Native Village of Port Graham - 2012 Project

Background

The community desires to maintain its cultural identity and ties, including developing means to increase its self-sufficiency. Effectively using its forest resources will provide Port Graham with greater self-sufficiency, versus its current need to import diesel.

In 2006, Port Graham was awarded funding through the U.S. Department of Energy (DOE) Tribal Energy Program to conduct a biomass feasibility study to analyze the biomass resource data, evaluate site selection and energy load, evaluate cogeneration technology, and determine engineering economics. From 2006 to 2009, Port Graham and its tribal members also participated in Integrated Resources Management Plans (IRMPs) for Nanwalek and Port Graham, Phase 1 and 2, with support from the U.S. Bureau of Indian Affairs. The tribe identified and documented in these IRMPs a focus to develop renewable energy projects, and specifically biomass projects.

In October 2009, Building Tribal Energy Development Capacity for the Port Graham Biomass Project, funded by the U.S. Department of the Interior (DOI) Office of Indian Energy and Economic Development, was completed. It documented the Village Council's capacity and capability to staff and manage a biomass utility business.

This phase is based on recently completed feasibility and planning studies. "The Potential for Biomass District Energy Production in Chugachmiut Communities" was prepared by the Energy and Environmental Research Center at the University of North Dakota, and resulted in the selected feasible biomass technology option of a GARN boiler. It will provide hot-water heat from a woody biomass fuel source that can be sustainably harvested from forestlands adjacent to the community. These forestlands are Port Graham Village Corporation and Native allotment lands. An existing road system supplies access to the fuel source.

Project Objectives

Developing renewable heat and power is a key component of the Native Village of Port Graham's long-term vision to increase its self-sufficiency, along with its cultural and economic sustainability. Port Graham, along with its sister Native Village of Nanwalek, has successfully and methodically undertaken planning and feasibility studies to envision and move toward this vision of energy sustainability.

This project supports Port Graham's Integrated Resource Management Plan to "Respectfully utilize our natural resources to provide social and economic benefits to our people." By using the skills and capabilities of the project development team to address preconstruction requirements to construct and operate a biomass heating system, Port Graham will take a key step toward its energy vision.

Port Graham's vision is outlined in the phases below. The project, under this grant, is Phase 2, preconstruction.

• Phase 1 – Planning and Feasibility Studies
• Phase 2 – Preconstruction Activities
• Phase 3 – Construction
• Phase 4 – Operations
• Phase 5 – Planning for Expansion
• Phase 6 – Tribally Owned Biomass Utility

The goal of this preconstruction project is to complete the preconstruction requirements, including permitting, finalized preliminary engineering design, fuel source agreements, financing agreements, operation plan, and a business plan, and be ready to build the biomass heating system.

Project Scope

Overall project management will be provided by the Port Graham business contact, who will act to negotiate with DOE the terms of the grant agreement. The business contact will also provide on-site management in the village where the proposed biomass heating system will be located. The tribal administrator will act as a point of contact to the business contact. The technical contact will be served by a local partner.

Work teams will be developed comprised of representatives of the Port Graham Village Council, Port Graham Village Corporation, Chugachmiut, consultants/partners, and others as appropriate, to facilitate project development/preconstruction activities. These work teams will address project-specific issues such as terms of fuel source agreements, financial, construction, and operational issues, permitting, etc.

Tasks to be completed under this preconstruction project include:

• Develop Renewable Energy Resource Supply
• Finalize Preliminary Heating System Design
• Finalize Preliminary Project Costs
• Acquire Revenue Stream Agreements and Develop Financial Management Plan
• Acquire Site Agreements
• Acquire Permits
• Develop Business and Operating Plan.

Project Location

Port Graham Village is predominately Alutiiq heritage, and approximately 85% of the residents are Alaska Native, residing in the Native Village of Port Graham overlooking Cook Inlet in south-central Alaska. Port Graham Village, located at the southern tip of the Kenai Peninsula on the lower Cook Inlet, is only accessible by water or air. Port Graham is 30 air miles south of Homer and 200 air miles from Anchorage. It is not connected to a road system and can only be reached by boat or airplane. The community of 140 persons, primarily of Aluiiq descent, has a school, a tribal council building, a clinic, two stores, a cannery, and a Native Corporation office.