HomeMy WebLinkAbout20150915_REF_Round_9_Grant_Application_THRHA_Saxman_FinalRenewable Energy Fund Round IX
Grant Application – Heat Projects
AEA 15003 Page 1 of 33 7/8/15
2015 Grant Application
Heat Projects
Renewable Energy Fund Round IX
Applicant: Tlingit Haida Regional Housing Authority
Tribally Designated Housing Entity
Project Title: Saxman Low-Rent Multifamily Air Source Heat Pump Project
Project Location: Saxman, AK
Project Contact: Craig Moore
VP Development and Construction Management
PO Box 32237
Juneau, AK 99803
Phone: 907-780-6868
Fax: 907-780-6895
Email: cmoore@thrha.org
Admin. Contact: Joanne Wiita
Planning and Grant Administration
PO Box 32237
Juneau, AK 99803
Phone: 907-780-6868, direct: 907-780-3158
Fax: 907-780-6895
Email: jwiita@thrha.org
Renewable Energy Fund Round IX
Grant Application – Heat Projects
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SECTION 1 – APPLICANT INFORMATION
Please specify the legal grantee that will own, operate and maintain the project upon completion.
Name (Name of utility, IPP, local government or other government entity)
Tlingit-Haida Regional Housing Authority (THRHA)
Type of Entity: Fiscal Year End:
Housing Authority December 31
Tax ID # 920044273
Tax Status: ☐ For-profit ☒ Non-profit ☐ Government (check one)
Date of last financial statement audit: September 2014
Mailing Address: Physical Address:
PO Box 32237 5446 Jenkins Drive
Juneau, AK 99803 Juneau, AK 99801
Telephone: Fax: Email:
907-780-6868 907-780-6895 jwiita@thrha.org
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name: Joanne Wiita Title: Planning and Grant Administration
Mailing Address:
PO Box 32237
Juneau, AK 99803
Telephone: Fax: Email:
907-780-6868 907-780-6895 jwiita@thrha.org
1.1.1 APPLICANT SIGNATORY AUTHORITY CONTACT INFORMATION
Name: Ricardo Worl Title: President & CEO
Mailing Address:
PO Box 32237
Juneau, AK 99803
Telephone: Fax: Email:
907-780-6868 907-780-6895 rworl@thrha.org
1.1.2 APPLICANT ALTERNATE POINTS OF CONTACT
Name Telephone: Fax: Email:
Craig Moore 907-780-3130 907-780-6895 cmoore@thrha.org
Jocelyn Ramirez 907-780-6868 907-780-6895 jramirez@thrha.org
Charles Horvath 907-780-3118 907-780-6895 chorvath@thrha.org
1.2 APPLICANT MINIMUM REQUIREMENTS
Renewable Energy Fund Round IX
Grant Application – Heat Projects
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Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
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)
Renewable Energy Fund Round IX
Grant Application – Heat Projects
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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.
Saxman Low-Rent Multifamily Air Source Heat Pump
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.
2708 Halibut St.
Ketchikan, AK 99901
55.319642, -131.595161
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
Saxman, AK / Ketchikan, AK – facility provides low rent housing for community members
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
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Grant Application – Heat Projects
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2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of the proposed heat project.
The THRHA plans to renovate, modernize, and expand the existing Saxman Multifamily Low Rent
building in Saxman, AK in 2016 and 2017. The THRHA is requesting funding for the inclusion of
an air-to-water heat pump system in the renovation. This system would include a new low
temperature hydronic heating system and domestic hot water tank to allow the heat pump to cover
the building space heating and domestic hot water demands. If funded, this would replace the
existing oil boilers and high temperature hydronic heating system. The THRHA recently completed
a weatherization and interior insulation project for this building, and will be incorporating additional
efficiency measures into the 2016-2017 building renovation. These will include energy efficient
lighting upgrades, a new heat recovery ventilation unit for planned makeup air for the corridor and
common spaces, and installation of energy efficient appliances in the laundry and each of the 12
low rent units. If the heat pump project is funded, the THRHA will install a new 180 ft2 mechanical
room in the existing walk-in crawlspace. The overall renovation also includes the addition of 1,020
ft2 for a new vestibule, laundry room, and storage locker space for residents. If funding is provided
for the heat pump project, the existing mechanical room would be converted to an ADA accessible
bathroom. The heat pump project would offset the use of 100% of the oil use at the facility. The
heat pump is estimated to cover 95% of the overall heating and domestic hot water demand with a
seasonal efficiency of 233%, and 5% of the demand would be covered with electric resistance
heating during peak demands and maintenance of the heat pump. It is anticipated that the overall
energy use index for the facility will drop by over 46%, from 94,000 Btu/sqft/yr to 51,000 Btu/sqft/yr
through the implementation of the heat pump and low temperature hydronic system (see
Attachment E). The project will provide an estimated $5,200 in annual energy savings for the
facility even at the current low oil prices, and accounting for the increased overall electric price for
all building electric demands (going to heat pump from oil pushes building into new service rate
that is $0.012/kWh higher than current rate). Details on the ASHP project are provided in
Attachment E, which includes a Heating Conversion Analysis performed by Alaska Energy
Engineers, LLC (AEE).
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 tasks to be performed under this funding request are:
Design and Permitting of the Air-To-Water Heat Pump and Low Temperature Hydronic system as
described in Section 2.4. This system is to be designed in conjunction with the design of the
overall building renovation.
Construction, Commissioning, and Operations and Maintenance of the Air-To-Water Heat Pump
and Low Temperature Hydronic System, as well as some additional efficiency improvements.
These improvements are:
- Installation of a new heat recovery ventilation system for the hallway and common areas
- Installation of new energy efficient lighting for the entire facility
- Note that building thermal efficiency improvements have already be conducted
SECTION 3 – Project Management, Development, and Operation
Renewable Energy Fund Round IX
Grant Application – Heat Projects
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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
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
Design and Permitting Phase
1-Project Scoping /
Contractor Solicitation
Issue design RFP and select
contractor 7/1/16 7/29/16
2-Final System Design
/ Permitting
Final design / construction
documents and submit application /
obtain building permit
7/30/16 9/6/16
3-Final Cost Estimate
/ Updated Financials
Finalize construction cost estimate
and financial analysis 9/6/16 9/13/16
4-AEA Review /
Approval to Proceed
Issue documents to AEA for
review, approval to move to
Construction Phase
9/13/16 10/2/16
Construction Phase
5-Develop Bid
Documents
Use design documents, put together
solicitation, and submit for review
and approval by AEA
10/2/16 10/21/16
6-Vendor Selection
and Award
Run bid process, select
contractor(s), negotiate / sign
contract
10/22/16 11/19/16
7-Construction
Construction and construction
management and oversight by
THRHA
11/19/16 4/13/17
8-Integration and
Testing
Testing and balancing, prepare for
change over 4/13/17 4/20/17
9-Change Over /
Decommissioning of
Old System
Change over and remove
extraneous equipment 4/20/17 4/25/17
10-Commissioning
and Final Acceptance
Commissioning, final punch list,
and acceptance of project as
complete
4/25/17 5/4/17
11-Operations
Monitoring and
Reporting
Ongoing monitoring and reporting
to AEA for 10 years 5/4/17 7/1/27
Renewable Energy Fund Round IX
Grant Application – Heat Projects
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Figure 3.1-1 – Proposed Project Schedule Gantt Chart
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 overall cost of the project is $509,231, which includes $62,140 in in-kind/efficiency matching
as summarized in Attachment F. The direct total cost of the work for the air-to-water heat pump
project is $447,091. This includes the heat pump system, the low temperature hydronic system,
electrical service upgrades, new HRV system, new mechanical room, metering, design, permitting,
installation, and commissioning. The grant funding request is for $296,038, which covers the cost
of design and permitting, the cost of the air source heat pump and low temperature hydronic
system, the metering system, and overall project installation.
Matching items are summarized in Attachment F. There is a total cash match provided of
$164,053, which includes the installation of the new HRV system for providing ventilation to the
building, the construction of a new mechanical room (18’x10’) to house the new system, new
energy efficient lighting for the building, project management, electric service upgrade from single
phase to three phase, new electrical infrastructure onsite, and testing, balancing, and
commissioning. There is also additional In-Kind matching that includes THRHA project oversight
and past energy efficiency measures (weatherization and insulation) estimated at a total of
$49,140, for a total matching estimate of $213,193.
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Grant Application – Heat Projects
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The budget described here includes all phases of the project, and the design funding request is
less than 20% of construction phase cost. All funds that are not grant funds will come from the
IHBG allocation or THRHA’s capital budget.
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 provid ed 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.
Design Phase Budget
Milestone or Task
RE- Fund
Grant
Funds
Grantee
Matching
Funds
Source of Matching
Funds:
Cash/In-kind/Federal
Grants/Other State
Grants/Other
TOTALS
(List milestones based on phase
and type of project. See sections
2.3 thru 2.6 of the RFA )
$ $ $
1-Project Scoping /
Contractor Solicitation $1,000 $2,500 In-Kind $3,500
2-Final System Design /
Permitting $20,000 $3,500 In-Kind $23,500
3-Final Cost Estimate /
Updated Financials $9,000 $500 In-Kind $9,500
4-AEA Review / Approval
to Proceed $628 $1,000 In-Kind $1,628
TOTALS $30,628 $7,500 $38,128
Budget Categories:
Direct Labor & Benefits $ $7,500 In-Kind $7,500
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $30,628 $ $30,628
Construction Services $ $ $
Other $ $ $
TOTALS $30,628 $7,500 $38,128
Renewable Energy Fund Round IX
Grant Application – Heat Projects
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Construction Phase Budget
Milestone or Task
RE- Fund
Grant
Funds
Grantee
Matching
Funds
Source of Matching
Funds:
Cash/In-kind/Federal
Grants/Other State
Grants/Other
TOTALS
(List milestones based on phase
and type of project. See sections
2.3 thru 2.6 of the RFA )
$ $ $
5-Develop Bid Documents $5,000 $1,500 In-Kind $6,500
6-Vendor Selection and
Award $3,000 $2,500 In-Kind $5,500
7-Construction $252,410 $189,443 In-Kind / IHGB / THRHA $441,853
8-Integration and Testing $0 $6,250 In-Kind / IHGB / THRHA $6,250
9-Change Over /
Decommissioning of Old
System
$5,000 $500 In-Kind $5,500
10-Commissioning and
Final Acceptance $0 $5,500 In-Kind / IHGB / THRHA $5,500
11-Operations Monitoring
and Reporting $0 Significant, but
not included In-Kind $
$ $ $
TOTALS $265,410 $205,693 $471,103
Budget Categories:
Direct Labor & Benefits $30,000 $20,000 In-Kind / IHGB / THRHA $50,000
Travel & Per Diem $15,000 $10,000 IHGB / THRHA $25,000
Equipment $150,000 $87,193 IHGB / THRHA $237,193
Materials & Supplies $20,000 $50,000 IHGB / THRHA $25,000
Contractual Services $20,000 $40,000 IHGB / THRHA $60,000
Construction Services $30,410 $43,500 IHGB / THRHA $73,910
Other $ $ IHGB / THRHA $
TOTALS $265,410 $205,693 $471,103
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Grant Application – Heat Projects
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3.2.3 Cost Justification
Indicate the source(s) of the cost estimates used for the project budget.
The Project Cost Summary provided in Attachment F lists the source of each value in the budget.
The main source of the project cost comes from the Attachment E, which includes the AEE project
cost estimate. There are some additional items included in the project costs as shown in the
summary, and the main sources of these are THRHA estimates based on past projects, THRHA
records, and WES Energy & Environment, LLC (WESEE).
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 $296,038
Cash match to be provided $164,053
In-kind match to be provided $49,140
Total costs for project phase(s) covered in application (sum of above) $509,231
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 $
Final Design and Permitting $38,128
Construction $471,103
Total Project Costs (sum of above) $509,231
3.2.6 Operating and Maintenance Costs (non-fuel)
Estimate annual non-fuel O&M costs associated with the proposed system
$2,662
3.2.7 Fuel Costs
Estimate annual cost for all applicable fuel(s) needed to run the proposed system
Fuel type Annual cost ($)
Electricity $6,521
$
$
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Grant Application – Heat Projects
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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.
Project Manager, Craig Moore, and his team are proficient in project communications and
recording of activities and progress. During the course of the project, regular update meetings or
teleconferences will be held with contractors and AEA as requested. Meeting notes will be
recorded for the project file. THRHA will track and monitor the established budget versus actual
expenditures by line item.
Mr. Moore has a wealth of experience in working with contractors and the community. Before work
begins Mr. Moore will conduct a coordination meeting to include all key partners and community.
Forecasted meetings and reports will include; project coordination meeting, design review, notice
of Intent to construct, teleconferences and reporting by the contractor, project commissioning and
close out. Mr. Moore has demonstrated experience in meeting the reporting and communications
requirements for a wide variety of grant funding agencies, including AEA.
Continued annual reporting will occur according to AEA requirements. Onsite work will be
conducted under the oversight of Maintenance Manager Robert Reimer. Onsite will be THRHA’s
field rep, Eric Trout. Data on energy usage will be extracted from the onsite data loggers, and
either will be downloaded and recorded by Mr. Trout and provided in the format and matrix per
requirements by AEA or by way of remote monitoring and upload if broadband capacity provides
this ability. If downloaded onsite, the electronic data will be provided to AEA via email or hard drive
data storage.
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.
The renewable energy system will be providing heat for the existing, renovated, Saxman Low-Rent
Multifamily building. This building has 12 units for residents as well as common spaces that will be
provided with heat, and the system will provide domestic hot water. THRHA has an extensive
O&M staff that has a long history of exemplary training, O&M funding resources, customer service,
and operational experience. This facility will continue to be maintained by this staff. The O&M is
completed in large part by in-house staff, but THRHA has the annual operating budget to allow for
outside contracting as necessary. This facility and equipment will be maintained throughout its
lifetime by THRHA to the benefit of low income residents of Southeastern Alaska.
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Grant Application – Heat Projects
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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.
The management for this project is Craig Moore, VP of THRHA. Craig is responsible for THRHA
Development and Construction Management (resume attached).
Craig works closely with Robert Reimer, THRHA’s Maintenance Manager. Robert is responsible for
operations and maintenance of 600 THRHA housing units including multi-family buildings
throughout the southeast region of Alaska. Robert has been with THRHA for five years and prior
he was with the Days Inn for six years as property manager where he was responsible for $24M of
property assets. Robert manages THRHA’s 20 onsite field representatives.
THRHA Field representatives are responsible for repairing and maintaining all THRHA properties
which include: inspections, reports, estimating, purchasing, record-keeping, scheduling, computer
data entry and all aspects of maintenance including plumbing, heating/ventilation, electrical, and
carpentry. Field reps have received formal boiler training and have advanced certifications.
Local field representative Eric Trout has extensive facility operation experience, including the air-
to-water heat pump at Saxman Senior Center, and the existing hydronic system at the Saxman
Low-Rent building.
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.
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If contractors have not been selected to complete the work, provide reviewers with sufficient detail
to understand the applicant’s capacity to successfully select contractors and manage complex
contracts. 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
VP of THRHA, Craig Moore, is responsible for this project that will be contracted out for design and
construction. For THRHA’s portion of the project, THRHA uses force account labor. It is
anticipated that virtually all THRHA labor will be local hire. Contractors for the design, engineering,
construction, and commissioning of the project will be selected according to THRHA’s policies and
procurement procedures. These procurement policies comply with existing state procurement
requirements. THRHA follows procurement policy procedures for all major projects, including an
RFP process that will be utilized for award of this system design and construction.
Mr. Moore and his team at THRHA have extensive experience in selecting and managing
engineering and construction contractors for energy system design and installation at a wide
variety of housing facilities. Specific examples of experience similar to project proposed at the
Saxman Low-Rent building include the the Kake Low-Rent building, which is undergoing a very
similar renovation. In that case, a biomass renewable energy system is being installed for
providing facility heating needs. THRHA also has specific experience with managing design,
installation, and operation of air-to-water source heat pumps, which includes an installation at the
Saxman Senior Center a few blocks from this proposed project. There the air-to-water heat pumps
are used only for domestic hot water generation and a small slab floor section.
The Saxman Low-Rent building is up for a renovation in 2016-2017 as detailed in the project
description, and thus, THRHA has allocated staff time and funding resources to ensure the project
can be designed, constructed, and operated as described. The grant funding requested will
determine whether the renovation project is able to include the heat pump renewable energy
portion of the project.
The team at THRHA has extensive demonstrated experience in understanding and addressing
technical, economic, and environmental barriers to successful project completion and operation for
renewable energy systems.
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.
THRHA manages an annual budget of $12 million and employs over 40 technical and
administrative personnel. The VP of Administration, Joyce Niven, will lead fiscal management on
this project. (resume attached)
Ms. Niven has worked in the accounting field for over 20 years and for the past 12 years, she has
been employed by THRHA. She has a Bachelor’s of Science degree in business and finance from
Western Washington University, Bellingham Washington. Joyce is knowledgeable and proficient in
meeting reporting requirements and deadlines of the various THRHA funding agencies including
existing State of Alaska and IHBG grant reporting, and account structures. Her accounting
expertise as well as her experience and knowledge of THRHA and southeast Alaska brings the
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THRHA Fiscal Department the ability to address, plan and handle all accounting aspects of AEA
grant accounting. Under the leadership of Joyce Niven, THRHA has successfully closed over five
new construction project accounts and during the past three years, two of these projects were
closed with multiple funding sources
Ms. Niven, will provide oversight to the AEA grant and THRHA accounting. She will supervise
Finance Manager Irene Tupou who is responsible for all accounting functions including grant
accounting that is performed by her staff. Ms. Tupou will be responsible for all accounting
procedures and activities and oversee the THRHA Grant Accountant. Ms. Tupou’s role of the AEA
grant will also include oversight preparation of AEA fiscal reporting. She will be responsible for
requesting reimbursement to the AEA project costs, and is responsible for internal monitoring and
enforcing of AEA requirements during the grant. Her role will include adherence and coordination
of fiscal reporting to AEA. Ms. Tupou is a member of THRHA management, and she coordinates
all aspects of project implementation with her senior colleagues at THRHA to ensure that THRHA
complies, and maintains reporting on time and within budget. (resume attached) THRHA’s Finance
Manager Irene Tupou can be reached at 907 780 6868 Email: itupou@thrha.org
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.
Bookkeeping functions are performed in-house using Emphasys Systems Elite, to manage fund
accounting that meets Federal requirements. Finance Manager Irene Tupou is responsible for all
accounting functions including grant accounting that is performed by her staff. Ms. Tupou has
experience managing grant funds from a variety of sources, including AEA, and ensures that no
expenses that are unallowable will be requested for reimbursement.
THRHA financial management and internal controls provide assurance that project goals and
objectives will be met and funds will be used efficiently. To provide checks and fiscal oversight,
THRHA’s internal financial controls and policy separate duties into three financial functions
(authorizing transactions; keeping records; and handling funds). Program funds are tracked in
separate grant accounts with a project code allocated to each. Upon award of funding THRHA
conducts a grant implementation meeting and review newly established codes for associated
expenses. Only allowable expenses are coded and paid out of grant funds, the expenses are
approved by the project manager and monthly grant meetings are held among the finance staff,
project manager, and grant administrator to ensure all expenses are allowable and coded properly
according to the approved budget. THRHA also tracks grant inkind and match including labor and
expenses that are not allowable as grant reimbursement. In addition, THRHA conducts an annual
external financial audit.
THRHA will be responsible for the implementation and administration of this project. THRHA has a
Procurement Policy in place which will be applied to the procurement of all contract labor and
materials secured for this project. The THRHA Board of Commissioners, by resolution has adopted
this Policy for implementation of all THRHA projects. THRHA Policy outlines the process for both
procurement of identified goods and services required by established thresholds of the purchases
(small purchase $0-$100,000); Sealed Bids/invitation for Bids (IFB), when applicable over
$100,000; Competitive Proposals/Request for Proposals (RFP), when applicable over $100,000;
and Non Competitive (Sole Source) Proposals, as well as the methods used for purchase (request
Renewable Energy Fund Round IX
Grant Application – Heat Projects
AEA 15003 Page 15 of 33 7/8/15
for price quotes, request for proposals, and invitation for bids) that controls the method of
procurement.
Ms. Tupou can be reached at 907 780 6868 Email: itupou@thrha.org
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.
For THRHA’s portion of the project, THRHA uses force account labor. It is anticipated that virtually
all THRHA labor will be local hire. THRHA has a local labor pool available to begin work
immediately. Additionally, this project will provide the opportunity to continue to train the local work
force on installation and operation of air-to-water heat pumps and low temperature hydronic
heating systems.
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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.
The proposed renewable energy resource is the air surrounding the Saxman Low-Rent Multifamily
building. The publication “Air Source Heat Pumps in Southeast Alaska”, provides a summary of
the heat pump technology. The climate for Saxman lends itself particularly well to air source heat
pumps since there is a significant amount of annual heating degree days, and the 99% outdoor dry
bulb temperature for peak space heating demand is 20oF (Manual J 8th Edition, Version 2).
Further, the majority of the year has average temperatures that match well with air -to-water heat
pump performance. Efficiency of air source heat pump equipment varies by manufacturer and
conditions, but generally adheres to the approximate range provided in Table 5.1.1-1 when
supplying space heating and domestic hot water temperatures as listed during the varying outdoor
temperatures shown. Table 5.1.1-2 shows the average highs and lows by month over the 30-yr
period from 1981-2010 for Ketchikan, AK.
Table 5.1.1-1 – General COP Range for Air-to-Water Heat Pumps at Varying Conditions
Note that data is taken from LG ThermaV Air-to-Water Heat Pump performance data, and will vary by manufacturer and
model.
Additionally, the Saxman Low-Rent Multifamily building is served by KPU, which sources the vast
majority of electricity from renewable hydroelectric generation stations. Thus, converting heating
over from oil also taps into electricity generated from a renewable resource.
Outdoor Air
Temperature,
oF
COP when
providing
122oF Water
COP when
providing
131oF Water
5 1.7 -
19 2.0 1.8
28 2.3 2.0
36 2.4 2.3
45 2.9 2.7
50 3.2 2.8
59 3.4 3.0
64 3.4 3.1
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Table 5.1.1-2 – 30-year Monthly Average Temperatures for Ketchikan, AK
Note that data is obtained from USClimateData.com, and provides monthly averages for the 30-yr period spanning 1981-
2010 for Ketchikan, AK.
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
There are no specific permitting requirements that exist for air source heat pumps. It is anticipated
that a construction permit will be required from the locality for the building renovation and
expansion. This standard building permit would cover the heating system installed. If grant funds
are awarded, the main heating system will be the air source heat pumps. This is a standard
renovation project with a small footprint, and there are no anticipated issues with obtaining the
building permit for this effort.
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.
The facility is owned and controlled by THRHA. THRHA does not technically own the land on
which the facility is located, and has a long-standing lease dating to 1977 with the City of Saxman
(copy of lease included with Attachment G). The City and THRHA have an excellent working
arrangement, and there is no discussion about the lease being changed. Further, the City of
Month Average
High, oF
Average
Low, oF
Jan 40 30
Feb 41 31
Mar 44 32
Apr 49 35
May 56 41
Jun 61 47
Jul 64 51
Aug 64 52
Sep 58 47
Oct 51 40
Nov 43 34
Dec 40 31
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Saxman has provided a letter of support for this project, which states that the THRHA’s low-rent
housing is “much needed” for residents in the community. The inclusion of an air source heat
pump in the project will not impact the overall facility footprint as it would be located in existing
space used for the facility. The site is both available and suitable for this renewable energy
system.
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.
The technical risks are appropriate sizing of the air-to-water heat pump, the number of vendors that
may be available to provide the equipment, appropriate design of the low temperature hydronic
system, and whether there is adequate electrical service available. These risks will be mitigated by
the following approaches:
- THRHA will select an experienced design firm through their procurement process, and
THRHA also has the technical operating and design review experience to ensure that the
equipment is appropriately sized.
- THRHA has experience with selection, installation, and operation of air-to-water heat
pumps for DHW production, and will work to line up as many qualified vendors of equipment with
appropriate and demonstrated performance prior to bidding of the project.
- THRHA will select an experienced design firm through their procurement process, and
THRHA also has the technical operating and design review experience to ensure that the low
temperature hydronic system and associated ventilation will be appropriately designed, and will
meet the comfort and air quality needs of building residents.
- THRHA has confirmed with the utility that adequate electric service is available.
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
Archaeological and historical resources
Land development constraints
Telecommunications interference
Aviation considerations
Visual, aesthetics impacts
Identify and describe other potential barriers
This project is all contained within the bounds of an existing planned renovation of an existing
building. There are no environmental or land use issues anticipated as part of the project, and the
project will have no impact on threatened or endangered species, sensitive habitats, wetlands,
protected areas, archeological resources, or historical resources. There are no land development
or aviation constraints, and the system will not interfere with any telecommunications or otherwise
have visual or aesthetic impacts. Any disposal of construction materials will be performed in an
approved and environmentally responsible manner, and there are no other environmental risks
associated with the project.
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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.
The 7,600 ft2 building (pictured below) was originally constructed in 1982 and is currently heated
with two Weil McLain WGO-6 oil boilers (212,000 Btu/hr rated output each). These boilers are
coupled with a high temperature (180oF) hydronic distribution system, finned tube hydronic
baseboard in each of the 12 residences and the common lunch room, and hydronic panel heaters
in the main corridor. Domestic hot water is provided by an Amtrol indirect hot water heater fed
from the oil boilers. The boilers and hydronic system are failing, and the building is scheduled for a
heating system replacement as part of a renovation project in 2016-2017. The boilers are serviced
on a regular basis, and have recent combustion tests showing an efficiency of 84.1%. The
seasonal efficiency estimated to be 72% due to cycling and other losses from the boilers.
Figure 5.4.1-1 – Saxman Low-Rent Multifamily Building
Existing Energy Generation and Usage
a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank)
i. Number of generators/boilers/other
ii. Rated capacity of generators/boilers/other
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.
2
212,000 Btu/hr (output) each
Weil Mclain WGO-6
>20 years
84.1% combustion test / 72% seasonal
No
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iii. Generator/boilers/other type
iv. Age of generators/boilers/other
v. Efficiency of generators/boilers/other
vi. is there heat recovery and is it operational?
b) Annual O&M cost
i. Annual O&M cost for labor $960
ii. Annual O&M cost for non-labor $800
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]
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
3,693 gallons (with building additions/planned ventilation this
value is projected to be 4,058 gallons/yr)
Estimated at 1,690 kWh (not for heating, but running pumps,
burner, etc.)
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5.4.2 Future Trends
Describe the anticipated energy demand in the community over the life of the project.
Overall, the population in Saxman has risen 14% since 1990. However, it has dropped from a high
hit in 2000. Despite this drop, the long-term trend since 1990 has been growth. It is anticipated
that energy demand will grow (or recede) at a rate similar to population growth, and given the long -
term growth trend it is anticipated to grow overall. THRHA is seeking to help ensure this growth
moves away from oil and to renewable resources, and projects like the proposed air -to-water heat
pump for this project will provide examples for building owners about the potential to utilize local
renewable resources (climate and heat pumps) instead of oil.
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.
It is not anticipated that this project would impact electric rates in a significant way over the project
life given its size. However, the project does propose to convert from oil to electric while using heat
pumps as opposed to electric resistance. This reduces the potential demand on the grid while
converting from oil to electric by a factor of 1.9-3.4 depending on the time of year and heating
demand.
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 renewable energy technology is an air-to-water heat pump that utilizes the local climate to
heat a low-temperature hydronic heating system and provide domestic hot water. The optimum
installed capacity is assessed at 78% of the peak space heating demand, which will allow for
provision of over 95% of the annual heating and domestic hot water demand with an average
efficiency estimated at 233%. The remaining 5% of the annual demand will be provided with
electric resistance.
The peak space heating demand on the system is approximately 100,000 Btu/hr, with an additional
peak demand of 50,000 Btu/hr for domestic hot water. Table 5.4.4-1 shows the monthly average
space heating demands for the building as estimated by AEE for the report in Attachment E.
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Table 5.4.4-1 – Monthly Average Heating Demands on System (Space Heat and DHW)
The system is to be coupled with an energy efficient low-temperature hydronic heating system.
This is necessary to allow the air-to-water heat pump to operate with a high efficiency (COP).
Section 5.1 of this application discusses the efficiency of the heat pump at various outdoor air
temperatures and heating water temperatures. The lower the water temperature needed to meet
the building heating needs, the higher the efficiency that will be obtained with the heat pump. The
planned operating temperature is 115oF, but this may be optimized during portions of the year to
increase system COPs while considering the need to maintain domestic water temperatures.
The anticipated capacity factor is approximately 95%. The anticipated annual heat generation is
384 mmBtu of hot water using the heat pump and 20 mmBtu using electric resistance heating
backup.
Anticipated barriers for this type of project can be the ability to obtain electric service, the adequacy
of the hydronic space heating distribution system to utilize low temperatures, identifying
appropriate equipment, and sizing of the heat pump equipment. The main issues associate d with
these barriers have been addressed as part of the study of the project to ensure that there are no
project limiting factors, and further resolution will progress in the design phase. The availability for
adequate three-phase service has been confirmed with the utility, a new low-temperature hydronic
system will be installed, LG MultiV equipment has been identified as UL listed and available, and
sizing has been targeted appropriately to ensure efficient operation.
The integration of the equipment is planned through addressing the barriers identified in the
previous paragraph. Electric will be delivered via a new 3-ph service, and heat will be delivered via
a new low-temperature hydronic system.
Proposed System Design Capacity and Fuel Usage
(Include any projections for continued use of non-renewable fuels)
Month
Monthly Average
Heat Demand,
Btu/hr
Jan 79,348
Feb 66,586
Mar 56,212
Apr 40,722
May 29,651
Jun 26,140
Jul 25,090
Aug 24,945
Sep 21,847
Oct 45,855
Nov 58,199
Dec 71,700
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a) Proposed renewable capacity (Wind,
Hydro, Biomass, other)
[kW or MMBtu/hr]
Local climate – air – Air Source Heat Pump sized at 78,000
Btu/hr during design conditions
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh]
ii. Heat [MMBtu] 405 mmBtu/yr (5% of this, or 20 mmBtu/yr from resistance
electric, and 95%, or 384 mmBtu/yr from heat pump)
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 54,668 kWh for heat, and 3,035 kWh for pumps, controls,
etc.
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.
The metering plan includes monitoring of the electric usage of the heat pump, electric buffer tank,
and electric water heater, as well as the heat delivered to the building space heating loop and
domestic water. This will be accomplished with three current transformers and two Btu meters.
The Btu meters will measure flow, supply temperature, and return temperature for each water loop
identified. The data will be collected and integrated into one data logging computer that has the
capability to output the data to a spreadsheet as well as to a website for potential integration with
AEA automated data collection in the future.
Table 5.4.5-1 provides an estimate of the cost for this metering equipment.
