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HomeMy WebLinkAboutKetchikan Appendix v2 Ketchikan Gateway Borough : Grant Application Appendices Contents Appendix A – Resumes A1 – Ketchikan PM and Key Staff A2 – Tetra Tech Appendix B - Letters of Support Appendix B1 – KGB Appendix B2 – KPU Appendix C – Fuel Invoice Appendix D - Governing Body Resolution Appendix E - Supporting Documentation – Feasibility Studies E1 – Airport Biomass Heating FS E2 – SD Biomass Heating FS E3 – Pellet Quote (Tongass) E4 – Airport Energy Audit E5 – High School Energy Audit E6 – Tt Engineering Cost Estimate Appendix F – Tt Construction Costing Calculations A2 – Tetra Tech STATEMENT OF QUALIFICATIONS Conventional & Renewable Energy Construction Services Conventional & Renewable Energy Construction Services Tetra Tech is a premiere full-service, project lifecycle provider to the electric power industry. For the past ten years, we have provided environmental, design, and construction services (bundled or a la carte) to support project execution, development, and operations on more than 1,000 power projects around the world. We offer services for coal, natural gas, biomass sources and other renewables. Our experience includes new natural gas and renewable energy power plants, and associated transmission and distribution facilities. We also offer energy waste system design-build services for fly ash, manufactured gas plants, and other remediation needs. We have expert knowledge and experience in decommissioning and demolition services, as well. With financial strength totaling more than $2.6 billion in annual revenue, Tetra Tech has the experience and resources to support large EPC, balance of plant, and construction projects for conventional power plants – while keeping safety at the forefront of every project. Services DEVELOPMENT STAGE  Environmental – Critical Issues (Fatal Flaw) Analysis – Permit Strategy Development – GIS Services – Site Selection and Alternative Site Identification – ASTM Standard Phase I and II Environmental Assessments – Public Involvement – Regulatory Compliance and Permitting  Air, Water and Waste Permits  Environmental Review Statue Compliance and Third-Party Environmental Impact Statements  State Energy Facility Siting and Utility Commission Approvals – Resource Surveys Assessments and Plans  Biological Studies - Wildlife, Vegetation and Wetlands  Cultural Resources  Socioeconomic, Land Use and Recreation  Visual and Noise  Engineering – Feasibility Studies – Power Process Engineering – Fuel Supply and Electric Transmission Considerations in Site Selection – Generation Connection Studies – Conceptual Design – Geotechnical and Seismic Studies – System Planning and Electrical System Studies – Transmission Line and Cable Studies  Construction – Constructability Review & Planning – Construction Permits – Vendor Review and Selection CONSTRUCTION STAGE  Environmental – Construction Compliance Planning, Training and Inspection  Engineering – Owner’s Engineer – Major Equipment Selection and Specifications  Diesel and Gas Turbine-Generators  Fuel Tanks and Auxiliary Systems  Electrical Distribution and Switchgear – Detailed Design  Mechanical Systems  HVAC  Fire Suppression System for Electrical Substations and Auxiliary Builders  Plumbing and Domestic Water System  Electrical Design  Substation Design  Civil/Structural Design  Computer Aided Drafting and Design (CADD) – Subcontractor/Vendor Submittals Reviews – Response to Requests for Information and  Field Change Requests – Management of Construction and Design Changes – As-Built Drawings – Field Services OPERATION STAGE  Environmental – Compliance Planning, Training and Inspection – Permit Modifications – Air Permit Source Testing, Monitoring, Record-keeping, Reporting – Wastewater Discharge Monitoring and Reporting – Acoustic Equipment Acceptance Testing, Operational Sound Surveys, and Noise Compliant Resolution – Superfund Amendments and Reauthorization Act (SARA Title III) – Emergency Planning Community Right To Know (EPCRA) Reports  Engineering – Energy Waste System Design  Construction – Energy Waste System Construction  Coal Ash Landfills and Other Related Impoundments  MGP Demolition Remediation  Construction – Engineer, Procure, Construct (EPC) – Balance of Plant (BOP) – Construction Management – Construction Philosophy  Project Management  Health and Safety Planning and Training  Quality Assurance/Quality Control (QA/QC) WATER NATURAL RESOURCES ENVIRONMENT INFRASTRUCTURE ENERGY Performance Highlights Power Generation Heritage Tetra Tech has a long and rich history in power plant construction. Tetra Tech’s construction organization was built around t he acquisition of Foster Wheeler Environmental Corporation in 2003, a firm that had its roots in The Electric Bond and Share Compan y (EBASCO). Tetra Tech’s construction organization is shaped by this legacy; the safety culture, business practices, and quality procedures of our con struction organization have their roots in major power plant construction projects. Many of our current co nstruction staff began their careers at EBASCO, and are experienced in EPC execution of historic thermal and nuclear power plants, such as the Oxnard Cogeneration Facility (46 MW); the Eagle Point Project (225 MW facility) in New Jersey, which has been sup plying steam to an adjacent refinery since 1991; and the Allegheny Lock & Dam #8, 9 (voestalpine pit turbine generators 13, 17 MW, respectively.) Recent Power Generation Construction Experience Over the past decade, with the boom of renewable energy construction in North America, Tetra Tech has provided construction s ervices for power plants, totaling over 3,500 MWs of installed capacity. We have provided full EPC, as well as Balance of Plant (BO P) and Construction Management (CM) services to the largest renewable energy companies in the world, including PacifiCorp, EDP Renewables North A merica, Iberdrola Renewables, Acciona Energy, Invenergy, Competitive Power Ventures, Oklahoma Gas and Electric, FirstWind, and many others. We have built projects in diverse and challenging locations ranging from Kodiak Island, Alaska to Lameque Island, in New Brunswi ck, Canada. We have built wind farms in Wyoming, Texas, Oklahoma, New York, Pennsylvania, and Massa chusetts. We have performed CM on wind farms in the Pacific Northwest and the Midwestern US. In addition to wind energy, we have recently provided construction services to h ydroelectric power, bioenergy, and solar power facilities. Recent Energy Waste System Construction Experience Our recent design/ build projects include power plant energy waste systems. The coal ash market is under siege and the Bevill Exemption under scrutiny with the possible promulgation of the USEPA Coal Combustion Residuals (CCR) Rule. These rules have forced US power companies to rethink and re-strategize their business futures to meet burdensome regulatory demands. Our design/build services include disposal pond closure; permitting; environmental and safety plans; preliminary and detail design engineering; Engineering, Procurement, and Construction (EPC); commissioning and testing; civil construction, demolition, utility engineering, and earth moving; impound ments; roadway repair; pipelines and intake structures; water treatment p lants; compressor stations; construction management; and quality assurance/quality control. Recent projects include the Stanton Energy Center Coal Combustion Product Landfill Design/Build Program for the Orla ndo Utilities Commission where Tetra Tech is expanding a coal combustion product landfill in Orlando, Florida, and Fly Ash Landfill Cover Design -Build Services for a confidential client in New Martinsville, West Virginia.  Successfully permitted, licensed, and/or engineered over 100 conventional power plants using a wide variety of fuels: coal, oil, natural gas, syngas, petroleum coke, hydro, biomass, municipal solid waste, and refuse-derived fuel  Successfully completed domestic and international power projects ranging i n size from 5 to 3,200 megawatts (MW)  Provided construction services for renewable energy power plants, totaling over 3,500 MW of installed capacity  The numerous Best Available Control Technology/Lowest Achievable Emission Rate (BACT/LAER) analyses performed by Tetra Tech have led to the development of extensive emission estimation databases acceptable for BACT/LAER demonstrations Tetra Tech is a leading provider of consulting, engineering, remediation, and construction services worldwide. Tetra Tech, Inc. is a publicly traded company with annual revenues in excess of $2.6 billion and more than 13,000 employees in 330 offices, including 3,500 employees in 50 Canadian offices. Phone: +1 (518) 661-5304 Fax: +1 (518) 661-5818 - 2 - Recent Decommissioning and Demolition Expertise We have significant experience in decommissioning and demolition and can be a one-stop contractor for these services. Our full project lifecycle offerings allow us to conduct prior, cultural and environmental assessments to evaluate demolition impacts and deve lop mitigation measures, and document any historic and archaeological resources. Tetra Tech has experience preparing Work Plans, Health & Sa fety Plans, and Quality Control Plans (QCP) along with overseeing all field operations, demolition crews, and onsite subcontractor s to conduct demolition, and partial demolition of buildings, slabs, and structures. Tetra Tech has performed post -demolition surveys, asbestos abatement, demolition, and remediation of storm drain and sanitary sewer lines, including lines within and surro unding buildings and structures. Our goal is to work closely with our clients to ensure all safety precautions and risks are mitigated and that all project deli verables are met – or exceeded. Recent Wind Energy Construction Experience Within the last few years, Tetra Tech has worked on over 200 wind projects (in more than half of the United States), totaling more than 15,000 MW. Of that, over 12,000 MW of wind generation is in operation or scheduled for construction. We have provided support to 20 of the top 25 wind power project developers and owners in the U.S. Tetra Tech is the number one provider of front end services to the U.S. wind industry and also has extensive experience in wind construction. We are providing or have provided construction services to clients on more than 15 projects, totaling more than 1,500 MW. Recent Solar Energy Construction Experience Tetra Tech helps its clients to develop solar projects that are cost - efficient and constructible. We are able to provide this service because our environmental and engineering teams are integrated with our construction team. As a design-build company, we provide the right detail and information in our construction drawings to allow our constructors the necessary flexibility during execution. Tetra Tech has the capability and experience to provide construction drawings for civil site work, structural design for solar foundations, and electrical components for solar energy projects. Our construction experts review the project site and proposed developmental designs in order to ensure that the practicality, cost, and ease of construction are built into the project layout that is ultimately permitted. Our construction experts can assist project developers by providing conceptual stage construction schedules and budgets. Engineer, Procure, Construct (EPC) Tetra Tech provides EPC services to the power industry. In the last several years, Tetra Tech has helped developers finance and install nearly $6 billion of generation assets. Success is achieved through clear communication and integration of the engineering and procurement scopes to support our construction schedule. Success is also supported by Tetra Tech’s strong balance sheet and bank - ability. Upon Notice to Proceed, we form a team of dedicated individuals with construction and project management backgrounds to work with the owner and our engineering and procurement teams to shepherd the preconstruction process. We then mobilize that same crew to manage the project’s safe and timely installation. This implementation model means Tetra Tech carries and man ages the inherent risks associated with such a complex project in every decision at every stage. Through our experience, we have a pragmatic understanding of all the various factors that can affect a power project, along with the data and expertise in the required disciplines. The owner benefits from the single point of contact that facilitates the ease of monitoring the project’s progress, a single contract to administrate, and a fixed contract value that is not affected by changes in the market. Through o ur experience, the EPC model has proven to be an effective and efficient manner to execute a project for all stakeholders. Balance of Plant (BOP) If the client has chosen a design/bid/build implement ation model, Tetra Tech can fully support the client in the role of General Contractor (GC) or Owner’s Engineer (OE). We are happy to individually take on the civil, mechanical, electrical, piping, and equipment setting scopes of work on power projects. With the hands-on role of GC, we provide oversight and management for the multiple trades required to perform the various works—full responsibility for subcontractor performance, contract administration, budget control, and contract compliance. We maintain a safe working environment, provide issue/conflict resolution, as well as oversight and QA on materials and subcontractor procurement. Through our established relationships within the industry, we can confidently stand behind our stated proposal cost. In the role of OE, we advocate on behalf of the client and coordinate with the owner, designers, and contractors so everyone understands each other and maintains a balance of design integrity, cost savings, and construction schedule. Construction Management Construction management services can include full, general contract supervision of subcontractors during the execution of a primary construction contract. It can also include acting as the owner’s representative for on-site monitoring of construction activities. Our EPC experience adds measurable value for our clients in the way we approach construction management. Our approach includes a certified quality program, a proven safety program, strong project controls, consideration of long-lead items in construction scheduling and planning, subcontractor qualification and selection, status reporting, and an effective methodology for managing materials, equipment, and labor. Construction Philosophy Project Management: It is one thing to say you can do something; it is another to deliver. And it is something entirely different to be able to manage, communicate, and instill confidence that you are delivering Construction Services ENERGY | CONVENTIONAL POWER PLANT SERVICES - 4 - CONSTRUCTION SERVICES Health and Safety Planning and Training Health and Safety (H&S) is not just another program at Tetra Tech—it is integral to our culture and incorporated into all facets of our work. We believe all behaviors are manageable on site, and therefore, all incidents are preventable through our tenets, of “Do It Right” and “Zero Incident Performance.” Our past year’s performance has brought us industry recognition as one of the 40 Safest Firms in the Heavy Construction Industry as we approach several million hours worked without a lost time injury. We firmly believe, and demonstrate daily, it is possible to conduct work injury and incident free. Tetra Tech’s H&S program exceeds compliance with United States Occupational Safety and Health Administration (OSHA) and Canadian Provincial Worksafe statutes and jurisdictiona l regulations. Our H&S program has received OSHA VPP status on project-specific bases and cooperates regionally on informal partnerships with OSHA, Canadian Standards Association (CSA), and joint provincial industry safety and health committees. We also wo rk closely with working task groups in Canada and the US, and have been recognized by the U.S. Army Corps of Engineers (USACE), Department of Defense (DoD), and federal agencies for excellence. Additionally, we work with North American trade associations a nd industry groups, such as the American National Standards Institute (ANSI), to drive construction industry safety standards in North America, improving working environments for labor and results for contractors as well. Project-specific, comprehensive, H&S programs are implemented for all project scopes. We maintain detailed procedures for conducting risk assessments and Activity Hazard Analyses to ensure hazards are proactively eliminated or minimized. Project Safety Officers are appointed to coordinate all H&S activities and training. All field employees receive thorough orientation and ongoing training throughout project execution and as conditions change or warrant. Daily Activity Plans incorporate safety planning with work flow and tool box talks performed for further emphasis. Weekly Quality Circle meetings further integrate our tenets to provide a forum in which to review substandard behaviors resulting in near misses of safety or quality, as both are integral to overall success. Risk assessment and hazard identification ultimately become the responsibility of every individual on site in “Shared Vision” and responsibility as all benefit in the results. Quality Assurance/Quality Control (QA/QC) On our projects, managing quality is not one person’s jo b...it is everyone’s job. At Tetra Tech, we believe our success can only be measured by client satisfaction of the quality of our services. We strategically manage quality through planning, execution, and closeout to satisfy the requirements and expectatio ns of our clients, communities (or stakeholders), and (the toughest customer of all) ourselves. Our QA/QC standards are based on ANSI/American Society for Quality (ASQ) E-4 - Specifications and Guidelines for Quality Systems for Environmental Data Collection and Environmental Technology Programs, and International Organization for Standardization (ISO) 9001-2008 programs. Aligned with these QA/QC models, our quality standards are established at the highest levels of management to deliver projects that are w ithin scope, defect-free, on time, within budget, regulation-compliant, and offer the greatest value to our project owners. We administer these standards by dedicating skilled and experienced QA/QC Officers to our projects. The QA/QC Officers implement Tetra Tech’s well-defined Quality Control Program on site, overseeing and measuring it against the performance of the project team. The Officers are responsible for developing and enforcing project-specific QA/QC Plans which meet project requirements. They conduct quality inspections, project quality training orientation sessions, and on site meetings to reinforce QA/QC procedures throughout the construction process. They document and work diligently to resolve any and all quality concerns. They work closely w ith the rest of the project management team to ensure every person working on a Tetra Tech renewable energy project knows what to do, how to do it, and the processes for correction of deficient work to ensure the quality we demand for our clients. Routine project audits are performed by senior quality management staff to ensure the proper implementation of corporate and project procedures. what was promised. Quality project management is a combination of processes, tools, and talented people who understand the full scope of commitment—an integrated schedule with overlapping milestones, fixed budget, and clearly defined deliverables. Tetra Tech employs established tools to provide real-time information for schedule and budget analysis; utilizes proven processes for document control, change management, and project management controls; and prepares comprehensive reports and communications so the client is fully aware of the project status. But it is our project managers, with their practical and reputable experience managing power projects, that make it all happen. Energy Waste System Construction Coal Ash Landfills and Other Related Impoundments Coal ash landfills and ash ponds are unique in their design approach, construction, and construction quality assurance. Tetra Tech has combined success in designing, permitting, constructing, and providing operational support for RCRA Subtitle C and Subtitle D landfills across the country. In anticipation of the USEPA Coal Combustion Rule, Tetra Tech was the first firm to design/build a new Subtitle D ash landfill in the United States. Tetra Tech also has design and design/build experience with the following project types:  Ash Ponds (New)  Ash Pond (Closures)  Ash Remediation  Cut-Off Walls (i.e., soil-bentonite, cement-bentonite, etc.)  Liner System Evaluations and Recommendations  Waste Pond Operations and Maintenance  Sediment Control Systems  Slope Stability Analyses and Corrections  Vertical Landfill Expansions  Water Quality and Water Balance Studies MGP Tetra Tech has assisted numerous utility clients in addressing issues at more than 100 former manufactured gas plant (MGP) sites throughout the United States. We have extensive experience planning, managing, and implementing both front-end remedial investigative work and back-end remedial planning, design, and remedial action work for MGP sites. Our services range from regulatory negotiation, risk assessment, remedial investigation, data management, and feasibility studies, to development of remediation approaches, site restoration, and case closure. Also noteworthy is our expertise in developing and implementing strategies for MGP sites with contaminated sediment concerns, as well as MGP sites that are targeted for redevelopment as part of our clients’ Brownfields initiatives. Our clients’ business and regulatory issues/ concerns regarding MGP sites have changed over time and our approach has evolved to effectively meet client requirements. In the past, emphasis was often placed on innovative investigation methods and extensive site characterization programs. Now, we are more focused on remediation implementation of sediments and Brownfields redevelopment as an integral part of MGP remediation, when possible, and successfully achieving MGP site closures through mechanisms such as development of risk-based cleanup standards, implementation of “common sense” site closure strategies, and limited “hot spot” remediation. With many of our clients facing the challenges of deregulation and increased competition, Tetra Tech is well positioned to assist them in reducing and recovering life cycle costs and providing expert testimony, litigation support, and insurance and rate recovery support. Combining our in-house risk assessment capabilities with our proven investigation, design, and construction capabilities, Tetra Tech offers unique integrated services. This integration allows us to evaluate potential risk issues during ongoing site characterization/ remediation programs. As a result, appropriate interim measures can be implemented, and supplemental sampling can be incorporated into an existing investigation, in a timely fashion. Ultimately, this full-service capability can save the client resources, time, and money. Tetra Tech’s MGP team includes scientists, engineers, and construction personnel. Our scientists continue to identify and implement cost-effective technically sound investigative and analytical techniques, and focus on appropriate and creative application of risk assessment to achieve site closure. We use our substantial modeling capabilities to optimize solutions for our clients. Our engineers are focused on the application of proven and, as appropriate, innovative, cost-effective remedial technologies/solutions, such as bioremediation (e.g., bioslurping), containment systems (e.g., polywalls and capping), advanced ChemOx and “combination” technologies, in -situ remediation, and natural attenuation, in addition to conventional “dig and haul.” Our construction personnel have the capabilities to cost effectively implement selected remedial technologies. Operation Services Key Personnel LEVERAGING KEY PERSONNEL & POWER PLANT CONSTRUCTION EXPERTISE At Tetra Tech, we believe our people are what set us apart. T etra Tech’s construction staff, from our executive leadership to our project managers and site superintendents, has extensive expertise and knowledge in the construction of thermal power plants. Bob Finkle, PE With more than 28 years of experience in the heavy highway and infrastructure industry, Mr. Finkle has served as Tetra Tech Construction’s vice president of operations for the past 14 years. He directs daily operations, provides executive leadership to various corporate divisions, and implements corporate policies and procedures within the company’s organizational structure. Mr. Finkle also ensures compliance with operational goals and provides guidance and direction to division managers, as well as field operation units. His recent oversight of the four-year $94 million Route 17 Parksville Bypass for NYSDOT led to a successful project, despite considerable environmental hurdles on this complex highway infrastructure bypass project. Frank C. Gross Mr. Gross, Executive Vice President and President of Remediation and Construction Management, has 34 years of experience in the power generation industry. Mr. Gross leads Tetra Tech’s focus on program management and construction services, including design-build and design-bid-build services for energy, environmental remediation, infrastructure, heavy civil, military transformation, ports and harbors, and communications projects. Mr. Gross’ career is founded in the Power industry, previously leading Washington Group International’s Power Group, and then becoming the President of the Industrial/ Process Business Unit of URS Corporation’s Washington Division, following an acquisition. Mr. Gross’ experience spans nuclear, fossil- fuel, and thermal power plants with knowledge in steam, gas, and combined cycle turbines. His project experience includes projects such as the Forked River Nuclear Power Station in New Jersey, Holcombe Coal-Fired Power Plant in Kansas, Oklaunion Power Station in Texas, and the Tennessee Valley Authority’s (TVA) Browns Ferry Nuclear Plant in Alabama – the first nuclear power plant to generate more than 1 billion watts of power. John Stanich Mr. Stanich has 45 years of experience in the heavy civil construction industry and currently is the Executive Vice President of Operations for Tetra Tech Construction. In his current role, Mr. Stanich has overseen various critical projects at Tetra Tech, including the New Orleans Levee Projects for the Army Corps of Engineers. He has an acute knowledge of running large projects, managing subcontractors, communicating with Owners, and ensuring compliance and regulations are met for all parties involved. Mr. Stanich previously served as the President of the Heavy Industrial Division of Dick Corporation. Mr. Stanich’s nationwide experience includes building power plants, steel mills, highways, bridges, and industrial and water treatment facilities. In his t enure, Mr. Stanich has been involved in the construction of projects in the power industry including gas turbine power projects, natural gas - fired power plants, resource recovery facilities, and cogeneration facilities. John De Feis Mr. De Feis has 37 years of experience in corporate operations, new company start-ups, construction company acquisitions, program and project management, financial management, procurement, project controls, planning, estimating, contract administration, change management, equipment management, labor relations, performance audits, negotiating and managing contracts for decontamination and demolition, hazardous waste remediation, petrochemical, munitions of explosive concern, government, facilities construction, quarries, transmission lines, wind energy, cogeneration, wind energy and power generation projects for government and commercial clients. Throughout his career, he has worked/managed more than 20 power plant projects, including the Austin Diesel Engines Cogeneration Plant for IBM and a 1200 MW, $1B coal-fired facility for Jacksonville