daily log of operations overseeing contractor hired. Doug Latulippe, Biomass Plant Engineer, will visit site periodically during project development along with Project Manager. Reports of site visits will be submitted to Biomass Plant Engineer who will include pertinent information on site development to COTR. Project testing of technology will be overseen by Biomass Plant Engineer who will provide written reports to Project Manager. Project Manager will provide relevant information to COTR.

3.6 Project Risk Discuss potential problems and how you would address them. Potential problems are identified and include a risk assessment and how we would address the risk. Mention of probability will be stated for some potential problems. Potential problems are identified and discussed as follows: 1. Choosing the right size biomass boiler system for this effort is key to the success of the project. The larger the project, the greater “economy-of-scale” and profitability. Project size is limited by fuel supply and demand for hot water produced. 2. Fuel source agreements with local landowners. Port Graham Corporation and willing Native allotment owners are essential for the operation and sustainability of the proposed Port Graham Village Biomass Waste Heat Demonstration Project system. Initially fuel will be provided through an agreement with the Port Graham Corporation, however the amount of fuel to be supplied from each landowner will depend on how successful this demonstration proves to be and by how much volume will come from each landowner and the stumpage price that they expect. A biomass timber cruise is proposed in Phase III tasks to fully assess fuel supply sustainability. Landowners will be presented with an understandable measurement system to determine how much and when biomass will be harvested from their lands. Biomass is usually measured in tons and such measure needs to be demonstrated to the landowners. Some examples of how this could be done include weighing whole trees harvested or chipping trees and weighing the chips produced. Stumpage price may the more difficult negotiation with the landowners. Area landowners during a timber sale late 1980s and early 1990s experienced peak stumpage prices for an export log sale. For Native allotment owners, BIA will be asked to bring one of their BIA Northwest Region log-scalers that have current market knowledge of chip markets and biomass markets to talk to local landowners. Since Port Graham Corporation would benefit from cheaper power, a reasonable assumption is made that they would agree to a more reasonable stumpage fee for the project viability since they would be the majority fuel source supplier and the major benefactor of biomass project. Biomass obtained from Native allotment land could also be milled in a small local sawmill for specialty products. If such wood were sold at higher stumpage fees AEA11-005 Grant Application

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than chips produced, negotiating chip prices with them probably would be more favorable. 3. Along with the fuel source agreement that would settle on the stumpage fee paid to landowners would be the cost of fuel source extraction Port Graham Village Biomass Waste Heat Demonstration Project once this project proves a success. Finding the right combination of machinery to harvest and produce the fuel supply requires research and selection and buying new or used equipment requires economic decision-making. Buying new machinery requires a premium cost where good used machinery that is easier to operate and maintain may be more cost effective. Phase III of this project will look at selection of the right mix of machinery to bring to Port Graham using these criteria and others. 4. The technology manufacturer of biomass technology, in general, guarantees their work for up to one-year. Careful selection of the manufacturer is essential and will be the responsibility of the Plant Design Engineer. In addition to the guarantee and assurances, Phase IV tasks include testing the technology, training of local personnel, and establishment of a long-term relationship with the manufacturer to provide technical assistance and provide scheduled annual maintenance. Phase IV proposes a period of technical assistance be maintained with the Plant Design Engineer to ensure technological operating success.

SECTION 4 – PROJECT DESCRIPTION AND TASKS • • • •

Tell us what the project is and how you will meet the requirements outlined in Section 2 of the RFA. The level of information will vary according to phase(s) of the project you propose to undertake with grant funds. If you are applying for grant funding for more than one phase of a project provide a plan and grant budget form for completion of each phase. If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted.

4.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available. Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be available for the market to be served by your project.

Extent and amount of energy resource available Port Graham Village Corporation is the major landowner in the area. Shown in the U. S. Department of Energy feasibility study for Port Graham Village Council and Chugachmiut, The Potential for Biomass District Energy Production in Port Graham, Alaska shows an estimated available biomass of 250,000 tons of utility grade or less quality wood within the Port Graham Corporation road system. This is enough wood for 50-years yielding approximately 5,000 tons per year. An additional amount of wood would be obtained from Native allotment owners adjacent to the road system. It is also anticipated that the State Department of Transportation and U. S. Federal Aviation Administration sponsored Nanwalek and Port Graham Airport Project proposed for construction approximately 2012-14 will make approximately 8,500 tons3 biomass from 106 acres of land (estimated for airport foot print and road clearing to Port Graham and Nanwalek) made available in the clearing process. In addition, opening the road between Port Graham and Nanwalek would allow additional Native allotment owners and English Bay (Nanwalek) Village Corporation timberlands accessible. English Bay Corporation timberlands were “high grade” logged late 3

Based on estimated U. S. Forest Service Packee‐data_request.pdf; Kachemak Bay Estimated Biomass  Per Acre of Forest Type and Ownership Category, tons per acre for Sitka Spruce that has a mean of 81  tons biomass per acre of mature forest land Port Graham, Alaska area. 

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1980-1992 leaving a forest of utility grade wood or less along their road system. Estimated tonnage available from the Native allotments and English Bay Corporation lands as a biomass Sitka spruce woody fuel source would more than double Port Graham Corporation accessible biomass fuel supply, although that estimate has not been calculated using similar technology as reported in the feasibility study and therefore a stated estimate is not made here. However, the estimated tonnage required by this proposed project is approximately 160 tons biomass per year. The additional acreage that would be available and accessible is more than enough to supply on a sustainable basis. English Bay Corporation timberlands also have an existing road system except between the community of Nanwalek and their existing road that is approximately two miles distance. Nanwalek IRA Council is received funding from BIA Indian Reservation Roads Program to develop this connection. Current road building construction is planned to start 20104. Port Graham Village Corporation has asked Chugachmiut Forestry and Fire Management to develop a Forest Management Plan (PGVC-FMP) for their timberlands suitable for biomass feedstock supply. This PGVC-FMP will use the existing road system to access areas where timber stand improvement projects will be conducted. Windthrow and other damaged trees can be accessed from this road system. Considerations include resource ownership and compensation plan, harvesting planning process and approvals; employment requirements (number of people involved, payroll, benefits, etc); equipment requirements for harvesting, transportation and inventory management (specifying equipment, and estimating costs and maintenance budgets); and inventory storage requirements. Chugachmiut’s Forestry program includes a Geographic Information System (GIS) and forest inventory data from the Native Allotments in the Port Graham vicinity and for the Port Graham Corporation land. We have completed detailed timber typing for all Native Allotments in the area and basic timber typing for the Port Graham Corporation lands. Since the 1980’s various timber cruises and stand exams have been completed and we are working on updating these data. Our data show that there is at least 16,000 acres of Sitka Spruce forest which is in operable terrain within ½ mile of an existing road system to extract biomass from in the Port Graham Corporation ownership. These lands are currently being inventoried using remote sensing techniques, primary 3-P remote sensing biomass cruising, and field inventories which will be completed during the 2010 and 2011 field seas son. Chugachmiut’s GIS and forest inventory data for Native allotments in the vicinity of Port Graham show that there is currently 2788 acres of over mature Sitka spruce which is readily accessible and an additionally 2012 acres of over mature Sitka spruce which can be accessed with additional road construction. Forest Inventory and Analysis (FIA) data from the United States Forest Service FIA program report that over mature Sitka spruce in the vicinity of Port Graham average 75 bone dry tons of biomass per acre. The currently accessible stands contain 215,775 bone dry tons of biomass, enough to sustainably provide 2158 bone dry tons/year indefinitely without further development. The Native Allotments alone can sustainably provide over 4 times the required fuel for the project. Port Graham Native allotment landowners that desire to participate in the feedstock supply for the biomass project will have Chugachmiut Forestry and Fire Management develop a Forest Management Plan (NAFMP) for their timberlands suitable for biomass feedstock supply. Part of this process includes identifying specific Native allotment owners and the amount of timberlands they would like to have participated in the feedstock process. The feedstock extraction crew, or better described as a harvesting crew, is anticipated to have minimum requirement of three to four employees working an approximate 7-8 month season. Harvesting could be shortened with addition of employees and equipment but would add cost and make a shorter season for the crew.

Pros and Cons proposed energy resource versus other alternatives The following section looks at other renewable energy propagation systems and their suitability to create the desired heat and power for Port Graham and neighboring communities of Nanwalek and Seldovia, 4

Nanwalek IRA Council 2008 Five‐Year Strategic Plan, Nanwalek IRA Council, Page 2, September 2008. 

