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Grayling REF Round 9 Application RFA#16012
Heat Recovery Alaska Energy Authority – AEA 16012 Renewable Energy Grant Application H CITY OF GRAYLING City of Grayling ALASKA ENERGY AUTHORITY – AEA 16012 RENEWABLE ENERGY GRANT APPLICATION APPLICATION CONTENTS AEA HEAT PROJECT APPLICATION – SECTION 1 THROUGH 12 AUTHORIZED SIGNERS – SECTION 13 ADDITIONAL DOCUMENTATION AND CERTIFICATION – SECTION 14 RESUMES LETTERS OF SUPPORT INVOICES GOVERNING BODY RESOLUTION APPENDIX GRAYLING HEAT RECOVERY FEASIBILITY STUDY (2015) GRAYLING WATER TREATMENT PLANT AUDIT REPORT (2014) GRAYLING TRAINING AND RETROFITS PLAN GRAYLING TRIP REPORT (5-4-2014) GRAYLING W08 JOB COST HISTORY GRAYLING Z46 JOB COST HISTORY LIST OF AEA GRANTS THAT ANTHC HAS MANAGED 2009-2014 Renewable Energy Fund Round IX Grant Application – Heat Projects Application Forms and Instructions This instruction page and the following grant application constitutes the Grant Application Form for Round VIII of the Renewable Energy Fund Heat Projects only. If your application is for energy projects that will not primarily produce heat, please use the standard application form (see RFA section 1.5). An electronic version of the Request for Applications (RFA) and both application forms are available online at: http://www.akenergyauthority.org/Programs/Renewable-Energy- Fund/Rounds#round9. • If you need technical assistance filling out this application, please contact Shawn Calfa, the Alaska Energy Authority Grants Administrator at (907) 771-3031 or at scalfa@aidea.org. • If you are applying for grants for more than one project, provide separate application forms for each project. • Multiple phases (e.g. final design, construction) for the same project may be submitted as one application. • If you are applying for grant funding for more than one phase of a project, provide milestones and budget for each phase of the project. • In order to ensure that grants provide sufficient benefit to the public, AEA may limit recommendations for grants to preliminary development phases in accordance with 3 ACC 107.605(1). • If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are completed and funding for an advanced phase is warranted. Supporting documentation may include, but is not limited to, reports, conceptual or final designs, models, photos, maps, proof of site control, utility agreements, power sale agreements, relevant data sets, and other materials. Please provide a list of supporting documents in Section 11 of this application and attach the documents to your application. • If you have additional information or reports you would like the Authority to consider in reviewing your application, either provide an electronic version of the document with your submission or reference a web link where it can be downloaded or reviewed. Please provide a list of additional information; including any web links, in section 12 of this application and attach the documents to your application. For guidance on application best practices please refer to the resource specific Best Practices Checklists; links to the checklists can be found in the appendices list at the end of the accompanying REF Round IX RFA. • In the sections below, please enter responses in the spaces provided. You may add additional rows or space to the form to provide sufficient space for the information, or attach additional sheets if needed. REMINDER: • Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials submitted to the Authority may be subject to disclosure requirements under the act if no statutory exemptions apply. • All applications received will be posted on the Authority web site after final recommendations are made to the legislature. AEA 15003 Page 1 of 28 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects • In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or proprietary company data be kept confidential subject to review and approval by the Authority. If you want information to be kept confidential the applicant must: o Request the information be kept confidential. o Clearly identify the information that is the trade secret or proprietary in their application. o Receive concurrence from the Authority that the information will be kept confidential. If the Authority determines it is not confidential it will be treated as a public record in accordance with AS 40.25 or returned to the applicant upon request. AEA 15003 Page 2 of 28 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects 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 Grayling Type of Entity: City Fiscal Year End: June 30 Tax ID #: 92-0044955 Tax Status: ☐ For-profit ☐ Non-profit ☒ Government (check one) Date of last financial statement audit: May 5th, 2015 (State of Alaska DCRA) Mailing Address: Physical Address: PO Box 89 Grayling, Alaska 99590 Grayling, Alaska Telephone: Fax: Email: ( 907) 453-5148 (907) 453-5223 cityofgrayling@yahoo.com 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name: Eric Hanssen, P.E., LEED AP Title: Program Manager, Rural Energy Initiative Mailing Address: Alaska Native Tribal Health Consortium Division of Environmental Health & Engineering Rural Energy Program Initiative 3900 Ambassador Drive, Suite 301 Anchorage, Alaska 99508 Telephone: Fax: Email: (907) 729-3620 (907) 729-4090 echanssen@anthc.org 1.1.1 APPLICANT SIGNATORY AUTHORITY CONTACT INFORMATION Name: Shirley Clark Title: Mayor Mailing Address: City of Grayling PO Box 89 Grayling, AK 99590 Telephone: Fax: Email: (907) 453-5148 (907) 453-5223 cityofgrayling@yahoo.com 1.1.2 APPLICANT ALTERNATE POINTS OF CONTACT Name Telephone: Fax: Email: Sharnel Vale (907)729-4065 (907) 729-3571 sdvale@anthc.org Sharon Anderson (907) 729-3480 (907) 729-3652 smanderson@anthc.org 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. AEA 15003 Page 3 of 28 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects 1.2.1 As an Applicant, we are: (put an X in the appropriate box) ☐ An electric utility holding a certificate of public convenience and necessity under AS 42.05, or ☐ An independent power producer in accordance with 3 AAC 107.695 (a) (1), or ☒ A local government, or ☐ A governmental entity (which includes tribal councils and housing authorities) 1.2 APPLICANT MINIMUM REQUIREMENTS (continued) Please check as appropriate. ☒ 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 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 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 http://www.akenergyauthority.org/Programs/Renewable-Energy-Fund/Rounds#round9. (Any exceptions should be clearly noted and submitted with the application.) (Indicate 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) AEA 15003 Page 4 of 28 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects SECTION 2 – PROJECT SUMMARY This section is intended to be no more than a 2-3 page overview of your project. 2.1 Project Title – (Provide a 4 to 7 word title for your project). Type in space below. Grayling Water System Heat Recovery 2.2 Project Location – Include the physical location of your project and name(s) of the community or communities that will benefit from your project in the subsections below. 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 907-771-3031. 62.90554,-160.066681 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. Grayling, Alaska 2.3 PROJECT TYPE Put X in boxes 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 and Commissioning AEA 15003 Page 5 of 28 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of the proposed heat project. The proposed project will take recovered heat from the existing Alaska Village Electric Cooperative (AVEC) power plant and use it, to heat the City of Grayling’s water system, via a connection into the water treatment plant glycol loop prior to the boilers. The estimated fuel savings from this heat recovery system is projected to save the water treatment plant 6,518 gallons of heating oil per year. For more detailed information refer to the attached Grayling, Alaska 2015 Heat Recovery Study. 2.5 Scope of Work Provide a 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 heat recovery system in Grayling, Alaska. The system will transfer heat from the jacket water cooling systems of the generators in the AVEC power plant to the systems in the water treatment plant (WTP). The heat recovery pipeline will consist of 500 linear feet, round trip of 1.5 inch pex pipe insulated with 3.5 inches of polyurethane foam insulation and HDPE outer jacket. New equipment in the WTP will include two circulating pumps and a heat exchanger, controls. New equipment at the power house will include a heat exchanger, expansion tank, glycol make-up tank, controls, and BTU meter. Design: provide a construction ready design for the heat recovery project to include a kickoff meeting, civil, mechanical, and electrical engineering services as well as CAD and survey efforts as well as 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 and a one-year monitoring follow up report. SECTION 3 – Project Management, Development, and Operation 3.1 Schedule and Milestones Criteria: Stage 2-1.A: The proposed schedule is clear, realistic, and described in adequate detail. 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 in in your project along with estimated AEA 15003 Page 6 of 28 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects start and end dates for each of the milestones and tasks. Please clearly identify the beginning and ending of all phases of your proposed project. Add additional rows as needed. Milestones Tasks Start Date End Date Deliverables 1.) Project Planning Conduct Kickoff Meeting 11/1/2016 11/1/2016 65% design w/cost estimate 11/1/2016 4/1/2017 Heat Sales Agreement 1/1/2017 4/1/2017 Final Design documents 6/1/2017 6/1/2017 2.) Construction Pre-construction meeting 7/1/2017 7/1/2017 Construction 7/1/2017 9/1/2017 Commissioning 10/1/2017 11/1/2017 Final Inspection and follow-up 11/1/2017 12/1/2017 3.) Project Closeout Project closeout 12/1/2017 12/1/2018 4.) Project Management and Match Activities Project management throughout (ANTHC in-kind) 11/1/2017 12/1/2018 3.2 Budget Criteria: Stage 2-1.B: The cost estimates for project development, operation, maintenance, fuel, and other project items meet industry standards or are otherwise justified. 3.2.1 Budget Overview Describe your financial commitment to the project. List the amount of funds needed for project completion and the anticipated nature and sources of funds. Consider all project phases, including future phases not covered in this funding request. The total requested grant funding is $427,705. Design requested AEA funding: $75,760 Construction requested AEA funding: $274,808 15% Contingency requested AEA funding: $52,585 2 year escalation at 3% per year requested AEA Funding: $24,552 ANTHC In-Kind Match: The total anticipated project cost is $431,982 including Alaska Native Tribal Health Consortium’s in-kind contribution of $4,277 for project and program management services. Energy efficiency improvements to buildings to be heated (upgraded within the past 5 years or committed prior to proposed project completion): $88,784.27 has been spent and another $6,000 has been allocated to the City from three funding sources: State of Alaska direct legislative appropriation to ANTHC to implement energy efficiencies in rural communities; Denali Commission Energy Efficiency funding and USDA RD Rural Alaska Village Grant Program, Technical AEA 15003 Page 7 of 28 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects Assistance and Training Grant. Documents are attached to this application to verify this information including: Grayling Training & Retrofits Plan, Grayling Trip Report, WTP Audit, and Job Cost Histories. The total estimated contribution from ANTHC for the 2015 Grayling Heat Recovery Feasibility Study is $8,000. Total in-kind match funds ($4,227 + $88,784.27 + $6,000 + $8,000) equals $107,011.27. 3.2.2 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. 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 at 907-771-3031 or by emailing the Grants Administrator, Shawn Calfa, at scalfa@aidea.org. AEA 15003 Page 8 of 28 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects DESIGN PHASE Milestone or Task RE- Fund Grant Funds Grantee Matching Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other TOTALS (List milestones based on phase and type of project. See Milestone list below. ) Project Management $2,139 In-kind 1% ANTHC project/program m anagement $2,139 Conduct Kickoff Meeting $5,000 $5,000 65% design w/cost estimate $49,244 $49,244 Heat Sales Agreement $5,000 $5,000 Final Design documents $16,516 $16,516 TOTALS $75,760 $2,139 $77,899 Budget Categories: Direct Labor & Benefits $0 Travel & Per Diem $0 Equipment Materials & Supplies Contractual Services *$75,760 $2,139 $77,899 Construction Services Other TOTALS $75,760 $2,139 $77,899 AEA 15003 Page 9 of 28 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects CONSTRUCTION PHASE Milestone or Task RE- Fund Grant Funds Grantee Matching Source of Matching Funds: Cash/In- kind/Federal Grants/Other Sta te Grants/Other TOTALS (List milestones based on phase and type of project. See Milestone list below. ) Project Management $2,138 In-kind ANTHC project/program management $2,138 Pre-construction meeting $500 $500 Construction $242,308 $242,308 Commissioning $10,000 $10,000 Final Inspection and follow-up $20,000 $20,000 Project Closeout $2,000 $2,000 $274,808 $2,138 $276,946 Budget Categories: Direct Labor & Benefits Travel & Per Diem $0 Equipment Materials & Supplies $0 Contractual Services *$274,808 $2,138 $276,946 Construction Services Other TOTALS $274,808 $2,138 $276,946 Additional Costs 15% Total Project Contingency $52,585 $52,585 2 Years escalation @ 3% / yr $24,552 $24,552 TOTALS $77,137 $77,137 CONSTRUCTION GRAND TOTAL $351,945 $2,138 $354,083 3.2.3 Cost Justification Indicate the source(s) of the cost estimates used for the project budget. The cost estimates presented in the table below represent the anticipated costs of the proposed system, taking into account recent design and construction costs of similar projects. Large financial risks are associated with construction work in rural Alaska. Expenses for potential changes in site conditions, unknown or unforeseen issues, and logistics have been incorporated into these costs. ANTHC’s match may actually work out to be much higher than shown, as this work may be performed at ANTHC’s billing rate and may exceed the hours anticipated. AEA 15003 Page 10 of 28 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects Any excess time/value of the project management in-kind match does not replace other financial cost elements of this project. The anticipated dates of completion are assumed based on the likelihood of funding, other ongoing work in the city, and other heat recovery work going on around the state. 3.2.4 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 $ 427,705 Cash match to be provided $ In-kind match to be provided (doesn’t include EE and Feasibility) $ 4,277 Total costs for project phase(s) covered in application (sum of above) $ 431,982 For heat projects using building efficiency completed within the last 5 years as in-kind match, the applicant must provide documentation of the nature and cost of efficiency work completed. Applicants should provide as much documentation as possible including: 1.Energy efficiency pre and post audit reports, 2. Invoices for work completed, 3.Photos of the building and work performed, and/or 4.Any other available verification such as scopes of work, technical drawings, and payroll for work completed internally. 