HomeMy WebLinkAboutCOS REF Round 7 ApplicationCITY OF SEWARD, ALASKA
ALASKA SEALIFE CENTER HEAT RECOVERY PROJECT
RENEWABLE ENERGY FUND ROUND VII
Renewable Energy Fund Round VII
Grant Application -Heat Projects
Application Forms and Instructions
This instruction page and the following grant application constitutes the Grant Application Form
for Round VII 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 is available online at: www.akenergyauthority.org/REFund7.html.
• If you need technical assistance filling out this application, please contact Shawn Calfa,
the Alaska Energy Authority Grant 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 grant 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 Ener Authori is sub"ect to the Public Records Act 40 .25 , aruLrnateria ..._ ___ _
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 fina l
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 is to be kept confidential the applicant must:
o Request the information be kept confidential.
o Clearly identify the information that is the trade secret or proprietary in their
application.
o Receive concurrence from the Authority that the information will be kept
confidential. If the Authority determines it is not confidential it will be treated as a
public record in accordance with AS 40.25 or returned to the applicant upon
request.
AEA 2014·006 Application Page 1 of22 7/2/2011
Renewable Energy Fund Round VII
Grant Application -Heat Projects I
SECTION 1 -APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
City of Seward
Type of Entity: Home Rule City Fiscal Year End: December 31
Tax ID # 92-6000086 Tax Status:_For-proflt _Non-profit .....X.... Government ( check one)
Date of last financial statement audit: June 12,2013 for fiscal year ending December 31, 2012
Mailing Address Physical Address
P.O . Box 167 410 Adams Street
Seward , AK 99664 Seward , AK 99664
Telephone Fax Email
(907) 224-3331 (907) 224-4038 ihunt@cityofseward.net
1.1 APPLICANT PO INT OF CONTACT I GRANTS MANAGER
Name Title
James Hunt City Manager
Mailing Address
P.O . Box 167
Seward, AK 99664
Teleph one Fax Email
(907) 224-4047 (907) 224-4038 jhunt@cityofseward.net
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 inde_p_endent_QQ_wer _Q roducer in accordance with 3 MC 1 07.695 @.ltl) ... or
X A local government, o r
A governmental entity (which includes tribal councils and housing authorities);
1.2.2 Attached to this application is formal approval and endorsement for the project by
Yes 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)
1.2 .3 As an applicant, we have administr ative and financial management systems and
Yes follow procurement standards that comply with the standards set forth in the grant
agreement (Section 3 of the RFA).
1.2.4 If awarded the grant, we can comply with all terms and conditions of the award as
Yes identified in the Standard Grant Agreement template at
htt~;r//www .akenergyauthority .org/veeQ/Grant-TemQiate .Qdf . (Any exceptions
should be clearly noted and submitted with the application .)
1.2.5 We intend to own and operate any project that may be constructed with grant
Yes 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 of22 7/212013
Renewable Energy Fund Round VII
Grant Application -Heat Projects
SECTION 2-PROJECT SUMMARY
This section is intended to be no more than a 2-3 page overview of your project.
2.1 Project Title -(Provide a 4 to 7 word title for your project). Type in space below.
Alaska SeaLife Center Heat Recovery Project
2.2 Project Location -301 Railway Avenue, Seward, AK 99664
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 .
60.099943,-149.441035
2.2.2 Community benefiting -Name(s) of the community or communities that will be the
beneficiaries of the project.
Seward
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 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.
The City of Seward is the owner of the Alaska SeaLife Center (ASLC), which is leased and
operated by the Seward Association of Marine Science (SMMS), doing business as the Alaska
SeaLife Center. In conjunction with SMMS, the City proposes installation of an innovative heat
recovery system that captures waste heat from exhaust fans EF-4 & EF-5, minus 80 tissue
freezers, IT .server room, electrical and mechanical room, fan coils and animal and necropsy
refrigeration. Heat recovered will be directed to the front end of the seawater heat pump system
and this will increase the coefficient of performance (COP) of this system .
AEA 2014-006 Grant Application Page 3 of22 71212013
Renewable Energy Fund Round VII
Grant Ap-plication -Heat Projects
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.)
The ASLC util ized Denali Commission funding and AEA Round Ill funding to install two 90-ton
seawater source heat pumps in 2010-11. The proposed heat recovery system will increase the
performance of this installation. The savings from the proposed heat recovery project are
significant and would allow a simple payback on investment (without grant funds) of five years.