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Alaska. This project proposes use of biomass CHP system while other proven renewable energy projects exist and some of those are presented below. New emerging technologies are not addressed because seeking funding for un-proven systems is generally not allowed in funding proposals. The discussion below starts off with addressing the existing status quo power delivery system and the advantages and disadvantages of upgrading the system to 3-phase power delivery and interconnection. 1. State of Alaska has proposed that wood heat is the only cost effective alternative use of woody biomass. It is certainly estimated to be the most cost effective although in practice what we have seen become of some wood heat only projects in the state is the system worked but several projects have not been sustained for various reasons. Woody biomass for CHP does have limitations on feed stock availability over the life of the project and faces economy of scale on obtaining and producing the woody biomass feedstock. By including the Native village corporations with their extensive fuel source and road infrastructure, long-term fuel source agreements that would utilize lower grades of wood and whose extraction could help with forest improvements of existing stands could be a symbiotic relationship. Port Graham Corporation needs the benefits of three-phase power, heat and cooling for cold storage capabilities of a larger than community only needs for heat and power. Port Graham’s hatchery project and Nanwalek’s hatchery project and material rock source site development also have the need for inexpensive sources of power. In coordination with the local woody biomass CHP plant business, this group could conceivable control fuel source costs. Controlling fuel source residual costs could help alleviate the relative high cost of fuel source extraction and production. 2. Many sites across Alaska and elsewhere prefer development of wind power technology. Although wind source studies have not been conducted in the area, general observations are that wind is intermittent, variable, and tends to gust during fall to early spring. By study, intermittent winds are not reliable sources of power to the extent that State of Alaska generally proposes wind power backed by diesel power generation. It is assumed that wind tower generation has a higher capital investment that the woody biomass project proposed. However, if the upgraded powerline is installed, adding more power through wind generation to the grid system and local use could make economic sense. Woody biomass power generation has shown reliable at sustained loads for 11-months, 2-weeks out of each year. Wind generation in comparison cannot demonstrate such reliability except in steady wind locations. HEA says they would have load balancing problems associated with wind power. Current thinking in use of wind technology is to direct excess power to heating water storage systems and using diesel power or battery storage during low wind periods. Port Graham’s U-shaped valley and variable and turbulent wind may cause maintenance problems for wind towers. If these wind towers were of 1-megawatt power generation size or larger, then repair and maintenance of these towers that requires large equipment and expensive bearings and other maintenance and replacement apparatuses may become cost prohibitive. 3. Hydropower is a reasonable alternative except for capital cost for development. There was a U. S. Forest Service sponsored study conducted north of Port Graham Bay on a small stream for hydroelectric development. Power output was undetermined although assumed would have small scale power but cost was estimated at $7 million in 1988 dollars without power line or road access development. 4. In stream generation and tidal power projects is deemed by Port Graham Village Council and are communities to risky to salmon fish stocks that venture into Cook Inlet and into Port Graham’s and English Bay Rivers. Community has expressed concern for their subsistence and economic resource impact of possible effects on these stocks by such technology. 5. From Port Graham’s hatchery operation or possible cannery operation fish oil could be derived from fish waste. Port Graham’s feasibility study covered this option and recommends fish oil be added to biomass fuel to enhance Btu output of biomass.

6. Port Graham Bay was the original site of the first Russian American coal mine located at Coal Cove along the north entrance to the bay. The coal is sub-bituminous with a low sulfur content but high water content. Mineshafts are said to have been flooded by saltwater from under Cook Inlet where the AEA11-005 Grant Application

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mineshafts lead. A modern assessment of this resource was made but unclear of how accessible remaining source and amount of resource could be available. 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. Currently, Port Graham residents heat their homes and community buildings with expensive diesel oil that must be barged in which is then sold through the Port Graham Corporation. Heat is generated individually by home based hot water boilers; a similar arrangement produces heat for the community buildings under consideration for this project. Age and efficiency of this equipment varies from home to home and building to building, maintenance is dependent on itinerant service men, usually provided by the regional housing authority. 4.2.2 Existing Energy Resources Used Briefly discuss your understanding of the existing energy resources. Include a brief discussion of any impact the project may have on existing energy infrastructure and resources. There are two existing energy resources supplied to Port Graham and Nanwalek, Alaska. The first is the single-phase 220-volt electrical power supplied by Homer Electrical Association. The second is the fuel oil, number 2 diesel, supplied for home and community building heat except for the two schools that use propane for heat. A brief description, discussion, and impact on these resources are discussed as follows: Heat is currently supplied by fuel oil obtained by Port Graham Corporation and sold at cost with no holding costs applied. Port Graham Corporation feels that this is a cost burden that they cannot sustain and welcome this woody biomass CHP project in hopes that it will displace this burden. Port Graham school is heated by propane that is barged into the communities. Left over fuel from the end of a school year is vented into the atmosphere. The Kenai Peninsula Borough School District pays for the propane and delivery to these two communities. The borough would need to be approached to see if they would be willing to convert to biomass heat and/or power rather than trying to maintain the propane system. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers.

The Port Graham Village Biomass Waste Heat Demonstration Project proposes to supply hot water to several community buildings for heat. Existing systems for the buildings are individual diesel fuel boilers heating hot water base board heat for each building. Proposed system will displace use of diesel fuel for these buildings and thus reduce the amount of diesel fuel used in the community. Port Graham Corporation over the past decade has supplied diesel fuel to the community at cost by not adding a markup for-profit or inventory carrying costs. One unintended consequence that would need to be monitored is the effect on diesel fuel costs per gallon as a result of reduction in volume used in the community in regards to current fixed transportation costs. One fixed transportation cost of note is the barging of the fuel from Homer, Alaska to Port Graham that is significant and would not reduce because of less fuel hauled to Port Graham if this project would reduce diesel fuel use because the barge company has a fixed price for delivery to Port Graham. Also, reducing volume of fuel purchased could affect cost of fuel wholesale price by fuel distributor. Both of these seeming benefits of using less diesel fuel could increase cost of diesel fuel in the community by an unknown measure. Port Graham diesel fuel customers are cost AEA11-005 Grant Application

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sensitive given their overall level of prosperity and if such change to diesel fuel costs were to occur would need to be monitored. Port Graham energy customers would view use of biomass from two seemingly opposite points of view. The common negative impact is the harvesting of wood because previous timber harvesting by Port Graham Corporation using a clear-cut style harvest system has left a poor impression on residents of Port Graham regarding use of biomass resources. The positive viewpoint includes the creation of local jobs and use of local resources for the benefit of the community. Project development and operation would need to educate, explain, and demonstrate benefits of the project seeking support of energy customers and community members. Project is designed to deliver heat to community buildings and would serve as a demonstration for use of local biomass as an energy alternative. Residential energy customers that would be in proximity of proposed project could, at their cost election, tie into the heat loop system. If some or all of these potential residential customers were incorporated into the proposed project, they could help reduce costs and be shown to benefit local hire and use of local resources. However, to tie into the system would be an expense that most of these customers may not elect due to general economic conditions of most of these potential energy customers. Whereas the existing system would be displaced it would not be vacated all together, at least until such time the new system is proven to be feasible both economically and practically. The existing systems will be needed until such time as a back-up/failsafe due to the remoteness of the community. The displaced system, although redundant, would make the community buildings and homes safer. The diesel fired boiler system is compatible with a hot water heat loop system because of the hot water base board heat used in these buildings require only a zone valve adaptation. An additional zone valve would be installed to provide an automated system such that the biomass based hot water system, if it were shut down or not maintaining sufficient heat, the existing diesel fired system would back-up a building or resident’s heat needs. 4.3 Proposed System Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, and environmental issues. 4.3.1 System Design Provide the following information for the proposed renewable energy system: • A description of renewable energy technology specific to project location • Optimum installed capacity • Anticipated capacity factor • Anticipated annual generation • Anticipated barriers • Basic integration concept • Delivery methods

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GARN WHS Features and Benefits Features • • • • • • • • • • • • •

Integrated Combustion Non-Pressurized Thermal Storage Double Weld Construction Secondary Combustion (Gasification) Chamber 5 Pass Heat Exchanger Large Insulated Loading Door Double Lock Safety Handle Hot Water Return (HWR) Dispersion Tube Manway Access Induced Draft Fan Air Cooled Door Combustion Air Supplied from Outside 30 Years of Proven Technology

Benefits • • • • • • • • • • • • •

Safe and Certified to be Installed Indoors No Overnight Loading or Fire Required Long Life, Low Maintenance Construction Reduced Wood Use Low Emissions Easy to Load Fuel Chamber Cool to the Touch Loading Door No Smoke in Your Face when Reloading Fuel Easy Maintenance Simple Part Replacement Anodes with Water Treatment Minimize Corrosion Demonstrated Longevity Available Electric Backup

GARN WHS Design Schematic

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•

• • • • •

Combustion air is drawn directly from outdoors through an internal air inlet tube (A) to the air distribution collar (B). The outdoor air is preheated as it travels through the air inlet tube (A) and the air distribution collar (B). This yields more efficient combustion. A compliant seal on the loading door (C) prevents room air from entering the combustion chamber (E). The loading door is insulated to prevent heat loss and includes an air-cooled heat shield to minimize hot surfaces near the user. Combustion air from the collar (B) flows through upper and lower nozzles (D) into the combustion chamber (E). Additional air from the upper nozzle is mixed with hot gases from primary combustion before entering the ceramic secondary combustion chamber (F). Within the ceramic chamber, smoke, creosote and particulates are burned in a very turbulent, horizontal gasification process at temperatures near and above 2000 ºF. After exiting the secondary combustion chamber, the hot gases are drawn through a 5-pass tubular heat exchanger (G) transferring their heat to the water in the tank. The cooled gases are then drawn into the Draft Inducer Fan (H) and pushed out of the exhaust pipe (I) at temperatures less than 350 ºF.

GARN WHS Technical Specifications Model

WHS 1500

WHS 2000

WHS 3200

Width in Inches 72" 72" 86" Height in Inches 77" 77" 93" Overall Length in Inches 117" 141" 187" Recommended wood Length 24"-32" 24"-32" 32"-48" Approx. Weight Empty in Pounds 3200 3700 7500 Approx. Weight Filled in Pounds 15,400 19,000 34,500 Approx. Storage in Gallons 1,420 1,825 3,200 Firebox Length in Inches 41" 41" 50" Firebox Diameter in Inches 25" 25" 40" Btu's Stored (120°-200°) 920,000 1,272,000 2,064,000 Btu/hr Burn Rate* 350,000 425,000 925,000 Btu's/degree of Water Temp Rise 11,500 15,900 25,800 *Burn rate is based upon lab testing utilizing White Oak, 24 inch length, 25% moisture content fuel, and reloading once per hour. Burn rate will vary with wood type, moisture content, size and reloading frequency. The burn rate IS NOT THE BTU OUTPUT. The max output is approximately the burn rate multiplied by the efficiency which is 75% for all WHS units.

