HomeMy WebLinkAboutAPP_13011-Shungnak REF Application Form (Heat) - Round 13Alaska Energy Authority – AEA 21010
Renewable Energy Fund Grant Application
City of Shungnak
Shungnak Heat Recovery Expansion
Shungnak, AK
City of Shungnak
Shungnak Heat Recovery Expansion
Application Contents
SECTION 1: Applicant Information ................................................................... 1
SECTION 2: Project Summary ........................................................................... 3
SECTION 3: Project Management, Development, and Operation ................... 5
SECTION 4: Qualifications and Experience ................................................... 11
SECTION 5: Technical Feasibility ................................................................... 15
SECTION 6: Economic Feasibility and Benefits ............................................ 25
SECTION 7: Sustainability ............................................................................... 28
SECTION 8: Project Readiness ....................................................................... 30
SECTION 9: Local Support and Opposition ................................................... 31
SECTION 10: Compliance with Other Awards................................................ 31
SECTION 11: List of Supporting Documentation for Prior Phases .............. 32
SECTION 12: List of Additional Documentation for Consideration .............. 32
SECTION 13: Authorized Signers Form.......................................................... 33
SECTION 14: Additional Documentation and Certification ........................... 34
Appendix A ................................................................................................. 35
Shungnak Heat Recovery Feasibility Study ............................................ 36
Appendix B ................................................................................................. 72
City of Shungnak Resolution .................................................................. 73
ANTHC Letter of Commitment ................................................................ 75
AVEC Letter of Support .......................................................................... 76
Northwest Arctic Borough Letter of Support ............................................ 77
Maniilaq Letter of Support ...................................................................... 78
Appendix C ................................................................................................. 79
Fuel Invoices .......................................................................................... 80
Attachment A ..................................... Submitted Separately with Application
Evaluation Model ........................... Submitted Separately with Application
Attachment B ...................................... Submitted Separately with Application
Resumes of Key Personnel ........... Submitted Separately with Application
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SECTION 1 – APPLICANT INFORMATION
Please specify the legal grantee that will own, operate, and maintain the project upon completion.
Name (Name of utility, IPP, local government, or other government entity)
City of Shungnak
Tax ID # 92-0046092
Date of last financial statement audit: Second class city audit exemption under AS 29.20.640.
The city’s FY 2019 Operating Budget and previous years’ Certified Financial Statements are on file
with the Alaska Dept. of Commerce and are accessible through the Financial Documents Delivery
System.
Mailing Address: Physical Address:
PO Box 59 Wendy Street
Shungnak, AK 99773 Shugnak, AK 99773
Telephone: Fax: Email:
(907)437-2161 (907)437-2176 shungnak@gmail.com
1.1 Applicant Point of Contact / Grants Manager
Name: Dustin Madden Title: Rural Energy Program Manager
Mailing Address:
Alaska Native Tribal Health Consortium
Division of Environmental Health & Engineering
Rural Energy Program
3900 Ambassador Drive, Suite 301
Anchorage, Alaska 99507
Telephone: Fax: Email:
(907)304-2142 (907)729-4090 dmmadden1@anthc.org
1.1.1 Applicant Signatory Authority Contact Information
Name: Helen Mitchell Title: City Administrator
Mailing Address:
PO Box 59
Shungnak, AK 99773
Telephone: Fax: Email:
(907)437-2161 (907)437-2176 shungnak@gmail.com
1.1.2 Applicant Alternate Points of Contact
Name Telephone: Fax: Email:
Dan Smith (907) 729-3589 (907)729-4024 dlsmith@anthc.org
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1.2 Applicant Minimum Requirements
Please check as appropriate. If applicants do not meet the minimum requirements, the application
will be rejected.
1.2.1 Applicant Type
☐An electric utility holding a certificate of public convenience and necessity under AS 42.05
CPCN #______, or
☐An independent power producer in accordance with 3 AAC 107.695 (a) (1)
CPCN #______, or
☒A local government, or
☐A governmental entity (which includes tribal councils and housing authorities)
Additional Minimum Requirements
☒1.2.2 Attached to this application is formal approval and endorsement for the project by the
applicant’s 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 by checking the box)
☒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
(Section 3 of the RFA). (Indicate yes by checking the box)
☒1.2.4 If awarded the grant, we can comply with all terms and conditions of the award as
identified in the Standard Grant Agreement template at www.akenergyauthority.org/what-we-
do/grants-loans/renewable-energy-fund-ref-grants/2020-ref-application (Any exceptions
should be clearly noted and submitted with the application.) (Indicate yes by checking the
box)
☒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. If no please describe the nature of the project and who will
be the primary beneficiaries. (Indicate yes by checking the box)
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SECTION 2 – PROJECT SUMMARY
2.1 Project Title
Provide a 4 to 7 word title for your project. Type in the space below.
Shungnak Heat Recovery Expansion
2.2 Project Location
2.2.1 Location of Project – Latitude and longitude (preferred), street address, or
community name.
Latitude and longitude coordinates may be obtained from Google Maps by finding you project’s
location on the map and then right clicking with the mouse and selecting “What is here? The
coordinates will be displayed in the Google search window above the map in a format as follows:
61.195676.-149.898663. If you would like assistance obtaining this information, please contact
AEA at (907) 771-3081.
Latitude 66.888101 Longitude -157.139768
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
Shungnak, Alaska
2.3 Project Type
Please check as appropriate.
2.3.1 Renewable Resource Type
☐Wind to Heat ☐Biomass or Biofuels
☐Hydro to Heat ☐Solar Thermal
☒Heat Recovery from Existing Sources ☐Heat Pumps
☐Other (Describe)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre-Construction Construction
☐Reconnaissance ☒Final Design and Permitting
☐Feasibility and Conceptual Design ☒Construction
2.4 Project Description
Provide a brief, one-paragraph description of the proposed heat project.
The proposed project will expand the heat recovery system in Shungnak, AK to provide heat for
the health clinic, cookhouse community center, VPSO housing, and community store, displacing an
estimated 14,036 gallons of fuel oil being used annually in these community facilities, for an
estimated cost savings of $115,797 per year at the current fuel price of $8.25 per gallon. The heat
recovery system currently serves the collective heating needs of the water treatment plant and city
office. This proposed expansion is possible due to AVEC replacing all of its diesel generators with
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models that include marine manifolds, which will significantly increase the amount of recovered
heat available.
2.5 Scope of Work
Provide a short narrative for the scope of work detailing the tasks to be performed under this
funding request. This should include work paid for by grant funds and matching funds or performed
as in-kind match.
The scope of this project includes the design and construction of a system to expand the heat
recovery system in Shungnak, Alaska in order to serve the health clinic, cookhouse community
center, VPSO housing, and community store, in addition to the currently-served water treatment
plant and city office. The system will transfer the additional recoverable heat from the jacket water
heat generated by the new CAT 3456 and Detroit Series 60 generators equipped with marine
manifolds to the additional community facilities via 1,800 feet of insulated arctic pipe buried
approximately 3 feet deep. The power plant will receive new equipment including a larger heat
exchanger, updated controls, and piping, and the community facilities will be tied in to the system
with equipment including VFD circulation pumps, brazed plate heat exchangers, insulated piping,
and BTU meters. Shungnak is a member of ANTHC’s Alaska Rural Utility Collaborative (ARUC),
and so construction is expected to be completed by ARUC field staff and local laborers.
Design: This design effort will provide a construction ready design for the heat recovery project to
include a kickoff meeting, civil, mechanical, and electrical engineering, support will include CAD
and survey; the design phase will also include the production of a heat sales agreement.
Pre-Construction: construction schedule, schedule of values, material take-off, heavy equipment
and tool take off, work force planning, field office and accommodations, establishing
local labor force accounts and insurance policies, design review, cost estimate, pre-construction
conference.
Construction: Installation of the system as designed, on-site testing and inspections, field survey,
construction management reports, materials ordering and expediting, compiling of manufacturer’s
literature, creation of O&M manual, local labor force payroll administration, as-built redlines,
quarterly grant reports, superintendent supervision and assistance
Post-Construction: Pre-final and final inspections, closeout documentation, record drawings,
demobilization, start-up and operator training
Project Management: will be ongoing through all project phases; this will include but is not limited
to: coordinating with the funding agency on reporting, working as the liaison between stakeholders
and the community, providing status updates, managing the project budget, coordinating with
design and construction personnel.
2.6 Previous REF Applications for the Project
See Section 1.15 of the RFA for the maximum per project cumulative grant award amount
Round
Submitted
Title of application Application
#, if known
Did you
receive a
grant? Y/N
Amount of REF
grant awarded
($)
N/A N/A N/A N/A N/A
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SECTION 3 – Project Management, Development, and Operation
3.1 Schedule and Milestones
Please fill out the schedule below (or attach a similar sheet) for the work covered by this funding
request. Be sure to identify key tasks and decision points, including go/no go decisions, in your
project along with estimated start and end dates for each of the milestones and tasks. Please
clearly identify the beginning and ending of all phases (I. Reconnaissance, II. Feasibility and
Conceptual Design, III. Final Design and Permitting, and IV. Construction) of your proposed
project. See the RFA, Sections 2.3-2.6 for the recommended milestones for each phase. Add
additional rows as needed.
Task # Milestones Tasks Start
Date
End
Date Deliverables
III-1
Project scoping
and selection of
design team
Finalize project
scope, select
contractor or
ANTHC design
services for design,
conduct kickoff
meeting
8/1/21 10/1/21
III-2 65% design
Initial site visit, 65%
draft drawings,
specs, and cost
estimate
10/1/21 2/1/22 65% design drawings
III-3 Heat sales
agreement
Develop heat sales
agreement 11/1/21 2/1/22 Heat sales agreement
III-4 95% design
65% design review
meeting, responses
and completion of
95% design
2/1/22 4/1/22 95% design drawings
III-5 Final design
documents
95% design review
meeting, finalize
system after
comments
4/1/22 5/1/22 Issued for Construction
Drawings and Specs
III-0 Project
management Throughout design
phase
IV-1 Pre-construction
meeting 6/1/22 6/1/22
IV-2 Construction 6/1/22 10/1/22
IV-3 Commissioning 10/1/22 11/1/22
IV-4 Final inspection
and follow-up 11/1/22 12/1/22
Fully operational heat
recovery system serving
clinic, cookhouse,
VPSO housing,
community store
IV-5 Project Closeout
Monitor project
performance, write
final grant report,
financial closeout
12/1/22 12/1/23 Final grant report
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IV-0 Project
management Throughout
construction phase
3.2 Budget
3.2.1 Funding Sources
Indicate the funding sources for the phase(s) of the project applied for in this funding request.
Grant funds requested in this application $1,303,607
Cash match to be provideda $0
In-kind match to be provideda $0
Energy efficiency match providedb $0
Total costs for project phase(s) covered in application (sum of above) $1,303,607
Describe your financial commitment to the project and the source(s) of match. Indicate whether
these matching funds are secured or pending future approvals. Describe the impact, if any, that
the timing of additional funds would have on the ability to proceed with the grant.
While the City of Shugnak has not secured matching funding or in-kind resources that will
support this project, the city, tribe, borough, regional tribal health organization, and ANTHC are all
highly invested and committed to the successful completion of the project. ANTHC has committed
to providing direct project management and financial support to the project, and the has already
invested substantially in the completion of a feasibility study. The cost estimates presented in the
table below represent anticipated costs of the proposed system with potential unexpected changes
in site conditions, unknowns, and logistics incorporated.
a Attach documentation for proof (see Section 1.18 of the RFA)
b See Section 8.2 of this application and Section 1.18 of the RFA for requirements for Energy Efficiency
Match.
3.2.2 Cost Overruns
Describe the plan to cover potential cost increases or shortfalls in funding.
ANTHC will make every effort to keep the project within the budget. In previous instances
where there were project overruns, ANTHC has successfully tapped into other funding
opportunities to make up the budget deficits. If there are cost increases or shortfalls in funding, the
first option would be to work with community leadership to attempt to secure gap funding using
AHFC’s Alaska Energy Efficiency Revolving Loan fund and pay back the loan using savings from
the project. Other potential gap funding sources include the Northwest Arctic Borough’s Village
Improvement Fund or the Alaska Department of Environmental Conservation’s State Revolving
Fund loan.
ANTHC will work with the City of Shungnak to identify additional funding sources on an as-
needed basis to see this project through to completion. ANTHC personnel have extensive
experience identifying and acquiring supplemental funding in order to complete projects, including
a Grants Planning and Development Division that operates the Healthy Alaska Natives Foundation,
which serves as the fundraising arm of the ANTHC.
3.2.3 Total Project Costs
Indicate the anticipated total cost by phase of the project (including all funding sources). Indicate if
the costs were actual or estimated. Use actual costs for completed phases.
Reconnaissance Actual $0
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Feasibility and Conceptual Design Self-Financed by
ANTHC
$0
Final Design and Permitting Estimated $125,803
Construction Estimated $1,113,804
Total Project Costs (sum of above) Estimated $1,239,607
Metering/Tracking Equipment [not included in project
cost]
Estimated $64,000
3.2.4 Funding Subsequent Phases
If subsequent phases are required beyond the phases being applied for in this application,
describe the anticipated sources of funding and the likelihood of receipt of those funds.
State and/or federal grants
Loans, bonds, or other financing options
Additional incentives (i.e. tax credits)
Additional revenue streams (i.e. green tag sales or other renewable energy subsidies or
programs that might be available)
If awarded, AEA funding will support the completion of design, permitting, and construction,
and the project will be concluded. No subsequent phases will require further financial support.
3.2.3 Budget Forms
Applications MUST include a separate worksheet for each project phase that was identified in
section 2.3.2 of this application — I. Reconnaissance, II. Feasibility and Conceptual Design, III.
Final Design and Permitting, and IV. Construction. Please use the tables provided below to detail
your proposed project’s total budget. Be sure to use one table for each phase of your project, and
delete any unnecessary tables. The milestones and tasks should match those listed in 3.1 above.
If you have any question regarding how to prepare these tables or if you need assistance preparing
the application please feel free to contact AEA’s Grants Manager Karin St. Clair by email at
grants@akenergyauthority.org or by phone at (907) 771-3081.
Phase 3 — Final Design and Permitting
Milestone or Task
Anticipated
Completion
Date
RE- Fund
Grant Funds
Grantee
Matching
Funds
Source of
Matching
Funds:
Cash/In-
kind/Federal
Grants/Other
State
Grants/Other
TOTALS
(List milestones based on
phase and type of project.
See sections 2.3 thru 2.6 of
the RFA )
$ $
Design review (65% and 95%) 4/15/22 $4,458 $ $4,458
Final design documents 5/1/22 $117,274 $ $117,274
Project management – Final
Design Phase 5/1/22 $4,071 $ $4,071
TOTALS $125,803 $ $125,803
Budget Categories:
Direct Labor & Benefits $8,529 $ $8,529
Travel & Per Diem $0 $ $0
Equipment $0 $ $0
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Materials & Supplies $0 $ $0
Contractual Services $117,274 $ $117,274
Construction Services $0 $ $0
Other $0 $ $0
TOTALS $125,803 $ $125,803
Phase 4 — Construction
Milestone or Task
Anticipated
Completion
Date
RE- Fund
Grant Funds
Grantee
Matching
Funds
Source of
Matching
Funds:
Cash/In-
kind/Federal
Grants/Other
State
Grants/Other
TOTALS
(List milestones based on
phase and type of project.
See sections 2.3 thru 2.6 of
the RFA )
$ $ $
Construction & Commissioning 11/1/22 $1,036,000 $ $1,036,000
Final inspection and follow-up 12/1/22 $14,963 $ $14,963
Project management and
closeout 12/1/23 $62,841 $ $62,841
TOTALS $1,113,804 $ $1,113,804
Budget Categories:
Direct Labor & Benefits $268,717 $ $268,717
Travel & Per Diem $46,739 $ $46,739
Equipment $36,410 $ $36,410
Materials & Supplies $632,257 $ $632,257
Contractual Services $114,718 $ $114,718
Construction Services $14,963 $ $14,963
Other $0 $ $0
TOTALS $1,113,804 $ $1,113,804
3.2.4 Cost Justification
Indicate the source(s) of the cost estimates used for the project budget, including costs for future
phases not included in this application.
Costs for this project were taken from the Heat Recovery Feasibility Study for Shungnak, AK
prepared by ANTHC in 2016; these costs were developed based on engineering expertise and
recent design and construction costs of similar ANTHC projects. The detailed costs from this study
for material, subcontractor, and local labor were adjusted to 2020 dollars using historical consumer
price index data for Alaska, and then adjusted to 2022 dollars using the 2.25% projected inflation
from the Alaska Permanent Fund Corporation.
Construction labor, design review, and project management costs for ANTHC personnel used
hour estimates from the feasibility study and current employee salaries to update costs to the
current period. Expenses for potential changes in the final design, site conditions, unknown or
unforeseen issues, and logistics have been incorporated into the budget.