NPW Eva luation Of Heat Recove!I S~m i!!lth EF-4 & EF-6 waste heat recove!I as financial driver! ·AGAINST HEATING OIL
Net Present Worth (NPW) YEAR
Descrletion Of Financial Element 0 2 3 4 5 10 20
Total Project Cost For Heat Reco.ery $250,000
Grid Elect-1.5 hp PG Pumps 4%/yr esc $1 .020 $1,061 $1,103 $1,147 $1,193 $1,241 $1,510 $2,235
20 years of Glycol Pumping ·Present Worth $20,400 $1,020 $1,020 $1,020 $1,020 $1,020 $1,020 $1,020
O&M Cost with 6%1yr Inflation $3,000 $3,180 $3,371 $3,573 $3,787 $4,015 $5,373 $9,621
20 yrs O&M Present Worth $73,728 $3,058 $3,117 $3,176 $3 .237 $3,300 $3,630 $4,391
#2 Fuel 011 Saled with 6%lyr escalation $53,918 $57,153 $60,582 $64,217 $68,070 $91,093 $163,134
Discount Rate Factor (PI F) 4% 0.9615 0 .9246 0.889 0.8548 0.8219 0.6756 0.4564
20 yrs #2 fuel oil saved .Present Worth $1,250,081 $51 ,842 $52,844 $53,858 $54,893 $55,947 $61,543 $74,454
Net Present Worth of Project $905,953 -$202 .235 -$153 ,528 -$103,867 .$53,2321 -$1,6051 $272,125 $905,953
Years To Payback Initial Investment Payback= 5years
Classic formula: pw(B) I (I + pw (O&M)) = 3.63 Benefit I Cost Ratio
NPW Evaluation Of Heat Recove!I Se!!!m !with EF-4 & EF-6 w aste hea t recove!I a s financial driver!· A GAINST ELECTRI C BOILER
YEAR
Descrtetlon Of Financial Element 0 2 3 4 5 10 20
Total Project Cost For Heat Recovery $250,000
Grid Elect -1.5 hp PG Pump -Year 1 $1,020 $1 ,061 $1 ,103 $1,147 $1 ,193 $1,241 $1 ,510 $2 .235
20 years Glycol Pumping ·Present Worth $20,400 $1,020 $1 ,020 $1,020 $1,020 $1,020 $1 ,020 $1 ,020
O&M Cost ·Year 1 $3 ,000 $3 .180 $3 ,371 $3,573 $3,787 $4 .015 $5 ,373 $9 ,621
20 yrs O&M • Present Worth $73,728 $3,058 $3 ,117 $3,176 $3.237 $3 ,300 $3,630 $4,391
#2 Fuel Oil Saled in Year 1 50. $54,043 $57,286 $60,723 $64,366 $68,228 $91 ,305 $163,513
Discount Rate Factor (PI F) 4% 0.9615 0.9246 0.889 0.8548 0.8219 0.6756 04564
20 yrs bolter electricity saved ·Present Worth $1,252,981 $51,962 $52,966 $53,983 $55 ,020 $56 .077 $61 ,685 $74,627
Net Present Worth of Project $908,853 -$202,115 -$153,286 -$103,499 .$52,7371 -$9801 $273,437 $908,853
Years To Payback Initial Investment Payback= 5years
Notes : Current rate of grid electricity is $0.104 (4%1year esc), current cost of healing otJ Is $3 .65/gallon (6%/year esc)
inpu t = annual glycol pumping cost " 1.5 HP pump running 2417 @ $0. 10/KWH
onput-value of annual #2 fuel oil saled = 191 MBH (EF4 & EF -5 run ni ng 2417) = 13,936 gaWyr @$3 65/gal
.__.-;a~ value of electric boijer saled = 191 MBH (EF4 & EF-5 running 2417) = 490,236KWH/yr @$0 .104/KWH
2.6 PROJECT BUDGET OVERVIEW
Briefly discuss the amount of fun ds needed, th e anticipated sources of funds, and th e nature and source
of other contributions to the project.
The City of Seward is requesting a total of $225,000 from the Renewable Energy Fund Round 7
for these improvements at the Alaska Sea Life Center. The REF grant will fund the procurement
and installation of the project components. The proposed project will integrate into the seawater
heat pump system previously funded by the Denali Commission and Round 3 of the RE Grant
Fund, M.J. Murdock Charitable Trust and ASLC contributions. An in-kind contribution of $25,000
will be provided by the ASLC for installation of the heat recovery system .
AEA 2014-006 Grant Application Page4of22 71212013
Renewable Energy Fund Round VII
Grant Application -Heat Projects
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 $225,000
2.7.2 Cash match to be provided $
2.7.3 Total In-kind match to be provided (sum of lines below) $25,000
Biomass or Biofuel inventory on hand $0
Energy efficiency improvements to buildings to be $0
heated (within past 5 years or committed prior to
proposed project completion)
Other In-Kind match to be provided $25,000
2.7.4 Other grant funds to be provided $0
2.7.5 Other grant applications not yet approved $0
2.7.6 Total Grant Costs (sum of 2.7.1 through 2.7.4) $250,000
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 $250,000
4.4.4, including estimates through construction.
