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HomeMy WebLinkAboutKakeApplicationTHRHA    2014 Grant Application Solar PV Renewable Energy Fund Round VIII         Applicant  Tlingit Haida Regional Housing Authority  Tribally Designated Housing Entity     Project Title  Kake senior housing solar PV    Project Location Kake, Alaska    Project Contact   Craig Moore  VP Development & Construction Management  P.O. Box 32237       Juneau, Alaska 99803   Phone: 907‐780‐6868  Fax: 907‐780‐6895  Email: cmoore@thrha.org    Administrative Contact  Joanne Wiita  Planning and Grant Administration        P.O. Box 32237       Juneau, Alaska 99803   Phone: 907‐780‐6868, direct 907‐780‐3158   Fax: 907‐780‐6895   Email: jwiita@thrha.org  Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 1 of 22 7/2/14 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Tlingit Haida Regional Housing Authority Type of Entity: Housing Authority Fiscal Year End: December 31 Tax ID # 920044273 Tax Status: ☐ For-profit ☒ Non-profit ☐ Government (check one) Date of last financial statement audit: September 2014 Mailing Address: Physical Address: PO Box 32237 5446 Jenkins Dr Juneau AK 99803-2237 Juneau AK 99801 Telephone: Fax: Email: 907 780 6868 jwiita@thrha.org 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name: Joanne Wiita Title: Planning and Grant Administration Mailing Address: PO Box 32237, Juneau AK 99803-2237 Telephone: Fax: Email: 907 780 3158 jwiita@thrha.org 1.1.1 APPLICANT ALTERNATE POINTS OF CONTACT Name Telephone: Fax: Email: Craig Moore 907 780 3130 cmoore@thrha.org Jocelyn Ramirez 907 780 6868 jramirez@thrha.org Charlie Horvath 907 780 3118 Chorvath@thrha.org Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 2 of 22 7/2/14 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 executive management. 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/vREFund8.html. (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) The benefit will be for low- to moderate income rural Alaska residential housing. Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 3 of 22 7/2/14 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. Kake senior housing solar PV 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, 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. Kake Senior Center: 177 3rd. Ave. Kake, AK Lat/Long. 56.977. -133.947 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. Kake Alaska 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type ☐ Wind ☐ Biomass or Biofuels (excluding heat-only) ☐ Hydro, Including Run of River ☐ Hydrokinetic ☐ Geothermal, Excluding Heat Pumps ☐ Transmission of Renewable Energy ☒ Solar Photovoltaic ☐ Storage of Renewable ☐ Other (Describe) ☐ Small Natural Gas 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 Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 4 of 22 7/2/14 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of the proposed hot water project. THRHA will install a ground-mounted PV solar array at the Kake Senior Center. The Senior Center is currently undergoing expansion and modernization to include new community and residential space, which will almost double the current electrical usage. The PV system will be designed to produce a minimum of 10,000 Watts and will displace approximately 25% -30% of the projected increase in electrical load at the Senior Center. The intent is to keep electrical operating costs sustainable. It will not reduce the current utility usage, and therefore will not have a negative impact on the local utility IPEC. The PV system is intended only to avoid additional utility costs on a percentage of the new added usage expected when the modernization improvements are completed. The system will be parallel to the utility grid system, isolated with a non-grid tie inverter, and will not feed back into the utility grid system. The system will have battery storage to allow for night-time operation of specific house loads. The Project will include final design and installation of the PV system. 2.5 PROJECT BENEFIT Briefly discuss the financial and public benefits that will result from this hot water project, (such as reduced fuel costs, lower energy costs, local jobs created, etc.) Kake is located in rural SE Alaska and endures electric and heating costs that are 275% above the National average. The Senior Center provides low income housing for senior citizens in Kake, and with the addition of new common facility (now under construction) including dining hall, commercial kitchen, exercise room, lobby, laundry facility, maintenance shop and storage, multi-purpose meeting rooms and full ADA accessibility, it will function as an important community center for Kake’s senior citizens to interact with their community and partake of services to improve their quality of life. The solar PV will benefit the project and the community by helping to avoid additional electrical utility costs. The savings on operating funds will keep the facility more sustainable, allow us to keep the rents affordable for Kake’s seniors, and allow new program services to be offered at the facility for the seniors in the community. The project will also demonstrate the effectiveness of solar PV integration in the high-cost diesel electric communities, and will bring a level of experience and expertise to SE that is currently lacking. THRHA must reduce operating costs in order to increase public benefit by reducing costs that will enable THRHA to create new programs and services for the entire Southeast region. Other benefits may include; a) avoided greenhouse gas emissions, b) community sustainability and energy independence, and c) local development and enhanced community vitality. In addition to the direct fuel reduction other benefits include: - reduced long-term dependence on outside sources of energy; - reduced exposure to fuel price volatility; - reduced air pollution resulting from reducing fossil fuel combustion; - reduced possibility of spills from fuel transport & storage; and - reduced overall carbon footprint and its contribution to climate change. Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 5 of 22 7/2/14 2.6 PROJECT BUDGET OVERVIEW Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of other contributions to the project. THRHA is currently modernizing and expanding the existing Kake Senior Center. During preliminary design work, an energy analysis and preliminary PV feasibility study was conducted. As a result, provisions were made in the building design and the existing building contract to install infrastructure (conduit, panels, battery storage space, panel location) to accommodate a future PV installation. As part of the modernization project we are also improving the thermal performance of the building shell through increased insulation, and providing upgrades to energy efficient heating, HVAC and lighting systems. The value of work associated with the PV installation already included in the existing building contract is approximately $9,000. As such, the remaining costs for installing the proposed 10 KW PV system are limited primarily to final design and installation of the solar arrays, non-grid tie inverter, switches, and battery storage. THRHA seeks AEA funds in the amount of $56,000 to complete this work, based on a final installed cost of $6.00/watt. THRHA intends to commit $4,000 as in-kind match derived from IHBG formula funds for this project. Additionally, THRHA will utilize local labor and absorb costs to keep the expenses down. Local labor will be under the supervision of the qualified contractor. Qualified local work force will install the panels and prepare the site. Project grant expenses will cover the qualified contractor that will complete all wiring, switches, inverters, and connections. THRHA will absorb all administrative costs in order to keep the costs of this project to a minimum. 2.7 COST AND BENEFIT SUMARY Summarize the grant request and the project’s total costs and benefits below. Costs for the Current Phase Covered by this Grant (Summary of funds requested) 2.7.1 Grant Funds Requested in this application $ 56,000 2.7.2 Cash match to be provided $ 0 2.7.3 In-kind match to be provided $ 4,000 2.7.4 Other grant funds to be provided $ 0 2.7.5 Total Costs for Requested Phase of Project (sum of 2.7.1 through 2.7.4) $ 60,000 Other items for consideration 2.7.6 Other grant applications not yet approved $ n/a Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.7 Total Project Cost Summary from Cost Worksheet, Section 4.4.4, including estimates through construction. $ 60,000 2.7.8 Additional Performance Monitoring Equipment not covered by the project but required for the Grant Only applicable to construction phase projects $ 2,000 2.7.9 Estimated Direct Financial Benefit (Savings) $ increased electric demand is Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 6 of 22 7/2/14 The economic model used by AEA is available at www.akenergyauthority.org/REFund8.html. This economic model may be used by applicants but is not required. Other economic models developed by the applicant may be used, however the final benefit/cost ratio used will be derived from the AEA model to ensure a level playing field for all applicants. expected due to building renovation, this proposed system will offset the increased electric demand. 2.7.10 Other Public Benefit If you can calculate the benefit in terms of dollars please provide that number here and explain how you calculated that number in Section 5 below. $ see sec 5 SECTION 3 – PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope, schedule and budget proposed in the application. 3.1 Project Manager THRHA will provide the overall management and oversight of this proposed project. The program manager is Craig Moore, VP of THRHA. Craig is responsible for THRHA Development and Construction Management and will oversee the project. Craig will perform all management and oversight functions including, but not limited to: procuring and contracting of services and materials, preparing and implementing the project schedule, working with AEA throughout the project to ensure outcomes as planned. Craig has been in his current role with the THRHA for over 15 years and has overseen and managed numerous construction projects. Craig’s contact information is: 907 780 3130 cmoore@thrha.org. Joanne Wiita will is responsible for grant administration, her contact information is: 907 780 3158 jwiita@thrha.org 3.2 Project Schedule and Milestones Phase III Final Design and Permitting Requirements Milestones Tasks Start Date End Date 1. RFP Prepared RFP will include for reference all existing building and electrical plans, including load calcs and the preliminary analysis conducted by Cayambe Engineering. Bidders will be selected on a basis of experience, cost, quality of design and components (which will be subject to a 3rd party review) , and a component including staff training and follow-up monitoring and service. 2 months 2. RFP Design and installation Advertise RFP 1 month 3. Contract Review of responses and third party review, award, enter agreement. 2 weeks 4. Construction Monitor, report, maintain costs within budget and cost overruns. 5 months 5. Final testing, commissioning Staff training, testing, and commissioning 3 weeks 6. Monitoring and Reporting First year by original installation contractor, subsequent years by THRHA staff (with contractor assistance if needed) 10 years Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 7 of 22 7/2/14 3.3 Project Resources Describe the personnel, contractors, personnel or firms, equipment, and services you will use to accomplish the project. Include any partnerships or commitments with other entities you have or anticipate will be needed to complete your project. Describe any existing contracts and the selection process you may use for major equipment purchases or contracts. Include brief resumes and references for known, key personnel, contractors, and suppliers as an attachment to your application. This project will be managed by Craig Moore that is responsible for securing the engineer consultant or working directly with AEA staff. THRHA staff will assist with engineering, environmental, economic analysis and other related tasks. THRHA will work closely with the Organized Village of Kake by utilizing their Solar assessment as source for Kake. THRHA will also work in tandem with local stakeholders to expand on the work and research that they have already completed, stakeholders include; the Tribe, City of Kake, IPEC, and the Kake Community Energy Committee. The current design team for the subject building includes Mark Longmeier, P.E., Principal Cayambe Engineering, PS. Mark has over 35 