HomeMy WebLinkAboutGrayling_AEA_Round_7_Grant_ApplicationRenewable Energy Fund Round VII
Grant Application -Heat Projects
SECTION 1 -APPLICANT INFORMATION
Name City of Grayling
Type of Entity: Ci t y Government Fiscal Year End June 30
Tax 10 # 92-0044955 Tax Status: __ For-profit __ Non-profit ......2L_Government ( check one)
Date of last financial statement audit:
Mailing Address Physical Address
PO Box 89 1 01 3 'd Street Grayling, AK 99590
Grayling, AK 99590
Telephone Fa x Email
(907) 453-5148 (907) 453-5223 cityofgrayling@yahoo.com
1.1 APPLICANT POINT OF CONTACT I GRANTS MANAGER
Name Title
Carl Remley Manager, Energy Projects, ANTHC ,DEHE
Mailing Address
3900 Ambassador Dri ve Suite 301
Anchorag e 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, 0r
An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
A loca l government, or
X A governmental entity (whrch inc ludes tribal council s 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 t he applicant is a collabo rative grouping, a formal approval from each
participaAt 's governing authc:>rity is necessary. (Ind icate Yes or No in tlie box)
Yes 1.2.3 As a n applicant, we have administrative and financial management systems and
follow procurement standards that comply with the sta ndards 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
httQ://www.akenergyauthority.o rg/veeQ/Grant-TemQiate .Qdf. (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.
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Renewable Energy Fund Round VII
Grant Application -Heat Projects
SECTION 2 -PROJECT SUMMARY
This section is intended to b.e no mor:e 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.
Grayling Heat Recovery System
2 .2 P roject Locat ion -
In clude the physical location of your pr oject and name(s) of the co mmunity or communities that will
be nefit from your project in the subsections below.
2.2.1 Locat ion of Proj ect-Latitude and longitude, street address, or community name.
Latitude and longitude coordinates may be ebtained from Goog/e Maps by finding you project's location ori the map
and then right clicking with the mouse and selecting What i~ here? The coordinates will be displayed in the Goog/e
search window above the map in a format -as follows : 61 .196676.-149.898663. If you would like assistance obtaining
this information please contact AEA at 907-771 -3031.
Grayling 62.90554,-160.066681
2.2.2 Co m mu nity be nefiti ng -Na me (s) of the commu n ity or communit ies t hat will be the
beneficia ries of the proj ect.
Grayling, 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 AVEC electrical power plant to water treatment
plant (WTP). The expected annual savings is 5,261 gallons, or approximately half of the total
heat demand. For more detailed information, see the attached Grayling, Alaska 2013 Heat
Recovery Feasibility Study.
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Renewable Energy Fund Round VII
Grant Application -Heat Projects
2.5 PROJECT BENEFIT
I
Briefly discuss the financial aad public benefits that will result from this heat project, (such as reduced fuel
costs, lower energy costs, local jobs created etc.)
The WTP facility directly or indirectly benefits all the residents of Grayling, AK; however, the
cost of energy to operate the facility threatens its sustainability. This project is expected to
reduce the WTP 's fuel oil usage by 5,261 gallons per year.
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, the cost to deploy this project is
estimated to be $322,903 (2015 dollars). As allocated in the budget sheet, $45 ,372 required for
design work and $277,531 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 gran't 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 $322,903
2.7.2 Cash match to be provided $
2.7.3 Total In-kind match to be provided (sum of lines below) $9,687
Biomass or Biofuel inventory on hand $
Energy efficiency improvements t o buildings t o be $
heated (within past 5 years or committed prior to
proposed project completion)
Other In-Kind match to be provided $9,687
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) $332,590
Project Costs & Benefits
(Summary of total project costs including woik to date anCJ future cost estimates to get to a fully
operational project)
2.7.7 Total Project Cost Summary from Cost Worksheet, Section $322,903
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) $33,302
2. 7.10 Other Public Benefit If you can calculate the benefit in terms $
of dollars please provide that number here and explain how you
calculated that number in Section 5 below.
AEA 2014-006 Grant Application Page 4 of 19 71212013
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 pmject 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 applic_ant would like those excluded from the web posting of this
appl ication . If the applicant does not have a project manager indicate how you intend to sol icit
project management support. If the applicant expects project management assistance from AEA
or another government entity, state that in this section. -
Alaska Native Tribal Health Consortium (ANTHC) 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
Conduct periodic site visits 4/1/2016 6/1/2017
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Renewable Energy Fund Round VII
Grant Application -Heat Projects
Conduct Substantial Completion
Inspection
Start-up and Testing
Startup and Testing
Clear Punch list Items
Project Close Out
3.3 Project Resources
6/1/2017 7/1/2017
7/1/2017 8/1/2017
8/1/2017 9/1/2017
9/1/2017 10/1/2017
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 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 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 stat us .
Please provide an alternative contact person and the ir 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 this
project. Regular coordination meetings will be held between AEA and ANTHC regarding all
projects.
3.5 Project Risk
Discuss po tential 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 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.
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.
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Renewable Energy Fund Round VII
Grant Application -Heat Projects
4.1 Proposed Energy Resource
I
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 th is application.
The energy resource available is the heat from the water jackets of the power plant engines. The
heat available from the power plant can significantly offset a large portion of the fuel oil required
for much of the year.
The only realistic alternative to utilizing the recovered heat is to continue to burn an estimated
5,261 gallons of fuel oil to provide the heat required the building. Estimates 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 gensets (Cummins LTA10, 1200 RPM & 1800
RPM) were used to estimate available recovered heat. Heating degree-days for Holy Cross 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 existing water facilities are heated with fuel oil. The heat recovery feasibility study reports that
the current estimated annual usage of heating oil at the WTP is 8,004 gallons.
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Renewable Energy Fund Round VII
Grant Application -Heat Projects
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
offset the overall use of oil by approximately 5,261 gallons. While this reduction will not change
the price of oil in Grayling, it will significantly reduce the community's consumption of oil, replacing
that consumption with jacket heat from the diesel power plant.
4.3 Proposed System
lncluc;:te 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 that 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 buried insulated
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
power plant cooling system are included or anticipated, except those required to connect the
arctic piping to the power plant heat exchangers.
All heat recovery piping 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.
The recovered heat fluid will be a 50/50 propylene glycol/water solution to provide freeze
protection to the piping.
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