HomeMy WebLinkAboutDEHE-#243918-v1-Chevak_AEA_Round_7_Final_ApplicationCITY OF CHEVAK
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City of Chevak
ALASKA ENERGY AUTHORITY-AEA 2014-006 RENEWABLE ENERGY
GRANT APPLICATION
APPLICATION CONTENTS
• AEA HEAT PROJECT APPLICATION-SECTION 1 THROUGH 9
• AUTHORIZED SIGNERS -SECTION 1 0
• ADDITIONAL DOCUMENTATION AND CERTIFICATION-SECTION 11
• RESUMES
• LETTERS OF SUPPORT
• INVOICES
• GOVERNING BODY RESOLUTION
• FEASIBILITY STUDY
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 @a idea.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 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 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 of20 7/2/2011
Renewable Energy Fund Round VII
Grant Application -Heat Projects
SECTION 1-APPLICANT INFORMATION
Name City of Chevak
Type of Entity: Local Government Fiscal Year End: June 30
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ENERGY AUTHORITY
Tax ID #92-0061087 Tax Status: __ For-profit __ Non-profit ....lL..Government ( check one)
Date of last financial statement audit:
Mailing Address Physical Address
PO Box
Chevak, AK 99781 Chevak , AK 99781
Telephone Fax Email
(907) 585-7128 (907) 858-7245 cityofchevak@anthc.org
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 MC 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
httQ://www.akenergyauthority.org/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.
AEA 2014-006 Grant Application Page 2 of 20 7/2/2013
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.
Chevak Water and Vacuum Plant 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.
Chevak 61.527769,-165.586624
2.2.2 Community benefiting -Name(s) of the community or communities that will be the
beneficiaries of the project.
Chevak, AK
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 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 and Vacuum Sewer Plant. The estimated fuel oil savings to the water treatment
plant and vacuum sewer plant is projected to be 12,500 gallons of heating oil per year. For more
detailed information, see the attached updated Chevak, Alaska 2013 Heat Recovery Feasibility
Study.
AEA 2014-006 Grant Application Page 3 of 20 71212013
Renewable Energy Fund Round VII
Grant Application -Heat Projects
2.5 PROJECT BENEFIT
I~ EN ERGY 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 I sewer system benefits all the residents of Chevak, AK; however, the cost of energy
to operate the facility threatens its sustainability. This project is expected to reduce the fuel oil
usage of the facility by 12,500 gallons per year, offsetting nearly all of the expected demand.
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 $558,814 (2015 dollars). As allocated in the budget sheet, $39,824 is required
for design work and $518,993 for 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 $558,814
2.7.2 Cash match to be provided $
2.7.3 Total In-kind match to be provided (sum of lines below) $16,765
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 $16,765
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) $575,576
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 $558,814
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) $54,750
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.
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Renewable Energy Fund Round VII
Grant Application -Heat Projects
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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 Energy Projects Manager Carl Remley has been an ANTHC employee since 2002. Mr.
Remley is responsible for both energy conservation and renewable energy projects. At present,
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 % Design 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-Const. 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
AEA 2014-006 Grant Application Page 5 of 20 7/2/2013
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
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ENERGY AUTHORITY
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 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 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.
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
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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 offsets much of the fuel oil required much of the
year, as indicated by the attached 2013 Heat Recovery Feasibility Study. The only realistic
alternative to utilizing the recovered heat is to continue to burn oil.
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, s ize, age, efficie ncy, and t ype of ge ne ratio n .
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 FY 2011 is used in the
spreadsheet. The estimated heat rejection rate for the power plant gensets (Cummins OSX
15 G9) were used to estimate available recovered heat. Heating degree-days for Cape
Romanzof were utilized for this site. All arctic piping is assumed to be routed above ground.
4.2.2 Existing Heating Energy Resources Used
Briefly discuss your understanding of the existing energy resources. Include a brief discussion of
an y imp aCt the proj ect ma y have on existin g en e rgy infrastructure and resources.
The existing vacuum sewer plant and the water system are hydronically heated using fuel oil
boilers. All power plant hydronic piping is assumed to be insulated with 2 inches of insulation .
The generator plant design was used to estimate the heating load for the power plant, which
includes the power house, an insulated storage module, and one living quarters module.
4.2.3 Existing Heating Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
AEA 2014-006 Grant Application Page 7 of 20 7/2/2013
Renewable Energy Fund Round VII
Grant Application -Heat Projects
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eating oil must be barged in during the summer months. The impact of this project will be to
reduce the overall expected oil use by approximately 12,500 gallons per year. While this reduction
will not change the price of oil in Chevak, it will significantly reduce the community's consumption
of oil, replacing that consumption with jacket heat from the diesel.
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 that is
typically rejected to the atmosphere by the radiators. The recovered heat is transferred via 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 reducing 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-inch 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.
END-USER BUILDING TIE-INS
End-user building tie-ins typically consist of brazed plate heat exchangers with motorized bypass
valves to prevent back-feeding heat to AVEC or other users. Plate heat exchangers located in the
end-user mechanical rooms will be tied into the boiler return piping to preheat the boiler water
prior to entering the boiler. Where required, a heat injection pump will be used t o avoid
AEA 2014-006 Grant Application Page 8 of 20 7/2/2013