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HomeMy WebLinkAboutEmmonak AEA Round 7 ApplicationRenewable Energy Fund Round VII Grant Application -Heat Projects SECTION 1 -APPLICANT INFORMATION Name City of Emmonak Type of Entity: Local Government Fiscal Year End June 30 I = A I 'bEiWi£ 2 -=:1 ENERGY AUTHORITY Tax ID # 92-0042949 Tax Status: __ For-profit __ Non-profit .....X.....Government ( check one) Date of last financial statement audit: Mailing Address Physical Address PO Box 9 Water Treatment Plant Emmonak, AK 99581 Telephone Fax Email 907-949-1227 907-949-1926 emkcity@gmail.com 1.1 APPLICANT POINT OF CONTACT I GRANTS MANAGER Name Title Carl Remley Manager. Energy Projects, ANTHC DEHE Mailing Address 3900 Ambassador Drive Suite 301, Anchorage AK 99508 Telephone Fax Email 907-729-3543 907-729-4047 cremley@anthc.org 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer in accordance with 3 AAC 107.695 (a) {1 ), or A local government, or X A governmental entity (which includes tribal councils and housing authorities); Yes 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 Yes or No in the box) Yes 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). Yes 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 htt(2://www.akenergyauthority.org/vee(2/Grant-Tem(21ate.(2df. (Any exceptions should be clearly noted and submitted with the application.) Yes 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. AEA 2014-006 Grant Application Page 2 of20 7/2/2013 Renewable Energy Fund Round VII Grant Application -Heat Projects SECTION 2 -PROJECT SUMMARY I = AI oeRi4 2 ~ENERGY AUTHORITY 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. Emmonak Heat Recovery System 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 . Emmonak 62 .779254,-164.550176 2.2.2 Community benefiting -Name(s) of the community or communities that will be the beneficiaries of the project. Emmonak, 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 X 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 I. Reconnaissance X Ill. Final Design and Permitting II. Feasibility and Conceptual Design X IV. Construction and Commissioning 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of the proposed heat project. This project will provide waste heat from the existing electrical power plant to the water treatment plant, the City Office, and the Boys and Girls Club. The estimated fuel oil savings to these facilities is projected to be 18,879 gallons of heating oil per year. For more detailed information, see the attached updated Emmonak, Alaska 2013 Heat Recovery Feasibility Study. (Note that the potential savings noted above are contingent on the completion of proposed renovations to the power plant.) AEA 2014-006 Grant Application Page 3 of20 7/2/2013 Renewable Energy Fund Round VII Grant Application -Heat Projects 2.5 PROJECT BENEFIT I = ALWKA 2 ~ENERGY AUTHORITY 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.) The water system, City Office, and Boys and Girls Club benefit all the residents of Emmonak, AK; however, the cost of energy to operate these facilities threatens their sustainability. This project is expected to reduce the fuel oil usage by 18,879 gallons per year, nearly fully offsetting the fuel oil usage . 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. Based on the attached 2013 Heat Recovery Feasibility Study, and as modified for this application, the cost to deploy this project is estimated to be $689,251 (2015 dollars). As allocated in the budget sheet, $79,1 05 is required for design work and $610,146 is needed for the construction. In addition, the Alaska Native Tribal Health Consortium (ANTHC) will provide an in-kind cost match of 3% in the form of project and program management services . 2.7 COST AND BENEFIT SUMARY Include a summary of grant request and your project's total costs and benefits below. Grant Costs (Summary of funds requested) 2.7.1 Grant Funds Requested in this application $689,251 2.7.2 Cash match to be provided $ 2.7.3 Total In-kind match to be provided (sum of lines below) $20,677 Biomass or Biofuel inventory on hand $ Energy efficiency improvements to buildings to be $ heated (within past 5 years or committed prior to proposed project completion) Other In-Kind match to be provided $20,677 2.7.4 Other grant funds to be provided $ 2.7.5 Other grant applications not yet approved $ 2.7.6 Total Grant Costs (sum of 2.7.1 through 2.7.4) $709,928 Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.7 Total Project Cost Summary from Cost Worksheet, Section $689,251 4.4.4, including estimates through construction. 2.7.8 Additional Performance Monitoring Equipment not covered $[Included] by the project but required for the Grant Only applicable to construction phase projects. 2.7.9 Estimated Direct Financial Benefit (Savings) $75,138 2. 7.1 0 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. AEA 2014-006 Grant Application Page 4 of 20 7/2/2013 Renewable Energy Fund Round VII Grant Application -Heat Projects I ·. AI 'hSK*t s ~ENERGY AUTHORITY 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 expects project management assistance from AEA or another government entity, state that in this section. ANTHC's Energy Projects Manager Carl Remley has been an ANTHC employee since 2002. Mr. Remley is responsible for both energy conservation and renewable energy projects. This includes performing energy audits in public buildings in 40 rural Alaska villages, installing energy conservation displays in all homes in 12 villages, evaluating heat recovery opportunities in 10 villages, implementing heat recovery in several villages, and acting as the energy coordinator for the Indian Health Service in Alaska. Prior to that, Mr. Remley owned and operated an energy conservation consulting company for 22 years and was a design engineer in the aerospace industry for 10 years. Mr. Remley has a Bachelor's Degree in Mechanical Engineering and a Master's Degree in Business Administration. He is also both a Certified Energy Auditor and a Certified Energy Manager. 