HomeMy WebLinkAboutScammon Bay AEA 15003 Heat Recovery REF Grant Application
Heat
Recovery
Alaska Energy Authority – AEA 15003
Renewable Energy Grant Application
H
CITY OF SCAMMON BAY
City of Scammon Bay
ALASKA ENERGY AUTHORITY – AEA 15003 RENEWABLE ENERGY
GRANT APPLICATION
APPLICATION CONTENTS
AEA HEAT PROJECT APPLICATION – SECTION 1 THROUGH 9
AUTHORIZED SIGNERS – SECTION 10
ADDITIONAL DOCUMENTATION AND CERTIFICATION – SECTION 11
RESUMES
LETTERS OF SUPPORT
FUEL INVOICES
GOVERNING BODY RESOLUTION
FEASIBILITY STUDY
Renewable Energy Fund Round VIII
Grant Application – Heat Projects
AEA 15003 Page 1 of 23 7/2/14
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: www.akenergyauthority.org/REFund8.html.
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 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.
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.
In the sections below, please enter responses in the spaces provided, often under the
section heading. 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.
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.
Renewable Energy Fund Round VIII
Grant Application – Heat Projects
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SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
City of Scammon Bay
Type of Entity: City Fiscal Year End: June 30, every year
Tax ID # 92-0086142
Tax Status: ☐ For-profit ☐ Non-profit ☒ Government (check one)
Date of last financial statement audit: June 2014
Mailing Address: Physical Address:
PO Box 90 City Office
Scammon Bay, Alaska 99662 Scammon Bay, Alaska 99662
Telephone: Fax: Email:
(907) 558-5529 (907) 558-5626 cityofscammon@marayarmiut.com
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name: Eric Hanssen, P.E. Title: Sr. Engineering Project Manager
Mailing Address:
Alaska Native Tribal Health Consortium
Division of Environmental Health & Engineering
Rural Energy Program
3900 Ambassador Drive, Suite 301
Anchorage, Alaska 99507
Telephone: Fax: Email:
(907) 729-3620 (907) 729-4090 echanssen@anthc.org
1.1.1 APPLICANT ALTERNATE POINTS OF CONTACT
Name Telephone: Fax: Email:
Suzanne Wolf – Energy Program (907) 729-4065 (907) 729-3571 swolf@anthc.org
Heather Dongoski – Grant Specialist (907) 729-3049 (907) 729-3049 hdongoski@anthc.org
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Grant Application – Heat Projects
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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/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)
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Grant Application – Heat Projects
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SECTION 2 – PROJECT SUMMARY
This section is intended to be no more than a 2-3 page overview of your project.
2.1 Project Title – (Provide a 4 to 7 word title for your project). Type in space below.
Scammon Bay Community Facilities 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, 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.
61.843879,-165.581303
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
Scammon Bay, 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
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Grant Application – Heat Projects
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2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of the proposed heat project.
The proposed project will take waste heat from the existing Alaska Village Electric Cooperative
(AVEC) power plant and use it to heat the City of Scammon Bay’s water system, city office, old
clinic, and community building via a heating connection into the circulating distribution water loop.
The estimated fuel savings from this heat recovery system is projected to save the city 11,578
gallons of heating oil per year. For more detailed information refer to the attached Scammon Bay,
Alaska 2014 Heat Recovery Study.
2.5 PROJECT BENEFIT
Briefly discuss the financial and public benefits that will result from this heat project, (such as
reduced fuel costs, lower energy costs, local jobs created, etc.)
Based on the attached Scammon Bay, Alaska 2014 Heat Recovery Study and current local fuel
cost of $7.12 (see attached invoice) this project will lower energy use by 11,578 gallons or $82,435
annually. By reducing this cost, the dollars normally spent on heating oil can stay in the local
economy.
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.
The requested grant funding in this application is $756,335.
Design requested AEA funding $85,100. Construction requested AEA funding $671,235.
The total anticipated project cost is $763,898 including Alaska Native Tribal Health Consortium’s
in-kind contribution for project and program management services.
In section 2.7.10 – Additional performance monitoring equipment expenses of $15,000 will be
covered under an Environmental Protection Agency project that ANTHC was awarded to install
remote monitoring systems in select rural communities.