Electric Authority. Scott McManus Mr. McManus works in construction and has more than nine years of experience. His expertise includes the construction and project management of wind power projects. He has managed over 900 MW of wind farm construction and has experience in all phases of the construction cycle, including: design development, geotechnical investigations, estimating, scheduling, subcontract negotiations, project mobilization, development of site safety-plans, site project management, QA/QC implementation, contract and subcontract management, and project closeout activities. Jeff Kracum Mr. Kracum brings 28 years of comprehensive experience in heavy construction (power plants, steel mills, bridges, and water treatment facilities) in a variety of responsible supervisory and management positions. His areas of expertise include equipment installation, piping installation, machinery alignment, structural steel erection, piling, and heavy hauling and rigging. He has managed these activities on a variety of industrial and infrastructure construction projects including power generation facilities, steel mills, water treatment facilities, and bridges. He has managed construction efforts with single project values as high as $280 million. These projects have involved the management of laborers and the management and integration of up to multiple subcontractors on a single project. Key Personnel Floriano Ferreira Mr. Ferreira has more than 14 years of domestic and international experience. His project expertise includes waste-to-energy systems, anaerobic digesters, and bioenergy utilization planning, design, and construction. He has served as a construction manager and project engineer, supporting and managing multiple plant engineering and construction projects throughout his career. Mr. Ferreira has supported the maintenance and monitoring of more than 600 anaerobic digesters installed in several Latin American countries and his project experience includes serving as an operations manager, overseeing a variety of projects, including the construction of nearly 200 new biogas plants. Gary Hartley Mr. Hartley has more than 35 years of multifaceted engineer ing experience in plant environments for various companies. His background includes process, project, and design engineering with an emphasis on the cost-effectiveness, efficiency, operability, and reliability of installations, including boilers. He has be en involved in numerous design projects for various plants including several proposed woody biomass plants. Mark Sustarsic , PE Mr. Sustarsic has more than 34 years of professional experience specializing in project management, project and process engineeri ng, and applications engineering. Throughout his career, he has supported various plant engineering projects and since joining Tetra Tech, has assisted in the design of various biomass and bioenergy projects for planned facilities. In addition, Mr. Sustars ic has supported conceptual design projects for renewable energy facilities utilizing anaerobic digestion. Ronald Frees Mr. Frees is a mechanical engineer with more than 43 years of experience in the design and drafting of mechanical systems for renewable energy, chemical, and steel industries. His experience includes equipment layout, piping design, and piping stress analy ses. He has supported construction cost estimate packages for facilities, including one for bioenergy and performed design for numerous facilities. Mr. Frees’ experience also includes the installation of heat recovery units for boiler houses and boiler installations. Larry Sawchyn, P.Eng. Mr. Sawchyn is a mechanical engineer and has more than 26 years of experience in the management, assessment, upgrading, design, and construction of a wide variety of projects in the water and wastewater industry. He has vast experience in designing several plants including a biowaste recovery plant and wastewater treatment plants. Mr. Sawchyn’s expertise also includes the startup and supply and commissioning of plants. Bill Stonebraker Mr. Stonebraker is an electrical engineer with more than 26 years of professional experience performing electrical and instrumentation design. His responsibilities have included construction specification writing, electrical equipment selection and specification writing, control panel design, electrical classification of process areas, detailing instrument loop diagrams, and installations. He has experience managing projects for plant Process and Instrument Diagrams and Mr. Stonebraker also has experience in supporting renewable energy projects. Project Experience A representative list of project experience – a more comprehensive list is available upon request CLIENT / OWNER STATE PROJECT CONSTRUCTION SERVICES DEVELOPMENT SERVICES OPERATIONS SERVICES Cogentrix CA Quail Brush Dominion VA Virginia City IBM Austin Diesel Engines Cogeneration Plant Jacksonville Electric Authority JEA 1200 MW Plant Florida Power and Light FL St. Lucie 1 and 2 Plants Houston Lighting and Power TX South Texas Project Northeast Utilities Millstone 1 Louisiana Power and Light LA Waterford 3 TVA Watts Bar Plant TVA Brown’s Ferry Taiwan Power Company Chin Shan, Kuosheng, Mannshan Pacific Gas and Electric Trojan Plant Georgia Power GA Vogtle Nuclear Florida Power and Light/JEA St. John’s River Power Park Orlando Utilities Commission FL Stanton Energy Center Design/Build Program PacifiCorp WY Naughton Plant Design and Construction Phase Services PacifiCorp WY Ash Disposal and Clear Water Reservoirs Construction Phase Services Ontario Power Generation ON Remote Emergency Power Generator Manitoba Hydro MB Diesel Generating Capacity Upgrade CLIENT / OWNER STATE PROJECT CONSTRUCTION SERVICES DEVELOPMENT SERVICES OPERATIONS SERVICES Manitoba Hydro MB Shamattawa Generating Station Ontario Power Generation ON Emergency Power Generator Load Bank Access Energy VT Ludlow Biomass Plant Berkshire Power MA Berkshire Constellation MA Mystic Burlington Electric VT McNeil Biomass Plant Constellation MA Fore River Calpine SC Columbia Calpine NY Bethpage Calpine CT Towantic Concord Municipal MA Concord Dominion IL Elwood Dominion IL Kincaid Dominion MA Brayton Point Dominion MA Salem Harbor Dominion VA Altavista Biomass Plant Dominion VA Bremo Dominion VA Hopewell Biomass Plant Dominion VA Southampton Biomass Plant Energy Investors Funds MA Russell FPLE / Nextera US Confidential GDF Suez MA Distrigas Cogen GDF Suez MA Mt. Tom GDF Suez CT Waterbury Indeck Energy NH Alexandria Biomass Plant Indeck Energy IL Elwood Mass Munic Wholesale Electric MA Stony Brook Unit 3 GenOn MA Canal GenOn MA Kendall CLIENT / OWNER STATE PROJECT CONSTRUCTION SERVICES DEVELOPMENT SERVICES OPERATIONS SERVICES Acciona Enegy North America CA Lompoc Wind Energy Cook Inlet Region (CIRI) AD Fire Island Wind Energy CPV Renewable Energy Company OK Keenan Wind Energy EDP NY Maple Ridge Wind Energy EDP NY Marble River Wind Energy Clearwater County ID Proposed Biomass CHP Plant City of Kotzebue AK Proposed Biomass Plant Whitefish School District MT Prop osed Biomass Facility Village of Orleans and Village of Barton VT Proposed Wood -Biomass Electric Plant Confidential Client CA Biodigester Methane Gas Treatment Plant Dominion VA St. Paul Biomass Plant City of Toledo OH Collins Park Solar Energy NextEra Energy Resources CA Genesis Solar Energy Recurrent Energy CA Kaiser Permanente Solar Energy Recurrent Energy CA Sunset Reservoir Solar Energy Appendix B - Letters of Support B1 – KGB B2 – KPU Appendix C – Fuel Invoice Appendix D - Governing Body Resolution Appendix E - Supporting Documentation – Feasibility Studies E1 – Airport Biomass Heating FS Ketchikan Airport Wood Heat Pre-Feasibility Assessment Prepared by: Devany Plentovich Site Visit: June 11, 2012 Report Date: September 10, 2012 Background Dan Bockhurst and Mike Carney with the Ketchikan Borough invited Alaska Energy Authority to Ketchikan to evaluate the potential of heating the Ketchikan Airport Complex with wood heat. Mike Carney escorted Devany Plentovich on a tour of the facility on Monday, June 11 , 2012. Assessment Objectives  Inspect the Ketchikan Airport Facility as a potential candidate for heating with wood.  Evaluate the suitability of the facility for siting a wood-fired boiler.  Estimate the capital costs of a suitable wood-fired system.  Estimate the annual operating and maintenance costs of a wood-fired system  Estimate the potential economic benefits. Current Heating System The current heating system in the main airport complex (32,000 sq. ft.) consists of 2 Cleaver Brooks oil fired boilers installed in 1971. They supply heating and domestic hot water to the facility. According to Mr. Carney, the HVAC system, including the oil-fired boilers, is at the end of its economic life and is scheduled for replacement. Two quotes were received to replace the oil boilers with similar units along with an electric boiler back-up, and the quotes ranged from $700,000 to $800,000. The existing Cleaver Brooks boilers are model CB-100-80 with serial numbers L-55120 and L-55119. The manufacturer has been contacted to identify the design specifications of the existing system, but no information has been received yet. The estimates for this assessment will be based on boilers sized for the annual fuel usage. A more extensive engineering analysis should be completed in the design phase to understand the exact loading needs of the complex. Photo #1 shows the existing boiler room and Cleaver Brooks boilers. Photo 1 – existing boiler room with 1971 Cleaver Brooks Boilers. Current Fuel Usage In the last 2 years, the fuel oil boiler system has used an average of 22,700 gallons of #2 diesel with the following monthly breakdown (based on purchase receipts): Ketchikan Terminal Fuel Usage (gallons) 2010 - 2011 2011 - 2012 July 978.1 914.2 August 1,006.4 1,190.8 September 700.0 905.3 October 1,986.9 2,907.4 November 1,647.1 2,824.0 December 2,225.0 1,593.7 January 3,323.4 3,274.4 February 2,132.2 3,244.3 March 1,857.6 1,261.0 April 2,328.3 2,348.7 May 2,654.3 1,180.4 June 620.8 2,279.0 Total 21,460.1 23,923.2 The Borough is currently paying $2.94 per gallon for #2 diesel. Proposed Heating System Given the high cost of diesel and expected continued escalation, the Ketchikan Borough is interested in investigating other heating options for the airport complex. The Borough has considered electric heating and various other forms of biomass. The local utility, SEAPA, is discouraging the conversion of primary heating needs to electric resistance heating due to the rapid reduction in excess hydro power. Both the Ketchikan Federal Building and the Discovery Building have recently been converted to wood pellet heating. Initial responses from the operation and maintenance personnel on these systems have been positive. The Ketchikan Building has installed an ACT Bioenergy Boiler, and the Discovery Center has installed a Hurst Model. The Discovery Center has encountered a few issues with the infeed system plugging and is working with the manufacturer and pellet supplier to resolve the plugging. As a result of the positive impressions of the operating pellet heating systems and the ease of operations and maintenance, the Ketchikan Borough has asked Alaska Energy Authority to investigate the opportunity of installing similar systems in the airport complex. There appears to be sufficient real estate and structure in the existing boiler room to install a pellet boiler system. The dimensions of the ACT Bioenergy boiler were used for the preliminary analysis. There appears to be ample room for piping tie-ins, air feed, heat exchangers, and pellet conveyors. It is proposed that the pellet silo be located through the southeast wall in the existing parking area. See Photo #2. Photo #2 – proposed location for the pellet silo. The capital estimate for the Ketchikan Airport Pellet Boiler was based on the Brown Elementary School, North Pole, Alaska estimate developed by Paul Weisner, CE2 Engineers. Because the annual amounts of fuel displaced in each project are very similar, the assumption was made that the boiler sizes would be similar. This conservative capital estimate is based on the assumption that the pellet boiler will fit into the existing airport boiler room with no structural changes. The pellet boiler and silo are budgetary quotes from ACT Bioenergy for a 450 kW system. The sizing of the boiler is roughly based on annual fuel displacement and must be re-evaluated with actual building loading requirements. Line items that might not be required for construction in Ketchikan are equipment rentals, room and board for construction crews, and some auxiliary equipment that might not need replacement. It is recommended that this preliminary budget be reviewed and updated by the project manager. Ketchikan Airport Capital Estimate Description Unit Cost Quantity Budget Construction Management $ 20,000 1 $ 20,000 Labor $ 75,000 1 $ 75,000 Pellet Silo and auger $ 18,000 1 $ 18,000 Pellet Foundation $ 5,000 1 $ 5,000 Pellet Boiler - installed in existing building $ 119,000 1 $ 119,000 Demolition of Existing Boilers $ 5,000 1 $ 5,000 Back-up electric heater (360 KW) $ 60,000 1 $ 60,000 Biomass Circulating Pump Assembly $ 4,000 1 $ 4,000 Mixing Valve $ 4,000 1 $ 4,000 Building Circulating Pump Assembly $ 4,000 1 $ 4,000 Hydronic Thermal Expansion Tank $ 5,000 1 $ 5,000 Piping and insulation $ 6,000 1 $ 6,000 Valves and instruments $ 3,500 1 $ 3,500 Pipe hangers $ 1,000 1 $ 1,000 Heat Exchanger $ 7,600 1 $ 7,600 Misc (hardware, room/board/fuel/rent) $ 10,000 1 $ 10,000 Freight $ 30,000 1 $ 30,000 Equipment rental $ 20,000 1 $ 20,000 Electrical $ 15,000 1 $ 15,000 Total $ 412,100 Contingency 15% $ 61,815 Engineering 10% $ 41,210 Grand Total $ 515,125 Pellet Fuel Supply Tongass Forest Enterprises in Ketchikan is the supplier to the Federal Building and the Discovery Center. They have recently started manufacturing pellets with sawmill waste. There are pellet plants in Fairbanks and Delta Junction, and numerous pellet plants in Washington, Oregon, California, Idaho, Montana, Alberta and British Columbia. Sealaska Corporation is importing pellets from the lower 48 to supply the Sealaska Building in Juneau and is investigating the opportunities to supply other pellet users in Southeast. Pinnacle Pellets in Prince Rupert, British Columbia are breaking ground this summer for a large scale pellet export port facility and would be able to easily supply many times the current Alaska pellet demand if current supplies do not remain viable. Pinnacle alone is currently exporting 100,000 tons to Europe out of the Vancouver, BC port. Economic Analysis and Recommendations Assumptions used in the Economic Analysis:  Annual Fuel Usage 22,700 gallons  Current Fuel Oil price $2.94/gallon  Existing Boiler Efficiency 72%  Energy Content of #2 Diesel 138,800 Btu/gallon  Percentage of fuel displacement with new system 100%  Efficiency of Pellet Boiler 80%  Energy Content of Pellets 8000 Btu/lb  Pellet Fuel Price $300/ton  Annual additional maintenance costs $1000  Maintenance labor will utilize existing employees same as current Simple Payback Period Analysis for a Medium Size Pellet Heating System Ketchikan Airport Facility (22,700 gpy, 177 tpy) Fuel oil cost ($ per year @ $2.94 per gallon $66,700 Pellet fuel ($ per year @ $300 per ton) $53,100 Annual Fuel Cost Savings ($) $13,600 Total Investment Costs ($) $250,000 $400,000 $515,000 Simple Payback (yrs)a 19.9 31.8 41.0 a Simple Payback equals Total Investment Costs divided by Annual Fuel Cost Savings Based upon the current fuel prices for wood pellets and #2 diesel, the pellet system will save approximately $13,600 annually over the cost of diesel. Historically, the cost of pellets has been more stable when compared to petroleum-based fuels, so this amount of savings should increase in future years. The simple payback for the capital costs of the pellet system is not stellar based on current fuel oil prices, and the project would not support implementation as a stand-alone replacement. However, the fuel oil boilers are at the end of their useful life and must be replaced. Capital costs for pellets and fuel oil systems are similar, so the fuel savings and potential local fuel supply should be major factors in the decision-making process. The Borough of Ketchikan should consider applying for Feasibility/Conceptual Design, Final Design, and Construction funds through the Renewable Energy Fund grant program – Round 6. Also, evaluating opportunities to reduce the capital costs could greatly improve the economic analysis of the system. The following chart illustrates the sensitive of fuel costs for 3 different scenarios and quantifies the potential savings of the system in high, medium, and low fuel cost scenarios. #2 diesel fuel costs of $4.00 per gallon coupled with the local manufacture of pellets at $250 per ton could result in annual fuel savings of $41,000. Summary of Potential Savings Table 5-3 summarizes the findings thus far: annual fuel oil usage, range of annual fuel oil costs, estimated annual pellet fuel requirement, range of estimated annual pellet fuel costs, and potential gross annual savings for the airport facility. [Note: potential gross annual fuel cost savings do not consider capital costs and non-fuel operation, maintenance and repair (OM&R) costs.] Table 5-3. Estimate of Total Wood Consumption, Comparative Costs and Potential Savings Fuel Oil Used gal/year Annual Fuel Oil Cost (@ $ ___ /gal) Approximate Wood Pellet Requirement a Annual Wood Pellet Cost (@ $ ___ /ton) Potential Gross Annual Fuel Cost Savings ($) FACILITY 3.00/gal 3.50/gal 4.00/gal Wood pellets, MC7, 250/ton 300/ton 350/ton Low Medium High Ketchikan Airport 22,700 66,500 76,000 85,500 177 tons 44,308 53,167 62,031 4,469 22,833 41,192 Assumes 72% boiler efficiency, 80% pellet boiler efficiency, #2 diesel at 138,000 Btu/gal, and pellets at 8000 Btu/lb. BACKGROUND INFORMATION - EVALUATION CRITERIA, IMPLEMENTATION, WOOD HEATING SYSTEMS THIS SECTION HAS BEEN PROVIDED BY DAN PARRENT OF THE US FOREST SERVICE. This report agrees with the approach recommended by the Biomass Energy Resource Center (BERC), which suggests that, “[T]he most cost-effective approach to studying the feasibility for a biomass energy project is to approach the study in stages.” Further, BERC advises “not spending too much time, effort, or money on a full feasibility study before discovering whether the potential project makes basic economic sense” and suggests, “[U]ndertaking a pre-feasibility study . . . a basic assessment, not yet at the engineering level, to determine the project's apparent cost-effectiveness”. [Biomass Energy Resource Center, Montpelier, Vermont. www.biomasscenter.org] Successful Implementation In general, four aspects of project implementation have been important to wood energy projects in the past: 1) a project “champion”, 2) clear identification of a sponsoring entity, 3) dedication of and commitment by facility personnel, and 4) a reliable and consistent supply of fuel. Bulk fuel systems, though automated, generally require some attention on a daily basis, but pellet systems are generally less troublesome than other types of bulk fuel systems. For this report it is assumed that existing maintenance personnel would be trained to operate the system and would be capable of performing routine maintenance as necessary. The forest industry infrastructure in/around Seward is not well-developed and biomass fuels are not readily available in appreciable quantities. For this report, it is assumed that wood pellets would be shipped in from elsewhere in Alaska, the Lower 48 or Canada. Classes of Wood Heating Systems There are, essentially, two classes of wood heating systems: manual cordwood systems and automated “bulk fuel” systems. Cordwood systems are generally appropriate for applications where the maximum heating demand ranges from 100,000 to 1,000,000 Btu per hour, although smaller and larger applications are possible. “Bulk fuel” systems are systems that burn wood chips, sawdust, bark/hog fuel, shavings, pellets, etc. They are generally applicable for situations where the heating demand exceeds 1 million Btu per hour, although local conditions, especially fuel availability, can exert strong influences on the feasibility of a bulk fuel system. Usually, an automated bulk fuel boiler is tied-in directly to the existing oil-fired system. They can be designed to replace 100% of the fuel oil used in the oil-fired boiler, although they are often designed to meet about 90 percent of peak demand load. In either case, the existing oil-fired system would usually remain in place and be available for peak demand or backup in the event of downtime in the wood system. THE NATURE OF WOOD FUELS Wood Fuel Forms and Current Utilization Currently, wood fuels in Ketchikan are generally available in cordwood, chips and pellets. Tongass Forest Enterprises has started manufacturing pellets with sawmill waste. Chips are also available from the same source. There are pellet plants in Fairbanks and Delta Junction, and numerous pellet plants in Washington, Oregon, California, Idaho, Montana, Alberta and British Columbia. Sealaska Corporation is importing pellets from the lower 48. Pinnacle Pellets in Prince Rupert, British Columbia are breaking ground this summer for a large scale pellet export port facility and would be able to easily supply many times the current Alaska pellet demand if current supplies do not remain viable. Pinnacle alone is currently exporting 100,000 tons to Europe out of the Vancouver, BC port. Pinnacle has expressed support for increasing the pellet demand in Alaska and has asked a few questions about opportunities for a Pinnacle mill in Alaska. Heating Value of Wood Wood is a unique fuel whose heating value is variable, depending on moisture content, species of wood and other factors. There are also several recognized heating values: high heating value (HHV), gross heating value (GHV), and delivered heating value (DHV) that may be assigned to wood at various stages in the calculations. For this report, generic wood pellets with a HHV of 8,602 Btu per bone-dry pound (MC0) are used as the benchmark. The GHV at 7% moisture content (MC7) is 8,000 Btu/lb or 16 million Btu per ton. DHV, which is a function of boiler efficiency (assumed to be 80%), is 12.8 million Btu per ton. The delivered heating value of 1 ton of generic wood pellets (MC7) equals the delivered heating value of 119.4 gallons of #1 fuel oil when both the wood and oil are burned at 80% conversion efficiency. WOOD-FUELED HEATING SYSTEMS Low Efficiency Cordwood Boilers This section omitted. High Efficiency Low Emission Cordwood Boilers This section omitted. Bulk Fuel Boiler Systems Industrial bulk fuel systems are generally efficient and meet typical federal and state air quality standards. They have been around for a long time and there is little new technological ground to break when installing one. Efficient bulk fuel boilers typically convert 70 to 80+ percent of the energy in the wood fuel to hot water or low pressure steam when the fuel moisture content is 40 percent (MC40) or less. Most boiler vendors provide systems that can burn various bulk fuels (wood chips, sawdust, wood pellets and hog fuel), but each system, generally, has to be designed around the predominant fuel form. A system designed to burn clean sawmill chips will not necessarily operate well on a diet of hogged fuel, for example. Large commercial pellet boilers are a fairly new addition to the alternatives available to institutional facility operators. While most existing bulk fuel designs can be adapted to burn pellets, there are not many systems that have been designed specifically for pellets, and there only a few North American pellet boiler manufacturers or distributors. European firms have been building high efficiency pellet boilers for years and that technology is just beginning to find its way into the U.S. market. Pellets are a uniform fuel manufactured to consistent specifications and are nearly universally interchangeable. ‘Combination’ or multi-fuel systems capable of burning pellets and chips are possible, but with some fairly strict limitations. Table 4-1 presents a partial list of bulk fuel boiler system vendors. Table 4-1. Bulk Fuel Boiler System Vendors Decton Iron Works, Inc Butler, WI (800) 246-1478 www.decton.com New Horizon Corp. Sutton, WV (877) 202-5070 www.newhorizoncorp.com Messersmith Manufacturing, Inc. Bark River, MI (906) 466-9010 www.burnchips.com JMR Industrial Contractors Columbus, MS (662) 240-1247 www.jmric.com Chiptec Wood Energy Systems South Burlington, VT (800) 244-4146 www.chiptec.com Advanced Climate Technologies, LLC Schenectady, NY (518) 377-2349 www.actbioenergy.com Note: Listing of any manufacturer, distributor or service provider does not constitute an endorsement. Bulk fuel systems are available in a range of sizes between 300,000 and 60,000,000 Btu/hr. However, the majority of the installations range from about 1 MMBtu/hr to 20 MMBtu/hr. Bulk fuel systems with their automated storage and fuel handling conveyances are generally not cost-effective for small applications. Large energy consumers (i.e., consuming at least 40,000 gallons of fuel oil per year) have the best potential for installing chip-fired boilers. Pellet-fired systems, with lower initial costs than chip-fired systems, are fairly scalable. They can be used in applications ranging from residential to industrial. However, given the higher cost of pellets versus other bulk fuels, economic returns are more sensitive to the price of the fossil fuel alternative. For pellets, there are several delivery options. Bulk pellets can be delivered in a self-unloading tractor- trailer van, a shipping container attached to a dump body, or a specialized delivery truck equipped with an auger-elevator or pneumatic delivery system. On-site storage and the delivery system must be compatible, and storage capacity should be 1½ to 2 times greater than the delivery truck’s capacity. For destinations in Alaska, additional consideration should also be given to the barge or train delivery schedule(s). (NOTE: pellets must be protected from rain, snow, sea spray, etc. at all times. Pellets that get wet deteriorate quickly.) There are several bulk fuel boilers installed in industrial applications in Alaska, but in recent years several have been installed in institutional situations. The most recent were installed at the Tok School in Tok, Delta School in Delta Junction, and Sealaska Corp. office building in downtown Juneau; both in 2010. A 3.6 MMBtu/hr pellet-fired system is under construction at the U.S. Coast Guard base in Sitka. This system will replace more than 100,000 gallons of fuel oil per year. Two more have recently been installed in Ketchikan; one at the Forest Service Discovery Center and the other at the Federal Building. A chip-fired system has been heating the schools and pool in Craig, AK since 2008. It is similar in size to boilers installed in several Montana schools. SELECTING THE APPROPRIATE SYSTEM Selecting the appropriate heating system is, primarily, a function of heating demand. It is generally not feasible to install automated bulk fuel systems in/at small facilities, and it is likely to be impractical to install cordwood boilers at very large facilities. Other than demand, system choice can be limited by fuel availability, fuel form, labor, financial resources, and limitations of the site. The selection of a wood-fueled heating system has an impact on fuel economy. Potential savings in fuel costs must be weighed against initial investment costs and ongoing operating, maintenance and repair (OM&R) costs. Wood system costs include the initial capital costs of purchasing and installing the equipment, non-capital costs (engineering, permitting, etc.), the cost of the fuel storage building and boiler building (if required), the financial burden associated with loan interest, the fuel cost, and the other costs associated with operating and maintaining the heating system, especially labor. Comparative Costs of Fuels Table 5-1 compares the cost of #1 fuel oil to generic wood pellets (MC7). In order to make reasonable comparisons, costs are provided on a “per million Btu” (MMBtu) basis. Table 5-1. Comparative Cost of Fuel Oil vs. Wood Pellets FUEL HHV (Btu) GHV (Btu) Conversion Efficiency DHV (Btu) Price per unit ($) Cost per MMBtu (DHV, ($)) Fuel oil, #1, (per 1 gallon) 134,000 134,000 80% 107,200 3.50/gal 32.65 4.00 37.31 4.50 41.98 Wood pellets (per 1 ton, MC7) 17.2 million 16.0 million 80% 12.8 million 250/ton 19.53 300 23.44 350 27.34 Cost per MMBtu Sensitivity – Pellets Figure 5-1 illustrates the relationship between the price of wood pellets (MC7) and the cost of delivered heat, (the slanted line). For each $10 per ton increase in the price of pellets, the cost per million Btu increases by about $0.78. The chart assumes that the pellet boiler converts 80% of the GHV energy in the wood to useful heat and that fuel oil is converted to heat at 80% efficiency. The dashed lines represent #1 fuel oil at $3.50, $4.00 and $4.50 per gallon ($32.65, $37.31 and $41.98 per million Btu respectively). At high efficiency, heat from pellets (MC7) at $477.60 per ton is equal to the cost of #1 fuel oil at $4.00 per gallon, (i.e., $37.31 per MMBtu), before considering the investment and OM&R costs. At 80% efficiency and $300/ton, an efficient pellet boiler will deliver heat at about 63% of the cost of #1 fuel oil at $4.00 per gallon ($23.44 versus $37.31 per MMBtu), before considering the cost of the equipment and OM&R. Figure 5-1 shows that, at a given efficiency, savings increase significantly with decreases in the price of pellets and/or with increases in the price of fuel oil. Fuel Oil at $4.50 per gallon Fuel Oil at $4.00 per gallon Fuel Oil at $3.50 per gallon Figure 5-1. Effect of Pellet Price on Cost of Delivere d Heat E2 – SD Biomass Heating FS Pre-Feasibility Assessment for Integration of Wood-Fired Heating Systems Final Report July 24, 2012 Ketchikan Gateway Borough School District Ketchikan High School Ketchikan, Alaska Presented by CTA Architects Engineers Nick Salmon & Nathan Ratz Lars Construction Management Services Rex Goolsby For Ketchikan Gateway Borough School Ketchikan Indian Association In partnership with Fairbanks Economic Development Corporation Alaska Wood Energy Development Task Group Funded by Alaska Energy Authority and U.S. Forest Service 306 W. Railroad, Suite 104 Missoula, MT 59802 406.728.9522 www.ctagroup.com CTA Project: FEDC_KETCHCRAIG_KHS Pre-Feasibility Assessment for Ketchikan High School Integration of Wood-Fired Heating Systems Ketchikan, Alaska CTA Architects Engineers i July 24, 2012 TABLE OF CONTENTS 1.0 Executive Summary ................................................................................................... 