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HomeMy WebLinkAboutEek REF Round 9 Application RFA#16012 Heat Recovery Alaska Energy Authority – AEA 16012 Renewable Energy Grant Application H CITY OF EEK City of Eek ALASKA ENERGY AUTHORITY – AEA 16012 RENEWABLE ENERGY GRANT APPLICATION APPLICATION CONTENTS  AEA HEAT PROJECT APPLICATION – SECTION 1 THROUGH 12  AUTHORIZED SIGNERS – SECTION 13  ADDITIONAL DOCUMENTATION AND CERTIFICATION – SECTION 14  RESUMES  LETTERS OF SUPPORT  INVOICES  GOVERNING BODY RESOLUTION  APPENDIX  EEK HEAT RECOVERY FEASIBILITY STUDY (2015)  EEK WATER TREATMENT PLANT AUDIT / WASHETERIA REPORT (2011)  LIST OF AEA GRANTS THAT ANTHC HAS MANAGED (2009-2014) Renewable Energy Fund Round IX Grant Application – Heat Projects Application Forms and Instructions This instruction page and the following grant application constitutes the Grant Application Form for Round VIII of the Renewable Energy Fund Heat Projects only. If your application is for energy projects that will not primarily produce heat, please use the standard application form (see RFA section 1.5). An electronic version of the Request for Applications (RFA) and both application forms are available online at: http://www.akenergyauthority.org/Programs/Renewable-Energy- Fund/Rounds#round9. • If you need technical assistance filling out this application, please contact Shawn Calfa, the Alaska Energy Authority Grants Administrator at (907) 771-3031 or at scalfa@aidea.org. • If you are applying for grants for more than one project, provide separate application forms for each project. • Multiple phases (e.g. final design, construction) for the same project may be submitted as one application. • If you are applying for grant funding for more than one phase of a project, provide milestones and budget for each phase of the project. • In order to ensure that grants provide sufficient benefit to the public, AEA may limit recommendations for grants to preliminary development phases in accordance with 3 ACC 107.605(1). • If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are completed and funding for an advanced phase is warranted. Supporting documentation may include, but is not limited to, reports, conceptual or final designs, models, photos, maps, proof of site control, utility agreements, power sale agreements, relevant data sets, and other materials. Please provide a list of supporting documents in Section 11 of this application and attach the documents to your application. • If you have additional information or reports you would like the Authority to consider in reviewing your application, either provide an electronic version of the document with your submission or reference a web link where it can be downloaded or reviewed. Please provide a list of additional information; including any web links, in section 12 of this application and attach the documents to your application. For guidance on application best practices please refer to the resource specific Best Practices Checklists; links to the checklists can be found in the appendices list at the end of the accompanying REF Round IX RFA. • In the sections below, please enter responses in the spaces provided. You may add additional rows or space to the form to provide sufficient space for the information, or attach additional sheets if needed. REMINDER: • Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials submitted to the Authority may be subject to disclosure requirements under the act if no statutory exemptions apply. • All applications received will be posted on the Authority web site after final recommendations are made to the legislature. AEA 16012 Page 1 of 27 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects • In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or proprietary company data be kept confidential subject to review and approval by the Authority. If you want information to be kept confidential the applicant must: o Request the information be kept confidential. o Clearly identify the information that is the trade secret or proprietary in their application. o Receive concurrence from the Authority that the information will be kept confidential. If the Authority determines it is not confidential it will be treated as a public record in accordance with AS 40.25 or returned to the applicant upon request. AEA 16012 Page 2 of 27 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects SECTION 1 – APPLICANT INFORMATION Please specify the legal grantee that will own, operate and maintain the project upon completion. Name (Name of utility, IPP, local government or other government entity) City of Eek Type of Entity: City Fiscal Year End: June 30 Tax ID #: 92-0038922 Tax Status: ☐ For-profit ☐ Non-profit ☒ Government (check one) Date of last financial statement audit: May 14th, 2015 (State of Alaska DCRA) Mailing Address: Physical Address: PO Box 09 Water Treatment Plant & Washeteria Eek, Alaska 99578 Eek, Alaska 99578 Telephone: Fax: Email: (907) 536-5129 (907) 536-5711 Cityofeek@yahoo.com 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Title: Program Manager, Rural Energy Initiative Name: Eric Hanssen, P.E., LEED AP Mailing Address: Alaska Native Tribal Health Consortium Division of Environmental Health & Engineering Rural Energy Program Initiative 3900 Ambassador Drive, Suite 301 Anchorage, Alaska 99508 Telephone: Fax: Email: (907) 729-3620 (907) 729-4090 echanssen@anthc.org 1.1.1 APPLICANT SIGNATORY AUTHORITY CONTACT INFORMATION Name: Carlie Beebe Title: Mayor Mailing Address: PO Box 09 Eek, AK 99578 Telephone: Fax: Email: (907) 536-5129 (907) 536-5711 Cityofeek@yahoo.com 1.1.2 APPLICANT ALTERNATE POINTS OF CONTACT Name Telephone: Fax: Email: Sharnel Vale 907-729-4065 907-729-3571 sdvale@anthc.org AEA 16012 Page 3 of 27 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects Sharon Anderson (907) 729-3480 (907) 729-3652 smanderson@anthc.org 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) ☐ An electric utility holding a certificate of public convenience and necessity under AS 42.05, or ☐ An independent power producer in accordance with 3 AAC 107.695 (a) (1), or ☒ A local government, or ☐ A governmental entity (which includes tribal councils and housing authorities) 1.2 APPLICANT MINIMUM REQUIREMENTS (continued) Please check as appropriate. ☒ 1.2.2 Attached to this application is formal approval and endorsement for the project by the applicant’s board of directors, executive management, or other governing authority. If the applicant is a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate by checking the box) ☒ 1.2.3 As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement (Section 3 of the RFA). (Indicate by checking the box) ☒ 1.2.4 If awarded the grant, we can comply with all terms and conditions of the award as identified in the Standard Grant Agreement template at http://www.akenergyauthority.org/Programs/Renewable-Energy-Fund/Rounds#round9. (Any exceptions should be clearly noted and submitted with the application.) (Indicate by checking the box) ☒ 1.2.5 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public. If no please describe the nature of the project and who will be the primary beneficiaries. (Indicate yes by checking the box) AEA 16012 Page 4 of 27 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects SECTION 2 – PROJECT SUMMARY This section is intended to be no more than a 2-3 page overview of your project. 2.1 Project Title – (Provide a 4 to 7 word title for your project). Type in space below. Eek Water System Heat Recovery 2.2 Project Location – Include the physical location of your project and name(s) of the community or communities that will benefit from your project in the subsections below. 2.2.1 Location of Project – Latitude and longitude (preferred), street address, or community name. Latitude and longitude coordinates may be obtained from Google Maps by finding you project’s location on the map and then right clicking with the mouse and selecting “What is here? The coordinates will be displayed in the Google search window above the map in a format as follows: 61.195676.-149.898663. If you would like assistance obtaining this information please contact AEA at 907-771-3031. 60.219142,-162.024822 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. Eek, Alaska 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type ☐ Wind to Heat ☐ Biomass or Biofuels ☐ Hydro to Heat ☐ Solar Thermal ☒ Heat Recovery from Existing Sources ☐ Heat Pumps ☐ Other (Describe) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Pre-Construction Construction ☐ Reconnaissance ☒ Final Design and Permitting ☐ Feasibility and Conceptual Design ☒ Construction and Commissioning AEA 16012 Page 5 of 27 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of the proposed heat project. The proposed project will take recovered heat from the existing Alaska Village Electric Cooperative (AVEC) power plant and use it to heat the City of Eek’s water system via a heating connection into the circulating distribution water loop. The estimated fuel savings from this heat recovery system is projected to save the washeteria/water treatment plant 4,000 gallons of heating oil per year. For more detailed information refer to the attached Eek, Alaska 2015 Heat Recovery Study. 2.5 Scope of Work Provide a scope of work detailing the tasks to be performed under this funding request. This should include work paid for by grant funds and matching funds or performed as in-kind match. The scope of this project includes the design and construction of a heat recovery system in Eek, Alaska. The system will transfer heat from the jacket water cooling systems of the generators in the AVEC power plant to the circulating distribution water loop. The heat recovery pipeline will consist of approximately 100 linear feet of 1.5” twin pex carrier pipe (NSF certified) with the minimum 1.25” polyurethane insulation. New equipment for the power plant include: a heat exchanger, a heat recovery loop circulating pump, a heat injection circulating pump, a differential temperature controller, a BTU meter. New equipment at the WTP/Washeteria includes a heat exchanger and pumps. Design: This design effort will provide a construction ready design for the heat recovery project to include a kickoff meeting, civil, mechanical, and electrical engineering services as well as CAD and survey efforts as well as the production of a heat sales agreement. Pre-Construction: construction schedule, schedule of values, material take-off, heavy equipment and tool take off, work force planning, field office and accommodations, establishing local labor force accounts and insurance policies, design review, cost estimate, pre-construction conference. Construction: Installation of the system as designed, on-site testing and inspections, field survey, construction management reports, materials ordering and expediting, compiling of manufacturer’s literature, creation of O&M manual, local labor force payroll administration, as-built redlines, superintendent supervision and assistance Post-Construction: Pre-final and final inspections, closeout documentation, record drawings, demobilization, start-up and operator training, Project Management: Project Management will be ongoing through all project phases; this will include but is not limited to: coordinating with the funding agency on reporting, working as the liaison between stakeholders and the community, providing status updates, managing the project budget, coordinating with design and construction personnel. One year monitoring follow up report. SECTION 3 – Project Management, Development, and Operation 3.1 Schedule and Milestones Criteria: Stage 2-1.A: The proposed schedule is clear, realistic, and described in adequate detail. AEA 16012 Page 6 of 27 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects 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. The Milestones noted below, are based on a typical construction season. If the project is awarded, before it is executed, updated and realistic milestones will be completed by ANTHC and provided to AEA. Milestones Tasks Start Date End Date Deliverables 1.) Project Planning Conduct Kickoff Meeting 11/1/2016 11/1/2016 65% design w/cost estimate 11/1/2016 04/1/2017 Heat Sales Agreement 01/1/2017 04/1/2017 Final Design documents 06/1/2017 06/1/2017 2.) Construction Pre-construction meeting 07/1/2017 07/1/2017 Construction 07/1/2017 09/1/2017 Commissioning 10/1/2017 11/1/2017 Final Inspection and follow- up 11/1/2017 12/1/2017 3.) Project Closeout Project closeout 12/1/2017 12/1/2018 4.) Project Management and Match Activities Project management throughout (ANTHC in-kind) 11/1/2017 12/1/2018 3.2 Budget Criteria: Stage 2-1.B: The cost estimates for project development, operation, maintenance, fuel, and other project items meet industry standards or are otherwise justified. 