Table 5.4.5-1 – Metering System Cost Estimate (prepared by WESEE)
Description Quantity Price 15% Contingency Total
Calculating Unit 1 $745 $857 $857
1" Water Flow Meter 2 $900 $1,035 $2,070
Temp. sensor pair 2 $275 $316 $633
Temp. sensor wells 4 $95 $109 $437
Current transformers 3 $105 $121 $362
RedLion Data Collection PLC 1 $900 $1,035 $1,035
Modbus to Ethernet converter 1 $215 $247 $247
Data Logging PC 1 $1,000 $1,150 $1,150
Installation 1 $2,000 $2,300 $2,300
TOTAL $9,091
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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.
This project would provide an estimated first-year energy savings of over 41% or $5,200 and would
offset the use of 4,085 gallons of diesel fuel. This comes from meeting the demand for the
remodeled building with an air-to-water heat pump instead of an oil boiler. The projected energy
cost for heating with the oil system is $12,500 (cost includes a small amount of electric for running
pumps, etc.), and the projected energy (electric) cost for heating with the heat pump is $7,300
(note that this includes an allowance for increasing the electric cost by approximate $800
($0.012/kWh) for all electric usage at the entire facility since the new three-phase service pushes
the building into a new commercial rate). The annual operating costs for the equipment are
projected to be an additional $900/yr for the heat pump system vs. the oil system.
These annual energy savings will directly reduce the cost of operating this low income housing
facility, which helps to ensure that this public resource is able to be sustainably maintained over
the long-term.
The annual fuel oil displacement is 4,058 gallons ($12,296), and the lifetime fuel oil displacement is
101,450 gallons ($307,400 – at the current cost of $3.03/gallon).
6.1.2 Power Purchase/Sale
The power purchase/sale information should include the following:
Identification of potential power buyer(s)/customer(s)
Potential power purchase/sales price - at a minimum indicate a price range
Proposed rate of return from grant-funded project
Identify the potential power buyer(s)/customer(s) and anticipated power purchase/sales price
range. Indicate the proposed rate of return from the grant -funded project.
This project does not include the sale of heat or electricity. The users of the renewable heat
produced will be the residents of the low rent building.
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6.1.3 Public Benefit for Projects with Private Sector Sales
For projects that include sales of power to private sector businesses (sawmills, cruise ships, mines,
etc.), please provide a brief description of the direct and indirect public benefits derived from the
project as well as the private sector benefits and complete the table below. See section 1.6 in the
Request for Applications for more information.
This project does not include the sale of heat or electricity. The users of the renewable heat
produced will be the residents of the low rent building, and the project will benefit the public as
described in Section 6.3.
Renewable energy resource availability (kWh per month)
Estimated sales (kWh)
Revenue for displacing diesel generation for use at private sector businesses ($)
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.
The proposed heat pump project would be completed as part of an overall renovation to the
Saxman Low-Rent building. THRHA has committed funding for this project for the 2016 fiscal year.
The majority of the funds for the energy portion of project will come from THRHA’s 2016 IHBG
NAHASDA funding allocation, and the remaining amount will come from THRHA’s capital budget.
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?
THRHA is an organization dedicated to providing low income housing opportunities for
Southeastern Alaskans, and as such has the goal of breaking even on its annual operations, and
giving as much back as possible to the residents who benefit from its services. Because of this
operational mode, THRHA does not generally take on debt service for capital projects. Because of
the nature of the organization, THRHA does not see where it has the ability to borrow to take on
additional upfront costs for energy projects.
6.2.2 Cost Overruns
Describe the plan to cover potential cost increases or shortfalls in funding.
THRHA has a history of managing projects to ensure that realistic budgets are established and that
the budgets are met during project implementation. However, if absolutely necessary, THRHA has
additional resources in its funding plan that could be used to cover any cost overruns that may
occur on the project. The first option in the funding plan is to use manage the project to ensure
that overruns do not occur and that reasonable contingency that has been included in the
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budgeting numbers to help to cover any overruns. The final option, if needed, would be additional
funds from either THRHA capital budget or THRHA’s IHBG allocation.
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.
The intent is to complete the project with the phases identified 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 THRHA manages a suite of facilities in Southeastern Alaska that provide affordable housing
opportunities for native and non-native residents and their families. Additionally, THRHA is
involved in providing a wide variety of funding, construction, and technical services to low income
residents and properties. This project provides the opportunity to demonstrate how buildings in
Southeastern Alaska can utilize air-to-water heat pumps for space heating as well as domestic hot
water to offset the use of oil. This project utilizes the Southeastern Alaskan climate and new
technologies to reduce annual heating energy demands and costs by 1.5-3 times over typical fuel
oil and electric resistance systems. These projects have the potential to dramatically reduce
energy demand over time as building owners and local installers become familiar with them.
This project and THRHA’s footprint in the building community in Southeastern Alaska provide the
opportunity to showcase the real costs, energy performance, and benefits of this technology and
application. This project also provides the opportunity to identify the challenges associated with
implementing this type of project, such as needing/evaluating low-temperature hydronic heating
systems, ensuring appropriate electrical service, and identifying the appropriate equipment and
sizing of that equipment. THRHA hopes to show the benefits and challenges, and how the
challenges can be addressed and overcome.
THRHA would hope to replicate this type of project at other buildings it owns in Southeastern
Alaska, and would hope that others can use this same information to determine whether they are
able to make the same move away from oil and to low temperature hydronic systems with new
construction or building renovations. The following summarizes the benefits for other building
owners in Saxman and other Alaskan communities:
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- Hydroelectric communities are promoting heat pump heating as an efficient use of hydroelectric
resources. The project demonstrates heat pump conversion of an existing building.
- Air source heat pump technology has improved greatly in the last five years to the point that they
are viable systems in the relatively warmer climate of coastal Alaska. As the technology continues
to gain efficiency, the lessons learned from this conversion will benefit more areas of Alaska.
- The recent drop in oil prices may lead to complacency in addressing future energy issues. By
promoting heat pump technology and demonstrating its success now, the THRHA can make
positive steps toward improving energy efficiency and lowering long-term energy costs.
- Replacing a heating system in-kind is the often chosen path for building owners, especially for
similar buildings with relatively modest heating loads. This project will successfully demonstrate
that heat pump technology is a viable option that offers long-term benefits to THRHA
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SECTION 7 – SUSTAINABILITY
Describe your plan for operating the completed project so that it will be sustainable throughout its
economic life.
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
The THRHA has the capacity, both administratively and financially, to provide for the long-term
operation and maintenance of this project. The THRHA manages a suite of properties, has an
annual budget of over $12 Million, and a staff of over 40 technical and administrative personnel.
This infrastructure is dedicated to providing affordable housing opportunities for Southeastern
Alaskans, and has a demonstrated history of operation and maintenance of a host of properties.
This property is owned by THRHA, and is being upgraded to allow for continued provision of
benefits to local residents. THRHA has a history of providing operation and maintenance of this
facility at Saxman, and plans continued operation and maintenance of this facility in its annual
budgets and staffing plans.
The applicant is current on all loans and required reporting to state and federal agencies. The
climate resource and THRHA operations capabilities will be available over the life of the project.
There will continue to be a market for affordable housing in the Saxman community over the life of
the project.
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
THRHA has evaluated its options for reducing energy costs through a number of efforts in the past
years, and has been implementing a mix of technologies to reduce their operating costs. THRHA
hopes that this project can be part of the upcoming renovation to the Saxman Low-Rent Multifamily
building. This renovation is being planned and budgeted for in 2016-2017, and THRHA will be
ready to move forward with the design and construction of the air-to-water heat pump and low
temperature hydronic system should grant funds be awarded.
In anticipation of this application, THRHA has completed an initial study and life-cycle cost analysis
showing that this new system is comparable in lifecycle costs with fuel oil, while providing a
significant reduction in annual energy costs. The phases proposed in this application would begin
as soon as notification of award was made. All permits will be obtained as part of the typical
renovation process, and THRHA already owns and manages the property. THRHA will procure all
Renewable Energy Fund Round IX
Grant Application – Heat Projects
AEA 15003 Page 29 of 33 7/8/15
the necessary equipment and materials as part of a bidding process for the project. Additionally,
THRHA has been making thermal efficiency improvements to this facility over the past 5 years in
preparation for this new retrofit. These include weatherization, and added interior insulation.
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 THRHA provides affordable housing opportunities, and works in collaboration with and is
supported by the local communities it serves. This project is supported by the THRHA
management and staff, and is supported by the local community (see attached letters of support).
Specifically, the local supporters are:
The Central Council Tlingit Haida Indian Tribes of Alaska
The City of Saxman
The Organized Village of Saxman
The Ketchikan Public Utilities Electric Division provided an email supporting the use of heat pump
technology at the Saxman building and affirming the ability of their distribution circuit to serve this
project.
There is no known opposition to this project, and none would be anticipated since it is limited to the
THRHA property and has a very small footprint.
Renewable Energy Fund Round IX
Grant Application – Heat Projects
AEA 15003 Page 30 of 33 7/8/15
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.
The THRHA has been the recipient of an AEA grant in the past, and THRHA has been able to
meet the technical, scheduling, and reporting deadlines using its dedicated and professional staff.
Further, THRHA has been the recipient of many grants for construction projects from other entities,
and is adept at grant management and reporting.
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.
THRHA leveraged a US Department of Energy Tribal Energy Grant that providing funding for
THRHA to provide Energy Efficiency Audits, Assessments, and Alternative Energy Studies on
THRHA facilities. This effort funded audits of over 48 THRHA facilities, including the Saxman Low-
Rent Multifamily building, and identified air source heat pumps as capable of providing substantial
energy savings over the use of oil for heating. THRHA used this same grant to develop a heating
conversion analysis for the Saxman Low-Rent Multifamily building. The heating conversion
analysis report was developed by Alaska Energy Engineering, LLC, and is attached.
SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION
In the space below please provide a list of additional information submitted for consideration
A. Grant contact information and resumes for the following THRHA staff:
Mr. Craig Moore – VP of Development and Construction Management
Ms. Irene Tupou – Finance Manager
Ms. Joyce Niven – VP of Administration
B. Letters of support from the following local organizations:
The Central Council Tlingit Haida Indian Tribes of Alaska
The City of Saxman
The Organized Village of Saxman
KPU Electric Division – Email
C. Recent invoices for oil and electricity:
Summary of oil invoices from 1/02/14 through 6/17/15
Electric invoices summary (1/05/12 – 12/08/14)
D. Governing Body Resolution:
Authorization and Commitment letter from THRHA President and CEO
Resolution from THRHA Board of Commissioners
E. Heating Conversion Analysis Report by Alaska Energy Engineers, LLC
F. Summary of Project Costs, Requested Funding, and Matching:
Summary of Project Costs, Grant Requested Funding, and Matching Costs
Summary of In-Kind Matching Estimate
Renewable Energy Fund Round IX
Grant Application – Heat Projects
AEA 15003 Page 31 of 33 7/8/15
G. Heat Pump Checklist with Summary Answers to Facilitate Application Review
Lease with City of Saxman for Land on Which Facility Is Located
Attachment A
Contact Information and Resumes
Applicant: Tlingit Haida Regional Housing Authority
Tribally Designated Housing Entity
Project Title: Saxman Low-Rent Multifamily Air Source Heat Pump Project
Project Location: Saxman, AK
Project Contact: Craig Moore
VP Development and Construction Management
PO Box 32237
Juneau, AK 99803
Phone: 907-780-6868
Fax: 907-780-6895
Email: cmoore@thrha.org
Admin. Contact: Joanne Wiita
Planning and Grant Administration
PO Box 32237
Juneau, AK 99803
Phone: 907-780-6868, direct: 907-780-3158
Fax: 907-780-6895
Email: jwiita@thrha.org
List of Resumes Provided:
Mr. Craig Moore – VP of Development and Construction Management
Ms. Irene Tupou – Finance Manager
Ms. Joyce Niven – VP of Administration
Attachment B
Letters of Support
Letters of Support Provided by:
The Central Council Tlingit Haida Indian Tribes of Alaska
The City of Saxman
Organized Village of Saxman
KPU Electric Division - Email
KPU Email on Service for THRHA Saxman Low‐Rent Project
From: Mark Adams [mailto:MarkA@City.Ketchikan.Ak.Us]
Sent: Monday, September 14, 2015 3:57 PM
To: Craig Moore
Subject: KPU, THRHA Project
Hello Mr. Moore,
Thank you for providing the information on THRHA’s proposal to upgrade the multi‐family apartment
complex in Saxman from oil heat to air‐source heat pumps. Because of their efficiency advantages, heat
pumps are a preferred alternative to resistive electric heat options. After reviewing the energy use data
that you provided, we have determined that there is adequate electrical capacity on the distribution
circuit that feeds Saxman to accommodate the additional load of THRHA’s project.
We look forward to working with you on this project.
Thanks,
Mark
Mark Adams
Electric Operations Manager
Ketchikan Public Utilities, Electric Division
1065 Fair Street, Ketchikan, Alaska 99901
T 907.225.5505 F 907.247.0755
marka@city.ketchikan.ak.us
www.city.ketchikan.ak.us/public_utilities/electric.html
Attachment C
Heating Fuel Invoices
Following Invoices Provided:
Summary of oil invoices from 1/02/14 through 6/17/15
Electric invoices summary (1/05/12 – 12/08/14)
Consumption Trend Report
Consumption
Information
Electric Usage
KW Charge
Amount
KWH Charge
Amount
04/05/2013 4,880 $474.04 55 $474.04
03/08/2013 4,600 $412.62 55 $412.62
02/05/2013 6,720 $602.78 55 $602.78
01/07/2013 5,440 $487.97 55 $487.97
12/06/2012 4,840 $434.15 55 $434.15
11/05/2012 5,240 $470.03 55 $470.03
10/08/2012 4,560 $409.03 55 $409.03
09/05/2012 5,240 $506.33 55 $508.33
08/06/2012 4,720 $459.68 55 $459.68
07/08/2012 4.760 $463.27 55 $463.27
06/05/2012 4,720 $459.68 55 $459.68
05/07/2012 7,160 $678.55 55 $678.55
04/05/2012 6,200 $592.44 55 $592.44
03/07/2012 7,440 $667.37 55 $667.37
02/06/2012 7,480 $670.96 55 $670.96
01/05/2012 7.360 $660.19 54 $660.19
Total 150,038 $18456.32 51.324 $18456.32
Page: 2 of 2
Consumption Trend Report:
Account #
107207-001
Service Address
2708 Halibut St
Ketchikan,AK 99901
1/1/2012-12/31/2014
Mailing Address
Tlingit&Haida Regional Housing Authority
Lrph
PO Box 32237
Juneau,AK 998032237
Consumption
Information
Electric Usage
KW Charge
Amount
KWH Charge
Amount
12708/2014 22 $563.58 6,200 $563.58
11/05/2014 22 $483.58 5.320 $483.58
10/06/2014 22 $476.32 5.240 $476.32
09/05/2014 22 $447.22 4.920 $447.22
08/05/2014 22 $410.86 4.520 $410.86
07/07/2014 22 $561.72 6.040 $561.72
06/05/2014 22 $364.56 3,920 $364.56
05/12/2014 22 $472.44 5,080 $472.44
04/18/2014 22 $799.80 8,600 $799.80
03/10/2014 6.120 $548.96 55 $548.96
02/05/2014 5.720 $513.08 55 $513.08
01/06/2014 6,520 $584.84 55 $584.84
12/06/2013 4,760 $426.97 55 $426.97
11/05/2013 6,000 $538.20 55 $538.20
10/07/2013 4,600 $412.62 55 $412.62
09/05/2013 4,200 $413.04 55 $413.04
08/05/2013 5,280 $509.92 55 $509.92
07/08/2013 4,680 $456.10 55 $456.10
06/05/2013 4.640 $452.51 55 $452.51
05/06/2013 5.960 $570.91 55 $570.91
:1of2
Attachment D
Governing Body Resolution
Following Documents Provided:
Authorization and Commitment letter from THRHA President and CEO
Resolution from THRHA Board of Commissioners
Attachment E
Preliminary Study Documents
Following Documents Provided:
Heating Conversion Analysis Report by Alaska Energy Engineers, LLC
Alaska Energy Engineering LLC Technical Memorandum
25200 Amalga Harbor Road Tel/Fax: 907.789.1226 September 14, 2015
Juneau, Alaska 99801 jim@alaskaenergy.us
to: Craig Moore, V.P. Planning and Development
Tlingit-Haida Regional Housing Authority
subject: Heating Conversion Analysis
project: Saxman Multifamily Low Rent Housing
INTRODUCTION
This report presents a heating conversion analysis for the Saxman Multifamily Low Rent Housing
building. The purpose of the analysis is to compare the life cycle cost of a fuel oil boiler heating
system with an air source heat pump heating system.
Jim Rehfeldt, P.E. of Alaska Energy Engineering LLC performed the analysis.
Background
The Tlingit-Haida Regional Housing Authority (THRHA) plans to renovate, modernize, and
expand the Saxman Multifamily Low Rent building in Saxman, Alaska. The project will include a
complete replacement of the heating system because it has reached the end of its service life.
The existing heating system consists of an oil-fired boiler and high-temperature distribution
system supplying a central indirect hot water heater and baseboard units located in each
apartment. Replacing the heating system in-kind is a common, status quo option for heating
system replacement. The THRHA is interested in replacing the boiler system with an air source
heat pump system that employs low temperature distribution to supply a central domestic hot
water system and low-temperature baseboard heaters.
Conversion to an air source heat pump system is aligned with THRHA energy goals to:
• Reduce long-term operating costs
• Increase use of sustainable energy sources: electricity in Saxman is derived from
hydroelectric generation
• Increase use of local energy sources, and
• Decrease the greenhouse gas footprint of their operations
Alaska Energy Engineering LLC Page 2
ENERGY COSTS
Historic Energy Use
The Saxman Multifamily low rent housing is a 7,600-sqft facility that contains 12 apartments and
a common hallway, laundry room, kitchen and dining room. Two fuel oil boilers supply heat for
the spaces and for heating domestic hot water. Historic energy use and cost is summarized in the
following table:
The building has an energy use index (EUI) of 95, which is relatively high for THRHA facilities.
To improve the energy performance of the facility, the proposed project will increase the wall and
window insulation and install LED lighting. Converting to an air source heat pump system will
also reduce energy costs.
Energy Costs and Inflation
Energy costs and energy inflation used in the analysis are shown in the following table:
Summary of Economic and Energy Factors
Factor Rate or Cost Factor Rate or
Cost
Nominal Discount Rate 4.5% General Inflation Rate 2.5%
Electricity (2016) 11.2¢ per kWh Electricity Inflation 2.0%
Fuel Oil (2016) $3.03 / gallon Fuel Oil Inflation 4.0%
Cost of Heat Comparison
The cost of heat takes into account current energy prices, conversion efficiency, and energy
inflation. The following charts shows projected energy prices over 25-years. On the left side of
the chart is the cost of heat in 2016. Moving to right is how the costs change with energy
inflation.
Source Cost
Electricity 64,980 kWh $6,300 222 31%
Fuel Oil 3,693 Gallons $10,700 502 69%
Totals -$17,000 723 100%
Energy, MMBtu
Annual Energy Consumption and Cost
Consumption
Alaska Energy Engineering LLC Page 3
An air source heat pump offers much lower heating costs over the life of the project because it
extracts a majority of the supplied heat from the environment at no cost or energy inflation.
LIFE CYCLE COST COMPARISON
Description of Systems
The existing fuel oil boiler heating system has reached the end of its service life and will be
replaced in entirety. The analysis compares an in-kind replacement of a fuel oil boiler system
with converting to an air source heat pump system. Attached to this report is a schematic diagram
of the two systems.
Fuel Oil Boiler Option
A fuel oil boiler heating system will consist of:
• Two fuel oil boilers sized for 70% of the heating load, each with a constant speed boiler
pump.
• Two variable speed building pumps supplying high-temperature hydronic heat to apartment
baseboard heaters and to two indirect domestic hot water heaters.
The fuel oil boiler plant will have a seasonal efficiency of 75% when operated in a lead/lag
configuration.
Air Source Heat Pump Option
An air source heat pump system will consist of:
• An air source heat pump located outdoors under an enclosure that protects it from wind-
driven rain and snow and two indoor heat exchangers that transfer the heat to a low-
temperature hydronic heating system.
• A buffer tank with electric heating elements that both adds thermal mass to the system and
also provides backup heating when the heat pump requires maintenance or repair.
$0##
$10##
$20##
$30##
$40##
$50##
$60##
$70##
$80##
2016#2018#2020#2022#2024#2026#2028#2030#2032#2034#2036#2038#2040#$"/"MMBtu"Year"
Cost"of"Heat"Comparison"
Electric#Infla7on#@2%#
Fuel#Oil#Infla7on#@#4%#
Fuel#Oil#Boiler#
Air#Source#Heat#Pump#
Alaska Energy Engineering LLC Page 4
• Two variable speed building pumps supplying low-temperature hydronic heat to apartment
baseboard heaters and to an indirect domestic hot water preheat tank
• An electric hot water heater that increases the hot water temperature to 125°F for distribution
to the fixtures.