1 2.0 Introduction ............................................................................................................... 3 3.0 Existing Building Systems.......................................................................................... 3 4.0 Energy Use ............................................................................................................... 3 5.0 Biomass Boiler Size ................................................................................................... 3 6.0 Wood Fuel Use .......................................................................................................... 4 7.0 Boiler Plant Location and Site Access ....................................................................... 5 8.0 Integration with Existing Heating Systems ................................................................. 5 9.0 Air Quality Permits ..................................................................................................... 5 10.0 Wood Heating Options .............................................................................................. 6 11.0 Estimated Costs ........................................................................................................ 6 12.0 Economic Analysis Assumptions ............................................................................... 6 13.0 Results of Evaluation ................................................................................................. 7 14.0 Project Funding ......................................................................................................... 7 15.0 Summary ................................................................................................................... 8 16.0 Recommended Action ............................................................................................... 8 Appendixes Appendix A: Preliminary Estimates of Probable Cost .................................................. 1 page Appendix B: Cash Flow Analysis ............................................................................... 2 pages Appendix C: Site Plan ................................................................................................. 1 page Appendix D: Air Quality Report ............................................................................... 11 pages Appendix E: Wood Fired Heating Technologies ........................................................ 3 pages Pre-Feasibility Assessment for Ketchikan High School Integration of Wood-Fired Heating Systems Ketchikan, Alaska CTA Architects Engineers Page 1 of 7 July 24, 2012 1.0 Executive Summary The following assessment was commissioned to determine the preliminary technical and economic feasibility of integrating a wood fired heating system at the Ketchikan High School in Ketchikan, Alaska. The following tables summarize the current fuel use and the potential wood fuel use: Table 1.1 - Annual Fuel Use Summary Fuel Avg. Use Current Annual Facility Name Type (Gallons) Cost/Gal Cost High School Fuel Oil 127,900 $3.70 $473,230 Table 1.2 - Annual Wood Fuel Use Summary Chipped/ Fuel Wood Ground Oil Pellets Wood (Gallons) (Tons) (Tons) High School 127,900 1049.3 1715.9 Note: Wood fuel use assumes offsetting 85% of the current energy use. Due to the large volume of wood needed to heat the building, pellet and chipped/ground fuel boilers were evaluated and cord wood systems were not considered. The options reviewed were as follows: Chipped/Ground Wood Boiler Options: A.1: A freestanding boiler building with interior wood storage. Wood Pellet Boiler Options: B.1: A freestanding boiler building with adjacent free standing pellet silo. The following table summarizes the economic evaluation for each option: Table 1.3 - Economic Evaluation Summary Ketchikan High School Biomass Heating System Year 1 NPV NPV 20 Yr 30 Yr Project Operating 30 yr 20 yr B/C B/C ACF ACF YR Cost Savings at 3% at 3% Ratio Ratio YR 20 YR 30 ACF=PC A.1 $1,793,000 $212,455 $10,179,110 $5,726,532 3.19 5.68 $8,187,188 $17,745,555 8 B.1 $1,400,000 $80,164 $6,373,815 $3,213,382 2.30 4.55 $4,694,187 $11,496,899 11 Ketchikan Gateway Borough School High School appears to be a good candidate for the use of a wood biomass heating systems. With the current economic assumptions and the current fuel use this wood chip boiler option has a very strong 20 year B/C ratio of 3.9, and the wood pellet boiler a strong 20 year B/C ratio of 2.3. Pre-Feasibility Assessment for Ketchikan High School Integration of Wood-Fired Heating Systems Ketchikan, Alaska CTA Architects Engineers Page 2 of 8 July 24, 2012 Because of the site constraints and air quality issues, the pellet boiler system would be recommended over the chip system. Pre-Feasibility Assessment for Ketchikan High School Integration of Wood-Fired Heating Systems Ketchikan, Alaska CTA Architects Engineers Page 3 of 8 July 24, 2012 2.0 Introduction The following assessment was commissioned to determine the preliminary technical and economic feasibility of integrating a wood fired heating system at the Ketchikan High School in Ketchikan, Alaska. 3.0 Existing Building Systems The Ketchikan High School is a steel and concrete framed building originally constructed in 1953 and expanded and remodeled extensively in mid 1990’s. The facility is approximately 110,000 square feet and is heated by one 3,770,000 Btu/hr output hot water boiler and two 4,070,000 Btu/hr output hot water boilers. Domestic hot water is provided by three 120 gallon indirect water heaters using the boiler water as a heating source. These domestic water heaters then feed a single 1,500 gallon storage tank. The existing boilers are original to the renovation work in the mid 1990’s and are in good condition. Most of the heating system infrastructure was also updated in the mid 1990’s and is in good condition. Facilities Dropped from Feasibility Study No facilities were dropped from the feasibility study. Facilities Added to Feasibility Study No facilities were added to the feasibility study. 4.0 Energy Use Fuel oil bills for the facilities were provided. The following table summarizes the data: Table 4.1 - Annual Fuel Use Summary Fuel Avg. Use Current Annual Facility Name Type (Gallons) Cost/Gal Cost High School Fuel Oil 127,900 $3.70 $473,230 Electrical energy consumption will increase with the installation of the wood fired boiler system because of the power needed for the biomass boiler components such as augers, conveyors, draft fans, etc. and the additional pumps needed to integrate into the existing heating systems. The cash flow analysis accounts for the additional electrical energy consumption and reduces the annual savings accordingly. 5.0 Biomass Boiler Size The following table summarized the connected load of fuel fired boilers: Table 5.1 - Connected Boiler Load Summary Likely Peak System Output Load Peak MBH Factor MBH Gateway Borough School Boiler 1 Fuel Oil 3770 0.65 2451 Boiler 2 Fuel Oil 4070 0.65 2646 Boiler 3 Fuel Oil 4070 0.65 2646 Total 11910 7742 Pre-Feasibility Assessment for Ketchikan High School Integration of Wood-Fired Heating Systems Ketchikan, Alaska CTA Architects Engineers Page 4 of 8 July 24, 2012 Typically a wood heating system is sized to meet approximately 85% of the typical annual heating energy use of the building. The existing heating boilers would be used for the other 15% of the time during peak heating conditions, during times when the biomass boiler is down for servicing, and during swing months when only a few hours of heating each day are required. Recent energy models have found that a boiler sized at 50% to 60% of the building peak load will typically accommodate 85% of the boiler run hours. Table 5.2 - Proposed Biomass Boiler Size Likely Biomass System Biomass Boiler Peak Boiler Size MBH Factor MBH High School 7742 0.6 4645 6.0 Wood Fuel Use The types of wood fuel available in the area include wood pellets and chipped/ground wood fuel. The estimated amount of wood fuel needed for each wood fuel type for each building was calculated and is listed below: Table 6.1 - Annual Wood Fuel Use Summary Chipped/ Fuel Wood Ground Oil Pellets Wood (Gallons) (Tons) (Tons) High School 127,900 1049.3 1715.9 Note: Wood fuel use assumes offsetting 85% of the current energy use. The amount of wood fuel shown in the table is for offsetting 85% of the total fuel oil use. The moisture content of the wood fuels and the overall wood burning system efficiencies were accounted for in these calculations. The existing fuel oil boilers were assumed to be 80% efficient. Wood pellets were assumed to be 7% MC with a system efficiency of 70%. Chipped/ground fuel was assumed to be 40% MC with a system efficiency of 65%. As can be seen from the potential wood fuel use, the volume of wood is such that a cord wood system is not really practical and further analysis will look at pellet and chipped/ground fuel options. There are sawmills and active logging operations in the region. Tongass Forest Enterprises has stared up a pellet plant in Ketchikan and is providing pellets to Sealaska. Pellets are also available from plants in British Columbia, Washington, and Oregon. There appears to be a sufficient available supply to service the boiler plant. The unit fuel costs for fuel oil and the different fuel types were calculated and equalized to dollars per million Btu ($/MMBtu) to allow for direct comparison. The Delivered $/MMBtu is the cost of the fuel based on what is actually delivered to the heating system, which includes all the inefficiencies of the different systems. The Gross $/MMBtu is the cost of the fuel based on raw fuel, or the higher heating value and does not account for any Pre-Feasibility Assessment for Ketchikan High School Integration of Wood-Fired Heating Systems Ketchikan, Alaska CTA Architects Engineers Page 5 of 8 July 24, 2012 system inefficiencies. The following table summarizes the equalized fuel costs at different fuel unit costs: Table 6.2 - Unit Fuel Costs Equalized to $/MMBtu Net Gross System System Delivered Gross Fuel Type Units Btu/unit Efficiency Btu/unit $/unit $/MMBtu $/MMBtu Fuel Oil gal 138500 0.8 110800 $3.50 $31.59 $25.27 $4.00 $36.10 $28.88 $4.50 $40.61 $32.49 Pellets tons 16400000 0.7 11480000 $300.00 $26.13 $18.29 $350.00 $30.49 $21.34 $400.00 $34.84 $24.39 Chips tons 10800000 0.65 7020000 $75.00 $10.68 $6.94 $100.00 $14.25 $9.26 $125.00 $17.81 $11.57 7.0 Boiler Plant Location and Site Access The boiler room is not large enough to accommodate a new wood fired boiler so a new stand-alone plant would be required. The best location for a plant would be just northwest of the boiler room, adjacent to the tennis courts to the north. Any type of biomass boiler plant will require access by delivery vehicles, typically 40 foot long vans or some similar type of trailer. The school is built on a steep site, limiting vehicle access and space for constructing wood heating systems. A wood pellet boiler with adjacent silos appear to the most appropriate solution. Wood pellet fuel would need to be conveyed into the silo utilizing a pneumatic blower or grain auger. A pneumatic blower allows greater flexibility in the relationship between the delivery vehicle and silo. 8.0 Integration with Existing Heating System Integration of a wood fired boiler system would be relatively straight forward in the building. The field visit confirmed the location of the boiler room in order to identify an approximate point of connection from a biomass boiler to the existing building. Piping from the biomass boiler plant would be run below ground with pre-insulated pipe and extended to the face of each building, and extended up the exterior surface of the school in order to penetrate exterior wall into the boiler room. Once the hot water supply and return piping enters the existing boiler room it would be connected to existing supply and return pipes in appropriate locations in order to utilize existing pumping systems within each building. 9.0 Air Quality Permits Resource System Group has done a preliminary review of potential air quality issues in the area. Southeast Alaska is has meteorological conditions that can create thermal inversions, which are unfavorable for the dispersion of emissions. The proposed boiler size at this location is small enough, that the boiler is not likely to require any State or Federal permits. Since this plant will be located at a school and is also located in the populated area, the air quality will likely be scrutinized and modeling of emissions, the Pre-Feasibility Assessment for Ketchikan High School Integration of Wood-Fired Heating Systems Ketchikan, Alaska CTA Architects Engineers Page 6 of 8 July 24, 2012 stack height, and of air pollution control devices is recommended. RSG also recommends pellet systems over chip systems for the ability of pellets to burn cleaner than chip systems. See the air quality memo in Appendix D. 10.0 Wood Heating Options The technologies available to produce heating energy from wood based biomass are varied in their approach, but largely can be separated into three types of heating plants: cord wood, wood pellet and wood chip/ground wood fueled. See Appendix E for these summaries. Due to the large volume of wood needed to heat the building, pellet and chipped/ground fuel boilers were evaluated and cord wood systems were not considered. The options reviewed were as follows: Chipped/Ground Wood Boiler Options: A.1: A freestanding boiler building with interior wood storage. Wood Pellet Boiler Options: B.1: A freestanding boiler building with adjacent free standing pellet silo. 11.0 Estimated Costs The total project costs are at a preliminary design level and are based on RS Means and recent biomass project bid data. The estimates are shown in the appendix. These costs are conservative and if a deeper level feasibility analysis is undertaken and/or further design occurs, the costs may be able to be reduced. 12.0 Economic Analysis Assumptions The cash flow analysis assumes fuel oil at $3.70/gal, electricity at $0.10/kwh, wood pellets delivered at $300/ton, and ground/chipped wood fuel delivered at $100/ton. The fuel oil and electricity costs were based on utility bills. Pellet costs were obtained from Tongass Forest Enterprises. It is assumed that the wood boiler would supplant 85% of the estimated heating use, and the existing heating systems would heat the remaining 15%. Each option assumes the total project can be funded with grants and non obligated capital money. The following inflation rates were used: O&M - 2%, Fossil Fuel – 5%, Wood Fuel – 3%, Discount Rate for NPV calculation – 3%. The fossil fuel inflation rate is based on the DOE EIA website. DOE is projecting a slight plateau with a long term inflation of approximately 5%. As a point of comparison, oil prices have increased at an annual rate of over 8% since 2001. The analysis also accounts for additional electrical energy required for the wood fired boiler system as well as the system pumps to distribute heating hot water to the buildings. Wood fired boiler systems also will require more maintenance, and these additional maintenance costs are also factored into the analysis. Pre-Feasibility Assessment for Ketchikan High School Integration of Wood-Fired Heating Systems Ketchikan, Alaska CTA Architects Engineers Page 7 of 8 July 24, 2012 13.0 Results of Evaluation The following table summarizes the economic evaluation for each option: Table 13.1 - Economic Evaluation Summary Ketchikan High School Biomass Heating System Year 1 NPV NPV 20 Yr 30 Yr Project Operating 30 yr 20 yr B/C B/C ACF ACF YR Cost Savings at 3% at 3% Ratio Ratio YR 20 YR 30 ACF=PC A.1 $1,793,000 $212,455 $10,179,110 $5,726,532 3.19 5.68 $8,187,188 $17,745,555 8 B.1 $1,400,000 $80,164 $6,373,815 $3,213,382 2.30 4.55 $4,694,187 $11,496,899 11 The benefit to cost ratio (B/C) takes the net present value (NPV) of the net energy savings and divides it by the construction cost of the project. A B/C ratio greater than or equal to 1.0 indicates an economically advantageous project. Accumulated cash flow (ACF) is another evaluation measure that is calculated in this report and is similar to simple payback with the exception that accumulated cash flow takes the cost of financing and fuel escalation into account. For many building owners, having the accumulated cash flow equal the project cost within 15 years is considered necessary for implementation. If the accumulated cash flow equals project cost in 20 years or more, that indicates a challenged project. Positive accumulated cash flow should also be considered an avoided cost as opposed to a pure savings. Because this project involves as school, a life cycle cost analysis following the requirements of the State of Alaska Department of Education & Early Development was completed and the data is summarized in the following table: Table 13.2 Life Cycle Costs of Project Alternatives Alternate #1 Alternate #2 Existing Boiler Wood Pellet Boiler Initial Investment Cost $0 $1,400,000 Operations Cost $11,098,820 $6,160,797 Maintenance & Repair Cost $0 $56,725 Replacement Cost $0 $0 Residual Value $0 $0 Total Life Cycle Cost $11,098,820 $7,617,523 This life cycle cost analysis also indicates a pellet boiler system is a strong project. 14.0 Project Funding The Ketchikan Gateway Borough School District may pursue a biomass project grant from the Alaska Energy Authority. Pre-Feasibility Assessment for Ketchikan High School Integration of Wood-Fired Heating Systems Ketchikan, Alaska CTA Architects Engineers Page 8 of 8 July 24, 2012 The Ketchikan Gateway Borough School District could also enter into a performance contract for the project. Companies such as Siemens, McKinstry, Johnson Controls and Chevron have expressed an interest in participating in funding projects of all sizes throughout Alaska. This allows the facility owner to pay for the project entirely from the guaranteed energy savings, and to minimize the project funds required to initiate the project. The scope of the project may be expanded to include additional energy conservation measures such as roof and wall insulation and upgrading mechanical systems. 15.0 Summary Ketchikan Gateway Borough School High School appears to be a good candidate for the use of a wood biomass heating systems. With the current economic assumptions and the current fuel use this wood chip boiler option has a very strong 20 year B/C ratio of 3.9, and the wood pellet boiler a strong 20 year B/C ratio of 2.3. Because of the site constraints and air quality issues, the pellet boiler system would be recommended over the chip system. Additional sensitivity analysis was performed on the wood pellet option. The cost of the wood fuel was varied, and the 20 year B/C ratio exceeds 1.0 up to $385/ton. 16.0 Recommended Actions Most grant programs will likely require a full feasibility assessment. A full assessment would provide more detail on the air quality issues, wood fuel resources, and a schematic design of the boiler systems and system integration to obtain more accurate costs. It is recommended that the best location for a boiler plant be reviewed in more detail. A boiler plant located further east than shown on the drawing may be avoid taking up parking spots, but a portion of the tennis court may be lost to accommodate the plant. The route and method of delivering pellets needs to be investigated further as this will affect the best location for the boiler plant as well. APPENDIX A Preliminary Estimates of Probable Cost Preliminary Estimates of Probable Cost Ketchikan High School Biomass Heating Options Ketchikan, AK Option A.1 Wood Chip Chip Storage/ Boiler Building:$270,000 Wood Heating & Wood Handling System: $325,000 Stack/Air Pollution Control Device: $180,000 Mechanical/Electrical within Boiler Building: $150,000 Underground Piping $25,000 KHS Integration $56,000 Subtotal:$1,006,000 30% Remote Factor $301,800 Subtotal:$1,307,800 Design Fees, Building Permit, Miscellaneous Expenses 15%: $196,170 Subtotal:$1,503,970 15% Contingency:$225,596 Total Project Costs 1,729,566$ Option B.1 Pellet Chip Storage/ Boiler Building:$270,000 Wood Heating & Wood Handling System: $265,000 Stack/Air Pollution Control Device:$50,000 Mechanical/Electrical within Boiler Building: $150,000 Underground Piping $25,000 KHS Integration $56,000 Subtotal:$816,000 30% Remote Factor $244,800 Subtotal:$1,060,800 Design Fees, Building Permit, Miscellaneous Expenses 15%: $159,120 Subtotal:$1,219,920 15% Contingency:$182,988 Total Project Costs 1,402,908$ APPENDIX B Cash Flow Analysis Ketchikan High SchoolOption A.1Ketchikan, AKWood Chip Boiler Date: July 24, 2012 Analyst: CTA Architects Engineers - Nick Salmon & Nathan Ratz EXISTING CONDITIONSKHSTotalExisting Fuel Type:Fuel Oil Fuel Oil Fuel Oil Fuel OilFuel Units:gal gal gal galCurrent Fuel Unit Cost:$3.70 $3.60 $3.60 $3.60 Estimated Average Annual Fuel Usage:127,900127,900Annual Heating Costs:$473,230 $0 $0 $0 $473,230ENERGY CONVERSION (to 1,000,000 Btu; or 1 dkt)Fuel Heating Value (Btu/unit of fuel):138500 138500 138500 138500Current Annual Fuel Volume (Btu):17,714,150,000 0 0 0Assumed efficiency of existing heating system (%):80% 80% 80% 80% Net Annual Energy Produced (Btu):14,171,320,000 0 0 0 14,171,320,000WOOD FUEL COSTWood Chips$/ton: $100.00Assumed efficiency of wood heating system (%): 65% PROJECTED WOOD FUEL USAGEEstimated Btu content of wood fuel (Btu/lb) - Assumed 40% MC 5400 Tons of wood fuel to supplant net equivalent of 100% annual heating load.2,019Tons of wood fuel to supplant net equivalent of 85% annual heating load.1,71625 ton chip van loads to supplant net equivalent of 85% annual heating load.69 Project Capital Cost-$1,730,000 Project Financing InformationPercent Financed0.0%Est. Pwr Use 45000 kWh Type Hr/Wk Wk/Yr Total Hr Wage/Hr TotalAmount Financed$0 Elec Rate $0.280 /kWh Biomass System 4.0 40 160 $20.00 $3,200Amount of Grants$1,730,000 Other 0.0 40 0 $20.00 $01st 2 Year Learning 3.0 40 120 $20.00 $2,400Interest Rate5.00%Term10Annual Finance Cost (years)$0 8.1 years Net Benefit B/C Ratio$10,248,706 $8,518,706 5.92$5,796,128 $4,066,1283.35Year Accumulated Cash Flow > 0#N/AYear Accumulated Cash Flow > Project Capital Cost7Inflation FactorsO&M Inflation Rate2.0%Fossil Fuel Inflation Rate5.0%Wood Fuel Inflation Rate3.0%Electricity Inflation Rate3.0%Discount Rate for Net Present Value Calculation 3.0%Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year YearCash flow Descriptions Unit Costs HeatingSource ProportionAnnual Heating Source VolumesHeating Units 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 20 25 30Existing Heating System Operating CostsDisplaced heating costs $3.70 127900 gal $473,230 $496,892 $521,736 $547,823 $575,214 $603,975 $634,173 $665,882 $699,176 $734,135 $770,842$809,384 $849,853 $892,346 $936,963 $1,195,829 $1,526,214 $1,947,879Displaced heating costs $3.600 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Displaced heating costs $3.600 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Displaced heating costs $3.600 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Biomass System Operating CostsWood Fuel ($/ton, delivered to boiler site)$100.00 85% 1716 tons $171,590 $176,738 $182,040 $187,501 $193,126 $198,920 $204,888 $211,034 $217,365 $223,886 $230,603 $237,521 $244,646 $251,986 $259,545 $300,884 $348,807 $404,363Small load existing fuel$3.70 15% 19185 gal $70,985 $74,534 $78,260 $82,173 $86,282$90,596 $95,126 $99,882 $104,876 $110,120 $115,626 $121,408 $127,478 $133,852 $140,544 $179,374 $228,932 $292,182Small load existing fuel$3.60 15% 0 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Small load existing fuel$3.60 15% 0 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Small load existing fuel$3.60 15% 0 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Additional Operation and Maintenance Costs$3,200 $3,264 $3,329 $3,396 $3,464 $3,533 $3,604 $3,676 $3,749 $3,824 $3,901 $3,979 $4,058 $4,140 $4,222 $4,662 $5,147$5,683Additional Operation and Maintenance Costs First 2 years$2,400 $2,448Additional Electrical Cost $0.280$12,600 $12,978 $13,367 $13,768 $14,181 $14,607 $15,045 $15,496 $15,961 $16,440 $16,933 $17,441 $17,965 $18,504 $19,059 $22,094 $25,613 $29,693Annual Operating Cost Savings$212,455$226,930$244,739$260,984$278,161$296,319$315,511$335,793$357,224$379,864$403,779$429,035$455,706$483,865$513,592$688,814$917,714$1,215,958Financed Project Costs - Principal and Interest0000000000 Displaced System Replacement Costs (year one only)0Net Annual Cash Flow212,455 226,930 244,739 260,984 278,161 296,319 315,511 335,793 357,224 379,864 403,779 429,035 455,706 483,865 513,592 688,814 917,714 1,215,958Accumulated Cash Flow212,455 439,385 684,125 945,109 1,223,269 1,519,588 1,835,099 2,170,893 2,528,117 2,907,981 3,311,760 3,740,795 4,196,501 4,680,366 5,193,958 8,268,776 ######### 17,827,143Additional Power UseAdditional MaintenanceSimple Payback: Total Project Cost/Year One Operating Cost Savings:Net Present Value (30 year analysis):Net Present Value (20 year analysis): Ketchikan High SchoolOption B.1Ketchikan, AKWood Pellet Boiler Date: July 24, 2012 Analyst: CTA Architects Engineers - Nick Salmon & Nathan Ratz EXISTING CONDITIONSKHSTotalExisting Fuel Type:Fuel Oil Fuel Oil Fuel Oil Fuel OilFuel Units:gal gal gal galCurrent Fuel Unit Cost:$3.70 $3.70 $3.70 $3.70 Estimated Average Annual Fuel Usage:127,900127,900Annual Heating Costs:$473,230 $0 $0 $0 $473,230ENERGY CONVERSION (to 1,000,000 Btu; or 1 dkt)Fuel Heating Value (Btu/unit of fuel):138500 138500 138500 138500Current Annual Fuel Volume (Btu):17,714,150,000 0 0 0Assumed efficiency of existing heating system (%):80% 80% 80% 80% Net Annual Energy Produced (Btu):14,171,320,000 0 0 