3.2.5 Total Project Costs Indicate the anticipated total cost by phase of the project (including all funding sources). Use actual costs for completed phases. Reconnaissance $ Feasibility and Conceptual Design $ 8,000 Final Design and Permitting $ 77,899 Construction (includes escalation and contingency) $ 354,083 Total Project Costs (sum of above) $ 439,982 3.2.6 Operating and Maintenance Costs (non-fuel) Estimate annual non-fuel O&M costs associated with the proposed system $500 3.2.7 Fuel Costs Estimate annual cost for all applicable fuel(s) needed to run the proposed system Fuel type Annual cost ($) $ $ $ AEA 15003 Page 11 of 28 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects 3.3 Project Communications Criteria: Stage 2-1.C: The applicant’s communications plan, including monitoring and reporting, is described in adequate detail. Describe how you plan to monitor the project and keep the Authority informed of the status. Written project progress reports will be provided to the AEA project manager as required by the grant. Meetings will be conducted by ANTHC, the City of Grayling, and AEA to discuss the status of the project. Regular coordination meetings will be held between AEA and ANTHC regarding all projects. 3.4 Operational Logistics Criteria: Stage 2-1.D: Logistical, business, and financial arrangements for operating and maintaining the project throughout its lifetime and selling energy from the completed project are reasonable and described in adequate detail. Describe the anticipated logistical, business, and financial arrangements for operating and maintaining the project throughout its lifetime and selling energy from the completed project. A heat sales agreement will be established between AVEC and the city of Grayling. Under this agreement: Heat generated by AVEC’s power plant during production of electric power will be recovered and used to reduce Purchaser’s heating fuel consumption and boiler exhaust emissions at Purchaser’s Heated Facility; and AVEC and the Purchaser will enter into an agreement for the sale and purchase of Recovered Heat; and the Purchaser understands and acknowledges that Recovered Heat is supplemental heat, which is intended solely to reduce Purchaser’s heating fuel consumption, and it is the responsibility of the Purchaser to operate and maintain a primary heat source at the Purchaser’s facilities in a fully functioning manner at all times; The heat sales agreement will likely be in effect for five (5) years from the Effective Date. The Agreement shall be automatically renewed for an additional five (5) years if the Purchaser continues to accept recovered heat after the initial five years. The details of the heat sales agreement will need approval by the parties entering into the agreement. Early Termination may occur if there is a material failure of either party in performing or fulfilling its obligations under the heat sales agreement; or if the power plant is relocated in which case the cost of making any necessary modifications to AVEC System to continue to provide recovered heat to Purchaser shall be the sole responsibility of Provider. If, in Provider’s judgment, the anticipated cost of such modifications is not expected to be recovered within a reasonable time period, Provider retains the right to terminate the heat sales agreement. If all of the Purchaser Heated Facilities are abandoned and no longer heated, the agreement may be terminated. The Purchaser, or the Purchaser’s authorized agent, is authorized to enter upon, over, and under AVEC’s premises, including Provider’s Facilities, to construct, reconstruct, maintain, inspect, repair, operate, improve, and update the Recovered Heat System. Beginning on the Operational Date, Provider will supply Recovered Heat to Purchaser under the terms and conditions of the heat sales agreement. It is agreed to and understood by both parties that Recovered Heat will be supplied to Purchaser’s Heated Facilities on an interruptible basis. Purchaser shall be solely responsible at all times to operate and maintain in a fully functioning manner the Purchaser facilities primary heat system and to maintain an adequate fuel supply to meet the full heating demand of its facilities. The main circulating pump shall be located at the Purchaser’s Facility and the Purchaser shall furnish the electric power to operate the main pump at no cost to AVEC. Secondary circulating pump(s), installed in the Purchaser’s Heated Facilities, are part of the Purchaser System and the Purchaser shall furnish the electric power to operate the secondary pump(s) at no cost to AVEC. AEA 15003 Page 12 of 28 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects Purchaser shall be responsible for maintaining that portion of the heat recovery system on the Purchaser’s side of the delivery point and AVEC shall be responsible for maintaining that portion of the heat recovery system on AVEC’s side of the delivery point. All maintenance of the system inside Provider’s facility shall be coordinated with AVEC. If the Purchaser fails to properly maintain the system in a fully functioning and environmentally safe manner, AVEC shall have the right to take corrective actions and recover its costs from the Purchaser. Except in the case where a failure to maintain may imminently threaten life or property, AVEC shall give reasonable notice in writing to the Purchaser of its intention to take corrective action under this paragraph, including an estimate of recoverable costs. Purchaser’s payment obligation described in this section to Provider shall start on the first day of the second month after the Operational Date and remain in effect through the term of the heat sales agreement. No invoice will be issued by AVEC. Billing will be provided on the Purchaser's monthly electric bill. Purchaser shall pay a sum equal to the agreed amount each month no later than the 25th of each month. All amounts not paid by the date due shall accrue interest at the rate of one percent (1.0%) per month. In addition, in the event Purchaser fails to pay any amount due to Provider, Provider reserves the right to discontinue the supply of heat. Provider will notify Purchaser in writing if the supply of heat is being discontinued for nonpayment and, if within thirty (30) days after receipt of notification Purchaser fails to pay the balance due, heat may be discontinued without further notice. Provider retains the right to sell additional Recovered Heat to other entities. If the sale of additional Recovered Heat will not significantly reduce the amount of Recovered Heat available under the heat sales agreement (less than 20% reduction), AVEC shall issue written notice to the Purchaser of the intent to sell additional Recovered Heat prior to commencing delivery of additional Recovered Heat. If the sale of additional Recovered Heat will significantly reduce the amount of Recovered Heat available under the heat sales agreement (greater than 20% reduction), AVEC shall issue written notice to the Purchaser of the intent to sell additional Recovered Heat a minimum of 6 months prior to commencing delivery of additional Recovered Heat. SECTION 4 – QUALIFICATIONS AND EXPERIENCE 4.1 Project Team Criteria: Stage 2-2.A: The Applicant, partners, and/or contractors have sufficient knowledge and experience to successfully complete and operate the project. If the applicant has not yet chosen a contractor to complete the work, qualifications and experience points will be based on the applicant’s capacity to successfully select contractors and manage complex contracts. Criteria: Stage 2-2.B: The project team has staffing, time, and other resources to successfully complete and operate the project. Criteria: Stage 2-2.C: The project team is able to understand and address technical, economic, and environmental barriers to successful project completion and operation. Criteria: Stage 2-2.D: The project team has positive past grant experience. 4.1.1 Project Manager Indicate who will be managing the project for the Grantee and include contact information, and a resume. In the electronic submittal, please submit resumes as separate PDFs if the applicant would like those excluded from the web posting of this application. 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. AEA 15003 Page 13 of 28 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects Alaska Native Tribal Health Consortium (ANTHC) is a statewide non-profit health services organization, formed by congress in 1997 to assume the roles and duties of the Indian Health Service (IHS) in Alaska. ANTHC is the largest tribal self-governance entity in the United States, with over 1,900 employees and an annual operating budget in excess of $475M. Approximately 31% of this funding is from a compact agreement with IHS. Approximately 25% of the operating revenue originates from other federal and state grants and contracts. ANTHC has a 16-year history of clean audits, conducted by an independent accounting firm in accordance with the Single Audit Act. The Division of Environmental Health & Engineering, Rural Energy Program: Program Manager Eric Hanssen, P.E., LEED AP has been with ANTHC since 2007. As part of ANTHC’s Rural Energy Program, he oversees project development, design, and construction of energy efficiency and renewable energy projects for remote communities across the entire state of Alaska. During his time with ANTHC, Eric has also served as a Project Manager for rural water and wastewater infrastructure projects, as well as a Health Facilities Engineer focused on hospital and clinic construction and renovation projects. Prior to joining ANTHC, Eric served seven years as a civil engineer and officer for the US Air Force in Alaska, Washington DC, Florida and Iraq. He holds a BS in Environmental Engineering from the US Air Force Academy in Colorado and a Master’s in Environmental Policy and Economics from the University of Maryland, College Park. Eric will provide oversight to the project manager for this effort, who will be Tashina Duttle. The Division of Environmental Health & Engineering, Rural Energy Program: Project manager, Tashina Duttle has been with ANTHC since April 2015. Tashina will manage this project if funding is awarded. Tashina’s background has included sustainable prototype construction project coordination in rural Alaska communities, she also has experience in multi- discipline engineering design environments— managing projects and developing project proposals. Tashina is currently the project manager for 5 heat recovery projects at varying stages of development. She has a BS in Sustainable Resources Management, an endorsement in Sustainable Energy from the University of Alaska Fairbanks and is completing her MS in Project Management at the University of Alaska Anchorage. The Division of Environmental Health & Engineering, Engineering Program: DEHE has multiple professional engineers on staff that focus on sanitation facilities engineering projects across rural Alaska. DEHE has mechanical engineers available to work on this project that have previous experience designing heat recovery projects similar in scope to this proposed project. The project design team will have a designated professional engineer assigned from each discipline (civil, electrical, and mechanical) to provide the expertise needed in each of the related design tasks for construction ready design documents. The DEHE survey and CAD departments will supplement this effort where needed. . The DEHE survey and CAD departments will supplement this effort where needed. 4.1.2 Expertise and Resources Describe the project team including the applicant, partners, and contractors. Provide sufficient detail for reviewers to evaluate: •the extent to which the team has sufficient knowledge and experience to successfully complete and operate the project; •whether the project team has staffing, time, and other resources to successfully complete and operate the project; •how well the project team is able to understand and address technical, economic, and environmental barriers to successful project completion and operation. AEA 15003 Page 14 of 28 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects 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. Include brief resumes for known key personnel and contractors 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 The ANTHC Rural Energy Initiative has created alternative ways to continue serving our customer Owners—Working collaboratively with ANTHC’s Alaska Rural Utility Collaborative, the Alaska Energy Authority, Tribal organizations, rural power companies and several others to reduce energy costs and improve overall sustainability throughout Alaska. The Rural Energy Initiative has experience helping communities identify renewable energy projects that reduce costs, while increasing energy efficiency and operator training and maintenance. ANTHC’s Division of Environmental Health and Engineering (DEHE) has a full service engineering group to utilize for this project if designed internally. 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. ANTHC’s construction group has experience providing similar heat recovery systems and is more than capable of providing the construction portion of the project utilizing local force account labor resources where available. DEHE's Tribal Utility Support Program has utility operations consultants that will be available post construction to provide both operational and managerial advice to the project and to help guide the production of operations and maintenance materials. 4.1.3 Project Accountant(s) Indicate who will be performing the accounting of this project for the grantee and include a resume. In the electronic submittal, please submit resumes as separate PDFs if the applicant would like those excluded from the web posting of this application. If the applicant does not have a project accountant indicate how you intend to solicit financial accounting support. The City of Grayling will use the accounting resources of ANTHC. ANTHC’s Division of Environmental Health accounting department is led by the Construction Controller, Diane Chris. The Construction Finance Department is comprised of 10 staff that handle all DEHE’s accounting functions. A Senior Accountant has been designated to support any ANTHC Grant awards including AEA financial reporting. Key Staff resumes are included in this application. ANTHC has a 16-year history of clean audits, conducted by an independent accounting firm in accordance with the Single Audit Act. 4.1.4 Financial Accounting System 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 Renewable Energy Fund Grant Program. The project finances will be kept in ANTHC DEHE’s Spectrum, a job cost accounting software. The software accounts expenditures by phase code and cost types. Purchasing, contracting, and accounting are the primary users of the system with the information always available to the project team. AEA 15003 Page 15 of 28 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects The City of Grayling will enter into a cooperative project agreement (CPA) with ANTHC to implement the project as well as financial management. ANTHC’s cost controls have been implemented to comply with OMB cost control principles and requirements of all state and federal grants. ANTHC has a 16-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. 