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 $ 756,335
2.7.2 Cash match to be provided $
2.7.3 In-kind match to be provided $ 7,563
2.7.4 Other grant funds to be provided $
2.7.5 Total Costs for Requested Phase of Project (sum of 2.7.1 through 2.7.4) $ 763,898
Other items for consideration
2.7.6 Other grant applications not yet approved $
2.7.7 Biomass or Biofuel Inventory on hand $
2.7.8 Energy efficiency improvements to buildings
to be heated (upgraded within the past 5 years or
committed prior to proposed project completion) $
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Project Costs & Benefits (Summary of total project costs including work to date and future cost
estimates to get to a fully operational project)
2.7.9 Total Project Cost
Summary from Cost Worksheet, Section 4.4.4, including
estimates through construction.
$ 763,898
2.7.10 Additional Performance Monitoring Equipment not
covered by the project but required for the Grant
Only applicable to construction phase projects
$ 15,000
2.7.11 Estimated Direct Financial Benefit (Savings)
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.
$ 82,435 / year
2.7.12 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.
$
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
Tell us who will be managing the project for the Grantee and include contact information, a resume
and references for the manager(s). 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 anticipates project management assistance from AEA or another
government entity, state that in this section.
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: Senior Engineering
Project Manager Eric Hanssen, P.E., LEED AP has been with ANTHC since 2007 As part of
ANTHC’s Rural Energy Initiative, 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.
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3.2 Project Schedule and Milestones
Please fill out the schedule below. 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.
Please fill out form provided below. You may 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
Conduct Kickoff Meeting 11/1/2015 11/1/2015
65% design w/cost estimate 11/1/2015 4/1/2016
Heat Sales Agreement 1/1/2016 4/1/2016
Final Design documents 6/1/2016 6/1/2016
Pre-construction meeting 7/1/2016 7/1/2016
Construction 7/1/2016 9/1/2016
Commissioning 10/1/2016 11/1/2016
Final Inspection and follow-up 11/1/2016 12/1/2016
Project closeout 12/1/2016 12/1/2017
Project management throughout (ANTHC in-kind) 11/1/2016 12/1/2017
1.) Project Planning
2.) Construction
3.) Project Closeout
4.) Project Management and Match Activities
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.
ANTHC DEHE provides design and construction services for rural Alaskan communities
infrastructure projects and is able to employ either typical contract or force account construction
services to complete the project. DEHE has successfully partnered and worked with the City on
sanitation and health facilities design and construction projects. The ANTHC will administer and be
responsible for executing the proposed installation project. ANTHC will enter into a cooperative
project agreement (CPA) with the City, to implement the project, if it is awarded.
The project manager will be supported in the design of the project by Chong Park, ANTHC Lead
Mechanical Engineer, and Reed, ANTHC Lead Electrical Engineer. To the extent possible, local
labor will be used during construction. ANTHC will use its purchasing and contracting resources for
material procurement and delivery. Resumes of potential alternate resources and key personnel
are attached to this application.
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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.
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.
3.5 Project Risk
Discuss potential problems 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 the 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.
3.6 Project Accountant(s)
Tell us who will be performing the accounting of this Project for the Grantee and include contact
information, a resume and references for the project accountant(s). 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 project accounting support.
The City of Scammon Bay will use the accounting resources of ANTHC. ANTHC’s Division of
Environmental Health accounting department is led by the Construction Controller, Diane Chris.
The Construction Finance Department is comprised of 10 staff that handle all DEHE’s accounting
functions. A Senior Accountant has been designated to support any ANTHC Grant awards
including AEA financial reporting. Key Staff resumes are included in this application.
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.
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.
3.8 Financial Management Controls
Discuss 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 City of Scammon Bay 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.
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Grant Application – Heat Projects
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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.
This project proposes to use water jacket heat generated by the power plant to significantly
displace 11,578 gallons of fuel oil required to heat the water system and city buildings in Scammon
Bay, 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.
4.1.1 For Biomass Project only
Identify any wood inventory questions, such as:
Ownership/Accessibility. Who owns the land and are their limitations and restrictions to
accessing the biomass resource?
Inventory data. How much biomass is available on an annual basis and what types (species)
are there, if known? Please attach any forest inventory reports
N/A
4.2 Existing Energy System
4.2.1 Basic configuration of Existing Heating Energy System
Briefly discuss the basic configuration of the existing energy system. Include information about the
number, size, age, efficiency, and type of generation.