0 14,171,320,000WOOD FUEL COSTWood Pellets$/ton: $300.00Assumed efficiency of wood heating system (%): 70% PROJECTED WOOD FUEL USAGEEstimated Btu content of wood fuel (Btu/lb) - Assumed 7% MC 8200 Tons of wood fuel to supplant net equivalent of 100% annual heating load.1,234Tons of wood fuel to supplant net equivalent of 85% annual heating load.1,04925 ton chip van loads to supplant net equivalent of 85% annual heating load.42 Project Capital Cost-$1,400,000 Project Financing InformationPercent Financed0.0%Est. Pwr Use 25000 kWh Type Hr/Wk Wk/Yr Total Hr Wage/Hr TotalAmount Financed$0 Elec Rate $0.100 /kWh Biomass System 4.0 40 160 $20.00 $3,200Amount of Grants$1,400,000 Other 0.0 40 0 $20.00 $01st 2 Year Learning 2.0 40 80 $20.00 $1,600Interest Rate5.00%Term10Annual Finance Cost (years)$0 17.5 years Net Benefit B/C Ratio$6,373,815 $4,973,815 4.55$3,213,382 $1,813,3822.30Year Accumulated Cash Flow > 0#N/AYear Accumulated Cash Flow > Project Capital Cost11Inflation FactorsO&M Inflation Rate2.0%Fossil Fuel Inflation Rate5.0%Wood Fuel Inflation Rate3.0%Electricity Inflation Rate3.0%Discount Rate for Net Present Value Calculation 3.0%Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year YearCash flow Descriptions Unit Costs HeatingSource ProportionAnnual Heating Source VolumesHeating Units 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 20 25 30Existing Heating System Operating CostsDisplaced heating costs $3.70 127900 gal $473,230 $496,892 $521,736 $547,823 $575,214 $603,975 $634,173 $665,882 $699,176 $734,135 $770,842$809,384 $849,853 $892,346 $936,963 $1,195,829 $1,526,214 $1,947,879Displaced heating costs $3.700 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Displaced heating costs $3.700 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Displaced heating costs $3.700 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Biomass System Operating CostsWood Fuel ($/ton, delivered to boiler site)$300.00 85% 1049 tons $314,781 $324,224 $333,951 $343,970 $354,289 $364,918 $375,865 $387,141 $398,755 $410,718 $423,039 $435,731 $448,803 $462,267 $476,135 $551,970 $639,885 $741,802Small load existing fuel$3.70 15% 19185 gal $70,985 $74,534 $78,260 $82,173 $86,282$90,596 $95,126 $99,882 $104,876 $110,120 $115,626 $121,408 $127,478 $133,852 $140,544 $179,374 $228,932 $292,182Small load existing fuel$3.70 15% 0 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Small load existing fuel$3.70 15% 0 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Small load existing fuel$3.70 15% 0 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Additional Operation and Maintenance Costs$3,200 $3,264 $3,329 $3,396 $3,464 $3,533 $3,604 $3,676 $3,749 $3,824 $3,901 $3,979 $4,058 $4,140 $4,222 $4,662 $5,147$5,683Additional Operation and Maintenance Costs First 2 years$1,600 $1,632Additional Electrical Cost $0.100$2,500 $2,575 $2,652 $2,732 $2,814 $2,898 $2,985 $3,075 $3,167 $3,262 $3,360 $3,461 $3,564 $3,671 $3,781 $4,384 $5,082$5,891Annual Operating Cost Savings$80,164$90,662$103,543$115,552$128,366$142,030$156,594$172,108$188,628$206,211$224,916$244,806$265,950$288,416$312,280$455,438$647,168$902,321Financed Project Costs - Principal and Interest0000000000 Displaced System Replacement Costs (year one only)0Net Annual Cash Flow80,164 90,662 103,543 115,552 128,366 142,030 156,594 172,108 188,628 206,211 224,916 244,806 265,950 288,416 312,280 455,438 647,168 902,321Accumulated Cash Flow80,164 170,827 274,370 389,922 518,287 660,317 816,910 989,019 1,177,647 1,383,858 1,608,773 1,853,580 2,119,529 2,407,946 2,720,226 4,694,187 7,524,448 11,496,899Additional Power UseAdditional MaintenanceSimple Payback: Total Project Cost/Year One Operating Cost Savings:Net Present Value (30 year analysis):Net Present Value (20 year analysis): APPENDIX C Site Plan NEW BOILER BUILDINGNEW SILOSCHOOL94'-0"NORTHREF.LEGENDPIPE ROUTINGBOILER ROOM120'60'30'0SCALE: 1:60MISSOULA, MT(406)728-9522Fax (406)728-8287Date®BIOMASS PRE-FEASIBILITY ASSESSMENTKETCHIKAN, ALASKAKETCHIKAN HIGH SCHOOLSSFNHR07/24/12FEDCJ:ketchSCOLSITE PLAN APPENDIX D Air Quality Report   55 Railroad Row      White River Junction, Vermont 05001  TEL 802.295.4999      FAX 802.295.1006      www.rsginc.com  INTRODUCTION At your request, RSG has conducted an air quality feasibility study for seven biomass energy installations in Ketchikan and Craig, Alaska. These sites are located in the panhandle of Alaska. The following equipment is proposed:  Ketchikan o One 4,700,000 Btu/hr (heat output) pellet boiler at the Ketchikan High School. o One 800,000 Btu/hr (heat output) pellet boiler at the Ketchikan Indian Council Medical Facility. o One 150,000 Btu/hr (heat output) pellet boiler at the Ketchikan Indian Council Votec School. o One 200,000 Btu/hr (heat output) pellet boiler at the old Ketchikan Indian Council Administration Building.  Craig o One 450,000 Btu/hr (heat output) cord wood boiler at the Craig Tribal Association Building. o One 450,000 Btu/hr (heat output) cord wood boiler near the Fire Hall. o One 250,000 Btu/hr (heat output) cord wood boiler at the Shaan‐Seet Office. To: Nick Salmon From: John Hinckley Subject: Ketchikan‐Craig Cluster Feasibility Study Date: 24 July 2012 Ketchikan‐Craig Air Quality Feasibility Study Resource Systems Group, Inc. 24 July 2012 page 2   A USGS map of the Ketchikan study area is provided in Figure 1 below. As shown, the area is mountainous, with Ketchikan located on the southwest side of a mountain range. Ketchikan has a population of 14,070. The area is relatively fairly well populated and developed relative to other areas in Alaska. The area is also a port for cruise ships, which are significant sources of air pollution. The topography, population, level of development, and existing emission sources has the potential to create localized, temporary problematic air quality. Figure 1: USGS Map Illustrating the Ketchikan Study Area Ketchikan‐Craig Air Quality Feasibility Study Resource Systems Group, Inc. 24 July 2012 page 3   Figure 2 shows CTA Architects’ plan of the location of the proposed biomass facility at the Ketchikan High School. The site slopes moderately to steeply downward in the southeasterly direction with the grade becoming very steep to the northeast of the High School building. The school building is between two to three stories high. The biomass facility will be located in a stand‐alone building on the north side of the school building, which is the high side of the building. There are residential areas west, north, and east of the proposed biomass facility which are uphill (above) the facility. The precise dimensions of that building, the stack location and dimensions, and the biomass equipment specifications have not been determined. The degree of separation of the biomass building from the other buildings will create a buffer for emissions dispersion. Figure 2: Site Map of the Ketchikan High School Project Ketchikan‐Craig Air Quality Feasibility Study Resource Systems Group, Inc. 24 July 2012 page 4   Figure 3 shows CTA Architects’ plan of the location of the proposed biomass facility at the Ketchikan Indian Council Medical Facility. The site slopes moderately to steeply downward in the southeasterly direction. As a result, there are buildings above and below the site. The biomass facility will be located in a stand‐alone building on the northeast (uphill) side of the school building. The precise dimensions of that building, the stack location and dimensions, and the biomass equipment specifications have not been determined. The degree of separation of the biomass building from the other buildings will create a small buffer for emissions dispersion. Figure 3: Site Map of the Ketchikan Indian Council Medical Facility Ketchikan‐Craig Air Quality Feasibility Study Resource Systems Group, Inc. 24 July 2012 page 5   Figure 4 shows CTA Architects’ plan of the location of the Ketchikan Indian Council Votec School (marked Stedman) and Ketchikan Indian Council Admin Building (marked Deermount). The sites slope moderately to steeply downward in the southeasterly direction. As a result, there are buildings above and below the sites. The precise dimensions of that building, the stack location and dimensions, and the biomass equipment specifications have not been determined. Figure 4: Site Map of Ketchikan Indian Council Votec School (Stedman) and the Admin Building (Deermount) Ketchikan‐Craig Air Quality Feasibility Study Resource Systems Group, Inc. 24 July 2012 page 6   A USGS map is provided below in Figure 5. As shown, Craig Island is relatively flat with mountainous terrain to the west, and water in all other directions. The area is relatively sparsely populated. The population of Craig is 1,397. Our review of the area did not reveal any significant emission sources or ambient air quality issues. Figure 5: USGS Map Illustrating the Craig Study Area Ketchikan‐Craig Air Quality Feasibility Study Resource Systems Group, Inc. 24 July 2012 page 7   Figure 6 shows CTA Architects’ plan of the location of the proposed biomass facility and the surrounding buildings. The site is relatively flat and moderately populated with one and two story high buildings. The boiler plant is located in a stand‐alone building to the west of the Tribal Association Building and east of another building. The stack should be designed to provide plume rise above both of these buildings. The precise dimensions of that building, the stack location and dimensions, and the biomass equipment specifications have not been determined. Figure 6: Site Map of the Craig Tribal Association Building Ketchikan‐Craig Air Quality Feasibility Study Resource Systems Group, Inc. 24 July 2012 page 8   Figure 7 shows CTA Architects’ plan of the proposed Shaan‐Seet biomass facility and the surrounding buildings. The site is relatively flat and moderately populated with one and two story high buildings. The boiler plant is located in a stand‐alone building. The precise dimensions of that building, the stack location and dimensions, and the biomass equipment specifications have not been determined. Figure 7: Site Map of Shaan‐Seet Boiler Plant Site Ketchikan‐Craig Air Quality Feasibility Study Resource Systems Group, Inc. 24 July 2012 page 9   METEOROLOGY Meteorological data from Annette, AK, was reviewed to develop an understanding of the weather conditions. Annette is the closest weather data representing the climactic conditions occurring in the Panhandle and is therefore a good proxy of Ketchikan and Craig weather conditions. This data indicates calm winds occur only 10% of the year when, which suggests there will be minimal time periods when thermal inversions and therefore poor emission dispersion conditions can occur.1 Figure 8: Wind Speed Data from Annette, AK 1 See: http://climate.gi.alaska.edu/Climate/Wind/Speed/Annette/ANN.html Ketchikan‐Craig Air Quality Feasibility Study Resource Systems Group, Inc. 24 July 2012 page 10   DESIGN & OPERATION RECOMMENDATIONS The following are suggested for designing this project:  Burn natural wood, whose characteristics (moisture content, bark content, species, geometry) results in optimal combustion in the equipment selected for the project.  Do not install a rain cap above the stack. Rain caps obstruct vertical airflow and reduce dispersion of emissions.  Construct the stack to at least 1.5 times the height of the tallest roofline of the adjacent building. Hence, a 20 foot roofline would result in a minimum 30 foot stack. Attention should be given to constructing stacks higher than 1.5 times the tallest roofline given higher elevations of surrounding residences due to the moderate to steep slopes present.  Operate and maintain the boiler according to manufacturer’s recommendations.  Perform a tune‐up at least every other year as per manufacturer’s recommendations and EPA guidance (see below for more discussion of EPA requirements)  Conduct regular observations of stack emissions. If emissions are not characteristic of good boiler operation, make corrective actions.  For the Ketchikan High School: install at minimum a multicyclone to filter particulate matter emissions. These design and operation recommendations are based on the assumption that state‐of‐the‐ art combustion equipment is installed. STATE AND FEDERAL PERMIT REQUIREMENTS This project will not require an air pollution control permit from the Alaska Department of Environmental Quality given the boilers’ relatively small size and corresponding quantity of emissions. However, this project will be subject to new proposed requirements in the federal “Area Source Rule” (40 CFR 63 JJJJJJ). A federal permit is not needed. However, there are various record keeping, reporting and operation and maintenance requirements which must be performed to demonstrate compliance with the requirements in the Area Source Rule. The proposed changes have not been finalized. Until that time, the following requirements are applicable:  Submit initial notification form to EPA within 120 days of startup.  Complete biennial tune ups per EPA method.  Submit tune‐up forms to EPA. Please note the following:  Oil and coal fired boilers are also subject to this rule. Ketchikan‐Craig Air Quality Feasibility Study Resource Systems Group, Inc. 24 July 2012 page 11    Gas fired boilers are not subject to this rule.  More requirements are applicable to boilers equal to or greater than 10 MMBtu/hr heat input. These requirements typically warrant advanced emission controls, such as a baghouse or an electrostatic precipitator (ESP). The compliance guidance documents and compliance forms can be obtained on the following EPA web page: http://www.epa.gov/boilercompliance/ SUMMARY RSG has completed an air quality feasibility study for Ketchikan and Craig, Alaska. These boilers are not subject to state permitting requirements, but are subject to federal requirements. Design criteria have been suggested to minimize emissions and maximize dispersion. The following conditions suggest advanced emission control devices (ESP, baghouse) are not mandatory in Ketchikan and Craig: 1. The wood boilers will be relatively small emission sources. 2. Most of the wood boilers will be located in a separate building which will create a dispersion buffer between the boiler stack and the building. 3. There are no applicable federal or state emission limits. 4. Meteorological conditions are favorable for dispersion. The following conditions suggest additional attention should be given to controlling emissions in Ketchikan: 1. Presence of other emission sources. 2. Relatively high population density. 3. The sensitive populations housed by all Ketchikan buildings. While not mandatory, we recommend exploring the possibility of a cyclone or multi‐cyclone technology for control of fly ash and larger particulate emissions for all the aforementioned boilers. We also recommend developing a compliance plan for the aforementioned federal requirements. Given its size and sensitive population served, air dispersion modeling can be performed for the Ketchikan High School site to determine the stack height and degree of emission control (multicyclone vs ESP). Please contact me if you have any comments or questions. APPENDIX E Wood Fired Heating Technologies WOOD FIRED HEATING TECHNOLOGIES CTA has developed wood-fired heating system projects using cord wood, wood pellet and wood chips as the primary feedstock. A summary of each system type with the benefits and disadvantages is noted below. Cord Wood Cord wood systems are hand-stoked wood boilers with a limited heat output of 150,000- 200,000 British Thermal Units per hour (Btu/hour). Cord wood systems are typically linked to a thermal storage tank in order to optimize the efficiency of the system and reduce the frequency of stoking. Cord wood boiler systems are also typically linked to existing heat distribution systems via a heat exchanger. Product data from Garn, HS Tarm and KOB identify outputs of 150,000-196,000 Btu/hr based upon burning eastern hardwoods and stoking the boiler on an hourly basis. The cost and practicality of stoking a wood boiler on an hourly basis has led most operators of cord wood systems to integrate an adjacent thermal storage tank, acting similar to a battery, storing heat for later use. The thermal storage tank allows the wood boiler to be stoked to a high fire mode 3 times per day while storing heat for distribution between stoking. Cord wood boilers require each piece of wood to be hand fed into the firebox, hand raking of the grates and hand removal of ash. Ash is typically cooled in a barrel before being stock piled and later broadcast as fertilizer. Cordwood boilers are manufactured by a number of European manufacturers and an American manufacturer with low emissions. These manufacturers currently do not fabricate equipment with ASME (American Society of Mechanical Engineers) certifications. When these non ASME boilers are installed in the United States, atmospheric boilers rather than pressurized boilers are utilized. Atmospheric boilers require more frequent maintenance of the boiler chemicals. Emissions from cord wood systems are typically as follows: PM2.5 >0.08 lb/MMbtu NOx 0.23 lb/MMbtu SO2 0.025 lb/MMbtu CO2 195 lb/MMbtu Benefits: Small size Lower cost Local wood resource Simple to operate Disadvantages: Hand fed - a large labor commitment Typically atmospheric boilers (not ASME rated) Thermal Storage is required Page 1 Wood Pellet Wood pellet systems can be hand fed from 40 pound bags, hand shoveled from 2,500 pound sacks of wood pellets, or automatically fed from an adjacent agricultural silo with a capacity of 30-40 tons. Pellet boilers systems are typically linked to existing heat distribution systems via a heat exchanger. Product data from KOB, Forest Energy and Solagen identify outputs of 200,000-5,000,000 Btu/hr based upon burning pellets made from waste products from the western timber industry. A number of pellet fuel manufacturers produce all tree pellets utilizing bark and needles. All tree pellets have significantly higher ash content, resulting in more frequent ash removal. Wood pellet boilers typically require hand raking of the grates and hand removal of ash 2-3 times a week. Automatic ash removal can be integrated into pellet boiler systems. Ash is typically cooled in a barrel before being stock piled and later broadcast as fertilizer. Pellet storage is very economical. Agricultural bin storage exterior to the building is inexpensive and quick to install. Material conveyance is also borrowed from agricultural technology. Flexible conveyors allow the storage to be located 20 feet or more from the boiler with a single auger. Emissions from wood pellet systems are typically as follows: PM2.5 >0.09 lb/MMbtu NOx 0.22 lb/MMbtu SO2 0.025 lb/MMbtu CO2 220 lb/MMbtu Benefits: Smaller size (relative to a chip system) Consistent fuel and easy economical storage of fuel Automated Disadvantages: Higher system cost Higher cost wood fuel ($/MMBtu) Page 2 Page 3 Wood Chip Chip systems utilize wood fuel that is either chipped or ground into a consistent size of 2-4 inches long and 1-2 inches wide. Chipped and ground material includes fine sawdust and other debris. The quality of the fuel varies based upon how the wood is processed between the forest and the facility. Trees which are harvested in a manner that minimizes contact with the ground and run through a chipper or grinder directly into a clean chip van are less likely to be contaminated with rocks, dirt and other debris. The quality of the wood fuel will also be impacted by the types of screens placed on the chipper or grinder. Fuel can be screened to reduce the quantity of fines which typically become airborne during combustion and represent lost heat and increased particulate emissions. Chipped fuel is fed from the chip van into a metering bin, or loaded into a bunker with a capacity of 60 tons or more. Wood chip boilers systems are typically linked to existing heat distribution systems via a heat exchanger. Product data from Hurst, Messersmith and Biomass Combustion Systems identify outputs of 1,000,000 - 50,000,000 Btu/hr based upon burning western wood fuels. Wood chip boilers typically require hand raking of the grates and hand removal of ash daily. Automatic ash removal can be integrated into wood chip boiler systems. Ash is typically cooled in a barrel before being stock piled and later broadcast as fertilizer. Emissions from wood chip systems are typically as follows: PM2.5 0.21 lb/MMbtu NOx 0.22 lb/MMbtu SO2 0.025 lb/MMbtu CO2 195 lb/MMbtu Benefits: Lowest fuel cost of three options ($/MMBtu) Automated Can use local wood resources Disadvantages: Highest initial cost of three types Larger fuel storage required Less consistent fuel can cause operational and performance issues E3 – Pellet Quote (Tongass) 355 Carlanna Lake Road, Suite 100 • Ketchikan, AK 99901 Phone (907) 225-4541 • Fax (907) 220-0645 • info@akforestenterprises.com April 23, 2012 Mr. Dan Bockhorst Ketchikan Gateway Borough 1900 First Avenue, Suite 201 Ketchikan, AK 99901 Re: Wood Pellet Supply Contracts Dear Mr. Bockhorst, The purpose of this letter is to let potential customers know that there is a tremendous opportunity for Tongass Forest Enterprises to secure a long term supply of fiber here on Revillagigedo Island for making pellets. We are in talks with Alcan Forest Products to purchase the remaining pulp grade wood from the Leask Lakes sale which is winding down. We are also looking at purchasing much of the pulp grade wood from the Boundary Sale which is located near the Brown Mountain Road. The Boundary Sale will likely be the closest timber sale to Ketchikan for many years to come and offers very inexpensive trucking to Ketchikan. There is opportunity for future customers to take advantage of this sale by committing to long term pellet contracts with TFE. We offer the following pricing of premium grade wood pellets for long term commitments if agreements are signed by August 2012. Tons / Year 1 year 2 year 3 year 5 year 0 -200 305 300 295 290 200-500 300 295 290 280 ¾ 500 290 285 280 275 Please call if you have any questions with this pricing. (907) 617-1441. Sincerely Trevor Sande cc: Ed Schofield, Mike Williams, Robert Boyle E4 – Airport Energy Audit Ketchikan International Airport Ketchikan Gateway Borough Final Report November 2012 Energy Audit Table of Contents Section 1: Executive Summary 2  Section 2: Introduction 8  Section 3: Energy Efficiency Measures 10  Section 4: Description of Systems 17  Section 5: Methodology 19  Appendix A: Energy and Life Cycle Cost Analysis 22  Appendix B: Utility and Energy Data 30  Appendix C: Equipment Data 36  Appendix D: Abbreviations 38  Section 1 Executive Summary This report presents the findings of an energy audit of the Ketchikan International Airport Terminal Building and Runway/Taxiway Lighting. The purpose of this energy audit is to evaluate the infrastructure and its subsequent energy performance to identify applicable energy efficiencies measures (EEMs). The Terminal Building is 32,600 square feet and contains the ticketing, waiting, offices, cafeteria, flight tower, gift shop, storage, and mechanical support spaces. The runway is 7,500 foot long and 150 feet wide. TERMINAL BUILDING ASSESSMENT Envelope The envelope components have much lower insulating values (R-values) than optimal for Ketchikan’s climate. While there are several low cost EEMs to reduce heat loss through the envelope, upgrading envelope components typically do not provide a life cycle savings unless they are near the end of their service life or are part of a major upgrade to the building. Walls: The exterior walls are underinsulated. The R-values range from R-5 to R-12, which is significantly below current R-24 standards for new buildings. Windows: The windows have non-thermally broken aluminum frames with double pane glazing. These units have an R-1.5 insulating value, below modern R-3 window systems with triple pane glazing. Doors: The exterior doors are not thermally broken and many have poor weather-stripping. The sensors on the main entrance doors are adjusted so doors at both ends of the arctic entryway open when a person approaches either door. Roof: The roof insulation varies from R-28 to R-38 insulating value, below current R-46 levels. Heating System The heating system consists of two fuel oil boilers and a hydronic heating system. Heat is supplied by the ventilation systems, perimeter baseboards, and other terminal units. The boilers are 40 years old and at the end of their service life. They are both oversized by 100% — indicating that an expansion of the terminal was anticipated when the building was constructed. Oversized boilers have cycling and standby losses of 2% to 5% per year. The boiler combustion air louver has been mostly blocked off, which can affect the boilers’ ability to obtain sufficient combustion air. Options for replacing the boilers are being evaluated in a separate Heating System Retrofit Study. The hydronic heating system has constant speed pumps that do not vary their energy consumption with heating load. Variable speed pumping will reduce the average pumping power from 4.5 HP to below 2 HP. The heating piping is underinsulated. Insulation can be added to accessible piping in the mechanical spaces, but it is not cost effective to add insulation to piping above the ceilings. Ventilation Systems Ventilation Systems Occupants complain of lack of thermal comfort, stuffy rooms, and lack of cooling during periods with high solar gain. The ventilation systems are at the end of their expected service life and are failing to adequately ventilate, heat, and cool the building. These issues are due to significant system deficiencies. Ventilating unit VU-1 supplies ventilation air, heating, and cooling to the terminal. The unit has reached the end of its service life and has the following deficiencies: Indoor Air Quality and Thermal Comfort The ventilation systems are at the end of their expected service life and are failing to adequately ventilate, heat, and cool the building. The poor performance of the ventilation systems is likely saving energy to the detriment of the interior environment. These issues are due to significant system deficiencies:  The building ventilation systems are near the end of their expected service life and are not providing good service;  The boilers are extremely oversized and inefficient;  The ventilating units have significant deficiencies and are not fully operational;  The ventilation scheme of supplying air above the ceilings is a very poor application; and,  The control system is not providing optimal control. The pneumatic controllers are failing and the DDC interface is poor. A renovation of the systems should include a goal of improving the functions and indoor environment without increasing energy costs. Optimization opportunities that can contribute to that goal with renovated systems, but are not economically feasible with the existing systems, include:  Staging of boilers;  Night setback;  Scheduled operation of fan systems;  Demand control ventilation based on occupancy;  Heat recovery from high heat gain spaces such as the FAA equipment room, computer server room, kitchen refrigeration, and boiler room;  Variable air volume systems that modulate with cooling requirements; and,  Variable-flow exhaust system for toilet rooms and other constant exhaust spaces. We recommend a condition survey to develop a long-term plan for the systems. Because the building is underperforming and actually using less energy, upgrading controls and systems will not provide a life cycle savings; however, it will greatly improve the indoor environment for building occupants and allow the implementation of optimal systems and controls for the building  The mixing dampers have failed. The return air dampers are fully closed. This restricts system air flow; low air flow at the diffusers and duct openings confirms this issue. This is directly affecting the air quality in many rooms. The outside air dampers appear to be stuck at 5% open. This does not allow them to modulate open and naturally cool the building on sunny days. The exhaust air damper is wide open, causing the return fan to discharge excessive amounts of warm air to the outdoors.  