3.3 Project Communications
3.3.1 Project Progress Reporting
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Describe how you plan to monitor the progress of the project and keep AEA informed of the status.
Who will be responsible for tracking the progress? What tools and methods will be used to track
progress?
The City of Shungnak will enter into a Cooperative Project Agreement (CPA) with ANTHC which
will authorize Consortium personnel to provide project and grant management services for the
proposed heat recovery project.
The Grants Management and Compliance Department is overseen by the Grants and Other
Restricted Revenue Manager, with personnel staffed to provide comprehensive grants
administration and assistance. The department manages an approximate total of $250 million in
grant-funded projects on an annual basis, and ANTHC’s current portfolio includes grants from a
variety of federal and state government agencies, as well as a number of nonprofit organizations
and foundations from within and outside the State of Alaska.
Grant Specialists with ANTHC’s Grants Management and Compliance Department work to
coordinate grant reporting activities with project managers, communicate with external funding
agencies to ensure goals and objectives are met, grant reports and closeout data are submitted on
time, and project managers, supervisors, and accounting staff manage grant-funded projects
according to the grantor’s requirements. ANTHC’s Grant Specialists use the Microsoft office suite
of software to monitor grant activities and reporting requirements, working closely with project
managers and finance staff to continuously review and improve departmental operations.
ANTHC prepares quarterly reports on all of the capital projects that it currently manages. This
same methodology of reporting will be utilized for this project should grant funds be awarded to the
City of Chignik. Reporting for this project will provide quarterly financial and narrative reports.
Financial reports with detailed expense information on each community for labor, materials, travel,
and indirect will be produced. Narrative reporting will discuss the status of the project as a whole
and any problems in carrying out the scope. Quarterly reports will be produced one month after the
close of each quarter (April 30, July 31, October 31, January 31).
Dan Smith, CEM, will be the Project Manager responsible for tracking the progress of this
project using ANTHC’s budget and project tracking software tools (Cognito, INFOR, etc.). Written
project progress reports will be provided to the AEA project manager as required by the grant, and
meetings will be conducted by ANTHC, the City of Shungnak, AVEC, AEA, and other project
stakeholders as needed to discuss the status of the project on an ongoing basis.
3.3.2 Financial Reporting
Describe the controls that will be utilized to ensure that only costs that are reasonable, ordinary
and necessary will be allocated to this project. Also discuss the controls in place that will ensure
that no expenses for overhead, or any other unallowable costs will be requested for reimbursement
from the REF Grant Program.
The City of Shungnak will enter into a CPA with ANTHC to provide comprehensive project and
financial management for the proposed heat recovery project. The following information illustrates
the organizational capacity and financial controls that are in place to ensure grant funds are
managed efficiently:
ANTHC is a large organization with over 3,140 employees and a Fiscal Year 2018 operating
budget of $651 million. Of that amount, approximately $255 million was grant funded. The
Consortium’s Chief Financial Officer has the overall responsibility for the fiscal and administrative
oversight of grant awards.
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In an effort to ensure that ANTHC is compliant with all federal, state and private funding
received as well as the Uniform Administrative Requirements, Cost Principles and Audit
Requirements for federal awards (2 CFR Part 200), a Grants Management and Compliance
Department was created and works in partnership with the ANTHC Finance department. The
financial accounting system includes controls to prevent incurring obligations in excess of total
funds available for the grant. ANTHC performs in-house financial management and has sufficient
internal controls in place to establish proper segregation of time management and segregation of
duties.
All funds awarded to the City of Shungnak and contracted to ANTHC will be maintained and
accounted for separately and distinctly from other sources of revenue/funding. Internal controls
are in place to ensure that federal and state funds are used solely for the authorized purposes
intended by using multiple levels of approval ensuring award funds are managed properly. The
Consortium meets all funders requirements and assigns a unique accounting – cost center number
to each award received. ANTHC also has an annual independent audit completed.
The Procurement and Contracting Department works with program managers to ensure
appropriate scopes of work, performance measures, and compliance requirements are
incorporated into all contracts. This is completed through a computerized contracts procurement
and management software.
The Finance Department oversees the implementation and maintenance of internal monetary
and accounting controls, follows corporate accounting policies, provides compliance monitoring
and enforcement of financial requirements, and performs mandated record ret ention for the
Consortium.
ANTHC has a 17-year history of clean audits, conducted by an independent accounting firm in
accordance with the Single Audit Act. ANTHC will provide records and accounting records
available to state and federal auditors on request. Project finance information will be kept in
ANTHC DEHE’s Spectrum, a job cost accounting software that accounts expenditures by phase
code and cost types. Procurement and Contracting and Finance staff are the primary users of the
system, with information available to project teams on an ongoing basis.
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SECTION 4 – QUALIFICATIONS AND EXPERIENCE
4.1 Project Team
Include resumes for known key personnel and contractors, including all functions below, as an
attachment to your application. In the electronic submittal, please submit resumes as separate
PDFs if the applicant would like those excluded from the web posting of this application.
4.1.1 Project Manager
Indicate who will be managing the project for the Grantee and include contact information. 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.
Dan Smith, C.E.M.
Project Manager
Dan has extensive experience managing a variety of alternative energy and energy efficiency
projects specifically designed for implementation in cold climate communities. Dan has developed
a firm knowledge of energy project management in his role with ANTHC’s Rural Energy Program,
in addition to managing energy projects and collaborating with various tribal, municipal, state,
federal, and non-profit organizations with previous employers. Dan has earned a Bachelor’s
degree in civil engineering and is a Certified Energy Manager (CEM), which, in combination with
his years of experience in energy project development, gives him a strong background for
managing projects that encompass mechanical, electrical, and civil engineering principles and
adapting them to the numerous challenges present when conducting projects in rural Alaska.
Telephone: (907) 729-3589 Email: dlsmith@anthc.org
4.1.2 Project Accountant
Indicate who will be performing the accounting of this project for the grantee. If the applicant does
not have a project accountant indicate how you intend to solicit financial accounting support.
Hansel Mathlaw
Grants and Other Restricted Revenue Manager
Hansel has more than 15 years of accounting experience, and will be directly overseeing the
management of funding received through the City of Shungnak’s contract with ANTHC. In his
current role, Hansel is responsible for directing the activities associated with grants and project
accounting for all ANTHC divisions. As the Grants and Other Restricted Revenue Manager, Hansel
works closely with Grant Specialists to ensure grant-funded projects comply with applicable laws
and grantor requirements. He is responsible for reviewing and analyzing financial reports for
external financial reporting, completing monthly reconciliations of project grant receivables,
allocating indirect costs, and tracking matching funds required by funders.
4.1.3 Expertise and Resources
Describe the project team including the applicant, partners, and contractors.
For each member of the project team, indicate:
the milestones/tasks in 3.1 they will be responsible for;
the knowledge, skills, and experience that will be used to successfully deliver the tasks;
how time and other resource conflicts will be managed to successfully complete the task.
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If contractors have not been selected to complete the work, provide reviewers with sufficient detail
to understand the applicant’s capacity to successfully select contractors and manage complex
contracts.
The ANTHC Rural Energy Program has worked in partnership with rural communities, tribal
organizations, funding agencies, and other ANTHC departments over the past 10 years to identify,
develop, and implement more than 140 renewable energy and energy efficiency projects that have
already saved communities approximately $19 million in energy costs, with more than $3.6 million
in savings continuing to accrue annually.
ANTHC’s Alaska Rural Utility Collaborative (ARUC) group has experience constructing and
optimizing similar heat recovery systems in their member communities and is more than capable of
providing the construction portion of the project utilizing local force account labor resources where
available. Key personnel includes:
DEHE's Tribal Utility Support Program has utility support engineers that will be available to
provide training to local workers on operations and maintenance of the heat recovery system, as
well as produce materials.
ANTHC’s Division of Environmental Health and Engineering (DEHE) has a full service
engineering group to utilize for this project to either design the system internally or provide design
review if subcontracted. Our projects are focused on the planning, design, construction and
operations of public health infrastructure throughout the state of Alaska. Professional engineers at
DEHE are involved in all aspects of a project, from planning to design to force account
construction.
Key personnel for each department include the following:
Dustin Madden
Rural Energy Program Manager
Dustin oversees ANTHC’s Rural Energy Program, which will be responsible for the overall
development, reporting, and project management activities of the proposed Shungnak Heat
Recovery Expansion. He manages a team of eight staff with a portfolio of approximately $15
million in renewable energy and energy efficiency projects. He has extensive background in energy
and economic analysis, program evaluation, and energy modeling, all focused on Alaska. Dustin
will be involved in providing support throughout all phases of the project.
Gunner Hodgson
Field Manager, Alaska Rural Utility Collaborative (ARUC)
Gunner has served in his position as an Engineering Project Manager with ANTHC’s ARUC
team for over four years. His experience includes designing, purchasing, fabricating, installing,
testing, operating, and maintaining various arctic plumbing and electrical systems. Gunner has
supported projects to installing and improving systems for potable water, gravity and vacuum
sewers, waste heat recovery, and filtration, including controls for operating and maintaining these
systems. His work has involved managing and overseeing the work of ANTHC and village workers
through on-the-ground and remote supervision.
Gunner will be responsible for coordinating the team of ARUC field engineers and operations
specialists to construct the heat recovery expansion line and connect it to the community facilities
receiving the additional heat. He will be the responsible for the majority of the construction work
during phases IV-1 through IV-3.
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Brian Menghini
Engineering Project Manager, Tribal Utility Services (TUS)
Brian has served in his position as an Engineering Project Manager with ANTHC’s TUS team
for over four years. He has supported projects by leading design and review for proposed
construction upgrades, development of scope and cost estimates for small projects,
implementation of water and wastewater plant upgrades, energy efficiency measure
implementation, and community support efforts for water treatment and wastewater treatment
needs. Projects have required regular communication with multiple community members as well as
interdepartmental staff.
Brian is responsible for leading the team that will provide training on efficient operations and
maintenance of the system as well as producing wall charts and other training materials for
ongoing reference. These activities will be conducted during phases IV-2, IV-3, and IV-4.
Christopher Cronick
Tribal Utility Support Engineer
Christopher has served in his position as a Tribal Utility Support Engineer for nearly three years,
and has assisted communities throughout Alaska with a broad spectrum of engineering and
technical support for new and existing water and wastewater utilities.
Christopher will be part of the team that the team that will provide training on efficient
operations and maintenance of the system, which will be conducted during phases IV-2, IV-3, and
IV-4.
Annie Messer
Contracting Officer
Annie has been with ANTHC for more than a decade, and has over 30 years’ worth of
procurement and contracting experience. She oversees all DEHE-related contracting and
procurement activities. Annie works with finance to ensure adherence to finance and risk
requirements, maintains contractual documentation, provides contracts and acts as the middleman
between company employees and customers to ensure timely reviews and approvals of all
contractual obligations.
Annie will be responsible for working with the Project Manager to identif y qualified contractors
to complete Task III. ANTHC will use a contracting method for producing the most cost effective,
quality end product, selecting from several contractors who have delivered on similar projects in
the past.
Additional support for the project will be provided by the Grants Management and Compliance
Department by:
Heather Hanak Dongoski
Grant Specialist
Heather has served as a Grant Specialist with ANTHC for over nine years, and has significant
experience coordinating with ANTHC project managers and funding agencies on post award
requirements, grant objectives, compliance issues, budget revisions, and special terms and
conditions for grant-funded activities. She helps facilitate preparation and timely submission of all
quarterly, annual, and as needed reports to grantors by monitoring grant reporting requirements
and communicating deadlines to, and collecting information from, project managers as needed to
fulfill grant obligations.
4.2 Local Workforce
Describe how the project will use local labor or train a local labor workforce.
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Shungnak is a member of ANTHC’s Alaska Rural Utility Collaborative (ARUC), and so there are
strong working relationships between the community and ANTHC. Force account local labor is
expected to be a significant portion of the construction of this project. Training for local laborers will
be provided by either ARUC field staff or ANTHC’s Tribal Utility Support team, which regularly
provides training on construction, operations, and maintenance staff in rural communities
throughout the state.
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SECTION 5 – TECHNICAL FEASIBILITY
5.1 Resource Availability
5.1.1 Assessment of Proposed Energy Resource
Describe the potential extent/amount of the energy resource that is available, including average
resource availability on an annual basis. For pre-construction applications, describe the resource to
the extent known. For design and permitting or construction projects, please provide feasibility
documents, design documents, and permitting documents (if applicable) as attachments to this
application (See Section 11). Likelihood of the resource being available over the life of the project.
See the “Resource Assessment” section of the appropriate Best Practice Checklist for additional
guidance.
With AVEC’s installation of the diesel gensets equipped with marine manifolds, the ANTHC
feasibility study estimated that the available recoverable heat will be approximately 335 and 628
MBH depending on season. This amount of excess heat is estimated to be sufficient to displace
essentially all of the heating load for the clinic, cookhouse, VPSO housing, and community store, in
addition to the facilities already served by the system. The following graph shows the seasonal
comparison of heating loads to available recovered heat resource (after supplying the city office
and water treatment plant):
5.1.2 Alternatives to Proposed Energy Resource
Describe the pros and cons of your proposed energy resource versus other alternatives that may
be available for the market to be served by your project.
Heat recovery systems are a proven technology in rural Alaska and have a long track record of
providing low cost, reliable heating to community facilities around the State. Shungnak is an ARUC
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community and has the support of ANTHC’s ARUC field team that has extensive experience
constructing these systems as well as providing training, maintenance, and troubleshooting
support.
Alternative energy resources that can be used for providing heat to these community facilities
include air source heat pumps (ASHP), solar thermal, and biomass. ASHPs rely on electricity
produced by diesel generation, and so are not economically viable if PCE subsidies are not
included; additionally, even modern cold climate models have very low coefficients of performance
at the winter temperatures experienced in Shungnak. Solar thermal capital costs are high and
require significant amounts of on-going maintenance; they also will provide less energy when
heating loads are highest. Biomass heating systems are a potentially viable option for these
community facilities, though a feasibility study conducted in 2013 estimated longer paybacks for a
biomass boiler than the proposed heat recovery expansion system, even using costs for new
construction, which would likely be less expensive than the current retrofit situation.
5.1.3 Permits
Provide the following information as it may relate to permitting and how you intend to address
outstanding permit issues. See the “Environmental and Permitting Risks” section of the appropriate
Best Practice Checklist for additional guidance.
List of applicable permits
Anticipated permitting timeline
Identify and describe potential barriers including potential permit timing issues, public
opposition that may result in difficulty obtaining permits, and other permitting barriers
No permits are anticipated for this heat recovery project. If during the course of the project,
permits are needed, ANTHC and/or any contractors working on the project will obtain the
appropriate permits.
5.2 Project Site
Describe the availability of the site and its suitability for the proposed energy system. 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. See the “Site control” section of the
appropriate Best Practice Checklist for additional guidance.
There are no apparent conflicts with land ownership, as the heat recovery piping route is
entirely within existing rights-of-ways and on city and AVEC property. The city is the applicant and
AVEC has submitted a letter of support for the project.
5.3 Project Technical & Environmental Risk
5.3.1 Technical Risk
Describe potential technical risks and how you would address them.
Which tasks are expected to be most challenging?
How will the project team reduce the risk of these tasks?
What internal controls will be put in place to limit and deal with technical risks?
See the “Common Planning Risks” section of the appropriate Best Practice Checklist for additional
guidance.
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In general, there are no technological or financial risks involved with the plan to expand the heat
recovery system from the power plant to provide heat to the additional community facilities
identified. Installing the necessary heat exchangers, piping, pumps, and controls necessary for
implementation has been done many times before and proven effective for many years.
5.3.2 Environmental Risk
Explain whether the following environmental and land use issues apply, and if so which project
team members will be involved and how the issues will be addressed. See the “Environmental and
Permitting Risks” section of the appropriate Best Practice Checklist for additional guidance.
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 describe other potential barriers
No environmental risks are anticipated, as the heat recovery piping route is entirely within
existing rights-of-ways and on city and AVEC property. ANTHC will consider all potential
environmental concerns associated with this project. ANTHC has extensive experience using the
comprehensive Indian Health Service (IHS) environmental review procedures for conducting
environmental analysis of all health and sanitation facilities projects in all stages of development,
as outlined in the IHS environmental review manual issued in January 2007. ANTHC is also
regularly involved with water, sewer, energy, and other construction projects that require
successful completion of a National Historic Preservation Act of 1966 (NHPA) Section 106 review.
Threatened or Endangered Species:
A listing of all endangered or threatened plant and animal species for Alaska will be obtained
through the USFWS by the Project Manager. Due to the scale of the project and the areas of
proposed construction, it is unlikely that any threatened animal or plant species have critical habitat
that will be impacted.