4.2 Local Workforce Criteria: Stage 2-2.E: The project uses local labor and trains a local labor workforce. Describe how the project will use local labor or train a local labor workforce. ANTHC has extensive experience utilizing force account labor. For our rural construction projects we work with community leaders to identify local labor resources to work on our projects. We anticipate hiring local labor for the construction effort. ANTHC recognizes the value of using local labor to yield enhanced local control and ownership of a project and is committed to providing opportunities to the local workforce. AEA 15003 Page 16 of 28 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects SECTION 5 – TECHNICAL FEASIBILITY 5.1 Resource Availability Criteria: Stage 2-3.A: The renewable energy resource is available on a sustainable basis, and project permits and other authorizations can reasonably be obtained. 5.1.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available, including average resource availability on an annual basis. Describe the pros and cons of your proposed energy resource vs. other alternatives that may be available for the market to be served by your project. 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. This project proposes to use water jacket heat generated by the AVEC power plant to displace 6,518 gallons of fuel oil required to heat the water system in Grayling, Alaska. The only realistic alternative to utilizing the heat recovery system is to continue to burn fuel oil to provide the heat required by the water system. 5.1.2 Permits Provide the following information as it may relate to permitting and how you intend to address outstanding permit issues. •List of applicable permits •Anticipated permitting timeline •Identify and describe potential barriers No permits are anticipated for this heat recovery project. If during the course of the project permits are needed, ANTHC will ensure that all permits are obtained and followed. 5.2 Project Site Criteria: Stage 2-3.B: A site is available and suitable for the proposed energy system. 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. There are no apparent conflicts with rights-of-ways for the arctic piping between the power plant and the end user building, as the route is entirely within existing road rights-of-ways and on City and AVEC property. 5.3 Project Risk Criteria: Stage 2-3.C: Project technical and environmental risks are reasonable. 5.3.1 Technical Risk Describe potential technical risks and how you would address them. In general there are no technological or financial risks involved with the plan to utilize recovered heat from the power plant to provide heat to the water system and water plant. Installing the necessary heat exchangers, piping, pumps, and controls necessary for implementation has been done many times before in other communities and proven effective for many years. 5.3.2 Environmental Risk Explain whether the following environmental and land use issues apply, and if so how they will be addressed: •Threatened or endangered species •Habitat issues •Wetlands and other protected areas AEA 15003 Page 17 of 28 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects •Archaeological and historical resources •Land development constraints •Telecommunications interference •Aviation considerations •Visual, aesthetics impacts •Identify and describe other potential barriers ANTHC will consider all potential environmental concerns associated with this project. ANTHC uses 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. 5.4 Existing and Proposed Energy System Criteria: Stage 2-3.D: The proposed energy system can reliably produce and deliver energy as planned. 5.4.1 Basic Configuration of Existing Energy System Describe the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. 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 demand, washeteria loads, heating degree days, passive losses for power plant heat and piping, and arctic piping losses. The spreadsheet uses assumed time of day variations for electrical power production and heat demand. Power generation data from AVEC for fiscal year 2011 is used in the spreadsheet. The estimated heat rejection rate for the lead power plant generator, a Detroit Diesel Series 60 DDEC4, is used to estimate available recovered heat. Heating degree-days for Grayling were used for this site. All power plant hydronic piping is assumed to be insulated with 2 inches of insulation. Existing Power Plant Engine Information: 1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. NAME POS #ENG MAKE ENG MODEL ENG SERIAL # ENG ARRANG # KW RATING GRAYLING 1 DD S60K4c 1200 06R0122643 6063TK35 236 GRAYLING 2 CMS LTA10 1200 34558002 CPL 775 168 GRAYLING 3 CMS LTA10 1800 34558079 CPL 775 203 Existing Energy Generation and Usage a)Basic configuration (if system is part of the Railbelt 1 grid, leave this section blank) i.Number of generators/boilers/other Detroit Diesel S60 1200 RPM ii.Rated capacity of generators/boilers/other 236 kW iii.Generator/boilers/other type Fuel Oil Boilers iv.Age of generators/boilers/other 5+ years v.Efficiency of generators/boilers/other 75% vi. is there heat recovery and is it operational?no b)Annual O&M cost AEA 15003 Page 18 of 28 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects i.Annual O&M cost for labor $300 ii.Annual O&M cost for non-labor $200 c)Annual electricity production and fuel usage (fill in as applicable) i.Electricity [kWh] ii.Fuel usage Diesel [gal] Other iii.Peak Load iv.Average Load v.Minimum Load vi.Efficiency vii.Future trends d)Annual heating fuel usage (fill in as applicable) i.Diesel [gal or MMBtu]8,004 gallons of Number 1 fuel oil equivalent of surplus heat. ii.Electricity [kWh] iii.Propane [gal or MMBtu] iv.Coal [tons or MMBtu] v.Wood [cords, green tons, dry tons] vi.Other AEA 15003 Page 19 of 28 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects 5.4.2 Future Trends Describe the anticipated energy demand in the community over the life of the project. Assuming population remains the same or populations grow, the demand for heat in the water treatment plant processes will always be present. Thus the energy demand for this application will either be steady or increase. 5.4.3 Impact on Rates Briefly explain what if any effect your project will have on electrical rates in the proposed benefit area over the life of the project. For PCE eligible communities, please describe the expected impact would be for both pre and post PCE. This project is anticipated to reduce fuel consumption up to 6,518 gallons per year. This project is not intended to have an impact on electrical rates or PCE. However, with the reduced cost of heat in the processes of providing water, utility rates should see a decrease. 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 •Optimum installed capacity •Anticipated capacity factor •Anticipated annual generation •Anticipated barriers •Integration plan •Delivery methods The proposed system will transfer heat from the jacket water cooling systems of the generators in the AVEC power plant to the systems in the water treatment plant (WTP). The heat recovery pipeline will consist of 500 linear feet, round trip of 1.5 inch pex pipe insulated with 3.5 inches of polyurethane foam insulation and HDPE outer jacket. New equipment in the WTP will include two circulating pumps and a heat exchanger, controls. New equipment at the power house will include a heat exchanger, expansion tank, glycol make-up tank, controls, and BTU meter. POWER PLANT TIE-IN Modifications to the AVEC power plant include retrofitting the existing generator with a marine jacket, installation of heat exchangers, control valves and associated piping and plumbing. All heat recovery piping will be insulated with a minimum of 2-inch polyurethane foam insulation and will 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. Additional controls will be added, including a BTU meter and motorized bypass valve for coolant temperature control. The recovered heat fluid will be a 50/50 propylene glycol/water solution to provide freeze protection to the piping. END-USER BUILDING TIE-IN End-user building tie-ins typically consist of brazed plate heat exchangers with motorized bypass valves to prevent back feeding heat to AVEC. A plate heat exchanger located in the water treatment plant will be tied in to the boiler return piping to preheat the boiler water prior to entering AEA 15003 Page 20 of 28 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects the boiler. Where required, a heat injection pump will be used to avoid introducing excessive pressure drop in the building heating system. The maximum anticipated delivered recovered heat supply temperature is about 190F. When there is insufficient recovered heat to meet the building heating load, the building heating system 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 1- inch 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. Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a)Proposed renewable capacity (Wind, Hydro, Biomass, other) [kW or MMBtu/hr] b)Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] ii. Heat [MMBtu]6,518 gallons of #1 fuel oil displaced annually ~ 873 MMBtu c)Proposed annual fuel usage (fill in as applicable) i.Propane [gal or MMBtu] ii.Coal [tons or MMBtu] iii.Wood or pellets [cords, green tons, dry tons] iv.Other 5.4.5 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 Request for Applications. Metering and monitoring equipment for this water plant are estimated to be $15,000. A KEP BTU meter will be installed equipped with a Monnit pulse counter. This data is to be fed through a cellular internet connection to the central Monnit server and the ANTHC web site. This is assuming ANTHC’s current remote monitoring practice and is in addition to the project. AEA 15003 Page 21 of 28 7/8/15 Surplus heat from the power plant Renewable Energy Fund Round IX Grant Application – Heat Projects SECTION 6 – ECONOMIC FEASIBILITY AND BENEFITS 6.1 Economic Feasibility Criteria: Stage 2-4.A: The project is shown to be economically feasible (net positive savings in fuel, operation and maintenance, and capital costs over the life of the proposed project). 6.1.1 Economic Benefit Explain the economic benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following: •Anticipated annual and lifetime fuel displacement (gallons and dollars) •Anticipated annual and lifetime revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or cost based rate) •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) The economic model used by AEA is available at http://www.akenergyauthority.org/Programs/Renewable-Energy-Fund/Rounds#round9. 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. Based on the 2015 Grayling, Alaska Heat Recovery Study, this project will lower energy and operational costs for the utility by 6,518 gallons or $22,616 annually. By reducing this cost, the money normally spent on heating oil can stay in the local economy. There are no other known incentives or revenue streams that will result from this project. The benefits to the community of this project include a reduction in the amount of fuel required by the community, much more efficient use of the recovered engine heat, and a direct benefit to each community member due to the lower cost to produce, store, and deliver water 6.1.2 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 •Proposed rate of return from grant-funded project 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. A standard heat sales agreement will be executed between AVEC and the City of Grayling. The agreement will define the terms and methods for heat sales. Typically, heat sales agreements charge end users the equivalent of one third the cost (of AVEC’s cost for fuel) of fuel displaced. This amount is much lower than the retail price of fuel in the village. A BTU meter will be used to measure the amount of recovered heat used by the water system. 6.1.3 Public Benefit for Projects with Private Sector Sales For projects that include 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 Request for Applications for more information. This project does not include the sales of power to private sector. Renewable energy resource availability (kWh per month) Estimated sales (kWh) Revenue for displacing diesel generation for use at private sector businesses ($) AEA 15003 Page 22 of 28 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects Estimated sales (kWh) Revenue for displacing diesel generation for use by the Alaskan public ($) 6.2 Financing Plan Criteria: Stage 2-4.B: The project has an adequate financing plan for completion of the grant- funded phase and has considered options for financing subsequent phases of the project. 6.2.1 Additional Funds Identify the source and amount of all additional funds needed to complete the work in the phase(s) for which REF funding is being applied in this application. Indicate whether these 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. There are not additional funds needed to complete the work as currently identified. 6.2.2 Financing opportunities/limitations If the proposed project includes final design or construction phases, what are your opportunities and/or limitations to fund this project with a loan, bonds, or other financing options? The community is not interested in applying for financing for this project at this time. 6.2.2 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. This would be the approach for this project as well. 6.2.3 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. There are not further phases for this project, beyond what is being applied for in this application. 6.3 Other Public Benefit Criteria: Stage 3-4.C: Other benefits to the Alaska public are demonstrated. Avoided costs alone will not be presumed to be in the best interest of the public. 