3.2.1 Budget Overview Describe your financial commitment to the project. List the amount of funds needed for project completion and the anticipated nature and sources of funds. Consider all project phases, including future phases not covered in this funding request. The total requested grant funding is: $308,311. Design requested AEA funding: $ 66,720 Construction requested AEA funding: $185,987 15% Contingency requested AEA funding: $ 37,906 2 year escalation at 3% per year requested AEA Funding: $17,698 ANTHC In-Kind Match: The total anticipated project cost is $311,394 including Alaska Native Tribal Health Consortium’s in-kind contribution of $3,083 for project and program management services. Energy efficiency improvements to buildings to be heated (upgraded within the past 5 years or committed prior to proposed project completion): There is currently funding for energy efficiency AEA 16012 Page 7 of 27 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects work in the Water Treatment Plant / Washeteria. The 2011 Comprehensive Energy Audit for the Eek Water Treatment Plant / Washeteria is attached to this application. The audit recommends $42,000 in energy efficiency upgrades. ANTHC’s project manager for this upgrade work, Gavin Dixon, anticipates the costs today to be closer to $60,000. The total estimated contribution from ANTHC for the 2015 Heat Recovery Feasibility Study is $8,000. Total ANTHC in-kind match funds ($3,083 + $60,000 + $8,000) equals $71,083. 3.2.2 Budget Forms Applications MUST include a separate worksheet for each project phase that was identified in section 2.3.2 of this application, (I. Reconnaissance, II. Feasibility and Conceptual Design, III. Final Design and Permitting, and IV. Construction). Please use the tables provided below to detail your proposed project’s total budget. Be sure to use one table for each phase of your project. The milestones and tasks should match those listed in 3.1 above. If you have any question regarding how to prepare these tables or if you need assistance preparing the application please feel free to contact AEA at 907-771-3031 or by emailing the Grants Administrator, Shawn Calfa, at scalfa@aidea.org. AEA 16012 Page 8 of 27 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects DESIGN PHASE Milestone or Task RE- Fund Grant Funds Grantee Matching Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other TOTALS (List milestones based on phase and type of project. See Milestone list below. ) Project Management $1,542 In-kind 1% ANTHC project/program m anagement $1,542 Conduct Kickoff Meeting $5,000 $5,000 65% design w/cost estimate $43,368 $43,368 Heat Sales Agreement $5,000 $5,000 Final Design documents $13,352 $13,352 TOTALS $66,720 $1,542 $68,262 Budget Categories: Direct Labor & Benefits $0 Travel & Per Diem $0 Equipment Materials & Supplies Contractual Services *$66,720 $1,542 $68,262 Construction Services Other TOTALS $66,720 $1,542 $68,262 AEA 16012 Page 9 of 27 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects CONSTRUCTION PHASE Milestone or Task RE- Fund Grant Funds Grantee Matching Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other TOTALS (List milestones based on phase and type of project. See Milestone list below. ) Project Management $1,541 In-kind ANTHC project/program management $1,541 Pre-construction meeting $500 $500 Construction $153,487 $153,487 Commissioning $10,000 $10,000 Final Inspection and follow-up $20,000 $20,000 Project Closeout $2,000 $2,000 $185,987 $1,541 $187,528 Budget Categories: Direct Labor & Benefits Travel & Per Diem $0 Equipment Materials & Supplies $0 Contractual Services *$185,987 $1,541 $187,528 Construction Services TOTALS $185,987 $1,541 $187,528 Additional Costs 15% Total Project Contingency $37,906 $37,906 2 Years escalation @ 3% / yr $17,698 $17,698 TOTALS $55,604 $55,604 CONSTRUCTION GRAND TOTAL $241,591 $1,541 $243,132 AEA 16012 Page 10 of 27 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects 3.2.3 Cost Justification Indicate the source(s) of the cost estimates used for the project budget. The cost estimates presented in the table below represent the anticipated costs of the proposed system, taking into account recent design and construction costs of similar projects. Large financial risks are associated with construction work in rural Alaska. Expenses for potential changes in site conditions, unknown or unforeseen issues, and logistics have been incorporated into these costs. ANTHC’s match may actually work out to be much higher than shown, as this work may be performed at ANTHC’s billing rate and may exceed the hours anticipated. Any excess time/value of the project management in-kind match does not replace other financial cost elements of this project. The anticipated dates of completion are assumed based on the likelihood of funding, other ongoing work in the city, and other heat recovery work going on around the state. 3.2.4 Funding Sources Indicate the funding sources for the phase(s) of the project applied for in this funding request. Grant funds requested in this application $ 308,311 Cash match to be provided $ In-kind match to be provided (doesn’t include EE and Feasibility) $ 3,083 Total costs for project phase(s) covered in application (sum of above) $ 311,394 For heat projects using building efficiency completed within the last 5 years as in-kind match, the applicant must provide documentation of the nature and cost of efficiency work completed. Applicants should provide as much documentation as possible including: 1.Energy efficiency pre and post audit reports, 2.Invoices for work completed, 3.Photos of the building and work performed, and/or 4.Any other available verification such as scopes of work, technical drawings, and payroll for work completed internally. 3.2.5 Total Project Costs Indicate the anticipated total cost by phase of the project (including all funding sources). Use actual costs for completed phases. Reconnaissance $ Feasibility and Conceptual Design $ 8,000 Final Design and Permitting $ 68,262 Construction (includes escalation and contingency) $ 243,132 Total Project Costs (sum of above) $ 319,394 3.2.6 Operating and Maintenance Costs (non-fuel) Estimate annual non-fuel O&M costs associated with the proposed system $ 500 3.2.7 Fuel Costs Estimate annual cost for all applicable fuel(s) needed to run the proposed system Fuel type Annual cost ($) $ $ $ AEA 16012 Page 11 of 27 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects 3.3 Project Communications Criteria: Stage 2-1.C: The applicant’s communications plan, including monitoring and reporting, is described in adequate detail. Describe how you plan to monitor the project and keep the Authority informed of the status. Written project progress reports will be provided to the AEA project manager as required by the grant. Meetings will be conducted by ANTHC, the Village, and AEA to discuss the status of the project. Regular coordination meetings will be held between AEA and ANTHC regarding all projects. 3.4 Operational Logistics Criteria: Stage 2-1.D: Logistical, business, and financial arrangements for operating and maintaining the project throughout its lifetime and selling energy from the completed project are reasonable and described in adequate detail. Describe the anticipated logistical, business, and financial arrangements for operating and maintaining the project throughout its lifetime and selling energy from the completed project. A heat sales agreement will be established between AVEC and the city of Eek. Under this agreement: Heat generated by AVEC’s power plant during production of electric power will be recovered and used to reduce Purchaser’s heating fuel consumption and boiler exhaust emissions at Purchaser’s Heated Facility; and AVEC and the Purchaser will enter into an agreement for the sale and purchase of Recovered Heat; and the Purchaser understands and acknowledges that Recovered Heat is supplemental heat, which is intended solely to reduce Purchaser’s heating fuel consumption, and it is the responsibility of the Purchaser to operate and maintain a primary heat source at the Purchaser’s facilities in a fully functioning manner at all times; The heat sales agreement will likely be in effect for five (5) years from the Effective Date. The Agreement shall be automatically renewed for an additional five (5) years if the Purchaser continues to accept recovered heat after the initial five years. The details of the heat sales agreement will need approval by the parties entering into the agreement. Early Termination may occur if there is a material failure of either party in performing or fulfilling its obligations under the heat sales agreement; or if the power plant is relocated in which case the cost of making any necessary modifications to AVEC System to continue to provide recovered heat to Purchaser shall be the sole responsibility of Provider. If, in Provider’s judgment, the anticipated cost of such modifications is not expected to be recovered within a reasonable time period, Provider retains the right to terminate the heat sales agreement. If all of the Purchaser Heated Facilities are abandoned and no longer heated, the agreement may be terminated. The Purchaser, or the Purchaser’s authorized agent, is authorized to enter upon, over, and under AVEC’s premises, including Provider’s Facilities, to construct, reconstruct, maintain, inspect, repair, operate, improve, and update the Recovered Heat System. Beginning on the Operational Date, Provider will supply Recovered Heat to Purchaser under the terms and conditions of the heat sales agreement. It is agreed to and understood by both parties that Recovered Heat will be supplied to Purchaser’s Heated Facilities on an interruptible basis. Purchaser shall be solely responsible at all times to operate and maintain in a fully functioning manner the Purchaser facilities primary heat system and to maintain an adequate fuel supply to meet the full heating demand of its facilities. The main circulating pump shall be located at the Purchaser’s Facility and the Purchaser shall furnish the electric power to operate the main pump at no cost to AVEC. Secondary circulating pump(s), installed in the Purchaser’s Heated Facilities, are part of the Purchaser System and the Purchaser shall furnish the electric power to operate the secondary pump(s) at no cost to AVEC. AEA 16012 Page 12 of 27 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects Purchaser shall be responsible for maintaining that portion of the heat recovery system on the Purchaser’s side of the delivery point and AVEC shall be responsible for maintaining that portion of the heat recovery system on AVEC’s side of the delivery point. All maintenance of the system inside Provider’s facility shall be coordinated with AVEC. If the Purchaser fails to properly maintain the system in a fully functioning and environmentally safe manner, AVEC shall have the right to take corrective actions and recover its costs from the Purchaser. Except in the case where a failure to maintain may imminently threaten life or property, AVEC shall give reasonable notice in writing to the Purchaser of its intention to take corrective action under this paragraph, including an estimate of recoverable costs. Purchaser’s payment obligation described in this section to Provider shall start on the first day of the second month after the Operational Date and remain in effect through the term of the heat sales agreement. No invoice will be issued by AVEC. Billing will be provided on the Purchaser's monthly electric bill. Purchaser shall pay a sum equal to the agreed amount each month no later than the 25th of each month. All amounts not paid by the date due shall accrue interest at the rate of one percent (1.0%) per month. In addition, in the event Purchaser fails to pay any amount due to Provider, Provider reserves the right to discontinue the supply of heat. Provider will notify Purchaser in writing if the supply of heat is being discontinued for nonpayment and, if within thirty (30) days after receipt of notification Purchaser fails to pay the balance due, heat may be discontinued without further notice. Provider retains the right to sell additional Recovered Heat to other entities. If the sale of additional Recovered Heat will not significantly reduce the amount of Recovered Heat available under the heat sales agreement (less than 20% reduction), AVEC shall issue written notice to the Purchaser of the intent to sell additional Recovered Heat prior to commencing delivery of additional Recovered Heat. If the sale of additional Recovered Heat will significantly reduce the amount of Recovered Heat available under the heat sales agreement (greater than 20% reduction), AVEC shall issue written notice to the Purchaser of the intent to sell additional Recovered Heat a minimum of 6 months prior to commencing delivery of additional Recovered Heat. SECTION 4 – QUALIFICATIONS AND EXPERIENCE 4.1 Project Team Criteria: Stage 2-2.A: The Applicant, partners, and/or contractors have sufficient knowledge and experience to successfully complete and operate the project. If the applicant has not yet chosen a contractor to complete the work, qualifications and experience points will be based on the applicant’s capacity to successfully select contractors and manage complex contracts. Criteria: Stage 2-2.B: The project team has staffing, time, and other resources to successfully complete and operate the project. Criteria: Stage 2-2.C: The project team is able to understand and address technical, economic, and environmental barriers to successful project completion and operation. Criteria: Stage 2-2.D: The project team has positive past grant experience. 