years of experience working with power distribution, lighting, and low voltage system design and specification, energy analysis, and conservation program operation for commercial, institutional, and light industrial facilities. His management and technical experience encompasses all aspects of the evaluation and design of energy conservation measures, including facility audits, identifying energy conservation measures, obtaining utility and institutional agency financial incentives, modeling building energy consumption, calculating energy savings, preparing cost estimates, performing economic analysis, measure construction/installation administration, and long term verification of measure savings. THRHA will secure contract partners by following its procurement policy procedures as is done by THRHA in all major contracting including an RFP process that will be utilized for award of the Kake solar system. Contracts are entered upon award of RFP response. 3.4 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Please provide an alternative contact person and their contact information. THRHA will keep AEA apprised of the project's status by preparing routine reports that meet AEA's reporting requirements and by other exchanges of information on an as needed basis. Points of contact for this project include the grant applicant point of contact (Joanne Wiita) and the project manager (Craig Moore). Contact information for each is provided in this grant application. Onsite will be THRHA’s field rep, Ryan Friday that reports directly to the Maintenance Manager, Robert Reimer. Onsite data loggers will be monitored and recorded by Ryan that will be downloaded and provided in the format and matrix per requirements by AEA. Due to broadband limited capacity, internet linkage may not provide remote monitoring thus electronic data will be downloaded on site and provided to any retained consultants and/or AEA via email or hard drive data storage. Craig Moore 907 780 3130 cmoore@thrha.org and Joanne Wiita 907 780 3158 jwiita@thrha.org Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 8 of 22 7/2/14 3.5 Project Risk Discuss potential problems and how you would address them. Snow: Kake receives very little snow. According to the Western Regional Climate Center, the average snow depth for the highest snow fall month (February) taken over an average from 1971 to 1992 is 5 inches. Local THRHA staff report snow does not accumulate against the south side of the existing senior center where the PV panels will be located, as it melts rapidly from the unshaded solar exposure, and there is no drifting on this side of the building. In addition, the PV array will be ground mounted where THRHA staff will have easy walking access for cleaning and maintenance of the arrays. The metal roof will be provided with snow stops to stop any potential snow from sliding and damaging the arrays. The roof overhang is 36” horizontal, so most of the panel will be under the eaves and protected. Vandalism: The PV arrays will be located adjacent the existing apartment building, directly below the windows of all the apartments occupied full time by Kake’s seniors. The seniors will have full view of anyone approaching the panels. The building has exterior security lighting. The PV array location is behind the building where the ground slopes off with a drop of over 30 feet to the lots below, thus is protected from anyone throwing stones at the panels. In addition, there is a gated service access road, available only to authorized THRHA personnel, that separates the location of the PV arrays from the lots below, further separating the panels from any potential vandalism from below. Cost overruns: THRHA has maintenance funds available to cover any gap in cost overruns in the event that might occur. Maintenance and operations risk: THRHA has full time trained maintenance staff available at the Senior Center, with tools and equipment. As part of the contract, the THRHA staff will receive in- depth training from the installation contractor on operations and maintenance of the PV system. The maintenance staff has an office and shop in the basement of the senior center, so is available on short notice to provide any emergency maintenance as needed. 3.6 Project Accountants THRHA manages an annual budget of $12 million and employs over 40 technical and administrative personnel. The VP of Administration, Joyce Niven, will lead fiscal management on this project. VP Administration Knowledge / Experience: Joyce Niven has worked in the accounting field for over 20 years and for the past 12 years, she has been employed by THRHA. She has a bachelors of Science degree in business and finance from Western Washington University, Bellingham Washington. Joyce is knowledgeable and proficient in reporting requirements and deadlines of the various THRHA funding agencies including existing State of Alaska and IHBG grant reporting, and account structures. Her accounting expertise as well as her experience and knowledge of THRHA and southeast Alaska brings the THRHA Fiscal Department the ability to address, plan and handle all accounting aspects of AEA grant accounting. Under the leadership of Joyce Niven, THRHA has successfully closed five new construction project accounts and during the past three years, two of these projects were closed with multiple funding sources. VP Administration Role and Responsibilities THRHA VP Administration, Joyce Niven, will provide oversight to the AEA grant and THRHA accounting. She will supervise Finance Manager Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 9 of 22 7/2/14 Irene Tupou who is responsible for all accounting functions including grant accounting that is performed by her staff. Irene will be responsible for all accounting procedures and activities and oversee the THRHA Grant Accountant. Irene’s role of the AEA grant will also include oversight preparation of AEA fiscal reporting. Irene will be responsible for requesting reimbursement to the AEA project costs and she is responsible for internal monitoring and enforcing of AEA requirements during the grant. Her role will include adherence and coordination of fiscal reporting to AEA. Irene is a member of THRHA management, she coordinates all aspects of project implementation with her senior colleagues at THRHA to ensure that THRHA complies, and