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 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, 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 The waste heat from the power plant could be utilized as an alternative heat source for the sanitation system which will drive down user fees in the community, making access to safe drinking water and piped sewer. Cost savings to users will provide access to these systems and allow reserves to accumulate to address operations and maintenance issues of the larger sanitation system as a whole. There are positive health impacts associated with providing AEA 15003 Page 23 of 28 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects water and sewer to homes including reduced disease occurrence, reducing user costs will increase access to these services. SECTION 7 – SUSTAINABILITY Describe your plan for operating the completed project so that it will be sustainable throughout its economic life. Include at a minimum: •Capability of the Applicant to demonstrate the capacity, both administratively and financially, to provide for the long-term operation and maintenance of the proposed project •Is the Applicant current on all loans and required reporting to state and federal agencies? •Likelihood of the resource being available over the life of the project •Likelihood of a sufficient market for energy produced over the life of the project • This project increases the sustainability of the water system by reducing its operating cost over the life of the project. The minimal maintenance and operating cost can be funded out of its revenue stream and out of its savings over the 30-year life of the project. Although the boilers will be maintained and are the primary heating source in the water treatment plant, their use is to be greatly curtailed. The City of Grayling is committed to meeting all reporting requirements over the entire length of the reporting period. SECTION 8 – PROJECT READINESS 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 •Improving the thermal energy efficiency of the building(s) to be served by the heat project A detailed heat recovery study has been completed and is attached to this application. The intent is to proceed with this project as soon as practical once design and construction funding is available ANTHC has maintained a robust operating budget for all four divisions. ANTHC operates dozens of programs and projects. We receive funding from numerous well-recognized sources; this demonstrates our capacity to manage this grant. Funders include the United States Environmental Protection Agency, United States Department of Agriculture, Indian Health Service, Denali Commission, Centers for Disease Control, Department of Energy, Department of Health & Human Services, Department of Commerce, Fred Hutchinson Cancer Research Center, Mayo Clinic, National Native American AIDS Prevention Center, Rasmuson and Robert Wood Johnson Foundations, State of Alaska, University of Washington, and others. The phase that has been completed prior to the phases proposed is the Heat Recovery Study, which is attached. ANTHC has the capacity to secure all necessary permits and will work closely with the community and the survey department in securing land access and use for the project. All necessary AEA 15003 Page 24 of 28 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects equipment and materials can be coordinated by our DEHE construction group who is very familiar with mobilization and procurement best practices for projects in rural Alaska. The thermal energy efficiency of the proposed end users have been addressed, see attached supporting documents for a detailed scope of the energy efficiency upgrades including: Grayling Water Treatment Plant Audit, Trip Report, Training and Retrofits Plan, and associated job cost history reports. 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. The Documentation of support must be dated within one year of the RFA date of July 7, 2015 The City of Grayling is submitting the grant application. ANTHC has provided a match for the project as well as a letter of support. The Grayling IRA Council, Yukon-Kuskokwim Health Corporation and AVEC have also written letters of support for this project. There is no known opposition to this project. AEA 15003 Page 25 of 28 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects 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 Grants Department, in operation since 1999, writes and complies with grants and cooperative agreements to the funders’ requirements and has not had an audit finding since inception. At any one time, ANTHC manages over 150 grants, ranging in the millions of dollars to several thousands of dollars each. ANTHC’s grant portfolio includes grants from; federal, state, and a variety of large to small nonprofit organizations and foundations. The Grants Management department provides comprehensive grants administration and assistance, coordinates grant reporting activities with a range of project managers, and ensures effective financial management of grant programs. Coordinates regular grant activities; works with ANTHC staff and funding agencies to ensure project goals and objectives are met, timely submittal of progress reports, or closeout data; and coordinates effort with project managers, supervisors, and accountants to manage grants according to granting agency regulations. ANTHC maintaines a robust operating budget for all four divisions. ANTHC operates dozens of programs and projects. We receive funding from numerous well-recognized sources; this demonstrates our capacity to manage this grant. Funders include the United States Environmental Protection Agency, United States Department of Agriculture, Indian Health Service, Denali Commission, Centers for Disease Control, Department of Energy, Department of Health & Human Services, Department of Commerce, Fred Hutchinson Cancer Research Center, Mayo Clinic, National Native American AIDS Prevention Center, Rasmuson Foundation, and Robert Wood Johnson Foundations, State of Alaska, University of Washington, and others. SECTION 11 – LIST OF SUPPORTING DOCUMENTATION FOR PRIOR PHASES In the space below please provide a list additional documents attached to support completion of prior phases. Grayling Water Treatment Plant Audit, Trip Report, Training and Retrofits Plan, and associated job cost history reports for energy efficiency work. SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION In the space below please provide a list of additional information submitted for consideration See attached Appendix with list of supporting documentation AEA 15003 Page 26 of 28 7/8/15 Sep 09 15 12:30p City of Grayling Renewable Energy Fund Round IX Grant Application -Heat Projects I SECTION 13 -AUTHORIZED SIGNERS FORM Community/Grantee Name: Regular Election is held: ; Authorized Grant Signer(s): Printed Name Title (907)453-5223 41 ASKA� ENERGY AUTHORITY Term-I Signature I authorize the above person(s} to sign Grant Documents: p.2 I (Must be authorized below by the highest ranking organization/community/municipal official Printed Name Title Term I Grantee Contact Information: Mailing Address: Phone Number: Fax Number: E-mail Address: Federal Tax ID #: Please submit an updated fonn whenever there is a change to the abOve infonnation. AEA 16012 Page 27 of28 7{8/15 Sep 09 15 12:31p City of Grayling (907)453-5223 p.3 Renewable Energy Fund Round IX Grant Application -Heat Projects I. -... A I sA SKA .... -�ENERGY AU OIOftlTY SECTION 14 -ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A.Contact information and resumes of Applicant's Project Manager, Project 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 individuals do not want their resumes posted to the project web site. B.Letters or resolutions demonstrating local support per application form Section 9. C.For projects involving heat: Most recent invoice demonstrating the cost of heating fuel for the building(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 fndicated in the application. Authorizes 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 apptication. Certifies the applicant is In compllance with appl icable federal, state, and locaf, laws including existing credit and federal tax obligations. E.An electronic version of the entire application on CD or other electronic media, per RFA Section 1.7. F.CERTIFICATION I.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 obligations and : that they can indeed commit the entity to these obligations. Print Name Signature Title Date AEA 16012 Page 28 of 1.8 7/X/lS City of Grayling LETTERS OF SUPPORT City of Grayling FUEL INVOICES City of Grayling GOVERNERING BODY RESOLUTION City of Grayling APPENDIX Grayling Heat Recovery Feasibility Study (2015) Grayling Water Treatment Plant Audit Report (2014) Grayling Training and Retrofits Plan Grayling Trip Report (5-4-2014) Grayling W08 Job Cost History Grayling Z46 Job Cost History List of AEA Grants that ANTHC has managed 2009-2014 EXECUTIVE SUMMARY The Grayling power plant and water treatment plant (WTP) were evaluated for heat recovery potential. The total estimated annual heating fuel used by the water treatment plant is approximately 8,004 gallons. The expected annual savings is 6,518 gallons. The simple payback based on a 2015 fuel cost of $3.47/gallon is 17.8 years. The payback is based on a 2015 fuel price of $3.47/gallon and an estimated 2015 project cost of $403, 153. Assuming construction in 2017, the design and construction cost plus 2 years of a 3% escalation rate is $427,705. 1.0 INTRODUCTION The Alaska Native Tribal Health Consortium (ANTHC) reviewed the feasibility of providing recovered heat from the AVEC power plant to the WTP in Grayling. ANTHC also developed a budgetary project cost estimate based on force account construction, including engineering and construction administration costs. The existing WTP is hydronically heated via a fuel-oil boiler and provides heat to the circulating water lines and to the WST. The system was not designed for waste heat and will require the installation of new heat transfer equipment, including a new heat exchanger, new circulating pumps, and controls. This report assumes that space for heat recovery equipment at the power plant will be included in the construction of the power plant, with sufficient space for all necessary controls and heat exchangers. Additional assumptions have been made in the report, including but not limited to the proposed arctic piping route, building heating loads, and flow rates and pressure drops of the heat recovery system. It is anticipated that sizing and routing of arctic pipe, selections of pump and heat exchanger with other design elements will require refinement as the project progresses. Available as-built information was obtained from AVEC along with 2015 power plant electrical loads. End-user annual fuel usage was obtained from a variety of sources, including the City and engineering estimates. When possible, reported fuel consumption was used to validate engineering estimates. 2.0 OVERVIEW The purpose of this study is to provide an estimate of the heat that can be recovered from the AVEC power plant diesel engines and used to offset heating oil consumption at the nearby public 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 75% for a net heating value of 100,000 BTU per gallon. Cost Estimate for Heat Recovery Project Qty Rate 134 126 124 115 124 131 85 108 55 66 71 Labor Civil 100 8 10.0 12,600$ Site Visit 1 1,100$ 1,100$ Mechanical 160 8 16.0 20,160$ Site Visit 2 1,100$ 2,200$ Electrical 100 8 10.0 12,600$ Site Visit 1 1,100$ 1,100$ CAD 140 8 14.0 14,000$ Survey 100 8 10.0 10,900$ Site Visit 1 1,100$ 1,100$ Total Design 70,260$ Total Travel 5,500$ Design + Travel Total hours 15.6 140.0 12.5 0.0 190.0 295.0 50.0 0.0 171.3 62.5 150.0 Mobilization Materials Receiving and Inventory 1 1 1.0 1 1 1 3,400$ Equipment Rental 15 250$ 3,750$ 3,750.00$ Takeoffs 1 1 1.0 1 1 2,550$ Set up Materials Storage/Yard 1 1 1.0 0.5 0.5 1 2,125$ Camp set up 1 1 1.0 1 1 2,550$ Housing Rental 45 200$ 9,000$ 9,000.00$ Marine Jacket 1 50,000$ Cooling sys modifications 3 1 3.0 1 1 1 2 1 16,860$ Pipe & Fittings 1 10,000$ 10,000$ 1,000$ 11,000.00$ HX Installation 1 1 1.0 1 1,310$ Heat Exchanger 1 7,000$ 7,000$ 200$ 7,200.00$ Controls 2 1 2.0 1 2 7,480$ Controls 1 2,000$ 2,000$ 100$ 2,100.00$ Make-up / Expansion Tanks 0.0 Tank 1 3,500$ 3,500$ 800$ 4,300.00$ Insulation Upgrades 1 1 1.0 1 2 2,730$ Insulation 1 600$ 600$ 300$ 900.00$ Heating sys modifications 4 1 6.0 1 1 1 15,420$ Pipe & Fittings 1 5,000$ 5,000$ 800$ 5,800.00$ Controls 1 1 1.5 1 1,860$ Heat Exchanger 1 6,000$ 6,000$ 200$ 6,200.00$ Pump 1 4,500$ 4,500$ 200$ 4,700.00$ Pump 1 2,500$ 2,500$ 200$ 2,700.00$ Controls 1 2,000$ 2,000$ 100$ 2,100.00$ Excavation and Backfill ## of feet 250 200 1.3 1 1 2 1 5,425$ Geotextile 250 800 0.3 1 2 763$ Geotextile 300 5$ 500$ 400$ 900.00$ 2 1/2" Heat Recovery Supply/Return Piping (buried) 500 Feet buried arctic pipe 500 100 5.0 1 1 9,850$ Arctic Pipe & Fittin 500 50$ 25,000$ 8,000$ 33,000.00$ 0.0 1 -$ (Supply & Return lines) Connection and install 1 1 1.0 1 1 1 1 4,110$ BTU Meter 1 3,500$ 3,500$ 350$ 3,850.00$ Programming and interface 1 1 1.0 1 1,260$ Flow meter 1 4,500$ 4,500$ 350$ 4,850.00$ Glycol 2 1 2.0 1 1 4,320$ Glycol 11 675$ 7,425$ 7,425.00$ Literature and References 2 1 2.0 1 2,520$ Publishing 4 500$ 2,000$ 100$ 2,100.00$ Training 1 1 1.0 1 2 2,360$ Preliminary Clean Up 0.0 Final Inspection Punch List 3 1 3.0 1 1 1 11,430$ Final Clean Up 3 1 3.0 1 1 1 9,780$ Pack Up and Crate 1 1 1.0 1 1,310$ Shipping 1 1,000$ 1,000.00$ Financial Close out/ Auditing 1 1 1.0 1 1,260$ As builting 1 1 1.0 1 1,260$ 161,933$ 98,775$ 14,100.00$ 112,875.00$ Design & Design Travel 75,760$ Labor 161,933$ Materials & Freight 112,875$ Subtotal 350,568$ 15% Contingeny 52,585$ All + Contingency 403,153$ 2 years escalation @ 3% / year 24,552$ Subtotal (Grant Requested)427,705$ Project Management 1% ANTHC In-Kind Match 4,277$ Total Project Cost 431,982$ $22,616 17.83 yrsLocalLabor ElectricianLocal OperatorProduction Rate Estimated annual savings No.Cost Ea Total CostEngineer Fixed estimate @ 100 /hr. Fixed estimate @ 109 /hr. Total MatLocal PlumberFixed estimate @ 126 /hr. Total Fixed estimate @ 126 /hr. FreightCrew LeadSuperSimple Payback (without escalation) Grayling Heat Recovery Cost Estimate PlumbershippingBTU Meter install Design WTP Bldg Connection ELEMENT Total Labor Startup and Operator Training. De-Mobe MATERIALS Assumptions: - Local accomodations are available. - Power plant is mostly configured and equiped. - System control can be accomplished w/o a panel. - Crew leader functions will be accomplished by Superentendant, or in lieu of Super. Support Activities Job Clean Up/ Final Inspection Power Plant Modifications Final LABOR Grayling Heat Recovery Cost Estimate MechanicItemOperatorDays (60hr. Week)Materials + Freight 75,760$ Fixed estimate @ 126 /hr. CCompr 3 rehens Grayl Pr City Ju Pr AN 3900 Ambass Ancho sive En For ling W repared For y Of Grayling ly 29, 2014 epared By: NTHC‐DEHE sador Drive, S rage, AK 995 nergy A WTP Suite 301 508 Audit 1 2 Table of Contents PREFACE ........................................................................................................................................................ 2 ACKNOWLEDGMENTS ................................................................................................................................ 3 2. AUDIT AND ANALYSIS BACKGROUND ....................................................................................................... 5 2.1 Program Description ........................................................................................................................... 5 2.2 Audit Description ................................................................................................................................ 6 2.3. Method of Analysis ............................................................................................................................ 6 2.4 Limitations of Study ............................................................................................................................ 8 3. Grayling WTP ............................................................................................................................................ 8 3.1. Building Description ........................................................................................................................... 8 3.2 Predicted Energy Use ........................................................................................................................ 11 3.2.1 Energy Usage / Tariffs ................................................................................................................ 11 3.2.2 Energy Use Index (EUI) ............................................................................................................... 14 3.3 AkWarm© Building Simulation ......................................................................................................... 15 4. ENERGY COST SAVING MEASURES ......................................................................................................... 16 4.1 Summary of Results .......................................................................................................................... 