A heat recovery utilization spreadsheet has been developed to estimate the recoverable heat
based on monthly total electric power production, engine heat rates, building heating demand,
washeteria loads, heating degree days, passive losses for power plant heat and piping, and arctic
piping losses. The spreadsheet utilizes assumed time of day variations for electrical power
production and heat demand. Heat is transferred from the engine coolant to the recovered heat
loop without mixing the fluids. Controls at the power plant are used to prevent sub-cooling of the
generator engines and reducing electric power production efficiency. The recovered heat fluid is
pumped through buried insulated pipe to the adjacent water distribution loop.
.
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4.2.2 Existing Heating 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.
The water plant uses #1 heating oil for all of its heating energy needs. This fuel is kept in a large
tank farm and distributed throughout the year. Implementing a heat recovery system will reduce or
eliminate the need for heating oil.
The 2014 Scammon Bay, Alaska Heat Recovery Study reports total combined annual use of
11,578 gallons of heating oil for the water treatment plant, City office, old clinic building, and new
community hall. The existing fuel supply will be used on an as-necessary basis during
emergencies, system maintenance, or demand peaks.
4.2.3 Existing Heating Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
Heating oil must be barged in during summer months. The expected impact of this project will be to
reduce the overall oil use by approximately 11,578 gallons annually, showing the potential for the
four community facilities to be heated solely by recovered heat.
While this reduction will not change the price of fuel oil in Scammon Bay, it will significantly reduce
the community’s consumption of oil, replacing that consumption with jacket heat from the diesel
generator.
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 heat recovery system captures jacket water heat from the generators at the AVEC power plant
that is typically rejected to the atmosphere through radiators. The recovered heat is transferred
through below-grade arctic piping to the end users. The objective is to reduce the consumption of
heating fuel by utilizing available recovered heat.
Although heat recovery is an excellent method of reducing heating fuel costs, recovered heat is a
supplementary heat source and it is imperative that the water treatment plant heating systems are
operational at all times.
Hot engine coolant is piped through a plate heat exchanger located at the power plant. Heat is
transferred from the engine coolant to the recovered heat loop without the mixing fluids. Controls
at the power plant are used to prevent sub-cooling of the generator engines and reductions in
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electric power production efficiency. The recovered heat fluid is pumped through buried insulated
pipe to the adjacent water loop.
POWER PLANT TIE-IN
Modifications to the AVEC power plant include installation of heat exchangers, control valves and
associated piping and plumbing.
All heat recovery 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.
PRE-INSULATED FLEXIBLE PEX PIPING
The proposed pre-insulated flexible pex piping is based on ANTHC’s standard pipe design for heat
recovery project with a 2-in pex carrier pipe (NSF 61 certified) with the minimum 3” polyurethane
insulation. The piping will be buried and run from the power plant to the adjacent water distribution
loop (WDL). The estimated length of the pipe is approximately 600 ft. The piping running from the
power plant to three buildings will be partially buried and partially above-grounded. The estimated
length of this pipe is approximately 400 ft.
Circulation pumps located at the AVEC building will circulate heated domestic water from the
AVEC facility to WDL.
RAW WATER and WATER STORAGE HEAT ADD TIE-IN AT WTP
Water storage heat add tie-in at the WTP building consist of brazed plate heat exchanger (for
potable water application) with two pumps. One is a heat injection pump for WST water to be
heated by the recovered heat and the other is a WST water circulation pump through the heat
exchanger. When there is insufficient recovered heat to meet the WST heating load, the building
heating system (boiler or heater) will fire and add heat to WST. The heat exchanger control will be
locked out the recovered heat system when there is insufficient recovered heat available.
Typical indoor piping will be type L copper tube with solder joints. Isolation valves will be solder
end bronze ball valves or flanged butterfly valves. All piping will be insulated with a minimum of 1-
in insulation with an all-service jacket. Flexibility will be provided where required for thermal
expansion and differential movement. Air vents, thermometers, pressure gauges, drain valves, and
pressure relief valves will also be provided.
THREE END USER BUILDINGS
Each end user building’s heat add system consists of brazed plate heat exchanger with a pump for
the end user building to be heated by the recovered heat. When there is insufficient recovered heat
to meet each end user’s the heating load, each building heating system (boiler or heater) will fire
and add heat to its own. The heat exchanger control will be locked
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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.
There are no apparent conflicts with rights-of-ways for the arctic piping between the power plant
and the end user buildings, as the route is entirely within existing road rights-of-ways and on City
and AVEC property.
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
No permits are anticipated for this heat recovery project. If during the course of the project, permits
are needed, ANTHC will ensure that all permits are obtained and followed.
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
Habitat issues
Wetlands and other protected areas
Archaeological and historical resources
Land development constraints
Telecommunications interference
Aviation considerations
Visual, aesthetics impacts
Identify and discuss 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.
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:
Total anticipated project cost, and cost for this phase
Requested grant funding
Applicant matching funds – loans, capital contributions, in-kind
Identification of other funding sources
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Projected capital cost of proposed renewable energy system
Projected development cost of proposed renewable energy system
The requested grant funding in this application is $756,335.
Design requested AEA funding $85,100. Construction requested AEA funding $671,235.
The total anticipated project cost is $763,898 including Alaska Native Tribal Health Consortium’s
in-kind contribution for project and program management services.
ANTHC completed the attached Feasibility Study in preparation of the grant application.
In section 2.7.10 – Additional performance monitoring equipment expenses of $15,000 will be
covered under an Environmental Protection Agency project that ANTHC was awarded to install
remote monitoring systems in select rural communities.
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.)
As with all heat recovery systems, the operating cost will be minimal. The controls are automated
both at the power plant and at the water treatment plant. The most expensive components of the
heat recovery system are the heat exchangers and they normally have a minimum 30-year life.
Minor maintenance costs will occur periodically, but will be limited to valves, circulation pumps, and
possibly replacement glycol. Approximately $500 per year should be budgeted for maintenance.
4.4.3 Heating Purchase/Sale
The heat purchase/sale information should include the following:
Identification of potential energy buyer(s)/customer(s)
Potential heat purchase/sales price - at a minimum indicate a price range
Proposed rate of return from grant-funded project
A standard heat sales agreement will be executed between AVEC and the City of Scammon Bay.
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 fuel displaced. This amount is much lower
than the retail price of fuel in the village. A standard BTU meter will be used to measure the
amount of recovered heat used by the water system.
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Grant Application – Heat Projects
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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 heating fuel invoice that supports
the amount identified in “Project Benefits” subpart b below.
Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability.
Unit depends on project type (e.g. windspeed, hydropower output, biomass fuel)
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 Detroit Diesel S60 and Cummins QSX G9
ii. Rated capacity of generators/boilers/other
iii. Generator/boilers/other type Fuel Oil Boilers
iv. Age of generators/boilers/other 5+ years
v. Efficiency of generators/boilers/other 75%
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor $300
ii. Annual O&M cost for non-labor $200
c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the
Railbelt grid, leave this section blank)
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] 11,578 gallons of Number 1 fuel oil equivalent of surplus
heat.
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
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 – Heat Projects
AEA 15003 Page 15 of 23 7/2/14
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
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]
Surplus heat from the power
plant.
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh]
ii. Heat [MMBtu] Equivalent heat of 11,578 gallons of #1 fuel oil.
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
Project Cost
a) Total capital cost of new system $ 756,335 includes development cost
b) Development cost
c) Annual O&M cost of new system $500
d) Annual fuel cost
Project Benefits
a) Amount of fuel displaced for
i. Electricity
ii. Heat Equivalent of 11,578 gallons of #1 fuel oil
iii. Transportation
b) Current price of displaced fuel $82,435 / year (at $7.12/gal, fuel invoice attached)
c) Other economic benefits
d) Alaska public benefits
Heat Purchase/Sales Price
a) Price for heat purchase/sale 30% of displaced fuel @ AVEC cost.
Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio
Payback (years) 9.17
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Grant Application – Heat Projects
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4.4.5 Impact on Rates
Please address the following items related to the proposed location of the heating project. If more
than one building will be impacted, please address this information for each building.
Building name
Water System, City Office, Old Clinic, Community Building
Type or primary usage of the building
Drinking Water Production/ City Operations
Location
Scammon Bay, Alaska
Hours of operation
8
Single structure or multiple units
Multiple buildings
Total square footage
Electrical consumption per year
Heating oil/fuel consumption per year
11,578 gallons
Average number of occupants
Has an energy audit been performed? When? Please provide a copy of the energy audit, if
applicable.