2.7.8 Additional Performance Monitoring Equipment not covered $0
by the project but required for the Grant Only applicable to
construction phase projects.
2.7.9 Estimated Direct Financial Benefit (Savings) $51 ,000/year
2. 7.10 Other Public Benefit If you can calculate the benefit in terms $0
of dollars please provide that number here and explain how you
calculated that number in Section 5 below.
AEA 2014-006 Grant Application Page 5 of22 712/2013
Renewable Energy Fund Round VII
Grant Application -Heat Projects
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 referen ces 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.
We do not expect project management assistance from AEA or any other government entity.
The project will be managed by Darryl Schaefermeyer, John Underwood, and Andy Baker,
whose resumes are attached as Appendix A.
Darryl Schaefermeyer-Project Manager, telephone: (907) 224-6309, email:
darryls@alaskasealife.org
John Underwood -Assistant Project Manager, telephone: (907) 224-6309, email:
johnu@alaskasealife .org
Andy Baker-Project Consultant, telephone: (907) 274-2007, email:
andybaker@yourcleanenergy.us
PI fill tfi "d db I ease 1 ou orm provt e eow. y ou may a dd dd"f d d a 1 tona rows as nee e .
Milestones Tasks Start Date
Confirm design and feasibility Confirm design and feasibil ity
-re-qllirements-comptete l"equtrementsc-ollll)le--re f/111~
Completion of bid documents Draft and send Request for Proposals 7/1/14
Invitation to bidders Bidders prepare and submit proposals 7/15/14
Selection and award to Evaluate proposals and select contractors
contractors for mechanical/electrical/controls 8/15/14
Award Contracts Negotiate terms of contracts and award 9/1/14
Construction Installation of heat recovery system 10/1/14
Integration and Testing Initial start-up and troubleshooting 1/1/15
Final Acceptance & Final acceptance & commissioning
CommissioninQ 1/16/15
Operations Reporting Monitoring and Reporting 1/1/15
AEA 2014-006 Grant Application Page 6 of22
End
Date
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7/15/14
8/15/14
8/31/14
9/30/14
12/31/14
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7/2/2013
Renewable Energy Fund Round VII
Grant Application -Heat Projects
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
w ith othe r e ntities you have or anticipate will be needed to complete your project. Describe any
existing contracts and th e se lecti on process you may use for major equ ipment purc hases or
co ntracts . Include bri ef resu mes and ref erences for kn own , key pe rsonnel, contra ctors , and
s uppliers as an attachm ent to your app lication .
T he City and SAAM S will execute a memorandum of agreement to accomplish the goals and
objectives of th is proj ect. SAAMS will use a competitive solicitation process in conformance
w ith its procurement policies, which conform with OMB Circular No . A-122 to secure materials,
equipment and all necessary outside contractor services. In t hi s process, equipment suppliers
and installation co ntractors will be required to adhere to strict specif ications.
T he professional se rvices of YourCieanEnergy, LLC and EDC, Inc., system designers, will
p rovide constructi on engineering and commissioning services.
3.4 Project Comm unicati ons
Discu ss how you plan to monitor the project and keep the Authority informed of the status .
P lease provide an alte rnati ve contact person and thei r co ntact i nformation .
Proj ect Manager Da rryl Schaefermeyer, telephone: (907) 224-6309, email:
darrvls@alaskasealife.org
A ss istan t Project Manager John Underwood, telephone: (907) 224-6359, email:
johnu@alaskasealife.org wi ll be responsible for monitoring all aspects of the proj ect to assure it
conforms to the terms of the gran t. They will also provide the required status reports via email
to AEA's Project Manager as required by the terms of the grant agreement.
Project Consultant An dy Baker, telephone: (907) 274-2007, email:
andybaker@yourcleanenergy.us will review and approve equipment submitta ls, advise on
engineering and design questions that may arise during the install ation, and participa te in
----syste m-com missioni ... ~------------------------------
3.5 Project Risk
Disc uss potentia l problems and how you would address them .
T his is stra ightforward proj ect that has been well engineered and designed so we do not expect
problems w ith th e insta ll ati o n and operation of the system. SAAMS has extensive experience
w ith large, complex mechanical project and its staff have managed and const ructed large
marine and bird facilities, entire heating boiler replacements, installation of seawater and
freshwater heat exchangers, installation of large aquaria tanks and the ir related mechanical
systems, installatio n of complex salmon research habitats and laboratories, and recently, the
in stallation of the complex seawater heat pump system funded in part by a REF Round 3 grant.
AEA 2014-006 Grant Application Page 7 of22 7/2/2013
Renewable Energy Fund Round VII
Grant Application -Heat Projects
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.
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 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.