4.3.2 Land Ownership Identify potential land ownership issues, including whether site owners have agreed to the project or how you intend to approach land ownership and access issues. Landownership will be maintained by the Port Graham Tribal Council and will not involve private landowners for the Boiler Facility and the majority of the buildings included in this project. The Port Graham Museum/HeadStart Center and Port Graham Corp Office is owned by the Corporation. Both have agreed that there are no outstanding issues related to this project. Port Graham Corporation timberlands would be the main supply for the biomass fuel resource. Port Graham Corporation has indicated that they are willing to negotiate a fuel source agreement. Native allotment owners would need to be approached regarding negotiating a fuel source agreement. Chugachmiut’s Realty and Forestry Programs are charged with serving Native allotment owners in Port Graham and Nanwalek and will be asked to provide assistance to these owners. Some may wish to participate and some may not wish to participate. All landowners in the area will need to be provided more information prior to entering into negotiations. For AEA11-005 Grant Application

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willing landowners such as Port Graham Corporation, a biomass timber cruise will be conducted to more accurately measure available woody biomass supply. Chugachmiut will conduct a similar biomass cruise on willing biomass Native allotment lands. A biomass fuel source extraction plan is intended to be developed in Phase III tasks that will be placed into a forest management plan for each landowner. For Native allotment owners the forest management plan will be incorporated into one document. Once an accurate assessment of fuel is done, the amount and location of the fuel source extraction plan will be presented to the landowners. Stumpage price will also need to be negotiated and is explained in Section 4.1 of this RFA. 4.3.3 Permits Provide the following information as it may relate to permitting and how you intend to address outstanding permit issues. • List of applicable permits • Anticipated permitting timeline • Identify and discussion of potential barriers A list of possible permits needed and environmental concerns is supplied below. • DEC emissions permit, if applicable. However, it is anticipated emissions will not be of an amount or volume that would require a permit although a new emissions standard proposed by EPA may require this permit. • A Coastal Management Permit may be required, especially if effluent were to be run into Port Graham Bay. • U. S. Fish and Wildlife Permits for Taking of Endangered Species may not be required because nesting sites are not located near the proposed site location. • NEPA assessment is not required except for timber harvesting on Native Allotments. The NEPA documentation is being completed on a programmatic level as part of the Native Allotment Forest Management Plan (NA-FMP) • The Alaska Forest Resources and Practices Act must be followed for timber harvesting operations greater than 10 acres. This includes filling and detailed plan of operations (DOP) with Alaska Division of Forestry and receiving their approval before beginning operations. It is not anticipated that harvesting will be larger than 10 acres as a 7 acre harvest will provide more than enough fuel for one year of operation • Obtaining section 404 permits from Alaska Fish and Game for all stream crossings as part of timber harvesting operations. • Kenai Peninsula Borough would need to conduct a tax assessment of site chosen and project development business. • State of Alaska would require filing of a business license and declaration of the type of business developed that would own and operate this independent biomass plant. 4.3.4 Environmental Address whether the following environmental and land use issues apply, and if so how they will be addressed: • Threatened or Endangered species • Habitat issues • Wetlands and other protected areas • Archaeological and historical resources • Land development constraints • Telecommunications interference • Aviation considerations • Visual, aesthetics impacts • Identify and discuss other potential barriers A preliminary National Environmental Protection Act (NEPA) assessment was made in the Port Graham biomass AEA11-005 Grant Application

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feasibility study. This proposal intends to include development of a more detailed NEPA assessment and environmental operation plan for the development and operation of the biomass plant. For the issues outlined in Section 4.3.4 Environmental, a description and discussion of how these will be addressed follows below. •

•

•

•

•

•

Habitat issues o Currently no habitat issues are located within either preferred project site. If water withdrawals are to occur from a stream, a Fish Habitat Permit must be obtained from Alaska Department of Fish and Game. Any wastewater discharge will require permitting from the Alaska Department of Environmental Conservation. Wetlands and other protected areas o The project locations are not in any special habitat or wetlands locations and will be greater than 100 feet in distance from any wetlands so no additional permitting is needed. If the project site were to fall within a wetland a section 404 permit from the US Army Corps of Engineers would be required. Archaeological and historical resources o There are no known archaeological and historical resources located on the project site but the Alaska Costal management Program Standard 6 AAC 80.150 would apply to the project. o Once development begins, if artifacts or other culture evidence is encountered during any phase of the project work shall be stopped. The State historic Preservation Office and the Port Graham Village Council would be notified. Only after documentation and appropriate mitigation measures are approved would the project commence. Land development constraints o The sitting and approval of major industrial facilities and related activities are subject to State Standards 6 AAC 80.070(b). o The site of the project lies within the Alaska Costal Management Zone and more specifically within the Port Graham and Nanwalek AMSA. State Standards 6 AAC 80.040 would apply to our project activities and the project must pass the Costal Consistency Review Process. o A Kenai Peninsula Borough Floodplain Development Permit will be required if the project location lies within the Port Graham mapped flood plane o A State building permit will be required from the State Fire Marshal Aviation considerations o The project location is near the current Port Graham Airport so air quality and building specification will need to be within the Federal Aviation Administration’s regulations. The site located at the end of the runway could not operate until the construction of the new airport is completed. The other site is located 300 feet away from the current airport. Visual, aesthetics impacts o The project location is in and near Port Graham so we do not anticipate any adverse visual or aesthetic impacts except acceptance by community members. The location of the log sort yard has been used, as a log‐sorting yard in the past so no further negative visual or aesthetic impacts will occur. Emissions from the biomass facility could negatively affect visual or aesthetics in the area but the project is required to meet Alaska State Code and EPA emissions requirements. These regulations limit emission requirements will likely be met by the GARN technology and not affect visual aesthetics. Therefore, we do not anticipate any negative visual or aesthetic impacts from the project. • 18 AAC 50.010. Ambient Air Quality Standards • 18 AAC 50.015. Air Quality Designations, Classifications, and Control Regions • 18 AAC 50.055. Industrial Processes and Fuel‐Burning Equipment • 18 AAC 50.075. Wood‐Fired Heating Device Visible Emission Standards

4.4 Proposed New System Costs and Projected Revenues (Total Estimated Costs and Projected Revenues) The level of cost information provided will vary according to the phase of funding requested and any previous work the applicant may have done on the project. Applicants must reference the source of their cost data. For AEA11-005 Grant Application

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example: Applicants Records or Analysis, Industry Standards, Consultant or Manufacturer’s estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following: • Total anticipated project cost, and cost for this phase • Requested grant funding • Applicant matching funds – loans, capital contributions, in-kind • Identification of other funding sources • Projected capital cost of proposed renewable energy system • Projected development cost of proposed renewable energy system See Section 2.6 Project Budget Overview of this RFA for detail regarding answers to this section. 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for new facilities constructed and how these would be funded by the applicant. (Note: Operational costs are not eligible for grant funds however grantees are required to meet ongoing reporting requirements for the purpose of reporting impacts of projects on the communities they serve.)

Operational and Maintenance costs during this demonstration project are expected to be minimal. Cutting, hauling and stoking the boiler are the primary operating costs associated with this project. Maintenance will be also at a minimum due to these GARN boilers will be brand new and covered under the manufacturers warranty for the length of the demonstration period. 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following: • Identification of potential power buyer(s)/customer(s) • Potential power purchase/sales price - at a minimum indicate a price range • Proposed rate of return from grant-funded project At this point there is no need for a power purchase/sale agreement. As part of this project is to explore the eventuality of creating a Tribal Utility Company to maintain and operate the new system and oversee the expansion of this project to the residents of Port Graham, Heat Purchase Agreement will be developed in accordance with regulatory requirements governing rural utilities in Alaska. 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Please find the Project Cost/Benefit Worksheet attached to this application. We have also included an excerpt from The Potential For Biomass District Energy Production in Chugachmiut Communities, conducted in 2007 by the Energy & Environmental Research Center of the University of North Dakota. A 7Mb copy of the final report has been included in the electronic CD version of this application.