The heating coil is not supplying heat to the hot deck. This is likely the reason many zones are below setpoint and the occupants have installed electric heaters.  A cooling coil has been added to the system. The added pressure drop through the coil reduces system air flow. This is compounded by arrangement of the installed coil, which is restricting airflow through the unit.  The system supplies air to the ceiling space in the ticketing and waiting rooms. The pressurized plenum then pushes air through ceiling slot diffusers into the rooms. This is inherently a poor method for supplying ventilation air and for heating and cooling the building.  The manual damper in the return air duct from the first floor is closed. It should be open to promote airflow through the 1st floor. Ventilating unit VU-2 supplies ventilation air and cooling to the tower. The system is not operated because of concerns that air flow to the FAA control tower could adversely affect sensitive electronic equipment. Not operating the system affects tower indoor air quality and thermal comfort due to lack of cooling. Recommendations The following short-term measures are recommended for immediate implementation to improve indoor air quality and thermal comfort. They will not necessarily result in energy savings.  Repair VU-1 mixing dampers  Repair VU-1 heating coil controls  Return VU-2 to Operation Cooling Systems There are two roof top mechanical cooling systems, one serving ventilating unit VU-1 and the other VU- 2. The VU-1 unit is operated from June to August to cool the building. The VU-2 unit has been taken out of service. The performance of the units could not be tested because they are disabled. The FAA equipment room on the 4th floor has two window air conditioners that operate continuously to remove equipment heat gain. This heat can be utilized by installing a heat pump heat recovery system to transfer the heat to the control tower. Control System The terminal has a DDC system controlling the ventilation systems and monitoring the boilers and an original pneumatic control system for the zone level controls. The DDC system does not have a computer terminal with graphic screens that allow building operators to control and monitor the systems. A graphic interface is essential to monitor the building and maintain the energy efficiency of the building. The pneumatic control system is experiencing regular failures of control valves and sensors. The system is a maintenance liability and also does not allow central monitoring. Domestic Hot Water System Domestic hot water is generated by two indirect hot water heaters. A hot water circulating pump maintains hot water in the piping systems. The system is in good condition. Lighting Interior The main lobbies have T12 fluorescent lighting that is much higher than needed to adequately light the spaces. The air carrier offices have T8 and T12 lamps. Conversion to LED will save lighting energy, but some of the lighting energy is beneficial heat to the building. Air charter and rental offices are lit with luminaires using T5 lamps which are the most energy efficient fluorescent lamps available. No additional energy savings is available by going to LED unless the light levels are reduced. The light levels are good as currently designed. Exterior The exterior lighting consists of high pressure sodium lamps and compact fluorescent lamps controlled by photocells, time clocks, and manual switches. The exterior of the terminal is over lit during unoccupied periods. Tarmac: (6) 400-watt HPS fixtures controlled by a timer. Perimeter: Controlled from a photocell. - (23) 70-watt HPS fixtures - (1) 150-watt HPS fixture Front Canopy: Controlled from a photocell. - (32) 20-watt CFLs fixtures - (15) 250-watt HPS fixtures Baggage Handling: Controlled from a manual switch. - (5) 250-watt MH fixtures Electric Equipment The transformers are not energy efficient models. The kitchen prep area has high heat gain from a refrigerator, freezer, and ice machine. RUNWAY AND TAXIWAY LIGHTING ASSESSMENT* Runway Lighting: The runway is lit with 91 200-watt incandescent lamps. LED runway lights are available for this application. Taxiway Lighting: The taxiway is lit with 141 45-watt incandescent lamps. LED lamps are available for this application. *The State of Alaska has not approved the use of LED lighting for runways. ENERGY EFFICIENCY MEASURES (EEMS) All buildings have opportunities to improve their energy efficiency. The energy audit revealed numerous opportunities in which an efficiency investment will result in a net reduction in long-term operating costs. Details on these EEMs are provided in Section 3. Behavioral and Operational EEMs The following EEMs require behavioral and operational changes in the building use. The savings are not readily quantifiable, but these EEMs are highly recommended as low-cost opportunities that are a standard of high performance buildings. EEM-1: Replace Appliances with Energy Star Models EEM-2: De-Lamp Vending Machines EEM-3: Weather-strip Doors EEM-4: Reduce Arctic Entry Temperature EEM-6: Seal Wall Patches EEM-7: Adjust Sensor on Main Doors High and Medium Priority EEMs The following EEMs are recommended for investment. They are ranked by life cycle savings to investment ratio (SIR). This ranking method places a priority on low cost EEMs which can be immediately funded, generating energy savings to fund higher cost EEMs in the following years. Negative values, in parenthesis, represent savings. 25-Year Life Cycle Costs Investment Operating Energy Total SIR High Priority Energy Efficiency Measures EEM-8: Adjust Boiler Thermostat $100 $0 ($25,800) ($25,700) 258.0 EEM-9: Turn Off Standby Boiler $1,000 $4,600 ($167,400) ($161,800) 163 EEM-10: Perform Boiler Combustion Test $700 $13,900 ($38,700) ($24,100) 35.4 EEM-11: Upgrade Runway Lighting $95,400 ($526,900) ($40,300) ($471,800) 5.9 EEM-12: Optimize Exterior Terminal Lighting $6,200 ($1,500) ($23,500) ($18,800) 4.0 Medium Priority Energy Efficiency Measures EEM-13: Upgrade Taxiway Lighting $71,400 ($185,800) ($7,700) ($122,100) 2.7 EEM-14: Upgrade Motors to Premium Efficiency $8,700 $0 ($15,100) ($6,400) 1.7 EEM-15: Optimize Exterior Lighting Controls $1,800 $0 ($2,200) ($400) 1.2 EEM-16: Install DHWRP Thermostat Control $500 $0 ($600) ($100) 1.2 Totals* $185,800 ($695,700) ($321,300) ($831,200) 5.5 * The analysis is based on each EEM being independent of the others. While it is likely that some EEMs are interrelated, an isolated analysis is used to demonstrate the economics because the audit team is not able to predict which EEMs an Owner may choose to implement. If several EEMs are implemented, the resulting energy savings is likely to differ from the sum of each EEM projection. Low Priority Low priority EEMs do not offer a life cycle energy savings and are not recommended. 25-Year Life Cycle Costs Investment Operating Energy Total SIR Low Priority Energy Efficiency Measures EEM-17: Replace Rollup Baggage Door $4,300 $0 ($4,000) $300 0.9 EEM-18: Increase Tower Wall Insulation $92,300 $0 ($78,800) $13,500 0.9 EEM-19: Increase Terminal Wall Insulation $323,200 $0 ($123,200) $200,000 0.4 EEM-20: Upgrade Interior Lighting $188,600 ($63,500) $5,800 $130,900 0.3 EEM-21: Increase Addition Wall Insulation $323,200 $0 ($18,000) $305,200 0.1 A preliminary analysis demonstrated that the following EEMs do not offer life cycle energy savings, detailed analysis was not warranted. EEM-22: Increase Terminal Roof Insulation EEM-23: Convert to Variable Speed Pumping EEM-24: Increase Pipe Insulation SUMMARY We recommend that the behavioral and high priority EEMs be implemented now to generate energy savings from which to fund the medium priority EEMs. Alaska Housing Finance Corporation’s (AHFC) revolving loan fund for public buildings is another funding avenue to consider. AHFC will loan money for energy improvements under terms that allow for repaying a loan from energy savings. More information on this option can be found online at http://www.ahfc.us/loans/akeerlf_loan.cfm. Section 2 Introduction This report presents the findings of an energy audit of the Ketchikan Airport Terminal Building and runway lighting. The purpose of this energy audit is to evaluate the infrastructure and its subsequent energy performance to identify applicable energy efficiencies measures (EEMs). The energy audit report contains the following sections: Introduction: Building use and energy consumption. Energy Efficiency Measures: Priority ranking of the EEMs with a description, energy analysis, and life cycle cost analysis. Description of Systems: Background description of the building energy systems. Methodology: Basis for how construction and maintenance cost estimates are derived and the economic and energy factors used for the analysis. BUILDING USE The Ketchikan Airport Terminal is 32,600 square feet and contains the ticketing, waiting, offices, cafeteria, flight tower, gift shop, storage, and mechanical support spaces. The building is occupied in the following manner: Occupied Hours: Daily from 5:45 am to 9:30 pm Occupants: Staff - 85; Passengers - 600 per day; Local traffic - 350 per day. Construction and Renovation History 1972 – Original construction 2004 – Remodel and Addition Energy Consumption The Terminal energy sources include an electric service and a fuel oil tank. Fuel oil is used for the majority of the heating loads, including domestic hot water. The following table shows annual energy use and cost. Annual Energy Consumption and Cost Source Consumption Cost Energy, MMBtu Electricity 953,650 kWh $90,500 3,300 51% Fuel Oil 23,841 Gallons $85,300 3,200 49% Totals $175,800 6,500 100% Buildings in Southeast Alaska typically consume 67% of their energy to generate heat. The Terminal fuel oil use accounts for only 49% of total energy. This lower percentage is likely due to the lack of ventilation being supplied by AHU-1 and the use of electric space heaters in the building. Electricity This chart shows electrical energy use for the entire Airport Terminal from 2008 to 2011. Electricity use is steady through the year indicating that cooling energy replaces heating energy in the summer months. The effective cost in 2011 —energy costs plus demand charges—was 9.5¢ per kWh. Fuel Oil This chart shows heating energy use from 2007 to 2010. The chart compares annual use with the heating degree days which is a measurement of the demand for energy to heat a building. A year with a higher number of degree days reflects colder outside temperatures and a higher heating requirement. Cost of Heat Comparison The current cost of fuel oil (August 2012) is $3.58 per gallon. Assuming a fuel oil conversion efficiency of 70% and an electric boiler conversion efficiency of 95%, oil heat at $3.58 per gallon costs $36.93 per MMBtu. Since electric heat at 9.5¢ per kWh costs $29.26 per MMBtu, electric heat is less expensive than fuel oil heat. Section 3 Energy Efficiency Measures The following energy efficiency measures (EEMs) were identified during the energy audit. The EEMs are priority ranked and, where applicable, subjected to energy and life cycle cost analysis. Appendix A contains the energy and life cycle cost analysis spreadsheets. The EEMs are grouped into the following prioritized categories:  Behavioral or Operational: EEMs that require minimal capital investment but require operational or behavioral changes. The EEMs provide a life cycle savings but an analysis is not performed because the guaranteed energy savings is difficult to quantify.  High Priority: EEMs that require a small capital investment and offer a life cycle savings. Also included in this category are higher-cost EEMs that offer significant life cycle savings.  Medium Priority: EEMs that require a significant capital investment to provide a life cycle savings. Many medium priority EEMs provide a high life cycle savings and offer substantial incentive to increase investment in building energy efficiency.  Low Priority: These EEMs do not offer a life cycle energy savings and are not recommended. BEHAVIORAL OR OPERATIONAL The following EEMs are recommended for implementation. They require behavioral or operational changes that can occur with minimal investment to achieve immediate savings. These EEMs are not easily quantified by analysis because they cannot be accurately predicted. They are recommended because they offer a life cycle savings, represent good practice, and are accepted features of high performance buildings. EEM-1: Replace Appliances with Energy Star Models Purpose: Energy Star appliances are the standard for high performance buildings. The building has a few appliances that are not Energy Star compliant. Scope: When appliances reach the end of their service life, replace them with Energy Star compliant models. EEM-2: De-Lamp Vending Machines Purpose: Lamps for soft drink coolers and snack machines run continuously and are not necessary. Energy will be saved if the lamps are removed. Scope: Remove lamps from the soft drink cooler and snack machines. EEM-3: Weather-strip Doors Purpose: Many of the exterior doors do not seal and are missing weather stripping. Energy will be saved if doors are properly weather-stripped to reduce infiltration. Scope: Replace weather stripping on exterior doors. EEM-4: Reduce Arctic Entry Temperature Purpose: The main arctic entrances are being maintained at 68°F. The arctic entry should be a transition space between the building interior and exterior and therefore does not need to be heated to interior space temperatures. Energy will be saved if the thermostat for this space is reduced to 55°F. Scope: Reduce arctic entry thermostat setpoint to 55°F. EEM-5: Seal Baggage Belt Openings Purpose: The baggage belt openings do not have seal the building from infiltration and heat loss. Energy will be saved if the baggage belt openings and passageway are sealed to reduce infiltration. There are also holes in the ceiling and walls of the baggage passageway that contribute to infiltration and heat loss. Scope: Install an automatic door on the departure baggage openings. Design a closure for all openings that seals the opening when it is not in use. Seal the thermal envelope of the baggage passageway. EEM-6: Seal Wall Patches Purpose: There are several locations where openings in the exterior wall have been filled in. The joint between the wall and infill has not been properly sealed, which increases infiltration into the building. Energy will be saved if the joints are sealed. Scope: Seal the joints around exterior wall in-fills. EEM-7: Adjust Sensor on Main Doors Purpose: When a person walks through the main doors, the sensors open both doors simultaneously. Energy will be saved if the sensors are adjusted so they only “see” a person who is directly in-front of each respective door. Scope: Adjust the door sensors so they only open for a person who is approaching the respective door. HIGH PRIORITY The following EEMs are recommended for implementation because they are low cost measures that have a high savings to investment ratio. The EEMs are listed from highest to lowest priority. Negative values, in parenthesis, represent savings. EEM-8: Adjust Boiler Thermostat Purpose: The boiler operating thermostat has an adjustable differential between on and off setpoints. They are currently set with a 10°F differential. Setting it to a 30°F differential will increase the amount of time the boiler operates each cycle, which improves seasonal efficiency. Scope: Adjust the boiler thermostat differential as large as possible without compromising heating performance. As a starting point, use differentials of 30°F in the winter and 40°F in the summer. Annual Costs Life Cycle Costs Operating Energy Total Investment Operating Energy Total SIR $0 ($910) ($910) $100 $0 ($25,800) ($25,700) 258.0 EEM-9: Turn Off Standby Boiler Purpose: Both boilers are kept hot continuously. Consideration should be given to isolating the standby boiler when the weather is warm enough that a failure of the lead boiler will not be detrimental to terminal operations while the standby boiler is brought on-line. Keeping the standby boiler hot can result in a 1% efficiency loss due to the isolated boiler acting as a heat sink. Energy will be saved if only a single boiler is on line when temperatures permit. Scope: Shut down and isolate the lag boiler when only a single boiler is needed to support building operations. Annual Costs Life Cycle Costs Operating Energy Total Investment Operating Energy Total SIR $240 ($5,910) ($5,670) $1,000 $4,600 ($167,400) ($161,800) 162.8 EEM-10: Perform a Boiler Combustion Test Purpose: Operating the boiler with an optimum amount of excess air will improve combustion efficiency. Annual cleaning followed by a combustion test is recommended. Scope: Annually clean and perform a combustion test on each boiler. Annual Costs Life Cycle Costs Operating Energy Total Investment Operating Energy Total SIR $720 ($1,370) ($650) $700 $13,900 ($38,700) ($24,100) 35.4 EEM-11: Upgrade Runway Lighting Purpose: The runway is lit by 91 200-watt incandescent fixtures. Energy will be saved if the lighting is upgraded to LED fixtures. Scope: Replace the runway fixtures with LED fixtures. Note that the State of Alaska has not approved the use of LED lighting for runways. Annual Costs Life Cycle Costs Operating Energy Total Investment Operating Energy Total SIR ($27,320) ($2,170) ($29,490) $95,400 ($526,900) ($40,300) ($471,800) 5.9 EEM-12: Optimize Exterior Terminal Lighting Purpose: The exterior lighting on the perimeter of the building consists of numerous fixtures controlled by a photocell. Optimizing the lighting and controls will save energy. Scope: Upgrade lighting fixtures and controls in the following manner: - Replace the HPS wall packs with LED fixtures that dim except when occupancy is sensed. - Add a time clock to turn off the remaining lighting from 11pm to 5 am. Annual Costs Life Cycle Costs Operating Energy Total Investment Operating Energy Total SIR ($80) ($1,270) ($1,350) $6,200 ($1,500) ($23,500) ($18,800) 4.0 MEDIUM PRIORITY Medium priority EEMs will require planning and a higher level of investment. The following are recommended because they offer a life cycle savings. The EEMs are listed from highest to lowest priority. Negative values, in parenthesis, represent savings. EEM-13: Upgrade Taxiway Lighting Purpose: The taxiway is lit by 141 45-watt incandescent fixtures. Energy will be saved if the lighting is upgraded to LED fixtures. Scope: Replace the taxiway fixtures with LED fixtures. Annual Costs Life Cycle Costs Operating Energy Total Investment Operating Energy Total SIR ($9,630) ($420) ($10,050) $71,400 ($185,800) ($7,700) ($122,100) 2.7 EEM-14: Upgrade Motors to Premium Efficiency Purpose: The equipment inspection identified three motors (VU-1 15 HP; EF-1 5 HP; P-3 2 HP) that can be upgraded with premium efficiency models to save energy. Scope: Replace identified motors with premium efficiency motors. Annual Costs Life Cycle Costs Operating Energy Total Investment Operating Energy Total SIR $0 ($810) ($810) $8,700 $0 ($15,100) ($6,400) 1.7 EEM-15: Optimize Exterior Lighting Controls Purpose: The exterior area lighting is controlled from a timer that is manually adjusted with seasonal changes in daylight. Energy will be saved if a photocell is installed to automatically turn the lighting on and off, retaining the timer to turn the lights off during periods when the terminal is unoccupied. Scope: Install photocell and integrate with existing timer. Annual Costs Life Cycle Costs Operating Energy Total Investment Operating Energy Total SIR $0 ($120) ($120) $1,800 $0 ($2,200) ($400) 1.2 EEM-16: Install Domestic HWRP Thermostat Control Purpose: The domestic hot water recirculating pump currently operates continuously to circulate heated domestic hot water through the piping system regardless of demand or system temperature. Energy will be saved if a thermostat is installed to operate the pump when the loop temperature drops below the setpoint. Scope: Install thermostat to control operation of hot water return pump. Annual Costs Life Cycle Costs Operating Energy Total Investment Operating Energy Total SIR $0 ($30) ($30) $500 $0 ($600) ($100) 1.2 LOW PRIORITY Low priority EEMs do not offer a life cycle energy savings and are not recommended. EEM-17: Replace Rollup Baggage Door Purpose: Island Air has an uninsulated metal door for baggage pass-through. Energy will be saved by replacing this overhead door with a high efficiency insulated unit. Scope: Replace the overhead door with a high efficiency insulated unit and replace weather stripping. Annual Costs Life Cycle Costs Operating Energy Total Investment Operating Energy Total SIR $0 ($140) ($140) $4,300 $0 ($4,000) $300 0.9 EEM-18: Increase Tower Wall Insulation Purpose: The tower walls are constructed of insulated metal panels that have an estimated R-5 insulation value. An optimal R-value by current construction standards is R-24. Energy will be saved if the insulation level of the walls is increased by installing 3” of rigid insulation in the wall cavity and a finish layer of gypsum board. Scope: Install a minimum of 3” of foam insulation in the wall cavity and a painted gypsum board finish. Annual Costs Life Cycle Costs Operating Energy Total Investment Operating Energy Total SIR $0 ($2,780) ($2,780) $92,300 $0 ($78,800) $13,500 0.9 EEM-19: Increase Terminal Wall Insulation Purpose: The majority of the walls are constructed of minimally insulated concrete. The walls have an insulating value of R-12; R-24 is optimal. Energy will be saved by adding insulation to the walls. Scope: Install 2” of rigid insulation and metal siding over the uninsulated concrete walls. Annual Costs Life Cycle Costs Operating Energy Total Investment Operating Energy Total SIR $0 ($4,350) ($4,350) $323,200 $0 ($123,200) $200,000 0.4 EEM-20: Upgrade Interior Lighting Purpose: The majority of the interior lighting consists of T12 fluorescent fixtures. Many of the fixtures have been delamped to bring light levels into appropriate ranges. Energy will be saved if more efficient LED fixtures are installed. Scope: Replace the existing T12 fixtures with more efficient LED fixtures. This EEM is not recommended because upgrading the lighting will reduce lighting heat gain that is at least 50% beneficial to heating the building. Since lighting heat is less expensive than fuel oil heat, there is an added cost of shifting this heating load from the electric lights to the fuel oil boiler. This significantly reduces the savings potential of a lighting upgrade. Annual Costs Life Cycle Costs Operating Energy Total Investment Operating Energy Total SIR ($3,290) ($1,320) ($4,610) $188,600 ($63,500) $5,800 $130,900 0.3 EEM-21: Increase Addition Wall Insulation Purpose: The existing addition walls have metal framing and R-13 batt insulation. There is no thermal break for the metal studs which reduces the thermal value to R-10. An optimal R-value by current construction standards is R-24. Energy will be saved if the insulation level of the walls is increased. Scope: Install 3” of rigid insulation and metal siding over the uninsulated concrete walls. Annual Costs Life Cycle Costs Operating Energy Total Investment Operating Energy Total SIR $0 ($640) ($640) $323,200 $0 ($18,000) $305,200 0.1 EEM-22: Increase Terminal Roof Insulation Purpose: The thermal insulating value of the Terminal roof is R-28; R-46 is optimal. Energy will be saved if the roof is insulated to the optimum R-value. Scope: Bring this section of roof up to current construction standards by installing insulation over the existing roof and applying a new membrane. This EEM is not recommended because the high cost of replacing the membrane will not be offset by energy savings. The roof insulation should be increased when the membrane has exceeded its service life. EEM-23: Convert to Variable Speed Pumping Purpose: The building utilizes constant speed heating pumps that consume nearly constant energy over the range of heating loads. Energy will be saved if the pumping system is converted to a variable speed system that varies energy consumption with heating load. Scope: Install VFDs and pressure sensors to modulate the heating pumps with heating loads. Replace 3-way control valves with two valves. A preliminary analysis determined that this EEM will not generate sufficient energy savings to offset the cost of conversion to variable flow. EEM-24: Increase Pipe Insulation Purpose: The thickness of the pipe insulation is below current standards. Energy will be saved if the piping is optimally insulated. Scope: Install a second layer of insulation on the heating and domestic hot water piping. This EEM is not recommended because energy savings will not offset the cost of adding insulation to the piping. Section 4 Description of Systems ENERGY SYSTEMS This section provides a general description of the building systems. Energy conservation opportunities are addressed in Section 3, Energy Efficiency Measures. Building Envelope R-value Component Description (inside to outside) Existing Optimal Original Terminal Walls Precast concrete walls with 2” insulation R-12 R-24 Roof 4” concrete pan deck, 6” EPS insulation, roof membrane R-28 R-46 Floor Slab 4” Concrete slab-on-grade R-10 R-20 Perimeter Concrete footing with 2” rigid insulation R-10 R-15 Windows Aluminum frames, double pane R-1.5 R-3 Doors Metal frame w/o thermal break, double pane windows R-2 R-4 Tower Walls Metal panel walls with 1” insulation R-5 R-24 Roof Metal deck, thermal board, 2” PIC insulation; 3” XPS, membrane R-30 R-46 Floor Slab 4” Concrete slab-on-grade R-10 R-20 Perimeter Concrete footing with 2” rigid insulation R-10 R-15 Windows Aluminum frames, double pane R-1.5 R-3 Doors Metal frame w/o thermal break, double pane windows R-2 R-4 2004 Addition Walls Gyp. bd; metal studs with R-13 batt, gyp. bd.; stucco R-10 R-24 Roof 4” concrete pan deck, 6” EPS insulation, roof membrane R-28 R-46 Floor Slab 4” Concrete slab-on-grade R-10 R-20 Perimeter Concrete footing with 2” rigid insulation R-10 R-15 Windows Aluminum frames, double pane R-1.5 R-3 Doors Metal frame w/o thermal break, double pane windows R-2 R-4 Heating System The building is heated by two fuel oil boilers that provide heat to two ventilating units, cabinet unit heaters at entrances, and local hydronic heating units. The heating system has the following pumps: P-1 supplies the VU-1 heating coil. P-2 supplies the VU-2 heating coil. P-3 circulates heating water to the terminal heating units. P-4 circulates heating water to indirect domestic hot water heater DHW-1. P-5 circulates heating water to indirect domestic hot water heater DHW-1. Ventilation Systems Area Fan System Description Terminal VU-1 Constant volume multi-zone ventilating unit consisting of a mixing box, filter section, supply fan, hot/cold deck, bypass deck Terminal EF-1 Constant volume return fan serving VU-1 Tower VU-2 Constant volume ventilating unit consisting of a mixing box, filter section, heating coil, supply fan, cooling coil Tower EF-2 Constant volume return fan serving VU-2 Domestic Hot Water System Domestic hot water is provided by two indirect domestic hot water heaters located in the boiler room. Cooling Systems There are two roof-top mechanical cooling systems: one for VU-1 and one for VU-2. The kitchen prep area has a standup refrigerator and freezer unit. Control System A DDC control system controls the operation of the ventilating units. A pneumatic control system controls zone heating units. Lighting Interior lighting primarily consists of T8 and T12 fluorescent fixtures and incandescent fixtures. The lighting is inefficient but it supplies beneficial heat to the building at a lower cost than fuel oil boiler heat. Exterior lighting primarily consists of high pressure sodium, metal halide, and compact fluorescent fixtures. The exterior lighting utilizes both manual switching and photocell controls. The taxiway and runway have inefficient incandescent lighting. LED lighting upgrades are available. Section 5 Methodology Information for the energy audit was gathered through on-site observations, review of construction documents, and interviews with operation and maintenance personnel. The EEMs are evaluated using energy and life cycle cost analyses and are priority ranked for implementation. Energy Efficiency Measures Energy efficiency measures are identified by evaluating the building’s energy systems and comparing them to systems in modern, high performance buildings. The process for identifying the EEMs acknowledges the realities of an existing building that was constructed when energy costs were much lower. Many of the opportunities used in modern high performance buildings—highly insulated envelopes, variable capacity mechanical systems, heat pumps, daylighting, lighting controls, etc.