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Home My WebLink AboutCity of Wales AEA 15003 REF Grant Application Heat Recovery Alaska Energy Authority – AEA 15003 Renewable Energy Grant Application H CITY OF WALES City of Wales ALASKA ENERGY AUTHORITY – AEA 15003 RENEWABLE ENERGY GRANT APPLICATION APPLICATION CONTENTS  AEA 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 21 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 AEA 15003 Page 2 of 21 7/2/14 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) City of Wales Type of Entity: Local Government Fiscal Year End: June 30 Tax ID # 92-0055294 Tax Status: ☐ For-profit ☐ Non-profit ☒ Government (check one) Date of last financial statement audit: Unknown Mailing Address: Physical Address: PO Box 489 City of Wales Wales, Alaska 99783 Wales, Alaska 99783 Telephone: Fax: Email: (907) 664-3501 (907) 664-2359 cityofwales@yahoo.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 Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 3 of 21 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 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) Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 4 of 21 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. Wales Water System Heat Recovery 2.2 Project Location – Include the physical location of your project and name(s) of the community or communities that will benefit from your project in the subsections below. 2.2.1 Location of Project – Latitude and longitude, 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. 65.610613,-168.087044 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. Wales, 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 Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 5 of 21 7/2/14 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 Wales power plant and use it to heat the City of Wales’ water system via a heating connection to the water treatment plant. The estimated fuel savings from this heat recovery system is projected to save the washeteria/water treatment plant 9,619 gallons of heating oil per year. For more detailed information refer to the attached Wales, 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 2014 Wales, Alaska Heat Recovery Study, this project will save 9,619 gallons or $44,053 annually. By reducing this cost, the money 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 AEA grant funding is $ 753,820. Design AEA requested funding $56,280. Construction AEA requested funding $697,540 The total anticipated project cost is $ 761,358, including ANTHC’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 $ 753,820 2.7.2 Cash match to be provided $ 2.7.3 In-kind match to be provided $ 7,538 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) $ 761,358 Other items for consideration 2.7.6 Other grant applications not yet approved $ 2.7.7 Biomass or Biofuel Inventory on hand $ Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 6 of 21 7/2/14 2.7.8 Energy efficiency improvements to buildings to be heated (upgraded within the past 5 years or committed prior to proposed project completion) $ 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. $ 753,820 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. $ 44,053 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 Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 7 of 21 7/2/14 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. 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. 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. The City of Wales will partner with ANTHC and the Village Safe Water program, to manage and carry out the proposed project. The project manager will be supported in the design of the project by Chong Park, ANTHC Lead Mechanical Engineer, and Dave 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. The project will be closely coordinated with the Village Safe Water who is constructing a new water treatment plant in Wales. Resumes of potential alternate resources and key personnel are attached to this application. 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 Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 8 of 21 7/2/14 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 Wales will use the accounting resources of ANTHC. ANTHC’s Division of Environmental Health accounting department is led by the Construction Controller, Diane Chris. The Construction Finance Department is comprised of 10 staff that handle all DEHE’s accounting functions. A Senior Accountant has been designated to support any ANTHC Grant awards including AEA financial reporting. Key Staff resumes are included in this application. ANTHC has a 16-year history of clean audits, conducted by an independent accounting firm in accordance with the Single Audit Act. 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. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 9 of 21 7/2/14 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 Wales 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. 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 AVEC power plant to significantly displace 9,619 gallons of fuel oil required to heat the water system in Wales, Alaska. The project proposes AVEC plant modifications including installation of the marine jacket on the generators to improve heat recovery. 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 Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 10 of 21 7/2/14 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. Power generation data from AVEC for fiscal year 2013 is used in the spreadsheet. The estimated heat rejection rate for the lead power plant genset, a Detroit Diesel Series 60 with a marine jacket is used to estimate available recovered heat. Heating degree-days for Wales were utilized for this site. 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 the need for heating oil which will allow for additional storage in the village for other uses. 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 9,619 gallons annually. While this reduction will not change the price of fuel oil in Wales, 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 generated by the generators at the AVEC power plant that is typically rejected to the atmosphere through radiators. The recovered heat is transferred through 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/washeteria heating systems are operational at all times. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 11 of 21 7/2/14 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 electric power production efficiency. The recovered heat fluid is pumped through buried insulated pipe to the adjacent water loop. POWER PLANT TIE-IN The AVEC plant cooling system will be separated from the recovered heat system with an injection pump, heat exchanger and controls designed to maintain minimum generator operating temperature and provide physical isolation of the two systems. The methodology will follow the standard approach favored by AVEC. All heat recovery piping at the AVEC facility will be insulated with a minimum of 2-in insulation and 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. In addition, a marine manifold will be retrofitted to the DD series 60 genset. 