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SECTION 5– PROJECT BENEFIT Explain the economic and public benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following: • Potential annual fuel displacement (gal and $) over the lifetime of the evaluated renewable energy project • Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or cost based rate) • Potential additional annual incentives (i.e. tax credits) • Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) • Discuss the non-economic public benefits to Alaskans over the lifetime of the project See Section 2.6 Project Budget Overview of this RFA for detail regarding answers to this section. SECTION 6– SUSTAINABILITY Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum: • Proposed business structure(s) and concepts that may be considered. • How you propose to finance the maintenance and operations for the life of the project • Identification of operational issues that could arise. • A description of operational costs including on-going support for any back-up or existing systems that may be require to continue operation • Commitment to reporting the savings and benefits

Sustainability is the core rationale for Port Graham’s drive to plan, develop and operate this proposed Port Graham Village Biomass Waste Heat facility. Sustainability for its own community and through sharing their success with its neighboring communities. In order for the community to be sustainable, the Port Graham Village Biomass Waste Heat Demonstration Project too must be sustainable. Listed here are Port Graham’s plans for a sustainable Biomass CHP facility. Port Graham Tribal Council plans to develop a separate entity to own and operate this biomass independent heat producer. Working with the finance team, we will determine within six months if this entity should be a non or for profit. If the independent entity is a for-profit organization, it would then be able to take advantage of any tax credits available and use depreciation that may make developing this project more economically viable. If grant funding were not available for down payment of the project, then using a combined relationship of a tax credit investor along with a not-for-profit business entity may make better financial sense. Such arrangements allow for what is called a “flip” of ownership, where the entity who has been taking advantage of the tax benefits ends, and then sells and turns over the operation to a long-term entity to own and operate, which would be an entity formed and owned by Port Graham Tribal Council. Finance of the maintenance and operations for the life of the project would be through collection of fees from Port Graham consumers. Operational issues that could arise include operation of the technology, personnel trained and hired for the operation and fuel source production process, fuel source supply issues, cost issues related to inflation, permitting, and compliance issues. Technology issues are those that shut down or reduce the production of the power intended to be produced because of mechanical or electronic breakdowns or dysfunctions that reduce operating efficiencies. Personnel trained and hired to operate the biomass system need to develop procedural systems that ensure maintenance and operations function efficiently. Retaining such personnel could be an ongoing issue that may require training additional potential employees for absences and turnover for the life of AEA11-005 Grant Application

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the project. The purpose of fuel source agreements with landowners is to ensure a sustainable supply of biomass fuel that also recognizes that the landowners should receive increased stumpage fees over time to keep up with inflation. If Port Graham Corporation, for example, feels that they have a higher and better use for their woody biomass, they may wish to change or back out of a long-term agreement, which would be very problematic for the continued operation of the project. Inflation cost issues relate to borough taxation, labor cost price increases, maintenance and repair costs, and other costs related to cost inflation over the life of the project. Regulatory compliance and permitting issues could change over the period of the project that may require upgrades to the technology to meet these requirements. Fuel source production may experience changes in requirements that may drive up the cost of production. Each of these issues needs to be planned for and contingency responses developed to ensure continued successful operation. Port Graham Tribal Council will ensure its utility entity will report annually it savings and benefits to its customers, stakeholders, and to the council. SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS Discuss what you have done to prepare for this award and how quickly you intend to proceed with work once your grant is approved. Tell us what you may have already accomplished on the project to date and identify other grants that may have been previously awarded for this project and the degree you have been able to meet the requirements of previous grants. Port Graham’s proposal to the Alaska Energy Authority has methodically identified steps to successfully develop a Port Graham Village Biomass Waste Heat facility. Port Graham, along with Chugachmiut, has been taking steps on this project since 2005 when it developed its initial Integrated Resource Management Plan5 (IRMP) for the U. S. Bureau of Indian Affairs. The IRMP included development of a renewable biomass development project as a priority development. After BIA’s review of the IRMP and having reviewed the U. S. Department of Energy feasibility plan for biomass power production (described in the next paragraph), the Office of Indian Energy and Economic Development has tentatively offered a loan guarantee for a larger project of this type. This loan guarantee component is critically needed to leverage future AEA grant funding to complete development of this project once the demonstration project has proven successful. Following are the major efforts undertaken by Port Graham to advance the Port Graham Village Biomass Waste Heat Demonstration Project. A feasibility study that included a resource assessment was completed July 2007 through funding from U. S. Department of Energy (DoE) Tribal Energy Program titled The Potential for Biomass District Energy Production in Port Graham, Alaska feasibility study. This document is included in the CD portion of this RFA. This Port Graham Biomass CHP Project remains on DoE’s list of projects eligible for development assistance since the feasibility study was funded by DoE. Office of Indian Energy and Economic Development funded the Port Graham Capability and Capacity Assessment to Operate a Tribal Utility grant to conduct an assessment of capacity and capability of the Port Graham Village Council to develop, staff, and manage a biomass utility business. This assessment was completed September 30, 2009, and a final report will be submitted in late November 2009. The Council currently plans to develop a tribally owned for-profit entity to operate the biomass CHP facility. They may seek an investment / operating partner to capitalize on available tax incentives if a non-profit operating entity is formed. Chugachmiut funded a financial feasibility study through T. P. Roche Company for this biomass CHP 5

Integrated Natural Resource Management Plan for Nanwalek and Port Graham, ASCG Incorporate  November 2006 and Integrated Natural Resource Management Plan for Nanwalek and Port Graham  Phase II, Margaret King and Associates, July 2009.

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project proposal to assess financial feasibility, engineering design, technology selection, and fuel source extraction at a more detailed level. A conceptual design for the biomass power generating facility was developed through T. P. Roche by rem Engineer’s Doug Latulippe. Tom Roche developed the financial feasibility study shown in Section 2.6 Project Budget Summary. Charles Nash and Chugachmiut’s Forester Nathan Lojewski and Enterprise Director Charles Sink used the Port Graham Biomass Feasibility Study and data that Chugachmiut already retains to make the fuel source supply assessments and fuel extraction cost information. SECTION 8– LOCAL SUPORT Discuss what local support or possible opposition there may be regarding your project. Include letters of support from the community that would benefit from this project. Included in this RFA are copies of letters-of-support from the following entities: 1. Port Graham Village Council Resolution 10-30 2. Port Graham Corporation letter-of-intent to reach a fuel source supply agreement 3. Chugachmiut letter of support Port Graham Village Council development project SECTION 9 – GRANT BUDGET Tell us how much you want in grant funds Include any investments to date and funding sources, how much is being requested in grant funds, and additional investments you will make as an applicant. Include an estimate of budget costs by milestones using the form – GrantBudget3.doc Port Graham Village Council (Council) intends to use a combination of sources to finally bring this project to reality. Ever since the completion of The Potential for Biomass District Energy Production in Chugachmiut Communities study completed in 2007 the Council has worked toward this goal, developing relationships with several entities both public and private, please refer to the attached letters of support and commitment. The Council requests the following funds from the listed entities: Alaska Energy Authority Dept of Energy (EECBG) In-kind committed funds include: Chugachmiut Port Graham Village Council Total Project Costs:

$697,475 $39,700 $78,430 $30,200 $845,805

Direct Labor & Benefits - Port Graham Village Council administrative staff will provide the primary interface with AEA and all other parties to this project. The three Port Graham staff members associated with this project will devote 33% of their time to this project from start to finish, fringe benefits are factored in at 35%. Resumes for all three have been included as part of this application. • Pat Norman, First Chief • Francis Norman, Tribal Administrator • Dana McMullen, Tribal Bookkeeper This is a large project for Port Graham and will require a large percentage of staff time to accomplish. Additional funding has been requested under the Contractual Services category for a firm to provide Project Accounting, training for the Port Graham staff in this area will be included in the scope of work when this service is solicited, thereby providing Port Graham staff with the ability to sustain this effort long after this project has been completed. AEA11-005 Grant Application

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The Council will also rely upon the proven relationship with Chugachmiut, Inc. to provide technical assistance throughout this project either through general guidance related to administration of the project; i.e. report writing and solicitation of consultants and contractors as well as more technically complex activities such as negotiating loan agreements, permitting and environmental reporting to name a few of the areas where Chugachmiut staff expertise will be required. It is the intent of the Council to contract with Chugachmiut to provide this more specific technical assistance where required to meet project milestones as addressed in this application, such as intermediary support in finalizing the loan agreement between the lending institution and the Port Graham Village Council prior to the completion of Phase III. Chugachmiut staff involved with this project will include: • Charlie Sink, Director, Enterprise and Trust Division • Nathan Lojewski, Chugachmiut Forestry Manager • Elmer Moonin, Chugachmiut Project Assistant It is estimated that, on average, 10% of their time will be spent on this project, from beginning to end. Chugachmiut staff has a vested interest in seeing this project completed. Charlie Sink has been involved with this project for over 4 years since the first feasibility study grant was written. Chugachmiut fringe benefits are figured in at 36%. Travel & Per Diem - Travel costs are illustrated on the spreadsheet attached to this application. Whereas many of the meetings will be conducted via telephone between Port Graham staff, Chugachmiut staff and out of state consultants, there will be a necessity to conduct several meetings in person. The Travel table shows the number of trips, destination and length in travel status for each traveler. Air fare is based on current web searches utilizing Travelocity.com and Expedia.com; lodging and per diem costs are based on published federal rates for the locale. Equipment - Equipment proposed for this project has been discussed at length throughout this application. The costs associated with the particular equipment are detailed on the Project Costs spreadsheet. Only equipment recognized as the standard in this area of power generation has been considered. Throughout the discussion of this project, brand names are used to represent the level at which this project wishes to reflect, once the proper technology has been identified, competitive solicitations will be issued. Materials & Supplies – The amount requested under this category are necessary to manage a project of this complexity and are further detailed as sub-categories on the Budget worksheet. Contractual Services – This category represents the level of expertise Port Graham wishes to bring to this project. This type project is relatively new to Alaska and therefore experts in this field will be required to provide the required project services as have been discussed within this document. A detailed project cost assessment has recently been completed using a contractor, T. P. Roche Company, whose team includes a biomass project development and financial consultant, a biomass plant design engineer, and a biomass supply consulting forester. The design engineer provided estimates of capital investment for the biomass unit, as well as start up, operation and maintenance costs. The forester provided an estimate of fuel supply harvesting equipment and fuel supply extraction costs. The financial consultant provided realistic economic projection for development and operation of the proposed project using information provided by his team and from Port Graham Tribal Council and Chugachmiut. It is expected the same level of expertise will be brought into this project. As mentioned above under the category for Direct Labor, Port Graham will contract with an accounting firm that is not only competent in the field of Project Accounting, but also have the ability to provide training to Port Graham staff so they may take over these duties once the project has been completed. Construction Services – This category addresses the actual preparation of the site, the construction of the plant and the installation of the equipment. Please refer to the discussion for this category under Phase IV, Task 4. Other – The Other category addresses costs necessary to the success of this project such as working capital and financing fees to prepare the documents that will secure the loan, which BIA has stated they AEA11-005 Grant Application

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will guarantee through that agency; Owner’s CM Insurance while the project is under construction; costs associated with start-up and commissioning the power plant and finally costs to address miscellaneous unseen costs and contingencies. To the best of our abilities the costs represented herein and within the included worksheets are reasonable for a project of this caliber. Application development staff is available to discuss further any issues that require additional explanation.

