Enclosure 4A - Project Summary Form NATIONAL FIRE PLAN COMMUNITY ASSISTANCE AND WILDLAND URBAN INTERFACE PROJECTS Application for Fuels Utilization and Marketing Projects Applicant Applicant/Organization: Bellingham Whatcom Economic Development Council Phone: 360-676-4255 Email: bwedc@bwedc.org FAX: 360-647-9413 Address (Street or P. O. Box, City, State, Zip): P.O. Box 2803, Bellingham, WA 98227 Project Coordinator Project Coordinator (Name and Title): Frederick Sexton, President Organization/Jurisdiction: Bellingham Whatcom Economic Development Council Phone: 360-676-4255 Email: bwedc@bwedc.org FAX: 360-647-9413 Project Information Project Title: Biomass Power Plant Project Start: Spring 2002 Project End: Fall 2002 for completion of the feasibility study; Spring 2005 for completion of the power plant Federal Funding Request: $40,000 Total Project Funding: $50,000 Are you submitting multiple projects? If so, please explain and prioritize: Brief Project Description: The removal of tons of forest fuels under the National Fire Plan raises two issues – whether the material can be disposed of in an environmentally manner, and whether the material can be utilized for an economic benefit. This proposal provides a viable solution for both of those issues, as well as providing quality jobs and tax revenues for Whatcom County, Washington. Logistically, Whatcom County is a suitable location for a biomass power plant, including the availability of forest debris for use as a fuel source. However, the county faces a significant hurdle before the project can get under way. A feasibility study must be conducted to determine the size and location of the plant as well as identify other necessary fuels and users of the steam and/or power that will be generated by the facility. The Fuels Utilization and Marketing Projects grant will fund the feasibility study, which will be completed within six months. If feasible, construction can begin on the project that will create a profitable use for the forest fuels while providing a non-polluting method of their disposal. Project Location: Precise location undetermined County: Whatcom County, Wash. WWasWashingtonWashington If the applicant is an unincorporated area, define the geographic area being represented: Congressional District: Second Enclosure 4B (Page 1 of 3) - Project Narrative Description Applications for funding must include a narrative response that describes the proposal. Please do not submit responses longer than one page, single space, 12-pitch font. Describe project including, but not limited to: project location Address these project implementation items as anticipated outcomes applicable: measures and reporting partners project income project time frames specify types of activities and equipment used amount or extent of actions (acres, number of homes, etc) environmental, cultural and historical resource requirements Response: The scope of the project is actually twofold. The grant will help fund a feasibility study, which will lead to the construction of a biomass power plant. 1. The thrust of this grant is to study the feasibility of locating a biomass plant in Whatcom County. Energy Products of Idaho (EPI) or another independent contractor will conduct the study within six months for the county. It will include the basic elements for a biomass plant. First is the fuel availability on a continuing basis, and second is the sale of steam and/or generated electricity on a contractual arrangement to an appropriate utility or consumer. Additionally, the feasibility study will include the following items as outlined in an RFP: A review and documentation of the current studies in process and completed relating to forest fuels available; A Gannt chart listing required tasks and persons responsible for such tasks, the costs for each task and an estimated date for task completion; A pro forma financial statement, including an economic analysis, outlining the anticipated costs and income factors based upon the recommended biomass plant size. A biomass plant size recommendation based upon fuel availability, continuity of fuels, and contractual electrical sales (megawatt production capability); An environmental specifications report identifying the type and amount of pollutants the proposed plant may create by technologies evaluated; A report on the infrastructure needs, such as water, of the proposed plant; A site recommendation. Cost of the study is $50,000, of which the grant will provide $40,000. Costs of the study will include plant drawings (20 percent), forest fuel availability (10 percent), plant process calculations (10 percent), administrative (10 percent), combustion efficiency and emissions (10 percent), power/steam potential (10 percent), local administration (10 percent), pro forma (5 percent), plant location (5 percent), necessity of alternative fuels (5 percent), and infrastructure needs (5 percent). 2. The development of a biomass power plant typically takes from two to three years for a five- to ten-megawatt plant. The first year would be dedicated to securing: Fuel and power or steam contracts A construction site Air quality, building and zoning permits Funding. An Environmental Impact Statement also may be required. Actual construction and startup activities should take about one year to eighteen months to complete. A five-megawatt plant usually occupies about 20 acres and employs about 25 people. Enclosure 4B (Page 2 of 3) - Project Evaluation Criteria Applications for funding must include narrative responses that address the following four criteria. Within each criterion, subcriteria are listed in descending order of importance. Limit your responses to the areas provided. 