—simply cannot be economically incorporated into an existing building. The EEMs represent practical measures to improve the energy efficiency of the buildings, taking into account the realities of limited budgets. If a future major renovation project occurs, additional EEMs common to high performance buildings should be incorporated. Life Cycle Cost Analysis The EEMs are evaluated using life cycle cost analysis which determines if an energy efficiency investment will provide a savings over a 25-year life. The analysis incorporates construction, replacement, maintenance, repair, and energy costs to determine the total cost over the life of the EEM. Future maintenance and energy cash flows are discounted to present worth using escalation factors for general inflation, energy inflation, and the value of money. The methodology is based on the National Institute of Standards and Technology (NIST) Handbook 135 – Life Cycle Cost Analysis. Life cycle cost analysis is preferred to simple payback for facilities that have long—often perpetual— service lives. Simple payback, which compares construction cost and present energy cost, is reasonable for short time periods of 2-4 years, but yields below optimal results over longer periods because it does not properly account for the time value of money or inflationary effects on operating budgets. Accounting for energy inflation and the time value of money properly sums the true cost of facility ownership and seeks to minimize the life cycle cost. Construction Costs The cost estimates are derived based on a preliminary understanding of the scope of each EEM as gathered during the walk-through audit. The construction costs for in-house labor are $60 per hour for work typically performed by maintenance staff and $110 per hour for contract labor. The cost estimate assumes the work will be performed as part of a larger renovation or energy efficiency upgrade project. When implementing EEMs, the cost estimate should be revisited once the scope and preferred method of performing the work has been determined. It is possible some EEMs will not provide a life cycle savings when the scope is finalized. Maintenance Costs Maintenance costs are based on in-house or contract labor using historical maintenance efforts and industry standards. Maintenance costs over the 25-year life of each EEM are included in the life cycle cost calculation spreadsheets and represent the level of effort to maintain the systems. Energy Analysis The energy performance of an EEM is evaluated within the operating parameters of the building. A comprehensive energy audit would rely on a computer model of the building to integrate building energy systems and evaluate the energy savings of each EEM. This investment grade audit does not utilize a computer model, so energy savings are calculated with factors that account for the dynamic operation of the building. Energy savings and costs are estimated for the 25-year life of the EEM using appropriate factors for energy inflation. Prioritization Each EEM is prioritized based on the life cycle savings to investment ratio (SIR) using the following formula: Prioritization Factor = Life Cycle Savings / Capital Costs This approach factor puts significant weight on the capital cost of an EEM, making lower cost EEMs more favorable. Economic Factors The following economic factors are significant to the findings.  Nominal Interest Rate: This is the nominal rate of return on an investment without regard to inflation. The analysis uses a rate of 5%.  Inflation Rate: This is the average inflationary change in prices over time. The analysis uses an inflation rate of 2.75%.  Economic Period: The analysis is based on a 25-year economic period with construction beginning in 2013. Fuel Oil Fuel oil currently costs $3.58 per gallon for a seasonally adjusted blend of #1 and #2 fuel oil. The analysis is based on 6% fuel oil inflation which has been the average for the past 20-years. Electricity Electricity is supplied by Ketchikan Public Utilities. The building is billed for electricity under their commercial service rate. This rate charges for both electrical consumption (kWh) and peak electric demand (kW). Electrical consumption is the amount of energy consumed and electric demand is the rate of consumption. Ketchikan Public Utilities Commercial Service Rate Electricity ($ / kWh ) $0.0897 Demand ( $ / kW ) $2.91 Customer Charge ( $ / mo ) $36.30 Summary The following table summarizes the energy and economic factors used in the analysis. Summary of Economic and Energy Factors Factor Rate or Cost Factor Rate or Cost Nominal Discount Rate 5% Electricity Current rates General Inflation Rate 2% Electricity Inflation 2.5% Fuel Oil Cost (2013) $3.79/gal Fuel Oil Inflation 6% Appendix A Energy and Life Cycle Cost Analysis Alaska Energy Engineering LLC Energy and Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 jim@alaskaenergy.us Ketchikan Airport Basis Economic Study Period (years) 25 Nominal Discount Rate 5%General Inflation 3% Energy 2011 $/gal Fuel Inflation 2012 $/gal Fuel Oil $3.58 6% $3.79 Electricity $/kWh (2011)$/kW (2011)Inflation $/kWh (2012)$/kW (2012) w/ Demand Charges $0.090 $2.91 2.5% $0.092 $2.98 w/o Demand Charges $0.095 -2.5% $0.097 - EEM-8: Adjust Boiler Thermostat Energy Analysis Annual Gal % Savings Savings, Gal 24,000 -1.0% -240 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs Adjust boiler thermostat 0 1 hr $60 $60 Energy Costs Fuel Oil 1 - 25 -240 gal $3.79 ($25,815) Net Present Worth ($25,800) EEM-9: Turn Off Standby Boiler Energy Analysis Boiler Input MBH Loss %Loss MBH Hours, exist Hours, new kBtu η boiler Gallons B-1 3,347 1%33 8,760 4,380 -146,599 68%-1,557 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs Establish operating procedure 0 16 hrs $60 $960 Annual Costs Turn off and isolate boilers 1 - 25 4 hrs $60.00 $4,628 Energy Costs Fuel Oil 1 - 25 -1,557 gal $3.79 ($167,429) Net Present Worth ($161,800) EEM-10: Perform Boiler Combustion Test Energy Analysis Annual Gal % Savings Savings, Gal 24,000 -1.5% -360 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs Purchase combustion analyzer 0 1 LS $700 $700 Annual Costs Clean boilers and perform combustion test 1 - 25 12 hrs $60.00 $13,884 Energy Costs Fuel Oil 1 - 25 -360 gal $3.79 ($38,722) Net Present Worth ($24,100) Alaska Energy Engineering LLC Energy and Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 jim@alaskaenergy.us Ketchikan Airport EEM-11: Upgrade Runway Lighting Energy Analysis Type # Fixtures Lamp Lamp, watts Fixture Watts Lamp Lamp, watts Fixture Watts Savings, kWh Runway 91 Inc 200 222 LED -44 -23,649 Lamp Replacement Type # Fixtures Lamp # Lamps Life, hrs Lamps//yr $ / lamp $ / Replace Runway 91 Inc -1 500 -797.16 $20 $15 Runway 91 LED 1 100,000 3.99 $130 $15 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs Replace taxiway fixtures 0 91 LS $590 $53,690 Estimating contingency 0 15%$8,054 Overhead & profit 0 30% $18,523 Design fees 0 10%$8,027 Project management 0 8%$7,063 Annual Costs Existing lamp replacement 1 - 25 -797.16 lamps $35.00 ($538,013) LED board replacement 1 - 25 3.99 LED board $145.00 $11,145 Energy Costs Electric Energy 1 - 25 -23,649 kWh $0.092 ($40,342) Net Present Worth ($471,900) Existing Replacement Alaska Energy Engineering LLC Energy and Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 jim@alaskaenergy.us Ketchikan Airport EEM-12: Optimize Exterior Terminal Lighting Energy Analysis Add Timer Type # Fixtures Lamp Lamp, watts Fixture Watts Hours, ex Hours, new Savings, kWh Surface 20 HPS 70 95 4,380 2,190 -4,161 Can 47 CFL 20 23 4,380 2,190 -2,367 -6,528 Upgrade Wall Paks Type # Fixtures Lamp Lamp, watts Fixture Watts Lamp Lamp, watts Fixture Watts Savings, kWh WallPak 3 MH 70 95 LED -30 -854 WallPak 1 HPS 150 190 LED -50 -613 WallPak 6 HPS 250 295 LED -75 -5,782 -7,249 Lamp Replacement Type # Fixtures Lamp # Lamps Life, hrs Lamps//yr $ / lamp $ / Replace WallPak 3 MH -1 12,000 -1.10 $42 $20 WallPak 1 HPS -1 24,000 -0.18 $40 $20 WallPak 6 HPS -1 24,000 -1.10 $50 $60 WallPak 3 LED 1 80,000 0.16 $125 $20 WallPak 1 LED 1 80,000 0.05 $190 $20 WallPak 6 LED 1 80,000 0.33 $200 $60 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs Replace WallPak: 70 watt MH with LED 0 3 LS $525 $1,575 Replace WallPak: 150 watt HPS with LED 0 1 LS $525 $525 Replace WallPak: 250 watt HPS with LED 0 1 LS $600 $600 Install timer and wire to appropriate circuits 0 1 LS $1,000 $1,000 Estimating contingency 0 15%$315 Overhead & profit 0 30%$1,205 Design fees 0 10%$522 Project management 0 8%$459 Annual Costs Existing lamp replacement, 70 watt MH 1 - 25 -1.10 lamps $62.00 ($1,309) Existing lamp replacement, 150 watt HPS 1 - 25 -0.18 lamps $60.00 ($211) Existing lamp replacement, 250 watt HPS 1 - 25 -1.10 lamps $110.00 ($2,323) LED board replacement, 40 watts 1 - 25 0.16 LED board $145.00 $459 LED board replacement, 80 watts 1 - 25 0.05 LED board $210.00 $222 LED board replacement, 106 watts 1 - 25 0.33 LED board $260.00 $1,647 Energy Costs Electric Energy 1 - 25 -13,777 kWh $0.092 ($23,502) Net Present Worth ($18,800) Existing Replacement Alaska Energy Engineering LLC Energy and Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 jim@alaskaenergy.us Ketchikan Airport EEM-13: Upgrade Taxiway Lighting Energy Analysis Type # Fixtures Lamp Lamp, watts Fixture Watts Lamp Lamp, watts Fixture Watts Savings, kWh Taxiway 141 Inc 45 56 LED -34 -4,529 Lamp Replacement Type # Fixtures Lamp # Lamps Life, hrs Lamps//yr $ / lamp $ / Replace Taxiway 141 Inc -1 1,500 -411.72 $12 $15 Taxiway 141 LED 1 100,000 6.18 $225 $15 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs Replace taxiway fixtures 0 141 LS $285 $40,185 Estimating contingency 0 15%$6,028 Overhead & profit 0 30% $13,864 Design fees 0 10%$6,008 Project management 0 8%$5,287 Annual Costs Existing lamp replacement 1 - 25 -411.72 lamps $27.00 ($214,361) LED board replacement 1 - 25 6.18 LED board $240.00 $28,581 Energy Costs Electric Energy 1 - 25 -4,529 kWh $0.092 ($7,726) Net Present Worth ($122,100) EEM-14: Upgrade Motors to Premium Efficiency Energy Analysis Equip Number HP ηold ηnew kW Hours kWh P-3 1 2 80.8% 86.5% -0.09 8,760 -745 EF-1 1 5 83.3% 89.5% -0.23 8,760 -2,026 VU-1 1 15 86.6% 92.4% -0.65 8,760 -5,685 -1.0 -8,456 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs HP Replace motor 2 0 1 LS 970 $970 Replace motor 5 0 1 LS 1,290 $1,290 Replace motor 15 0 1 LS 2,660 $2,660 Estimating contingency 0 15%$738 Overhead & profit 0 30%$1,697 Design fees 0 10%$736 Project management 0 8%$647 Energy Costs Electric Energy 1 - 25 -8,456 kWh $0.092 ($14,425) Electric Demand 1 - 25 -12 kW $2.98 ($641) Net Present Worth ($6,300) Existing Replacement Alaska Energy Engineering LLC Energy and Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 jim@alaskaenergy.us Ketchikan Airport EEM-15: Optimize Exterior Lighting Controls Energy Analysis Type # Fixtures Lamp Lamp, watts Fixture Watts Hours, ex Hours, new Savings, kWh Pole Mount 6 HPS 250 295 3,650 2,920 -1,292 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs Install photocell and integrate with timer 0 1 LS $1,000 $1,000 Estimating contingency 0 15%$150 Overhead & profit 0 30%$345 Design fees 0 10%$150 Project management 0 8%$132 Energy Costs Electric Energy 1 - 25 -1,292 kWh $0.092 ($2,204) Net Present Worth ($400) EEM-16: Install DHWRP Thermostat Control Energy Analysis Watts Hours,ex Hours, new kWh 60 8,760 2,920 -350 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs Thermostatic controller 0 1 ea $300 $300 Estimating contingency 0 15%$45 Overhead & profit 0 30%$104 Design fees 0 10%$45 Project management 0 8%$39 Energy Costs Electric Energy (Effective Cost)1 - 25 -350 kWh $0.097 ($633) Net Present Worth ($100) EEM-17: Replace Rollup Baggage Door Energy Analysis Component Area R,exist R,new ΔT MBH kBtu η boiler Gallons Rollup Door 12 0.50 3 20 -0.4 -3,504 68%-37 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs Replace overhead door 0 12 sqft $200 $2,400 Estimating contingency 0 15%$360 Overhead & profit 0 30%$828 Design fees 0 10%$359 Project management 0 8%$316 Energy Costs Fuel Oil 1 - 25 -37 gal $3.79 ($4,002) Net Present Worth $300 Alaska Energy Engineering LLC Energy and Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 jim@alaskaenergy.us Ketchikan Airport EEM-18: Increase Tower Wall Insulation Energy Analysis Component Area R,exist R,new ΔT MBH kBtu η boiler Gallons Wall 2,100 5 20 25 -7.9 -68,985 68%-732 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs Install wall insulation 0 2,100 sqft $10 $21,000 Relocate electrical boxes and other appurtenances 0 1 LS $20,000 $20,000 Gypsum Board 0 2,100 sqft $6 $12,600 Estimating contingency 0 15%$8,040 Overhead & profit 0 30% $16,080 Design fees 0 10%$7,772 Project management 0 8%$6,839 Energy Costs Fuel Oil 1 - 25 -732 gal $3.79 ($78,787) Net Present Worth $13,500 EEM-19: Increase Terminal Wall Insulation Energy Analysis Component Area R,exist R,new ΔT MBH kBtu η boiler Gallons Wall 13,000 12 22 25 -12.3 -107,841 68%-1,145 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs Install wall insulation and siding 0 13,000 sqft $14 $182,000 Estimating contingency 0 15% $27,300 Overhead & profit 0 30% $62,790 Design fees 0 10% $27,209 Project management 0 8% $23,944 Energy Costs Fuel Oil 1 - 25 -1,145 gal $3.79 ($123,164) Net Present Worth $200,100 Alaska Energy Engineering LLC Energy and Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 jim@alaskaenergy.us Ketchikan Airport EEM-20: Upgrade Interior Lighting Energy Analysis Electric Savings Fixture Number Hours Lamp Fixture Watts Lamp Fixture Watts kW kWh Fluorescent 514 5,824 2T12 92 LED 77 -7.7 -44,845 -7.7 -44,845 Additional Heating Load kWh Factor kBtu η boiler Gallons 44,845 50% 76,505 68% 812 Lamp Replacement Type # Fixtures Lamp # Lamps Life, hrs Lamps//yr $/lamp Labor/lamp Fluorescent 514 2T12 -2 20,000 -299 $3 $10.00 LED 514 LED 1 70,000 43 $20 $15.00 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs Replace 2T12 ballast and lamps with T8 0 354 LS $300 $106,200 Estimating contingency 0 15% $15,930.00 Overhead & profit 0 30% $36,639.00 Design fees 0 10% $15,877 Project management 0 8% $13,972 Annual Costs Existing lamp replacement, 2T12 1 - 25 -299 lamps $16.00 ($92,360) Lamp replacement, LED 1 - 25 43 lamps $35.00 $28,862 Energy Costs Electric Energy 1 - 25 -44,845 kWh $0.092 ($76,499) Electric Demand 1 - 25 -92 kW $2.98 ($5,113) Fuel Oil 1 - 25 812 gal $3.79 $87,376 Net Present Worth $130,900 EEM-21: Increase Addition Wall Insulation Energy Analysis Component Area R,exist R,new ΔT MBH kBtu η boiler Gallons Wall 1,200 10 25 25 -1.8 -15,768 68%-167 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs Install wall insulation and siding 0 13,000 sqft $14 $182,000 Estimating contingency 0 15% $27,300 Overhead & profit 0 30% $62,790 Design fees 0 10% $27,209 Project management 0 8% $23,944 Energy Costs Fuel Oil 1 - 25 -167 gal $3.79 ($18,008) Net Present Worth $305,200 Replacement SavingsExisting Appendix B Energy and Utility Data Alaska Energy Engineering LLC Billing Data 25200 Amalga Harbor Road Tel/Fax: 907-789-1226 Juneau, Alaska 99801 jim@alaskaenergy.us Ketchikan Airport Terminal ELECTRIC RATE Ketchikan Public Utilities Commercial Service Electricity ($ / kWh )$0.0897 Cost of Power Adjustment ($ / kWh)$0.0000 Demand ( $ / kW )$2.91 Customer Charge ( $ / mo )$36.30 Sales Tax ( % )0.0% ELECTRICAL CONSUMPTION AND DEMAND kWh kW kWh kW kWh kW kWh kW Jan 94,600 154 85,400 154 79,300 154 75,900 154 83,800 Feb 82,400 156 73,200 156 90,000 156 82,200 156 81,950 Mar 76,900 148 78,500 148 68,700 148 73,900 148 74,500 Apr 97,100 146 82,200 146 72,300 146 67,300 146 79,725 May 69,500 135 80,700 135 79,000 135 63,900 135 73,275 Jun 90,100 144 81,700 144 71,300 144 70,600 144 78,425 Jul 81,600 138 79,200 138 78,400 138 75,600 138 78,700 Aug 82,700 138 80,300 138 81,200 138 91,100 138 83,825 Sep 79,600 155 90,100 155 73,600 155 86,600 155 82,475 Oct 92,700 149 72,300 149 81,900 149 67,700 149 78,650 Nov 78,200 149 90,600 149 71,000 149 81,600 149 80,350 Dec 91,400 147 76,700 147 71,000 147 72,800 147 77,975 Total 1,016,800 970,900 917,700 909,200 953,650 Average 84,733 147 80,908 147 76,475 147 75,767 147 79,471 Load Factor 79%76%71%71%147 ELECTRIC BILLING DETAILS Month Energy Demand Cust & Tax Total Energy Demand Cust & Tax Total % Change Jan $7,113 $375 $36 $7,525 $6,808 $375 $36 $7,220 -4.1% Feb $8,073 $381 $36 $8,491 $7,373 $381 $36 $7,791 -8.2% Mar $6,162 $358 $36 $6,557 $6,629 $358 $36 $7,023 7.1% Apr $6,485 $352 $36 $6,874 $6,037 $352 $36 $6,425 -6.5% May $7,086 $320 $36 $7,443 $5,732 $320 $36 $6,088 -18.2% Jun $6,396 $346 $36 $6,778 $6,333 $346 $36 $6,715 -0.9% Jul $7,032 $329 $36 $7,398 $6,781 $329 $36 $7,146 -3.4% Aug $7,284 $329 $36 $7,649 $8,172 $329 $36 $8,537 11.6% Sep $6,602 $378 $36 $7,017 $7,768 $378 $36 $8,183 16.6% Oct $7,346 $361 $36 $7,744 $6,073 $361 $36 $6,470 -16.4% Nov $6,369 $361 $36 $6,766 $7,320 $361 $36 $7,717 14.1% Dec $6,369 $355 $36 $6,760 $6,530 $355 $36 $6,921 2.4% Total $ 82,318 $ 4,246 $ 436 $ 86,999 $ 81,555 $ 4,246 $ 436 $ 86,237 -0.9% Average $ 6,860 $ 354 $ 36 $ 7,250 $ 6,796 $ 354 $ 36 $ 7,186 -0.9% Cost ($/kWh)$0.095 95% 5% 1% $0.095 0.1% Electrical costs are based on the current electric rates. 2010 2011 2011Month200820092010 Average Alaska Energy Engineering LLC Annual Electric Consumption 25200 Amalga Harbor Road Tel/Fax: 907-789-1226 Juneau, Alaska 99801 jim@alaskaenergy.us Ketchikan Airport Terminal 0 20,000 40,000 60,000 80,000 100,000 120,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecElectric Use (kWh)Month of the Year Electric Use History 2008 2009 2010 2011 0 20 40 60 80 100 120 140 160 180 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecElectric Demand (kW)Month of the Year Electric Demand History 2008 2009 2010 2011 Alaska Energy Engineering LLC Electric Cost 25200 Amalga Harbor Road Tel/Fax: 907-789-1226 Juneau, Alaska 99801 jim@alaskaenergy.us Ketchikan Airport Terminal $ 0 $ 1,000 $ 2,000 $ 3,000 $ 4,000 $ 5,000 $ 6,000 $ 7,000 $ 8,000 $ 9,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecElectric Cost (USD)Month of the Year Electric Cost Breakdown 2010 Electric Use (kWh) Costs Electric Demand (kW) Costs Customer Charge and Taxes 120 125 130 135 140 145 150 155 160 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Electric Demand (kW)Electric Use (kWh)Month of the Year Electric Use and Demand Comparison 2010 Electric Use Electric Demand Alaska Energy Engineering LLC Annual Fuel Oil Consumption 25200 Amalga Harbor Road Tel/Fax: 907-789-1226 Juneau, Alaska 99801 jim@alaskaenergy.us Ketchikan Airport Terminal Year Fuel Oil Degree Days 2007 25,775 7,430 2008 24,204 7,385 2009 21,460 7,538 2010 23,923 7,390 Average 23,841 7,436 5,000 5,500 6,000 6,500 7,000 7,500 8,000 0 5,000 10,000 15,000 20,000 25,000 30,000 2007 2008 2009 2010 Degree DaysGallons of Fuel OilYear Annual Fuel Oil Use Fuel Oil Degree Days Alaska Energy Engineering LLC Billing Data 25200 Amalga Harbor Road Tel/Fax: 907-789-1226 Juneau, Alaska 99801 jim@alaskaenergy.us Annual Energy Consumption and Cost Energy Cost $/MMBtu Area ECI EUI Fuel Oil $3.58 $36.93 32,600 $5.39 199 Electricity $0.095 $29.26 Source Cost Electricity 953,650 kWh $90,500 3,300 51% Fuel Oil 23,841 Gallons $85,300 3,200 49% Totals $175,800 6,500 100% Annual Energy Consumption and Cost Consumption Energy, MMBtu $0 $5 $10 $15 $20 $25 $30 $35 $40 Fuel Oil ElectricityCost $ / MMBtuCost of Heat Comparison Appendix C Equipment Data Motor HP / Volts / η B-1 Boiler Room Building Heat Cleaver Brooks CB100-80 2,800 MBH B-2 Boiler Room Building Heat Cleaver Brooks CB100-80 2,800 MBH P-4 Boiler Room Domestic Hot Water Grundfos UP26-64 185 watt / 120V P-5 Boiler Room Domestic Hot Water Grundfos UP26-64 185 watt / 120V P-3 Boiler Room Hydronic Heat B&G Series 80 160 @ 30' 2 / 208V / 78.5% VU-1 Fan Room Terminal Ventilation Pace B-22 FC 23,425 cfm @ 1.5" 15 / 208V / 87.5% P-1 Fan Room VU-1 Heating Coil B&G Series 80 95 gpm @ 45' 3 / 208V / 85% EF-1 Fan Room VU-1 Return/Relief Fan Pace U-36 FC 19,190 cfm @ 0.625" 5 / 208V / 82.5% EF-2 Fan Room VU-1 Return/Relief Fan Pace A-15 FC 2,620 cfm @ 0.5" 0.5 / 120V / 70% A/C -1 Roof Cooling for VU-1 Carrier Gemini 38AK5044 SF-1 Roof Stairwell Smoke Control Team SF-1 4,000 cfm @ 0.5" 1.5 / 208V / 73% EF-5 Roof Toilet Exhaust 1,800 cfm @ 0.5" 0.5 / 120V / 70% VU-2 Tower Tower Ventilation Pace A-12 FC 3,015 cfm @ 1.5" 2 / 208V / 80.5% P-2 Tower VU-2 Heating Coil B&G Series 80 32 gpm @ 26' 0.5 / 120V / 70% Major Equipment Inventory - Ketchikan Airport CapacityUnit ID Location Function Make Model Appendix D Abbreviations AHU Air handling unit BTU British thermal unit BTUH BTU per hour CMU Concrete masonry unit CO2 Carbon dioxide CUH Cabinet unit heater DDC Direct digital controls DHW Domestic hot water EAD Exhaust air damper EEM Energy efficiency measure EF Exhaust fan Gyp Bd Gypsum board HVAC Heating, Ventilating, Air- conditioning HW Hot water HWRP Hot water recirculating pump KVA Kilovolt-amps kW Kilowatt kWh Kilowatt-hour LED Light emitting diode MBH 1,000 Btu per hour MMBH 1,000,000 Btu per hour OAD Outside air damper PSI Per square inch PSIG Per square inch gage RAD Return air damper RF Return fan SIR Savings to investment ratio SF Supply fan UV Unit ventilator VAV Variable air volume VFD Variable frequency drive E5 – High School Energy Audit Ketchikan High School Ketchikan Gateway Borough School District Funded by: Final Report October 2011 Prepared by: Energy Audit Table of Contents Section 1: Executive Summary 2  Section 2: Introduction 8  Section 3: Energy Efficiency Measures 10  Section 4: Description of Systems 20  Section 5: Methodology 24  Energy and Life Cycle Cost Analysis 27 Appendix A: Energy and Utility Data 38 Appendix B: Equipment Data 44 Appendix C: Abbreviations 50 Appendix D: Audit Team The energy audit is performed by Alaska Energy Engineering LLC of Juneau, Alaska. The audit team consists of:  Jim Rehfeldt, P.E., Energy Engineer  Jack Christiansen, Energy Consultant  Brad Campbell, Energy Auditor  Loras O’Toole P.E., Mechanical Engineer  Will Van Dyken P.E., Electrical Engineer  Curt Smit, P.E., Mechanical Engineer  Philip Iverson, Construction Estimator  Karla Hart, Technical Publications Specialist  Jill Carlile, Data Analyst  Grayson Carlile, Energy Modeler Section 1 Executive Summary An energy audit of the Ketchikan High School was performed by Alaska Energy Engineering LLC. The investment grade audit was funded by Alaska Housing Finance Corporation (AHFC) to identify opportunities to improve the energy performance of public buildings throughout Alaska. Ketchikan High School is a 180,614 square foot building that contains offices, classrooms, commons, a library, a gym and auxiliary gym, an auditorium, shop and art spaces, and mechanical support spaces. Building Assessment The following summarizes our assessment of the building. Envelope The exterior of the building appears to have been well maintained and should provide many more years of service. Of particular interest was the newly completed re-roofing project that covered the majority of the building. The project showed good attention to detail, to include a reduction in the number of roof penetrations that often lead to integrity failures. The audit team was also informed that the roofing contractor had uncovered, identified, and successfully repaired a significant air leakage path around the perimeter of every one of the newly roofed spaces. In addition to this improvement to the building envelop integrity, additional insulation was added to the roof to increase the average insulation value of the tapered roof system to R-34. While this was an improvement over the previous roof insulation value, it is recommended that future roofing projects target the high performance building standard for roofing insulation of R-46 based on an optimization for life cycle cost. The Humanity Wing roof was also recently replaced using an Inverted Roof Membrane Assembly (IRMA). This style roof typically has an initial waterproof layer such as EPDM, then a layer of foam insulation, then a fabric cloth cover then an LG board – a thinner layer of foam adhered to a roofing paver. The Humanity Wing utilized a base layer of foam that was approximately 4” thick at the inspected roof drain with 2” layer of foam on the underside of the LG board. The 6” total thickness at the inspected location would normally produce an insulation value of R-24 with the use of the expanded polystyrene foam, however it has been determined that the IRMA is a flawed system that is particularly ineffective and inefficient in Southeast Alaska. This is because the IRMA allows water to flow between the layers of insulation to the waterproof membrane below before it flows to the roof drains. This presents a two-fold problem. First, the expanded foam eventually becomes waterlogged and loses some of its insulating properties. Secondly, any outdoor temperature water moving through the foam against the warm roof surface below will remove heat as it travels to the roof drain. In a climate such as Ketchikan’s, imagine the number of days/year that the roof and underside of the ceiling is being cooled to the temperature of the rain water. That number is simply the number of rainy days/year. A similar roof is also used on the 2nd floor south facing balcony at the building entrance. A life cycle cost analysis for replacement of the Humanity Wing roof with a tapered roof system buildup to optimum insulation levels is outlined in Section 3, Energy Efficiency Measure 25. The exterior tile wall surface appears to be problematic due to a lack of backer-board to provide additional support to the tile when it is impacted by an object. Without the backer board, impact results in a broken tile. The main entry double door system appears to be serving the facility well. The middle column provides two opportunities for weather stripping to properly seal the door, a design that is far superior to that used on similar applications. The windows of the school are failing at an unacceptable rate. Maintenance staff believes that the original window glazing is failing due to flexing of the internal and external panes. This may be due to an excessive gap between the panes or the glazing being too thin for the applied external forces. Solar gain and wind are two such forces. The larger the air gap between the panes, the greater the amount of potential expansion and contraction. An additional potential cause for failure is the expansion and contraction of the aluminum frames themselves. The failed windows were replaced by windows manufactured locally with a smaller air gap between the internal and external panes. The audit team was informed by maintenance staff that the new windows were also routinely failing. Maintenance staff replaced 51 windows last year alone and it appeared at the time of the audit that there were 10 more that had failed since. While aluminum is the material of choice by many architects for window wall curtains such as in the lobby and library, it has one of the poorest performances from the perspective of energy conservation due to high thermal conductivity of the aluminum and its ability to transfer heat from the interior spaces to the outside through the window frames. The insulation value for these large window curtains could be as low as R-1. If a simple solution to this reoccurring problem is not found, such as a window replacement with slightly smaller window dimensions, then an excellent opportunity exists to replace the windows with smaller, more energy efficient units. The exterior doors are not thermally broken. Future exterior door replacement selection should include this feature. Weather-stripping on a high percentage of the exterior doors is in need of replacement. Heating System The building is heated by three fuel oil boilers that provide heat to thirteen air handling unit systems, fan coil units, perimeter hydronic systems, and cabinet unit heaters in the humanity wing. At the time of the audit Boiler #1 was running and the remaining two boilers were on-line and not isolated. Circulating heating water through a non-necessary boiler results in a significant amount of heat loss. The boilers are reported to be significantly oversized—one boiler is capable of heating the building on all but the coldest days. All boilers have jacket losses and cycling losses from turning on and off; oversized boilers have greater losses with no benefit. Electric heating is less expensive when surplus hydroelectric power exists. Adding an electric boiler will utilize the cost advantage and provide a more efficient heating plant for warm days when loads are small. The pumping system does not utilize variable speed pumping to reduce energy costs. There is no incentive to convert due to the large number of three-way valves in the systems. The remainder of the fuel oil boiler heating system appears to be in good condition; however fairly simple improvements can be made to improve its effectiveness and efficiency. These are outlined in Section 3, Energy Efficiency Measures. Ventilation System The building ventilation systems consist of thirteen large air handling units located in four fan rooms. In addition to the large air handling units there are five return fans and thirty four exhaust fans mounted throughout the building and on the roof top for the purposes of cooling spaces, improving building air quality, and kitchen operations. The overall condition of the systems is good, however issues include:  HVAC systems could be optimized to reduce ventilation and fan power through control sequence modifications. Once optimization is achieved then a retro-commissioning should be performed on all HVAC systems to integrate operations and further increase efficiencies.  