Habitat Issues:
As part of the design phase of the project, the Project Manager will consult with the Alaska
Department of Fish & Game to review the project and identify any additional studies needed to
inform permitting.
Wetlands and other Protected Areas:
No wetlands or protected areas have been identified.
Archeological and Historical Resources:
An archeological and cultural resource assessment will be conducted prior to ground disturbing
activities. The site will also need a completed Historic Properties Management Plan which the city
will be required to finalize and submit.
The Area of Potential Effect (APE) is defined in the Section 106 regulations as the geographic
area or areas within which an undertaking may directly or indirectly cause changes in the character
or use of historic properties. Prior to any geotechnical work undertaken in the design and
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construction phases of the project, the city will be required to submit a Historic Properties
Management Plan to the State Historic Preservation Office.
Land Development Constraints:
None anticipated. The heat recovery piping route is entirely within existing rights-of-ways and
on city and AVEC property. The city is the applicant and AVEC has submitted a letter of support for
the project.
Telecommunications Interference:
None anticipated.
Aviation Considerations:
None anticipated.
Visual and Aesthetic Impacts:
Visual and aesthetic impacts were not evaluated in the feasibility study; however, it is not
anticipated that significant alterations will be made to community facilities that will cause any major
aesthetic changes to the buildings or landscape.
5.4 Technical Feasibility of Proposed Energy System
In this section you will describe and give details of the existing and proposed systems. The
information for existing system will be used as the baseline the proposal is compared to and also
used to make sure that proposed system can be integrated.
Only do sections applicable to your proposal. If your proposal does not include or affect the heat
recovered from the diesel gensets or include the additional electric heat loads, you can remove the
sections for power (electricity) generation.
5.4.1 Basic Operation of Existing Energy System
Describe the basic operation of the existing energy system including: generation by source on at
least a monthly basis description of control system; spinning reserve needs and variability in
generation (any high loads brought on quickly); and current voltage, frequency, and outage issues
across system. See the “Understanding the Existing System” section of the appropriate Best
Practice Checklist for additional guidance.
AVEC is currently finishing replacement of all generators in the Shungnak powerhouse with
three rebuilt generators: two CAT 3456s and one Detroit Diesel 60 series, all equipped with marine
manifolds. Automated switchgear is also being installed. These new gensets with marine manifolds
will significantly increase the availability of recovered heat, and the current system meets the
majority of the heating needs of the water treatment plant and city office.
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5.4.2.2 Existing Thermal Generation Units
Generation
unit
Resource/
Fuel type
Design
capacity
(MMBtu/hr)
Make Model Average
annual
efficiency
Year
Installed
Hours
Oil-fired
boilers w/
hydronic
heating
Heating
oil Various Various Various 70%
AFUE Various
5.4.2.4 Annual Electricity Production and Fuel Consumption (Existing System)
Use most recent year.
Include only if your project affects the recovered heat off the diesel genset or will include
electric heat loads
5.4.2 Existing Energy Generation and Usage
In the following tables, only fill in areas below applicable to your project. You can remove extra tables.
If you have the data below in other formats, you can attach them to the application (see Section 11).
5.4.2.1 Existing Power Generation Units (if applicable to your project)
Unit
#
Resource/
Fuel type
Design
capacity
(kW)
Make Model Minimum
design
load
Year
Installed
Hours of
Operation
2 Diesel 505 CAT
3456 1800
RPM w/
marine
manifold
2020
4 Diesel 363 Detroit
Series-60
1800 RPM
w/ marine
manifold
2020
5 Diesel 505 CAT
3456 1800
RPM w/
marine
manifold
2020
Positions
1 and 3
will be
vacant
Is there operational heat recovery? (Y/N) If yes estimated
annual displaced heating fuel (gallons)
Yes; heat sales agreements indicate
annual displaced fuel for the city office
and water treatment plant to be 1,500
and 5,000 gallons, respectively.
5.4.2.3 Operations and Maintenance (O&M) and replacement costs for existing heating units
i. Annual O&M cost for labor 8 hours clean + tune x 4 boilers x $54 loaded local labor
= $1,728
ii. Annual O&M cost for non-labor $100 x 4 boilers = $400
iii. Replacement schedule and cost for
existing units
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Month Generation
(Type 1)
(kWh)
Fuel
Consumption
(Diesel-
Gallons)
Peak
Load
NOTE: Data based on 2015 load profile
updated to data from FY19 PCE statistical
report (load growth of 2.6%)
January 167,687 11,538 358
February 147,735 10,765 317
March 165,327 11,031 306
April 145,055 10,042 288
May 118,672 8,734 263
June 101,022 7,011 198
July 96,502 7,065 179
August 92,878 6,627 253
September 124,474 9,851 271
October 136,783 10,989 277
November 158,311 11,230 304
December 165,858 12,760 364
Total 1,620,304 117,643 364
5.4.2.5 Average Annual Heating Fuel Consumption (Existing System): Annual consumption for
Clinic, cookhouse, VPSO housing, community store (based off of energy audits by Jim Fowler)
Month Heating
oil
(Gallons)
Electricity
(kWh)
Propane
(Gallons)
Coal
(Tons)
Wood
(Cords,
green tons,
dry tons)
Other
January 2,223
February 2,072
March 1,975
April 1,483
May 610
June 206
July 0
August 217
September 356
October 1,426
November 1,816
December 2,233
Total 14,618
5.4.3 Future Trends
Describe the anticipated energy demand in the community, or whatever will be affected by the
project, over the life of the project. Explain how the forecast was developed and provide year by
year forecasts. As appropriate, include expected changes to energy demand, peak load, seasonal
variations, etc. that will affect the project.
The energy demand for the community facilities proposed to be served by available heat is
expected to stay approximately the same over the life of the project. These are all essential
facilities in the community, and the AK-DOL population projections for 2019-2045 show slow
growth for the region, so they will likely continue to be used at the same or greater levels.
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Electricity demand is also likely to stay the same or show slow growth. PCE shows that
electricity production over the last five years in Shungnak has stayed fairly consistent:
Fiscal Year Total kWh Generated Year to Year % Change
FY19 1,620,304 -0.4%
FY18 1,626,999 1.1%
FY17 1,609,282 2.3%
FY16 1,572,529 -1.2%
FY15 1,591,761 No Data
A community-scale solar plus battery storage project is currently in development, with
construction expected in 2022. Preliminary analysis of the timing of the solar resource shows that
the period of high solar production that could potentially lead to decreased available heat does not
significantly overlap with the heating season, minimizing the impact to this project.
5.4.4 Proposed System Design
Provide the following information for the proposed renewable energy system:
A description of renewable energy technology specific to project location
The total proposed capacity and a description of how the capacity was determined
Integration plan, including upgrades needed to existing system(s) to integrate renewable
energy system: Include a description of the controls, storage, secondary loads, distribution
upgrades that will be included in the project
Civil infrastructure that will be completed as part of the project — buildings, roads, etc.
Include what backup and/or supplemental system will be in place
See the “Proposed System Design” section of the appropriate Best Practice Checklist for additional
guidance.
The heat recovery system captures jacket water heat generated by the generators at the AVEC
power plant that is typically rejected to the atmosphere through radiators. The recovered heat is
transferred through arctic piping to the end users. The objective is to reduce the consumption of
heating fuel by expanding the system to four additional facilities (the clinic, cookhouse, VPSO
housing, and community store) to fully utilize the increased amount of recovered heat available due
to the new gensets all having marine manifolds.
AVEC Plant Tie-In
The AVEC plant cooling system will be separated from the recovered heat system with an
injection pump, heat exchanger and controls designed to maintain minimum generator operating
temperature and provide physical isolation of the two systems. The methodology will follow the
standard approach favored by AVEC.
All heat recovery piping at the AVEC facility will be insulated with a minimum of 2-in insulation
and have an aluminum jacket where exposed to the weather. All valves will be either bronze ball
valves or lug style butterfly valves with seals compatible with 50/50 glycol/water mixtures at 200F.
Air vents, thermometers, pressure gauges, drain valves, and pressure relief valves will also be
provided.
Arctic Piping (Recovered Heat Loop)
The proposed arctic piping is based on a manufactured pre-insulated Polypropylene Random
Crystallinity Temperature (PP-RCT) pipe system with minimum of 2-in polyurethane foam
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insulation and HDPE outer jacket. The piping will be buried approximately 3 ft deep. Heat
recovery pipe will run from the AVEC plant within existing rights-of-way to the end-user
community facilities. An attached drawing (Appendix-A) identifies proposed routing and burial
method.
The recovered heat fluid will be a 50/50 Propylene Glycol/Water solution to provide freeze
protection to the piping.
Community Buildings Tie-In
The typical building tie in will consist of a VFD circulation pump to move heat from the power
plant to the respective buildings, a brazed plate heat exchanger and a separate pump to inject
heat into the building’s hydronic heating system designed to avoid introducing excessive
pressure drop in the building heating system.
Typical indoor piping will be type L copper tube with solder joints. Isolation valves will be
solder end bronze ball valves or flanged butterfly valves. All piping will be insulated with a
minimum of 2-in insulation with an all-service jacket. Flexibility will be provided where
required for thermal expansion and differential movement. Air vents, thermometers, pressure
gauges, drain valves, and pressure relief valves will also be provided.
Existing boiler systems will remain as back-up.
5.4.4.1 Proposed Thermal Generation Units
Generation
unit
Resource/
Fuel type
Design
capacity
(MMBtu/hr)
Make Model Expected
Average
annual
efficiency
Expected
life
Heat
Recovery
System
Waste
heat from
AVEC
plant
650 MBH,
subject to
final
design
Custom Custom 25 years
5.4.5 Basic Operation of Proposed Energy System
To the best extent possible, describe how the proposed energy system will operate: When will
the system operate, how will the system integrate with the existing system, how will the
control systems be used, etc.
When and how will the backup system(s) be expected to be used
See the “Proposed System Design” section of the appropriate Best Practice Checklist for additional
guidance.
Hot engine coolant is piped through a plate heat exchanger located at the power plant. Heat is
transferred from the engine coolant to the recovered heat loop without mixing the fluids. Controls at
the power plant are used to prevent sub-cooling of the generator engines which would reduce
electric power production efficiency. The recovered heat fluid is pumped through buried insulated
pipe to the end-user, and is tied into the end-user heating system using a plate heat exchanger.
The maximum anticipated delivered recovered heat supply temperature to the end-user
facilities is about 180F. When there is insufficient recovered heat to meet the building heating load,
the building heating system (boiler or heater) will fire and add heat. Off the shelf controls will lock
out the recovered heat system when there is insufficient recovered heat available. An additional
controller will look at the differential temperature across the heat exchanger and modulate the heat
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recovery circulation pump to minimize energy consumption. Controls will provide load shedding,
freeze protection, and prevent back feeding of boiler heat into heat recovery system.
5.4.5.1 Annual Heating Fuel Consumption (Proposed System)
Facility Heating
oil
(Gallons)
Electricity Propane
(Gallons)
Coal
(Tons)
Wood
(Cords,
green tons,
dry tons)
Other
Clinic 0
Cookhouse 0
VPSO
Housing
0
Community
Store
582
Total 582
5.4.7 Fuel Costs
Estimate annual cost for all applicable fuel(s) needed to run the proposed system (Year 1 of
operation)
Diesel
(Gallons)
Electricity Propane
(Gallons)
Coal
(Tons)
Wood Other
Unit cost
($)
$8.25
Annual
Units
582
Total
Annual
cost ($)
$4,802
5.5 Performance and O&M Reporting
For construction projects only
5.5.1 Metering Equipment
Please provide a short narrative, and cost estimate, identifying the metering equipment that will be
used to comply with the operations reporting requirement identified in Section 3.15 of the RFA.
BTU meters and magnetic flow meters with matching temperature elements will be installed in
all end-user facilities. This data will be automatically uploaded in near real time to ANTHC’s remote
monitoring system; this open-source data monitoring system is accessible to the public and can be
5.4.6 O&M, Replacement, and Other Costs for Proposed System
i.Annual O&M cost for labor Maintenance: Clean / tune boilers ¼ as often due to less
use: $432
Operations: No net increase
ii.Annual O&M cost for non-labor $100
iii. Replacement schedule and cost for
proposed units
Replace 1 heat exchanger and 1 pump at 10 years:
Equipment = $8,500, Labor = 30 hours @ $100 = $3,000,
Travel $1,500
iv. Other new costs (insurance, taxes, etc.)
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accessed at any time by AEA personnel. The total costs estimated in the feasibility study for this
equipment is approximately $64,000.
Hours/Quantity Unit Rate Total Cost
BTU meters 5 2,000 10,000
Flow meters 6 3,500 21,000
AVEC Link 5 3,000 15,000
Remote monitoring
equipment
6 3,000 18,000
Total $64,000
5.5.2 O&M reporting
Please provide a short narrative about the methods that will be used to gather and store reliable
operations and maintenance data, including costs, to comply with the operations reporting
requirement identified in Section 3.15 of the RFA
The City of Shungnak will track the number of hours used by local personnel to maintain the
heat recovery system. Any replacement or major repairs will likely be completed by ARUC field
engineers and tracked internally by ANTHC, which will make these hours and costs available to
AEA at request.
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SECTION 6 – ECONOMIC FEASIBILITY AND BENEFITS
6.1 Economic Feasibility
6.1.1 Direct Economic Benefits
Annual Lifetime
Anticipated Diesel Fuel Displaced for Power
Generation (gallons)
Anticipated Fuel Displaced for Heat
(gallons)
14,036 gallons 280,720 gallons
Total Fuel displaced (gallons) 14,036 gallons 280,720 gallons
Anticipated Diesel Fuel Displaced for Power
Generation ($)
Anticipated Fuel Displaced for Heat ($) $116,679 (in 2022) $1,867,003 net present
value
Anticipated Power Generation O&M Cost
Savings (Increases)
Anticipated Thermal Generation O&M Cost
Savings (Increases)
$1,596 annual
savings; $13k
additional cost at year
10
Total Other costs savings (taxes, insurance,
etc.)
Total Fuel, O&M, and Other Cost Savings $118,275 $1,880,938 net present
value
6.1.2 Economic Benefit
Explain the economic benefits of your project. Include direct cost savings and other economic
benefits, and how the people of Alaska will benefit from the project. Note that additional revenue
sources (such as tax credits or green tags) to pay for operations and/or financing, will not be
included as economic benefits of the project.
Where appropriate, describe the anticipated energy cost in the community, or whatever will be
affected by the project, over the life of the project. Explain how the forecast was developed and
provide year-by-year forecasts.
The economic model used by AEA is available at www.akenergyauthority.org/what-we-do/grants-
loans/renewable-energy-fund-ref-grants/2020-ref-application. This economic model may be used
by applicants but is not required. The final benefit/cost ratio used will be derived from the AEA
model to ensure a level playing field for all applicants. If used, please submit the model with the
application.
This project will directly benefit the community of Shungnak by reducing the cost of fuel to the
city by an estimated $116,679 annually starting in 2022. This is a significant amount of money for
the community, allowing the city to use this funding to either reduce the cost of essential services
like water and sewer or to meet other essential community needs.
Some of these savings will go to AVEC in the form of a heat sales agreement, which will help
ensure that the system is properly maintained and provide additional revenue, which ultimately leads
to lower electricity rates for AVEC communities.
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The AEA economic model shows a very favorable benefit cost ratio of 1.61, with a net present
value benefit to society of $711,304 for this project. See attached AEA economic model for details.
6.1.3 Economic Risks
Discuss potential issues that could make the project uneconomic to operate and how the project
team will address the issues. Factors may include:
Low prices for diesel and/or heating oil
Other projects developed in community
Reductions in expected energy demand: Is there a risk of an insufficient market for energy
produced over the life of the project.
Deferred and/or inadequate facility maintenance
Other factors
The risk of low prices for heating oil in this situation are low; Shungnak is a community where
fuel typically must be delivered via air and there is limited fuel storage in the community, which
adds significantly to the price per gallon. Even with current oil prices at around $40 per barrel the
retail price of fuel in Shungnak is $8.25 a gallon.
A community-scale solar plus battery storage project is currently in development, with
construction expected in 2022; preliminary analysis of the timing of the solar resource shows that
the period of high solar production that could potentially lead to decreased available heat does not
significantly overlap with the heating season, minimizing the risk to the savings in this project.
The end-users of this proposed heat recovery expansion are all high-use facilities, and are not
expected to have significantly reduced energy demand.
Heat recovery systems have a proven track record in rural Alask a and have little ongoing
operations and maintenance needs, especially over the 20-year period used by AEA to evaluate
the economics of these systems. Additionally, since this is an ARUC community, ANTHC is in
regular contact with O&M staff in the community and are in a position to provide ongoing support if
the system does require troubleshooting or repairs.
6.1.4 Public Benefit for Projects with Direct Private Sector Sales
For projects that include direct sales of power to private sector businesses (sawmills, cruise ships,
mines, etc.), please provide a brief description of the direct and indirect public benefits derived
from the project as well as the private sector benefits and complete the table below. See section
1.6 in the RFA for more information.