No
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.
o Estimated annual heating fuel savings
If the building is not yet constructed please provide evidence of the value of planned
building envelope efficiency investments beyond typical construction practices. Include
anticipated savings associated with efficiency investments if available.
N/A
Renewable Energy Fund Round VIII
Grant Application – Heat Projects
AEA 15003 Page 17 of 23 7/2/14
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 heating fuel
displaced the applicant must provide the most recent invoice for heating fuel purchased.
Anticipated annual revenue (based on i.e. a Proposed Heat 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 potential fuel displacement is 11,578 gallons or the entirety of fuel oil currently used by the
water system and city buildings. The current local cost of the fuel is $7.12 per gallon (see attached
fuel invoice). The annual cost of fuel displaced for the water treatment plant and city buildings
therefore equals $82,435.
There are no other known incentives or revenue streams that will result from this project. The
benefits to the community of this project include a reduction in the amount of fuel required by the
community, much more efficient use of the recovered engine heat, and a direct benefit to each
community member due to the lower cost to produce, store, and deliver water.
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
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 Scammon Bay is committed to meeting all
reporting requirements over the entire length of the reporting period.
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Grant Application – Heat Projects
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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.
ANTHC has completed a detailed heat recovery study and it is attached to this application. The
intent is to proceed with this project as soon as practical once design and construction funding is
available.
There are not any other grants that have been awarded to this project.
ANTHC has maintained a robust operating budget for all four divisions and operates dozens of
programs and projects. ANTHC receives funding from numerous well-recognized sources; this
demonstrates their 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.
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.
The City of Scammon Bay is submitting the grant application. ANTHC has provided a match for the
project as well as a letter of support. Alaska Rural Utility Collaborative (ARUC) and Alaska Village
Electric Cooperative have provided letters of support on this project.
There is no known opposition to this project.
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Grant Application – Heat Projects
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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
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.
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.
Metering and monitoring equipment for this water plant are estimated to be $15,000. A KEP BTU
meter will be installed equipped with a Monnit pulse counter. This data is to be fed through a
cellular internet connection to the central Monnit server and the ANTHC web site. This is assuming
ANTHC’s current remote monitoring practice and is in addition to the project.
Renewable Energy Fund Round VIII
Grant Application – Heat Projects
AEA 15003 Page 20 of 23 7/2/14
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.
DESIGN PHASE
Milestone or Task
Anticipated
Completion
Date
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 Throughout $851
In-kind 1%
ANTHC
project/program
management
$851
Conduct Kickoff Meeting 11/1/2015 $4,000 $4,000
65% design w/cost estimate 4/1/2016 $67,100 $67,100
Heat Sales Agreement 4/1/2016 $10,000 $10,000
Final Design documents 6/1/2016 $4,000 $4,000
TOTALS $85,100 $851 $85,951
Budget Categories:
Direct Labor & Benefits $0
Travel & Per Diem $0
Equipment
Materials & Supplies
Contractual Services * $85,100 $851 $85,951
Construction Services
Other
TOTALS $85,100 $851 $85,951
Renewable Energy Fund Round VIII
Grant Application – Heat Projects
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CONSTRUCTION PHASE
Milestone or Task
Anticipated
Completion
Date
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 Throughout $6,712
In-kind ANTHC
project/program
management
$6,712
Pre-construction meeting 7/1/2016 $500 $500
Construction 9/1/2016 $478,735 $478,735
AVEC Plant Modifications 11/1/2016 $150,000 $150,000
Commissioning 11/1/2016 $20,000 $20,000
Final Inspection and follow-up 12/1/2016 $20,000 $20,000
Project Closeout 12/2/2017 $2,000 $2,000
$671,235 $6,712 $677,947
Budget Categories:
Direct Labor & Benefits
Travel & Per Diem $0
Equipment
Materials & Supplies $0
Contractual Services * $671,235 $6,712 $677,947
Construction Services
Other
TOTALS $671,235 $6,712 $677,947
City of Scammon Bay
LETTERS OF SUPPORT
City of Scammon Bay
FUEL INVOICES
City of Scammon Bay
GOVERNERING BODY
RESOLUTION