maintains reporting on time and within budget. THRHA’s Finance Manager Irene Tupou can be reached at 907 780 6868 itupou@thrha.org 3.7 Financial Accounting System Discuss the accounting system that will be used to account for project costs and who will be the primary user of the accounting system. Bookkeeping functions are performed in-house using Emphasys Systems Elite, to manage fund accounting that meets Federal requirements (OMB Circular A-133). Finance Manager Irene Tupou is responsible for all accounting functions including grant accounting that is performed by her staff. THRHA’s Finance Manager Irene Tupou can be reached at 907 780 6868 Email: itupou@thrha.org 3.8 Financial Management Controls THRHA financial management and internal controls provide assurance that project goals and objectives will be met and funds will be used efficiently. To provide checks and fiscal oversight, THRHA’s internal financial controls and policy separate duties into three financial functions (authorizing transactions; keeping records; and handling funds). Program funds are tracked in separate grant accounts with a project code allocated to each. Upon award of funding THRHA conducts a grant implementation meeting and review newly established codes for associated expenses. Only allowable expenses are coded and paid out of grant funds, the expenses are approved by the project manager and monthly grant meetings are held among the finance staff, project manager, and grant administrator to ensure all expenses are allowable and coded properly according to the approved budget. THRHA also tracks grant inkind and match including labor and expenses that are not allowable as grant reimbursement. In addition, THRHA conducts an annual external financial audit. THRHA will be responsible for the implementation and administration of this project. THRHA has a Procurement Policy in place which will be applied to the procurement of all contract labor and materials secured for this project. The THRHA Board of Commissioners, by resolution has adopted this Policy for implementation of all THRHA projects. THRHA Policy outlines the process for both procurement of identified goods and services required by established thresholds of the purchases (small purchase $0-$100,000); Sealed Bids/invitation for Bids (IFB), when applicable over $100,000; Competitive Proposals/Request for Proposals (RFP), when applicable over $100,000; and Non Competitive (Sole Source) Proposals, as well as the methods used for purchase (request for price quotes, request for proposals, and invitation for bids) that controls the method of procurement. Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 10 of 22 7/2/14 SECTION 4 – PROJECT DESCRIPTION AND TASKS The level of information will vary according to phase(s) of the project you propose to undertake with grant funds. If some work has already been completed on the project and the funding request is for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. 4.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available. Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be available, in 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. Solar energy is available in Kake in sufficient quantity to be economically feasible. The amount of energy is limited only by the number of solar panels that can be installed given sufficient investment capital and available un-shaded land. Other alternatives are not feasible. The location does not have adequate wind and it appears that hydro-power will not be available in the near future. THRHA’s electrical consultant (Mark Longmeier, Principal, Cayambe Engineering, PS) has reviewed the solar insolation resource for Kake using data available online, as well as conducting a site investigation and reviewing data from the Kake Community Energy Committee and data available for the solar arrays at OVK. Mark has consulted with Peter Bibb of the local utility IPEC on all grid related issues, including the solar PV option. Recent studies and empirical information collected by OVK ‘s PV arrays show there is adequate solar insolation resource in Kake. Panel Power 182 watts System Power 10000 watts # panels 55 units Avoided kWh rate 0.57 $/kWh Rate  is for kWh utilized over 500 kWh per month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Solar Irrandiance  (kWh/square meter)0.89 1.89 2.97 4.06 4.5 4.47 4.24 3.81 3.03 2.21 1.23 0 Average wh/day 8,900 18,900 29,700 40,600 45,000 44,700 42,400 38,100 30,300 22,100 12,300 0 Average kWh/day 8.9 18.9 29.7 40.6 45 44.7 42.4 38.1 30.3 22.1 12.3 0 # days/month 31 28 31 30 31 30 31 31 30 31 30 31 Average kWh/month 276 529 921 1,218 1,395 1,341 1,314 1,181 909 685 369 0 Cumulative  kWh 276 805 1,726 2,944 4,339 5,680 6,994 8,175 9,084 9,769 10,138 10,138 Avoided Cost/Month $157 $302 $525 $694 $795 $764 $749 $673 $518 $391 $210 $0 Cumulative  Avoided Cost $157 $459 $984 $1,678 $2,473 $3,237 $3,987 $4,660 $5,178 $5,569 $5,779 $5,779 Average energy generated per month on panel at 32 degrees from vertical (kWh/month) Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 11 of 22 7/2/14 There are no permitting documents required for this installation by either the City or the Fire Marshal. IPEC has provided a letter of support for the project, as it will not be negatively impacting their current utility usage (in fact, they are projected to see an increase in usage when the new senior center improvements are complete, even with the solar PV installation installed). THRHA has incorporated other energy efficient measures in the building, including R-values that exceed BEES (outside rigid foam board insulation on walls for a total wall R-value of about R-30, R-60 insulation in attic), energy efficient HRV systems for ventilation, Low-E Argon windows with 0.28 U-values, a biomass (wood- pellet) heating system from Maine Energy Systems (a state-of- the art Austrian design by OkoFen with minimum 80% efficiency) , energy efficient lighting, and Energy Star appliances, all to improve the energy efficiency and minimize the energy consumption of the building. The building will no longer utilize heating oil. LPG will be utilized for backup heating and domestic hot water production. DESCRIPTION HP AMPS MCA VOLTAGE PHASE KVA HP Heating Only REFRIGERATOR/FREEZER 3/4 14 16.1 120 1 1.68 COP 4.03 REFRIGERATOR 1/2 9.6 11.0 120 1 1.152 EER 