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PO BOX 5509 Port Graham, Alaska 996035509 Work 907-284-2227 Home 907-284-2203 Email: [email protected]

Francis Norman Employment

1976-Present

Port Graham Village Council

Port Graham, AK

Tribal Administrator „

Duties include office manager, supervisor, grant writing, administration of state and federal grants and programs, payroll, accounting, secretarial and public relations.

Education

1976 High school diploma

Volunteer experience & Training

1987-Present - Chugachmiut board of director

Kenai Central High School

1985-2005- Site Base Governance Committee 1985-Present - Port Graham Volunteer Fire Department 1985-Present - Native Education Committee Regional Aides Task Force 2003 to Present Chugach Museum & Institute of History & Art Local Government training conference: dealing with alcoholism and drug abuse American training & technical assistance: grants and BIA 638 grants and contracts

Bookkeeping for BIA

Implementing Indian Community Block Grants OMB Circular Training Indirect Cost Proposal Workshop Website Development

Equipment Knowledge

Macintosh and IBM computers specifically Word and Excel and Quicken, MultiMate, Microsoft Works, Lotus 123. Operation of fax, copiers, binding machine. Ten-key by sight and electric typewriters.

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Kenai, AK

Resume for Charles L. Sink 1430 Bridgeway Street Unit 3 Anchorage, Alaska 99501 907.258.8770 [email protected]

Professional Focus Charles Sink has over 30 years of diverse professional management experience specific to Alaska. Mr. Sink’s concentration is in strategic planning for economic and business development for Chugachmiut and the consortium’s tribes and communities. He has supervisory responsibility over several managers that include: federal trust realty for Alaska Native allotments and town site lots; forestry and fire management of trust lands: community health practitioners’ safety training and development and corporate safety program; and, economic and business development. Mr. Sink works with diversified members of government agencies, contractors, and Native stakeholders. He directs the planning, administration, and implementation of a multitude of complex projects in a diversity of environments. He has worked as a self-directed project manager dedicated to attaining quality work and completion of projects through persistence and effective decision-making. Mr. Sink utilizes progressive administrative planning tools and technologies to track, improve, and complete projects under his stewardship. He utilizes applied management principles to create personal and professional standards to create growth, development, and achievement with those he interacts. Chugachmiut’s goal is to help develop self-determination in the Native communities and peoples of the Chugach Region and Mr. Sink seeks to advance stakeholder economic and business competency through training, involvement, and technical assistance in an ethical and culturally sensitive manner.

Education University of Alaska Anchorage Washington State University

Master Business Administration December 2005 Bachelor of Science Forest Management May 1974

Experience Chugachmiut Director Enterprise and Trust Services Chugachmiut Forestry and Fire Manger Alaska Wildland Fire Coordinating Group Board Member Gana-A’ Yoo’ Limited Resource Manager Lesnoi, Inc. Forestry Consultant Woody Island Timber Co. Board Member

October 2005 – Present April 2002 – September 2005 April 2002 – Present July 1995 – March 2002 September 1993 – June 1994 September 1993 – June 1994

Projects • • • • • • • • •

U.S. Department of Energy Tribal Energy Grant for “The Potential for Biomass District Energy Production in Chugachmiut Communities”, ($150,000 project), July 2007. U.S. Bureau of Indian Affairs two-year development of Integrated Resource Management Plan for Nanwalek and Port Graham, Alaska ($150,000 project) completed November 2006. Start-up of Yukon Fire Crew in 2005 from 20-person Emergency Fire Crew to Type 2 Inter-Agency qualified crew in 2006 to a Type 1 Interagency Hotshot Fire Crew in 2007, (average annual revenue > $1 million). Building Projects 1999—Project Manager 6-plex renovation ($250,000 project), for new shop construction ($275,000 project), for office roof and garage upgrade ($53,000 project). U.S. Public Law 93-638 Projects, 1997-1998—Project Manager for U.S. Bureau of Indian Affairs funded gravel road construction at Galena and Koyukuk, Alaska ($5,200,000 project). U.S. Public Law 86-121 Project, 1997-1998—Project Manager for Alaska Area Native Health Service/U.S. Public Health Service funded public Galena Water Plant Construction Project ($1,400,000 project). Two ANCSA 14(C)(3) reconveyences from Gana’A Yoo’ Limited to Koyukuk IRA Council and Nulato Tribal Council in 1995 and 1996 respectively. Renewal of the first Alaska Land Bank Agreement for Gana’A Yoo’ Limited with U.S. Fish and Wildlife Service in 1996. Grant writing, contracting and administration experience—worked on a number of successful grants and contracts that included U.S. Bureau of Indian Affairs, U.S. Bureau of Land Management; U.S. National Park Service; U.S. Fish and Wildlife Service; U.S. Forest Service; Kenai Peninsula Borough; State of Alaska, and Alaska Housing Finance Corporation. 36

Resume for Charles L. Sink 1430 Bridgeway Street Unit 3 Anchorage, Alaska 99501 907.258.8770 [email protected]

Selected Professional Skills -

Lean Management for Professional Managers, Seattle Pacific University, 2 credit hours, 2006. Certified Forester by Society of American Foresters, certification no. 2989, 2002-present. Fire Fuel Effects Training from Colorado State University, earned one-graduate credit in Natural Resource Management, 2003. FireWise Training for Land Managers, 2001, updated 2003. ESRI training that includes Arc Info, 1995, ArcGIS I, 2002, ArcGis Spatial Analyst and ArcGIS 3D Analyst, 2004 and ArcGIS II, 2006. State of Alaska Residential Contractor Endorsement No. 1166, 1997-2002 (expired). Construction and Production Management from the Alaska Regional Training Institute, 1999. How to Sell More Houses, Procuring Government Contracts, What Makes or Breaks a Business, Construction Scheduling Cours from Royse and Associates, 1998. Advanced Construction Law in Alaska from National Business Institute, 1998. Alaska Arctic Home Builders training from Alaska Craftsman Home Program, Inc., 1997. Building Inspection training from Falmouth Institute, 1997. Alaska Land and the Law from Falmouth Institute, 1997. International Right of Way Association course on Right of Way and Surveying Issues, 1995. Professional Timber Cruising certification from Atterbury Consultants, Inc., 1994. State of Alaska asbestos abatement worker and supervisor of asbestos abatement certification, 1993 (expired). U.S. Coast Guard 100-ton master and 200-ton mate license no. 667473, 1991 (expired), obtained during a 17year career as a commercial fisherman based out of Kodiak, Alaska.

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THOMAS P. ROCHE EDUCATION „ „ „

MBA, Cornell University 1979 MS Environmental Engineering, Clarkson University 1977 BS Chemical Engineering, Clarkson University 1973

SPECIAL QUALIFICATIONS „ „ „ „ „

Site Selection, Project Development Facilitation Merger and Acquisition Environmental Due Diligence Litigation Support Real Estate Environmental Assessments Environmental Impact Assessment

EXPERIENCE RECORD 1988 to T.P. Roche Company, President Present „ Founder of corporation provided project development and environmental management consulting services to industry and government organizations. Services include: Site Selection and Project Facilitation Economic Development / Industry Attraction Acquisition Analysis Environmental Assessment 1980 to Pilko & Associates, Inc., Vice President 1987 „ Co-founder of the firm and Vice President of the firm's Project Development Division. „

Responsible for staffing, selling and managing the firm's project facilitation, site selection and economic development services.

1979 to The Pace Company Consultants and Engineers, Consultant 1980 „ Project management for the company's site selection, socio-economic evaluation and environmental and impact analysis services.

March 26, 1999

-142

1974 to CONOCO, Inc., Process Engineer, Analyst 1979 „ „

Logistics - Operations coordination and planning Chemicals - Economic evaluations, feasibility studies, contractor selection/ supervision, energy conservation and environmental compliance project management

PROJECT EXPERIENCE „

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Litigation support projects for environmental litigation including developing technical themes and assisting attorneys with interrogatories and depositions. Pre-acquisition environmental assessments of numerous properties including commercial and light industrial real estate, undeveloped land and residential developments, chemical plants and refineries, oil and gas production and transmission facilities. Environmental impact assessments for numerous major manufacturing operations, including facilities with investment in excess of one billion dollars. Site Selections for facilities including corporate headquarters, research facilities, chemical plants, manufacturing operations, waste management facilities, and distribution and service businesses Development incentive negotiations, project expediting and community relations for a variety of major investments including a corporate headquarters/R&D facility, waste management facilities and manufacturing operations. Real estate development strategy and implementation assistance for a variety of properties including shut down industrial facilities, and contaminated manufacturing sites. Community assessments and target industry studies for utilities and government economic development organizations. Joint venture partner identification and project facilitation for foreign investors manufacturing in the U.S. Market assessments for waste management services, including industrial wastewater treatment, medical waste incineration, landfill and deepwell injection services.