16 4.2 Interactive Effects of Projects ........................................................................................................... 17 5. ENERGY EFFICIENCY ACTION PLAN ......................................................................................................... 22 Appendix A – Energy Audit Report – Project Summary .............................................................................. 23 Appendix B – Actual Fuel Use versus Modeled Fuel Use ............................................................................ 24 PREFACE The Energy Projects Group at the Alaska Native Tribal Health Consortium (ANTHC) prepared this document for The City of Grayling, Alaska. The authors of this report are Carl Remley, Certified Energy Auditor (CEA) and Certified Energy Manager (CEM) and Gavin Dixon. Kevin Ulrich and Martin Wortman also participated in the onsite portion of this audit. The purpose of this report is to provide a comprehensive document of the findings and analysis that resulted from an energy audit conducted in April of 2014 by the Energy Projects Group of ANTHC. This report analyzes historical energy use and identifies costs and savings of recommended energy conservation measures. Discussions of site‐specific concerns, non‐ recommended measures, and energy conservation action plan are also included in this report. This energy audit was conducted using funds from the United States Department of Agriculture Rural Utilities Service as well as the State of Alaska Department of Environmental Conservation. Coordination with the State of Alaska RMW Program and associated RMW for each community has been undertaken to provide maximum accuracy in identifying audits and coordinating potential follow up retrofit activities. In the near future, a representative of ANTHC will be contacting both the City of Grayling and the water treatment plant operator to follow up on the recommendations made in this audit report. A Rural Alaska Village Grant has funded ANTHC to provide the City with assistance in understanding the report and in implementing the recommendations. Funding for 3 implementation of the recommended retrofits is being partially provided for by the above listed funding agencies, as well as the State of Alaska. ACKNOWLEDGMENTS The ANTHC Energy Projects Group gratefully acknowledges the assistance of Water Treatment Plant Operators Joshua Koyukuk and Kyle Anthony, Mayor Shirley Clark, City Administrator Ann Short, and Remote Maintenance Worker Bruce Werba. 1. EXECUTIVE SUMMARY This report was prepared for the City of Grayling. The scope of the audit focused on Grayling WTP. The scope of this report is a comprehensive energy study, which included an analysis of building shell, interior and exterior lighting systems, heating and ventilation systems, water treatment energy use, and plug loads. The total predicted energy cost for the WTP is $79,026 per year. This total compares favorably with the $68,810 actual cost. Electricity represents the largest piece with an annual cost of $50,841 per year. This includes $16,639 paid by the end‐users and $34,202 paid by the Power Cost Equalization (PCE) program through the State of Alaska. The WTP including the circulation loops and water storage tank was modeled to spend $28,083 for #1 heating oil. These predictions are based on the electricity and fuel prices at the time of the audit. The State of Alaska PCE program provides a subsidy to rural communities across the state to lower the electricity costs and make energy in rural Alaska affordable. In Grayling, the cost of electricity without PCE is $0.55/KWH, and the cost of electricity with PCE is $0.18/KWH. Table 1.1 below summarizes the energy efficiency measures analyzed for the Grayling WTP. Listed are the estimates of the annual savings, installed costs, and two different financial measures of investment return. Table 1.1 PRIORITY LIST – ENERGY EFFICIENCY MEASURES Rank Feature Improvement Description Annual Energy Savings Installed Cost Savings to Investment Ratio, SIR1 Simple Payback (Years)2 1 Thermostat – Reprogram existing thermostat Reset Thermostat in South Lift Station #1 to 50 Degrees $998 $200 58.59 0.2 2 Lighting – Reduce lighting cost in North Lift Station Teach operators that lift station lighting should only be on when lift station is occupied. $420 $110 23.62 0.3 3 Thermostat – Install new thermostat in WTP and set to 50 degrees. Add remote thermostat in the North Lift Station and set it at 50 degrees $1,540 $1,000 18.09 0.6 4 Table 1.1 PRIORITY LIST – ENERGY EFFICIENCY MEASURES Rank Feature Improvement Description Annual Energy Savings Installed Cost Savings to Investment Ratio, SIR1 Simple Payback (Years)2 4 Lighting – Reduce lighting cost in South Lift Station. Relocate light switch for south lift station from outside building to inside and train to only use lights when building is occupied. $420 $200 12.99 0.5 5 Thermostat – Combined Retrofit: Intake Gallery Space Heating Add remote thermostat in the Intake Gallery and set at 50 degrees $1,748 $2,000 10.27 1.1 6 Other Electrical – Identify and repair leaks in distribution piping to reduce pumping electrical usage Find and repair leaks to reduce water treatment and pumping needs. $7,112 $6,000 9.98 0.8 7 Lighting - Replace the Gallery exterior metal halide light fixture with LED wall pack. Replace with energy- efficient LED lighting and a photocell light sensor. $170 $500 4.96 2.9 8 Lighting – Replace WTP interior fluorescent lighting with LED replacement bulbs. Replace with energy- efficient LED lighting and eliminate ballasts. $1,521 Plus $200 Maintenance Savings $6,000 4.07 3.5 9 Setback Thermostat: Water Treatment Plant Install programmable thermostat that can reset the temperature the building is heated to when unoccupied to 60 degrees, such as at nights and on weekends. $897 $4,000 3.03 4.5 10 Walls: Broken window Eliminate the broken window by installing rigid foam board insulation with additional siding. $36 $365 2.31 10.2 11 Lighting - Replace interior fluorescent lighting in WTP with LED replacement bulbs. Replace with energy- efficient LED lighting and remove ballasts. $66 $250 1.62 3.8 12 Lighting – Replace exterior fluorescent lighting at WTP with LED wall packs. Replace with energy- efficient LED wall pack and a photocell light sensor. $11 plus $10 Maintenance Savings $200 1.53 9.7 13 Window: WTP Single Pane Window Replace existing window with new vinyl window $89 $1,334 1.16 15.0 14 HVAC And DHW Add a Recovered Heat System from the AVEC Power Plant to the WTP $16,394 plus $1,000 Maintenance Savings $375,000 1.10 21.6 TOTAL, all measures $31,422 plus $1,210 Maintenance Savings $397,160 1.44 12.2 5 Table Notes: 1 Savings to Investment Ratio (SIR) is a life‐cycle cost measure calculated by dividing the total savings over the life of a project (expressed in today’s dollars) by its investment costs. The SIR is an indication of the profitability of a measure; the higher the SIR, the more profitable the project. An SIR greater than 1.0 indicates a cost‐effective project (i.e. more savings than cost). Remember that this profitability is based on the position of that Energy Efficiency Measure (EEM) in the overall list and assumes that the measures above it are implemented first. 2 Simple Payback (SP) is a measure of the length of time required for the savings from an EEM to payback the investment cost, not counting interest on the investment and any future changes in energy prices. It is calculated by dividing the investment cost by the expected first‐year savings of the EEM. With all of these energy efficiency measures in place, the annual utility cost can be reduced by $31,422 per year, or 39.8% of the buildings’ total energy costs. These measures are estimated to cost $397,160, for an overall simple payback period of 12.2 years. Table 1.2 below is a breakdown of the annual energy cost across various energy end use types, such as Space Heating and Water Heating. The first row in the table shows the breakdown for the building as it is now. The second row shows the expected breakdown of energy cost for the building assuming all of the retrofits in this report are implemented. Finally, the last row shows the annual energy savings that will be achieved from the retrofits. Table 1.2 Annual Energy Cost Estimate Description Space Heating Space Cooling Water Heating Ventilation Fans Lighting Other Electrical Raw Water Heat Add Water Circulation Heat Tank Heat Total Cost Existing Building $14,986 $0 $0 $0 $4,641 $33,825 $1,772 $16,874 $6,869 $79,026 With Proposed Retrofits $8,399 $0 $0 $0 $1,698 $26,774 $743 $7,081 $2,850 $47,605 Savings $6,587 $0 $0 $0 $2,944 $7,051 $1,028 $9,793 $4,019 $31,422 2. AUDIT AND ANALYSIS BACKGROUND 2.1 Program Description This audit included services to identify, develop, and evaluate energy efficiency measures at the Grayling WTP, Intake Gallery, and both the North and South Lift Stations. The scope of this project included evaluating building shell, lighting and other electrical systems, water process loads, heating and ventilating equipment, motors and pumps. Measures were analyzed based on life‐cycle‐cost techniques, which include the initial cost of the equipment, life of the equipment, annual energy cost, annual maintenance cost, and a discount rate of 3.0%/year in excess of general inflation. 6 2.2 Audit Description Preliminary audit information was gathered in preparation for the site survey. The site survey provides critical information in deciphering where energy is used and what opportunities exist within a building. The entire site was surveyed to inventory the following to gain an understanding of how each building operates: • Building envelope (roof, windows, etc.) • Heating, ventilation, and air conditioning equipment (HVAC) • Lighting systems and controls • Building‐specific equipment Water consumption, treatment & disposal The building site visit was performed to survey all major building components and systems. The site visit included detailed inspection of energy consuming components. Summary of building occupancy schedules, operating and maintenance practices, and energy management programs provided by the building manager were collected along with the system and components to determine a more accurate impact on energy consumption. Details collected from Grayling WTP and associated facilities enable a model of the building’s energy usage to be developed, highlighting the building’s total energy consumption, energy consumption by specific building component, and equivalent energy cost. The analysis involves distinguishing the different fuels used on site, and analyzing their consumption in different activity areas of the building. Grayling WTP is classified as being made up of the following activity areas: 1) Water Treatment Plant: 1,536 square feet In addition, the methodology involves taking into account a wide range of factors specific to the building. These factors are used in the construction of the model of energy used. The factors include: • Occupancy hours • Local climate conditions • Prices paid for energy 2.3. Method of Analysis Data collected was processed using AkWarm© Energy Use Software to estimate energy savings for each of the proposed energy efficiency measures (EEMs). The recommendations focus on the building envelope; heating and ventilating; lighting, plug load, water treatment process loads, and other electrical improvements; and motor and pump systems that will reduce annual energy consumption. EEMs are evaluated based on building use and processes, local climate conditions, building construction type, function, operational schedule, existing conditions, and foreseen future 7 plans. Energy savings are calculated based on industry standard methods and engineering estimations. Our analysis provides a number of tools for assessing the cost effectiveness of various improvement options. These tools utilize Life‐Cycle Costing, which is defined in this context as a method of cost analysis that estimates the total cost of a project over the period of time that includes both the construction cost and ongoing maintenance and operating costs. Savings to Investment Ratio (SIR) = Savings divided by Investment Savings includes the total discounted dollar savings considered over the life of the improvement. When these savings are added up, changes in future fuel prices as projected by the Department of Energy are included. Future savings are discounted to the present to account for the time‐value of money (i.e. money’s ability to earn interest over time). The Investment in the SIR calculation includes the labor and materials required to install the measure. An SIR value of at least 1.0 indicates that the project is cost‐effective—total savings exceed the investment costs. Simple payback is a cost analysis method whereby the investment cost of a project is divided by the first year’s savings of the project to give the number of years required to recover the cost of the investment. This may be compared to the expected time before replacement of the system or component will be required. For example, if a boiler costs $12,000 and results in a savings of $1,000 in the first year, the payback time is 12 years. If the boiler has an expected life to replacement of 10 years, it would not be financially viable to make the investment since the payback period of 12 years is greater than the project life. The Simple Payback calculation does not consider likely increases in future annual savings due to energy price increases. As an offsetting simplification, simple payback does not consider the need to earn interest on the investment (i.e. it does not consider the time‐value of money). Because of these simplifications, the SIR figure is considered to be a better financial investment indicator than the Simple Payback measure. Measures are implemented in order of cost‐effectiveness. The program first calculates individual SIRs, and ranks all measures by SIR, higher SIRs at the top of the list. An individual measure must have an individual SIR>=1 to make the cut. Next the building is modified and re‐ simulated with the highest ranked measure included. Now all remaining measures are re‐ evaluated and ranked, and the next most cost‐effective measure is implemented. AkWarm goes through this iterative process until all appropriate measures have been evaluated and installed. It is important to note that the savings for each recommendation is calculated based on implementing the most cost effective measure first, and then cycling through the list to find the next most cost effective measure. Implementation of more than one EEM often affects the savings of other EEMs. The savings may in some cases be relatively higher if an individual EEM is implemented in lieu of multiple recommended EEMs. For example implementing a reduced operating schedule for inefficient lighting will result in relatively high savings. Implementing a reduced operating schedule for newly installed efficient lighting will result in lower relative 8 savings, because the efficient lighting system uses less energy during each hour of operation. If multiple EEM’s are recommended to be implemented, AkWarm calculates the combined savings appropriately. Cost savings are calculated based on estimated initial costs for each measure. Installation costs include labor and equipment to estimate the full up‐front investment required to implement a change. Costs are derived from Means Cost Data, industry publications, and local contractors and equipment suppliers. 