8.73 HEAT PUMP 3.97 OAT Range‐4 to 95 HEAT PUMP FAN 0.07 air flow 3178 MCA 25.5 WATT/FT2FT2 MOP 30 LTG 0.5 5000 2.5 GENERAL PLUG 1 5000 5 Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 12 of 22 7/2/14 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. The existing building is heated with diesel fuel oil, with two Weil McLain -WTGO-6 boilers operating at 72% efficiency, with a net output rating of 184,000 BTU/HR each off an 1,100 gal fuel oil tank, with hydronic baseboard heating system. Domestic hot water is provided with an 80 gal. Amtrol indirect side-arm water maker heated off the oil boilers. The two existing oil boilers were installed in 2006, and are in average condition. There is no central HVAC system operating in the building, and the existing lunch room where the Senior Lunch Program is served is without adequate ventilation. They currently open windows to provide adequate ventilation. The existing apartments have exhaust-only bathroom fans and range hoods. The current lighting in corridors are the old T- 12 florescent fixtures. Apartments have CFL lights installed by the weatherization program. The existing building is served by one electric meter, serving all apartments and the common house loads. 4.2.2 Existing Energy Resources Used Briefly discuss your understanding of the existing energy resources. Include a brief discussion of any impact the project may have on existing energy infrastructure and resources. THRHA’s existing energy supply is generated 100% by fossil fuel for heat and from Inside Passage Electric Cooperative that produces electricity from diesel oil. THRHA anticipates that its solar system will have a positive impact on the existing energy system by diversifying the energy resources needed to meet the building base load demand. THRHA recognizes that this project will offset fossil fuel consumption that may have minimal effect on the local oil supply company. This project also provides opportunity for a local solar equipment supplier to provide retail PV panels as a strong and viable business opportunity that supports and improves the Southeast economy. The existing building is currently heated with fuel oil. Domestic hot water is also heated by fuel oil. There has been no company in Kake that delivers fuel oil, so THRHA’s own crew uses a THRHA flat-bed truck equipped with a 150 gallon fuel tank and 12V electric pump to deliver fuel and fill its own tanks. The THRHA crew fills their tank at the fuel tank farm, then delivers 150 gallons at a time to our tanks. All electricity is currently purchased from IPEC. THRHA purchased 72,400 KW of electricity from IPEC in 2013, as recorded from IPEC data provide by Peter Bibb to THRHA’s electrical consultant Mark Longmeier (see Historic Meter Data table on electrical drawings E6.1). The proposed solar PV array will be a parallel system with a non-grid tie inverter downstream of the utility meter panels and will not feed back into the grid. The solar PV system will not have a negative impact on IPEC as it will only be displacing a percentage of the new load, and will not be reducing the usage over the existing load. In fact, IPEC will see increased usage once the new Senior Center is completed. With the PV system, THRHA expects to minimize the impacts to its operating expenses from the increased electrical loads of the Senior Center. LPG (Propane) is available in Kake, and there is a company that delivers it to the end user. Propane is favorably priced and is preferred by many to fuel oil due to price, delivery and clean burn. The nearby Kake School has decommissioned its old oil boiler and replaced it with a propane boiler to heat the school. In the newly modernized Kake Senior Center, THRHA will use Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 13 of 22 7/2/14 LPG for backup heating, commercial range, Rinnai on-demand tankless water heater for the laundry facility, and for the clothes dryers. Upon completion of this project, the subject building will require no fuel oil use for operations with exception of remaining electric needed that is generated by IPEC. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. THRHA currently purchases heating oil for heat from Kake Tribal’s tank farm, and deliver it to our tanks ourselves. THRHA purchases electricity from Inside Passage Electrical Cooperative (IPEC) who produces electricity with diesel generators. THRHA purchased 72,400 KW of electricity from IPEC in 2013 for the Senior Center the projected electrical demand for the Kake Senior Center once all modernization is complete will be about double. The proposed PV array will offset approximately 25% of that additional usage. Even with the solar PV installation, will see an increase in electrical consumption by the Senior Center, and IPEC sales will not be negatively impacted. This proposed project will not have an negative impact on Kake energy customers. 4.3 Proposed System Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, and environmental issues. 4.3.1 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  Basic integration concept  Delivery methods The system will incorporate a ground mounted Solar PV array with battery storage for nighttime operation of selected loads. It will be a parallel system with a non-grid tie inverter, and will not feed back into the utility grid. Optimum installed capacity anticipated to be 10 KW, with an anticipated annual generation of 10,000 KWH. The location for the solar array is along the skirted pile foundation on the south-facing, non-shaded side of the existing building, which is 178 feet in length. There is available space for PV panels up to 72” high on the east end of the building, and up to 120” high at the west end. THRHA has provided space for the PV system in the current modernization project, with conduits installed from electrical panel location in the basement electrical room to the PV array location. See attached drawings in appendix. Upon award of funding, THRHA will prepare an RFP for final design and installation of the solar PV system, with award criteria based on experience in design-build of PV systems, cost,commitment to training, servicing and monitoring, and quality of design. The responses to the RFP will be Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 14 of 22 7/2/14 subject to a 3rd party expert review. If AEA agrees, the 3rd party review would include appropriate AEA staff. Award of contract will be to the responsive bidder scoring highest on the award criteria. 