January 15, 2003 43

Thomas P. Roche -2-

„ „

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Market assessment for bulk liquid transportation services. Project feasibility assessment for bulk liquid terminal services and salt cavern storage facilities. Competitive assessment of Canadian commodity chemical product in U.S. market.

January 15, 2003 44

Thomas P. Roche -3-

rem ENGINEERING, Inc. rem ENGINEERING offers engineering expertise in cogeneration, renewable power generation and energy conservation. Founded in 1992 by President Robert Mooney, rem is responsible for over 350,000 kWt and 65 MWe of combined heat and power generation equipment worldwide. In addition to the wood products and steel industries, rem has satisfied customers in the food, textiles, cement, chemical and building supply industries as well as municipalities and the federal government. rem ENGINEERING, Inc. specializes in the custom design and project management of “green” energy generation. We are proud of our ability to consistently develop power projects for clients with unusual operating parameters. Creativity and the willingness to put forth the additional effort required to customize a generating system to meet the individual needs of the user are hallmarks of rem ENGINEERING. A large portion of our work has been in the timber industry due to the availability of low cost fuel. At Tradewinds of Virginia, rem installed the first multi-stage condensing turbine at a sawmill. We have engineered and installed pure power generating equipment as well as co-generating equipment throughout the timber industry including veneer plants, dry kiln plants, furniture and molding plants and dimensional lumber mills. In addition to our work in the timber industry, rem ENGINEERING develops new technologies for the gasification of poultry litter and related agricultural by-products. Our environmentally friendly technology creates a clean alternative to fossil fuels. rem’s patented technology converts low energy value and high moisture biomass streams into thermal energy for steam production and electrical generation. Our technology cleans the environment through reduced NOx, SOx and green house gas emissions. Notable projects include: A 265 kW turbine genset installed at North Country Hospital that received national recognition from the DOE as the nation’s first wood fueled electricity generation system installed at a hospital, multiple turbine co-generation systems installed at US Steel facilities in Alabama and Pennsylvania used to offset electrical demand, system design and equipment supply for utility grade biomass power plants for The Southern Company and Arizona Public Service, and energy conservation projects for Feed the Children charity, a global non-profit organization

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Education: Mr. Douglas Latulippe is a 1991 graduate of Virginia Polytechnic Institute and State University (Virginia Tech) with a bachelor’s degree in Mechanical Engineering.

Inventor: 2005 U.S. Patent Number 6,948,436 B2

An apparatus for the gasification & combustion of organic waste such as poultry litter/manure, cow/cattle manure, swine manure and/or human waste… rem ENGINEERING’s holistic philosophy and creative engineering approach on all projects is a great fit for Doug. As he explains, “You have to look at the impact a project will have on an entire plant to properly evaluate its benefits and determine its feasibility. Also, understanding the customer’s motivation and the unique requirements specific to their job means a successful project.”

Douglas Latulippe graduated from Virginia Polytechnic Institute and State University in 1991 with a Bachelor of Science degree in Mechanical Engineering. He began his career as a Facility Engineer with Lowes Food Stores, Inc. and was quickly promoted to Senior Level Facility Engineer. In this position, Doug expanded his responsibilities from project engineer and manager to directing the maintenance and facilities management department and staff within the company. After Lowes Foods, Doug worked for Glenwood Development Co., LLC, a real estate development company in several capacities. Doug worked as both a project manager for Glenwood’s construction division as well as a leasing representative and project manager for the development division. Doug accepted an engineering position with rem ENGINEERING in October of 2002 to support and further develop rem’s environmentally friendly, proprietary solid fuel biomass gasification system - Ecoremedy™. Doug conducted extensive research and development regarding the Ecoremedy™ technology culminating in the design, construction and operation of rem’s first Ecoremedy™ pilot plant and subsequent first commercial Ecoremedy™ gasification plant. This work was pivotal in rem receiving their U.S. patent for Ecoremedy™ in 2005. Since then, Doug has continued to support rem in the commercial development of Ecoremedy™ while shifting his focus to rem’s core business of renewable power generation and energy conservation. In this capacity, Doug is responsible for all levels of project development and management from project feasibility analysis and conceptual design to detailed equipment specification and installation. Clients for rem services include the wood products, steel and petrochemical industries, universities, hospitals, Native American Indian organizations and electric utilities. Doug continues to expand rem’s presence in the new emerging sectors of the revitalized “green” renewable energy markets by providing engineering services to ethanol, hydro (water turbine), fuel pellet and solar (thermal) projects throughout the United States. In order to maintain rem’s position as an industry leader in the renewable power generation market, Doug became rem’s managing partner in their strategic alliance with Steam Turbine Generators, LLC (STG), a company specializing in the packaging of steam turbine generator sets for the industrial market. 46

Bob Mooney, founder of rem ENGINEERING, Inc. graduated Bucknell University with a BSME degree in 1964. Bob began his professional career with Potomac Electric Power and participated in the commissioning of Chalk Point Station, the world’s most efficient power plant for over three decades.

Education: 1964 graduate of Bucknell University with a Bachelor’s Degree in Engineering. Professional Licenses: Bob Mooney holds a P.E. license in Delaware, South Carolina, Georgia and Utah.

In 1967, Bob entered the chemical industry with Hercules Incorporated where he worked for the Power Group - the division responsible for the design and start-up of combined heat and power (CHP) facilities world wide. Bob’s twenty three year career includes seventeen years as Power Group Manager. During his tenure, Bob installed CHP plants throughout the United States, Denmark, and Mexico. A primary responsibility was to utilize manufacturing waste and byproducts as low cost fuels. Fuels ranged from the unprocessed (gas, oil, wood, coal) to the unique (sludge, processed wood wastes, anthracite culm and bituminous gob). Bob left Hercules to be Vice President for Fitchner USA, Inc. – a German based engineering consulting company located in Atlanta, Georgia. While with Fitchner, Bob consulted to power projects throughout the world. He increased plant availability from 65% to 96% for the last two whole rubber tire burning plants built in the United States, Modesto, CA and Sterling, CT.

Notable projects include: U.S. Steel, Fairfield: Increased the anticipated generation of 8MW to 22MW. Supplied and installed the new topping turbine and dramatically increased production through the use of a closed feedwater heater.

With over 28 years of electrical generation and unmatched combustion experience, Bob founded rem ENGINEERING, Inc. in 1992. Bob focused on energy conservation and power generation projects with a passion for solving the unique challenge. Bob’s client base includes customers in the food, textiles, cement, chemical, steel and building supply industries as well as municipalities and the federal government. His work in the timber industry includes design, procurement and installation of cogeneration equipment for veneer plants, dry kiln plants, furniture and molding plants and dimensional lumber mills.

Brunswick #9: Installation of a new boiler that burned 50% moisture shredded wood containing 17% sand. Bob’s furnace design solved previous erosion problems and eliminated costly repairs.

Bob’s extensive background in challenging biomass fuels equipped him for his latest accomplishment – the invention of a biomass gasification system. Recognized with a United States patent in 2005, rem ENGINEERING’s Ecoremedy™ is poised to revolutionize the animal agriculture industry enabling the use of animal manure and processing waste as clean, green renewable fuel.

47

48

“rem ENGINEERING provided conceptual design for the topping turbine installed in 1996 at Fairfield Works. Bob Mooney was very competent and innovative. His proposal for including a closed feedwater heater provided the additional benefits that made this project financially attractive. He was flexible and easy to work with and contributed significantly to the success of the topping turbine project. rem has recently been retained to work on several smaller energy projects at our facility.” Mr. Pittman Owen Division Manager Utilities, Shops & Services U.S. Steel Fairfield, Alabama 35064 205-783-2099

49

50

51

Biomass Program

Integrated Biorefineries R&D

North Country Hospital Biomass Conversion And Cogeneration Project In 2002, the Vermont Community Development Program funded a feasibility study to evaluate the best options for implementing a renewable energy system to meet the heat and power needs of the North Country Hospital in Vermont. The study recommended that two gasifiers be installed with two 200 horsepower, 150 psi Hurst boilers (one is already in place) and two 150 kW steam turbines. The Chiptec system would gasify readily available wood chips to produce heat and power.

R&D Pathway The principle investigator will purchase and install a Chiptec C-14 gasifier, one 500 hp, 300 psi Hurst boiler, and one 265 kW steam turbines. Also included in the project are an addition to the existing boiler room and a concrete bunker to accept the wood chip inventory.

Benefits • Convert wood chips into heat and power • Reduce energy costs for North Country Hospital

Applications This project will help the North Country Hospital reduce its energy costs by implementing a wood chip gasification system.

Project Partners North Country Hospital

Project Period This Congressionally-mandated project is funding the purchase and installation of a Chiptec C-14 gasifier, one 500 hp, 300 psi Hurst boiler, and one 265 kW steam turbine to the hospital’s existing heat and power generation systems. The estimated cost savings of the renewable system over a conventional heat and power generating system is $248,000 per year at a chip purchase price of $9 per ton.

FY 2004 – FY 2005

For more information contact: Chiptec C-Series Gasifier

Jim Spaeth DOE Golden Field Office [email protected] EERE Information Center 1-877-EERE-INF (1-877-337-3463) Visit the Web site for the Office of the Biomass Program (OBP) at www.eere.energy.gov/biomass.html

September 2004

A Strong Energy Portfolio for a Strong America. Energy efficiency and clean, renewable energy will mean a stronger economy, a cleaner environment, and greater energy independence for America. Working with a wide array of state, community, industry, and university partners, 52 the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy invests in a diverse portfolio of energy technologies.