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 building, 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 obtain the appropriate 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  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. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 12 of 21 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:  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  Projected capital cost of proposed renewable energy system  Projected development cost of proposed renewable energy system The requested AEA grant funding is $ 753,820. Design AEA requested funding $56,280. Construction AEA requested funding $697,540 The total anticipated project cost is $ 761,358, including ANTHC’s in-kind contribution for project and program management services ATNHC prepared the Feasibly Study for this AEA 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 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 they will be limed to valves, circulation pumps, and possibly replacement glycol. Approximately $500 per year should be budgeted for maintenance. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 13 of 21 7/2/14 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 Wales. 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. 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 ii. Rated capacity of generators/boilers/other iii. Generator/boilers/other type iv. Age of generators/boilers/other v. Efficiency of generators/boilers/other b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor ii. Annual O&M cost for non-labor 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 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 14 of 21 7/2/14 v. Minimum Load vi. Efficiency vii. Future trends d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] 12,475 gallons of Number 1 fuel oil equivalent ii. Electricity [kWh] iii. Propane [gal or MMBtu] 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 MBtu/hr] Surplus heat from the power plant. b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] ii. Heat [MMBtu] 9,619 gallons of Number 1 fuel equivalent of surplus heat. 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 $ 753,820 including 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 9,619 Gallons of number 1 heating oil iii. Transportation b) Current price of displaced fuel $ 44,053 annually c) Other economic benefits Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 15 of 21 7/2/14 d) Alaska public benefits Heat Purchase/Sales Price a) Price for heat purchase/sale Estimated at 30% of displaced fuel cost Project Analysis a) Basic Economic Analysis Project benefit/cost ratio Payback (years) 17.11 Years 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 Treatment Plant  Type or primary usage of the building Potable water Treatment  Location Wales, AK  Hours of operation 24/7  Single structure or multiple units Single  Total square footage NA – Process Heat  Electrical consumption per year N/A  Heating oil/fuel consumption per year 12,475 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 9619  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 16 of 21 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 9,619 gallons of the 12,475 gallons of fuel to be used by the water system. The cost of the fuel is $ 4.53 per gallon (2014 feasibility study). The annual cost of fuel displaced for the water treatment plant therefore equals $ 44,053. There are no other known incentives or revenue streams that will result from this project. The benefits to the community of this project include a reduction in the amount of fuel required by the community, more efficient use of the recovered engine heat, and a direct benefit to each community member due to the lower cost to produce, store, and deliver water. 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 Wales is committed to meeting all reporting requirements over the entire length of the reporting period. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 17 of 21 7/2/14 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. A detailed heat recovery study has been completed and is attached to this application. The intent is to proceed with this project as soon as practical once design and construction funding is available. 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 Wales is submitting the grant application. ANTHC has provided a match for the project as well as a letter of support. Norton Sound Health Corporation and the Alaska Village Electric Cooperative, Inc. (AVEC) have also written letters of support to this project. There is no known opposition to this project. 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 18 of 21 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 $500 $563 In-kind 1% ANTHC project/program management $1,063 Conduct Kickoff Meeting 11/1/2015 $5,000 $5,000 65% design w/cost estimate 4/1/2016 $30,000 $30,000 Heat Sales Agreement 4/1/2016 $5,780 $5,780 Final Design documents 6/1/2016 $15,000 $15,000 TOTALS $56,280 $563 $56,843 Budget Categories: Direct Labor & Benefits $0 Travel & Per Diem $0 Equipment Materials & Supplies Contractual Services * $56,280 $563 $56,843 Construction Services Other TOTALS $56,280 $563 $56,843 Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 19 of 21 7/2/14 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 $6,975 In-kind ANTHC project/program management $6,975 Pre-construction meeting 7/1/2016 $0 $0 Construction 9/1/2016 $675,000 $675,000 Commissioning 11/1/2016 $10,000 $10,000 Final Inspection and follow-up 12/1/2016 $10,540 $10,540 Project Closeout 12/2/2017 $2,000 $2,000 $697,540 $6,975 $704,515 Budget Categories: Direct Labor & Benefits Travel & Per Diem $0 Equipment Materials & Supplies $0 Contractual Services * $697,540 $6,975 $704,515 Construction Services Other City of Wales LETTERS OF SUPPORT City of Wales FUEL INVOICES City of Wales GOVERNERING BODY RESOLUTION ESTIMATE Alaska Village Electric Cooperative 4831 Eagle Street Date:27-Feb-14 Anchorage, Alaska 99503 Estimate #:2014621 Phone: (907) 561-1818 Customer ID Fax: (907) 562-0324 AVEC W/O:6220048 BILL TO: Wales Water and Sewer Project Prashant KC Village Safe Water 555 Cordova Street Anchorage AK 99501 Prashant.kc@alaska.gov 907-269-7235 Description Quantity Unit Cost Extended Design and Coordination: Engineering and Project Management 20 md 1000 $20,000.00 Drafting, Procurement, Shipping, Clerical 20 md 750 $15,000.00 Construction of Cooling System Modifications Field Labor (10 hr day) 42 md 1100 $46,200.00 Materials $29,000.00 Freight 2600 lb 1.75 $4,550.00 Install Marine Manifold Pos 2 DDS60 1 LS 50,000 $50,000.00 ESTIMATED TOTAL COST $164,750.00 If you have any questions regarding this invoice please contact:Bill Stamm (907) 565-5317 bstamm@avec.org Scope of work includes: Installation of marine manifold on Pos #2 including modifications to cooling, exhaust and intake air connections. Modifying existing 3" cooling system for pump nodes for proposed heat exchangers, replacement of AVEC Hydronic heat exchanger, installing electronic control valves and thermal management control panel and replacing coolant. OTHER COMMENTS: