Wood chip committee formed

By NATHAN LAMB | Milton Independent Staff Writer
miltonreporter@yahoo.com

After months of discussing pros and cons of converting the Milton schools to wood chip heat, the School Board has formed a special subcommittee to tackle the issue.

Among other things, the group will be charged with fleshing-out a test-case scenario where only Milton High School would get wood chip heat next year.

The group—and the incremental approach--were suggested by board member Steve Rose. He said converting the High School first could alleviate concerns both over cost increases with the project and community opposition to a wood chip plant at the elementary school.

Board Chairman Doug Stout supported formation of a group, and asked Rose to take charge of that effort.

“This is what I’ve been looking for: is someone to take the ball,” he said.

In addition to Rose, the subcommittee will include board member Darren Carner, district staff, and consultants who have advised the district on wood chip heat to-date.

The $2.4 million project is being considered by school officials as a cost-saving measure that would reduce the district’s dependence on fossil fuels.
Most of the conversion costs are eligible for 90 percent reimbursement from the state, but the timeframe for re-payment—and the amount of interest the town will incur as a result—remain open questions.

Further, district officials originally calculated a 90 percent reimbursement across-the-board for a local contribution of $240,000, but that number has since grown to $540,000 because parts of the project are only eligible for 30 percent.

While the district has secured bonding authorization for a $240,000 local contribution, they have yet to designate where the rest of the money would come from. By converting only one building this year, the schools could likely avoid seeking more funds from voters, explained Rose.

“If it works and we get reimbursement from the state…we take a large chunk out of the project and we don’t have to go back to the town,” he said.
There was also some debate on how much the district would save by converting to wood heat. Counting both capital and estimated interest costs, board member Jim Lyons projected the project as costing $900,000, if the state takes four years to deliver reimbursement. With an estimated annual savings of $80,000, it would take the district 11 years to see a return on that investment, explained Lyons.

Stout agreed with Lyon’s math on the costs, but said district’s savings could rise over the years. The district’s current set of projections show the cost of wood chips rising slower than natural gas or oil—to the extent that the district is projected to save a quarter million dollars from the conversion in year 20 alone, said Rose.

Board member and State Representative Reg Godin agreed that the incremental approach could make sense, and added there could be relief on the interest payments: Godin said he plans to introduce a bill at the next legislative session that would require the state to pick up all interest payments on projects like the wood burners after two years. The rationale is that the state shouldn’t leave the towns holding the bag on interest indefinitely for such projects, though Godin conceded he’s uncertain how far the measure will get.

In any event, the district is operating under the assumption that any conversion to wood chips would need to take place during the summer recess at the schools, which was a requirement in the Development Review Board’s approval of the project.

While the district has secured bonding authorization for a $240,000 local contribution, they have yet to designate where the rest of the money would come from. By converting only one building this year, the schools could likely avoid seeking more funds from voters, explained Rose.

“If it works and we get reimbursement from the state…we take a large chunk out of the project and we don’t have to go back to the town,” he said.
There was also some debate on how much the district would save by converting to wood heat. Counting both capital and estimated interest costs, board member Jim Lyons projected the project as costing $900,000, if the state takes four years to deliver reimbursement. With an estimated annual savings of $80,000, it would take the district 11 years to see a return on that investment, explained Lyons.

Stout agreed with Lyon’s math on the costs, but said district’s savings could rise over the years. The district’s current set of projections show the cost of wood chips rising slower than natural gas or oil—to the extent that the district is projected to save a quarter million dollars from the conversion in year 20 alone, said Rose.

Board member and State Representative Reg Godin agreed that the incremental approach could make sense, and added there could be relief on the interest payments: Godin said he plans to introduce a bill at the next legislative session that would require the state to pick up all interest payments on projects like the wood burners after two years. The rationale is that the state shouldn’t leave the towns holding the bag on interest indefinitely for such projects, though Godin conceded he’s uncertain how far the measure will get.

In any event, the district is operating under the assumption that any conversion to wood chips would need to take place during the summer recess at the schools, which was a requirement in the Development Review Board’s approval of the project.

While logistics of the conversion indicate a decision would be needed by February at the latest, Godin noted that the issue would likely impact budget planning that’s slated for January.

“We’ll have to make a decision at some point or another about whether we think it’s something feasible that we should put into the budget,” he said.