4.3.2 Land Ownership 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. THRHA owns and operates the building and has site control on land that is required for the solar system and battery storage. 4.3.3 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 discuss potential barriers The City of Kake does not require any permits for this project. There are no permitting documents required for this installation by either the City or the Fire Marshal. THRHA follows all State permitting requirements, if any other permits are required, THRHA will be in compliance. There are no anticipated barriers to this project. The proposed Solar PV system for this project is already covered by existing THRHA permits. 4.3.4 Environmental Address whether the following environmental and land use issues apply, and if so how they will be addressed:  Threatened or endangered species - none  Habitat issues - none  Wetlands and other protected areas – n/a  Archaeological and historical resources n/a  Land development constraints n/a  Telecommunications interference n/a  Aviation considerations n/a  Visual, aesthetics impacts none  Identify and discuss other potential barriers THRHA complies with applicable environmental standards, including without limitation applicable laws for the prevention of pollution, management of hazardous waste, and evaluation of environmental impacts on all THRHA projects including this proposed project for Kake. THRHA completed an EA, FONSI and Request for Release of Funds on the project, as required by HUD before the modernization funds could be released. There were no significant impacts. The proposed solar PV project is on land that is included in the current EA. No additional environmental review is required. Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 15 of 22 7/2/14 4.4 Proposed New System Costs and Projected Revenues (Total Estimated Costs and Projected Revenues) The level of cost information provided will vary according to the phase of funding requested and any previous work the applicant may have done on the project. Applicants must reference the source of their cost data. For example: Applicant’s records or analysis, industry standards, consultant or manufacturer’s estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following: $60,000 Total Project Cost $56,000 Requested Grant Funding $ 4,000 THRHA in-kind match (additionally $9,000 already expended for pre-feasiblity/design) $43,000 Project Capital cost $17,000 Projected Development cost 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for any new facilities constructed and how these would be funded by the applicant. (Note: Operational costs are not eligible for grant funds however grantees are required to meet ongoing reporting requirements for the purpose of recording the impacts of AEA projects on the communities they serve.) THRHA does not anticipate any added operational costs once PV is installed and operational. The PV panels are low maintenance with minor cleaning that will be accomplished with existing local THRHA staff. Battery replacement and inverters will be included in THRHA’s budget as part of the organization’s standard replacement reserve account. All maintenance and upkeep of the system will be done by qualified THRHA staff that will receive training as part of this project. THRHA will eliminate use of fossil fuel for its operations of the building and ultimately reduce overall costs to the organization. 4.4.3 Power Purchase/Sale The hot water purchase/sale information should include the following:  Identification of potential energy buyer(s)/customer(s)  Potential hot water purchase/sales price - at a minimum indicate a price range  Proposed rate of return from grant-funded project n/a 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Please fill out the form provided below and provide most recent hot watering fuel invoice that supports the amount identified in “Project Benefits” subpart b below. Renewable Energy Source: Solar The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. Minimum of 10,138 kWh need per spreadsheet attached Unit depends on project type (e.g. windspeed, hydropower output, biomass fuel) Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 16 of 22 7/2/14 Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank) i. Number of generators/boilers/other Two each Weil McLain WTGO-6 oil boilers ii. Rated capacity of generators/boilers/other 184,000 BTU/HR each    iii. Generator/boilers/other type N/A iv. Age of generators/boilers/other Installed 2006. 8 years old v. Efficiency of generators/boilers/other 72% b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor $4,775 ii. Annual O&M cost for non-labor 19,072 c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, leave this section blank) i. Electricity [kWh] n/a ii. Fuel usage Diesel [gal] n/a Other n/a iii. Peak Load n/a iv. Average Load n/a v. Minimum Load n/a vi. Efficiency n/a vii. Future trends Cost of electric will continue to increase due to fuel oil generated electric d) Annual fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] ii. Electricity [kWh] 72,400 KWH/Yr for 2013 per IPEC iii. Propane [gal or MMBtu] n/a iv. Coal [tons or MMBtu] n/a v. Wood [cords, green tons, dry tons] n/a vi. Other n/a 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] n/a for this application (625 MMBTU wood pellets for heat not electric) b) Proposed annual electricity or heat production (fill in as applicable) 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.    Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 17 of 22 7/2/14 i. Electricity [kWh] 10,000 kWh solar PV ii. Hot water [MMBtu] c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] n/a ii. Coal [tons or MMBtu] n/a iii. Wood [cords, green tons, dry tons] n/a (40 tons pellet for heat) iv. Other Project Cost a) Total capital cost of new system $43,000 b) Development cost $17,000 c) Annual O&M cost of new system No change to current operating costs d) Annual fuel cost Zero  Project Benefits a) Amount of fuel displaced for i. Electricity Anticipated annual displaced electrical cost is $ 6,184 at $ 0.61/KWH ii. Heat n/a iii. Transportation n/a b) Current price of displaced fuel $5.37 per gallon c) Other economic benefits Offset increased electric demand with solar d) Alaska public benefits See Sec 5. Energy security for rural Alaska, conservation, reduced carbon emissions, new proven technology for use by local homeowners and businesses. Power Purchase/Sales Price a) Price for power purchase/sale n/a Project Analysis a) Basic Economic Analysis Project benefit/cost ratio Increased electric demand (due to building renovation and addition) will be offset by Solar PV. Payback (years) 10 Years Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 18 of 22 7/2/14 4.4.5 Impact on Rates Briefly explain what if any effect your project will have on electrical rates in the proposed benefit area. If the is for a PCE eligible utility please discuss what the expected impact would be for both pre and post PCE. THRHA purchases electricity from Inside Passage Electrical Cooperative (IPEC) who produces electricity with diesel generators at a non-PCE rate around $0.61/kw. THRHA purchased 72,400 KW of electricity from IPEC in 2013 for the Senior Center (source Peter Bibb, IPEC). The projected electrical demand for the Kake Senior Center once all modernization is complete will be about double the current usage (see electrical load calcs by Mark Longmeier, P.E., Cayambe Engineering, attached). The PV array will offset approximately 25% of that additional usage. Even with the solar PV installation, will see an increase in electrical consumption by the Senior Center, and their sales will not be negatively impacted. SECTION 5– PROJECT BENEFIT Explain the economic and public 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:  Potential annual fuel displacement (gallons and dollars) over the lifetime of the evaluated renewable energy project. In order for the applicant to receive credit for fuel displaced the applicant must provide the most recent invoice for fuel purchased.  Anticipated annual revenue (based on i.e. a Proposed Hot water Purchase Agreement price, RCA tariff, or cost based rate)  Potential additional annual incentives (i.e. tax credits)  Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available)  Discuss the non-economic public benefits to Alaskans over the lifetime of the project The community of Kake currently has limited solar use in place. A project of this size owned and operated by THRHA will bring solar as option for households to employ a new technology to reduce their utility costs through this proven method evaluated by THRHA at the Kake Senior Center. This project will make available knowledge and awareness for local citizens to tap into for their utility needs. Displacing fossil fuel with solar for low-income housing will lower energy and operational costs. THRHA’s reduced operational costs will result in sustainable housing and increased housing for low-income rural residents. The public directly benefits by empowering rural residents with the ability to reside in their community of origin through lowered cost of living while maintaining their traditional indigenous way-of-life that provides a rich diversity and value to the State of Alaska. There isn’t a way to place a monetary value on this benefit, however, it is clearly a substantial savings to have elderly residents reside in their own community, living by and receiving assistance from their family versus relocating to costly Government assisted living facilities in urban areas. THRHA local labor force will benefit by increased capacity and training on solar applications that can ultimately benefit the greater community. THRHA utilizes local work force through Force Account. Data collection will benefit the entire community. Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 19 of 22 7/2/14 5.1 Public Benefit for Projects with Private Sector Sales 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. Renewable energy resource availability (kWh per month) 845 ave per month Estimated sales (kWh) n/a Revenue for displacing diesel generation for use at private sector businesses ($) Offset of anticipated increased electric demand Estimated sales (kWh) n/a Revenue for displacing diesel generation for use by the Alaskan public ($) n/a SECTION 6– SUSTAINABILITY Discuss the operation of the completed project so that it will be sustainable. Include at a minimum:  Proposed business structure(s) and concepts that may be considered.  How the maintenance and operations of the completed project will be financed for the life of the project  Identification of operational issues that could arise.  A description of operational costs including on-going support for any back-up or existing systems that may be require to continue operation  Commitment to reporting the savings and benefits THRHA anticipates there will be no increase in cost of annual maintenance with the installation of the solar PV system. Staff already maintain systems and clean the building. Currently, staff delivers the fuel oil, this task will be eliminated with the new building. Periodic washing and cleaning of panels will take minimal amount of labor time as the panels are ground mounted and easily reached on foot. Periodic servicing of battery storage will be minimal. Replacement cost for batteries, inverters, and PV panels will be handled under the standard building systems replacement reserve account. The avoided electrical cost saving realized will help make the operations of the facility sustainable. THRHA is committed to submitting reports as required by AEA from the monitoring equipment that will be installed and data/reports made available to AEA. Contractors will assist on installation of monitoring equipment and the contractor will provide a matrix for data collection and reporting by THRHA that is acceptable to AEA. SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS Discuss what you have done to prepare for this award and how quickly you intend to proceed with work once your grant is approved. Tell us what you may have already accomplished on the project to date and identify other grants that may have been previously awarded for this project and the degree you have been able to meet the requirements of previous grants. Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 20 of 22 7/2/14 THRHA is investing $675,000 in energy efficiency measures to the building that will include weatherization to ensure the most important aspect of energy conservation is met. AkWarm audits and building shell analysis have been completed by auditor, Marquam George. THRHA is ready to proceed rapidly on the proposed project upon award of funding by working closely with AEA and quickly establishing partners and contractors through an RFP process or working directly with AEA staff. THRHA has local staff available to begin immediately. THRHA is in the process of modernizing and expanding the entire Kake Senior Center. This includes design and installation preparations for the future integration of PV panels. This work is in the current electrical contract. The new installation will be handled as an RFP rather than a Change Order to the existing contract, as it can be designed and installed by a separate qualified contractor after completion of the current modernization contract. The current project is ready for the PV installation, and there will be no negative impacts to existing work. The current project is funded with IHBG, AHFC Supplemental, ICDBG, USDA, IRR and other funds. There are no compliance issues with any of the grants. The solar PV grant will fit nicely with all of the existing funding sources, as solar PV was anticipated in the early design phase. The building is receiving numerous energy efficiency improvements, including increased insulation and other enhancements to the building shell and building systems, to lower the overall energy costs. SECTION 8 – LOCAL SUPPORT AND OPPOSITION Discuss local support and opposition, known or anticipated, for the project. Include letters of support 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 2, 2014. In 2011, Kake was selected by the DOE Office of Indian Energy Policy and Programs (DOE-IE) as a Strategic Technical Assistance Response Team (START) community. The project is an initiative aimed at advancing next-generation energy development in Indian Country. There has been considerable progress in this effort and this proposed project ties with the initiatives of START. THRHA Vice President, Craig Moore, has served on the Kake Community Energy Committee for the past few years that has included multiple public meetings on alternative energy including solar as proposed for this project. THRHA has received 100% support for this AEA proposed solar project, letters of support are attached. SECTION 9 – GRANT BUDGET Tell us how much you are seeking in grant funds. Include any investments to date and funding sources, how much is being requested in grant funds, and additional investments you will make as an applicant. 9.1 Funding sources and Financial Commitment Provide a narrative summary regarding funding source and your financial commitment to the project THRHA will utilize Indian Housing Block Grant (IHBG) formula funds for match or personnel dedicated to this project, see funding sources outlined in Sect. 7 above. IHBG formula funds for operations and maintenance of the building are used to sustain operations as well as rental income. Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 21 of 22 7/2/14 9.2 Cost Estimate for Metering Equipment Please provide a short narrative, and cost estimate, identifying the metering equipment, and its related use to comply with the operations reporting requirement identified in Section 3.15 of the Request for Applications. Final determination will be made after consulting with AEA and contractors on the type of monitoring equipment that will best meet the requirements of AEA. We will install a watt meter on the system with data loggers. Estimated cost to install: $2,000. 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 and Commissioning). Please use the tables provided below to detail your proposed project’s budget. Be sure to use one table for each phase of your project. 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. Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other TOTALS 1. RFP Prepared 2 months $1,000 $1,000 IHBG $2,000 2. RFP Design and installation 1 month $7,000 $1,000 IHBG $8,000 3. Contract 2 weeks $1,000 IHBG $1,000 4. Construction 4 months $43,000 $0 $43,000 5. Final testing, commissioning 3 weeks $3,000 $0 $3,000 6. Monitoring and Reporting 10 years $2,000 $1,000 IHBG $3,000 TOTALS $56,000 $4,000 $60,000 Budget Categories: Direct Labor & Benefits $ $3,000 IHBG $3,000 Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $2,000 $ $2,000 Contractual Services $50,000 $ $50,000 Construction Services $4,000 $1,000 IHBG $5,000 Other $ $ $ TOTALS $56,000 $4,000 $60,000 Renewable Energy Fund Round VIII Grant Application – Standard Form AEA 15003 Page 22 of 22 7/2/14  Building name Kake Low Rent Senior multi-family housing  Type or primary usage of the building Residential  Location Kake  Hours of operation 24 hours per day, 7 days per week  Single structure or multiple units Single structure  Total square footage 16,300 SF  Electrical consumption per year estimate 135,000 KWH/year following completion of modernization work  Heat oil/fuel consumption per year No fuel oil will be used in newly modernized senior center  Average number of occupants 1 building (18-25 occupants)  Has an energy audit been performed? When? Please provide a copy of the energy audit, if applicable. Yes. Attached is the Aris confirmation for the Kake Senior Center. The units are listed as 1- 12 with a preceding 025 project code for the building. Please search under Tlingit Haida Regional Housing Authority WAP – THRWAP, and search for THR025 for all files to populate the search window.  Have building thermal energy efficiency upgrades been completed? o If applicable, please provide evidence of efficiency improvements including cost and anticipated savings associated with upgrades. Yes. Energy efficient measures completed include R-values that exceed BEES (outside rigid foam board insulation on walls for a total wall R-value of about R-30, R-60 insulation in attic), energy efficient HRV systems for ventilation, Low-E Argon windows with 0.28 U- values, a biomass (wood- pellet) heating system from Maine Energy Systems (a state-of- the art Austrian design by OkoFen with minimum 80% efficiency) , energy efficient lighting, and Energy Star appliances, all to improve the energy efficiency and minimize the energy consumption of the building. o Estimated annual heat fuel savings n/a for this project… Currently $19,000 in fuel oil is used.