4.1.1 Project Manager Indicate who will be managing the project for the Grantee and include contact information, and a resume. In the electronic submittal, please submit resumes as separate PDFs if the applicant would like those excluded from the web posting of this application. If the applicant does not have a project manager indicate how you intend to solicit project management support. If the applicant expects project management assistance from AEA or another government entity, state that in this section. AEA 16012 Page 13 of 27 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects Alaska Native Tribal Health Consortium (ANTHC) is a statewide non-profit health services organization, formed by congress in 1997 to assume the roles and duties of the Indian Health Service (IHS) in Alaska. ANTHC is the largest tribal self-governance entity in the United States, with over 1,900 employees and an annual operating budget in excess of $475M. Approximately 31% of this funding is from a compact agreement with IHS. Approximately 25% of the operating revenue originates from other federal and state grants and contracts. ANTHC has a 16-year history of clean audits, conducted by an independent accounting firm in accordance with the Single Audit Act. The Division of Environmental Health & Engineering, Rural Energy Program: Program Manager Eric Hanssen, P.E., LEED AP has been with ANTHC since 2007. As part of ANTHC’s Rural Energy Program, he oversees project development, design, and construction of energy efficiency and renewable energy projects for remote communities across the entire state of Alaska. During his time with ANTHC, Eric has also served as a Project Manager for rural water and wastewater infrastructure projects, as well as a Health Facilities Engineer focused on hospital and clinic construction and renovation projects. Prior to joining ANTHC, Eric served seven years as a civil engineer and officer for the US Air Force in Alaska, Washington DC, Florida and Iraq. He holds a BS in Environmental Engineering from the US Air Force Academy in Colorado and a Master’s in Environmental Policy and Economics from the University of Maryland, College Park. Eric will provide oversight to the project manager for this effort, who will be Tashina Duttle. The Division of Environmental Health & Engineering, Rural Energy Program: Project manager, Tashina Duttle has been with ANTHC since April 2015. Tashina will manage this project if funding is awarded. Tashina’s background has included sustainable prototype construction project coordination in rural Alaska communities, she also has experience in multi- discipline engineering design environments— managing projects and developing project proposals. Tashina is currently the project manager for 5 heat recovery projects at varying stages of development. She has a BS in Sustainable Resources Management, an endorsement in Sustainable Energy from the University of Alaska Fairbanks and is completing her MS in Project Management at the University of Alaska Anchorage. The Division of Environmental Health & Engineering, Engineering Program: DEHE has multiple professional engineers on staff that focus on sanitation facilities engineering projects across rural Alaska. DEHE has mechanical engineers available to work on this project that have previous experience designing heat recovery projects similar in scope to this proposed project. The project design team will have a designated professional engineer assigned from each discipline (civil, electrical, and mechanical) to provide the expertise needed in each of the related design tasks for construction ready design documents. The DEHE survey and CAD departments will supplement this effort where needed. 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. 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 AEA 16012 Page 14 of 27 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects your application. In the electronic submittal, please submit resumes as separate PDFs if the applicant would like those excluded from the web posting of this application. The ANTHC Rural Energy Initiative has created alternative ways to continue serving our customer owners—Working collaboratively with ANTHC’s Alaska Rural Utility Collaborative, the Alaska Energy Authority, Tribal organizations, rural power companies and several others to reduce energy costs and improve overall sustainability throughout Alaska. The Rural Energy Initiative has experience helping communities identify renewable energy projects that reduce costs, while increasing energy efficiency and operator training and maintenance. ANTHC’s Division of Environmental Health and Engineering (DEHE) has a full service engineering group to utilize for this project if designed internally. Our projects are focused on the planning, design, construction and operations of public health infrastructure throughout the state of Alaska. Professional engineers at DEHE are involved in all aspects of a project, from planning to design to force account construction. ANTHC’s construction group has experience providing similar heat recovery systems and is more than capable of providing the construction portion of the project utilizing local force account labor resources where available. DEHE's Tribal Utility Support Program has utility operations consultants that will be available post construction to provide both operational and managerial advice to the project and to help guide the production of operations and maintenance materials. 4.1.3 Project Accountant(s) Indicate who will be performing the accounting of this project for the grantee and include a resume. In the electronic submittal, please submit resumes as separate PDFs if the applicant would like those excluded from the web posting of this application. If the applicant does not have a project accountant indicate how you intend to solicit financial accounting support. The City of Eek will use the accounting resources of ANTHC. ANTHC’s accounting department is led by the Construction Controller with several accountants and accounting technicians for support. 4.1.4 Financial Accounting System Describe the controls that will be utilized to ensure that only costs that are reasonable, ordinary and necessary will be allocated to this project. Also discuss the controls in place that will ensure that no expenses for overhead, or any other unallowable costs will be requested for reimbursement from the Renewable Energy Fund Grant Program. The project finances will be kept in Spectrum construction job cost accounting software used by ANTHC The software accounts expenditures by phase code and cost types. Purchasing, contracting, and accounting are the primary users of the system with the information always available to the project team. The City of Eek will enter into a cooperative project agreement (CPA) with ANTHC to implement the project as well as financial management. ANTHC’s cost controls have been implemented to comply with OMB cost control principles and requirements of all state and federal grants. ANTHC has a 16-year history of clean audits, conducted by an independent accounting firm in accordance with the Single Audit Act. ANTHC will provide records and accounting records available to state and federal auditors on request. 4.2 Local Workforce Criteria: Stage 2-2.E: The project uses local labor and trains a local labor workforce. Describe how the project will use local labor or train a local labor workforce. ANTHC has extensive experience utilizing force account labor. For our rural construction projects we work with community leaders to identify local labor resources to work on our projects. We anticipate hiring local labor for the construction effort. ANTHC recognizes the value of using local AEA 16012 Page 15 of 27 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects labor to yield enhanced local control and ownership of a project and is committed to providing opportunities to the local workforce. AEA 16012 Page 16 of 27 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects SECTION 5 – TECHNICAL FEASIBILITY 5.1 Resource Availability Criteria: Stage 2-3.A: The renewable energy resource is available on a sustainable basis, and project permits and other authorizations can reasonably be obtained. 5.1.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available, including average resource availability on an annual basis. Describe the pros and cons of your proposed energy resource vs. other alternatives that may be available for the market to be served by your project. For pre-construction applications, describe the resource to the extent known. For design and permitting or construction projects, please provide feasibility documents, design documents, and permitting documents (if applicable) as attachments to this application. This project proposes to use water jacket heat generated by the AVEC power plant to significantly displace 4,000 gallons of fuel oil required to heat the water system in Eek, Alaska. The only realistic alternative to utilizing the heat recovery system is to continue to burn fuel oil to provide the heat required by the water system. 5.1.2 Permits Provide the following information as it may relate to permitting and how you intend to address outstanding permit issues. •List of applicable permits •Anticipated permitting timeline •Identify and describe potential barriers No permits are anticipated for this heat recovery project. If during the course of the project, permits are needed, ANTHC will obtain the appropriate ones. 5.2 Project Site Criteria: Stage 2-3.B: A site is available and suitable for the proposed energy system. Describe the availability of the site and its suitability for the proposed energy system. Identify potential land ownership issues, including whether site owners have agreed to the project or how you intend to approach land ownership and access issues. There are no apparent conflicts with rights-of-ways for the arctic piping between the power plant and the end user building, as the route is entirely within existing road rights-of-ways and on City and AVEC property. 5.3 Project Risk Criteria: Stage 2-3.C: Project technical and environmental risks are reasonable. 5.3.1 Technical Risk Describe potential technical risks and how you would address them. In general there are no technological or financial risks involved with the plan to utilize recovered heat from the power plant to provide heat to the water system and water plant. Installing the necessary heat exchangers, piping, pumps, and controls necessary for implementation has been done many times before and proven effective for many years. 5.3.2 Environmental Risk Explain whether the following environmental and land use issues apply, and if so how they will be addressed: •Threatened or endangered species •Habitat issues •Wetlands and other protected areas •Archaeological and historical resources AEA 16012 Page 17 of 27 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects •Land development constraints •Telecommunications interference •Aviation considerations •Visual, aesthetics impacts •Identify and describe other potential barriers ANTHC will consider all potential environmental concerns associated with this project. ANTHC has extensive experience using the comprehensive Indian Health Service (IHS) environmental review procedures for conducting environmental analysis of all health and sanitation facilities projects in all stages of development, as outlined in the IHS environmental review Manual issued in January 2007. 5.4 Existing and Proposed Energy System Criteria: Stage 2-3.D: The proposed energy system can reliably produce and deliver energy as planned. 