Under cold weather design conditions, there exists approximately 35 1 MB H of waste heat that is
current ly rejected f rom the building with exhaust fans EF-4 and EF-5, or los t t h rough the b uildi ng
envelope. T his is heat that has historically been unrecovered (wasted outs ide), and is generated
primaril y by st ra ight electric heat app li ances (e lectric boile r, computer servers, electrical
equipment, ch ill ers) and secondarily by the ou tput from seawate r heat pumps. A description of
the proposed heat recovery system is contained in the A ugust 20 13 Design Narrat ive prepared by
YourC iean Energy, LL C (Appendix B).
4.1.2 For Biomass Proj ects Only
Identify any wood inventory questions , such as :
• Ownership/Access ibility. W ho owns the land and are their limitations and restrictions to
accessing the biom ass re source?
• Inventory data. How much biomass is available on an annual basis and what types
(species) are there, if known?
------~~.ap~~'~.--------------------------------------------------------------
4.2.1 Basic configuration of Existing Heating Energy System
Briefly discuss the basic configuration of the existing energy system . Include information about
the numbe r, size, age, efficiency, and type of generation .
Th e existing heati ng energy system at t he ASLC consists of:
• One 500KW Sussman El ectric Boile r, 100% efficiency, installed in 2008, provides 130°F to
160F heat to the ma in hydron ic heat loop for the bu il ding (serving baseboards, unit
heaters, domesti c hot wa ter, air handlers).
• Two 1080 MBH (90-ton) rotary screw h igh-efficiency R-134a T rane RTWD heat pumps ,
250% to 350% efficiency, installed in 20 10, providing 120°F heat to ai r handlers, outdoor
pavement heat, and pre-heating domestic hot water.
• Two 2911 MBH Cleaver Brooks oil boilers, 86% efficiency, installed in 2004, now servi ng
only as standby un its to the heat pumps .
AEA 2014-006 Grant Application Page 8 of22 7/2/2013
Renewable Energy Fund Round VII
Grant Application -Heat Projects
4.2.2 Existing Heating Energy Resources Used
Briefly discuss your understanding of the existing energy resources. Include a brief discussion of
any im pact the project may have on exi sting energy infrastructure and resources .
Exist ing heat energy resources in the facili ty at th is t ime are primarily the two T rane 90-ton
seaw ater source heat pumps, and a 500 KW Sussman El ectric Boiler. The proposed heat
recove ry project will have a positive impact on the existing seawater heat pump system beca use
w aste heat will be used to raise the temperatu re of the 36 0 GPM evaporator glyco l loop by u p to
3°F. This will increase the COP of the heat pumps by w armi ng the gl y col en tering tem peratu re,
and w ill result in an estimated annual savi ngs in electric ·boiler operation of 48 1,000 KWH . T his is
equ ivale nt to $51,000 at the current electri c ity rate of $0.105/KWH .
4.2.3 Existing Heating En ergy Market
Dis cuss exist ing energy use and its market. Disc uss impacts your project may have on energy
custom ers .
Existi ng energy use for older buildings in Sewa rd (high cost region) genera ll y does not include
heat recovery; the cost of making heat with electricity or heating oil in Seward is quite h igh.
Introducing the practice of waste heat recovery and demonstrating the economic benefits of doing
so (estimated five-year payback) will motivate other building owners and faci lities in the region and
thorough Alaska to also consider this practice.
4.3 Proposed Sy stem
Includ e information necessary to describe the system you are intendi ng to develop and address
potential system d es ig n, land ownersh ip, permits , energy effi ciency and environmenta l issues .
4.3.1 System Design
Provide the followin g information for the proposed renewable energy system :
• A description of re newable en ergy techno logy specific to project location
• Optim um in sta ll ed capacity
----t----:::.=--;A;nucl pated capac1ty-factbr
• Anti cipated annual generati on
• Anti cipated barriers
• Basi c integ ration con cept
• Delivery methods
• Energy efficiency measures (bu il d ing envelope)
Waste heat w ill be recovered by using duct co ils to transfer heat from warm air into co ld glycol,
and from warm refrigeration condenser lines into cold glycol. The optimum capacity wi ll be 351
MBH at the design temperature of 5°F. A schematic of existing waste heat sources is shown on
the fo llowing page (Figure 1 ). Additiona l information is included in the 2013 Design Narrative
(Appendix B) prepared by YCE.
A breakdown of waste heat sources (at design temperature of 5° F) to be recovered within the
f acility a re as follows : Exhaust Fan EF-4 (149 MBH); Exhaust Fan EF-5 (42 MBH); Tissue
Storage Room 118 (30 MBH); Boiler Room (30 MBH); Animal Food Storage Condenser (40 MBH);
Necropsy Condenser (30 MBH); IT Server Room (30 MBH). The waste heat sources are
symptomatic of an HVAC system that was built in 1998 when heating oil costs were much lower.
AEA 20 14-006 Grant A pplication Page 9 of22 7/2/2013