1. Increasing Local Capacity (35 Points) A. How would the proposal improve or lead to the improvement of the local economy in terms of jobs and sustainable economic activity? How many jobs are expected to be created or retained and for how long (please distinguish between essentially year-round and seasonal jobs)? B. Will biomass or forest fuels be utilized; if so, in what manner and how much? C. Which, if any, private businesses will participate? D. To what extent will this project be offered to serve as a model for other communities or businesses? Response: A. A five-megawatt biomass power plant will create about 25 permanent, year-round positions at the plant site. Additionally, the plant would generate an undetermined number of other local jobs related to the harvesting forest fuels and transporting them to the facility. B. Forest fuels will be used at the approximate rate of 150 tons per day. Other biomass fuels also could be utilized including municipal solid waste, animal waste, agricultural and industrial waste and sewage and paper sludge. C. The contractor, as selected through the RFP process, will conduct the feasibility study. If the project is feasible, the selected contractor will design and construct the plant with the help of subcontractors. Other private contractors will be involved in the collection and transportation of forest and other fuels to the plant. D. The project will serve as a model in two capacities: 1. Fluidized bed technology is exceptionally clean in terms of emissions, and can combust a much wider range of fuels, which allows the owner/operator to compensate if one fuel source diminishes. This technology is not widely known by municipalities, which could benefit from its use. 2. Developers of the project will help the Forest Service establish a viable method of collecting forest fuels and transporting them to the site of the power plant. These harvesting methods can be employed by other projects. 2. Reducing fire risk. (30 points) Describe how the proposal promotes reduction of risk in high hazard areas and communities. Describe how the proposed project benefits resources on federal land or adjacent non-federal land, or how it protects the safety of communities. C. To what extent does the project implement or create a cooperative fuels treatment plan or community fire strategy (include evidence of the plan if it already exists)? D. Explain how the proposal (a) leads to, enhances or restores a local fire-adapted ecosystem, and/or (b) mitigates or leads to the mitigation of hazardous fuels conditions. A. B. Response: A. The project will provide a permanent, non-polluting means of utilizing forest fuels that are adjacent to populated areas. The forest fuel will be used to produce power, which is a direct benefit to the respective communities and a motivation to remove the materials on a continual basis. B. Thinning ladder fuels not only reduces fire danger, but also enhances the health of the forest. However, not all of the ladder fuels have an economic benefit. Finding a use for slash and other small-diameter material could be difficult in the absence of a biomass power plant. C. A guaranteed method of disposing of otherwise useless forest waste will help foster a cooperative fuels treatment plan or community fire strategy. D. Providing a profitable use for forest fuels will provide the impetus to maintain a mitigation of hazardous conditions. Enclosure 4B (Page 3 of 3) - Project Evaluation Criteria B. Increasing interagency and intergovernmental coordination. (15 Points) A. To what extent have interested people and communities been provided an opportunity to become informed and involved in this proposal? B. Describe the extent of local support for the project, including any cost-sharing arrangements C. What are the environmental, social and educational benefits of the project? Response: A. The Whatcom County Council and the Bellingham Whatcom Economic Development Council are informed, involved and supportive of the project. B. The level of local support is high. The County Council has endorsed the proposal, and the Bellingham Whatcom Economic Development Council is the applicant. The Bellingham Whatcom Economic Development Council is providing $2,000 cash of the local match and assuming the responsibility for the match balance. C. Environmental – In addition to reducing wildfires and improving the health of the forest by utilizing ladder fuels, the project will provide a non-polluting method of disposing of the debris. Fluidized bed technology has proven to be the cleanest combustion method in the industry. The alternatives would be natural decomposition, open burning, or landfilling, none of which are environmentally friendly methods of disposal. Social – The project will provide numerous well-paying jobs to the community as well as a reliable, environmentally friendly source of power. Tax revenues from the plant will help fund the community infrastructure and social programs. Educational – The project will provide a tangible example of how fluidized bed technology can convert waste into energy without harming the environment. Public awareness of the benefits of green power has become a priority of the government, and Whatcom County will be a case in point. 4. Increasing interagency and intergovernmental coordination. (20 Points) A. Explain the level of cooperation, coordination or strategic planning among federal, state, tribal, local government and community organizations in developing this proposal. List the cooperators. B. Describe how this project implements a local intergovernmental strategy or plan, or creates such a plan. Describe the plan if it already exists. Response: A. Partners in the project include the Whatcom County Council and the Bellingham Whatcom Economic Development Council. B. The afore-mentioned entities as well as various Whatcom County agencies have been aggressively working on an economic development strategy that will bring jobs to the community. Job creation through a biomass power plant project will have a multiple effect. 1. Jobs will be created at the biomass plant site for operation and maintenance. 2. Ancillary jobs will be created through the removal of forest fuels as well as the transportation of materials in the various operations related to the biomass plant. 3. Administrative jobs will be created to monitor and manage entire systems ranging from fuels location and extraction to ash disposal to power sales and transfers. 4. There will also be a significant boost to the local economy through a dramatically increased tax base and the flow of new dollars to circulate within the community. Enclosure 4C - Project Work Form Tasks Time Frame Responsible Party Conduct a feasibility study to determine the size and location of a biomass power plant in Whatcom County as well as identify other necessary fuels and users of the steam and/or power that will be generated by the facility. Six months. Independent contractor selected through the RFP process. Design and construct a biomass power plant in Whatcom County. Three years maximum. Contractor. Enclosure 4D - Project Budget Cost Category Description Federal Agency Applicant Partner 1 $40,000 $2,000 $8,000 Partner 2 Total Personnel Subtotal Fringe Benefits Subtotal Travel Subtotal Equipment Subtotal Supplies Subtotal Contractual Subtotal Other Subtotal Total Costs $50,000 Project (Program) Income1 1 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.