The air source heat pump sized at 80% of the design heating load will supply 95% of the heating
load. The backup electric buffer tank supplement during cold weather and the electric hot water
heater will also supply supplemental heat to maintain a hot water supply temperature of 125°F.
Life Cycle Cost Comparison
Construction Costs
As expected for a system with higher efficiency, the ASHP system has higher construction costs
than the fuel oil boiler system. The higher cost is primarily attributed to the following features of
the ASHP system:
• The heat pump costs more than a fuel oil boiler per Btu of delivered heat.
• The electrical service will be upgraded from 240v/1φ to 208v/3φ service. This will also
require a rate schedule change from residential service to commercial service.
• The ASHP system requires a low temperature distribution system with larger pumps and
piping and higher cost baseboard heaters.
Maintenance Costs
The air source heat pump system has moderately higher maintenance costs associated with
maintaining the outdoor units, including factory-trained maintenance every five-years. The
outdoor units must also be replaced at the end of their expected service life of 15 years.
The fuel oil boilers require annual maintenance for the burner and to clean the combustion
passages.
Energy Costs
The following table summarizes the energy analysis of the two heating options. The ASHP
system offers a significant reduction in energy use and costs.
Energy Analysis
Item Fuel Oil Boilers Air Source Heat Pump
Heating Plant Sizing Two at 70% each ASHP: 80%
Electric Tank: 100%
Seasonal Efficiency 72% 233%
Annual Energy Use Oil: 4,058 gal Elec: 57,703 kWh
Elec: 1,690 kWh
Annual Energy Cost (2016) $12,500 $7,300 1
Energy Use Index, kBtu/sqft 94 51
Energy Cost Index, $/sqft $2.22 $1.65
1. Includes a cost of 1.2¢ per kWh for non-heating electricity as a result of changing the building
electric service from residential to commercial rates.
Alaska Energy Engineering LLC Page 5
Life Cycle Cost Comparison
Both options have essentially equal life cycle cost. The air source heat pump has the lowest
energy costs and the fuel oil boiler system has lower construction and maintenance costs.
Life Cycle Cost Comparison
Component Fuel Oil Boiler Air Source Heat Pump % Difference
Construction Costs $239,000 $385,000 +61%
Maintenance Costs $34,000 $47,000 +38%
Energy Costs $292,000 $136,000 -53%
Total Life Cycle Cost $565,000 $568,000 +1% 1
1. Within the accuracy of the analysis, the two projects have essentially equal life cycle costs.
SUMMARY
Building Owners typically require a reasonable savings on their investment—typically in the
range of 5-10%—as incentive to undertake the effort and risk of a heating system conversion. In
this project, the heating system is failing and must be replaced; THRHA must endure a level of
effort and risk regardless of which heating option they choose, lowering their needed return on
investment.
For THRHA, this conversion offers several financial and operational benefits that promote
conversion. The main benefit is a significant reduction in annual operating costs, helping to keep
rents low. An ASHP conversion is also aligned with THRHA’s goal to transition away from fuel
oil toward sustainable, local energy sources. A high percentage of Saxman’s power is expected to
be renewable hydroelectric power throughout the life of the system. As such, an ASHP system
also has lower environmental impacts because it does not emit greenhouse gases.
This project can also benefit other building owners in Saxman and other Alaska communities in
the following ways:
• Hydroelectric communities are promoting heat pump heating as an efficient use of
hydroelectric resources. The project demonstrates heat pump conversion of an existing
building.
• Air source heat pump technology has improved greatly in the last five years to the point that
they are viable systems in the relatively warmer climate of coastal Alaska. As the technology
continues to gain efficiency, the lessons learned from this conversion will benefit more areas
of Alaska.
• The recent drop in oil prices may lead to complacency in addressing future energy issues. By
promoting heat pump technology and demonstrating its success now, the THRHA can make
positive steps toward improving energy efficiency and lowering long-term energy costs.
Replacing a heating system in-kind is the often chosen path for building owners, especially for
similar buildings with relatively modest heating loads. This project will successfully demonstrate
that heat pump technology is a viable option that offers long-term benefits to THRHA.
by:
Jim Rehfeldt, P.E.
Page 1
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 jim@alaskaenergy.us
THRHA Saxman Low Rent Housing
Sizing and Energy Analysis
Building Loads
Heating Design Load, MBH Energy, kBTU
150 404,678
Fuel Oil Boiler System
Sizing Analysis
Boilers Boiler Design Load, MBH Factor Boiler MBH
B-1 150 70%105
B-2 150 70%105
140%210
Pumps Pump GPM Head η, pump Pump, BHP η, motor
Boiler 11 12 50%0.06 70%
Building 15 20 50%0.15 70%
Energy Analysis
Fuel Oil Boilers Load, kBTU % Load Net, kBTU Efficiency kBTU/gal Fuel, gals
404,678 100%404,678 72%138.5 4,058
Heating Pumping Pump Ave GPM Ave Head kW Hours kWh
Boiler 11 12 0.07 3,854 274
Building 15 20 0.16 8,760 1,416
1,690
Air Source Heat Pump System
Sizing Analysis
Heating Equipment Equip Design MBH Factor Size, MBH Effic kW
ASHP-1 100 78%78 200%11
Elec Boiler 150 102%154 100%45
Total 232
Heat Exchangers Equip Design MBH Factor Size, MBH
HEX-1 78 60%47
HEX-2 78 60%47
94
Pumps Pump GPM Head η, pump Pump, BHP η, motor
HEX Pump 9 10 50%0.05 70%
HEX Pump 9 10 50%0.05 70%
Elec Boiler 31 12 50%0.19 70%
Building 31 20 50%0.31 70%
September 14, 2015
Page 2
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 jim@alaskaenergy.us
THRHA Saxman Low Rent Housing
Sizing and Energy Analysis
September 14, 2015
Energy Analysis Load, kBTU % Load Net, kBTU
Heat Pumps 404,678 95%384,444
Month % Load Load kBtu Ave Temp COP Input kBtu kWh
Jan 12%46,133 34 1.9 24,198 7,092
Feb 10%38,444 36 2.0 19,198 5,627
Mar 10%38,444 38 2.1 18,191 5,331
Apr 8%30,756 41 2.3 13,346 3,911
May 6%23,067 47 2.7 8,396 2,461
Jun 5%19,222 50 3.0 6,456 1,892
Jul 5%19,222 55 3.3 5,786 1,696
Aug 6%23,067 56 3.4 6,826 2,001
Sep 8%30,756 53 3.2 9,630 2,822
Oct 9%34,600 45 2.6 13,338 3,909
Nov 10%38,444 40 2.2 17,180 5,035
Dec 11%42,289 33 1.9 22,683 6,648
100%384,444 233%165,229 48,426
Electric Boiler Load, kBTU % Load Net, kBTU Efficiency kBTU/kWh kWh
404,678 5%20,234 95%3.4 6,242
Pumps Pump Ave GPM Ave Head kW Hours kWh
HEX Pump 9 10 0.1 7,500 378
HEX Pump 9 10 0.1 1,500 76
Elec Boiler 31 12 0.2 500 99
Building 31 20 0.3 7,500 2,482
3,035
Electric Service Capacity
Spare Capacity
Service Size: 240 volts / 400A 96 kVA
Capacity kVA (Assume 80%)77 kVA
Capacity kW (Assume 90% PF)69 kW
Peak Load 55 kW
Spare capacity 14 kW
Increased Electric Service Qty kW, ea Total kW kVA @ 90% PF Volts Amps
Existing Service 1 86 86 96 208 265
Heat Pump 1 11 11 13 208 35
Electric Buffer Tank 1 30 30 33 208 93
Electric HW Tank 1 21 21 23 208 65
148 165 208 458
Page 3
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@gci.net
THRHA Saxman Low Rent Housing
Fuel Oil Boiler System
Basis
25 Study Period (years)2.5%General Inflation
4.5%Nominal Discount Rate 4.0%Fuel Inflation
2.0%Real Discount Rate 2.0%Electricity Inflation
Construction Costs Qty Unit Base Cost Year 0 Cost
Hydronic Heating System
Heating Plant
Fuel Oil System
Boiler fuel oil piping 2 LS $500.00 $1,000
Primary Loop
Fuel oil boilers 105 MBH 2 LS $6,500.00 $13,000
Boiler stack 30 lnft 150.00 $4,500
Primary piping and appurtenances for each boiler 1-1/4"2 LS $1,500.00 $3,000
Primary supply and return header 1-1/2"10 lnft $35.00 $350
Primary pump, pipe mounted 1/10 HP 2 LS $750.00 $1,500
Secondary loop
Secondary pumps 1/4 HP 2 ea 1,500.00 $3,000
Secondary piping and appurtenances (boiler room)1-1/2"1 lot 3,000.00 $3,000
Building loop 1"900 lnft 30.00 $27,000
Finned pipe branches 3/4"520 lnft 25.00 $13,000
Finned pipe convectors 300 lnft 75.00 $22,500
Thermostats and control valves 13 ea 250.00 $3,250
Domestic Hot Water System
Indirect HW heater, AV, piping, etc.120 gallon 2 ea 8,700.00 $17,400
Miscellaneous
Test and balance 40 hrs 150.00 $6,000
Commission heating system 1 lot 4,000.00 $4,000
Electrical
Three phase service 0 ea 5,000.00 $0
Single phase service 8 ea 1,500.00 $12,000
Contingencies
Estimating contingency 15%$20,175
Overhead & profit 30%$46,403
Design fees 10%$20,108
Project management 8%$17,695
Total Construction Costs $239,000
September 14, 2015
Year
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0
0
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0
0
0
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Page 4
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@gci.net
THRHA Saxman Low Rent Housing
Fuel Oil Boiler System
September 14, 2015
Annual Costs Maintenance $40.00 Qty Unit Base Cost Present Value
Heating Plant
Plant Observation
Daily Heating Plant Observation 30 min/mo 1 -25 6 hrs $40.00 $4,622
Fuel Oil Boilers
Fuel Oil Boiler Maintenance
Parts Allowance, each 1 -25 2 LS $200.00 $7,704
Annual, each 8 hours/year 1 -25 16 hrs $40.00 $12,326
Pumps
Pump maintenance, cartridge 1 -25 4 ea $100.00 $7,704
Domestic Hot Water
Indirect HW heater 2 1 1 -25 2 hrs $40.00 $1,541
Total Annual Costs $34,000
Energy Costs Qty Unit Base Cost Present Value
Fuel Oil 1 -25 4,058 gallon $3.03 $288,652
Electricity 1 -25 1,690 kWh $0.099 $3,098
Total Energy Costs $292,000
$565,000Present Worth
Years
Years
Page 5
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@gci.net
THRHA Saxman Low Rent Housing