 

Renewable Energy Fund Round 4 Project Cost/Benefit Worksheet

 

Please note that some fields might not be applicable for all technologies or all project phases. The level of information detail varies according to phase requirements.

1. Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Biomass – 120+ tons per year, this represents a Annual average resource availability. tiny fraction of the amount of sustainable supply available from Village Corporation lands. Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)

2. Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank) i. Number of generators/boilers/other ii. Rated capacity of generators/boilers/other iii. Generator/boilers/other type iv. Age of generators/boilers/other v. Efficiency of generators/boilers/other

b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor ii. Annual O&M cost for non-labor

c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, leave this section blank) i. Electricity [kWh] ii. Fuel usage Diesel [gal] Other iii. Peak Load iv. Average Load v. Minimum Load vi. Efficiency vii. Future trends

d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu]

12,010

ii. Electricity [kWh]

N/A

iii. Propane [gal or MMBtu]

N/A

iv. Coal [tons or MMBtu]

N/A

v. Wood [cords, green tons, dry tons]

N/A

vi. Other

N/A

                                                             1

 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric  Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power.   

RFA AEA11-005 Application Cost Worksheet

53

09-15-2010

 

Renewable Energy Fund Round 4 Project Cost/Benefit Worksheet

 

3. Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a)

Proposed renewable capacity (Wind, Hydro, Biomass, other)

Biomass – 1.45 mmbtu

[kW or MMBtu/hr]

b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] ii. Heat [MMBtu]

1.38 mmbtu

c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu]

N/A

ii. Coal [tons or MMBtu]

N/A

iii. Wood [cords, green tons, dry tons]

120 tons per year

iv. Other

N/A

4. Project Cost a) Total capital cost of new system

$252,737

b) Development cost

$196,100

c) Annual O&M cost of new system

$15,000 (Labor and Maintenance)

d) Annual fuel cost

$12,000

5. Project Benefits a) Amount of fuel displaced for i. Electricity

N/A

ii. Heat

$12,010

iii. Transportation

N/A

b) Current price of displaced fuel

$57,646

c) Other economic benefits

$27,000, per year in Port Graham

d) Alaska public benefits

Reduce the state funded fuel equalization costs.

6. Power Purchase/Sales Price a) Price for power purchase/sale

N/A

7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio

1.34 (assumes 8% discount rate)

Payback (years)

9 years

RFA AEA11-005 Application Cost Worksheet

54

09-15-2010

Port Graham Village Council Alternative Energy – Biomass Electric Generation Project

Source of Matching Funds: Cash/In-kind/Federal Granteed Matching Grants/Other State Funds Grants/Other

RE-Fund Grant Funds

Phase III Task 1 - Resource Supply Plan

12/31/2009 $

16,122 $

7,944

In-Kind/Loan

$

24,065.89

Task 2 - Energy System / Configuration Plan

4/30/2010 $

28,170 $

13,881

In-Kind/Loan

$

42,051.64

Task 3 - System Design

4/30/2010 $

22,391 $

11,034

In-Kind/Loan

$

33,424.85

Task 4 - Project Cost

6/30/2010 $

25,099 $

12,368

In-Kind/Loan

$

37,467.66

Task 5 - Power Purchase Agreements

6/30/2010 $

41,392 $

20,396

In-Kind/Loan

$

61,788.22

Task 6 - Site Agreements

5/31/2010 $

14,245 $

7,019

In-Kind/Loan

$

21,264.57

Task 7 - Permits

5/31/2010 $

24,438 $

12,042

In-Kind/Loan

$

36,480.84

Task 8 - Business and Operating Plan

6/30/2010 $

41,392 $

20,396

In-Kind/Loan

$

61,788.22

$

213,250 $

105,082

$

318,331.90

Direct Labor & Benefits

$

53,896 $

28,852

In-Kind

$

82,748

Travel & Per Diem

$

33,204 $

9,930

In-Kind

$

43,134

Equipment

$

-

Materials & Supplies

$

8,550 $

Contractual Services

$

117,600 $

Construction Services

$

-

$

Other

$

-

$

62,700

$

62,700

$

213,250 $

105,082

$

318,332

TOTALS Budget Categories:

TOTALS

55

$

3,600

$ Other - Loan

-

$

12,150

-

$

117,600

-

$

-

Port Graham Village Council Alternative Energy – Biomass Electric Generation Project

RE-Fund Grant Funds

Source of Matching Funds: Cash/In-kind/Federal Granteed Matching Grants/Other State Funds Grants/Other

Phase IV Task 1 - Resource Supply Plan

8/31/2011 $

13,752 $

-

$

13,752.01

Task 2 - Existing Power Systems

9/30/2011 $

32,976 $

-

$

32,975.76

10/31/2010 $

51,522 $

-

$

51,521.60

9/30/2011 $

137,714 $

-

$

137,713.75

Task 5 - Staffing Plan

11/30/2011 $

85,331 $

-

$

85,331.18

Task 6 - Project Cost

9/30/2011 $

76,943 $

-

$

76,943.44

Task 7 - Environmental

12/31/2011 $

11,525 $

$

21,235.07

Task 8 - Permits

12/31/2011 $

14,236 $

$

14,236.23

40908 $

61,497 $

29,132

$

90,628.15

$

485,495 $

38,842

$

524,337.19

Direct Labor & Benefits

$

55,513 $

29,718

In-Kind

$

85,230

Travel & Per Diem

$

27,001 $

9,930

In-Kind

$

36,931

Equipment

$

147,190 $

Other - Loan

$

147,190

Materials & Supplies

$

12,975 $

Other - Loan

$

16,575

Contractual Services

$

111,000 $

-

$

111,000

Construction Services

$

105,547 $

-

$

105,547

Other

$

25,000 $

-

$

25,000

$

484,226 $

$

527,473

Task 3 - EPC Contracts / Agreements Task 4 - Proposed System Design

Task 9 - Analysis And Recommendation

TOTALS

9,711

Other - Loan

Other - Loan

Other - Loan

Budget Categories:

TOTALS

56

3,600

43,248

Other - Loan

Port Graham Village Council Alternative Energy – Biomass Electric Generation Project

Source of Matching Funds: Cash/In-kind/Federal Granteed Matching Grants/Other State Funds Grants/Other

RE-Fund Grant Funds

Combined Phases III and IV Phase III

6/30/2010 $

213,250 $

105,082

in-kind/Loan

$

318,331.90

Phase IV

12/31/2011 $

485,495 $

38,842

in-kind/Loan

$

524,337.19

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

698,745 $

143,924

Direct Labor & Benefits

$

109,408 $

58,570

Travel & Per Diem

$

60,205 $

19,860

Equipment

$

147,190 $

Materials & Supplies

$

21,525 $

Contractual Services

$

228,600 $

-

Construction Services

$

105,547 $

-

Other

$

25,000 $

$

697,475 $

TOTALS

$

842,669.09

in-kind/Loan

$

167,978

in-kind/Loan

$

80,065

in-kind/Loan

$

147,190

in-kind/Loan

$

28,725

$

228,600

$

105,547

62,700

$

87,700

148,330

$

845,805

Budget Categories:

TOTALS

57

7,200

in-kind/Loan

Port Graham Village Council Budget AEA11-005 Alternate Energy Program Director, Chugachmiut Enterprise Div. Forester, Chugachmiut Enterprise Div. Admin. Asst, Chugachmiut Ent. Div Port Graham 1st Chief Tribal Administrator Tribal Bookkeeper Total Salary Fringe Benefits - Chugachmiut Fringe Benefits - Port Graham

$ $ $ $ $ $

$ $ $ $

4,608 28,596 33,204

$ $ $ $

9,930 9,930

$ $ $ $

4,608 22,393 27,001

$ $ $ $

9,930 9,930

$ $ $ $

9,216 50,989 60,205

$ $ $ $

19,860 19,860

$ $ $ $

9,216 19,860 50,989 80,065

Equipment: GARN Boilers Misc. Control Room and Equipment Start-up and Commissioning Installation and Balance of Plant Freight Subtotal Equipment:

$ $ $ $ $ $

-

$ $ $ $ $ $

-

$ $ $ $ $ $

79,990 3,750 8,000 16,450 39,000 147,190

$ $ $ $ $ $

-

$ $ $ $ $ $

79,990 3,750 8,000 16,450 39,000 147,190

$ $ $ $ $ $

-

$ $ $ $ $ $

79,990 3,750 8,000 16,450 39,000 147,190

Materials & Supplies: Office Supplies Postage Meeting Space Office Space Long-Distance Calls Fax Phone Internet Services Conference Registration Subtotal Materials & Supplies

$ $ $ $ $ $ $ $ $

1,800 100 3,000 1,200 1,250 1,200 8,550

$ $ $ $ $ $ $ $ $

3,600 3,600

$ $ $ $ $ $ $ $ $

2,700 300 4,500 1,800 1,875 1,800 12,975

$ $ $ $ $ $ $ $ $

3,600 3,600

$ $ $ $ $ $ $ $ $

4,500 400 7,500 3,000 3,125 3,000 21,525

$ $ $ $ $ $ $ $ $

7,200 7,200

$ $ $ $ $ $ $ $ $

4,500 400 7,200 7,500 3,000 3,125 3,000 28,725

Subtotal Consultants:

$ $ $ $ $

91,600 14,000 12,000 117,600

$ $ $ $ $

-

$ $ $ $ $

99,000 4,000 8,000 111,000

$ $ $ $ $

-

$ $ $ $ $

190,600 18,000 20,000 228,600

$ $ $ $ $

-

$ $ $ $ $

190,600 18,000 20,000 228,600

Construction Services Site Prep Buildings and Foundations Arctic Piping Distribution System Subtotal Construction Services:

$ $ $ $

-

$ $ $ $

-

$ $ $ $

2,500 54,736 48,311 105,547

$ $ $ $

-

$ $ $ $

2,500 54,736 48,311 105,547

$ $ $ $

-

$ $ $ $

2,500 54,736 48,311 105,547

Other Owner's CM/Insurance Donation of Boiler Building Contract to update 2007 Feasibility Study Miscellaneous/Contingency Subtotal Other:

$ $ $ $ $

-

$ $ $ $ $

23,000 39,700 62,700

$ $ $ $ $

25,000 25,000

$ $ $ $ $

-

$ $ $ $ $

25,000 25,000

$ $ $ $ $

23,000 39,700 62,700

$ $ $ $ $

23,000 39,700 25,000 87,700

TOTALS

$

$

105,082

$

484,226

$

43,248

$

697,475

$

148,330

$

845,805

58

$ $ $ $ $ $ $ $ $ $

Cost

Travel: Port Graham Staff to Anchorage Chugachmiut Staff to Port Graham Consultant Travel to Port Graham Subtotal Travel

213,250

$ $ $ $ $ $ $ $ $ $

Total All Phases Request Match $ 20,584 $ 12,271 $ 9,896 19,986 $ 35,349 $ 25,708 $ 81,043 $ 42,752 $ 15,818 28,365 $ 109,408 $ 58,570

Total Salary and Benefits

37% 35%

195 195 195 644 644 644

Phase IV Request Match $ 10,444 $ 6,226 $ 5,021 10,141 $ 17,936 $ 13,044 $ 41,120 $ 21,692 $ 8,026 14,392 $ 55,513 $ 29,718

$ $ $ $ $ $ $ $ $ $

Contractual - Consultants Project Consultants (Refer to attached work sheet) Permits and Legal A&E Construction Design detail

52.00 31.00 25.00 15.30 27.06 19.68

Phase III Request Match $ 10,140 $ 6,045 $ 4,875 9,846 $ 17,413 $ 12,664 $ 39,923 $ 21,060 $ 7,792 13,973 $ 53,896 $ 28,852

$ $ $ $ $ $ $ $ $ $

20,584 12,271 9,896 19,986 35,349 25,708 123,795 15,818 28,365 167,978

Port Graham Village Council Draft Budget for BIOMASS a Project Related Travel Port Graham Administration Port Graham to Anchorage Pat Norman, First Chief Total Port Graham Travel - Phase III a Project Related Travel Chugachmiut Administration Anchorage to Port Graham Charlie Sink, Technical Assistance Nathan Lojewski, Forester Elmer Moonin, Project Assistant Total Chugachmiut Travel - Phase III a

b # of Trips 3

b # of Trips 6 2 2

b

Phase III Travel d e

c # of days in travel status Per Diem Air fare 6 $ 450 $ 1,086

c d e # of days in travel status Per Diem Air fare 3 $ 450 $ 543 3 $ 450 $ 543 3 $ 450 $ 543

c d e # of days Consultant Travel per trip Phase III in travel # of status Per Diem Trips Air fare Tom Roche Associates - Houston, TX 5 6 $ 806 $ 1,086 4 6 $ 1,333 $ 1,086 Doug Latulippe - rem Engineering - Atlanta, G Total Phase III Consultant Travel:

f

g

# of Total travelers Travel/trip 1 $ 4,608 $ 4,608 f

g

# of travelers 1 1 1

Total Travel/trip $ 5,958 $ 1,986 $ 1,986 $ 9,930

f

g

# of Total travelers Travel/trip 2 $ 18,920 1 $ 9,676 $ 28,596

a Project Related Travel Port Graham Administration Port Graham to Anchorage Pat Norman, First Chief Total Port Graham Travel - Phase IV a Project Related Travel Chugachmiut Administration Anchorage to Port Graham Charlie Sink, Technical Assistance Nathan Lojewski, Forester Elmer Moonin, Project Assistant Total Chugachmiut Travel - Phase IV a

b # of Trips 3

b # of Trips 6 2 2

b

# of Trips Consultant Travel per trip Phase IV Tom Roche Associates - Houston, TX 4 Doug Latulippe - rem Engineering - Atlanta, G 3 Total Phase IV Consultant Travel:

59

Phase IV Travel e

c d # of days in travel status Per Diem Air fare 6 $ 450 $ 1,086

c d e # of days in travel status Per Diem Air fare 3 $ 450 $ 543 3 $ 450 $ 543 3 $ 450 $ 543

c d e # of days in travel status Per Diem Air fare 6 $ 806 $ 1,086 6 $ 1,333 $ 1,086

f

g

# of Total travelers Travel/trip 1 $ 4,608 $ 4,608 f

g

# of travelers 1 1 1

Total Travel/trip $ 5,958 $ 1,986 $ 1,986 $ 9,930

f

g

# of Total travelers Travel/trip 2 $ 15,136 1 $ 7,257 $ 22,393

Project Budget Table Rate ($/HR)

Phase III Activities

$175

$125

($ - lump sum)

$150

($ - lump sum)

Roche

rem Eng.

Professional services

Lending Advisor

Project Accounting

Task 1 - Resource Supply Plan

24

Task 2 - System Design

16

60 $

$

1,500

Task 3 - Project Cost

24

24

$

1,500

Task 4 - Revenue Stream Agreements

32

16

$

1,500

Task 5 - Site Agreements

32

20

$

1,500

$

1,500

48 $

1,500

Task 6 - Permits Task 7 - Business and Operating Plan Total Hours Total Dollars

4

$

8

8 $

40

24 $

176 $30,800

12,000

2,000 -

156 $19,500

0 $

1,500

48

14,000

$7,200

Consultant Totals

0 $

10,500

380 $

82,000

$

9,600

$

91,600

Project Administration Monthly Status Reporting/Administration/PM Phase III - Total Admin Hours Phase III - Total Admin Dollars

32

32

32 $5,600

32

0

$4,000

Total Project Hours Phase III

208

188

Total Project Costs Phase III

$36,400

$23,500

64

$0

-

48

$14,000

444

$7,200

$10,500

Phase IV Activities Task 1 - Resource Supply Plan Task 2 - Verify and Update Projections and Efficiencies Task 3 - Existing Heating Systems Integration Task 4 - EPC Contracts / Agreements

0

0

$

2,000

12

12

$

2,000

8

60

$

2,000

12

40

$

2,000

$

2,000

$

2,000

Task 5 - Prposed System Design

8

Task 6 - Staffing Plan

8

8

Task 7 - Project Cost

12

40

$

2,000

8

12

$

2,000

$

2,000

$

2,000

Task 8 - Environmental Task 9 - Permits

80 $

12

Task 10 - Analysis And Recommendation Total Hours Total Dollars

12 $

40

40

120

304

$21,000

$38,000

8,000

-

0 $

8,000

0 $

-

0 $

20,000

424 $

87,000

Project Administration Monthly Status Reporting/Administration/PM Phase IV - Total Hours

40

40

40

40

Phase IV - Total Dollars

$7,000

$5,000

Total Project Hours Phase IV

160

344

Total Project Costs Phase IV

$28,000

$43,000

Total Hours

368

532

Total Dollars

$64,400

$66,500

0

80

$0

-

-

$8,000

$0

-

48

$

$20,000

12,000

504 $

99,000

Total Project Labor (Both Phases)

60

$22,000

$7,200

$30,500

948 $

190,600

Port Graham Biomass District Heating Project Project Schedule - Phase II

Number Task/Milestone

Start

End

1 Resource Supply Plan Milestone: Project scoping and contractor solicitation 2 Energy System Design Milestone: Project scoping and contractor solicitation Milestone: Final system design 3 Project Cost Milestone: Engineers cost estimate Milestone: Project scoping and contractor solicitation Milestone: Updated economic and financial analysis 4 Revenue Stream Agreements Milestone: Heat sales agreement in place with approved rates 5 Site Agreements Milestone: Resolution of land use, right of way issues 6 Permits Milestone: Permit application Milestone: Permit approvals Milestone: Final environmental assessment and mitigation plans 7 Business and Operating Plan Milestone: Final business and operating plan

61

Duration (days)

YEAR - 2011 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Port Graham Biomass District Heating Project Project Schedule including Phase IV

Number Task/Milestone 1 Renewable Supply Plan 2 Verify and Update Projections and System Efficiency 3 Existing Heating System Coordination and Integration with existing building system 4 EPC Contracts/Agreements Milestone: Completion of bid documents Milestone: Contractor/Vendor selection and award 5 Proposed System Design: Construction and Commissioning Construction Phases Major Equipment Delivered Fuel Harvesting Equipment Garn Boiler Pumps/Valves Controls and Switchgear Heat Exchangers Arctic Pipe Site Work Mobilization Excavation & Backfill Foundations Installation and Construction Receive & Set Equipment Structural/Bldg Modifications Piping/Mechanical Electrical including controls and monitoring Interconnection Commissionning Equipment Testing Systems Integration and Testing Start-Up Training Punch List Milestone: Construction Milestone: Integration and Testing Milestone: Decommissioning of Old System Complete Milestone: Final Acceptance, Commissioning and Start-Up Complete 6 Staffing Plan Implement training program 7 Project Cost 8 Environmental 9 Permitting 10 Analysis and Recommendations Milestone: Operations Reporting

Start

62

End

Duration (days)

YEAR - 2012 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

63

64

65

66