Not applicable, as this project will not directly or substantially impact sales of power to private
sector businesses.
Renewable energy resource availability (kWh per month) 0
Estimated direct sales to private sector businesses (kWh) 0
Revenue for displacing diesel generation for use at private sector businesses ($) $0
Estimated sales for use by the Alaskan public (kWh) $0
Revenue for displacing diesel generation for use by the Alaskan public ($) $0
6.2 Other Public Benefit
Describe the non-economic public benefits to Alaskans over the lifetime of the project. For the
purpose of evaluating this criterion, public benefits are those benefits that would be considered
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unique to a given project and not generic to any renewable resource. For example, decreased
greenhouse gas emission, stable pricing of fuel source, won’t be considered under this category.
Some examples of other public benefits include:
The project will result in developing infrastructure (roads, trails, pipes, power lines, etc.) that
can be used for other purposes
The project will result in a direct long-term increase in jobs (operating, supplying fuel, etc.)
The project will solve other problems for the community (waste disposal, food security, etc.)
The project will generate useful information that could be used by the public in other parts of
the state
The project will promote or sustain long-term commercial economic development for the
community
Apart from the long-term cost savings from which the community will collectively benefit, no
additional direct public benefits have yet been identified. Reducing an estimated $116,679 in
annual fuel costs will present many opportunities for the city to save and reinvest resources in a
variety of ways, including the expansion of services offered to the residents of Shungnak.
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SECTION 7 – SUSTAINABILITY
Describe your plan for operating the completed project so that it will be sustainable throughout its
economic life.
At a minimum for construction projects, a business and operations plan should be attached and the
applicant should describe how it will be implemented. See Section 11.
7.1.1 Operation and Maintenance Sustainability
Demonstrate the capacity to provide for the long-term operation and maintenance of the proposed
project for its expected life
Provide examples of success with similar or related long-term operations
Describe the key personnel that will be available for operating and maintaining the
infrastructure.
Describe the training plan for existing and future employees to become proficient at operating
and maintaining the proposed system.
Describe the systems that will be used to track necessary supplies
Describe the system will be used to ensure that scheduled maintenance is performed
Shungnak is a member of ANTHC’s Alaska Rural Utility Collaborative, which provides both
billing support for communities and technical support for systems connected to water and sewer
facilities, including heat recovery. This technical support includes both regional remote
maintenance workers located in Kotzebue as well as ARUC field engineers and operations
specialists. ARUC helps to maintain heat recovery systems already installed in 19 of its
communities, and has extensive experience diagnosing and fixing issues affecting operations of
these systems. Gunner Hodgson is the field manager for ARUC and is the lead on providing this
technical support; Mickey Jorgensen is the utility operations specialist located in Kotzebue and has
the community contacts and technical expertise necessary to quickly respond to problems with the
heat recovery system.
This project also has budgeted for the Tribal Utility Support (TUS) team to provide on-site
training to local personnel on proper operations and maintenance procedures for the heat recovery
system. This training includes a visual manual in the form of wall charts that are placed near
different key components of the system that describe their function as well as operations and
maintenance needs; these wall charts are essential to facilitate easy learning for new staff that
hasn’t received the initial in-person training. Brian Menghini heads the TUS team, which regularly
provides O&M training for heat recovery and water and wastewater systems in rural communities
throughout the state.
Finally, the remote monitoring equipment that will be installed for the system will allo w for early
diagnostic of operations issues. This data is all uploaded to ANTHC’s web-based portal in near
real-time, and is regularly reviewed by ARUC and TUS stuff, as well as regional remote
maintenance workers. Automated alerts will be set to send texts and/or emails to staff when
temperatures or flow rates of the system are outside of normal bounds, allowing for quick response
to any potential issues.
7.1.2 Financial Sustainability
Describe the process used (or propose to use) to account for operational and capital costs.
Describe how rates are determined (or will be determined). What process is required to set
rates?
Describe how you ensure that revenue is collected.
Renewable Energy Fund Round 13
Grant Application – Heat Form
AEA 21010 29 7/20/2020
If you will not be selling energy, explain how you will ensure that the completed project will be
financially sustainable for its useful life.
An updated heat sales agreement between AVEC and the City of Shungnak will be developed,
which typically requires payment for the recovered heat that is equivalent to approximately 30% of
what it would have cost to heat the facilities using heating oil. This payment provides financial
incentive for AVEC to ensure that the heat recovery system is operating as designed and to
provide regular maintenance on the system. AVEC currently successfully operates heat recovery
systems that are installed in 30 of their communities, and has extensive experience and resources
to be able to continue successfully doing so.
7.1.2.1 Revenue Sources
Briefly explain what if any effect your project will have on electrical rat es in the proposed benefit
area over the life of the project. If there is expected to be multiple rates for electricity, such as a
separate rate for intermittent heat, explain what the rates will be and how they will be determined
Collect sufficient revenue to cover operational and capital costs
What is the expected cost-based rate (as consistent with RFA requirements)
If you expect to have multiple rate classes, such as excess electricity for heat, explain what
those rates are expected to be and how those rates account for the costs of delivering the
energy (see AEA’s white paper on excess electricity for heat).
Annual customer revenue sufficient to cover costs
Additional incentives (i.e. tax credits)
Additional revenue streams (i.e. green tag sales or other renewable energy subsidies or
programs that might be available)
There is already a heat sales agreement in place between AVEC and the City of Shungnak;
this has proven to be aa successful method of collecting revenue to ensure that the system can
meet its very low operations and maintenance needs, with additional funds helping to support the
financial viability of the utility, which ultimately leads to lower rates for AVEC customers. The
updated heat sales agreement will add to the revenue that AVEC can expect for these purposes.
7.1.2.2 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 (consistent with the
Section 3.16 of the RFA)
Identify the potential power buyer(s)/customer(s) and anticipated power purchase/sales price
range. Indicate the proposed rate of return from the grant-funded project. Include letters of support
or power purchase agreement from identified customers.
Not applicable.
Renewable Energy Fund Round 13
Grant Application – Heat Form
AEA 21010 30 7/20/2020
SECTION 8 – PROJECT READINESS
8.1 Project Preparation
Describe what you have done to prepare for this award and how quickly you intend to proceed with
work once your grant is approved.
Specifically address your progress towards or readiness to begin, at a minimum, the following:
The phase(s) that must be completed prior to beginning the phase(s) proposed in this
application
The phase(s) proposed in this application
Obtaining all necessary permits
Securing land access and use for the project
Procuring all necessary equipment and materials
Refer to the RFA and/or the pre-requisite checklists for the required activities and deliverables for
each project phase. Please describe below and attach any required documentation.
The City of Shungnak has prepared for the award by identifying the project opportunity and
collaborating with ANTHC to develop the project. City administrators identified the facilities near the
powerhouse that would benefit from recovered heat, provided billing data to the energy auditor,
and have worked with contractors and ANTHC staff to ensure all necessary information is available
for project development.
ANTHC has already prepared for this award by:
-Conducting a feasibility study in 2016
-Engaging the Alaska Rural Utility Collaborative team to ensure they have the time and capacity
to take on this project if awarded
-Engaging the ANTHC Tribal Utility Support team to ensure availability and capacity to provide
training and remote monitoring installation.
-Notifying our design department of the project and the grant application; ANTHC also has term
contracts in place with several organizations that could provide design services, including CRW
engineering.
-Building a strong relationship with Shungnak city leadership to ensure engagement throughout
the process
ANTHC’s Division of Environmental Health and Engineering (DEHE) is always prepared to
implement and manage projects effectively through maintaining:
-Both a full service engineering design and construction department
-Construction support staff including purchasing, shipping, and receiving departments
-A full time environmental manager, permit consultant, cultural resources manager, and land
survey team to ensure all necessary permits are quickly obtained
-A full finance team and grants compliance staff to ensure each project is meeting the needs
and deadlines of the funding agencies.
8.2 Demand- or Supply-Side Efficiency Upgrades
If you have invested in energy efficiency projects that will have a positive impact on the proposed
project, and have chosen to not include them in the economic analysis, applicants should provide
as much documentation as possible including:
1.Explain how it will improve the success of the renewable energy project
2.Energy efficiency pre and post audit reports, or other appropriate analysis,
3.Invoices for work completed,
4.Photos of the work performed, and/or
5.Any other available verification such as scopes of work, technical drawings, and payroll for
work completed internally.
The City of Shungnak has had eight level one energy efficiency audits conducted on buildings
in the community by Jim Fowler of Energy Audits of Alaska. These audits were a key source of
information in the design of this proposed heat recovery expansion.
SECTION 9 – LOCAL SUPPORT AND OPPOSITION
Describe local support and opposition, known or anticipated, for the project. Include letters,
resolutions, or other documentation of local support from the community that would benefit from
this project. Provide letters of support, memorandum of understandings, cooperative agreements
between the applicant, the utility, local government and project partners. The documentation of
support must be dated within one year of the RFA date of July 20, 2020. Please note that letters of
support from legislators do not count toward this criterion
The Northwest Arctic Borough, the regional health organization Maniilaq, and the Alaska
Village Electric Cooperative have all provided letters of support for this project. There is strong
regional and local support for this project, in addition to the support the community receives by
being a part of ANTHC’s Alaska Rural Utility Collaborative. The city is taking the lead on the heat
recovery expansion project and works collaboratively with the Native Village of Shungnak.
SECTION 10 – COMPLIANCE WITH OTHER AWARDS
Identify other grants that may have been previously awarded to the Applicant by the Authority for
this or any other project. Describe the degree you have been able to meet the requirements of
previous grants including project deadlines, reporting, and information requests.
ANTHC has provided project management services for many previously-awarded AEA
Renewable Energy Fund grants to rural communities around the state, and has a great deal of
success completing them. The Rural Energy Program team has managed installation of heat
recovery systems for the communities of Emmonak, Russian Mission, and Chevak through the
Renewable Energy Fund program, in addition to many other projects throughout the state.
Currently, ANTHC is managing AEA funding for the Mertarvik -Newtok BFU project, grant
agreement #7210026.
ANTHC has been successful in these projects through the various divisions and controls that it
has in place to successfully manage grant-funded projects. The Consortium is structured in a way
that allows for maximum oversight in project management and fiscal reporting. DEHE leadership
has extensive experience coordinating grant-funded projects in rural Alaska communities, and will
be responsible for managing project tasks to completion, utilizing the various organizational
divisions, controls, personnel, and processes it has established for these functions.
In addition to the staff identified in Section 4, ANTHC’s DEHE has the benefit of drawing from
the expertise of over twenty engineers presently licensed in the State of Alaska across multiple
disciplines, with additional staff actively pursuing licensure, several of whom will likely have
attained licensure by the beginning of the project period. ANTHC’s DEHE also has multiple
Certified Energy Managers (CEM) on staff, with several others working towards that certification.
The Grants Management and Compliance department is staffed to ensure that financial
management and grant reporting are completed accurately and on time for all restricted sources of
31
funding received, which includes funds received through contracting with entities that ANTHC
partners with to complete grant-funded projects.
SECTION 11 – LIST OF SUPPORTING DOCUMENTATION FOR PRIOR PHASES
In the space below, please provide a list of additional documents attached to support completion of
prior phases.
Appendix A
1.Shungnak Heat Recovery Feasibility Study
SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION
In the space below, please provide a list of additional information submitted for consideration.
Appendix B
1.City of Shungnak Resolution
2.ANTHC Letter of Commitment
3.Northwest Arctic Borough Letter of Support
4.Maniilaq Letter of Support
Appendix C
1.Fuel Invoices
Attachment A
1.Evaluation Model REF R13 v2 – Shungnak HR Expansion
Attachment B
Resumes of Key Personnel
1.Christopher Cronick
2.Heather Dongoski
3.Gunner Hodgson
4.Dustin Madden
5.Hansel Mathlaw
6.Brian Menghini
7.Annie Messer
8.Dan Smith
32
Renewable Energy Fund Round 13.
Grant Application -Heat For1n
Community/Grantee Name: (] ?t;,
Regular Election is held:
Title
A11
I authorize the above person(s) to sign Grant Documents:
Term
.1 ,.·'. �·i},· ·• /''
Signature
Must be authorized b the hi hest rankin or anizationlcommu_nit /munici al official
Printed Name Title Term Signature
Mailing Address: /}?Y ..5 9'
Phone
017.
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I I
J ' II
) 'I 1 ,, .!(
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AEA21010 33
Renewable Energy Fund Round 13
Grant Application - Heat For1n . !•••. ..
'\ .-� ., ... · ' ·-
A.Contact information and resumes of Applicant's Project Manager, Proj�ct Accountant(s),
key staff, partners, consultants, and suppliers per application form Section 3.1, 3.4 and
3.6.
Applicants are asked to provide resumes submitted with applications in separate electronic
documents If the indiVidL1als do not want their resumes posted to the project website.
B.Letters or resolutions demonstrating local support per application form Section 9.
C.For projects involving heat: Most recent invoice dernonstrati11g the cost of heating fuel
for the bullding(s), impacted by the project.
D.Governing Body Resolution or other formal action taken by the applicant's governing
body or management per RFA Section 1.4 that;
·, Commits the organization to provide the matching resources for project at the match
amounts indicated in the application.
•Authorites the individual who signs the application has the authority to commit the
organization to the obligations under the grant.
•Provides as point of contact to represent the applicant for purposes of this
application.
•Certifies the applicant is in compliance with applicable federal, state, and local, laws
including existing credit and federal tax oblig�tions.
E.An electronic version of the entire application on CD or other electronic media, per RFASection 1. 7.
F.CERTIFICATION
The undersigned certifies that this application for a renewable energy grant is truthful
and correct, and that the applicant is in compliance with, and will continue to comply
with, all federal and state laws Including existing credit and federal tax obllgatlons and
that they can indeed commit the entity to these obligations.
·=signature
. 'tltl�
· .. Date
AEA21010 34
Alaska Energy Authority – AEA 21010
Renewable Energy Fund Grant Application
Appendix A
35
HEAT RECOVERY FEASIBILITY STUDY
SHUNGNAK, ALASKA
PREPARED BY:
Alaska Native Tribal Health Consortium
Division of Environmental Health and Engineering
4500 Diplomacy Drive, Suite 454, Anchorage AK 99508
Phone (907) 729-3600 / Fax (907) 729-4090
September 16, 2016
36
Table of Contents
1.0 EXECUTIVE SUMMARY .............................................................................................. 1
2.0 INTRODUCTION .......................................................................................................... 1
2.1 Existing Heat recovery System: ................................................................................ 1
2.2 Proposed heat recovery system: .............................................................................. 2
3.0 OVERVIEW .................................................................................................................. 3
4.0 ESTIMATED RECOVERED HEAT UTILIZATION ....................................................... 3
5.0 HEAT RECOVERY SYSTEM DESCRIPTION AND OPERATION: ............................. 4
5.1 Avec Plant Tie-In....................................................................................................... 4
5.2 Arctic Piping (Recovered Heat Loop) ....................................................................... 5
5.3 Community Buildings Tie-In ...................................................................................... 5
5.4 Community Store Tie-In ............................................................................................ 5
5.5 Rights-Of-Way Issues ............................................................................................... 6
5.6 Potential Risks and Unknowns ................................................................................. 6
6.0 ASSUMPTIONS ........................................................................................................... 6
7.0 PRELIMINARY EQUIPMENT SELECTIONS ............................................................... 6
7.1 Heat Exchangers ...................................................................................................... 6
7.2 Arctic Piping .............................................................................................................. 7
7.3 Circulating Pumps ..................................................................................................... 7
7.4 Expansion Tanks ...................................................................................................... 8
7.5 Glycol Makeup .......................................................................................................... 9
7.6 Controls ..................................................................................................................... 9
8.0 CONCLUSIONS AND RECOMMENDATIONS .......................................................... 10
APPENDIX – A: Conceptual Design ..................................................................................... 12
APPENDIX – B: Graphs ....................................................................................................... 18
APPENDIX – C: Calculation ................................................................................................. 21
APPENDIX – D: Cost Estimation .......................................................................................... 27
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1
1.0 EXECUTIVE SUMMARY
The existing Shungnak power plant is planning on installing new CAT® SR4B generator with
CAT 3456 engine with marine manifold to replace their outdated generators. At present
power plant provides recovered heat to water treatment plant (WTP) and City office. Once
new generator is installed there will be excess recovered heat to be utilized. The Clinic,
Village Public Safety Officer (VPSO) Housing, New Cookhouse, Community Store, and
School were evaluated for excess heat recovery potential.
Two options were considered for the analysis. At present due to leaks in buried heat recovery
pipe to City office, City office has not be able to fully benefit from existing heat recovery
system. Total project cost for both option include cost to provide new supply and return pipe
to city office. Old heat recovery line will be abandoned and glycol in old lines will be salvaged.
