ID Number 2007-21
Utilization and Marketing Projects Application
NATIONAL FIRE PLAN COMMUNITY ASSISTANCE AND WILDLAND URBAN INTERFACE PROJECTS
Applicant
Applicant/Organization:
Harney District Hospital
Type of Applicant:
G (Unknown)
Email:
drose@harneydh.com
Phone:
541-573-5184
FAX:
541-573-8627
Please Call Ahead for FAX:
Off
Please Call Ahead for FAX:
Off
Address (Street or P. O. Box, City, State, Zip):
557 W. Washington Burns, OR 97720
Project Coordinator
Project Coordinator (Name and Title):
Mr. Jim Bishop, Hospital Administrator
Organization/Jurisdiction:
Harney District Hospital
Email:
jbishop@harneydh.com
Phone:
541-573-8329
FAX:
541-573-8353
Project Information
Project Title:
Wood Boiler System for the new Harney District Hospital
Project Location:
Burns, Oregon
County:
Harney
Congressional District:
2
Latitude:
43.5415
Longitude:
119.0504
State the desired outcome in relation to NFP Goals and the Community Wildfire Protection Plan (CWPP). Project Objectives:
Our project proposes to use pelletized wood waste as the primary heat source for a new Critical Access hospital being constructed in Harney County, OR.
The pelletized wood will heat boilers to generate hot water for direct use in the hospital as well as pre-heat water for zoned heat pumps. While this strategy
has been applied in a few schools in the nation, to our knowledge, this approach has never been tried in a public hospital. This has the advantage of using
wood created from thinning and sawmill waste to replace petroleum-based heat sources; it will create jobs in thinning, manufacturing, transport, and boiler
maintenance. At current pricing and engineering estimates, this strategy will save approximately $20,000 per year in heating costs for the non-profit hospital.
It will serve as the "anchor tenent" for Harney County to consider installing the same system in schools (currently under study) and in local manufacturers.
And, it will serve as an economic demonstration
Name of CWPP:
to be determined
Name of Communit(y/ies) at Risk:
Harney County, Oregon
Proposed Project Start Date:
03/01/2006
Proposed Project End Date:
07/01/2007
Federal Funding Request:
$250,000.00
Total Project Cost:
$860,385.00
Are you submitting multiple projects?
No
If YES indicate the relationship of the projects to one
another:
If YES, please list the titles of projects by priority and briefly explain their relationship.
N/A
Name of Federal, State or Tribal contact with whom you coordinated this Organization/Jurisdiction:
proposal:
1) Jeff Rose
Phone
BLM, Burns District
541-573-4400
2) Larry Swan
Phone
Email
USFS, Klamath Falls, OR
541-883-6708
Email
3)
Phone
Email
Project Planning Information
Name of Local Coordinating Group:
Harney County Wildfire Protection Group
For this project, explain the level of cooperation, coordination or strategic planning, through a "Local Coordination Group." If you have not worked with a
local coordination group, why not?
Planning has occured with many public forums, meetings with the school district and OR econonic dev
List federal lands that are adjacent to the project and proximity.
Malheur Nat. Forest, Malhuer Wildlife Refuge, Burns Dist. BLM
Will this project utilize fuels from an adjacent current fuel reduction project on federal lands or to one that is planned within the next three years?
Yes
Please indicate planned treatments and associated acres:
Treatment
Biomass Removal
Acres
1000
Treatment
Biomass Removal
Acres
0
Treatment
Biomass Removal
Acres
0
Treatment
Biomass Removal
Acres
0
Treatment
Acres
0
If you have a treatment type other than standard types above:
Treatment
Acres
0
Project Evaluation Criteria
Applications for funding must include narrative responses that address the following criteria. Be sure you address every one briefly, yet thoroughly.
1. Increasing utilization, management and economic impacts of woody material removed in fuels management and forest restoration
activities (60 points)
A. Will biomass, thinnings or other surplus forest fuels be utilized? If so, in what manner and how much? How many acres will be treated? Are any of these
acres within the wildland-urban interface? If so, how many? (20 points)
Response:
Thinnings of pine forests may be combined with Juniper removal for water restoration projects to provide the fuels. Tests have been run on pelletizing
Juniper along with conventional wood sources. Pellet sources may come from a wide area in both Western and Eastern Oregon. If the project is proven
feasible and is adopted by schools and other entities, a pellet mill may be constructed in Harney County, thus providing an immediate benefit to the forests
adjacent to Burns and Hines Oregon.
B. Will the project improve the local economy in terms of jobs and sustainable economic activity? If so, how many and what type of jobs will be created or
retained (i.e., wage-scale, full-time equivalent), and for how long? What percent of the jobs are expected to be filled from the local labor force? (10 points)
Response:
The immediate impact is saving $20,000 per year forever for the Health District. Hauling and handling the wood boilers will create at least two jobs. As the
pellet strategy becomes more widely adopted, there will be significant job creation in thinning, pelletizing, packaging, transport, and conventional sawmills.
Ultimately, we believe that power generation is possible from this fuel source. Ultimately, the project could generate at least 50 permanent FTE positions.
C. Are there private businesses involved in this project? If so, what are their roles and investment? How will the project be structured to minimize or
eliminate te perception of use of public funding to create an unfair competitive advantage for those private businesses involved? (10 points)
Response:
The District Hospital gets only 7% of its revenue from public sources, and is considered by most to be a private employer. We have held public hearings on
wood heating, and have been heavily praised for this creative and money saving idea. The boilers, pellet handling equipment, and the pellets themselves will
all be from private company sources. There is no public entity currently producing wood pellets. The hospital construction project is funded primarily with
loans to be repaid.
D. If the project involves new product development, what evidence is there for economically viable and sustainable markets? (10 points)
Response:
Wood pellets are not a new idea, and are widely used in US homes and European homes and businesses. The best commercially-sized pellet boilers are from
Europe. Given the changing energy costs in the US, biomass is a currently viable solution but with few projects in operation. Some development is required
in handling and storage large quantities of pellets, but existing handling equipment can be adapted. We can demonstrate the sustainability of the concept in
our hospital project.
E. Can this project be offered as a model for other communities or businesses? If so, why and how will results of this project be disseminated or made
available? (5 points)
Response:
We believe our project is unique in hospital usage, and would demonstrate viability in most if not all communities in the US. We are already receiving a
good amount of press coverage for other creative approaches we are using in offering high-quality, high-tech health care in a rural community, so the pellet
heating project would be included in this press. We have also consulted with Larry Swan of the US Forest Service in Klamath Falls OR about having the
project studied and published.
F. How will the project be sustained beyond project timelines? If public funding will continue to be needed, why, how much, and for how long? (5 points)
Response:
The cost is in the installation and design work for the handling equipment. Once in place, our studies indicate that this will continue to save real dollars
compared to all other heat and energy sources available in the area. Thus, it will remain a viable and self-sustaining project on into the future. However, it
will be even more viable as other large users come on board so that ultimately we can build a community pellet mill. Reducing transportation costs would
increase savings even more.
2. Taking Advantage of Existing Networks, previously-funded projects and knowledge. (20 points)
A. How does this project take advantage of relevant, existing networks and the results from previously-funded projects or commercial operations? (10
points)
Response:
Larry Swan, USFS, has been involved in a variety of projects and studies to (1) create a viable market for sawmill waste (2) add value to existing wood
products (3) find commercial ways to process Juniper. These studies and projects have created a network of mostly private producers and manufacturers that
can convert waste wood to useful wood pellets. A notable example is Blue Mountain Sawmill in Pendleton, now adding a pellet mill; they would be our best
source of wood pellets at start-up.
B. Who and what (individuals, businesses, organizations, reports, studies, Internet sites, etc.) were consulted to ensure the best information available was
used in designing this project proposal? (5 points)
Response:
CTA Architects did an initial feasibility study in July 2005, ancillary to designing the hospital. We updated the study using "Wood Fueled Boiler Financial"
program developed by Bob Govett, and supplied by Larry Swan.
C. How did your group arrive at your cost structure for all of the main areas including: personnel, equipment, supplies, and overhead? (5 points)
Response:
Cost structure was arrived at with studies by CTA, Skanska (our general contractor) and sources which specialize in construction of storage and handling
equipment for the wood and agricultural industries. The stated cost is the bid price.
3. Expanding community participation and collaboration. (20 Points)
A. Who are the partners and community members involved in planning and implementing the project? (5 points)
Response:
Partners include BLM, USFS, Harney County School District #3, Hospital Board of Directors, County Court, OR Economic Development staff, staff from
CTA Architects, staff from Skanska general contracts, and private logging interests.
B. How much cost-sharing is there for this project? (10 points)
Response:
The direct cost of the heating system for the hospital is $860,385 by bid. We are requesting $250,000--roughly 29% of the cost--to help with the design and
installation. Thereafter, all operating and maintenance costs are borne by the Health District. We estimate that in-kind and staff labor contributions from all
parties will add another $100,000 or more to the project.
C. What are the direct community benefits that will result from this project? (5 points)
Response:
Direct project benefits include: $20,000 per year in heating costs to the non-profit health district; adding at least two FTE in manufacturing, transport, and
maintenance; the potential for additional savings of $50,000 or more for the area schools.
Project Work Form
Tasks
Time Frame
Responsible Party
Design storage and handling equipment for the
pellet boiler, including trucking strategies to
minimize cost and preserve pellet quality.
by July 2006
CTA Architects
Select final pellet boiler suppler
By July 2006
CTA Architects Skanska contractores
Reach agreement with pellet suppliers in the region early 2007
Harney District Hospital
Assist schools in choosing boiler design and
calculating cost savings
ongoing currently
Harney District Hospital School district #3 Larry
Swan, USFS
New Hospital occupied
August 2007
Multiple
Assess and publicize results of the project,
including actual costs, savings, and challenges
after 8/07
Harney District Hospital
Project Budget
Cost Category
Description
Federal
Agency
Applicant
Partner 1
Partner 2
Partner 3
Total
Personnel
Subtotal
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$250,000.00
$610,380.00
$0.00
$0.00
$0.00
$860,380.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$250,000.00
$610,380.00
$0.00
$0.00
$0.00
$860,380.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$250,000.00
$610,380.00
$0.00
$0.00
$0.00
$860,380.00
$0.00
$300,000.00
$0.00
$0.00
$0.00
$300,000.00
Fringe Benefits
Subtotal
Travel
Subtotal
Equipment
Subtotal
Supplies
Subtotal
Contractual
Wood Heat System
Subtotal
Other
Subtotal
Total Costs
Project (Program) Income 1
(using deductive alternative)
Program income is the gross revenue generated by a grant or cooperative agreement supported activity during the life of the grant. Program income can be
made by recipients from fees charged for conference or workshop attendance, from rental fees earned from renting out real property or equipment acquired
with grant or cooperative agreement funds, or from the sale of commodities or items developed under the grant or cooperative agreement. The use of Program
Income during the project period may require prior approval by the granting agency.
1