2.4 Limitations of Study All results are dependent on the quality of input data provided, and can only act as an approximation. In some instances, several methods may achieve the identified savings. This report is not intended as a final design document. The design professional or other persons following the recommendations shall accept responsibility and liability for the results. 3. Grayling WTP 3.1. Building Description The 1,536 square foot Grayling WTP was constructed in 1977, with a normal occupancy of one person, the operator. The building is occupied approximately four hours per day, seven days per week. The Grayling WTP houses a circulating water system with three loops that provide water to the residents of the community as well as a supply line that provides water to the school. One loop services the north end of town and is approximately 1850 feet long. Another loop serves the south side of town and is approximately 2000 feet long. A third loop serves the Hill Street area and is approximately 1800 feet long. There is also a supply line that feeds water to the school, which is approximately 125 ft. The raw water is treated with two pressure sand filters. A boost pump is used to maintain system pressure . Two additional water filters treat the water after they are through the pressure sand filters. The water is injected with chlorine prior to making a run up a hill to the 60,000 gallon water storage tank. The water system also has an intake gallery. The intake gallery has two pumps to move the water from the feeder creek to the WTP. One of the two pumps is constantly running, though for about a month both pumps were operating. This was necessary due to system leaks. The sewer system has a force main pipe that goes through two lift stations and is forced to the sewage lagoon about a half‐mile away. 9 Description of Building Shell The exterior walls are four inch panel construction with 3.5” polyurethane insulation. There is 1504 square feet of wall space and the insulation has some damage due to water and ice formation. The 1,619 square foot roof of the building is a cathedral style ceiling. The roof is standard 24 inch panel construction and 3.5” of polyurethane insulation. The floor and foundation of the building are 4 inch concrete slab with no insulation. There is 1536 square feet of floor space. There are multiple windows in various conditions throughout the building. There are two window spaces with plywood covering the opening and no insulation. This totals about 14 square feet. There are four window spaces with a single pane of Lexan or glass present that total about 21 square feet. There are four window spaces with two panes of either glass or Lexan that total about 23 square feet. All of the windows are damaged. There is only one entrance into the water plant with a metal door with no insulation or windows. The door has worn its hinges down and hangs slightly off center from the door frame. Description of Heating Plants The Heating Plants used in the building are: Weil McLean Nameplate Information: BL 676‐WS Fuel Type: #1 Oil Input Rating: 300,000 BTU/Hour Steady State Efficiency: 75 % Idle Loss: 2 % Heat Distribution Type: Glycol Boiler Operation: Sep ‐ Jun Notes: Boilers are very old Weil McLean Fuel Type: #1 Oil Input Rating: 300,000 BTU/Hour Steady State Efficiency: 75 % Idle Loss: 2 % Heat Distribution Type: Glycol Boiler Operation: Sep – Jun Gallery Electric Heater Nameplate Information: 5000 watts made by Markel Fuel Type: Electricity 10 Input Rating: 17,000 BTU/Hour Steady State Efficiency: 100 % Idle Loss: 0 % Heat Distribution Type: Air Notes: No remote thermostat room temp was 70 South Lift Station #1 Electric Heater Fuel Type: Electricity Input Rating: 6,100 BTU/Hour Steady State Efficiency: 100 % Idle Loss: 0 % Heat Distribution Type: Air North Lift Station #2 Fuel Type: Electricity Input Rating: 5,100 BTU/Hour Steady State Efficiency: 100 % Idle Loss: 0 % Heat Distribution Type: Air Space Heating Distribution Systems The building is heated with three unit heaters with an output of approximately 10,000 BTU/Hour. The heaters had thermostats attached to them but only one was operational. This was set to 70 deg. F. There are electric heaters present in the gallery and each lift station. The gallery heater has been left running during unoccupied periods, and each heater is also run when the space is occupied. Lighting There are 23 fixtures with four T‐12 fluorescent light bulbs in each fixture and 2 fixtures with two T‐12 fluorescent light bulbs in each fixture present in the interior of the WTP. Of all the total light bulbs, approximately 50% of the bulbs were in operation and 50% of the bulbs had burned out past their useful lives. The WTP has a fluorescent 20W CFL light bulb on the exterior of the building. Additionally, there are MH 70W lights in each of the three additional buildings apart from the WTP. Plug Loads The WTP has a variety of power tools, a telephone, an electric dryer, and some other miscellaneous loads that require a plug into an electrical outlet. The use of these items is infrequent and consumes a small portion of the total energy demand of the building. Major Equipment There are two raw water pumps that use approximately 2,984 watts each while in operation. These pumps are located in the gallery. One of these pumps is constantly running. 11 Each loop has two circulation pumps that use approximately 1,119 watts each while in operation. One circulation pump is constantly running from January through July and October through December for a total of ten months per year. With three loops, there are six pumps total with three in constant operation during these ten months. The line to the water storage tank has a circulation pump that uses approximately 179 watts while in operation and runs constantly for ten months per year. It is not used in August or September. Chlorine is injected into the system by a 60 watt LMI pump that runs whenever the raw water pump runs. The South Lift Station has a pump that consumes approximately 1,650 watts. This runs constantly throughout the year. This pump forces the sewage to the sewage lagoon outside of town. The North Lift Station has a pump that consumes approximately 2,300 watts. This runs constantly throughout the year. The pump forces sewage too move through the force main to the South Lift Station and on to the sewage lagoon. 3.2 Predicted Energy Use 3.2.1 Energy Usage / Tariffs The electric usage profile charts (below) represents the predicted electrical usage for the four facilities. The model used to predict usage was calibrated to approximately match actual usage. The electric utility measures consumption in kilowatt‐hours (KWH). One KWH of usage is equivalent to 1,000 watts running for one hour. The basic usage charges are shown as generation service and delivery charges along with several non‐utility generation charges. The fuel oil usage profile shows the fuel oil usage for the building. Fuel oil consumption is measured in gallons. One gallon of #1 Fuel Oil provides approximately 132,000 BTUs of energy. The following is a list of the utility companies providing energy to the building and the class of service provided: Electricity: AVEC‐Grayling ‐ Commercial ‐ Sm The average cost for each type of fuel used in this building is shown below in Table 3.1. This figure includes all surcharges and utility customer charges: Table 3.1 – Average Energy Cost Description Average Energy Cost Electricity $ 0.55/kWh #1 Oil $ 4.10/gallons 12 3.2.1.1 Total Energy Use and Cost Breakdown At current rates, the unsubsidized cost of energy for the WTP and associated facilities is $79,026 for electricity and fuel costs. Figure 3.1 below reflects the estimated distribution of costs across the primary end uses of energy based on the AkWarm© computer simulation. Comparing the “Retrofit” bar in the figure to the “Existing” bar shows the potential savings from implementing all of the energy efficiency measures shown in this report. Figure 3.1 Annual Energy Costs by End Use Figure 3.2 below shows how the annual energy cost of the building splits between the different fuels used by the building. The “Existing” bar shows the breakdown for the building as it is now; the “Retrofit” bar shows the predicted costs if all of the energy efficiency measures in this report are implemented. $0 $20,000 $40,000 $60,000 $80,000 Existing Retrofit Service Fees Tank Heat Water Circulation Heat Raw Water Heat Add Other Electrical Lighting Space Heating Annual Energy Costs by End Use 13 Figure 3.2 Annual Energy Costs by Fuel Type Figure 3.3 below addresses only Space Heating costs. The figure shows how each heat loss component contributes to those costs; for example, the figure shows how much annual space heating cost is caused by the heat loss through the Walls/Doors. For each component, the space heating cost for the Existing building is shown (blue bar) and the space heating cost assuming all retrofits are implemented (yellow bar) are shown. Figure 3.3 Annual Space Heating Cost by Component The tables below show AkWarm’s estimate of the monthly fuel use for each of the fuels used in the building. For each fuel, the fuel use is broken down across the energy end uses. Note, in the tables below “DHW” refers to Domestic Hot Water heating. Recovered Heat #1 Fuel Oil Electricity 14 Electrical Consumption (KWH) Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Space_Heating 4163 3190 2744 1774 1052 2 2 7 28 1909 2817 4094 DHW 0 0 0 0 0 0 0 0 0 0 0 0 Ventilation_Fans 0 0 0 0 0 0 0 0 0 0 0 0 Lighting 725 661 725 702 725 647 669 669 702 725 702 725 Other_Electrical 5650 5149 5650 5468 5650 5468 5650 2882 2789 5650 5468 5650 Raw_Water_Heat_Add 5 4 5 5 5 0 0 0 0 5 5 5 Water_Circulation_Heat 45 41 46 47 51 0 0 0 0 48 44 45 Tank_Heat 31 24 21 9 0 0 0 0 0 11 21 30 Fuel Oil #1 Consumption (Gallons) Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Space_Heating 146 103 67 7 0 8 8 28 95 16 80 143 DHW 0 0 0 0 0 0 0 0 0 0 0 0 Raw_Water_Heat_Add 53 49 54 54 56 0 0 0 0 55 52 53 Water_Circulation_Heat 508 465 516 510 536 0 0 0 0 525 498 508 Tank_Heat 349 273 230 103 0 0 0 0 0 118 239 344 3.2.2 Energy Use Index (EUI) Energy Use Index (EUI) is a measure of a building’s annual energy utilization per square foot of building. This calculation is completed by converting all utility usage consumed by a building for one year, to British Thermal Units (Btu) or kBtu, and dividing this number by the building square footage. EUI is a good measure of a building’s energy use and is utilized regularly for comparison of energy performance for similar building types. The Oak Ridge National Laboratory (ORNL) Buildings Technology Center under a contract with the U.S. Department of Energy maintains a Benchmarking Building Energy Performance Program. The ORNL website determines how a building’s energy use compares with similar facilities throughout the U.S. and in a specific region or state. Source use differs from site usage when comparing a building’s energy consumption with the national average. Site energy use is the energy consumed by the building at the building site only. Source energy use includes the site energy use as well as all of the losses to create and distribute the energy to the building. Source energy represents the total amount of raw fuel that is required to operate the building. It incorporates all transmission, delivery, and production losses, which allows for a complete assessment of energy efficiency in a building. The type of utility purchased has a substantial impact on the source energy use of a building. The EPA has determined that source energy is the most comparable unit for evaluation purposes and overall global impact. Both the site and source EUI ratings for the building are provided to understand and compare the differences in energy use. The site and source EUIs for this building are calculated as follows. (See Table 3.4 for details): Building Site EUI = (Electric Usage in kBtu + Fuel Oil Usage in kBtu) Building Square Footage Building Source EUI = (Electric Usage in kBtu X SS Ratio + Fuel Oil Usage in kBtu X SS Ratio) Building Square Footage where “SS Ratio” is the Source Energy to Site Energy ratio for the particular fuel. 15 Table 3.4 Grayling WTP EUI Calculations Energy Type Building Fuel Use per Year Site Energy Use per Year, kBTU Source/Site Ratio Source Energy Use per Year, kBTU Electricity 91,836 KWH 313,437 3.340 1,046,880 #1 Oil 6,850 gallons 904,144 1.010 913,186 Hot Water Dist Heat 13.15 million Btu 13,149 1.280 16,831 Total 1,230,730 1,976,896 BUILDING AREA 1,536 Square Feet BUILDING SITE EUI 801 kBTU/Ft²/Yr BUILDING SOURCE EUI 1,287 kBTU/Ft²/Yr * Site ‐ Source Ratio data is provided by the Energy Star Performance Rating Methodology for Incorporating Source Energy Use document issued March 2011. 3.3 AkWarm© Building Simulation An accurate model of the building performance can be created by simulating the thermal performance of the walls, roof, windows and floors of the building. The heating and ventilation system and central plant are modeled as well, accounting for the outside air ventilation required by the building. The model uses local weather data and is trued up to historical energy use to ensure its accuracy. The model can be used now and in the future to measure the utility bill impact of all types of energy projects, including improving building insulation, modifying glazing, changing air handler schedules, increasing heat recovery, installing high efficiency boilers, using variable air volume air handlers, adjusting outside air ventilation and adding cogeneration systems. For the purposes of this study, the Grayling WTP and associated facilities were modeled using AkWarm© energy use software to establish a baseline space heating energy usage. Climate data from Grayling was used for analysis. From this, the model was be calibrated to predict the impact of theoretical energy savings measures. Once annual energy savings from a particular measure were predicted and the initial capital cost was estimated, payback scenarios were approximated. Limitations of AkWarm© Models • The model is based on typical mean year weather data for Grayling. This data represents the average ambient weather profile as observed over approximately 30 years. As such, the gas and electric profiles generated will not likely compare perfectly with actual energy billing information from any single year. This is especially true for years with extreme warm or cold periods, or even years with unexpectedly moderate weather. • The heating and ventilation load model is a simple two‐zone model consisting of the building’s core interior spaces and the building’s perimeter spaces. This simplified approach loses accuracy for buildings that have large variations in cooling/heating loads across different parts of the building. 16 The energy balances shown in Section 3.1 were derived from the output generated by the AkWarm© simulations. 4. ENERGY COST SAVING MEASURES 4.1 Summary of Results The energy saving measures are summarized in Table 4.1. Please refer to the individual measure descriptions later in this report for more detail. Table 4.1 Grayling WTP, Grayling, Alaska PRIORITY LIST – ENERGY EFFICIENCY MEASURES Rank Feature Improvement Description Annual Energy Savings Installed Cost Savings to Investment Ratio, SIR Simple Payback (Years) 1 Thermostat – Reprogram existing thermostat Reset Thermostat in South Lift Station #1 to 50 Degrees $998 $200 58.59 0.2 2 Lighting – Reduce lighting cost in North Lift Station Teach operators that lift station lighting should only be on when lift station is occupied. $420 $110 23.62 0.3 3 Thermostat – Install new thermostat in WTP and set to 50 degrees. Add remote thermostat in the North Lift Station and set it at 50 degrees $1,540 $1,000 18.09 0.6 4 Lighting – Reduce lighting cost in South Lift Station. Relocate light switch for south lift station from outside building to inside and train to only use lights when building is occupied. $420 $200 12.99 0.5 5 Thermostat – Combined Retrofit: Intake Gallery Space Heating Add remote thermostat in the Intake Gallery and set at 50 degrees $1,748 $2,000 10.27 1.1 6 Other Electrical – Identify and repair leaks in distribution piping to reduce pumping electrical usage Find and repair leaks to reduce water treatment and pumping needs. $7,112 $6,000 9.98 0.8 7 Lighting - Replace the Gallery exterior metal halide light fixture with LED wall pack. Replace with energy- efficient LED lighting and a photocell light sensor. $170 $500 4.96 2.9 8 Lighting – Replace WTP interior fluorescent lighting with LED replacement bulbs. Replace with energy- efficient LED lighting and eliminate ballasts. $1,521 Plus $200 Maintenance Savings $6,000 4.07 3.5 17 Table 4.1 Grayling WTP, Grayling, Alaska PRIORITY LIST – ENERGY EFFICIENCY MEASURES Rank Feature Improvement Description Annual Energy Savings Installed Cost Savings to Investment Ratio, SIR Simple Payback (Years) 9 Setback Thermostat: Water Treatment Plant Install programmable thermostat that can reset the temperature the building is heated to when unoccupied to 60 degrees, such as at nights and on weekends. $897 $4,000 3.03 4.5 10 Walls: Broken window Eliminate the broken window by installing rigid foam board insulation with additional siding. $36 $365 2.31 10.2 11 Lighting - Replace interior fluorescent lighting in WTP with LED replacement bulbs. Replace with energy- efficient LED lighting and remove ballasts. $66 $250 1.62 3.8 12 Lighting – Replace exterior fluorescent lighting at WTP with LED wall packs. Replace with energy- efficient LED wall pack and a photocell light sensor. $11 plus $10 Maintenance Savings $200 1.53 9.7 13 Window: WTP Single Pane Window Replace existing window with new vinyl window $89 $1,334 1.16 15.0 14 HVAC And DHW Add a Recovered Heat System from the AVEC Power Plant to the WTP $16,394 plus $1,000 Maintenance Savings $375,000 1.10 21.6 TOTAL, all measures $31,422 plus $1,210 Maintenance Savings $397,160 1.44 12.2 4.2 Interactive Effects of Projects The savings for a particular measure are calculated assuming all recommended EEMs coming before that measure in the list are implemented. If some EEMs are not implemented, savings for the remaining EEMs will be affected. For example, if ceiling insulation is not added, then savings from a project to replace the heating system will be increased, because the heating system for the building supplies a larger load. In general, all projects are evaluated sequentially so energy savings associated with one EEM would not also be attributed to another EEM. By modeling the recommended project sequentially, the analysis accounts for interactive affects among the EEMs and does not “double count” savings. Interior lighting, plug loads, facility equipment, and occupants generate heat within the building. Lighting‐efficiency improvements are anticipated to slightly increase heating requirements. Heating penalties and cooling benefits were included in the lighting project analysis. 4.3 Building Shell Measures 18 4.3.1 Insulation Measures 4.3.2 Window Measures 4.4 Mechanical Equipment Measures 4.4.1 Heating Measure Rank Location Existing Type/R‐Value Recommendation Type/R‐Value 10 Windowl: WTP Boarded Window Area Window Type: Broken, no glass Install rigid foam board insulation with additional siding to eliminate broken window. Installation Cost $365 Estimated Life of Measure (yrs)30 Energy Savings (/yr) $36 Breakeven Cost $846 Savings‐to‐Investment Ratio 2.3 Simple Payback yrs 10 Auditors Notes: There were window spaces with no window and a sheet of un‐insulated plywood covering the space. Consider replacing this with R‐25 rigid foam board and T1‐11 siding or equivalent. Rank Location Size/Type, Condition Recommendation 13 Window: WTP Single Pane Window Glass: Single, 1/8" Acrylic/Polycarbonate Frame: Wood\Vinyl Spacing Between Layers: Half Inch Gas Fill Type: Air Modeled U‐Value: 0.87 Solar Heat Gain Coefficient including Window Coverings: 0.51 Replace existing window with better double pane vinyl window Installation Cost $1,334 Estimated Life of Measure (yrs)20 Energy Savings (/yr) $89 Breakeven Cost $1,544 Savings‐to‐Investment Ratio 1.2 Simple Payback yrs 15 Auditors Notes: The current windows are damaged, single pane, and some have Lexan sheets in place of glass. Consider replacing all these windows with U‐0.22 vinyl window. Rank Recommendation 14 Add a Recovered Heat System from the AVEC Power Plant to the WTP Installation Cost $375,000 Estimated Life of Measure (yrs)30 Energy Savings (/yr) $16,394 Maintenance Savings (/yr) $1,000 Breakeven Cost $412,589 Savings‐to‐Investment Ratio 1.1 Simple Payback yrs 22 Auditors Notes: The AVEC plant is approximately 200ft. from the WTP building. AVEC uses a Detroit Diesel Series 60 generator that could be outfitted with marine jacket manifold to increase available recovered heat to supply the WTP. 19 4.4.3 Night Setback Thermostat Measure 4.5 Electrical & Appliance Measures 4.5.1 Lighting Measures The goal of this section is to present any lighting energy conservation measures that may also be cost beneficial. It should be noted that replacing current bulbs with more energy‐efficient equivalents will have a small effect on the building heating loads. The building heating load will see a small increase, as the more energy efficient bulbs give off less heat. 4.5.1a Lighting Measures – Replace Existing Fixtures/Bulbs Rank Building Space Recommendation 9 Water Treatment Plant Implement a Heating Temperature Unoccupied Setback to 60.0 deg F for the Water Treatment Plant. Installation Cost $4,000 Estimated Life of Measure (yrs)15 Energy Savings (/yr) $897 Breakeven Cost $12,116 Savings‐to‐Investment Ratio 3.0 Simple Payback yrs 4 Auditors Notes: Most heaters are set to 70 deg. F for all the time. Reducing the heat load by lowering the temperature during unoccupied times can lower the heat demand and the energy costs. This can be done with the installation of a setback thermostat that is programmed to reduce the call for heat on nights and weekends when the facility is unoccupied. Includes the labor hours of an electrician and materials. Rank Location Existing Condition Recommendation 2 North Lift Station Interior Lighting MH 70 Watt Magnetic with Manual Switching Improve controls. Installation Cost $110 Estimated Life of Measure (yrs)7 Energy Savings (/yr) $420 Breakeven Cost $2,598 Savings‐to‐Investment Ratio 23.6 Simple Payback yrs 0 Auditors Notes: Train operators to utilize existing switches to only use North Lift Station #2 interior lighting when the lift station is occupied. Rank Location Existing Condition Recommendation 4 South Lift Station Interior Lighting MH 70 Watt Magnetic with Manual Switching Relocate light switch from outside the building to inside and train the operators to only use the light when occupying the building. Installation Cost $200 Estimated Life of Measure (yrs)7 Energy Savings (/yr) $420 Breakeven Cost $2,598 Savings‐to‐Investment Ratio 13.0 Simple Payback yrs 0 Auditors Notes: Train operators to utilize existing switches to only use North Lift Station #2 interior lighting when the lift station is occupied. 20 Rank Location Existing Condition Recommendation 7 Exterior MH Fixture at Gallery MH 70 Watt Magnetic with Manual Switching Replace with energy‐efficient LED wall pack lighting and a photocell light sensor. Installation Cost $500 Estimated Life of Measure (yrs)20 Energy Savings (/yr) $170 Breakeven Cost $2,482 Savings‐to‐Investment Ratio 5.0 Simple Payback yrs 3 Auditors Notes: Replace with an 17 watt LED wall pack with photocell control. Rank Location Existing Condition Recommendation 8 WTP 4 Lamp Fluorescent 23 FLUOR (4) T12 4' F40T12 40W Standard fixtures with energy efficient magnetic ballasts Replace with energy‐efficient LED lighting and a occupancy sensor Installation Cost $6,000 Estimated Life of Measure (yrs)20 Energy Savings (/yr) $1,521 Maintenance Savings (/yr) $200 Breakeven Cost $24,428 Savings‐to‐Investment Ratio 4.1 Simple Payback yrs 3 Auditors Notes: Replace fluorescent lighting with direct wired 17 watt replacement LED bulbs. Remove the old fluorescent ballast and light bulbs. This assumes a local installation. Rank Location Existing Condition Recommendation 11 WTP 2 Lamp Fluorescent 2 FLUOR (2) T12 4' F40T12 40W Standard energy efficient magnetic ballasts. Replace with energy‐efficient LED lighting and a occupancy sensor. Installation Cost $250 Estimated Life of Measure (yrs)7 Energy Savings (/yr) $66 Breakeven Cost $405 Savings‐to‐Investment Ratio 1.6 Simple Payback yrs 4 Auditors Notes: Replace fluorescent lighting with direct wired 17 watt replacement LED bulbs. Remove the old fluorescent ballast and light bulbs. This assumes a local installation. Rank Location Existing Condition Recommendation 12 Exterior Fluorescent Fixture on WTP FLUOR CFL, Spiral 20 W with Manual Switching Replace with energy‐efficient LED wall pack lighting and a photocell light sensor. Installation Cost $200 Estimated Life of Measure (yrs)20 Energy Savings (/yr) $11 Maintenance Savings (/yr) $10 Breakeven Cost $305 Savings‐to‐Investment Ratio 1.5 Simple Payback yrs 10 Auditors Notes: Replace with LED 17W exterior wall pack with a photocell. The photocell will automatically cause the light to turn on and off based on the amount of sunlight. 21 4.5.6 Other Measures Rank Location Description of Existing Efficiency Recommendation 1 South Lift Station #1 Electric Heater Reset Thermostat in South Lift Station #1 to 50 Degrees Installation Cost $200 Estimated Life of Measure (yrs)15 Energy Savings (/yr) $998 Breakeven Cost $11,718 Savings‐to‐Investment Ratio 58.6 Simple Payback yrs 0 Auditors Notes: Since the lift station is largely unoccupied, it does not need to be heated to 70 deg. F. Setting the thermostat to 50 deg. F will reduce heating demand and costs. Rank Location Description of Existing Efficiency Recommendation 3 North Lift Station #2 Electric Heater Add remote thermostat set at 50 degrees Installation Cost $1,000 Estimated Life of Measure (yrs)15 Energy Savings (/yr) $1,540 Breakeven Cost $18,088 Savings‐to‐Investment Ratio 18.1 Simple Payback yrs 1 Auditors Notes: Since the lift station is largely unoccupied, it does not need to be heated to 70 deg. F. Adding a remote sensor thermostat and setting the thermostat to 50 deg. F will reduce heating demand and costs. Rank Location Description of Existing Efficiency Recommendation 5 Gallery Space Heating Load Add remote thermostat set at 50 degrees Installation Cost $2,000 Estimated Life of Measure (yrs)15 Energy Savings (/yr) $1,748 Breakeven Cost $20,536 Savings‐to‐Investment Ratio 10.3 Simple Payback yrs 1 Auditors Notes: Since the gallery is largely unoccupied, it does not need to be heated to 70 deg. F. Adding a thermostat and setting the thermostat to 50 deg. F will reduce heating demand and costs. Rank Location Description of Existing Efficiency Recommendation 6 Gallery Pump & Raw Water Booster Pump Raw Water Booster Pumps with Manual Switching Find and repair distribution system leaks Installation Cost $6,000 Estimated Life of Measure (yrs)10 Energy Savings (/yr) $7,112 Breakeven Cost $59,894 Savings‐to‐Investment Ratio 10.0 Simple Payback yrs 1 Auditors Notes: System in‐ground water leaks are resulting in the need to make water at the rate of 19 GPM 24 hours per day 365 days per year. This is a consumption rate of 148 gallons per person per day based on a population of 188 people. It should be in the range of 30 to 70 gallons per person per day. Find and repair system leaks. 22 5. ENERGY EFFICIENCY ACTION PLAN Through inspection of the energy‐using equipment on‐site and discussions with site facilities personnel, this energy audit has identified several energy‐saving measures. The measures will reduce the amount of fuel burned and electricity used at the site. The projects will not degrade the performance of the building and, in some cases, will improve it. Several types of EEMs can be implemented immediately by building staff, and others will require various amounts of lead time for engineering and equipment acquisition. In some cases, there are logical advantages to implementing EEMs concurrently. For example, if the same electrical contractor is used to install both lighting equipment and motors, implementation of these measures should be scheduled to occur simultaneously. In the near future, a representative of ANTHC will be contacting both the City of Grayling and the water plant operator to follow‐up on the recommendations made in this audit report. A Rural Alaska Village Grant has funded ANTHC to provide the City with assistance in understanding the report and implementing the recommendations. 23 APPENDICES Appendix A – Energy Audit Report – Project Summary ENERGY AUDIT REPORT – PROJECT SUMMARY General Project Information PROJECT INFORMATION AUDITOR INFORMATION Building: Grayling WTP Auditor Company: ANTHC‐DEHE Address: PO Box 89 Auditor Name: Carl Remley and Kevin Ulrich City: Grayling Auditor Address: 3900 Ambassador Drive, Suite 301 Anchorage, AK 99508 Client Name: Joshua Koyukuk & Kyle Anthony Client Address: PO Box 89 Grayling, AK 99590 Auditor Phone: (907) 729‐3543 Auditor FAX: Client Phone: (907) 453‐5131 Auditor Comment: Client FAX: Design Data Building Area: 1,536 square feet Design Space Heating Load: Design Loss at Space: 31,600 Btu/hour with Distribution Losses: 35,111 Btu/hour Plant Input Rating assuming 82.0% Plant Efficiency and 25% Safety Margin: 53,523 Btu/hour Note: Additional Capacity should be added for DHW and other plant loads, if served. Typical Occupancy: 0 people Design Indoor Temperature: 70 deg F (building average) Actual City: Grayling Design Outdoor Temperature: ‐47 deg F Weather/Fuel City: Grayling Heating Degree Days: deg F‐days Utility Information Electric Utility: AVEC‐Grayling ‐ Commercial ‐ Sm Natural Gas Provider: None Average Annual Cost/kWh: $0.554/kWh Average Annual Cost/ccf: $0.000/ccf Annual Energy Cost Estimate Description Space Heating Space Cooling Water Heating Ventilation Fans Lighting Other Electrical Raw Water Heat Add Water Circulation Heat Tank Heat Total Cost Existing Building $14,986 $0 $0 $0 $4,641 $33,825 $1,772 $16,874 $6,869 $79,026 With Proposed Retrofits $8,399 $0 $0 $0 $1,698 $26,774 $743 $7,081 $2,850 $47,605 Savings $6,587 $0 $0 $0 $2,944 $7,051 $1,028 $9,793 $4,019 $31,422 24 Appendix B – Actual Fuel Use versus Modeled Fuel Use The Orange bars show Actual fuel use, and the Blue bars are AkWarm’s prediction of fuel use. Annual Fuel Use Electricity Fuel Use #1 Fuel Oil Fuel Use 0 200 400 600 800 1000 Electricit y Natural Gas Propane #1 Oil #2 Oil Birch Wood Spruce Wood Coal Steam District Ht Hot Wtr District Ht Modeled Actual 0 2000 4000 6000 8000 10000 12000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Modeled Actual 0 200 400 600 800 1000 1200 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Modeled Actual 25 Recovered Heat 0 0.2 0.4 0.6 0.8 1 1.2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Modeled Actual RAVG Training Plan, Grayling, Alaska Operator Training Plan: Grayling, Alaska Reference: July 2014 Grayling Energy Audit Trainers: Martin Wortman, Senior Utility Operations Specialist Kameron Hartvigson Operations Specialist Bruce Werba Remote Maintenance Worker Grayling Trainees: Water Treatment Plant Operator ‐ Joshua Koyukuk Water Treatment Plant Operator ‐ Kyle Anthony Water Treatment Plant Operator ‐ Ryan Painter City Administrator Ann Short Anticipated Field Training Dates: Training date dependent upon – 1) RMW review and acceptance of training plan, 2) Acquisition and consolidation of required training materials, 3) Delivery of training materials to community and 4) Coordination and scheduling with Grayling trainees to be present to participate in training. RAVG Training Plan, Grayling, Alaska On‐Site Improvements/Training Instruction and system improvements are for the communities benefit to reduce energy consumption for water treatment, water storage, heated circulating water distribution, sanitary sewer collection, sewer disposal and all associated heat systems for proper operation, maintenance and seasonal operation practices. # 1, #3 & #5 audit priority: Lift Stations and Water Intake gallery heat control Working with operators, training shall address: 1. Control temperatures to maintain minimum 45 F. maximum 50 F. inside building temperatures during the winter. 