Option 1 - Supplying excess recovered heat to Clinic, Cookhouse, VPSO housing
Community store, and city office. The total estimated annual heating fuel consumption is
estimated to be approximately 14,618 gallons. Heat recovery system is expected to reduce
the fuel consumed by 14,036 gallons. The expected annual savings is $ 126,323.
The payback is based on a 2015 average fuel price of $9/gallon and an estimated 2016
project cost of $ 1,218,132. Assuming construction of the heat recovery system begins in
2016, the design and construction cost with 2 years of 3% escalation is $ 1,292,316. The
simple payback time is 10.23 years
Option 2 - Supplying excess recovered heat to school and city office. The total estimated
annual heating fuel consumption is estimated to be approximately 26,666 gallons. Heat
recovery is expected to reduce the fuel consumed by 19,518 gallons. The expected annual
savings is $ 70,656.
The payback is based on a 2015 average fuel price of $3.62/gallon and an estimated 2016
project cost of $ 865,046. Assuming construction of the heat recovery system begins in 2016,
the design and construction cost with 2 years of 3% escalation is $ 917,727. The simple
payback time is 12.99 years.
2.0 INTRODUCTION
The National Renewable Energy Laboratory (NREL) has collaborated with the Alaska Native
Tribal Health Consortium (ANTHC) to review the feasibility of providing excess recovered
heat from the existing Shungnak power plant to the existing School, Clinic, Community Store,
VPSO Housing, and new Cookhouse in Shungnak. ANTHC also developed a budgetary
project cost estimate based on Force Account Construction, including Engineering and
Construction Administration.
2.1 Existing Heat recovery System:
Since 2013 Shungnak power plant is providing recovered heat to WTP and City office. WTP is
seeing the fullest benefit of recovered heat as it hardly burn any fuel oil for heating.
Recovered heat covers City office’s 60-80% of space heat demand.
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2
2.2 Proposed heat recovery system:
Alaska Village Electric Cooperative (AVEC) is planning on installing new CAT® SR4B
generator with CAT 3456 engine with marine manifold to replace their outdated generators.
This will be the biggest generator in the power plant. Once the new generator is installed,
there will be excess recovered heat that can be utilized to heat community building and
reduce diesel fuel consumption. The estimated cost of installation of this new generator is
estimated at $429,200 according to AVEC. This cost is not included as part of this feasibility
study.
Two options have been analyzed to utilized excess recovered heat. Heat demand is based on
energy audits conducted by Jim Fowler, Energy Audits of Alaska.
Option 1 – Supply excess heat to Clinic, Community store, VPSO housing, New
Cookhouse.
Existing Clinic currently is hydronically heated with fuel fired boilers. The total heating
demand for clinic is around 200 MBH. Excess recovered heat can cover entire heating
demand of the clinic.
Existing VPSO building is also heated hydronically with fuel fired boiler. The total heating
demand is around 80 MBH. Excess recovered heat will cover entire heat demand of this
building
New Cook house is a community gathering center. This facilities is currently under
construction. It is assumed that this building will be heated hydronically with fuel fired boiler
and estimated heating demand for this building will around 100 MBH.
Any remaining heat will be used by existing Community store. A hydronic unit heater will be
installed in store. This unit heater will be supplementary heat source to currently installed fuel
fired Toyo stove. Store has around 50 MBH heating load
Option 2 – School
Calculated fuel consumption of existing school is approximately 25,852 gal / year and is
hydronically heated with oil fired boilers. Sensible heating from any or all electrical equipment
and lighting fixture is excluded from calculation. A site investigation of the facility has not been
done at this time, but it is anticipated that space can be found for a heat recovery heat
exchanger, associated pumps and controls.
At present due to leaks in buried heat recovery pipe to City office, City office has not be able
to fully benefit from existing heat recovery system. Location of leak is unknown thus digging
out buried pipe to repair will be expensive. Since both option considered to new heat recovery
system will have heating pipe passing nearby City Office, It was concluded that installing new
branch pipe to provide new connection to City office will be cheaper option than repairing the
existing pipes. Total project cost for both option include cost to provide new supply and return
pipe to city office. Old heat recovery line will be abandoned and glycol in old lines will be
salvaged.
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3
3.0 OVERVIEW
The purpose of this study is to provide an estimate of the excess heat that can be recovered
from the AVEC power plant diesel engines and used to offset heating oil consumption at the
nearby community buildings. Useable recovered heat is quantified in gallons of heating fuel
saved using a gross heating value of 134,000 BTU per gallon of #1 arctic diesel fuel and an
overall boiler efficiency of 70% for a net heating value of 107,000 BTU per gallon.
The public buildings eligible for heat recovery are located within 800-feet radius of the AVEC
power plant. This analysis evaluates the potential to provide recovered heat to the nearby
public buildings. The estimated average annual heating fuel consumption for the nearby
public buildings is in range of 14,000-25,000 gallons. Existing roadways were utilized for heat
recovery pipe routing in order to minimize ground disturbance, avoid additional environmental
impacts, utilize existing right of ways.
4.0 ESTIMATED RECOVERED HEAT UTILIZATION
A heat recovery utilization spreadsheet has been developed to estimate the recoverable heat
based on monthly total electric power production, engine heat rates, building heating
demands, heating degree days, passive losses for power plant heat and piping, and arctic
piping losses. Power generation data from AVEC for fiscal year 2015 is used in the
spreadsheet.
At present Shungnak Power plant has 4 generators (John Deer JD 6619, Caterpillar
CAT3406B, Detroit Diesel S60 and Cummins and Cummins CMS K19G2). Generator-1 (JD
6619) and Generator-2(CAT 3406) hardly runs. Generator-4(DD S60) and Generator-5 (CMS
K19G2) are primary generator. Generators 4 and 5 run one at a time, while the other acts as
stand by.
AVEC is working on securing funds to install new CAT® SR4B generator with CAT 3456
engine with marine manifold to replace their outdated generator (JD 6619 and CAT3406B).
Existing heat recovery system supplies heat to WTP and City Office. Once this new generator
is installed there will be excess recovered heat beyond supplying heat to WTP and City office.
Per Mr. Forest, AVEC, this new generator will be primary generator even if it runs at 30-40%
of its peak capacity.
This analysis assumes AVEC will install part or heat recovery heat exchanger and pump on
their side of heat exchanger and provides two flanges to connect to existing heat recovery
system.
The estimated heat rejection rate for the power plant generator and run time was used to
estimate available recovered heat. For this feasibly study Heating degree-days for the nearby
community of Kobuk were utilized for this site. Part of the heat recovery arctic pipe will be
buried and part is assumed to be routed above grade for connection into existing facilities. All
power plant hydronic piping will be insulated with minimum of 2-inches of insulation. Past
experience was used for estimating the heating load for the power plant, which includes the
power house, an insulated storage module, and one living quarter’s module.
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4
The heat recovery calculations spreadsheet uses monthly heating degree-days to distribute
annual fuel consumption by month. The end-user hourly heat load is compared to the hourly
available heat from the power plant, less power plant heating loads and parasitic piping
losses, and the net delivered heat to the end-user is determined.
Following is a summary of annual fuel use and estimated heat utilization in equivalent gallons
of fuel for the water plant:
Facility Estimated
Annual Fuel Use
(Gallons)
Estimated Heat
Delivered W/ Intertie
(Gallons)
Option #1
Clinic 7,339 7,339
Cook house 3,280 3,280
VPSO Housing 2,461 2,461
Community Store 1,538 956
Option #2
School 25,852 19,518
5.0 HEAT RECOVERY SYSTEM DESCRIPTION AND OPERATION:
The heat recovery system captures jacket water heat generated by the AVEC power plant
that is typically rejected to the atmosphere by the radiators. The recovered heat is transferred
via below-grade arctic piping to the end user. The objective is to reduce the consumption of
expensive heating fuel by utilizing available recovered heat.
Although heat recovery is an excellent method of reducing heating fuel costs,
recovered heat is a supplementary heat source and it is imperative that the end-user
facility heating systems are operational at all times.
Hot engine coolant is piped through a plate heat exchanger located at the power plant. Heat is
transferred from the engine coolant to the recovered heat loop without mixing the fluids.
Controls at the power plant are used to prevent subcooling of the generator engines which
would reduce electric power production efficiency. The recovered heat fluid is pumped
through buried insulated pipe to the end-user, and is tied into the end-user heating system
using a plate heat exchanger.
5.1 Avec Plant Tie-In
The AVEC plant cooling system will be separated from the recovered heat system with an
injection pump, heat exchanger and controls designed to maintain minimum generator
operating temperature and provide physical isolation of the two systems. The methodology
will follow the standard approach favored by AVEC.
All heat recovery piping at the AVEC facility will be insulated with a minimum of 2-in insulation
and have an aluminum jacket where exposed to the weather. All valves will be either bronze
41
5
ball valves or lug style butterfly valves with seals compatible with 50/50 glycol/water mixtures
at 200F. Air vents, thermometers, pressure gauges, drain valves, and pressure relief valves
will also be provided.
5.2 Arctic Piping (Recovered Heat Loop)
The proposed arctic piping is based on a manufactured pre-insulated Polypropylene Random
Crystallinity Temperature (PP-RCT) pipe system with minimum of 2-in polyurethane foam
insulation and HDPE outer jacket. The piping will be buried approximately 3 ft deep. Heat
recovery pipe will run from the AVEC plant within existing rights-of-way to the end-user
community facilities. An attached drawing (Appendix-A) identifies proposed routing and burial
method. .
The recovered heat fluid will be a 50/50 Propylene Glycol/Water solution to provide freeze
protection to the piping.
5.3 Community Buildings Tie-In
The typical building tie in will consist of a VFD circulation pump to move heat from the power
plant to the respective buildings, a brazed plate heat exchanger and a separate pump to inject
heat into the building’s hydronic heating system designed to avoid introducing excessive
pressure drop in the building heating system. The maximum anticipated delivered recovered
heat supply temperature is about 180F. When there is insufficient recovered heat to meet the
building heating load, the building heating system (boiler or heater) will fire and add heat. Off
the shelf controls will lock out the recovered heat system when there is insufficient recovered
heat available.
Typical indoor piping will be type L copper tube with solder joints. Isolation valves will be
solder end bronze ball valves or flanged butterfly valves. All piping will be insulated with a
minimum of 2-in insulation with an all-service jacket. Flexibility will be provided where
required for thermal expansion and differential movement. Air vents, thermometers, pressure
gauges, drain valves, and pressure relief valves will also be provided.
Each facility will also receive a BTU meter to provide recovered heat use totalization and
instantaneous use.
5.4 Community Store Tie-In
The Community Store tie in will consist of a unit heater and circulation pump to move heat
from the power plant to the Store. The maximum anticipated delivered recovered heat supply
temperature is about 180F. When there is insufficient recovered heat to meet the building
heating load, the building heating system (toyo stove) will fire and add heat. Off the shelf
controls will lock out the recovered heat system when there is insufficient recovered heat
available.
Typical indoor piping will be type L copper tube with solder joints. Isolation valves will be
solder end bronze ball valves or flanged butterfly valves. All piping will be insulated with a
minimum of 2-inche insulation with an all-service jacket. Flexibility will be provided where
required for thermal expansion and differential movement. Air vents, thermometers, pressure
gauges, drain valves, and pressure relief valves will also be provided.
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6
Each facility will also receive a BTU meter to provide recovered heat use totalization and
instantaneous use.
5.5 Rights-Of-Way Issues
There are no apparent conflicts with rights-of-ways for the arctic piping between the power
plant and the community building selected for this project, as the route is entirely within
existing road rights-of-ways and on city and AVEC property. All the right-of-way issues, if
found, shall be resolved before installation of arctic pipes
A Heat Sales/Right-of-Entry Agreement will be required between AVEC and the end users to
define the parties’ responsibilities, detail the cost of recovered heat, and authorize the
connection to the power plant heat recovery equipment.
5.6 Potential Risks and Unknowns
Existing survey drawing shows buried fuel, water and sewer pipes. Identifying the routing of
these pipes is important before any dirt work is initiated. It is assumed that new generator,
even when running at 30-40% of its peak capacity, will run as primary generator.
6.0 ASSUMPTIONS
This report assumes that space for heat recovery equipment at the power plant will be
available, with necessary controls, pumps and heat exchangers added as part of
modifications to the existing building.
Additional assumptions have been made in the development of this report, including, but not
limited to, the proposed arctic piping route, building heating loads and flow rates and pressure
drops of the power plant heat recovery system. It is anticipated that refinements in arctic pipe
size and routing, pump and heat exchanger sizing, and other design elements will be required
as the project progresses to final design.
Available as-built information of the power plant was obtained from AVEC. Recovered heat
availability is based on the 2015 power plant electrical loads. End-user annual fuel use was
obtained from a variety of sources, including the City, and engineering estimates. Where
possible, reported fuel consumption was used to validate engineering estimates.
7.0 PRELIMINARY EQUIPMENT SELECTIONS
The following initial equipment selections are sized and selected based on preliminary data
and will require minor modifications to reflect final design.
7.1 Heat Exchangers
Based on initial selected flow rates, brazed plate heat exchangers appear to be adequate for
all locations. Initial heat exchanger selections are as follows.
HX-1: (Power Plant). 575 MBH capacity
43
7
Primary: 63 GPM 185F EWT (50% ethylene glycol), 2.0 PSI max WPD
Secondary: 63 GPM 180F LWT (50% propylene glycol) 2.0 PSI max WPD
Option #1:
HX-2: (Clinic). 130 MBH capacity
Primary: 14 GPM 180F EWT (50% ethylene glycol), 2.0 PSI max WPD
Secondary: 14 GPM 175F LWT (50% propylene glycol) 2.0 PSI max WPD
HX-3: (Cookhouse). 70 MBH capacity
Primary: 7 GPM 180F EWT (50% ethylene glycol), 2.0 PSI max WPD
Secondary: 7 GPM 175F LWT (50% propylene glycol) 2.0 PSI max WPD
HX-4: (VPSO Housing). 60 MBH capacity
Primary: 6.6 GPM 180F EWT (50% ethylene glycol), 2.0 PSI max WPD
Secondary: 6.6 GPM 175F LWT (50% propylene glycol) 2.0 PSI max WPD
UH-1: (Community Store). 40 MBH capacity.
Primary: 4.4 GPM 180F EWT (50% propylene glycol), 1.0 PSI max WPD
Secondary: 4.4 GPM 175F LWT (50% propylene glycol) 1.5 PSI max WPD
Option #2:
HX-2: (School). 300 MBH capacity
Primary: 33.33 GPM 180F EWT (50% ethylene glycol), 2.0 PSI max WPD
Secondary: 33.33 GPM 175F LWT (50% propylene glycol) 2.0 PSI max WPD
7.2 Arctic Piping
The round trip length of heat recovery loop piping between the power plant and community
buildings is approximately 1800 feet for both options. The pipe consists of a 2-in PP-RCT
carrier pipe with minimum of 2-in polyurethane foam insulation and an HDPE outer jacket.
The specified product is durable enough for direct bury. The piping and excavated soil will be
will be wrapped in geotextile fabric to hold the pipe in the ground in the event of flooding.
7.3 Circulating Pumps
Option #1:
HP-1A: Clinic (power plant side of HX-2)
Flow = 14 GPM, Head = 20 ft (approximate)
Initial Selection: Grundfos Magna series with integrated VFD and 4-20 mA controller.
Approximately 600W
44
8
HP-1B: Clinic (Clinic side of HX-2)
Flow = 14 GPM, Head = 10 ft (approximate)
Initial Selection: Grundfos Magna series with integrated VFD and 4-20 mA controller.
Approximately 600W
HP-2A: Cookhouse (power plant side of HX-3)
Flow = 7 GPM, Head = 15 ft (approximate)
Initial Selection: Grundfos UPS 26-99F. Approximately 400W
HP-2B: Cookhouse (Cook house side of HX-3)
Flow = 7 GPM, Head = 10 ft (approximate)
Initial Selection: Grundfos UPS 26-99F. Approximately 400W
HP-3A: VPSO Housing (power plant Side of HX-4)
Flow = 6.6 GPM, Head = 15 ft (approximate)
Initial Selection: Grundfos UPS 26-99F. Approximately 400W
HP-3B: VPSO Housing (VPSO side of HX-4)
Flow = 6.6 GPM, Head = 10 ft (approximate)
Initial Selection: Grundfos UPS 26-99F. Approximately 400W
HP-4: Community Store
Flow = 4.4 GPM, Head = 10 ft (approximate)
Initial Selection: Grundfos UPS 26-99F. Approximately 400W
Option #2:
HP-1A: School (power plant side of HX-2)
Flow = 33.33 GPM, Head = 55 ft (approximate)
Initial Selection: Grundfos Magna series with integrated VFD and 4-20 mA controller.
Approximately 600W
HP-1B: Clinic (Clinic side of HX-2)
Flow = 33.33 GPM, Head = 10 ft (approximate)
Initial Selection: Grundfos Magna series with integrated VFD and 4-20 mA controller.
Approximately 600W
7.4 Expansion Tanks
Total heat recovery loop volume is approximately 350 gallons for both options. Pressure relief
at the power plant heat exchanger will be 45 PSIG and the maximum normal operating
pressure will be 30 PSIG.
Option #1
ET-1(Clinic): System requirements: 15 gallon tank and 7 gallon acceptance.
45
9
ET-1(Cookhouse): System requirements: 15 gallon tank and 7 gallon acceptance.
ET-1(VPSO Housing): System requirements: 4 gallon tank and 2 gallon acceptance.
ET-1(Community Store): System requirements: 4 gallon tank and 2 gallon acceptance.
Option #2
ET-1(School): System requirements: 63 gallon tank and 25 gallon acceptance.
7.5 Glycol Makeup
A glycol make-up system at the WTP will be provided to accommodate filling the system and
adding additional glycol.
Option #1
GMT-1(Clinic): Axiom MF300 mini feeder, 17 Gal.
GMT -1(Cookhouse): Axiom MF300 mini feeder, 17 Gal.
GMT -1(VPSO Housing): Axiom MF200 mini feeder, 6 Gal.
GMT -1(Community Store): Axiom MF200 mini feeder, 6 Gal.
Option #2
GMT-1(School): Axiom SF100, 55 Gal.
7.6 Controls
Heat recovery system in the end user facilities will use an off the shelf differential temperature
controller to start/stop heat injection pump. Additional controller will look at the differential
temperature across the heat exchanger and modulate the heat recovery circulation pump to
minimize energy consumption. Controls will provide load shedding, freeze protection, and
prevent back feeding of boiler heat into heat recovery system. In addition, A BTU meter will be
provided at each facility using recovered, displaying instantaneous temperatures and heat
transfer, as well as totalizing BTUs used.
Differential Controllers: Honeywell 755 differential temperature control and integrated
temperature controller built into variable speed pump.
BTU Meters:
46
10
Option #1
BTU-1(Clinic): KEP BTU meter with 1-1/2” magnetic flow meter and matching temperature
elements.
BTU-1(Cookhouse): KEP BTU meter with 1-1/2” magnetic flow meter and matching
temperature elements.
BTU-1(VPSO): KEP BTU meter with 1” magnetic flow meter and matching temperature
elements.
BTU-1(Community Store): KEP BTU meter with 1” magnetic flow meter and matching
temperature elements.
Option #2
BTU-1(School): KEP BTU meter with 2” magnetic flow meter and matching temperature
elements.
8.0 CONCLUSIONS AND RECOMMENDATIONS
Estimated construction costs were determined based on prior recent heat recovery project
experience, and include materials, equipment, freight, labor, design, construction
management, and startup and testing. All work at the power plant and selected communities
buildings, along with design and construction management/administration for the complete
project, is included in the Base Project cost. (Refer to attached cost estimate).
At present due to leaks in buried heat recovery pipe to City office, City office has not be able
to fully benefit from existing heat recovery system. Total project cost for both option include
cost to provide new supply and return pipe to city office. Old heat recovery line will be
abandoned and glycol in old lines will be salvaged.
Option 1 - Supplying excess recovered heat to Clinic, Cookhouse, VPSO housing
Community store, and city office. The total estimated annual heating fuel consumption is
estimated to be approximately 14,618 gallons. Heat recovery system is expected to reduce
the fuel consumed by 14,036 gallons. The expected annual savings is $ 126,323.
The payback is based on a 2015 average fuel price of $9/gallon and an estimated 2016
project cost of $ 1,218,132. Assuming construction of the heat recovery system begins in
2016, the design and construction cost with 2 years of 3% escalation is $ 1,292,316. The
simple payback time is 10.23 years
Option 2 - Supplying excess recovered heat to school and city office. The total estimated
annual heating fuel consumption is estimated to be approximately 26,666 gallons. Heat
recovery is expected to reduce the fuel consumed by 19,518 gallons. The expected annual
savings is $ 70,656.
47
11
The payback is based on a 2015 average fuel price of $3.62/gallon and an estimated 2016
project cost of $ 865,046. Assuming construction of the heat recovery system begins in 2016,
the design and construction cost with 2 years of 3% escalation is $ 917,727. The simple
payback time is 12.99 years.
48
APPENDIX – A: Conceptual Design
49
RUSSIA
ANCHORAGE
NOME
KOTZEBUE
BARROW
JUNEAU
FAIRBANKS
CANADA
KODIAK
BETHEL
UNALASKA
SHUNGNAK
SHUNGNAK, ALASKA
HEAT RECOVERY FEASIBILITY STUDY
SHEET LIST TABLE
SHEET NUMBER SHEET TITLE
4500 Diplomacy Drive
Anchorage, Alaska 99508
(907) 729-3600
Alaska Native
Tribal Health Consortium
Division of Environmental
Health and Engineering
SHUNGNAK, AK
HEAT RECOVERY PROJECT
COVER SHEET
50
SITE PLAN - OPTION #1A1NTS
4500 Diplomacy Drive
Anchorage, Alaska 99508
(907) 729-3600
Alaska Native
Tribal Health Consortium
Division of Environmental
Health and Engineering
SHUNGNAK, AK
HEAT RECOVERY PROJECT
SITE PLAN
51
SITE PLAN - OPTION #2A1NTS
4500 Diplomacy Drive
Anchorage, Alaska 99508
(907) 729-3600
Alaska Native
Tribal Health Consortium
Division of Environmental
Health and Engineering
SHUNGNAK, AK
HEAT RECOVERY PROJECT
SITE PLAN
52
4500 Diplomacy Drive
Anchorage, Alaska 99508
(907) 729-3600
Alaska Native
Tribal Health Consortium
Division of Environmental
Health and Engineering
SHUNGNAK, AK
HEAT RECOVERY PROJECT
SCHEMATIC DIAGRAM - I HEAT RECOVERY PIPING SCHEMATIC - IA1NTSPOWER PLANT'S FUTURE GENERATOR MODULE53
4500 Diplomacy Drive
Anchorage, Alaska 99508
(907) 729-3600
Alaska Native
Tribal Health Consortium
Division of Environmental
Health and Engineering
SHUNGNAK, AK
HEAT RECOVERY PROJECT
SCHEMATIC DIAGRAM - II
HEAT RECOVERY PIPING SCHEMATIC - IIA1NTS
COMMUNITY STORE
HYDRONIC PIPING SCHEMATIC FOR CITY OFFICE, COOK HOUSE,
VPSO HOUSING AND CLINIC (TYP)
54
4500 Diplomacy Drive
Anchorage, Alaska 99508
(907) 729-3600
Alaska Native
Tribal Health Consortium
Division of Environmental
Health and Engineering
SHUNGNAK, AK
HEAT RECOVERY PROJECT
DETAIL DRAWING
55USER: PKC PRODUCT: AutoCAD Plant JD 2016 -Encjlsh FILE: z:\Sec::ure\Prajed\energy projed\Shungnak\shg-018-fea\Civii\SHG-C-STSITE.DWG LAYOUT' DETAIL ., ;u z --< 8 c > r.1 <D ~ N ':, 01 ~ "' "' -I 01 !Ol 01 • s• LEVELING COURSE CO~PACTED ONLY IN ROADWAYS CO~PACTED BACKFILL EXISTING GROUND HAZARD TAPE 2• FOAM BOARD INSULATION INSTALL AWG 12 SOLID ......_.,._.,__COPPER TRACER WIRE 6' ~N ' / / ./ ~/"'"'(/-WITH YELLOW r .r'lAri I ,<',.f"~ ><~~~POLYCOATING. TRACER :V(~ /<WIRE ~UST BE 600V )/~"' RATED AND UL Ll STED «~ FOR DIRECT BURIAL. Y0 ~""' ~~ 2• PRE-INSULATED ~ PP-RCT PIPE W/ HOPE ~ OUTER JACKET ~'\ ~ ~/( ~ "' SLOPE AS NEAR VERTICAL ~ "~'\ AS POSSIBLE IN FROZEN ~;; " o " d" d " cl ~ 7~ / "~ <: b lz < i?'b "<:_\, , o , ~~~ GROUND v " ® TYPICAL BURIED ARCTIC PIPE INSTALLATION GEOTEXTILE PIPE ANCHOR. INSTALL GEOTEXTILE TO MINIMIZE VOID SIZE. (PROPEX 315 ST)
APPENDIX – B: Graphs
56
-
100
200
300
400
500
600
Jan Feb March April May June July Aug Sept Oct Nov DecMBTU/HRMONTH
Shungnak Recovered Heat Utilization- Option #1
Community Store heat demand (MBH)
VPSO Housing heat demand (MBH)
Cook House Heat demand (MBH)
Clinic Heat demand (MBH)
Total City Office Heat Demand (MBH)
Total WTP Heat Demand (MBH)
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Jan Feb March April May June July Aug Sept Oct Nov DecGAL
MONTH
Shungnak Recovered Heat Utilization- Option #1
Combined Community buildings Avoided fuel (Gal)Total Available Recovered Heat Benefit after supplying WTP and City Office (Gal)
57
-
100
200
300
400
500
600
700
800
Jan Feb March April May June July Aug Sept Oct Nov DecMBTU/HRMONTH
Shungnak Recovered Heat Utilization - Option #2
School Heat demand (MBH)
Total City Office Heat Demand (MBH)
Total WTP Heat Demand (MBH)
Estimated Available Heat for Recovery after transmission losses (MBH)
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Jan Feb March April May June July Aug Sept Oct Nov DecGAL
MONTH
Shungnak Recovered Heat Utilization - Option #2
School Avoided fuel (Gal)Total Available Recovered Heat Benefit after supplying WTP and City Office (Gal)
58
APPENDIX – C: Calculation
59
ANTHC DEHEDivision of Environmental Health & EngineeringAlaska Native Tribal Health Consortium4500 Ambassador dr, Ste 454Project Name:Shungnak Heat Recovery ProjectANCHORAGE, AK 99503Project Number:TBD(907) 729-4083Engineer:PKCChecked:________FAX (907) 729-3729Revision Date:e-mail: pkc@anthc.orgPrint:File: Z:\Secure\Project\Energy Project\Shungnak\[Copy of Shungnak Heat Recovery Calcs (Dixon Edits).xlsx]WHR CalcFind:Feasibility of Heat Recovery from Shungnak's AVEC's Power plant to existing Utility BuildingGiven:Monthly KWH produced by existing Shungnak generator plant in 2015Heating Degree Days for Kobuk is used for this calculationCity office/post office heating load150,000BTU/Hr size of the boiler installed in 2011-12, this building has 100MBH heat recovery heat exchanger.80,000BTU/Hr This heat exchanger was down sized in 2011-12. Original design call for 160MBH 30,000BTU/Hr ( source AN-02-Q78)80,000BTU/Hr ( source AN-02-Q78)115,000BTU/Hr ( source AN-02-Q78)200,000BTU/Hr ( Source - Mr. Jim Fowler, Energy Audit of Alaska)80,000BTU/Hr ( Source - Mr. Jim Fowler, Energy Audit of Alaska)100,000BTU/Hr ( Source - Mr. Jim Fowler, Energy Audit of Alaska)50,000BTU/Hr ( Source - Mr. Jim Fowler, Energy Audit of Alaska)747,706BTU/Hr ( Source - Mr. Jim Fowler, Energy Audit of Alaska)OPTION #2 - Supply suppliment heat to SchoolThis analysis is based on power production rate of 2015 but with Genset 6 (with CAT 3456 engine) that will be installed in near futureWhen Genset 6 is running , Generator 4 and 5 will be backup generator. Generator 1 and 2 are old and shut down. Only used to exercise the generatorPer Forest Button, Manager, Project Development & Key Accounts , AVEC once genset 6 is installed, only this generator will run all the time even if it runs at 30-40 % load capacityAssumptions:Design Air Temperature:-50Deg FDesign Water Temperature40Deg FDesign Glycol Heat Trace Temperature75Deg FWTP buidling Space temperature65Deg FHeat Recovery Operating Temperature180Deg FObserved Sewer Temperature40Deg F Community Facility Fuel Price $9.00 (START Report, Fowler)Occupied office room temperature70Deg F School Fuel Price 3.62 (START Report, Fowler) BTU to radiators / KW Power Generated 1394(BTU/Hr)/KW Estimated Boiler AFUE:70%1400(BTU/Hr)/KW Community Estimated Fuel Price:$10.50per gal ( fuel price 2015)1400(BTU/Hr)/KW AVEC Estimated Fuel Price$5.60per gal (2015 PCE report)1400(BTU/Hr)/KW AVEC Heat Sales Agreement:30%Avoided fuel cost at AVEC's Price2984(BTU/Hr)/KW AVEC Heat Sales Agreement for school:50%Avoided fuel cost at AVEC's PriceAbove Ground Heat Recovery System in Arctic Pipe with atleast 10" of snow cover Frozen Soil Conductivity0.12 (Between 0.05 & 0.15 BTUH/Ft)Electricity cost0.76$/kW-HrCalculations:WTP Building Heat Loss:City Office / Post Office Heat Loss:Building design heating loss:80,000 BTU/HBuilding design heating loss:150,000 BTU/HHeat loss / degree of OSA temp695.7 BTH/H* FHeat loss / degree of OSA temp1,250.0 BTH/H* FSensible heating from any or all electrical and electronic equipment as well as lighting fixture is excluded from calculation.Water storage tank heating load (HE-2)water treatment plant space heating load Water distribution loop heating load ( HE-3, HE-4, and HE-5)08-Aug-1619-Sep-16Raw water heat add (HE-1)Clinic heating demandVPSO housing heating demandProposed new Cook house heating demandGrossary storeSchool Space heating demand OPTION #1 - Supply suppliment heat to Clinic, Cook house and VPSO HoGenerator 1: Recoverable Heat per KW(JD 6619AF, 202kW )Generator 2: Recoverable Heat per KW(CAT 3406B, 335 KW)Generator 4: Recoverable Heat per KW(DD S60K4c 1800, 324KW)Generator 5: Recoverable Heat per KW(CMS K19G2 1800, 397KW)Generator 6: Recoverable Heat per KW(CAT 3456, 505 KW)60
ANTHC DEHEDivision of Environmental Health & EngineeringAlaska Native Tribal Health Consortium4500 Ambassador dr, Ste 454Project Name:Shungnak Heat Recovery ProjectANCHORAGE, AK 99503Project Number:TBD(907) 729-4083Engineer:PKCChecked:________FAX (907) 729-3729Revision Date:e-mail: pkc@anthc.orgPrint:File: Z:\Secure\Project\Energy Project\Shungnak\[Copy of Shungnak Heat Recovery Calcs (Dixon Edits).xlsx]WHR Calc08-Aug-1619-Sep-16Calculations (Continued)Parasitic Generator Cooling System LossesGenerator Module Heat LoadsDesign Air Temperature:-50Deg FAMOT valve leak Rate (average)0.5GPM Power plant space heating ( 20 MBH per module)60000BTU/HrHot CoolantTemperature180Deg F power plant engine heat(15 MBH per Enginer)45000BTU/HrDesign Heat Loss:51750BTU/Hr Storage modules Heat Loss BTU/HrHeat loss / Degree of OSA temp:225.0BTU/HrTotal105000BTU/HrStorage Tank Heat Loss: Treated water onlyHeat loss / degree of OSA temp:808BTU/Hr* deg FDesign heating loss:30,000 BTU/HHeat loss / degree of OSA temp333.3 BTH/H* Deg FWasheteria Washer Load:Dryer plenum Load:Design heating loss:- MBH/Month design heating loss:- MBH/MonthDryer Plenum Usage ( only when dryer is on)100%Heat Loss / degree of OSA temp:0BTU/H* Deg FWasheteria Dryer Load:water distributing loop heating loadDesign heating loss:- MBH/Month Building design heating loss:115,000 BTU/HHeat loss / degree of OSA temp1,277.8 BTH/H* Deg FAbove Ground Heat Recovery Pipe Heat Loss:Raw water Heating LoadDesign heating loss:80,000 BTU/HDesign Heat Recovery loop Temperature180Degrees F Heat loss / degree of OSA temp888.9 BTH/H* Deg FDesign Air Temperature:-50Degrees FInsulation:3Inch foam ins.Buried Heat Recovery Pipe Heat Loss: power plant Pipe:2.375Pipe OD (Inches) Design Air Temperature-50Degrees FInsulation K value0.2BTU x in / (ft^2 x hr x Deg F) Design Ground Surface Temperature-10Degrees FR value = 12.035 Ft x hr x Deg F Insulation:3Inch foam ins.Length of Above ground Pipe0Ft Carrier Pipe:2.5Pipe OD (Inches)Design Heat Loss:- BTU/hrInsulation K value0.017BTUH / (ft x Deg F)#DIV/0!BTUH/ftGround K value0.12BTUH / (ft x Deg F)Heat Loss / Degree OSA temp0.0Pipe R value =11Ft x hr x Deg F Depth of Bury =2.0feetBuried Heat Recovery Pipe Heat Loss: Power plant to WTPSoil R value = 3Ft x hr x Deg F Design Air Temperature-50Degrees FBuried Pipe600FtDesign Ground Surface Temperature-10Degrees FDesign Heat Loss:409BTU/hrInsulation:3Inch foam ins.Heat Loss / Foot1BTU/hrCarrier Pipe:3Pipe OD (Inches)Heat Loss / Degree OSA temp8BTU/Hr* deg FInsulation K value0.017BTUH / (ft x Deg F)( Note : this sytem has two 2.5" pex pipe in arctic pipe. surface area of two 2.5" = one 3.5" pex pipe) Ground K value0.12BTUH / (ft x Deg F)Pipe R value =10Ft x hr x Deg F Depth of Bury =2.0feetSoil R value = 3Ft x hr x Deg F Buried Pipe150FtBuried Heat Recovery Pipe Heat Loss: power plant to City officeDesign Heat Loss:2125BTU/hrDesign Air Temperature-50Degrees FHeat Loss / Foot14BTU/hrDesign Ground Surface Temperature-10Degrees FHeat Loss / Degree OSA temp9BTU/Hr* deg FInsulation:3Inch foam ins.( Note : this sytem has two 2" pex pipe in arctic pipe. surface area of two 2" = one 3" pex pipe) Carrier Pipe:2Pipe OD (Inches)Insulation K value0.017BTUH / (ft x Deg F)Heat TapeGround K value0.12BTUH / (ft x Deg F)Electric heat demand0.0KWPipe R value =13Ft x hr x Deg F kwh/month0.0kW-HrDepth of Bury =2.0feetSoil R value = 3Ft x hr x Deg F Heat tape Buried Pipe300FtHeat tape amperageampDesign Heat Loss:3504BTU/hrVoltage240VHeat Loss / Foot12BTU/hrkwh/month0.0kW-Hr/monthHeat Loss / Degree OSA temp15BTU/Hr* deg F( Note : this sytem has two 1.5" pex pipe in arctic pipe. surface area of two 1.5" = one 2" pex pipe) 61
ANTHC DEHEDivision of Environmental Health & EngineeringAlaska Native Tribal Health Consortium4500 Ambassador dr, Ste 454Project Name:Shungnak Heat Recovery ProjectANCHORAGE, AK 99503Project Number:TBD(907) 729-4083Engineer:PKCChecked:________FAX (907) 729-3729Revision Date:e-mail: pkc@anthc.orgPrint:File: Z:\Secure\Project\Energy Project\Shungnak\[Copy of Shungnak Heat Recovery Calcs (Dixon Edits).xlsx]WHR Calc08-Aug-1619-Sep-16Calculations (Continued)VPSO Building Heat demand:School Building Heat demand:Building design heating loss:80,000 BTU/H Building design heating loss:747,706 BTU/HHeat loss / degree of OSA temp666.7 BTH/H* F Heat loss / degree of OSA temp6,230.9 BTH/H* FClinic Heat Demand:Building design heating loss:200,000 BTU/HHeat loss / degree of OSA temp1,666.7 BTH/H* FCook house Building Heat demand:Building design heating loss:100,000 BTU/HHeat loss / degree of OSA temp833.3 BTH/H* FCommunity store Heat demand:Building design heating loss:50,000 BTU/HHeat loss / degree of OSA temp416.7 BTH/H* FBuried Heat Recovery Pipe Heat Loss: power plant to VPSO,cookhouse, clinic and city office Buried Heat Recovery Pipe Heat Loss: power plant to SchoolDesign Air Temperature-50Degrees F Design Air Temperature-50Degrees FDesign Ground Surface Temperature-10Degrees F Design Ground Surface Temperature-10Degrees FInsulation:3Inch foam ins. Insulation:3Inch foam ins.Carrier Pipe:3Pipe OD (Inches) Carrier Pipe:3Pipe OD (Inches)Insulation K value0.017BTUH / (ft x Deg F) Insulation K value0.017BTUH / (ft x Deg F)Ground K value0.12BTUH / (ft x Deg F) Ground K value0.12BTUH / (ft x Deg F)Pipe R value =10Ft x hr x Deg F Pipe R value =10Ft x hr x Deg F Depth of Bury =3.0feet Depth of Bury =3.0feetSoil R value = 4Ft x hr x Deg F Soil R value = 4Ft x hr x Deg F Buried Pipe900Ft Buried Pipe900FtDesign Heat Loss:12251BTU/hr Design Heat Loss:12251BTU/hrHeat Loss / Foot14BTU/hrHeat Loss / Foot14BTU/hrHeat Loss / Degree OSA temp53BTU/Hr* deg FHeat Loss / Degree OSA temp53BTU/Hr* deg F( Note : this sytem has two 2" preinsulated ( e.g. rhinoflex) pex pipe ( Note : this sytem has two 1.5" pex pipe in arctic pipe. surface area of two 1.5" = one 2" pex pipe) Month KWH / Month Days / Month Avg KWHtg Degree Days / Month (40F)Htg Degree Days / Month (65F)Htg Degree Days / Month (70F)Htg Degree Days / Month (180F)% run Engine 4% run Engine 5% run Engine 6Available heat (MBH)Parasitic Cooling System Losses (MBH)Maximum Available heat (MBH)Jan163406312201,495 2,270 2,425 5,835 0%0% 100%65742 615Feb143963292071,390 2,115 2,260 5,450 0%0% 100%61942 576March161106302241,254 2,004 2,154 5,454 0%0% 100%66941 628April14135230196718 1,468 1,618 4,918 0%0% 100%58737 550May1156423115524 799 954 4,364 0%0% 100%46532 433June9844330137- 334 484 3,784 0%0% 100%40928 381July9403831126- 240 395 3,805 0%0% 100%37828 351Aug9050731122- 355 510 3,920 0%0%100%36428 335Sept12129630168- 684 834 4,134 0%0% 100%50431 473Oct13329131179625 1,400 1,555 4,965 0%0% 100%53636 500Nov154269302141,081 1,831 1,981 5,281 0%0% 100%64140 601Dec161623312171,505 2,280 2,435 5,845 0%0% 100%65042 60715,780 AVEC Available Recovered Heat EstimateOption #1 - VPSO Housing,Clinic, New Cookhouse, Community StoreOption #2 - School only62
ANTHC DEHEDivision of Environmental Health & EngineeringAlaska Native Tribal Health Consortium4500 Ambassador dr, Ste 454Project Name:Shungnak Heat Recovery ProjectANCHORAGE, AK 99503Project Number:TBD(907) 729-4083Engineer:PKCChecked:________FAX (907) 729-3729Revision Date:e-mail: pkc@anthc.orgPrint:File: Z:\Secure\Project\Energy Project\Shungnak\[Copy of Shungnak Heat Recovery Calcs (Dixon Edits).xlsx]WHR Calc08-Aug-1619-Sep-16Calculations (Continued)City Office DemandMonth Building Heat Loss (MBH)WST Heat Loss (MBH)Raw water Heating load ( MBH)water distributing loop heating load (MBH)Total WTP Heat Demand (MBH)Total City Office Heat Demand (MBH)Jan51 16 43 62 172 1360.3398 776Feb51 16 43 61 171 1265.5897 723March46 14 37 53 151 1158.8390 689April34 8 21 31 94 720.5767 517May00 1 1 2 15.3538 305June0- - - - 0.0020 155July0- - - - 0.00- 0Aug0- - - - 0.0021 163Sept0- - - - 0.0035 267Oct317 18 26 82 648.9863 497Nov4212 32 46 133 1017.3783 634Dec5116 43 62 173 1368.5198 7797555.525504Based on WTP operator, WTP hardly uses any fuel after installation of exsiting heat recovery systemCity Office also hardly uses any fuelMonthAVEC Facility Heating load (MBH)Burried Pipe Loss Power plant (PP) (MBH)Buried Pipe Loss PP to WTP (MBH)Buried Pipe Loss PP to City office (MBH)Sum Transmission Losses (MBH)MonthEstimated Available Heat for Recovery after transmission losses (MBH)Total WTP Heat Demand (MBH)Total City Office Heat Demand (MBH)Total Available Recovered Heat Benefit after supplying WTP and City Office (MBH) Total Available Recovered Heat Benefit after supplying WTP and City Office (Gal) Jan59 2 2 3 65 Jan549 17297.82802222Feb59 2 2 3 65 Feb511.46 17197.42431807March54 1 2 3 60 March569 15189.83282517April40 1 2 2 45 April506 9467.43442642May21 1 1 2 25 May408 238.53672915June- 1 1 2 4 June377 020.23562735July- 1 1 2 4 July346 00.03462748Aug- 1 1 2 4 Aug331 020.63112465Sept- 1 1 2 5 Sept468 034.84343329Oct36 1 1 2 42 Oct458 8262.73142488Nov49 1 2 3 55 Nov546 13382.53312543Dec59 2 2 3 66 Dec542 17398.22712151Recovered Heat Transmission Losses and avec space heat demandAvailable Recovered Heat WTP Heating Demand63
ANTHC DEHEDivision of Environmental Health & EngineeringAlaska Native Tribal Health Consortium4500 Ambassador dr, Ste 454Project Name:Shungnak Heat Recovery ProjectANCHORAGE, AK 99503Project Number:TBD(907) 729-4083Engineer:PKCChecked:________FAX (907) 729-3729Revision Date:e-mail: pkc@anthc.orgPrint:File: Z:\Secure\Project\Energy Project\Shungnak\[Copy of Shungnak Heat Recovery Calcs (Dixon Edits).xlsx]WHR Calc08-Aug-1619-Sep-16Calculations (Continued)Option #2MonthClinic Heat demand (MBH)Cook House Heat demand (MBH)VPSO Housing heat demand (MBH) Community Store heat demand (MBH) Total Heat Demand (MBH)Total Heat Demand (Gal)Burried Pipe loss (MHB)School Heat demand (MBH)Total Heat Demand (Gal)Burried Pipe loss for School (MHB)Jan130 65 52 33280 222310 487 386610 Feb130 65 52 32279 207210 486 360310 March120 60 48 30257 197510 447 343410 April90 45 36 22193 14839 336 25809 May51 26 0 077 6107 192 15217 June27 0 0 027 2067 000School closed for summerJuly00 0 0007 000School closed for summerAug27 0 0 027 2177 103 8137 Sept46 0 0 046 3567 173 13307 Oct8442332118014269 31324799 Nov11055442823718169 41131589 Dec131655233281223310 489388210 1461810126666Based on WTP operator, WTP hardly uses any fuel after installation of exsiting heat recovery systemCity Office also hardly uses any fuelTotal Community building heat Demand (MBH)Total Recover Heat Available after losses (MBH)Combined Community buildings Avoided fuel (Gal)Avoided Fuel($)Cost of Heat Recovery ($)Net Savings to Community ($)Total School heat Demand (MBH)Total Recover Heat Available after losses (MBH)School Avoided fuel (Gal)Avoided Fuel($)Cost of Heat Recovery ($)Net Savings to Community ($)Jan2802702,14219,280 3,599$ 15,681.36$ Jan487270 2,142 7,7555,998$ 1,756.66$ Feb2792331,73215,591 2,910$ 12,680.83$ Feb486233 1,732 6,2714,851$ 1,420.53$ March2573181,97517,774 3,318$ 14,456.14$ March447318 2,442 8,8416,839$ 2,002.74$ April1933361,48313,351 2,492$ 10,858.88$ April336336 2,575 9,3237,211$ 2,111.87$ May773606105,492 1,025$ 4,466.92$ May192360 1,5215,5064,259$ 1,247.15$ June273502061,858347$ 1,510.82$ June035600-$ -$ July034000-$ -$ July034600-$ -$ Aug273042171,957 365$ 1,591.98$ Aug103304813 2,9432,277$ 666.72$ Sept464263563,201 597$ 2,603.36$ Sept173426 1,330 4,8133,723$ 1,090.28$ Oct1803051,42612,831 2,395$ 10,436.07$ Oct313305 2,420 8,7626,777$ 1,984.74$ Nov2373221,81616,346 3,051$ 13,295.09$ Nov411322 2,471 8,9446,918$ 2,025.90$ Dec2812612,07118,640 3,480$ 15,160.90$ Dec489261 2,071 7,4985,799$ 1,698.35$ 14,036126,323$ 23,580$ 102,742$ 19,518 70,656$ 54,651$ 16,005$ Estimated saving (Gal, $) - Option #1Estimated saving (Gal, $) - Option #2 Option #164
APPENDIX – D: Cost Estimation
65
Shungnak Total Project Estimate - Option #1 1,292,316$
# of Employees Hours/Quantity
Hourly Rate/Unit
Rate Total Cost
Design Performed by Qualified Contractor 99,970.0$
Mechanical Engineer 1 180 140$ 25,200.0$
Civil Engineer 1 120 120$ 14,400.0$
Electrical Engineer 1 80 130$ 10,400.0$
Survey 2 60 110$ 13,200.0$
Autocad support 2 75 110$ 16,500.0$
Travel 5 1 1,250$ 6,250.0$
Cost Estimator 1 40 120$ 4,800.0$
Design Review 4 4 120$ 1,920.0$
Environmental 1 30 110$ 3,300.0$
Project Management 1 40 100$ 4,000.0$
Construction 959,275$
Materials 406,700$
Buried Piping 135,780$
Pre-Insulated 2" PPR-CT Arctic Pipe 1800 60$ 108,000$
Fittings/other 90 17$ 1,530$
Geotextile 900 5$ 4,500$
Clamps/Insulation/Other 90 75$ 6,750$
Glycol 6 1,000$ 6,000$
Insulation 900 10$ 9,000$
Above Ground Piping 13,920$
Pre-Insulated 2" PPR-CT Arctic Pipe 200 60$ 12,000$
Fittings/other 10 17$ 170$
Geotextile 0 5$ -$
Clamps/Insulation/Other 10 75$ 750$
Glycol 1 1,000$ 1,000$
VPSO House Connection 28,500$
Pipe and Fittings 1 10,000$ 10,000$
Heat Exchanger 1 4,000$ 4,000$
Controls 1 7,500$ 7,500$
Insulation 1 1,000$ 1,000$
Expansion Tank 1 1,000$ 1,000$
Pump 2 2,500$ 5,000$
Clinic Connection 32,500$
Pipe and Fittings 1 10,000$ 10,000$
Heat Exchanger 1 6,000$ 6,000$
Controls 1 7,500$ 7,500$
Insulation 1 3,000$ 3,000$
Expansion Tank 1 1,000$ 1,000$
Pump 2 2,500$ 5,000$
66
City Office Connection 10,500$
Pipe and Fittings 1 5,000$ 5,000$
Heat Exchanger 1 -$ -$
Controls 1 -$ -$
Insulation 1 500$ 500$
Expansion Tank 1 -$ -$
Pump 2 2,500$ 5,000$
Cook House Connection 32,500$
Pipe and Fittings 1 10,000$ 10,000$
Heat Exchanger 1 6,000$ 6,000$
Controls 1 7,500$ 7,500$
Insulation 1 3,000$ 3,000$
Expansion Tank 1 1,000$ 1,000$
Pump 2 2,500$ 5,000$
Store Connection 21,000$
Pipe and Fittings 1 5,000$ 5,000$
unit heater 1 4,000$ 4,000$
Controls 1 5,000$ 5,000$
Insulation 1 1,000$ 1,000$
Expansion Tank 1 1,000$ 1,000$
Pump 2 2,500$ 5,000$
Power Plant Connection 53,000$
Pipe and Fittings 1 20,000$ 20,000$
Heat Exchanger 1 10,000$ 10,000$
Controls and thermal management panel 1 20,000$ 20,000$
Insulation 1 3,000$ 3,000$
Expansion Tank 0 1,000$ -$
Pump 0 2,500$ -$
BTU Meter Install 46,000$
BTU Meter 5 2,000$ 10,000$
Flow Meters 6 3,500$ 21,000$
AVEC Link 5 3,000$ 15,000$
Other 33,000$
Spare Parts 1 15,000$ 15,000$
Remote monitoring 6 3,000$ 18,000$
Freight 151,675$
AVEC Freight 1 1 13,250$ 13,250$
Preinsulated Pipe Freight 1 1 37,425$ 37,425$
Other Materials Freight 1 1 51,000$ 51,000$
equipment Move in- move out ( Herc)1 1 50,000$ 50,000$
Equipment 29,200$
Rental (excavator , truck, bobcat, 4 wheelers)4 24 200$ 19,200$
Repair 2 1 2,500$ 5,000$
Fuel 2 1 2,500$ 5,000$
67
Labor 361,600$
Construction Management 1 240 120$ 28,800$
Construction Travel 2 4 1,400$ 11,200$
Superintendent 1 390 140$ 54,600$
Superintendent travel 2 1 1,000$ 2,000$
Electrician 1 120 120$ 14,400$
Electrician Travel 1 1 1,000$ 1,000$
Plumber/Foreman Labor 2 250 130$ 65,000$
Plumber Travel 2 1 1,000$ 2,000$
Pipe Installation Local Labor 4 240 50$ 48,000$
Interior Plumbing Local Labor 2 240 50$ 24,000$
AVEC Labor 2 60 120$ 14,400$
AVEC Travel 2 2 1,400$ 5,600$
Shipping and Receiving 3 80 110$ 26,400$
Purchasing 1 100 110$ 11,000$
Contracting 1 40 100$ 4,000$
Safety 1 40 120$ 4,800$
Training ( local labor)1 40 50$ 2,000$
Engineer Labor ( CA support)3 60 130$ 7,800$
Site Travel 3 3 1,400$ 4,200$
Utility Support - training and start up 1 80 100$ 8,000$
Utility Support Travel- training and start up 1 3 1,400$ 4,200$
Utility Support - remote monitoring 1 40 100$ 4,000$
Utility Support Travel - - remote monitoring 1 1 1,400$ 1,400$
Technical Writer 1 60 80$ 4,800$
Project Management 1 80 100$ 8,000$
Other 10,100$
Construction Lodging 1 101 100$ 10,100$
1,059,245$
1,218,132$
2 years escalation @ 3% / year 74,184$
Total 1,292,316$
$126,323
10.23
Labor + Mat + Frgt + Design
All + 15% contingency
Estimated annual fuel savings
Simple Payback ( in Years)
68
Shungnak Total Project Estimate - Option #2 917,727$
# of Employees Hours/Quantity
Hourly Rate/Unit
Rate Total Cost
Design Performed by Qualified Contractor 86,270.0$
Mechanical Engineer 1 140 140$ 19,600.0$
Civil Engineer 1 80 120$ 9,600.0$
Electrical Engineer 1 80 130$ 10,400.0$
Survey 2 60 110$ 13,200.0$
Autocad support 2 60 110$ 13,200.0$
Travel 5 1 1,250$ 6,250.0$
Cost Estimator 1 40 120$ 4,800.0$
Design Review 4 4 120$ 1,920.0$
Environmental 1 30 110$ 3,300.0$
Project Management 1 40 100$ 4,000.0$
Construction 665,944$
Materials 251,835$
Buried Piping 130,780$
Pre-Insulated 2" PPR-CT Arctic Pipe 1800 60$ 108,000$
Fittings/other 90 17$ 1,530$
Geotextile 900 5$ 4,500$
Clamps/Insulation/Other 90 75$ 6,750$
Glycol 1 1,000$ 1,000$
Insulation 900 10$ 9,000$
Above Ground Piping 4,555$
Pre-Insulated 2" PPR-CT Arctic Pipe 50 24$ 1,200$
Fittings/other 2.5 17$ 43$
Geotextile 25 5$ 125$
Clamps/Insulation/Other 2.5 75$ 188$
Glycol 3 1,000$ 3,000$
School House Connection 37,500$
Pipe and Fittings 1 10,000$ 10,000$
Heat Exchanger 1 6,000$ 6,000$
Controls 1 7,500$ 7,500$
Insulation 1 3,000$ 3,000$
Expansion Tank 1 1,000$ 1,000$
Pump 2 5,000$ 10,000$
Power Plant Connection 53,000$
Pipe and Fittings 1 20,000$ 20,000$
Heat Exchanger 1 10,000$ 10,000$
Controls and thermal management panel 1 20,000$ 20,000$
Insulation 1 3,000$ 3,000$
Expansion Tank 0 1,000$ -$
Pump 0 2,500$ -$
69
BTU Meter Install 12,000$
BTU Meter 1 2,000$ 2,000$
Flow Meters 2 3,500$ 7,000$
AVEC Link 1 3,000$ 3,000$
Other 14,000$
Spare Parts 1 5,000$ 5,000$
Remote monitoring 3 3,000$ 9,000$
Freight 112,959$
AVEC Freight 1 1 13,250$ 13,250$
Preinsulated Pipe Freight 1 1 33,834$ 33,834$
Other Materials Freight 1 1 15,875$ 15,875$
equipment Move in- move out ( Herc)1 1 50,000$ 50,000$
Equipment 17,800$
Rental (excavator , truck, bobcat, 4 wheelers)4 16 200$ 12,800$
Repair 1 1 2,500$ 2,500$
Fuel 1 1 2,500$ 2,500$
Labor 276,450$
Construction Management 1 230 120$ 27,600$
Construction Management Travel 1 4 1,250$ 5,000$
Electrician 1 60 120$ 7,200$
Electrician Travel 1 1 1,000$ 1,000$
Superintendent 1 330 140$ 46,200$
Superintendent travel 2 1 1,000$ 2,000$
Plumber Labor 1 300 130$ 39,000$
Plumber Travel 1 1 1,000$ 1,000$
Pipe Installation Local Labor 4 180 50$ 36,000$
Interior Plumbing Local Labor 2 140 50$ 14,000$
AVEC Labor 2 60 120$ 14,400$
AVEC Travel 2 2 1,400$ 5,600$
Shipping and Receiving 4 40 110$ 17,600$
Purchasing 1 100 110$ 11,000$
Contracting 1 40 100$ 4,000$
Safety 1 40 120$ 4,800$
Training (Local Labor)1 40 50$ 2,000$
Engineer Labor 3 60 125$ 7,500$
Site Travel 3 3 1,250$ 3,750$
Utility Support - training and start up 1 70 100$ 7,000$
Utility Support Travel- training and start up 1 3 1,400$ 4,200$
Utility Support - remote monitoring 1 40 100$ 4,000$
Utility Support Travel - - remote monitoring 1 1 1,400$ 1,400$
Technical Writer 1 40 80$ 3,200$
Project Management 1 70 100$ 7,000$
Other 6,900$
Construction Lodging 1 69 100$ 6,900$
70
752,214$
865,046$
2 years escalation @ 3% / year 52,681$
Total 917,727$
$70,656
12.99
Labor + Mat + Frgt + Design
All + contingency
Estimated annual fuel savings
Simple Payback ( in Years)
71
Alaska Energy Authority – AEA 21010
Renewable Energy Fund Grant Application
Appendix B
72
73
City of Shrmgnak
P.O. Box 73058
Shtmg:nak, Alaska 99773
Shungoak@gmail.com.
Resolution # 20-05
By the City of Shungnak
A Resolution Requesting Funding from tbe Alaska Energy Authority
Renewable Energy Fund, Round 13, and Commitment
WHEREAS: The City of Shungnak is established as a municipal government and
primary operator of community facilities which stand .to benefit from the proposed
project; and
WHEREAS: The Alaska Village Electric Cooperative· (AVEC) is the certified member-
owned electric cooperative for much of rural Alaska including Shungnak, and the
primary operator of the power plant which will supply recovered heat to the proposed
project; and
WHEREAS: The Alaska Native Tribal Health Consortium (ANTHC) is a statewide
tribal health consortium; and,
WHEREAS: The ANTIIC will be the primary contractor, responsible for project
management; and ··
WHEREAS: These facilities are managed by the City of Shungnak and AVEC to
provide power, water, and sanitation services to and for the benefit of Tribal members
and residents of the City of Shungnak; and
WHEREAS: The City of Shungnak recognizes that this project will benefi.t the
corrununity and all residents there within by improving access to affordable energy, clean
water, sanitation, and other services necessary for maintaining the health and wellbeing
of the whole community; and
WHEREAS: The Alaska Energy Authority, R enewable Energy FtUld is soliciting
applications to suppott projects that will reduce the cost of energy and improve
community energy efficiency; and
WHEREAS: The City of Shungnak and the ANTIIC are committed to making public
health services more affordable through diverse energy project~; and
WHEREAS: The City of Shungnak is compliant with applicable federal, state, and local
laws, including existing credit and federal tax obligations; and
74
WHEREAS: The City of Shungnak is committed to working with ANTHC and AVEC
toward the completion of this project.
NOW THEREFORE BE IT RESOLVED; that the City of Shungnak grants authority
to the individuals signing this resolution to commit ANTHC to act as a point of contact
and administer grant fimds in support of the proposed proje'ct; and
FURTHER BE IT RESOLVED; that the City of Shungnak authorizes the submittal of
an application for funding assistance under the Alaska Energy Authority, Renewable
Energy Fund, Round 13 annmmcement.
I, the undersigned, hereby certify that the City of Shun~ak Council is composed of
~members of whom 3_, constituting a QUORUM, were present and that the
fore~~esolution was PASSED AND APPROVED by the CoWicil this d ;5 day
of~ 22 ,2020.
Vote: _i_veas Nays
Signed ~ Att'=j ~Jc-
ATIEST: Council Member Au.) f'Irn m a tL
75
September 21, 2020
Mr. Curtis Thayer
Alaska Energy Authority
813 West Northern Lights Blvd.
Anchorage, AK 99503
CHAIRMAN & PRESIDENT
RE: Letter of Commitment for City of Shungnak application for Alaska Energy Authority,
Renewable Energy Fund Grant Program, Round 13 funding opportunity
Dear Mr. Thayer,
Please accept this letter of commitment on behalf of the Alaska Native Tribal Health
Consortium (ANTHC) in support of the City of Shungnak's application for the Alaska Energy
Authority, Renewable Energy Fund Grant Program, Round 13 funding opportunity. If awarded,
the funds will be used to expand and optimize heat recovery efforts benefitting community
facilities throughout the City of Shungnak resulting in an overall reduction to the community's
energy costs.
As part of ANTHC's Division of Environmental Health and Engineering (DEHE), the Rural
Energy Program works with communities to make public health services more affordable
through diverse energy projects. The cost of energy in rural communities across our state often
poses a challenge to local governments responsible for maintaining reliable public health
infrastructure.
If the City of Shungnak is awarded funding under this proposal, ANTHC's Rural Energy
Program is committed to providing comprehensive project management services to the
community in pursuit of our shared goals. ANTHC is prepared to commit the resources
identified in the City of Shungnak's grant application to ensure the project is implemented
successfully for the benefit of the community.
The ANTHC Rural Energy Program is pleased to commit these resources to the project
through partnership and collaboration with the City of Shungnak's project team.
Sincerely,
d~
Andy Teuber
Chairman and President
Out Vt;t on
Aloska N;;ttve people <He th~ healtlltest reople tn the world
ALASKA NATIVE TRIBAL HEALTH CONSORTIUM
'I 0 0 0 A 111 b a s 5 a d o r D r 1 v e I A n c h o r a g e A I a s k a 9 9 'J 0 8
907 CJ-1) lOA',
76AVEC-~ --" ALASKA VILLAGE ELECTRIC COOPERATIVE September 23, 2020 Alaska Energy Authority Mr. Curtis Thayer 813 West Northern Lights Blvd. Anchorage, AK 99503 RE: Letter of Support, City of Shungnak, Alaska Energy Authority, Renewable Energy Fund Grant Program, Round 13 application Dear Mr. Thayer, The Alaska Village Electric Cooperative, Inc. (AVEC) understands that the City of Shungnak and the Alaska Native Tribal Health Consortium (ANTHC) are preparing an application to fund a project designed to reduce community energy costs by transferring waste heat from the AVEC power plant to community facilities. We recognize that this project will help improve the quality of life for AVEC residential and commercial customers. AVEC has partnered with ANTHC's Division of Environmental Health and Engineering (DEHE) on many previous occasions for the benefit of communities we jointly serve. Our organizations are both committed to reducing energy costs for our customers, and we look forward to continuing our efforts to ensure community facilities are efficiently operated. Our cooperative would like to express support for this project and our willingness to work with the project team to ensure it is implemented successfully. ~~ Meera Kohler President and CEO Alaska Village Electric Cooperative, Inc. 4831 Eagle Street * Anchorage, Alaska 99503 * Phone (907) 561-1818 * Toll-Free (800) 478-1818 * Fax: 907-562-4086 * www.avec.org
77
September 8, 2020
Alaska Energy Authority
Northwest Arctic Borough
163 Lagoon Street
P.O Box 1110 Kotzebue, Alaska 99752
(907) 442-2500 Fax (9 07) 442-2930
www.nwabor.org
Curtis W. Thayer, Executive Director
813 West Northern Lights Blvd.
Anchorage, AK 99503
Re: Letter of Support, City of Shungnak, Ala ska Energy Authority, Renewable Energy Fund Grant
Program, Round 13 application
Dear Mr. Thayer,
I am writing to express the Northwest Arctic Borough's support for the City of Shungnak's application
under the Alaska Energy Authority , Renewable Energy Fund Grant Program , Round 13. The proposed
project will s ignificantly reduce energy costs for the community by recove ring waste heat energy and
redistributing that energy to public buildings.
The Northwest Arctic Borough is a home rule regional government responsible for providing essential
programs and services to improve the quality of life for our re sidents, including individuals living in
the C ity of Shungnak. We are the second larges t borough in Alaska, and our population is made up of
approximately 85.8% Alaska Native or part-Native individuals.
The high cost of energy presents an ongoing challenge for communities like Shungnak that are located
above the Arctic Circle. Under thi s proposal, the City of Shungnak will partner with the Alaska
Native Tribal Health Consortium's (ANTHC) Rural Energy Program , which has extensive experience
designing and implementing heat recovery systems in Arctic and sub-Arctic communities. These
systems help reduce costs for local government organizations, which can free up resources to p erform
repairs, maintenance, and perform other public services that benefit community members.
Funding from the Alaska E nergy Authority will help the community reduce annual energy costs,
helping further the Northwest Arctic Boroughs v ision oflmproving Living and Economic Conditions
for All Residents.
I am very pleased to offer this letter in support of the City of Shungnak's funding proposal, and I look
forward to seeing the community benefits that this project will produce upon completion.
Sincerely,
Lucy Nelson
Mayor, Northwest Arctic Borough
Ambler Ivisaappaat, Buckland Nunatchiaq, Deering Ipnatc hiaq, Kiana Katyaak, Kivalina Kiva lie iq, Kobuk
Laugv iik, Kotzebue Qikiqtabruk , Noatak Nautaaq, Noorvik Nuurvik, Selawik Akuli baq, Shungnak lsi t naq
78
September 4, 2020
Alaska Energy Authority
Curtis W. Thayer, Executive Director
813 West Northern Lights Blvd.
Anchorage, AK 99503
MANIILAQ_
ASSOCIATION
Re: Letter of Support, City of Shungnak, Alaska Energy Authority, Renewable Energy
Fund Grant Program, Round 13 application
Dear Mr. Thayer,
Please accept this letter on behalf of Maniilaq Association in support ofthe City of
Shungnak's application under the Alaska Energy Authority, Renewable Energy Fund
Grant Program, Round 13 funding opportunity. The proposed project will produce
significant energy savings for the community by recovering waste heat energy and
distributing recovered energy to community facilities, including the local health clinic.
Maniilaq Association is a regional Tribal Health Organization responsible for providing
health, tribal and social services to residents ofNorthwest Alaska, including those
residing in the City of Shungnak. Our organization is also a governing member of the
Alaska Native Tribal Health Consortium (ANTHC), which has demonstrated its
commitment to finding solutions to issues that are critically important to the health and
sustainability of Alaska Native communities throughout our region. If awarded funding,
the City of Shungnak will partner with ANTHC to address high energy costs, an ongoing
challenge for maintaining and improving the community's public health infrastructure.
Working together to provide high quality, culturally relevant health, social and tribal
services is Maniilaq's mission, and we are pleased to see further collaboration between
the City of Shungnak and ANTHC. Funding from the Alaska Energy Authority will help
the community reduce its annual energy costs and improve long-term public health
outcomes for its residents, helping Maniilaq achieve its vision of Healthy People,
Thriving Communities .
I am glad to offer this letter expressing Maniilaq' s support for the waste heat recovery
project being proposed by the City of Shungnak, in partnership with ANTHC.
Sincerely,
Tim Gilbert
President and CEO
MANIILAO HEALTH CENTER P.O BOX 43 KOTZEBUE AK 99752 1 800 478 3312
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Alaska Energy Authority – AEA 21010
Renewable Energy Fund Grant Application
Appendix C
79
Alaska Energy Authority – AEA 21010
Renewable Energy Fund Grant Application
The City of Shungnak could not produce a recent invoice reflecting the cost of fuel oil in time
for inclusion with the grant application prior to the submission deadline. Information regarding
2019 Fuel Costs for Shungnak and other villages within the Northwest Arctic Borough is
published on the borough’s webpage at: https://www.nwabor.org/village/shungnak/.
Shungnak’s Heating Oil Cost in 2019: $8.50/gallon
80