5.4.1 Basic Configuration of Existing Energy System Describe the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. A heat recovery utilization spreadsheet has been developed to estimate the recoverable heat based on monthly total electric power production, engine heat rates, water system loads. The spreadsheet uses assumed time of day variations for electrical power production and heat demand. Power generation data from AVEC for fiscal year 2012 is used in the spreadsheet. The estimated heat rejection rate for the lead power plant generator, a Detroit Diesel Series 60 DDEC4, is used to estimate available recovered heat. Heating degree-days for Eek were used for this site. Existing Power Plant Engine Information: Existing Energy Generation and Usage a)Basic configuration (if system is part of the Railbelt 1 grid, leave this section blank) i.Number of generators/boilers/other Detroit Diesel Series 60 DDEC4 ii.Rated capacity of generators/boilers/other 236 kW iii.Generator/boilers/other type Fuel Oil Boiler iv.Age of generators/boilers/other 5+ years v.Efficiency of generators/boilers/other 75% vi. is there heat recovery and is it operational?no b)Annual O&M cost i.Annual O&M cost for labor $300 ii.Annual O&M cost for non-labor $200 1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. NAME POS #ENG MAKE ENG MODEL ENG SERIAL # ENG ARRANG # KW RATING EEK 1 CM S LTA10 1200 34674713 CPL 1444 168 EEK 2 DD S60K4 1200 06R0724662 6063TK35 236 EEK 3 CAT D342 49B2034 7L3040 175 AEA 16012 Page 18 of 27 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects 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]5,900 gallons of Number 1 fuel oil in boilers ii.Electricity [kWh] iii.Propane [gal or MMBtu] iv.Coal [tons or MMBtu] v.Wood [cords, green tons, dry tons] vi.Other AEA 16012 Page 19 of 27 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects 5.4.2 Future Trends Describe the anticipated energy demand in the community over the life of the project. Assuming population remains the same or populations grow, the demand for heat in the water treatment plant processes will always be present. Thus the energy demand for this application will either be steady or increase. 5.4.3 Impact on Rates Briefly explain what if any effect your project will have on electrical rates in the proposed benefit area over the life of the project. For PCE eligible communities, please describe the expected impact would be for both pre and post PCE. This project is anticipated to reduce fuel consumption up to 4,000 gallons per year. This project is not intended to have an impact on electrical rates or PCE. However, with the reduced cost of heat in the processes of providing water, utility rates should see a decrease. 5.4.4 Proposed System Design Provide the following information for the proposed renewable energy system: •A description of renewable energy technology specific to project location •Optimum installed capacity •Anticipated capacity factor •Anticipated annual generation •Anticipated barriers •Integration plan •Delivery methods Hot engine coolant is piped through a double-wall Doucette heat exchanger located at the power plant. Heat is transferred from the engine coolant to the recovered heat loop without the mixing fluids. Controls at the power plant are used to prevent sub-cooling of the generator engines and reductions in electric power production efficiency. The recovered heat fluid is pumped through buried insulated pipe to the adjacent water loop. POWER PLANT TIE-IN No modifications to the power plant cooling system are included except those required to connect the pre-insulated flexible piping to the new power plant double-wall Doucette heat exchangers and associated circulation pumps. All generator cooling piping will be insulated with a minimum of 3-inch polyurethane foam insulation and will have an aluminum jacket where exposed to the weather. All valves will be either bronze- ball valves or lug-style butterfly valves with seals compatible with 50.50 glycol/water mixtures at 200F. Air vents, thermometers, pressure gauges, drain valves, and pressure relief valves will also be provided. Additional controls will be added, including a BTU meter and motorized bypass valve for coolant temperature control. END-USER SYSTEM TIE-IN The heat recovery pipe will tie in to the water system by connecting to the circulating water main line. A pipe will extend from the water main to the AVEC plant where it will pass through a heat exchanger inside the AVEC facility. The heat exchanger will transfer heat from the AVEC glycol loop to the water main line. Where required, a heat injection pump will be used to avoid introducing excessive pressure drop in the building heating system. The maximum anticipated delivered recovered heat supply temperature is about 190F. Off-the-shelf controls will lock out the recovered heat system when there is insufficient recovered heat available. AEA 16012 Page 20 of 27 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects Typical indoor piping will be type L copper tube with solder joints. Isolation valves will be solder end bronze ball valves or flanged butterfly valves. All piping will be insulated with a minimum of 3- inch insulation with an all-service jacket. Flexibility will be provided where required for thermal expansion and differential movement. Air vents, thermometers, pressure gauges, drain valves, and pressure relief valves will also be provided. The facility will also receive a BTU meter to provide recovered heat use totalization and instantaneous use. Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a)Proposed renewable capacity (Wind, Hydro, Biomass, other) [kW or MMBtu/hr] b)Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] ii. Heat [MMBtu]4,000 gallons of fuel displaced annually ~ 536 MMBtu/hr c)Proposed annual fuel usage (fill in as applicable) i.Propane [gal or MMBtu] ii.Coal [tons or MMBtu] iii.Wood or pellets [cords, green tons, dry tons] iv.Other 5.4.5 Metering Equipment Please provide a short narrative, and cost estimate, identifying the metering equipment that will be used to comply with the operations reporting requirement identified in Section 3.15 of the Request for Applications. Metering and monitoring equipment for this water plant are estimated to be $15,000. A BTU meter will be installed equipped with a Monnit pulse counter. This data is to be fed through a cellular internet connection to the central Monnit server and the ANTHC web site. This is assuming ANTHC’s current remote monitoring practice and is in addition to the project. 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) AEA 16012 Page 21 of 27 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects •Additional revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) The economic model used by AEA is available at http://www.akenergyauthority.org/Programs/Renewable-Energy-Fund/Rounds#round9. This economic model may be used by applicants but is not required. The final benefit/cost ratio used will be derived from the AEA model to ensure a level playing field for all applicants. If used, please submit the model with the application. Based on the attached Eek 2015 Feasibility study, this project will lower energy consumption by is 4,000 gallons or $13,743 of heating oil annually. There are no other known incentives or revenue streams that will result from this project. The benefits to the community of this project include a reduction in the amount of fuel required by the community, more efficient use of the recovered engine heat, and a direct benefit to each community member due to the lower cost to produce, store, and deliver water. 6.1.2 Power Purchase/Sale The power purchase/sale information should include the following: •Identification of potential power buyer(s)/customer(s) •Potential power purchase/sales price - at a minimum indicate a price range •Proposed rate of return from grant-funded project Identify the potential power buyer(s)/customer(s) and anticipated power purchase/sales price range. Indicate the proposed rate of return from the grant-funded project. A standard heat sales agreement will be executed between AVEC and the City of Eek. The agreement will define the terms and methods for heat sales. Typically, heat sales agreements charge end users the equivalent of one third the cost (of AVEC’s cost for fuel) of fuel displaced. This amount is much lower than the retail price of fuel in the village. A BTU meter will be used to measure the amount of recovered heat used by the water system. 6.1.3 Public Benefit for Projects with Private Sector Sales For projects that include sales of power to private sector businesses (sawmills, cruise ships, mines, etc.), please provide a brief description of the direct and indirect public benefits derived from the project as well as the private sector benefits and complete the table below. See section 1.6 in the Request for Applications for more information. This is not applicable to the proposed project. Renewable energy resource availability (kWh per month) Estimated sales (kWh) Revenue for displacing diesel generation for use at private sector businesses ($) 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. There are not additional funds needed to complete the work as currently identified. AEA 16012 Page 22 of 27 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects 6.2.2 Financing opportunities/limitations If the proposed project includes final design or construction phases, what are your opportunities and/or limitations to fund this project with a loan, bonds, or other financing options? The community is not interested in applying for financing for this project at this time. 6.2.2 Cost Overruns Describe the plan to cover potential cost increases or shortfalls in funding. ANTHC will make every effort to keep the project within the budget. In previous instances where there were project overruns, ANTHC has successfully tapped into other funding opportunities to make up the budget deficits. This would be the approach for this project as well. 6.2.3 Subsequent Phases If subsequent phases are required beyond the phases being applied for in this application, describe the anticipated sources of funding and the likelihood of receipt of those funds. There are not further phases for this project, beyond what is being applied for in this application. 6.3 Other Public Benefit Criteria: Stage 3-4.C: Other benefits to the Alaska public are demonstrated. Avoided costs alone will not be presumed to be in the best interest of the public. Describe the non-economic public benefits to Alaskans over the lifetime of the project. For the purpose of evaluating this criterion, public benefits are those benefits that would be considered unique to a given project and not generic to any renewable resource. For example, decreased greenhouse gas emission, stable pricing of fuel source, won’t be considered under this category. Some examples of other public benefits include: •The project will result in developing infrastructure (roads, trails, etc.) that can be used for other purposes •The project will result in a direct long-term increase in jobs (operating, supplying fuel, etc.) •The project will solve other problems for the community (waste disposal, food security, etc.) •The project will generate useful information that could be used by the public in other parts of the state •The project will promote or sustain long-term commercial economic development for the community The community of Eek currently has a funded $26M sanitation project funded in the community. There are positive health impacts associated with providing water and sewer to homes including reduced disease occurrence. The preliminary business plan from the sanitation project identifies prohibitive user fees, which could deem the project to be unsustainable by the users. There was a recommendation made to identify alternative sources of heat for the system. The waste heat from the AVEC plant could be utilized as an alternative heat source for the sanitation system which will drive down user fees in the community, making access to safe drinking water and piped sewer. Cost savings to users will provide access to these systems and allow reserves to accumulate to address operations and maintenance issues of the larger sanitation system as a whole. There are positive health impacts associated with providing water and sewer to homes including reduced disease occurrence, reducing user costs will increase access to these services. AEA 16012 Page 23 of 27 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects SECTION 7 – SUSTAINABILITY Describe your plan for operating the completed project so that it will be sustainable throughout its economic life. Include at a minimum: •Capability of the Applicant to demonstrate the capacity, both administratively and financially, to provide for the long-term operation and maintenance of the proposed project •Is the Applicant current on all loans and required reporting to state and federal agencies? •Likelihood of the resource being available over the life of the project •Likelihood of a sufficient market for energy produced over the life of the project • This project increases the sustainability of the water system by reducing its operating cost over the life of the project. The minimal maintenance and operating cost can be funded out of its revenue stream and out of its savings over the 30-year life of the project. Although the boilers will be maintained and are the primary heating source in the water treatment plant, their use is to be greatly curtailed. The City of Eek is committed to meeting all reporting requirements over the entire length of the reporting period. SECTION 8 – PROJECT READINESS Describe what you have done to prepare for this award and how quickly you intend to proceed with work once your grant is approved. Specifically address your progress towards or readiness to begin, at a minimum, the following: •The phase(s) that must be completed prior to beginning the phase(s) proposed in this application •The phase(s) proposed in this application •Obtaining all necessary permits •Securing land access and use for the project •Procuring all necessary equipment and materials •Improving the thermal energy efficiency of the building(s) to be served by the heat project A detailed heat recovery study has been completed and is attached to this application. The intent is to proceed with this project as soon as practical once design and construction funding is available ANTHC has maintained a robust operating budget for all four divisions. ANTHC operates dozens of programs and projects. We receive funding from numerous well-recognized sources; this demonstrates our capacity to manage this grant. Funders include the United States Environmental Protection Agency, United States Department of Agriculture, Indian Health Service, Denali Commission, Centers for Disease Control, Department of Energy, Department of Health & Human Services, Department of Commerce, Fred Hutchinson Cancer Research Center, Mayo Clinic, National Native American AIDS Prevention Center, Rasmuson and Robert Wood Johnson Foundations, State of Alaska, University of Washington, and others. The phase that has been completed prior to the phases proposed is the Heat Recovery Study, which is attached. ANTHC has the capacity to secure all necessary permits and will work closely with the community and the survey department in securing land access and use for the project. All necessary equipment and materials can be coordinated by our DEHE construction group who is very familiar with mobilization and procurement best practices for projects in rural Alaska. The thermal energy efficiency of the proposed end users has been addressed through the energy audit. There is currently funding for energy efficiency work in the Water Treatment Plant / Washeteria. The 2011 Comprehensive Energy Audit for the Eek Water Treatment Plant / Washeteria is attached to this application. The audit recommends $42,000 in energy efficiency upgrades. ANTHC’s project manager for this upgrade work, Gavin Dixon, anticipates the costs AEA 16012 Page 24 of 27 7/8/15 Renewable Energy Fund Round IX Grant Application – Heat Projects today to be closer to $60,000. The Eek Water Treatment Plant audit is attached to the application as indication of the proposed upgrades. SECTION 9 – LOCAL SUPPORT AND OPPOSITION Describe local support and opposition, known or anticipated, for the project. Include letters, resolutions, or other documentation of local support from the community that would benefit from this project. The Documentation of support must be dated within one year of the RFA date of July 7, 2015 The City of Eek is submitting the grant application. ANTHC has provided a match for the project as well as a letter of support. The City of Eek, Yukon-Kuskokwim Health Corporation and AVEC have also written letters of support for this project. The letters of support are attached to this application. There is no known opposition to this project. SECTION 10 – COMPLIANCE WITH OTHER AWARDS Identify other grants that may have been previously awarded to the Applicant by the Authority for this or any other project. Describe the degree you have been able to meet the requirements of previous grants including project deadlines, reporting, and information requests. ANTHC Grants Department, in operation since 1999, writes and complies with grants and cooperative agreements to the funders’ requirements and has not had an audit finding since inception. At any one time, ANTHC manages over 150 grants, ranging in the millions of dollars to several thousands of dollars each. ANTHC’s grant portfolio includes grants from; federal, state, and a variety of large to small nonprofit organizations and foundations. The Grants Management department provides comprehensive grants administration and assistance, coordinates grant reporting activities with a range of project managers, and ensures effective financial management of grant programs. Coordinates regular grant activities; works with ANTHC staff and funding agencies to ensure project goals and objectives are met, timely submittal of progress reports, or closeout data; and coordinates effort with project managers, supervisors, and accountants to manage grants according to granting agency regulations. ANTHC maintains a robust operating budget for all four divisions. ANTHC operates dozens of programs and projects. We receive funding from numerous well-recognized sources; this demonstrates our capacity to manage this grant. Funders include the United States Environmental Protection Agency, United States Department of Agriculture, Indian Health Service, Denali Commission, Centers for Disease Control, Department of Energy, Department of Health & Human Services, Department of Commerce, Fred Hutchinson Cancer Research Center, Mayo Clinic, National Native American AIDS Prevention Center, Rasmuson Foundation, and Robert Wood Johnson Foundations, State of Alaska, University of Washington, and others. SECTION 11 – LIST OF SUPPORTING DOCUMENTATION FOR PRIOR PHASES In the space below please provide a list additional documents attached to support completion of prior phases. Heat Recovery (feasibility) Study 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 See attached Appendix with list of supporting documentation AEA 16012 Page 25 of 27 7/8/15 Renewable Energy Fund Round IX Grant Application -Heat Projects !SECTION 13 -AUTHORIZED SIGNERS FORM Community/Grantee Name: C,.', Regular Election is held: ntJ<_ v I i.\t.:) I Authorized Grant Signer(s): Printed Name Title Term z..v r'-1-- I authorize the above person(s) to sign Grant Documents: Signature (Must be authorized below by the highest ranking organization/community/municipal official Printed Name Title Signature Term ov I Grantee Contact Information: Mailing Address: P.o. ?>ox oc;; - Phone Number: Fax Number: E-mail Address: Federal Tax ID#: Please submit an updated form whenever there is a change to the above information. AEA 16012 Page 26 of27 7/8/15 Renewable Energy Fund Round IX Grant Application -Heat Projects SECTION 14-ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A.Contact information and resumes of Applicant's Project Manager, Project Accountant(s), key staff, partners, consultants, and suppliers per application form Section 3.1, 3.4 and 3.6. Applicants are asked to provide resumes submitted with applications in separate electronic documents if the individuals do not want their resumes posted to the project web site. B.Letters or resolutions demonstrating local support per application form Section 9. C.For projects involving heat: Most recent invoice demonstrating the cost of heating fuel for the building(s) impacted by the project. D.Governing Body Resolution or other formal action taken by the applicant's governing body or management per RFA Section 1.4 that: Commits the organization to provide the matching resources for project at the match amounts indicated in the application. Authorizes the individual who signs the application has the authority to commit the organization to the obligations under the grant. Provides as point of contact to represent the applicant for purposes of this application. Certifies the applicant is in compliance with applicable federal, state, and local, laws including existing credit and federal tax obligations. E.An electronic version of the entire application on CD or other electronic media, per RFA Section 1.7. F.CERTIFICATION The undersigned certifies that this application for a renewable energy .. grant is truthful and correct, and that the applicant is in compliance with, and will continue to comply with, all federal and state laws including existing credit and federal tax obligations and that they can indeed commit the entity to these obligations. Print Name Signature Title Date AEA 16012 Page 27 of27 7/8/15 City of Eek LETTERS OF SUPPORT  City of Eek   FUEL INVOICES     City of Eek GOVERNERING BODY   RESOLUTION  Eek City Council Resolution Requesting for Alaska Energy Authority Funding Renewable Energy Grant Program Round Nine (9) City of Eek Resolution # 15-11 A Resolution by the City of Eek requesting Funding from the Alaska Energy Authority, Alaska Renewable Energy Fund, Round 9 and commitment by the City of Eek. WHEREAS: The Eek City Council, hereinafter called the Council. Is a governing body in the community of Eek, Alaska and WHEREAS: The Alaska Energy Authority, hereinafter called AEA, may provide assistance necessary to help address the energy needs of our community; WHEREAS; The Council desires to seek and utilize renewable sources of energy in order to lower costs for residents while making our community more economically viable and sustainable into the future in order to guarantee our way of life for current and future generations; WHEREAS; The Council authorizes the Alaska Native Tribal Health Consortium (ANTHC) to work with the Council to develop, implement and manage the project for which we are seeking funding from AEA; and NOW THEREFORE BE IT RESOLVED; that the Council hereby requ�sts that the AEA appropriate Renewable Energy Funds, Round Nine to compete the Eek Heat Recovery Project; and BE IT FURTHER RESOLVED; that the Council grants authority to the individual signing this resolution to commit the village/city name to obligations under the grant and to act as a point of contact; and BE IT FURTHER RESOLVED; The City of Eek is in compliance with applicable federal, state and local laws including existing credit and federal tax obligation; and BE IT FURTHER RESOLVED; that ANTHC is hereby authorized through a Cooperative Project Agreement to negotiate, execute, and administer and all documents, contracts, expenditures and agreements as required for the City of Eek name and managing funds on behalf of this entity, including subsequent amendments to said agreements. BE IT FURTHER RESOLVED; that the Council hereby authorizes ANTHC or its representatives to enter upon or cross community land for the purposes of assisting the Council in carrying out this project. City of Eek APPENDIX  Eek Heat Recovery Feasibility Study (2015) Eek Water Treatment Plant Audit / Washeteria Report (2011) List of AEA Grants that ANTHC has managed 2009-2014 Cost Estimates for Heat Recovery Project. Qty Rate 134 126 124 115 124 131 85 108 48 66 82 Labor Civil 60 8 6.0 7,560$ Site Visit 1 1,100$ 1,100$ Mechanical 160 8 16.0 20,160$ Site Visit 2 1,100$ 2,200$ Electrical 100 8 10.0 12,600$ Site Visit 1 1,100$ 1,100$ CAD 100 8 10.0 10,000$ Survey 100 8 10.0 10,900$ Site Visit 1 1,100$ 1,100$ Total Design 61,220$ Total Travel 5,500$ Design + Travel Total hours 61.3 124.0 10.0 0.0 185.0 215.0 15.0 0.0 72.5 15.0 120.0 Mobilization Equipment Rental 9,000$ 9,000.00$ Takeoffs 1 1 1.0 1 1 2,550$ Training 1 1 1.0 Materials Receiving and Inventory 1 1 1.0 1 1 0.2 2,720$ Set up Materials Storage/Yard 1 1 1.0 0.5 0.5 0.2 1,445$ Expediting to Const Site 0.0 Housing Local Rental Rental 14 200$ 2,800$ 2,800.00$ Camp set up 1 1 1.0 1 1 1 3,890$ Pipe & Fittings 1 12,000$ 12,000$ 1,000$ 13,000.00$ Cooling sys modifications 3 1 3.0 0.7 1 1 1 12,756$ Controls 1 1,000$ 1,000$ 100$ 1,100.00$ Controls 2 1 2.0 0.7 2 6,724$ Pumps 2 3,000$ 6,000$ 100$ 6,100.00$ Make-up / Expansion Tanks 0.0 Heat Exchanger 1 7,000$ 7,000$ 200$ 7,200.00$ Insulation Upgrades 1 1 1.0 Controls 1 1,000$ 1,000$ 100$ 1,100.00$ BTU Meter Install 1 1 1.0 1 1 1 0.1 1 4,715$ Insulation 1 600$ 600$ 300$ 900.00$ BTU/Flow Meter 1 3,500$ 3,500$ 350$ 3,850.00$ -$ Heating sys modifications 4 1 5.0 1 1 10,650$ Pipe & Fittings 1 3,000$ 3,000$ 800$ 3,800.00$ Controls 1 1 1.0 1 1,240$ Pumps 1 1,200$ 1,200$ 200$ 1,400.00$ Pumps 1 2,000$ 2,000$ 200$ 2,200.00$ Controls 1 1,000$ 1,000$ 100$ 1,100.00$ Heat Exchanger 1 6,000$ 6,000$ 200$ 6,200.00$ Excavation and Backfill GT-1 (Tank)1 6,300$ 6,300$ 1,500$ 7,800.00$ ## of feet 100 200 0.5 1 1 2 1 2,100$ Geotextile 100 800 0.1 1 2 288$ Geotextile 100 5$ 500$ 100$ 600.00$ Twin Pex Carrier Pipe 100 Feet buried pipe 100 100 1.0 1 1 1 3,310$ Pipe 100 30$ 3,000$ 900$ 3,900.00$ Fittings, etc 100 15$ 1,500$ 450$ 1,950.00$ Glycol 2 675$ 1,350$ 675$ 2,025.00$ Travel 10 1,100$ 11,000$ 11,000.00$ Glycol 2 1 2.0 1 0.5 3,470$ Safety 1 2,000$ 2,000$ 100$ 2,100.00$ Literature and References 2 1 2.0 1 2,520$ Publishing 4 500$ 2,000$ 100$ 2,100.00$ Training 1 1 3.0 1 2 6,660$ Preliminary Clean Up 0.0 Final Inspection Punch List 3 1 3.0 1 0.3 1 1 12,804$ Final Clean Up 3 1 3.0 1 1 1 10,110$ Pack Up and Crate 1 1 1.0 0.5 0.5 1,290$ Shipping 1 3,000$ 3,000$ 3,000.00$ Financial Close out/ Auditing 1 1 1.0 1 1,260$ As builting 1 1 1.0 1 1,260$ 86,750$ 7,475.00$ 94,225.00$ 91,762$ Design & Design Travel 66,720$ Labor 91,762$ Materials & Freight 94,225$ Subtotal 252,707$ 37,906$ 290,612$ 17,698$ Subtotal (Grant Requested)308,311$ Project Management 1% ANTHC In-Kind Match 3,083$ Total Project Cost 311,394$ $13,743 21.15 yrs Item Eek Heat Recovery Cost Estimate PlumbershippingDays (60hr. Week) Fixed estimate @ 109 /hr. Total Cost Power Plant Modifications Job Clean Up/ Final Inspection Final EngineerStartup and Operator Training. De-Mobe Fixed estimate @ 126 /hr. Fixed estimate @ 126 /hr. Assumptions: - Local accomodations are available. - All exterior piping run on sleepers above grade. - Power plant is mostly configured and equiped. - System control can be accomplished w/o a panel. - Crew leader functions will be accomplished by Superentendant, or in lieu of Super.Crew LeadNo.Cost Ea Washeteria/WTP Bldg Connection ELEMENT Support Activities Design Production Rate OperatorFixed estimate @ 100 /hr. Fixed estimate @ 126 /hr. MATERIALS ElectricianSuperTotal Mat TotalLocalLabor Local OperatorFreight Materials + Freight 15% Contingency All + contingency 2 years escalation @ 3% / year Simple Payback (without escalation)Local PlumberLABOR MechanicEstimated annual savings 66,720$ Total Labor 1 Comprehensive Energy Audit For Eek Water Treatment Plant/Washeteria Prepared For: City of Eek August 1, 2011 Prepared By: ANTHC-DEHE Energy Projects Group 1901 Bragaw, Suite 200 Anchorage, AK 99508 2 Table of Contents 1. Executive Summary 3 2. Audit and Analysis Background 5 3. Building Description and Energy Analysis 7 4. Energy Efficiency Measures 13 5. Energy Efficiency Action Plan 17 Appendix A List of Energy Conservation and Renewable Energy Websites 18 PREFACE The Energy Projects Group at the Alaska Native Tribal Health Consortium (ANTHC) prepared this document for the City of Eek. The authors of this report are Carl H. Remley, Certified Energy Auditor (CEA) and Certified Energy Manager (CEM), Chris Mercer, PE and CEA, Gavin Dixon and Kyle Monti. The purpose of this report is to provide a comprehensive document that summarizes the findings and analysis that resulted from an energy audit conducted over t he past couple months by the Energy Projects Group of ANTHC. This report analyzes historical energy use and identifies costs and savings of recommended energy efficiency measures. Discussions of site specific concerns and an Energy Efficiency Action Plan are also included in this report. ACKNOWLEDGMENTS The Energy Projects Group gratefully acknowledges the assistance of Mr. Adolph Carter, Eek Water Plant Operator, Mr. Fritz Petluska, Clerk, City of Eek, Mr. Nick Carter, Tribal Administrator, Eek Traditional Council and Marcie Sherer, Vice President of Business Enterprises, AVCP. 3 1. EXECUTIVE SUMMARY This report was prepared for the City of Eek. The scope of the audit focused on the Eek Water Treatment Plant/Washeteria. The scope of this report is a comprehensive energy study, which included an analysis of building shell, interior and exterior lighting systems, process loads, HVAC systems, and plug loads. Based on electricity and fuel oil prices in effect at the time of the audit, the annual energy cost for the building analyzed was $6,648 for electricity and $37,330 for #1 fuel oil. This results in an annual cost of $43,978. Please note that this was for calendar year 2010. Energy costs in rural Alaska fluctuate significantly with the price of oil. It should be noted that this facility received the power cost equalization (PCE) subsidy last year. If it did not receive the PCE subsidy, the annual electricity cost would have been $24,448 and the total annual energy cost would have been $61,778. Table 1.1 below summarizes the energy efficiency measures recommended for the Eek Water Treatment Plant/Washeteria. Listed are the estimates of the annual savings, installed costs, and two different financial measures of investment return. Table 1.1 PRIORITY LIST – ENERGY EFFICIENCY MEASURES Rank Feature Improvement Description Annual Energy Savings Installed Cost Savings to Investment Ratio, SIR1 Simple Payback (Years)2 1 Backwash of Filters At present, backwash is being done twice each time and only needs to be done once. This practice results in a significant use of water and therefore a significant use of oil to heat that water. This is an operational change, therefore there is no implementation cost $204 $0 >100 0.0 2 Setback Thermostat: Water Treatment Plant Implement a Heating Temperature Unoccupied Setback to 50.0 deg F for the Water Treatment Plant space. $761 $100 114.26 0.1 3 Setback Thermostat: Washeteria Implement a Heating Temperature Unoccupied Setback to 50.0 deg F for the Washeteria space. $332 $100 49.88 0.3 4 Heating and Domestic Hot Water Convert boilers to cold start and set up existing Tekmar controller to shut off boilers and associated pumps when the washeteria is closed unless the thermal loads drop below acceptable temperatures. $5,091 $25,000 3.86 4.9 4 Table 1.1 PRIORITY LIST – ENERGY EFFICIENCY MEASURES Rank Feature Improvement Description Annual Energy Savings Installed Cost Savings to Investment Ratio, SIR1 Simple Payback (Years)2 5 Washeteria Clothes Dryers Re-commission the dryer air plenum make up heat and lower setpoint from 70 degrees to 50 degrees. Install unoccupied setback when washeteria is closed to 40. $1,829 $15,000 1.66 8.2 6 Air Tightening Perform air sealing to reduce air leakage by 250 cfm at 50 Pascals. $189 $1,800 1.08 9.5 TOTAL, cost-effective measures $8,408 $42,000 3.39 5.0 Table Notes: 1 Savings to Investment Ratio (SIR) is a life-cycle cost measure calculated by dividing the total savings over the life of a project (expressed in today’s dollars) by its investment costs. The SIR is an indication of the profitability of a measure; the higher the SIR, the more profitable the project. An SIR greater than 1.0 indicates a cost-effective project (i.e. more savings than cost). Remember that this profitability is based on the position of that Energy Efficiency Measure (EEM) in the overall list and assumes that the measures above it are implemented first. 2 Simple Payback (SP) is a measure of the length of time required for the savings from an EEM to payback the investment cost, not counting interest on the investment and any future changes in energy prices. It is calculated by dividing the investment cost by the expected first-year savings of the EEM. With all of these energy efficiency measures in place, the annual utility cost can be reduced by $8,408 per year, or 19.1% of the buildings’ total energy costs. These measures are estimated to cost $42,000 to implement, for an overall simple payback period of 5.0 years. Table 1.2 below is a breakdown of the annual energy cost across various energy end use types, such as Space Heating and Water Heating. The first row in the table shows the breakdown for the building as it is now. The second row shows the expected breakdown of energy cost for the building assuming all of the retrofits in this report are implemented. Finally, the last row shows the annual energy savings that will be achieved from the retrofits. 5 Table 1.2 Annual Energy Cost Estimate Description Space Heating Space Cooling Water Heating Lighting Other Electrical Water Treatment, Storage & Circulation Clothes Drying Ventilation Fans Service Fees Total Cost Existing Building $6,034 $0 $6,092 $851 $527 $17,569 $12,904 $0 $0 $43,978 With All Proposed Retrofits $2,796 $0 $2,956 $851 $527 $17,365 $11,074 $0 $0 $35,570 SAVINGS $3,238 $0 $3,136 $0 $0 $204 $1,829 $0 $0 $8,408 2. AUDIT AND ANALYSIS BACKGROUND 2.1 Program Description This audit included services to identify, develop, and evaluate energy efficiency measures at the Eek Water Treatment Plant/Washeteria. The scope of this project included evaluating building shell, lighting and other electrical systems, process loads, HVAC equipment, motors and pumps. Measures were analyzed based on life-cycle-cost techniques, which include the initial cost of the equipment, life of the equipment, annual energy cost, annual maintenance cost, and a discount rate of 3.0%/year in excess of general inflation. 2.2 Audit Description Preliminary audit information was gathered in preparation for the site survey. The site survey provides critical information in deciphering where energy is used and what opportunities exist within a building. The entire site was surveyed to inventory the following to gain an understanding of how each building operates: • Building envelope (roof, windows, etc.) • Heating, ventilation, and air conditioning equipment (HVAC) • Lighting systems and controls • Building-specific equipment The building site visit was performed to survey all major building components and systems. The site visit included detailed inspection of energy consuming components. Summary of building occupancy schedules, operating and maintenance practices, and energy management programs provided by the building manager were collected along with the system and components to determine a more accurate impact on energy consumption. Details collected from Eek Water Treatment Plant/Washeteria enable a model of the building’s energy usage to be developed, highlighting the building’s total energy consumption, energy consumption by specific building component, and equivalent energy cost. The analysis involves 6 distinguishing the different fuels used on site, and analyzing their consumption in different activity areas of the building. Water Treatment Plant/Washeteria is classified as being made up of the following activity areas: 1) Water Treatment Plant: 1,435 square feet 2) Washeteria: 597 square feet In addition, the methodology involves taking into account a wide range of factors specific to the building. These factors are used in the construction of the model of energy used. The factors include: • Occupancy hours • Local climate conditions • Prices paid for energy 2.3. Method of Analysis Data collected was processed using AkWarm© Energy Use Software to estimate energy savings for each of the proposed energy efficiency measures (EEMs). The recommendations focus on the building envelope; HVAC; lighting, plug load, and other electrical improvements; and motor and pump systems that will reduce annual energy consumption. EEMs are evaluated based on building use and processes, local climate conditions, building construction type, function, operational schedule, existing conditions, and foreseen future plans. Energy savings are calculated based on industry standard methods and engineering estimations. Our analysis provides a number of tools for assessing the cost effectiveness of various improvement options. These tools utilize Life-Cycle Costing, which is defined in this context as a method of cost analysis that estimates the total cost of a project over the period of time that includes both the construction cost and ongoing maintenance and operating costs. Savings to Investment Ratio (SIR) = Savings divided by Investment Savings includes the total discounted dollar savings considered over the life of the improvement. When these savings are added up, changes in future fuel prices as projected by the Department of Energy are included. Future savings are discounted to the present to account for the time-value of money (i.e. money’s ability to earn interest over time). The Investment in the SIR calculation includes the labor and materials required to install the measure. An SIR value of at least 1.0 indicates that the project is cost-effective—total savings exceed the investment costs. Simple payback is a cost analysis method whereby the investment cost of a project is divided by the first year’s savings of the project to give the number of years required to recover the cost of the investment. This may be compared to the expected time before replacement of the system or component will be required. For example, if a boiler costs $12,000 and results in a 7 savings of $1,000 in the first year, the payback time is 12 years. If the boiler has an expected life to replacement of 10 years, it would not be financially viable to make the investment since the payback period of 12 years is greater than the project life . The Simple Payback calculation does not consider likely increases in future annual savings due to energy price increases. As an offsetting simplification, simple payback does not consider the need to earn interest on the investment (i.e. it does not consider the time-value of money). Because of these simplifications, the SIR figure is considered to be a better financial investment indicator than the Simple Payback measure. Measures are implemented in order of cost-effectiveness. The program first calculates individual SIRs, and ranks all measures by SIR, higher SIRs at the top of the list. An individual measure must have an individual SIR>=1 to make the cut. Next the building is modified and re - simulated with the highest ranked measure included. Now all remaining measures are re - evaluated and ranked, and the next most cost-effective measure is implemented. AkWarm goes through this iterative process until all appropriate measures have been evaluated and installed. It is important to note that the savings for each recommendation is calculated based on implementing the most cost effective measure first, and then cycling through the list to find the next most cost effective measure. Implementation of more than one EEM often affects the savings of other EEMs. The savings may in some cases be relatively higher if an individual EEM is implemented in lieu of multiple recommended EEMs. For example implementing a reduced operating schedule for inefficient lighting will result in relatively high savings. Implementing a reduced operating schedule for newly installed efficient lighting will result in lower relative savings, because the efficient lighting system uses less energy during each hour of operation . If multiple EEM’s are recommended to be implemented, AkWarm calculates the combined savings appropriately. Cost savings are calculated based on estimated initial costs for each measure. Installation costs include labor and equipment to estimate the full up-front investment required to implement a change. Costs are derived from Means Cost Data, industry publicat ions, and local contractors and equipment suppliers. 2.4 Limitations of Study All results are dependent on the quality of input data provided, and can only act as an approximation. In some instances, several methods may achieve the identified savings. This report is not intended as a final design document. The design professional o r other persons following the recommendations shall accept responsibility and liability for the results. 3. Water Treatment Plant/Washeteria 3.1. Building Description The 2,032 square foot Eek Water Treatment Plant/Washeteria was constructed in 2003. The water treatment plant is occupied five hours per day, seven days per week. The co-located 8 washeteria is occupied nine hours per day, six days per week. Normally, the water treatment plant has a single occupant. The occupancy of the washeteria varies. The building is mounted on pads and has thermal siphons to help protect the foundation. It has 2 X 12 floor joists with R28 insulation, six inch stud walls with R19 insulation, and an eight inch sloped hot roof with a cathedral ceiling and 8-10 inches of insulation. The building has five 12 square foot double pane windows and two insulated steel doors. One of those doors is in the water treatment plant end of the building and the other is in the washeteria end. A heated water storage tank is located next to the water treatment plant. Within the water treatment plant is all the process equipment necessary to treat the raw well water, and the pumps necessary to both circulate the potable water to the clinic and school and maintain system pressure. Description of Heating Plants The Heating Plants used in the building are: Cast Iron boiler Nameplate Information: Weil McLain with Becket Burners (two boilers) Fuel Type: #1 Oil Input Rating: 476,000 BTU/hr Steady State Efficiency: 83 % Idle Loss: 4 % Heat Distribution Type: Water Boiler Operation: All Year Notes: The heating system circulation pumps distribute heat to the unit heaters year round. Space and Process Heating Distribution Systems Circulation pumps are used to distribute the heat generated by the boilers to both the process loads and the space heating loads. The process loads include the incoming well water, the school and clinic potable water circulation loops, and the potable water storage tank. The space heating loads include both the water treatment plant and the washeteria. Domestic Hot Water System The domestic hot water system is heated by the boilers and consists of a circulation pump and a 190 domestic hot water storage tank. The vast majority of this hot water is used for either washing clothes or taking showers, both in the washeteria. Lighting 9 The interior lighting consists of 11 three lamp four foot fluorescent fixtures with 34 watt T12 lamps and magnetic ballasts in the washeteria and 17 four lamp four foot f luorescent fixtures with 34 watt T12 lamps and magnetic ballasts in the water treatment plant. The exterior lighting consists of two 100 watt metal halide fixtures. Although the limited “on-time” hours and the subsidized electricity rates do not justify replacing these lights at this time, we recommend that as they burn out, you replace them with LED lighting. Plug Loads The existing plug loads are minimal and normal for a water treatment plant. Major Equipment The major equipment is that used for the treatment, storage, and circulation of potable water in the water treatment plant and the washers, dryers, and showers in the washeteria. 3.2 Predicted Energy Use 3.2.1 Energy Usage / Tariffs The electric usage profile charts (below) represents the predicted electrical usage for the building. If actual electricity usage records were available, the model used to predict usage was calibrated to approximately match actual usage. The electric utility measures consumption in kilowatt-hours (kWh) and maximum demand in kilowatts (kW). One kWh usage is equivalent to 1,000 watts running for one hour. The fuel oil usage profile shows the fuel oil usage for the building. Fuel oil consumption is measured in gallons. One gallon of #1 Fuel Oil provides approximately 132,000 BTUs of energy. Electricity at the Eek Water Treatment Plant is provided by AVEC under its Small Commercial User Rate. The average cost for each type of fuel used in this building is shown below in Table 3.1. This figure includes all surcharges, subsidies, and utility customer charges: Table 3.1 – Average Energy Cost Description Average Energy Cost Electricity $ 0.16/kWh #1 Oil $ 5.36/gallons 3.2.1.1 Total Energy Use and Cost Breakdown At current rates, City of Eek pays approximately $43,978 annually for electricity and #1 fuel costs for the Water Treatment Plant/Washeteria. 10 Figure 3.1 below reflects the estimated distribution of costs across the primary end uses of energy based on the AkWarm© computer simulation. Comparing the “Retrofit” bar in the figure to the “Existing” bar shows the potential savings from implementing all of the energy efficiency measures shown in this report. Figure 3.1 Annual Energy Costs by End Use Figure 3.2 below shows how the annual energy cost of the building splits between the different fuels used by the building. The “Existing” bar shows the breakdown fo r the building as it is now; the “Retrofit” bar shows the predicted costs if all of the energy efficiency measures in this report are implemented. Figure 3.2 Annual Energy Costs by Fuel Type Figure 3.3 below addresses only Space Heating costs. The figure shows how each heat loss component contributes to those costs; for example, the figure shows how much annual space heating cost is caused by the heat loss through the Walls/Doors. For each component, the Add Space Heating Other Electrical Lighting Domestic Hot Water Water Treatment, Storage, and Circulation Washeteria Dryers 11 space heating cost for the Existing building is shown (blue bar) and the space heating cost assuming all retrofits are implemented (yellow bar) are shown. Figure 3.3 Annual Space Heating Cost by Component The tables below show AkWarm’s estimate of the monthly fuel use for each of the fuels used in the building. For each fuel, the fuel use is broken down across the energy end uses. Electrical Consumption (kWh) Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Other Electrical 289 263 289 279 289 279 289 289 279 289 279 289 Lighting 466 425 466 451 466 451 466 466 451 466 451 466 Water Processing, Storage & Circulation 1003 914 1003 970 1003 826 854 854 970 149 144 149 Clothes Drying 1761 1605 1761 1705 1761 1705 1761 1761 1705 1761 1705 1761 Ventilation Fans 0 0 0 0 0 0 0 0 0 0 0 0 Domestic Hot Water 12 11 13 13 14 14 14 14 14 13 12 12 Space Heating 514 468 513 495 510 493 510 510 230 2 3 4 Space Cooling 0 0 0 0 0 0 0 0 0 0 0 0 Fuel Oil #1 Consumption (Gallons) Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Water Treatment, Storage, & Circulation 343 312 343 332 343 89 92 92 332 251 243 251 Clothes Drying 153 140 153 148 153 148 153 153 148 153 148 153 Domestic Hot Water 56 52 62 83 138 134 138 138 134 84 61 53 Space Heating 182 163 150 80 0 0 0 0 0 86 143 200 3.2.2 Energy Use Index (EUI) Energy Use Index (EUI) is a measure of a building’s annual energy utilization per square foot of building. This calculation is completed by converting all utility usage consumed by a building for one year, to British Thermal Units (Btu) or kBtu, and dividing this number by the building square footage. EUI is a good measure of a building’s energy use and is utilized regularly for comparison of energy performance for similar building types. The Oak Ridge National 12 Laboratory (ORNL) Buildings Technology Center under a contract with the U.S. Department of Energy maintains a Benchmarking Building Energy Performance Program. The ORNL website determines how a building’s energy use compares with similar facilities throug hout the U.S. and in a specific region or state. Source use differs from site usage when comparing a building’s energy consumption with the national average. Site energy use is the energy consumed by the building at the building site only. Source energy use includes the site energy use as well as all of the losses to create and distribute the energy to the building. Source energy represents the total amount of raw fuel that is required to operate the building. It incorporates all transmission, delivery, an d production losses, which allows for a complete assessment of energy efficiency in a building. The type of utility purchased has a substantial impact on the source energy use of a building. The EPA has determined that source energy is the most comparable unit for evaluation purposes and overall global impact. Both the site and source EUI ratings for the building are provided to understand and compare the differences in energy use. The site and source EUIs for this building are calculated as follows. (See Table 3.4 for details): Building Site EUI = (Electric Usage in kBtu + Oil Usage in kBtu + similar for other fuels) Building Square Footage Building Source EUI = (Electric Usage in kBtu X SS Ratio + Oil Usage in kBtu X SS Ratio + similar for other fuels) Building Square Footage where “SS Ratio” is the Source Energy to Site Energy ratio for the particular fuel. Table 3.4 Water Treatment Plant/Washeteria EUI Calculations Energy Type Building Fuel Use per Year Site Energy Use per Year, kBTU Source/Site Ratio Source Energy Use per Year, kBTU Electricity 42,891 kWh 146,386 3.340 488,928 #1 Oil 6,965 gallons 919,322 1.010 928,515 Total 1,065,707 1,417,443 BUILDING AREA 2,032 Square Feet BUILDING SITE EUI 524 kBTU/Ft²/Yr BUILDING SOURCE EUI 698 kBTU/Ft²/Yr * Site - Source Ratio data is provided by the Energy Star Performance Rating Methodology for Incorporating Source Energy Use document issued March 2011. 3.3 AkWarm© Building Simulation An accurate model of the building performance can be created by simulating the thermal performance of the walls, roof, windows and floors of the building. The HVAC system and central plant are modeled as well, accounting for the outside air ventilation required by the building and the heat recovery equipment in place. The model uses local weather data and is trued up to historical energy use to ensure its accuracy. The model can be used now and in the future to measure the utility bill impact of all types of energy projects, including improving building insulation, modifying glazing, changing air 13 handler schedules, increasing heat recovery, installing high efficiency boilers, using variable air volume air handlers, adjusting outside air ventilation and adding cogeneration systems. For the purposes of this study, the Water Treatment Plant/Washeteria was modeled using AkWarm© energy use software to establish a baseline space heating and cooling energy usage. Climate data from Eek was used for analysis. From this, the model was be calibrated to predict the impact of theoretical energy savings measures. Once annual energy savings from a particular measure were predicted and the initial capital cost was estimated, payback scenarios were approximated. Limitations of AkWarm© Models • The model is based on typical mean year weather data for Eek. This data represents the average ambient weather profile as observed over approximately 30 years. As such, the gas and electric profiles generated will not likely compare perfectly with actual energy billing information from any single year. This is especially true for years with extreme warm or cold periods, or even years with unexpectedly moderate weather. • The heating and cooling load model is a simple two-zone model consisting of the building’s core interior spaces and the building’s perimeter spaces. This simplified approach loses accuracy for buildings that have large variations in cooling/heating loads across different parts of the building. • The model does not model HVAC systems that simultaneously provide both heating and cooling to the same building space (typically done as a means of providing temperature co ntrol in the space). The energy balances shown in Section 3.1 were derived from the output generated by the AkWarm© simulations. 4. ENERGY COST SAVING MEASURES 4.1 Summary of Results The energy saving measures are summarized in Table 4.1. Please refer to the individual measure descriptions later in this report for more detail. 14 Table 4.1 Water Treatment Plant/Washeteria, Eek, Alaska PRIORITY LIST – ENERGY EFFICIENCY MEASURES Rank Feature Improvement Description Annual Energy Savings Installed Cost Savings to Investment Ratio, SIR Simple Payback (Years) 1 Backwash of Filters At present, backwash is being done twice each time and only needs to be done once. This practice results in a significant use of water and therefore a significant use of oil to heat that water. This is an operational change, therefore there is no implementation cost $204 $0 >100 0.0 2 Setback Thermostat: Water Treatment Plant Implement a Heating Temperature Unoccupied Setback to 50.0 deg F for the Water Treatment Plant space. $761 $100 114.26 0.1 3 Setback Thermostat: Washeteria Implement a Heating Temperature Unoccupied Setback to 50.0 deg F for the Washeteria space. $332 $100 49.88 0.3 4 Heating and Domestic Hot Water Convert boilers to cold start and set up existing Tekmar controller to shut off boilers and associated pumps when the washeteria is closed unless the thermal loads drop below acceptable temperatures. $5,091 $25,000 3.86 4.9 5 Washeteria Clothes Dryers Re-Commission the dryer air plenum make up heat and lower setpoint from 70 degrees to 50 degrees. Install unoccupied setback when washeteria is closed to 40. $1,829 $15,000 1.66 8.2 6 Air Tightening Perform air sealing to reduce air leakage by 250 cfm at 50 Pascals. $189 $1,800 1.08 9.5 TOTAL, cost-effective measures $8,408 $42,000 3.39 5.0 4.2 Interactive Effects of Projects The savings for a particular measure are calculated assuming all recommended EEMs coming before that measure in the list are implemented. If some EEMs are not implemented, savings for the remaining EEMs will be affected. For example, if ceiling insulation is not added, then savings from a project to replace the heating system will be increased, because the heating system for the building supplies a larger load. In general, all projects are evaluated sequentially so energy savings associated with one EEM would not also be attributed to another EEM. By modeling the recommended project 15 sequentially, the analysis accounts for interactive affects among the EEMs and does not “double count” savings. Interior lighting, plug loads, facility equipment, and occupants generate heat within the building. When the building is in cooling mode, these items contribute to the overall cooling demands of the building; therefore, lighting efficiency improvements will reduce cooling requirements in air-conditioned buildings. Conversely, lighting-efficiency improvements are anticipated to slightly increase heating requirements. Heating penalties and cooling benefits were included in the lighting project analysis. 4.3 Building Shell Measures 4.3.1. Energy Efficiency Measure: Seal Air Leaks Rank Estimated Air Leakage Recommended Air Leakage Target Energy Auditor Comments Cost Savings 6 Air Tightness from Blower Door Test: 1800 cfm at 50 Pascals Perform air sealing to reduce air leakage by 250 cfm at 50 Pascals. $1,800 $189 Many buildings, especially older ones, have air leaks allowing heated and cooled air to escape when the air pressure differs between the inside and outside of the building. Because these leaks allow unconditioned air to enter as conditioned air is lost, a ir leaks can be a significant waste of energy and money. They also make the building drafty. Many buildings have hidden air leaks requiring a weatherization technician to find and seal. It is recommended that you seal around the window frames and door frames and add weather stripping to the doors in both the washeteria and in the water treatment plant. A reduction of 250 CFM at 50 Pascals will result in a savings of approximately $189 per year in fuel oil. Buildings with indoor air pollution caused by combustion heating, tobacco smoking, or moisture problems, may require more ventilation than average buildings. 4.4 Heating Measures 4.4.1. EEM Heating Plants and Distribution Systems A heating system is expected to last approximately 20-25 years, depending on the system. Since your boilers are relatively new, it is worth upgrading the controls on your current boilers. Recommendation: Convert boilers to cold start and up-grade your Tekmar controller to a model that can shut off boilers and associated pumps when the washeteria is closed unless the thermal loads drop below acceptable temperatures. This will require some re-piping to separate the heat circulation loops from the process circulation heat add loops. Included in this EEM is shutting off the domestic hot water pump when the washeteria is unoccupied. Estimated Cost: $25,000 Estimate Savings per Year: $5,091 16 Energy Auditor Comments: This conversion from a always hot boiler control system to a hot on demand only system will both result in significant fuel oil and electricity savings and keep the mechanical room from overheating. This upgraded control system will also shut off the heat to the hot water heater when the washeteria is closed. 4.4.1.1. Existing Systems 4.4.1.1.1 Cast Iron boiler (two identical) Description: Weil McLain with Becket Burners heating plant fueled by #1 Fuel Oil, with a Natural draft. Size: 476,000 BTU/h Efficiency (Steady State & Idle): 83% Portion of heat supplied by this unit: 100% Notes: The heating system circulation pumps distribute heat to the unit heaters year round. 4.4.1.1.2 Unit Heaters and Space Heating Circulation Loops are used for space heating. 4.4.2 Programmable Thermostats Location Existing Situation Recommended Improvement Install Cost Annual Savings Notes Water Treatme nt Plant Existing Unoccupied Heating Setpoint: 65 deg F Implement a Heating Temperature Unoccupied Setback to 50.0 deg F for the Water Treatment Plant space. $100 $761 Washet eria Existing Unoccupied Heating Setpoint: 70 deg F Implement a Heating Temperature Unoccupied Setback to 50.0 deg F for the Washeteria space. $100 $332 There is no reason to keep the water treatment plant temperature set at 65 degrees during unoccupied hours and the washeteria set at 70 degrees during unoccupied hours. The set back thermostats will allow these temperatures to be lowered to 50 degrees dur ing unoccupied hours. This can be easily implemented with the new Tekmar controller discussed above. 4.5 Lighting Upgrades The goal of this section is to present any lighting energy conservation measures that may also be cost beneficial. It should be noted that replacing current lamps with more energy-efficient equivalents will have a small effect on the building heating and cooling loads. The building cooling load will see a small decrease from an upgrade to more efficient bulbs and the heating load will see a small increase, as the more energy efficient bulbs give off less heat. Based on your run hours, your existing lighting, and the present cost of electricity, it is not cost effective to replace either your fluorescent interior lighting or your metal halide exterior lighting. However, as these fixtures do need to be replaced, it is recommended that you replace them both with LED fixtures. The LED eliminates the need for ballasts and produces a 17 higher lumen output per watt consumed. The price of fixtures utilizing this new technology is dropping as the produced quantities increase. 4.6 Process Energy Efficiency Measures 4.6.1 Backwash Location Life in Years Description Recommendation Cost Savings Notes WTP 15 At present, backwash is being done twice each time and only needs to be done once. This practice results in a significant use of water and therefore a significant use of oil to heat that water. This is an operation change, therefore there is no implementation cost $0 $204 4.6.2 Clothes Dryer Location Life in Years Energy Source Description Recommendation Cost Savings Notes Washeteria 15 #1 Fuel Oil Re-commission the dryer air plenum make up heat and lower setpoint from 70 degrees to 50 degrees. Install unoccupied setback when washeteria is closed to 40. $15,000 $1,829 This energy efficiency measure involves a small amount of design and therefore should be implemented with the boiler control modifications discussed above. It involves two changes. The first is to add the controls necessary to setback the dryer air plenum temperature during both occupied and unoccupied hours. The second is to shut off the circulation pump when there is not call for heat in the plenum. 5. ENERGY EFFICIENCY ACTION PLAN Through inspection of the energy-using equipment on-site and discussions with site facilities personnel, this energy audit has identified several energy-saving measures. The measures will reduce the amount of fuel burned and electricity used at the site. The projects will not degrade the performance of the building and, in some cases, will improve it. 18 Several types of EEMs can be implemented immediately by building staff, and others will require various amounts of lead time for engineering and equipment acquisition. In some ca ses, there are logical advantages to implementing EEMs concurrently. For example, if the same electrical contractor is used to install both lighting equipment and motors, implementation of these measures should be scheduled to occur simultaneously. APPENDIX Attached to this report is Appendix A. The objective of Appendix A is to provide the Eek City Council and the Water Plant Operator with a wide range of energy conservation and renewable energy websites to further your knowledge. 19 Appendix A – Listing of Energy Conservation and Renewable Energy Websites Lighting Illumination Engineering Society - http://www.iesna.org/ Energy Star Compact Fluorescent Lighting Program - www.energystar.gov/index.cfm?c=cfls.pr_cfls DOE Solid State Lighting Program - http://www1.eere.energy.gov/buildings/ssl/ DOE office of Energy Efficiency and Renewable Energy - http://apps1.eere.energy.gov/consumer/your_workplace/ Energy Star – http://www.energystar.gov/index.cfm?c=lighting.pr_lighting Hot Water Heaters Heat Pump Water Heaters - http://apps1.eere.energy.gov/consumer/your_home/water_heating/index.cfm/mytopic=12840 Solar Water Heating FEMP Federal Technology Alerts – http://www.eere.energy.gov/femp/pdfs/FTA_solwat_heat.pdf Solar Radiation Data Manual – http://rredc.nrel.gov/solar/pubs/redbook Plug Loads DOE office of Energy Efficiency and Renewable Energy – http:apps1.eere.energy.gov/consumer/your workplace/ Energy Star – http://www.energystar.gov/index.cfm?fuseaction=find_a_product The Greenest Desktop Computers of 2008 - http://www.metaefficient.com/computers/the-greenest-pcs-of- 2008.html Wind AWEA Web Site – http://www.awea.org National Wind Coordinating Collaborative – http:www.nationalwind.org Utility Wind Interest Group site: http://www.uwig.org WPA Web Site – http://www.windpoweringamerica.gov Homepower Web Site: http://homepower.com Windustry Project: http://www.windustry.com Solar NREL – http://www.nrel.gov/rredc/ Firstlook – http://firstlook.3tiergroup.com 20 TMY or Weather Data – http://rredc.nrel.gov/solar/old_data/nsrdb/1991-2005/tmy3/ State and Utility Incentives and Utility Policies - http://www.dsireusa.org Alaska Energy Authority Alaska Native Tribal Health Consortium Grant Management for Communities 2009 - 2014 Community AEA Grant # ANTHC Grant # Ambler Heat Recovery 2195453 AN-09-Z06 Atmautluak Heat Recovery 7060935 AN-13-Z36 Huslia Biomass 7050821 AN-12-Z24 IRHA Biomass 7050820 AN-12-Z23 Kobuk Biomass 7050840 AN-12-Z22 Koyukuk VEEP 7520004 AN-14-Z47 Kwinhagak Heat Recovery 7060937 AN-13-Z33 Marshall Heat Recovery 7060940 AN-13-Z35 Noorvik Heat Recovery 7060941 AN-13-Z32 Russian Mission Heat Recovery 7050844 AN-12-Z23 Savoonga Heat Recovery 7060934 AN-13-Z34 Scammon Bay Hydro-electric 7060847 AN-12-Z21 Shishmaref Heat Recovery 7050856 AN-12-Z20 Sleetmute Heat Recovery 7060848 AN-12-Z18 Brevig Mission Heat Recovery 7071040 AN 14-Z42 Emmonak Heat Recovery 7071061 AN 14-Z41 Gambell Wind Energy Recovery 7050876 AN 13-Z26 St. Marys Heat Recovery 7071043 AN 14-Z43 Stebbins Heat Recovery 7060939 AN 13-Z31 Tuntutuliak Heat Recovery 7071085 AN 14-Z40 Venetie Heat Recovery 7071044 AN 14-Z39 AEA Round 9 - ANTHC