3.2 Project Schedule and Milestones Please fill out form provided below. You may add additional rows as needed. Milestones Tasks Start Date End Date Project Planning Execution of Grant and Agreements 10/1/2014 11/1/2014 Conduct Kick-off Meeting 11/1/2014 11/1/2014 35 % design with Cost Estimate 11/1/2014 2/1/2015 Final Design Complete 95 % DesiQn with Cost Estimate 2/1/2015 5/1/2015 Construction Documents 5/1/2015 7/1/2015 Final Business Plan 5/1/2015 7/1/2015 Negotiated heat sales agreement 5/1/2015 7/1/2015 AEA Approves moving ahead to construction 7/1/2015 8/1/2015 Construction Phase Start Pre-Canst. meeting with Schedule and cost estimate with ANTHC construction department. 8/1/2015 8/1/2015 Material Procurement and Mobilization 8/1/2015 4/1/2016 On-site Construction 4/1/2016 6/1/2017 AEA 2014-006 Grant Application Page 5 of 20 7/2/2013 Renewable Energy Fund Round VII Grant Application-Heat Projects I = AL'hSB£ 2 ~ENERGY AUTHORITY Conduct periodic site visits 4/1/2016 6/1/2017 Conduct Substantial Completion Inspection 6/1/2017 7/1/2017 Start-up and Testing Startup and Testing 7/1/2017 8/1/2017 Clear Punch list Items 8/1/2017 9/1/2017 Project Close Out 9/1/2017 10/1/2017 3.3 Project Resources Describe the personnel, contractors, accounting or bookkeeping 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 aiw 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 project manager will be Carl Remley of ANTHC. He will be supported during the design phase 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. Resumes of all key personnel are attached to this application. 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 with ANTHC, the Village, and AEA to discuss the status of this 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 provide heat to the water system, City Office, and Boys and Girls Club. Installing the necessary heat exchangers, piping, pumps, and controls necessary for implementation has been done many times before and has proven effective for many years. 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 your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. AEA 2014-006 Grant Application Page 6 of 20 7/2/2013 Renewable Energy Fund Round VII Grant Application -Heat Projects 4.1 Proposed Energy Resource I ·. AI 'WiSA 22 -=:J ENERGY AUTHORITY 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 for the market to be served by your project. For pre-construction applications, describe the resource to the extent known. For design and permitting or construction projects, please provide feasibility documents, design documents, and permitting documents (if applicable) as attachments to this application. The energy resource available is the heat from the water jackets of the power plant engines. The heat available from the power plant significantly exceeds that required by the water treatment plant and other buildings, most of the year, as indicated by the attached 2013 Heat Recovery Feasibility Study so additional building can be added. The only realistic alternative to utilizing the recovered heat is to continue to burn over 18,879 gallons of fuel oil to provide the heat required by the water treatment plant and other buildings. The cost of fuel is almost five times the cost of the recovered heat. Details are contained in the attached 2013 Heat Recovery Feasibility Study. 4.1.2 For Biomass Projects 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? N/A 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, heating degree days, passive losses for power plant heat and piping, and arctic piping losses. The spreadsheet utilizes assumed time-of-day variations for electric power production and heat demand. Power generation data from AVEC for fiscal year 2011 is used in the spreadsheet. The estimated heat rejection rate for the power plant genset (most frequently operated CAT 3456) was used to estimate available recovered heat. Heating degree-days for Emmonak were utilized for this site. All arctic piping is assumed to be routed below grade. All power plant hydronic piping is assumed to be insulated with 2 inches of insulation. 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 WTP is hydronically heated and provides heat to circulating water lines and to the water storage tank. The system, however, was not designed for waste heat and will require installation of new controls and heat transfer equipment, including a heat exchanger and circulating pumps. AEA 2014-006 Grant Application Page 7 of 20 7/2/2013 Renewable Energy Fund Round VII Grant Application -Heat Projects I ·. ALtSKA 2 ~ENERGY AUTHORITY The City Office/Hotel building is also hydronically heated and will require some new equipment, such as controls preventing heat from back-feeding into the generator facility, a large brazed plate heat exchanger, and a new circulator pump. The Boys and Girls Club is heated with a direct vent Monitor oil-fired heater. One cabinet unit heater will be installed next to the existing Monitor heater and baseboard heater will be installed in the office area. Monitor stove will be remained as the primary heating system to the building. The above ground arctic pipe will be extended from the new power plant to the Boys and Girls Club building. 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 the summer months. The impact of this project will be to reduce overall oil use by approximately 18,879 gallons per year. While this reduction will not change the price of oil in Emmonak, it will significantly reduce the community's consumption of oil, replacing that consumption with jacket heat from the diesel engines and, potentially, excess wind energy in the future. 4.3 Proposed System Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, energy efficiency 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 • Energy efficiency measures (building envelope) The heat recovery system captures jacket water heat generated by the AVEC power plant, which is typically rejected to the atmosphere by the radiators. The recovered heat is transferred via below-grade arctic piping to the end users. The objective is to reduce the consumption of expensive heating fuel by utilizing available recovered heat. 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 mixing the fluids. Controls at the power plant are used to prevent subcooling of the generator engines and reduction in electric power production efficiency. The recovered heat fluid is pumped through insulated above ground pipe to the end-user facilities, and is typically tied into the end-user heating system using a plate heat exchanger. AVEC PLANT TIE-IN Because the AVEC plant is being designed for recovered heat, no modifications to the AVEC AEA 2014-006 Grant Application Page 8 of 20 7/2/2013