2. Reseal doors to close and seal properly. # 2, #4, #7 & #8 audit priority: Lighting at Water Plant, Lift Station and Intake gallery lighting Working with operators, training shall address: 1. Lights in lift station to be turned off (manually or if possible automatically) when building is not occupied. 2. If fixture allows possible change out inside bulbs to LED / higher efficiency type. 3. Replace exterior entrance lights to LED wall pack with photo cell light sensor. RAVG Training Plan, Grayling, Alaska 4. Where possible replace existing light switches with occupancy sensors to eliminate possibility of lights accidentally left on. # 9 audit priority: Water Treatment Plant heat controls Working with operators, training shall address: 1. Rehab existing water treatment plant unit heaters to make operate correctly and controlled heat. 2. Install programmable thermostats to maintain 50 F. ‐ 60 F. unoccupied building temperatures. # 6 audit priority: Water distribution system leaks Note: Grayling’s gravel soils pass and leach water very easily. Locating buried leaks can be very difficult since they do not surface. Gravel type soils add higher risk during any excavation. Possible additional time and labor, and access to functional heavy equipment and funds will be needed. Planning and logistics for leak repair efforts will also require coordination and scheduling with the city of Grayling, ADEC remote maintenance worker and city’s utility operators. Working with operators, training shall address: 1. Research and review system’s record drawings to familiarize with water system layout 2. Methods to identify leaks in system, locating leaks and making field repairs. 3. Coordination and scheduling for leak repairs. 4. Method of acquiring leak detection equipment and use. # 10 & # 13 audit priority: Water Treatment Plant heat controls Working with operators, training shall address: 1. Remove broken windows, insulate with board stock, side and seal window opening. Use matched exterior T‐111 siding and interior sheathing to match existing. 2. Attempt to match sizing of existing window and replace with opening double pane window with protective Lexan outside window shielding. Energy priorities not listed in July 2014 Audit Boiler System Working with operators, training shall address: 1. Basic fundamental of boiler operation, controls function and required maintenance. 2. Cleaning and internal inspection of existing boilers. RAVG Training Plan, Grayling, Alaska 3. Determining existing boiler’s operational condition. 4. Minor repair of boiler port, insulation jacket, gas flue and chimney venting. 5. Determination if existing fresh air make‐up ventilation to boiler system is adequate and correct. 6. Provide boiler manufacturer’s recommended oil burners with pre and post purge burner function. 7. Proper set‐up of oil burners to manufacturer’s O.E.M specification and settings. 8. Hands on burner / boiler efficiency testing and optimization. 9. Provide missing needed boiler testing tools & equipment and operation for use. 10. Recommendations and schedule to manually reduce boiler operational temperature based on outside temperature and heat demand. 11. Recommendations and schedule for boiler operational summer shut down and individual boiler isolation and operation during early winter and spring to minimize heat loss during low heat load periods. 12. Identify proper cold boiler start‐up procedures to prevent shock and possible damage to boilers. 13. Add labeling or tags to piping, valves and pumps for easier identification and maintenance. 14. Preventive maintenance scheduling of annual boiler preventive maintenance and cleaning. 15. List of boiler critical spare parts for utility system to stock. Hydronic Heating System Working with operators, training shall address: 1. Basic understanding of hydronic heating system function, operation and required maintenance. 2. Replacement of outdated / discontinued Honeywell heat add / alarm low temperature controllers and replace with new programmable controllers 3. Replacement or repair of non‐functional heat control valves. 4. Verify proper operation and rehabilitation of the building unit heaters and controls. 5. Repair of hydronic leaks. 6. Proper operation of water to hydronic make‐up controls. 7. Clean, repair or replace heat flow indicator / balancer and confirm proper operation. 8. Balancing of heat flows. 9. Clean or replace of all non‐functioning auto air relief valves. 10. Add isolation valves under auto air reliefs to make cleaning and servicing during operation possible. 11. Verify expansion tank operation & proper pre‐charge. 12. Purge air from heating system and provide procedures to maintain proper heat fluid pressure. 13. Venting and checking operation of heat circulation pumps and checking motor rotation. 14. Understanding and monitoring of return loops to maintain minimum 40 deg. F. return temp to minimize excessive heat loss and heating system fuel usage. 15. Add labeling and directional flow arrows to hydronic piping and valves.. 16. Develop list of critical spare parts to order and stock. 17. Anticipation of waste heat system installation – on site review of existing hydronic piping to determine what is required to rehab system to accept waste heat system. RAVG Training Plan, Grayling, Alaska Fuel System Working with operators, training shall address: 1. Basic understanding of the fuel system components, operation and required maintenance. 2. Procedures to identify and remove presence of water from double wall bulk fuel storage tank. 3. Second confinement fuel tank monitoring and draining. 4. Replacement of equipment fuel filters. 5. Scheduling of annual fuel system maintenance. 6. Develop list of fuel system critical spare filters and parts to order and stock. Emergency Backup Generator Working with operators, training shall address: 1. Investigation to existing emergency generator operation – effort to include: A. Provide battery maintainer / trickle charger. B. Identify generator start‐up and operational procedures. C. Start‐up and functionally test generator. D. Identify required generator preventive maintenance. E. Identify replacement generator oil, filters and check belts. F. Recommended scheduled monthly operation and test schedule. G. Develop list of critical spare parts and filters to order and stock for emergency generator system. Energy Efficiency training review with Utility Owner / Community Leadership Discussion with utility owner to outline the covered training addressed: 1. Review value of maintaining critical spare parts on hand. 2. Value of responsible, skilled operators and supported operators. 3. Value of preventive and periodic maintenance. Regional Operator Training The city of Grayling utility operators were invited to attend the 2014 AVTEC operator training sessions. No Grayling operators participated. If funding and scheduling allows - training invitation to Grayling operators will be offered for the 2015 training sessions. ANTHC - DEHE Detail Job Overview by Phase as of 08/21/15 Fiscal Year: 15 Period: 11 Job Number: Job Description: Phone: Estimator: Project Manager: Superintendent: KGX.Z46AEA GRAYLING Z46 QUARTERLY GAVIN DIXON Customer Code: Customer Name: Customer Phone:Start Date: Complete Date: Division:524 Job Status: Active Estimated Actual % Complete: % Billed: Billed To Date: Over / Under: 0.00 0.00 0.00 0.00 Earned To Date: 0.00 Billed (With Tax): Balance: Retention Bal: Current Due: Applied: 0.00 0.00 0.00 0.00 0.00 Job Progress Current Balance Contract Original Contract: Executed Changes: Revised Contract: Proposed Changes: 0.00 0.00 0.00 0.00 Approved Changes: 0.00 Cost Type Hours Job to Date Estimate % Compl Costs to Date JTD + Open Estimate % Compl Open CommitAUGUSTAUGUSTProjected Estimated Phase: E-BU BUILDING UPDATES 1 SITEWORK LABOR 2 STRUCTURAL LBR 3 PLUMB/MECH LAB 4 ELECT. LABOR 5 ADMIN LABOR 6 EQ. MAINT. LABO 1,061.90BPOOL ALLOCATION E EQUIPMENT 211.99FFREIGHT 101.50GFUEL H DEHE ADM ALLOC 603.28IINDIRECT 2,276.53LLABOR 28,417.16MMATERIALS S SUBCONTRACT 5,020.68TTRAVEL/PER DIEM 0.00 0.00 0.00 0.00 0.00 37,693.04 0.00E-BU BUILDING UPDATESSubtotal for: 0.00 0.00 0.00 Phase: E-EA ENERGY AUDITS 1 SITEWORK LABOR 2 STRUCTURAL LBR 3 PLUMB/MECH LAB 4 ELECT. LABOR 5 ADMIN LABOR 6 EQ. MAINT. LABO B POOL ALLOCATION 52.08EEQUIPMENT F FREIGHT G FUEL H DEHE ADM ALLOC I INDIRECT L LABOR Printed by TMD as of 08/21/15 2:09:55PM Page 15 ANTHC - DEHE Detail Job Overview by Phase as of 08/21/15 Fiscal Year: 15 Period: 11 Cost Type Hours Job to Date Estimate % Compl Costs to Date JTD + Open Estimate % Compl Open CommitAUGUSTAUGUSTProjected EstimatedJob: KGX.Z46AEA GRAYLING Z46 (continued) Phase: E-EA ENERGY AUDITS (continued) M MATERIALS S SUBCONTRACT T TRAVEL/PER DIEM 0.00 0.00 0.00 0.00 0.00 52.08 0.00E-EA ENERGY AUDITSSubtotal for: 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Gross Profit: Gross Profit %: -37,745.12 0.0% 0.00 0.0% 0.00 0.0% 0.00 37,745.12 0.00 0.00Job KGX.Z46AEA Totals: Printed by TMD as of 08/21/15 2:09:55PM Page 16 ANTHC - DEHE Detail Job Overview by Phase as of 08/21/15 Fiscal Year: 15 Period: 11 Job Number: Job Description: Phone: Estimator: Project Manager: Superintendent: KGX.W08VRD GRAYLING W08 FFY13 RAVG T GAVIN DIXON Customer Code: Customer Name: Customer Phone:Start Date: Complete Date: Division:535 Job Status:Active Estimated Actual % Complete: % Billed: Billed To Date: Over / Under: F 0.00 0.00 0.00 Earned To Date: 0.00 Billed (With Tax): Balance: Retention Bal: Current Due: Applied: 0.00 0.00 0.00 0.00 0.00 Job Progress Current Balance Contract Original Contract: Executed Changes: Revised Contract: Proposed Changes: 0.00 0.00 0.00 0.00 Approved Changes: 0.00 Cost Type Hours Job to Date Estimate % Compl Costs to Date JTD + Open Estimate % Compl Open CommitAUGUSTAUGUSTProjected Estimated Phase: E-EA GRA 860.16B POOL ALLOCATION 1,433.11I INDIRECT 4,630.65L LABOR M MATERIALS T TRAVEL/PER DIEM X MISCELLANEOUS 0.00 0.00 0.00 0.00 0.00 6,923.92 0.00E-EA GRASubtotal for: 0.00 0.00 0.00 Phase: G-RA GRANT L LABOR T TRAVEL/PER DIEM X MISCELLANEOUS 0.00 0.00 0.00 0.00 0.00 0.00 0.00G-RA GRANTSubtotal for: 0.00 0.00 0.00 Phase: M-TA A FACILITIES I INDIRECT L LABOR T TRAVEL/PER DIEM X MISCELLANEOUS 0.00 0.00 0.00 0.00 0.00 0.00 0.00M-TA Subtotal for: 0.00 0.00 0.00 Phase: S-LS L LABOR T TRAVEL/PER DIEM X MISCELLANEOUS 0.00 0.00 0.00 0.00 0.00 0.00 0.00S-LS Subtotal for: 0.00 0.00 0.00 Phase: S-VP L LABOR T TRAVEL/PER DIEM Printed by TMD as of 08/21/15 2:01:14PM Page 15 ANTHC - DEHE Detail Job Overview by Phase as of 08/21/15 Fiscal Year: 15 Period: 11 Cost Type Hours Job to Date Estimate % Compl Costs to Date JTD + Open Estimate % Compl Open CommitAUGUSTAUGUSTProjected EstimatedJob: KGX.W08VRD GRAYLING W08 FFY13 RAVG T (continued) Phase: S-VP (continued) X MISCELLANEOUS 0.00 0.00 0.00 0.00 0.00 0.00 0.00S-VP Subtotal for: 0.00 0.00 0.00 Phase: W-WP WATER PLANT 2,458.64BPOOL ALLOCATION 4,529.52IINDIRECT 12,734.55LLABOR 2,161.30TTRAVEL/PER DIEM X MISCELLANEOUS 0.00 0.00 0.00 0.00 0.00 21,884.01 0.00W-WP WATER PLANTSubtotal for: 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Gross Profit: Gross Profit %: -28,807.93 0.0% 0.00 0.0% 0.00 0.0% 0.00 28,807.93 0.00 0.00Job KGX.W08VRD Totals: Printed by TMD as of 08/21/15 2:01:14PM Page 16 ANTHC - DEHE Detail Job Overview by Phase as of 08/21/15 Fiscal Year: 15 Period: 11 Job Number: Job Description: Phone: Estimator: Project Manager: Superintendent: KGX.Z48DEN GRAYLING Z48 GAVIN DIXON Customer Code: Customer Name: Customer Phone:Start Date: Complete Date: Division:524 Job Status: Active Estimated Actual % Complete: % Billed: Billed To Date: Over / Under: F 0.00 0.00 0.00 Earned To Date: 0.00 Billed (With Tax): Balance: Retention Bal: Current Due: Applied: 0.00 0.00 0.00 0.00 0.00 Job Progress Current Balance Contract Original Contract: Executed Changes: Revised Contract: Proposed Changes: 0.00 0.00 0.00 0.00 Approved Changes: 0.00 Cost Type Hours Job to Date Estimate % Compl Costs to Date JTD + Open Estimate % Compl Open CommitAUGUSTAUGUSTProjected Estimated Phase: E-BU BUILDING UPDATES 1 SITEWORK LABOR 2 STRUCTURAL LBR 3 PLUMB/MECH LAB 4 ELECT. LABOR 5 ADMIN LABOR 6 EQ. MAINT. LABO 3,169.40BPOOL ALLOCATION E EQUIPMENT 6,280.03FFREIGHT G FUEL H DEHE ADM ALLOC 1,871.43IINDIRECT 7,062.00LLABOR 1,462.21MMATERIALS S SUBCONTRACT 2,386.15TTRAVEL/PER DIEM 0.00 0.00 0.00 0.00 0.00 22,231.22 0.00E-BU BUILDING UPDATESSubtotal for: 0.00 0.00 0.00 Phase: E-EO ENERGY OTHER 1 SITEWORK LABOR 2 STRUCTURAL LBR 3 PLUMB/MECH LAB 4 ELECT. LABOR 5 ADMIN LABOR 6 EQ. MAINT. LABO B POOL ALLOCATION E EQUIPMENT F FREIGHT G FUEL H DEHE ADM ALLOC I INDIRECT L LABOR Printed by TMD as of 08/21/15 2:13:19PM Page 29 ANTHC - DEHE Detail Job Overview by Phase as of 08/21/15 Fiscal Year: 15 Period: 11 Cost Type Hours Job to Date Estimate % Compl Costs to Date JTD + Open Estimate % Compl Open CommitAUGUSTAUGUSTProjected EstimatedJob: KGX.Z48DEN GRAYLING Z48 (continued) Phase: E-EO ENERGY OTHER (continued) M MATERIALS S SUBCONTRACT T TRAVEL/PER DIEM 0.00 0.00 0.00 0.00 0.00 0.00 0.00E-EO ENERGY OTHERSubtotal for: 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Gross Profit: Gross Profit %: -22,231.22 0.0% 0.00 0.0% 0.00 0.0% 0.00 22,231.22 0.00 0.00Job KGX.Z48DEN Totals: Printed by TMD as of 08/21/15 2:13:19PM Page 30 Alaska Energy Authority Alaska Native Tribal Health Consortium Grant Management for Communities 2009 - 2014 Community AEA Grant # ANTHC Grant # Ambler Heat Recovery 2195453 AN-09-Z06 Atmautluak Heat Recovery 7060935 AN-13-Z36 Huslia Biomass 7050821 AN-12-Z24 IRHA Biomass 7050820 AN-12-Z23 Kobuk Biomass 7050840 AN-12-Z22 Koyukuk VEEP 7520004 AN-14-Z47 Kwinhagak Heat Recovery 7060937 AN-13-Z33 Marshall Heat Recovery 7060940 AN-13-Z35 Noorvik Heat Recovery 7060941 AN-13-Z32 Russian Mission Heat Recovery 7050844 AN-12-Z23 Savoonga Heat Recovery 7060934 AN-13-Z34 Scammon Bay Hydro-electric 7060847 AN-12-Z21 Shishmaref Heat Recovery 7050856 AN-12-Z20 Sleetmute Heat Recovery 7060848 AN-12-Z18 Brevig Mission Heat Recovery 7071040 AN 14-Z42 Emmonak Heat Recovery 7071061 AN 14-Z41 Gambell Wind Energy Recovery 7050876 AN 13-Z26 St. Marys Heat Recovery 7071043 AN 14-Z43 Stebbins Heat Recovery 7060939 AN 13-Z31 Tuntutuliak Heat Recovery 7071085 AN 14-Z40 Venetie Heat Recovery 7071044 AN 14-Z39 AEA Round 9 - ANTHC