Air Source Heat Pump System
Basis
25 Study Period (years)2.5%General Inflation
4.5%Nominal Discount Rate 4.0%Fuel Inflation
2.0%Real Discount Rate 2.0%Electricity Inflation
Construction Costs Qty Unit Base Cost Year 0 Cost
Air Source Heat Pumps
Outdoor units 1 ea $18,000.00 $18,000
Enclosure 1 ea $2,500.00 $2,500
Refrigerant piping 2 ea $1,000.00 $2,000
Indoor HEX units 2 ea $7,500.00 $15,000
Piping to building heating loop 2 ea $1,500.00 $3,000
HEX pumps 2 ea $1,000.00 $2,000
Hydronic Heating System
Heating Plant
Primary Loop
Buffer Tank, Electric backup 200 gallons, 30 kW 1 LS $12,000.00 $12,000
Boiler piping and appurtenances 2"1 LS $2,000.00 $2,000
Primary supply and return header 2"10 lnft $42.00 $420
Primary pump, pipe mounted 1/4 HP 1 LS $1,000.00 $1,000
Secondary loop
Secondary pumps 1/2 HP 2 ea 1,750.00 $3,500
Secondary piping and appurtenances (boiler room)2"1 lot 3,500.00 $3,500
Building loop 1-1/4"900 lnft 35.00 $31,500
Finned pipe branches 3/4"520 ea 25.00 $13,000
Finned pipe convectors 300 lnft 90.00 $27,000
Thermostats and control valves 13 ea 250.00 $3,250
Domestic Hot Water System
Indirect HW heater, AV, piping, etc.120 gallon 1 ea 8,700.00 $8,700
Electric hot water heater 120 gallon, 21kW 1 ea 7,000.00 $7,000
Miscellaneous
Test and balance 40 hrs 150.00 $6,000
Commission heating system 1 lot 5,000.00 $5,000
Electrical
Three phase service 3 ea 5,000.00 $15,000
Single phase service 6 ea 1,500.00 $9,000
CT Enclosure 1 LS 5,000.00 $5,000
208v/3-phase panel 1 LS 7,000.00 $7,000
Connect existing panel 1 LS 2,500.00 $2,500
Upgrade service from 240v/1-phase to 208v/3-phase 1 LS 20,000.00 $20,000
Contingencies
Estimating contingency 15%$30,731
Overhead & profit 30%$70,680
Design fees 10%$30,628
Project management 8%$28,553
Total Construction Costs $385,000
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September 14, 2015
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Page 6
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@gci.net
THRHA Saxman Low Rent Housing
Air Source Heat Pump System
September 14, 2015
Annual Costs Maintenance $40.00 Qty Unit Base Cost Present Value
Heating Plant
Plant Observation
Daily Heating Plant Observation 30 min/mo 1 -25 6 hrs $40.00 $4,622
Air-source Heat Pump Maintenance
Parts Allowance 1 -25 1 LS $200.00 $3,852
Monthly 0.5 hours/month 1 -25 6 hrs $40.00 $4,622
Every Three Months 0.67 hours/3 months 1 -25 3 hrs $40.00 $2,054
Annual 8 hours/year 1 -25 8 hrs $40.00 $6,163
Five Year Maintenance 4 hours/year 5 -5 4 hrs $110.00 $392
Five Year Maintenance 4 hours/year 10 -10 4 hrs $110.00 $356
Five Year Maintenance 4 hours/year 15 -15 4 hrs $110.00 $323
Five Year Maintenance 4 hours/year 20 -20 4 hrs $110.00 $293
Electric buffer tank 1 -25 1 hrs $40.00 $770
Air-source Heat Pump Replacement
Replace outdoor units 15 -15 1 LS $13,500.00 $9,910
Pumps
Pump maintenance, cartridge 1 -25 2 ea $100.00 $3,852
Pump maintenance, pipe mounted 1 -25 3 ea $150.00 $8,667
Domestic Hot Water
Indirect HW heater 1 -25 1 hrs $40.00 $770
Electric HW Heater 1 -25 1 hrs $40.00 $770
Total Annual Costs $47,000
Energy Costs Qty Unit Base Cost Present Value
Fuel Oil 1 -25 0 gallon $3.03 $0
Electricity (Non-HVAC cost increase due to rate change)1 -25 69,000 kWh $0.012 $15,597
Electricity (Heating System)1 -25 57,703 kWh $0.112 $119,956
Total Energy Costs $136,000
$568,000
Years
Present Worth
Years
Attachment F
Summary of Project Costs, Requested Funding,
and Matching
Following Documents Provided:
Summary of Project Costs, Grant Requested Funding, and Matching Costs
Summary of In-Kind Matching by THRHA Staff
Invoice for Weatherization and Insulation for Match Documentation
AEA Grant Application ‐ 9/15/15Attachment FSaxman Low‐Rent Multifamily Air Source Heat Pump Project Air Source Heat Pump System Project Costs from AEE Study (Attachment E) Amount Estimate SourceAir Source Heat Pumps and Low Temperature Hydronic System $256,319AEE Estimate (see Attachment E)Electrical service upgrade from 240v/1‐ph to 208v/3‐ph accommodate heat pumps $20,000AEE EstimateElectrical work onsite for new mechanical room/new service $38,500AEE EstimateTesting, Balancing, and Commissioning $11,000AEE EstimateEngineering, Design, and Permitting (Design Phase <20% of Construction Phase) $30,628AEE EstimateProject management $28,553 AEE EstimateTotal $385,000Additional Air Source Heat Pump Project CostsMetering for system monitoring as described in Grant Application Section 5.4.5 $9,091 WESEE EstimateInstallation of new HRV for corridor and new common spaces $43,000THRHA Estimate from Kake CostsNew 18'x10' mechanical room to house heat pump equipment $10,000THRHA EstimateTotal$62,091In‐kind Matching and Additional Energy Efficiency Work for MatchSaxman facility energy efficiency projects in past 5 years $28,890THRHA Records (attached)New energy efficient lighting $13,000THRHA Estimate from Kake CostsTHRHA time to manage design, contracts, and grant administration $20,250THRHA Estimate (summary attached)Total$62,140Total Air Source Heat Pump Project Cost + Matching $509,231Key project line items requested as funded by grantAmount Estimate Source Funding SourceAir Source Heat Pumps and Low Temperature Hydronic System $256,319AEE Estimate (see Attachment E) AEA Grant RequestEngineering, Design, and Permitting (Design Phase <20% of Construction Phase) $30,628AEE Estimate AEA Grant RequestMetering for system monitoring as described in Grant Application Section 5.4.5 $9,091 WESEE Estimate AEA Grant RequestTotal Grant Request $296,038Direct Project Cash Matching Amount Estimate Source Funding SourceProject management $28,553 AEE Estimate IHBG / THRHA Captial BudgetElectrical service upgrade from 240v/1‐ph to 208v/3‐ph accommodate heat pumps $20,000THRHA / KPU Estimate IHBG / THRHA Captial BudgetElectrical work onsite for new mechanical room/new service $38,500AEE Estimate IHBG / THRHA Captial BudgetTesting, Balancing, and Commissioning $11,000AEE Estimate IHBG / THRHA Captial BudgetInstall new HRV for corridor and new common spaces $43,000THRHA Estimate from Kake Costs IHBG / THRHA Captial BudgetNew 18'x10' mechanical room to house heat pump equipment $10,000THRHA Estimate IHBG / THRHA Captial Budget$151,053Additional Cash MatchNew energy efficient lighting $13,000THRHA Estimate from Kake Costs IHBG / THRHA Captial Budget$164,053In‐Kind MatchingSaxman facility energy efficiency projects in past 5 years $28,890THRHA Records (attached) IHBG / THRHA Captial BudgetTHRHA time to manage design, contracts, and grant administration $20,250THRHA Estimate (summary attached) THRHA Staff Hours$49,140Total Match $213,193Total In‐Kind Match Matching Summary Total Direct Project Cash MatchGrant Request Summary Project Cost Summary Total Cash MatchTHRHA Tlingit Haida Regional Housing AuthorityF‐1
AEA Grant Application ‐ 9/15/15Attachment FSaxman Low‐Rent Multifamily Air Source Heat Pump Project Milestone Tasks Start Date End DateProject Line‐Item CostTHRHA Oversight HoursAverage THRHA Loaded Hourly Rate*In‐Kind Match1‐Project Scoping / Contractor SolicitationIssue design RFP and select contractor 7/1/2016 7/29/2016 $1,000 50 $50.00 $2,5002‐Final System Design / PermittingFinal design / construction documents and submit application / obtain building permit7/30/2016 9/6/2016 $20,000 70 $50.00 $3,5003‐Final Cost Estimate / Updated FinancialsFinalize construction cost estimate and financial analysis9/6/2016 9/13/2016 $9,000 10 $50.00 $5004‐AEA Review / Approval to ProceedIssue documents to AEA for review, approval to move to Construction Phase9/13/2016 10/2/2016 $628 20 $50.00 $1,000Totals $30,628 150 $7,500Milestone Tasks Start Date End DateProject Line‐Item CostTHRHA Oversight HoursAverage THRHA Loaded Hourly Rate*In‐Kind Match5‐Develop Bid DocumentsUse design documents, put together solicitation, and submit for review and approval by AEA10/2/2016 10/21/2016 $5,000 30 $50.00 $1,5006‐Vendor Selection and AwardRun bid process, select contractor(s), negotiate / sign contract10/22/2016 11/19/2016 $3,000 50 $50.00 $2,5007‐ConstructionConstruction and construction management and oversight by THRHA11/19/2016 4/13/2017 $422,372 150 $50.00 $7,5008‐Integration and Testing Testing and balancing, prepare for change over 4/13/2017 4/20/2017 $6,000 5 $50.00 $2509‐Change Over / Decommissioning of Old SystemChange over and remove extraneous equipment 4/20/2017 4/25/2017 $5,000 10 $50.00 $50010‐Commissioning and Final AcceptanceCommissioning, final punch list, and acceptance of project as complete4/25/2017 5/4/2017 $5,000 10 $50.00 $50011‐Operations Monitoring and ReportingOngoing monitoring and reporting to AEA for 10 years5/4/2017 7/1/2027Totals $446,372 255 $12,750Design and Permitting PhaseConstruction PhaseSummary of THRHA Staff In‐Kind Matching *Note that the loaded hourly rate covers time spent on grant administration, contract administration, project/contract management, and technical design review by key THRHA staff, including VP of Development & Construction Management, Planning and Grant Administration, VP of Administration, and Operations Management.THRHA Tlingit Haida Regional Housing AuthorityF‐2
Attachment G
Heat Pump Checklist with Summary Answers to
Facilitate Application Review
Following Documents Provided:
Heat pump checklist with summary answers to facilitate application review
Lease with City of Saxman for Land on Which Facility Is Located
THRHA Saxman Low-Rent Multifamily Air Source Heat Pump Project
Checklist Responses
To facilitate review of the THRHA application, THRHA has provided the following information in this
checklist format. This data is provided in additional detail through the grant application sections and
attachments.
Alaska Energy Authority
Renewable Energy Fund Application – Heat Pump Best Practices Checklist
The following checklist contains detail items that are critical to the success of a Renewable Energy
Fund application. The intent of the checklist is to aid applicants in the submission of a comprehensive
project proposal.
Economic Analysis
Assumptions and their sources are clearly identified:
o Heat demand (monthly)
The following table from the application presents the monthly average demand in Btu/hr. This was developed to
assist with sizing of the system. This includes both space heating and DHW.
Table 5.4.4-1 – Monthly Average Heating Demands on System (Space Heat and DHW)
o Cost of diesel and electricity
The latest cost of diesel is currently $2.91 as shown by the most recent invoice listed in the invoice summary
attachment. This is inflated at a rate of 4% for 1 year to obtain the value used for the project if it were to be
funded, and thus implemented in 2016-2017. The value used in the report is $3.03/gallon. The current cost of
electricity is approximately $0.10/kWh with the current rate. However, a value of $0.112 is used in the report.
Month
Monthly Average
Heat Demand,
Btu/hr
Jan 79,348
Feb 66,586
Mar 56,212
Apr 40,722
May 29,651
Jun 26,140
Jul 25,090
Aug 24,945
Sep 21,847
Oct 45,855
Nov 58,199
Dec 71,700
This is an estimate based on the need to upgrade the service to the facility to 3-phase, which pushes the facility
into a new commercial rate.
o System COP range
The system range of COP to provide 115oF water is 1.9 to 3.4 depending on the outdoor conditions. The
average over the course of the year based on analysis of the annual average weather data is 2.33. Note that these
values may be able to be improved if the system is optimized during operation to use lower temperature water
for space heating when it is able and there is not a call for DHW. However, this possibility is not considered in
the analysis.
o Parasitic loads
The pumping loads and power for auxiliary equipment is estimated at approximately 3,035 kWh per year per the
AEE evaluation (Attachment E). This is included in the annual electric usage when comparing this system to
the oil/status quo option and for calculating savings. Regarding thermal parasitic loads, the difference between
this system and an oil system is accounted for the estimated seasonal efficiencies for heat generation. The high
temperature hydronic and oil boiler system necessarily has significantly more losses due to the need to remain
“hot” and stand-by losses of the boiler, cycling of the boiler, and higher temperatures in the distribution piping
and boiler room equipment.
o Fuel conversion efficiency of existing system
The fuel (electric) conversion efficiency of the system ranges during the year as identified in the COP
discussion. The seasonal value estimated based on supplying 115oF water for heating and DHW is 233%.
o Estimated maintenance and operating costs; rationale of the estimates discussed
The first-year O&M cost is estimated at $2,662. This is pulled from the AEE O&M cost breakdown the life-
cycle cost analysis. Note that this also includes banking of dollars for a replacement of key heat pump
equipment at year 15. This value is approximately $900 more per year than the annual cost to maintain the oil
equipment. Factoring in life-cycle costs, equipment maintenance schedules, and the time value of money, the
present value of 25-years of operation is estimated at $47,000 for the heat pump system as compared to $34,000
for the oil system. See the “Life-Cycle Cost Comparison” table in Attachment E (AEE report).
o Estimated replacement intervals and cost for key system components
These are listed in the O&M breakdown in Attachment E (AEE report) on page 6 of the life-cycle cost analysis
(last page of Attachment E).
How do fuel and electricity cost projections compare to those used by AEA in proposal review?
The Saxman analysis was completed using $3.03 per gallon for diesel for 2016/17 when the project would start
operation if funded. The AEA projections for KPU / Ketchikan for 2015, 2016, and 2017 are $3.59, $4.26, and
$4.48 respectively. Thus, the Saxman analysis is conservative compared to AEA’s projections, and increasing
to the AEA projected values would significantly improve overall life-cycle cost values. The value used for
electric in the Saxman analysis ($0.112/kWh) is slightly higher than the AEA projections that start at $0.097 in
2015 and climb to $0.102 in 2017. This higher value is more conservative/reduces the payback for the heat
pump system when compared to the oil/status quo system.
Design Considerations
Average and peak heat loads
Average loads are shown in the table identified in the economic analysis. The peak heat loads are modeled at
100,000 Btu/hr for space heating and 50,000 Btu/hr for DHW. Note that these loads rarely occur coincidentally,
and the DHW tank provides for spreading out the DHW demand.
Assumed system COP range
The COP is estimated based on average outdoor weather conditions over the course of the year and providing
115oF water on the hydronic side of the heat pump. The range in COP was from 1.9-3.4, and the average across
the analysis for the year was 2.3.
Assumed heat source temperature range (ground, air, water)
The assumed heat source (air) temperature was based on average local weather conditions as they vary
throughout the year.
Thermal conductivity test (or flow test for open loop systems)
Not applicable.
How is heat pump system sized relative to peak load? Would a hybrid system improve the
project economics?
The system is sized to 78% of the peak space heating demand. The system has electric resistance backup to
cover peak demands.
What is the anticipated utilization of the heat pump system’s capacity on an annual basis?
It is estimated that the heat pump will cover 95% of annual demands based on the system model. The electric
resistance will be used as needed to allow for peaking to cover an estimated 5% of the annual demands.
The integration of the proposed system into the existing heating system is discussed, including
thermal storage if planned. Are changes to existing heat delivery system needed?
The system would be incorporated into the building through installation of a new low-temperature hydronic
system using new main and distribution piping and new low-temperature radiant heat emitters in each residence
unit. The system will also feed coils in a new HRV system for the main spaces. The system includes a buffer
tank with backup electric resistance, and a domestic hot water tank with backup electric resistance.
Efficiency upgrades anticipated?
The low temperature hydronic system would be an efficiency upgrade in and of itself. Additionally, the
installation of the HRV system for ventilation improves overall efficiency while increasing indoor air quality,
past weatherization and insulation has been completed on this facility, and energy efficient lighting will be
installed.
What monitoring equipment will be installed and how will system data be collected and
transmitted?
The monitoring system is described in detail in Section 5.4.5 and includes monitoring of the electric usage of the
heat pump, electric buffer tank, and electric water heater, as well as the heat delivered to the building space
heating loop and domestic water. This will be accomplished with three current transformers and two Btu
meters. The Btu meters will measure flow, supply temperature, and return temperature for each water loop
identified. The data will be collected and integrated into one data logging computer that has the capability to
output the data to a spreadsheet as well as to a website for potential integration with AEA automated data
collection in the future.
Existing Heating System
The design of the existing system is clearly described including the operating temperature
range.
The existing system is an oil-fired boiler system with two 212,000 Btu/hr boilers (oversized for load) that
provide 180oF water to a hydronic distribution system with radiant heat emitters. There is indirect heating of
domestic water from these oil fired boilers. This system is aging and due for replacement. THRHA is planning
to replace portions of this system with an upcoming renovation in 2016-2017 as the least cost upfront option.
However, THRHA would like to pursue a more energy efficient option that will reduce long-term operating
costs and utilizing renewable energy resources. If funding is available to help offset the capital investment,
THRHA will change over the renovation to a new low-temperature hydronic system fueled by an air-to-water
heat pump system.
Is the current system at or near the end of its design life?
Yes. A replacement of key portions of the system is planned for 2016-2017.
Will the system be removed or maintained for backup or peaking?
If this project is funded, the oil and high temperature hydronic system will be removed.
Environmental/Permitting
Contaminated sites database checked
Not applicable.
Site control
Site control must be finalized before construction funds are committed. Site control for
pipelines and transmission or distribution power lines may be established using easements or
utility right-of-ways so long as the period of the agreement meets or exceeds the intended life
of the project
Proof of valid title to the land and/or written documentation of any private agreements is
required.
The landowner must warrant that there are no liens or encumbrances on the property.
Final proof of ownership shall be the certificate to plat.
The grantee shall be responsible for resolving any land ownership disputes between state
and/or federal entities, local landowners, native corporations, municipalities, boroughs and
community organizations, or other entities.
If the project site is adjacent to or near an airport or runway, the grantee must research FAA
permit requirements, existing or pending leases and easements, and DOT expansion or
relocation plans
Land transfers required for project development shall be recorded with the appropriate District
Recording office and a copy of the recordation provided to the AEA grant manager
The facility is owned and controlled by THRHA. THRHA does not technically own the land on which the
facility is located, and has a long-standing lease dating to 1977 with the City of Saxman. The City and THRHA
have an excellent working arrangement, and there is no discussion about the lease being changed. Further, the
City of Saxman has provided a letter of support for this project, which states that the THRHA’s low-rent
housing is “much needed” for residents in the community. A copy of the lease is attached with this checklist.
List of reference websites
http://www.cchrc.org/ground-source-heat-pumps
http://www.igshpa.okstate.edu/publication/manuals.htm#5
http://www.seventhwave.org/new-technologies/variable-refrigerant-flow-vrf
http://www.seventhwave.org/hygchp
http://www.retscreen.net/ang/home.php
http://dnr.alaska.gov/mlw/survey/unorganized_borough/unorgborough.htm
Common Pitfalls
Mismatch between assumed heat loads and what fuel records indicate
Note that past fuel records show 3,693 gallons of oil used annual for space heating and hot water as shown on
Page 2 of Attachment E. The renovation in 2016-2017 will add approximately 1,020 square feet of conditioned
space to the existing 7,600 square foot building. AEE has modeled the new building to obtain the annual
baseline oil usage of 4,058 gallons, and this value is used when comparing the fuel oil / status quo option to the
air-to-water heat pump and low temperature hydronic system.