AHU-1 supply fan is improperly aligned. Short-circuiting of supply air flow due to an approximately 3” gap between the fan and housing is reducing the air flow supplied by the unit while maintaining full electrical demand of the 60 HP motor  The cooling system for the building was removed, but all of the cooling coils still remain in the AHU systems. Removal of these unnecessary cooling coils will decrease the pressure that the supply fans are operating against.  The fan schedules were found to be inconsistent with the occupancy and use of the building. This is true of both the school-year and the summer season. There is opportunity to fine-tune the schedules and reduce energy consumption.  AHU-1 operates whenever functions occur in the gymnasium and auditorium. This system supplies the lobby and several school wings with a high rate of outside air flow. Reducing the operating hours of the system and the volume of outside air flow when it is operating will significantly reduce energy costs.  The Humanity Wing does not recirculate building air, but instead heats full outside air whenever it operates. A significant amount of energy would be saved if a large portion of conditioned air was re-circulated.  The fan belt guard had been removed and had not been replaced on AHU-11. Ventilation system capacity is determined by the amount of air flow needed to cool the building on the hottest day. The ventilation systems are oversized for a school building with no summer operation and located in a temperate rain forest climate. The existing peak air flow rate of 1.25 cfm/sqft is much higher than a more appropriate rate of 0.75 to 1.0 cfm/sqft. The existing continuous exhaust air requirement for the building is 29,000 cfm, which the ventilation systems must makeup with outside air. For the current population of 600 students and staff, the building ventilation rate is 48 cfm/person, more than 3 times the required rate of approximately 15 cfm/person. Typically, the heating of ventilation air is 60% to 80% of the building heating load, so there is substantial incentive to scrutinize and reduce exhaust air flows, which would allow a reduction in the ventilation air requirement, and save energy. To reduce energy consumption, it is recommended that the ventilation systems be tailored to the actual use, function, and occupancy, optimal control sequences be implemented, and the systems retro-commissioned. Opportunities include:  Modify AHUs where applicable to operate as variable air systems with the addition of variable frequency drives  Verify CO2 sensor controls and sequences to the associated space AHUs so that air flow can be reduced to save energy while maintaining healthy air quality within those spaces. CO2 sensors have been added to AHU-1, 2, 5, 6, 7, 8, 12, and 13.  Reduce the continuous exhaust air requirement for the school by reducing exhaust air flow from toilet rooms and other exhaust areas. Consider variable exhaust flow for toilet rooms to increase air flow when a room is in use.  Optimize schedules. The current schedules appear to have unneeded operating hours and are not tailored to the current building use.  Perform an integrated building-wide retro-commissioning upon implementation of optimization of control sequences. Cooling Systems There are two computer IT rooms that are cooled by mechanical cooling systems that reject the heat outdoors. The heat is generated continuously; recovering the heat will reduce the heating load on the boilers. Control System The building control system is a combination of pneumatic and electric components. Many of the original pneumatic system components are being replaced by outside contractors and maintenance staff. Upon completion of pneumatic component replacement, optimal control sequences should be implemented and the systems retro-commissioned to ensure proper operation. Lighting Interior lighting consists primarily of T5, T8, and compact fluorescent fixtures. Exterior lighting consists primarily of compact fluorescent and metal halide lighting. The maintenance staff have done an outstanding job of reducing energy consumption through lighting modifications. The interior lighting and all exterior lighting is controlled by staff and by photocells in a manner that minimizes lighting operational hours. Opportunities to further reduce lighting loads include the replacement of the metal halide lighting in the automotive bay and woodshop, the perimeter wall pack units, and the parking lot lighting. An excellent selection for replacement is the induction lighting systems that Dale Reed has already used on other applications. These fixtures will reduce energy consumption by approximately 50%. Summary It is the assessment of the energy audit team that the greatest potential for reducing energy consumption is through proper scheduling and right-sizing of the heating and ventilation systems. A building optimization analysis is recommended in which the building systems are reconfigured and optimized for the actual use. The analysis should evaluate if there is incentive to install electric boilers to take advantage of favorable electric rates when there is low-cost hydroelectric power. Integrating the four phases of construction through a building-wide commissioning effort is a necessary step towards improving the indoor air quality, thermal comfort, and energy efficiency of the building. While a complete optimization analysis is beyond the scope of this energy audit, several EEMs show that there is considerable financial incentive to tailor the systems to the actual building use. Energy Efficiency Measures (EEMs) All buildings have opportunities to improve their energy efficiency. The energy audit revealed numerous opportunities in which an efficiency investment will result in a net reduction in long-term operating costs at the Ketchikan High School. Behavioral and Operational EEMs The following EEMs require behavioral and operational changes in the building use. The savings are not readily quantifiable but these EEMs are highly recommended as low-cost opportunities that are a standard of high performance buildings. EEM-1: Weather-strip Doors EEM-2: Replace Failed Window Glazing EEM-3: Align AHU-1 Supply Fan EEM-4: Evaluate Electric Heating The summary table of high and medium Priority Energy Efficiency Measures recommended for the Ketchikan High School follows on the next page. High and Medium Priority EEMs The following EEMs are recommended for investment. They are ranked by life cycle savings to investment ratio (SIR). This ranking method places a priority on low cost EEMs which can be immediately funded, generating energy savings to fund higher cost EEMs in the following years. Negative values, in parenthesis, represent savings. 25-Year Life Cycle Cost Analysis Investment Operating Energy Total SIR High Priority EEM-5: Reduce HVAC System Operating Hours $8,900 $0 ($1,652,000) ($1,643,100) 185.6 EEM-6: Isolate Lag/Standby Boilers $5,000 $16,300 ($375,600) ($354,300) 71.9 EEM-7: Perform Boiler Combustion Test $1,000 $6,100 ($70,300) ($63,200) 64.2 EEM-8: Optimize AHU-1 System $8,900 $0 ($516,500) ($507,600) 58.0 EEM-9: Modify Boiler Burner Controls $5,000 $0 ($105,500) ($100,500) 21.1 EEM-10: Optimize AHU-13 System $29,300 $0 ($535,500) ($506,200) 18.3 EEM-11: Optimize AHU-12 System $12,400 $0 ($181,100) ($168,700) 14.6 EEM-12: Electrical Room 8 Heat Recovery $9,800 $900 ($134,700) ($124,000) 13.7 EEM-13: Replace Aerators and Showerheads $3,000 $0 ($34,300) ($31,300) 11.4 EEM-14: Optimize AHU-8 System $41,700 $0 ($422,400) ($380,700) 10.1 EEM-15: Install Flue Dampers $6,400 $5,100 ($56,600) ($45,100) 8.0 EEM-16: Electric Room 208 Heat Recovery $13,500 $5,100 ($86,900) ($68,300) 6.1 EEM-17: Optimize AHU-7 System $29,300 $0 ($142,000) ($112,700) 4.8 EEM-18: Optimize AHU-3 and AHU-4 $126,800 $3,400 ($516,000) ($385,800) 4.0 EEM-19: Remove Chilled Water AHU Coils $2,000 ($3,100) ($4,600) ($5,700) 3.9 EEM-20: Install Boiler Room Heat Recovery $87,000 $4,300 ($336,800) ($245,500) 3.8 EEM-21: Rooms 151 & 131 Heat Recovery $86,100 $5,100 ($253,300) ($162,100) 2.9 Medium Priority EEM-22: Install Auto Valves on Unit Heaters $7,100 $0 ($19,300) ($12,200) 2.7 EEM-23: Upgrade Transformers $140,400 $0 ($171,700) ($31,300) 1.2 EEM-24: Upgrade Motors $22,000 $0 ($22,700) ($700) 1.0 Totals* $645,600 $43,200 ($5,637,800) ($4,949,000) 8.7 *The analysis is based on each EEM being independent of the others. While it is likely that some EEMs are interrelated, an isolated analysis is used to demonstrate the economics because the audit team is not able to predict which EEMs an Owner may choose to implement. If several EEMs are implemented, the resulting energy savings is likely to differ from the sum of each EEM projection. Summary The energy audit revealed numerous opportunities for improving the energy performance of the building. It is recommended that the behavioral and high priority EEMs be implemented now to generate energy savings from which to fund the medium priority EEMs. Another avenue to consider is to borrow money from AHFCs revolving loan fund for public buildings. AHFC will loan money for energy improvements under terms that allow for paying back the money from the energy savings. More information on this option can be found online at http://www.ahfc.us/loans/akeerlf_loan.cfm. Section 2 Introduction This report presents the findings of an energy audit of Ketchikan High School located in Ketchikan, Alaska. The purpose of this investment grade energy audit is to evaluate the infrastructure and its subsequent energy performance to identify applicable energy efficiencies measures (EEMs). The energy audit report contains the following sections:  Introduction: Building use and energy consumption.  Energy Efficiency Measures: Priority ranking of the EEMs with a description, energy analysis, and life cycle cost analysis.  Description of Systems: Background description of the building energy systems.  Methodology: Basis for how construction and maintenance cost estimates are derived and the economic and energy factors used for the analysis. BUILDING USE The Ketchikan High School is a 180,614 square foot building that contains offices, classrooms, commons, a library, a gym and auxiliary gym, an auditorium, shop and art spaces, and mechanical support spaces. The building is occupied by 560 students and 40 staff members. It is occupied in the following manner: Offices & Commons: 6:00 am – 9:00 pm (M-F) Kitchen 6:00 am – 12:00 pm (M-F) Classrooms: 7:30 am - 3:30 pm (M-F) - lighting controlled by teachers Main Gym 6:00 am – 9:00 pm (M-F) 30-40 people Auxiliary Gym 3:00 pm – 9:00 pm Auditorium 12:00 pm – 10:30 pm (Mon and Thur) 600 people – 8x per year Building History The building was fully renovated in four phases from 1994 to 1996. Subsequent improvements from an energy perspective included complete mechanical and electric system replacements, in-house interior lighting upgrades, roof replacement to the Humanity’s Wing in 2005, and a roof renovation of the remainder of the building in 2011. Energy Consumption The building energy sources include an electric service and a fuel oil tank. Fuel oil is used for the majority of the heating loads and domestic hot water while electricity serves all other loads and a limited amount of space heating. The following table shows annual energy use and cost. Annual Energy Consumption and Cost Source Consumption Cost Energy, MMBtu Electricity 1,979,000 kWh $192,100 6,800 27% Fuel Oil 134,900 Gallons $461,400 18,300 73% Totals $653,500 25,100 100% Electricity This chart shows electrical energy use from 2007 to 2010. The staff was unable to offer insight into the reason for the monthly fluctuations in energy use. The effective cost—energy costs plus demand charges—is 9.7¢ per kWh. Fuel Oil This chart shows heating energy use from 2007 to 2010. The chart compares annual use with the heating degree days which is a measurement of the demand for energy to heat a building. A year with a higher number of degree days reflects colder outside temperatures and a higher heating requirement. The current cost of fuel oil in Ketchikan is $3.47 per gallon. Assuming a fuel oil conversion efficiency of 70% and an electric boiler conversion efficiency of 95%, oil heat at $3.47 per gallon equates to $35.79 per MMBtu. Since the current cost of electricity at 9.7¢ per kWh equates to $29.95 per MMBtu, electric heat is less expensive than fuel oil heat. Section 3 Energy Efficiency Measures The following energy efficiency measures (EEMs) were identified during the energy audit. The EEMs are priority ranked and, where applicable, subjected to energy and life cycle cost analysis. Appendix A contains the energy and life cycle cost analysis spreadsheets. The EEMs are grouped into the following prioritized categories:  Behavioral or Operational: EEMs that require minimal capital investment but require operational or behavioral changes. The EEMs provide a life cycle savings but an analysis is not performed because the guaranteed energy savings is difficult quantify.  High Priority: EEMs that require a small capital investment and offer a life cycle savings. Also included in this category are higher cost EEMs that offer significant life cycle savings.  Medium Priority: EEMs that require a significant capital investment to provide a life cycle savings. Many medium priority EEMs provide a high life cycle savings and offer substantial incentive to increase investment in building energy efficiency.  Low Priority: EEMs that will save energy but do not provide a life cycle savings. BEHAVIORAL OR OPERATIONAL The following EEMs are recommended for implementation. They require behavioral or operational changes that can occur with minimal investment to achieve immediate savings. These EEMs are not easily quantified by analysis because they cannot be accurately predicted. They are recommended because they offer a life cycle savings, represent good practice, and are accepted features of high performance buildings. EEM-1: Weather-strip Doors Purpose: The weather stripping on many of the single-wide exterior doors is in poor condition. Energy will be saved if doors are properly weather-stripped to reduce infiltration. Scope: Replace weather stripping on exterior doors. EEM-2: Replace Failed Window Glazing Purpose: An unacceptably high number of window glazing units have failed at the high school. Although 51 glazing units were replaced last year, an additional 10 window glazing assemblies have since failed. Energy will be saved if the failed units are replaced. Scope: Replace failed glazing sections. EEM-3: Align AHU-1 Supply Fan Purpose: The AHU-1 supply fan is improperly aligned. The supply air flow is short-circuiting through an approximately 3” gap between the fan and housing — recirculating air back to the fan cabinet while maintaining full electrical demand of the 60 HP motor. Scope: Properly align AHU-1 supply fan on the shaft. EEM-4: Evaluate Electric Heating Purpose: Energy will be saved if an electric boiler is installed to shift the heating load from oil to electricity when there is surplus hydroelectric power. Scope: Perform an analysis to determine if there is sufficient hydroelectric resource to invest in an electric boiler to heat the building. Electric heat is currently less expensive than fuel oil heat. With fuel oil inflation also predicted to be higher than electricity inflation, shifting 75% of the current fuel oil consumption to electric could have a life cycle savings of $4.9 million dollars. HIGH PRIORITY The following EEMs are recommended for implementation because they are low cost measures that have a high savings to investment ratio. The EEMs are listed from highest to lowest priority. Negative values, in parenthesis, represent savings. EEM-5: Reduce HVAC System Operating Hours Purpose: The HVAC systems average 3,000 occupied mode operating hours per year. While operating hours are rightly determined based on school and community use of the building, this is significantly higher than the average of 1,600-2,400 hours for high school. Energy will be saved if the operating schedules are reviewed and adjusted to minimize the operating hours for the systems. Scope: Optimize operating schedules. The following analysis is based on reducing fan system occupied mode operation to 2,200 hours per year. Annual Costs Life Cycle Costs Operating Energy Total Investment Operating Energy Total SIR $0 ($67,010) ($67,010) $8,900 $0 ($1,652,000) ($1,643,100) 185.6 EEM-6: Isolate Lag/Standby Boilers Purpose: Only one boiler is needed to heat the building; however the other two remain on-line and hot. In addition, the boilers are not turned off during the summer months when heating requirements are very low. Circulating hot water through an isolated boiler in a multiple boiler system can result in efficiency loss due to the isolated boilers acting as heat sinks. Energy will be saved by turning off the boilers in the summer and isolating the lag/standby boilers during the shoulder seasons. Scope: Isolate the lag/standby boilers during the shoulder seasons and turn off the boilers during the summer months. Annual Costs Life Cycle Costs Operating Energy Total Investment Operating Energy Total SIR $960 ($13,250) ($12,290) $5,000 $16,300 ($375,600) ($354,300) 71.9 EEM-7: Perform a Boiler Combustion Test Purpose: Operating the boiler with an optimum amount of excess air will improve combustion efficiency. Annual cleaning followed by a combustion test is recommended. Scope: Annually clean and perform a combustion test on the boiler. Annual Costs Life Cycle Costs Operating Energy Total Investment Operating Energy Total SIR $360 ($2,480) ($2,120) $1,000 $6,100 ($70,300) ($63,200) 64.2 EEM-8: Optimize AHU-1 System (Lobby, Classrooms) Purpose: The AHU-1 system has excessive outside air and exhaust air flows. Energy will be saved if AHU-1 control sequences and air flows are optimized to ensure the system is operating as efficiently as possible. Scope: Optimize AHU-1 as follows: - Reduce the minimum outside air volume by reducing the minimum outside air requirement for the science fume hoods and the exhaust fan make-up. The analysis is based on reducing the fume hood makeup from all fans to two fans operating concurrently. The toilets rooms have sporadic heavy use between classes but are lightly used much of the time. The analysis reduces the air exchange from 7.5 minutes per change to 10 minutes per change. - Reduce Operating Hours: The system operates with the auditorium and gym during non-school hours. We recommend not operating the system during these periods unless the commons is heavily used. - Modify the RF-1 pressure controls to preclude unnecessary exhaust of return air from the building. - Optimize the night setback. Operating Energy Total Investment Operating Energy Total SIR $0 ($18,220) ($18,220) $8,900 $0 ($516,500) ($507,600) 58.0 EEM-9: Modify Boiler Burner Controls Purpose: The existing boiler burners do not properly modulate to increase the cycle time and decrease the number of cycles. The DDC system starts the burners on low fire, quickly modulates them up to high fire, and then overshoots the setpoint. Adjusting the DDC response rate using a rate-of-rise control is necessary to keep from ramping up the burner when the boiler is gaining on loop temperature. Energy will be saved if the DDC burner control is set up to monitor the rate of rise so it does not overshoot its setpoint. Scope: Modify the DDC control sequence to increase cycle run time. Annual Costs Life Cycle Costs Operating Energy Total Investment Operating Energy Total SIR $0 ($3,720) ($3,720) $5,000 $0 ($105,500) ($100,500) 21.1 EEM-10: Optimize AHU-13 System (Vocational Education) Purpose: The mixed air temperature control on AHU-13 is set at 50°F, which is bringing in more outside air than required. Energy will be saved if a direct-measure outside air damper is installed and the outside air flow reduced to match the exhaust air requirement. Scope: Optimize AHU-13 as follows: - Install direct-measure outside air damper. - Modulate the exhaust air damper with building pressure. - Optimize the schedules. - Optimize the night setback. Operating Energy Total Investment Operating Energy Total SIR $0 ($18,890) ($18,890) $29,300 $0 ($535,500) ($506,200) 18.3 EEM-11: Optimize AHU-12 System (Gym Lockers) Purpose: The lockers exhaust air flow rate is excessive due to minimal use of showers by the students. Energy will be saved if the exhaust air flow is reduced and a direct-measure outside air damper is installed so the outside air flow is constant. Scope: Optimize AHU-12 as follows: - Reduce locker room exhaust air flow. - Reduce outside air by installing a direct measure outside air damper. - Modulate the exhaust air damper with building pressure. - Optimize the schedules. - Optimize the night setback. Operating Energy Total Investment Operating Energy Total SIR $0 ($6,390) ($6,390) $12,400 $0 ($181,100) ($168,700) 14.6 EEM-12: Electrical Room 8 Heat Recovery Purpose: The electrical room has a 225 kVA transformer in the space. The room has a 1,500 cfm exhaust grille which highly over-exhausts the room, transferring more heat from the building than the transformer produces. Energy will be saved if the heat generated from these transformers is transferred to the AHU-1 return air plenum. Scope: Cap the existing exhaust grille and rebalance the exhaust fan. Install a transfer fan to supply the warm air from the electric room to the AHU-1 return air plenum. Operating Energy Total Investment Operating Energy Total SIR $50 ($4,750) ($4,700) $9,800 $900 ($134,700) ($124,000) 13.7 EEM-13: Replace Aerators and Showerheads Purpose: Energy and water will be saved by replacing the lavatory aerators and showerheads with low-flow models. Scope: Replace lavatory aerators and showerheads with water-conserving fixtures. Annual Costs Life Cycle Costs Operating Energy Total Investment Operating Energy Total SIR $0 ($1,960) ($1,960) $3,000 $0 ($34,300) ($31,300) 11.4 EEM-14: Optimize AHU-8 System (Auxiliary Gym) Purpose: AHU-8 is controlling to a 55°F mixed air temperature which is over-ventilating the building. Energy will be saved by using a direct measure outside air damper to maintain a constant outside air rate that matches the exhaust requirements. Scope: Optimize AHU-8 as follows: - Reduce outside air by installing a direct measure outside air damper. - Modulate the exhaust air damper with building pressure. - Optimize the schedules. - Optimize the night setback. Operating Energy Total Investment Operating Energy Total SIR $0 ($14,900) ($14,900) $41,700 $0 ($422,400) ($380,700) 10.1 EEM-15: Install Flue Dampers Purpose: Currently, two of the boilers are kept hot but do not operate to supply heat. Air flow through an idle boiler carries heat up the chimney. Energy will be saved if flue dampers are installed on the boilers to reduce the air flow through the boiler when it is not firing. Scope: Install a flue damper on each boiler. Annual Costs Life Cycle Costs Operating Energy Total Investment Operating Energy Total SIR $300 ($2,000) ($1,700) $6,400 $5,100 ($56,600) ($45,100) 8.0 EEM-16: Electrical Room 208 Heat Recovery Purpose: The electrical room in the mezzanine has a 150 kVA and a 250 kVA transformer in the space. The heat from the transformers is exhausted to the outdoors via EF-34. Energy will be saved if the heat generated from these transformers is used within the building envelope. Scope: Modify the EF-34 ductwork to supply the heated exhaust air to the gym. Annual Costs Life Cycle Costs Operating Energy Total Investment Operating Energy Total SIR $300 ($2,630) ($2,330) $13,500 $5,100 ($86,900) ($68,300) 6.1 EEM-17: Optimize AHU-7 (Music, Art, Kitchen) Purpose: AHU-7 is over-ventilating the building by providing makeup air for the kitchen hood which only operates 2 hours per week. Energy will be saved if the minimum outside air rate is reduced to ensure the system is operating as efficiently as possible. Scope: Optimize AHU-7 as follows: - Install a direct-measure minimum outside air damper. - Modulate the relief damper with building pressure. - Optimize the fan schedules. - Optimize the night setback. Operating Energy Total Investment Operating Energy Total SIR $0 ($5,010) ($5,010) $29,300 $0 ($142,000) ($112,700) 4.8 EEM-18: Optimize AHU-3 and AHU-4 (North Wing) Purpose: AHU-3 and AHU-4 are configured as full outside air systems. They are over- ventilating the spaces, resulting in excessive energy consumption. Energy will be saved if AHU-3 and AHU-4 controls and equipment are optimized to ensure the systems are operating as efficiently as possible. Scope: Optimize the AHU-3 and AHU-4 system by converting to mixed air systems. Additional optimization recommendations include: - Modulate the exhaust air damper with building pressure - Optimize the fan schedules - Optimize night setback sequence Annual Costs Life Cycle Costs Operating Energy Total Investment Operating Energy Total SIR $200 ($18,210) ($18,010) $126,800 $3,400 ($516,000) ($385,800) 4.0 EEM-19: Remove Chilled Water AHU Coils Purpose: The cooling system for the school building was recently removed; however, cooling coils still remain in the AHU systems. Energy will be saved if these unnecessary cooling coils are removed to decrease the pressure that the supply fans are operating against. Scope: Remove the AHU-5 cooling coil and AHU-6 zone cooling coils. Annual Costs Life Cycle Costs Operating Energy Total Investment Operating Energy Total SIR ($180) ($260) ($440) $2,000 ($3,100) ($4,600) ($5,700) 3.9 EEM-20: Install Boiler Room Heat Recovery Purpose: The boiler room utilizes a combustion air fan to cool the room when it gets too hot. The audit team found the room to be 65°F due to nearly continuous cooling fan operation. The boiler efficiency is lower if the combustion air is at a lower temperature. Energy will be saved if the boiler room is kept warmer and the heat generated in the boiler room is utilized within the building envelope rather than discharged outdoors. Scope: Install a heat pump in the boiler room and transfer the heat a fan coil unit installed in the gym. Annual Costs Life Cycle Costs Operating Energy Total Investment Operating Energy Total SIR $250 ($10,730) ($10,480) $87,000 $4,300 ($336,800) ($245,500) 3.8 EEM-21: Heat Recovery from Server Room 131 and Electrical Room 151 Purpose: Server Room 131 and Electrical Room 151 contains switches, servers, a 75 kVA transformer, and some additional heat generating electrical equipment. The spaces are cooled by three A/C units, which reject the heat outdoors. Energy will be saved if heat generated in the server spaces is transferred to Corridor 128. Scope: Install a split A/C unit to cool the server room and electrical room. Circulate air from the server and electrical rooms through the A/C unit evaporator to maintain the rooms at 65°F. Transfer the heat to corridor 128/100 by circulating it through the A/C unit condenser. Annual Costs Life Cycle Costs Operating Energy Total Investment Operating Energy Total SIR $300 ($8,080) ($7,780) $86,100 $5,100 ($253,300) ($162,100) 2.9 MEDIUM PRIORITY Medium priority EEMs will require planning and a higher level of investment. They are recommended because they offer a life cycle savings. The EEMs are listed from highest to lowest priority. Negative values, in parenthesis, represent savings. EEM-22: Install Automatic Valves on Unit Heaters Purpose: Energy will be saved if the ten unit heaters each have an automatic valve that shuts off the heating flow when heat is not needed. Currently the coils in the unit heaters are continuously hot and the thermostat turns on the fan to supply the heat to the room. When heat is not needed, convective heat loss from the coil occurs; some of the heat loss may be useful, but a large percentage is not. Scope: Install automatic valves in the heating supply to each unit heater and control them from the fan thermostat. Annual Costs Life Cycle Costs Operating Energy Total Investment Operating Energy Total SIR $0 ($680) ($680) $7,100 $0 ($19,300) ($12,200) 2.7 EEM-23: Upgrade Transformers Purpose: Existing transformers are not TP-1 rated. Energy will be saved if these less-efficient transformers are replaced with energy efficient models that comply with NEMA Standard TP 1-2001. Scope: Replace less-efficient transformers with NEMA Standard TP 1-2001 compliant models. Annual Costs Life Cycle Costs Operating Energy Total Investment Operating Energy Total SIR $0 ($9,790) ($9,790) $140,400 $0 ($171,700) ($31,300) 1.2 EEM-24: Upgrade Motors to Premium Efficiency Purpose: Although many motor labels were not accessible or had been painted during preservation efforts, the equipment inspection identified thirteen motors that could be upgraded with premium efficiency models to save energy. They are:  AHU-3 5 HP  AHU-5 20 HP  AHU-6 15 HP  AHU-11 3 HP  AHU-12 7-½ HP  AHU-13 15 HP  RF-12 1-½ HP  RF-13 7-½ HP  EF-1 5 HP  P-9A 3 HP  P-9B 3 HP  P-11A 7-½ HP  P-11B 7-½ HP Scope: Replace identified motors with premium efficiency motors. Annual Costs Life Cycle Costs Operating Energy Total Investment Operating Energy Total SIR $0 ($1,300) ($1,300) $22,000 $0 ($22,700) ($700) 1.0 LOW PRIORITY Low priority EEMs do not offer a life cycle energy savings and are not recommended. EEM-25: Replace Humanity’s Wing Roof Insulation Purpose: A 112’ x 120’ section of the Humanity’s Wing roof uses an IRMA roof system with a base layer of foam that is approximately 4” thick at the inspected roof drain with a 2” layer of foam on the underside of the LG board. The 6” total thickness at the inspected location would normally produce an insulation value of R-24 with the use of the expanded polystyrene foam; however the IRMA roof system is de-rated by approximately 50% as outlined in the executive summary. This results in an overall roof insulation value of only R-12 for over 13,000 square feet of roofing. Replacing the Humanity’s Wing roof with a tapered roof system similar to that used in the school re-roofing project, with an optimum insulation value of R-46, will save energy; however, our analysis shows it will not produce a life cycle cost savings. Scope: Replace Humanity’s wing IRMA roof system with R-46 tapered roof system. Annual Costs Life Cycle Costs Operating Energy Total Investment Operating Energy Total SIR $0 ($8,050) ($8,050) $357,000 $0 ($228,100) $128,900 0.6 EEM-26: Install Toilet Room Lighting Control Purpose: Toilet room lighting is currently controlled with the corridor lights. Electric energy would be saved if the corridor lighting hours were reduced by installing a separate circuit to control the toilet room lighting with an occupancy sensor within the toilet rooms. Scope: Install separate circuit for toilet lights and control with occupancy sensors. A preliminary analysis determined that this EEM will not realize a savings over a 25- year life cycle because the lighting produces beneficial heat for the building. This heat would otherwise be provided by the fuel oil boilers. Fuel oil heat has much higher inflation than electric heat so over time the cost of the fuel oil heat is much higher than the cost of keeping the corridor lighting on. Section 4 Description of Systems ENERGY SYSTEMS This section provides a general description of the building systems. Energy conservation opportunities are addressed in Section 3, Energy Efficiency Measures. Building Envelope R-value Component Description (inside to outside) Existing Optimal Exterior Wall Tile panel, studs, R-19 batt, 1” foil faced insulation, 5/8” gyp bd R-20 R-24 Main Roof Metal roof deck, 6” rigid insulation, ½” OSB, Membrane R-34 R-46 Humanity’s Roof Metal roof deck, EPDM, 4” EPS, 2” EPS w/ 1/2” aggregate R-12 R-46 Floor Slab 4” Concrete slab-on-grade R-10 R-10 Foundation 8” concrete with 1-1/2” rigid insulation on interior surface R-8 R-15 Windows Aluminum double pane R-1.5 R-4 Doors Aluminum (main entries) and steel (all others) w/o thermal break, glazing where used is double pane R-1.5 R-4 Domestic Hot Water System Three indirect hot water heaters and an auxiliary storage tank supply domestic hot water to the fixtures. The water conservation efficiency of the lavatory aerators and the showerheads can be improved. Cooling Systems The building has three space cooling systems for temperature control of the two IT rooms. Automatic Control System The building has a DDC system to control the operation of the heating and ventilation systems. Lighting Interior lighting consists primarily of T5, T8, and compact fluorescent fixtures. Exterior lighting consists primarily of compact fluorescent and metal halide lighting. The maintenance staff has done an outstanding job of reducing energy consumption within the building envelope through lighting modifications. The interior lighting schedule and all exterior lighting is controlled by staff and by photocells in an effort to minimize lighting operational hours. Electric Equipment Commercial kitchen equipment for food preparation at Ketchikan High School is located in the food prep area. Heating System The building is heated by three fuel oil boilers that provide heat to thirteen air handling unit systems, 10 fan coil unit heaters, perimeter hydronic systems, and cabinet unit heaters located in the Humanity’s wing. The heating system has the following pumps:  P-1A and P-1B are the building circulation pumps  P-2A and P-2B are secondary building circulation pumps  P-3A and P-3B are secondary building circulation pumps  P-4A is a boiler circulation pump for boilers 1, 2, and 3  P-5 is a glycol make-up pump  P-6A and P-6B are utilidoor sump pumps  P-7A and P-7B are domestic hot water circulation pumps  P-8A and P-8B are secondary building circulation pumps  P-9A and P-9B are secondary building circulation pumps  P-11A and P-11B are secondary building circulation pumps  P-12A and P-12B are secondary building circulation pumps  P-13 is a secondary building circulation pump  P-14A and P-14B are domestic hot water circulation pumps  P-15A and P-15B are domestic hot water circulation pumps Ventilation Systems Area Fan System Description Phase 1 Wing AHU-1 Constant volume air handling unit consisting of a mixing box, filter section, supply fans, and heating coil East ½ Gymnasium AHU-2 Constant volume air handling unit consisting of a mixing box, filter section, supply fans, and heating coil North Wing 1st Floor AHU-3 Constant volume air handling unit consisting of a heating coil, mixing box, filter section, and a supply fan North Wing 2nd Floor AHU-4 Constant volume air handling unit consisting of a heating coil, mixing box, filter section, and a supply fan Auditorium AHU-5 Constant volume air handling unit consisting of a heating coil, mixing box, filter section, supply fan, and return fan Stage Area and Green Room AHU-6 Constant volume air handling unit consisting of a heating coil, mixing box, filter section, supply fan, and return fan Music, Kitchen, and Art AHU-7 Constant volume air handling unit consisting of a heating coil, mixing box, filter section, supply fan, and return fan Auxiliary Gym AHU-8 Constant volume air handling unit consisting of a heating coil, mixing box, filter section, supply fan, and return fan Arts Room AHU-9 Not in service Auditorium AHU-11 Constant volume air handling unit consisting of a heating coil, mixing box, filter section, and a supply fan Gym Lockers AHU-12 Constant volume air handling unit consisting of a heating coil, mixing box, filter section, supply fan, and return fan Technology Complex AHU-13 Constant volume air handling unit consisting of a heating coil, mixing box, filter section, supply fan, and return fan Phase 1 Wing RF-1 35,500 cfm return fan with (2) 10 HP motors Auditorium RF-2 21,900 cfm 10 HP return fan Gym RF-3 13,500 cfm 7.5 HP return fan Classrooms RF-4 20,115 cfm 7.5 HP return fan Auxiliary Gym RF-5 11,800 cfm 5 HP return fan Toilet Rooms by Commons EF-1 739 cfm 5 HP Science Room EF-2 190 cfm for animal dissections Science Room EF-3 720 cfm ½ HP fume hood Science Room EF-4 720 cfm ½ HP fume hood Science Room EF-5 1495 cfm ½ HP fume hood Science Room EF-6 720 cfm ½ HP fume hood Ventilation Systems, continued. Area Fan System Description Science Rooms EF-7 2060 cfm ½ HP general science exhaust Science Rooms EF-8 2180 cfm ½ HP general science exhaust Science Rooms EF-9 2180 cfm ½ HP general science exhaust Science Rooms EF-10 2440 cfm ½ HP general science exhaust Utilidor EF-11 2200 cfm ¾ HP ventilation AHU-3 Mechanical EF-13 9300 cfm 5 HP AHU-3 relief AHU-4 Mechanical EF-14 1200 cfm ¾ HP AHU-4 relief Auditorium EF-15 1000 cfm ½ HP spotlight exhaust air Stage Craft EF-16 2000 cfm ½ HP Stage Craft EF-17 500 cfm 1/6 HP bathroom exhaust Kitchen EF-18 4400 cfm 3 HP roof top mounted kitchen hood exhaust fan Kitchen EF-19 600 cfm ¼ HP roof top mounted dishwasher exhaust fan Art/Music Restrooms EF-20 1200 cfm ½ HP rooftop mounted exhaust fan Art Room EF-21 532 cfm ¼ HP art room main exhaust Kiln Room EF-22 880 cfm ¼ HP kiln exhaust fan Aux Gym Restrooms EF-23 2325 cfm ¾ HP exhaust fan Training Room EF-24 725 cfm general exhaust fan Locker Rooms EF-26 5,155 cfm 3 HP exhaust fan Applied Technology EF-27 810 cfm ½ HP exhaust fan Wood Shop EF-28 1,650 cfm 5 HP sawdust collection fan Auto Shop EF-29 2,000 cfm 1 ½ HP solvent collection tank exhaust fan Auto Shop EF-30 1,000 cfm 2 HP grinding table exhaust fan Auto Shop EF-31 2,000 cfm 5 HP automotive exhaust fan Hot Water Tank Room EF-32 1,500 cfm ½ HP general exhaust Auto Shop EF-33 2,250 cfm 2 HP outboard engine exhaust Electric Room EF-34 2,370 cfm ½ HP general exhaust Section 5 Methodology Information for the energy audit was gathered through on-site observations, review of construction documents, and interviews with operation and maintenance personnel. The EEMs are evaluated using energy and life cycle cost analyses and are priority ranked for implementation. Energy Efficiency Measures Energy efficiency measures are identified by evaluating the building’s energy systems and comparing them to systems in modern, high performance buildings. The process for identifying the EEMs acknowledges the realities of an existing building that was constructed when energy costs were much lower. Many of the opportunities used in modern high performance buildings—highly insulated envelopes, variable capacity mechanical systems, heat pumps, daylighting, lighting controls, etc.— simply cannot be economically incorporated into an existing building. The EEMs represent practical measures to improve the energy efficiency of the buildings, taking into account the realities of limited budgets. If a future major renovation project occurs, additional EEMs common to high performance buildings should be incorporated. Life Cycle Cost Analysis The EEMs are evaluated using life cycle cost analysis which determines if an energy efficiency investment will provide a savings over a 25-year life. The analysis incorporates construction, replacement, maintenance, repair, and energy costs to determine the total cost over the life of the EEM. Future maintenance and energy cash flows are discounted to present worth using escalation factors for general inflation, energy inflation, and the value of money. The methodology is based on the National Institute of Standards and Technology (NIST) Handbook 135 – Life Cycle Cost Analysis. Life cycle cost analysis is preferred to simple payback for facilities that have long—often perpetual— service lives. Simple payback, which compares construction cost and present energy cost, is reasonable for short time periods of 2-4 years, but yields below optimal results over longer periods because it does not properly account for the time value of money or inflationary effects on operating budgets. Accounting for energy inflation and the time value of money properly sums the true cost of facility ownership and seeks to minimize the life cycle cost. Construction Costs The cost estimates are derived based on a preliminary understanding of the scope of each EEM as gathered during the walk-through audit. The construction costs for in-house labor are $60 per hour for work typically performed by maintenance staff and $110 per hour for contract labor. The cost estimate assumes the work will be performed as part of a larger renovation or energy efficiency upgrade project. When implementing EEMs, the cost estimate should be revisited once the scope and preferred method of performing the work has been determined. It is possible some EEMs will not provide a life cycle savings when the scope is finalized. Maintenance Costs Maintenance costs are based on in-house or contract labor using historical maintenance efforts and industry standards. Maintenance costs over the 25-year life of each EEM are included in the life cycle cost calculation spreadsheets and represent the level of effort to maintain the systems. Energy Analysis The energy performance of an EEM is evaluated within the operating parameters of the building. A comprehensive energy audit would rely on a computer model of the building to integrate building energy systems and evaluate the energy savings of each EEM. This investment grade audit does not utilize a computer model, so energy savings are calculated with factors that account for the dynamic operation of the building. Energy savings and costs are estimated for the 25-year life of the EEM using appropriate factors for energy inflation. Prioritization Each EEM is prioritized based on the life cycle savings to investment ratio (SIR) using the following formula: Prioritization Factor = Life Cycle Savings / Capital Costs This approach factor puts significant weight on the capital cost of an EEM, making lower cost EEMs more favorable. Economic Factors The following economic factors are significant to the findings.  Nominal Interest Rate: This is the nominal rate of return on an investment without regard to inflation. The analysis uses a rate of 5%.  Inflation Rate: This is the average inflationary change in prices over time. The analysis uses an inflation rate of 2%.  Economic Period: The analysis is based on a 25-year economic period with construction beginning in 2010. Fuel Oil Fuel oil currently costs $3.47 per gallon for a seasonally adjusted blend of #1 and #2 fuel oil. The analysis is based on 6% fuel oil inflation which has been the average for the past 20-years. Electricity Electricity is supplied by Ketchikan Public Utilities. The building is billed for electricity under their commercial service rate. This rate charges for both electrical consumption (kWh) and peak electric demand (kW). Electrical consumption is the amount of energy consumed and electric demand is the rate of consumption. Summary The following table summarizes the energy and economic factors used in the analysis. Ketchikan Public Utilities Commercial Service Rate Electricity ($ / kWh ) $0.0897 Demand ( $ / kW ) $2.91 Customer Charge ( $ / mo ) $36.30 Summary of Economic and Energy Factors Factor Rate or Cost Factor Rate or Cost Nominal Discount Rate 5% Electricity $0.099/kwh General Inflation Rate 2% Electricity Inflation 2% Fuel Oil Cost (2012) $3.68/gal Fuel Oil Inflation 6% Appendix A Energy and Life Cycle Cost Analysis Alaska Energy Engineering LLC Energy and Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 jim@alaskaenergy.us Ketchikan High School Basis Economic Study Period (years) 25 Nominal Discount Rate 5%General Inflation 2% Energy 2011 $/gal Fuel Inflation 2012 $/gal Fuel Oil $3.47 6% $3.68 Electricity $/kWh (2011)$/kW (2011)Inflation $/kWh (2012)$/kW (2012) w/ Demand Charges $0.090 $2.91 2% $0.091 $2.97 w/o Demand Charges $0.097 -2% $0.099 - EEM-5: Reduce HVAC System Operating Hours Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs Reprogram operating schedules 0 1 LS $5,000 $5,000 Estimating contingency 0 15%$750 Overhead & profit 0 30%$1,725 Design fees 0 10%$748 Project management 0 8%$658 Energy Costs Electric Energy 1 - 25 -250,000 kWh $0.091 ($400,923) Fuel Oil 1 - 25 -12,000 gal $3.68 ($1,251,083) Net Present Worth ($1,643,100) EEM-6: Isolate Lag/Standby Boilers Energy Analysis Boiler Input MBH Loss %Loss MBH Hours, exist Hours, new kBtu η boiler Gallons B-1 4,488 0.50% 22 8,760 6,840 -43,086 68%-457 B-2 4,488 0.50% 22 8,760 2,160 -148,107 68%-1,573 B-3 4,488 0.50% 22 8,760 2,160 -148,107 68%-1,573 67 -339,300 -3,603 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs Implement boiler operating procedure, DDC controls 0 1 LS $5,000 $5,000 Annual Costs Boiler shutdown and restart 1 - 25 16 hrs $60.00 $16,346 Energy Costs Fuel Oil 1 - 25 -3,603 gal $3.68 ($375,604) Net Present Worth ($354,300) Alaska Energy Engineering LLC Energy and Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 jim@alaskaenergy.us Ketchikan High School EEM-7: Perform Boiler Combustion Test Energy Analysis Annual Gal % Savings Savings, Gal 134,900 -0.5% -675 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs Purchase combustion analyzer 0 1 LS $1,000 $1,000 Annual Costs Combustion test 1 - 25 6 hrs $60.00 $6,130 Energy Costs Fuel Oil 1 - 25 -675 gal $3.68 ($70,321) Net Present Worth ($63,200) EEM-8: Optimize AHU-1 System Energy Analysis Ventilation SA CFM MAT T,room MBH Hours kBtu η boiler Gallons AHU-1 Existing -60,000 58 65 -454 1,800 -816,480 68%-8,669 Optimized 60,000 62 65 194 1,800 349,920 68%3,715 -466,560 -4,954 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs Rebalance air systems 0 1 LS $4,000 $4,000 Control modifications 0 1 LS $1,000 $1,000 Estimating contingency 0 15%$750 Overhead & profit 0 30%$1,725 Design fees 0 10%$748 Project management 0 8%$658 Energy Costs Fuel Oil 1 - 25 -4,954 gal $3.68 ($516,480) Net Present Worth ($507,600) EEM-9: Modify Boiler Burner Controls Energy Analysis Annual Gal % Savings Savings, Gal 134,900 -0.75% -1,012 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs Modify and commisison DDC burner controls 0 1 LS $5,000 $5,000 Energy Costs Fuel Oil 1 - 25 -1,012 gal $3.68 ($105,482) Net Present Worth ($100,500) Alaska Energy Engineering LLC Energy and Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 jim@alaskaenergy.us Ketchikan High School EEM-10: Optimize AHU-13 System Energy Analysis Ventilation SA CFM MAT T,room MBH Hours kBtu η boiler Gallons AHU-13 Existing -14,930 50 66 -258 3,000 -773,971 68%-8,218 Optimized 14,930 60 66 97 3,000 290,239 68%3,082 .-483,732 -5,136 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs IAQ OSA damper 0 1 LS $14,000 $14,000 Control modifications 0 1 LS $2,500 $2,500 Estimating contingency 0 15%$2,475 Overhead & profit 0 30% $5,692.50 Design fees 0 10% $2,466.75 Project management 0 8% $2,170.74 Energy Costs Fuel Oil 1 - 25 -5,136 gal $3.68 ($535,489) Net Present Worth ($506,200) EEM-11: Optimize AHU-12 System Energy Analysis Ventilation SA CFM MAT T,room MBH Hours kBtu η boiler Gallons AHU-12 Existing -6,310 55 68 -89 3,000 -265,777 68%-2,822 Optimized 6,310 63 68 34 3,000 102,222 68%1,085 -163,555 -1,737 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs Balance systems 0 1 LS $7,000 $7,000 Estimating contingency 0 15%$1,050 Overhead & profit 0 30%$2,415 Design fees 0 10%$1,047 Project management 0 8%$921 Energy Costs Fuel Oil 1 - 25 -1,737 gal $3.68 ($181,055) Net Present Worth ($168,600) EEM-12: Electrical Room 8 Heat Recovery Energy Analysis Exhaust Grille CFM Troom Tosa MBH Hours Heat, kBtu η boiler Gallons -1,510 70 40 -49 3,000 -146,772 82% -1,292 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs Transfer ran, ductowrk, electrical, balancing 0 1 LS $5,500 $5,500 Estimating contingency 0 15%$825 Overhead & profit 0 30%$1,898 Design fees 0 10%$822 Project management 0 8%$724 Annual Costs Fan maintenance 1 - 25 1 LS $50.00 $851 Energy Costs Fuel Oil 1 - 25 -1,292 gal $3.68 ($134,736) Net Present Worth ($124,100) Alaska Energy Engineering LLC Energy and Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 jim@alaskaenergy.us Ketchikan High School EEM-13: Replace Aerators and Showerheads Energy Analysis Fixture Existing Proposed Uses/day Days Water,Gals % HW kBTU kWh Summer Showerhead 20.0 10.0 20 60 -12,000 80% -6,405 -1,877 Lavatories 0.3 0.2 200 60 -2,160 80% -1,153 -338 School Year Showerhead 20.0 10.0 30 180 -54,000 80% -28,823 -8,448 Lavatories 0.3 0.2 1,800 180 -58,320 80% -31,129 -9,123 -126,480 -19,786 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs Replace lavatory aerators 0 60 ea $35 $2,100 Replace showerhead 0 27 ea $35 $945 Energy Costs Electric Energy (Effective Cost)1 - 25 -19,786 kWh $0.099 ($34,313) Net Present Worth ($31,300) EEM-14: Optimize AHU-8 System Energy Analysis Ventilation SA CFM MAT T,room MBH Hours kBtu η boiler Gallons AHU-8 Existing -15,100 55 70 -245 1,800 -440,316 68%-4,675 Optimized 15,100 68 70 33 1,800 58,709 68%623 -381,607 -4,052 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs IAQ OSA damper 0 1 LS $14,000 $14,000 Balance system 0 1 LS $7,000 $7,000 Control modifications 0 1 LS $2,500 $2,500 Estimating contingency 0 15%$3,525 Overhead & profit 0 30%$8,108 Design fees 0 10%$3,513 Project management 0 8%$3,092 Energy Costs Fuel Oil 1 - 25 -4,052 gal $3.68 ($422,438) Net Present Worth ($380,700) Gallons per Use Alaska Energy Engineering LLC Energy and Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 jim@alaskaenergy.us Ketchikan High School EEM-15: Install Flue Dampers Energy Analysis Number CFM T,flue T,room MBH kBTU η boiler Gallons 3 -20 160 70 -6 -51,088 68% -542 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs Install flue dampers 0 3 ea $1,200 $3,600 Estimating contingency 0 15%$540 Overhead & profit 0 30%$1,242 Design fees 0 10%$538 Project management 0 8%$474 Annual Costs Flue damper maintenance 1 - 25 3 ea $100.00 $5,108 Energy Costs Fuel Oil 1 - 25 -542 gal $3.68 ($56,555) Net Present Worth ($45,100) EEM-16: Electric Room 208 Heat Recovery Energy Analysis Transformer kVA ηnew KW kWh Heat, kBtu η boiler Gallons 150 98.9% -1.7 -14,454 -49,317 82% -434 225 99.0% -2.3 -19,710 -67,251 82% -592 -116,568 -1,026 Heat Pump Energy Recovery, kBtu COP kWh HP Heat, kBtu η boiler Gallons -116,568 3 11,388 38,856 82% -342 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs Seal EF-34 exhaust through roof 0 1 LS $600 $600 Install ductowrk to supply heated air to gym, balancing 0 1 LS $7,000 $7,000 Estimating contingency 0 15%$1,140 Overhead & profit 0 30%$2,622 Design fees 0 10%$1,136 Project management 0 8%$1,000 Annual Costs A/C Unit maintenance 1 - 25 1 LS $300.00 $5,108 Energy Costs Electric Energy 1 - 25 11,388 kWh $0.091 $18,263 Electric Demand 1 - 25 36 kW $2.97 $1,876 Fuel Oil 1 - 25 -1,026 gal $3.68 ($107,009) Net Present Worth ($68,300) Alaska Energy Engineering LLC Energy and Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 jim@alaskaenergy.us Ketchikan High School EEM-17: Optimize AHU-7 System Energy Analysis Ventilation SA CFM MAT T,room MBH Hours kBtu η boiler Gallons AHU-7 Existing -12,000 55 65 -130 1,800 -233,280 68%-2,477 Optimized 12,000 60.5 65 58 1,800 104,976 68%1,115 -128,304 -1,362 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs IAQ OSA damper 0 1 LS $14,000 $14,000 Control modifications 0 1 LS $2,500 $2,500 Estimating contingency 0 15%$2,475 Overhead & profit 0 30%$5,693 Design fees 0 10%$2,467 Project management 0 8%$2,171 Energy Costs Fuel Oil 1 - 25 -1,362 gal $3.68 ($142,032) Net Present Worth ($112,700) EEM-18: Optimize AHU-3 and AHU-4 Energy Analysis Ventilation SA CFM MAT T,room MBH Hours kBtu η boiler Gallons AHU-3 Existing -6,900 40 65 -186 1,800 -335,340 68%-3,561 Optimized 6,900 62 65 22 1,800 40,241 68%427 AHU-4 Existing -4,000 40 65 -108 1,800 -194,400 68%-2,064 Optimized 4,000 62 65 13 1,800 23,328 68%248 -466,171 -4,950 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs AHU-3 Reconfigure ductwork 0 1 LS $4,100 $4,100 Toilet exhaust fan 0 1 LS $3,500 $3,500 Copier room transfer fan 0 1 LS $2,700 $2,700 Convert EF-13 to return fan 0 1 LS $7,300 $7,300 General exhaust fan 0 1 LS $15,800 $15,800 Balancing 0 1 LS $6,000 $6,000 AHU-4 Return ductowrk 0 1 LS $5,000 $5,000 New exhaust fan 0 1 LS $3,500 $3,500 New return fan 0 1 LS $19,000 $19,000 Remove EF-14 System 0 1 LS $2,000 $2,000 Balancing 0 1 LS $2,500 $2,500 Estimating contingency 0 15% $10,710 Overhead & profit 0 30% $24,633 Design fees 0 10% $10,674 Project management 0 8%$9,393 Annual Costs Fan maintenance 1 - 25 2 LS $100.00 $3,405 Energy Costs Fuel Oil 1 - 25 -4,950 gal $3.68 ($516,050) Net Present Worth ($385,800) Alaska Energy Engineering LLC Energy and Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 jim@alaskaenergy.us Ketchikan High School EEM-19: Remove Chilled Water AHU Coils Energy Analysis Fan Energy Unit CFM ΔP η, fan BHP kW Hours kWh AHU-5 21,300 -0.25 50% -1.7 -1.2 1,040 -1,300 AHU-6 CC 12,880 -0.25 50% -1.0 -0.8 1,040 -786 -2.0 -2,086 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs Remove AHU-5 coil 0 1 LS $500 $500 Remove AHU-6 reheat coils 0 5 LS $300 $1,500 Annual Costs Coil maintenance 1 - 25 -6 ea $30.00 ($3,065) Energy Costs Electric Energy 1 - 25 -2,086 kWh $0.091 ($3,345) Electric Demand 1 - 25 -24.1 kW $2.97 ($1,254) Net Present Worth ($5,700) EEM-20: Install Boiler Room Heat Recovery Energy Analysis Heat Recovery Input, MBH Jacket Loss MBH Hours Loss, kBtu Factor Recovery, kBtu η boiler Gallons 4,848 -1.0% -48 8,760 -424,641 75% -318,481 82%-2,804 Heat Pump Energy Recovery, kBtu COP kWh HP Heat, kBtu η boiler Gallons -318,481 3 31,114 106,160 82% -935 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs Boiler room heat pump 0 1 LS $15,000 $15,000 Gym fan coil unit 0 1 LS $6,000 $6,000 Piping between heat pump and fan coil 0 1 LS $22,000 $22,000 Controls 0 1 LS $6,000 $6,000 Estimating contingency 0 15%$7,350 Overhead & profit 0 30% $16,905 Design fees 0 10%$7,326 Project management 0 8%$6,446 Annual Costs Heat pump maintenance 1 - 25 1 LS $250.00 $4,257 Energy Costs Electric Energy 1 - 25 31,114 kWh $0.091 $49,897 Electric Demand 1 - 25 60.0 kW $2.97 $3,126 Fuel Oil 1 - 25 -3,739 gal $3.68 ($389,819) Net Present Worth ($245,500) Alaska Energy Engineering LLC Energy and Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 jim@alaskaenergy.us Ketchikan High School EEM-21: Electrical 151 and Server Room 131 Heat Recovery Energy Analysis Server Room Heat Recovery Input, MBH Hours Heat, kBtu Factor Recovery, kBtu η boiler Gallons -27 8,760 -239,113 100% -239,113 82% -2,105 Heat Pump Energy Recovery, kBtu COP kWh HP Heat, kBtu η boiler Gallons -239,113 3 23,360 79,704 82% -702 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs Split A/C Unit with ducted condenser 0 1 LS $37,000 $37,000 Ductwork amd grilles, balancing 0 1 LS $8,500 $8,500 Piping 0 1 LS $3,000 $3,000 Estimating contingency 0 15%$7,275 Overhead & profit 0 30% $16,733 Design fees 0 10%$7,251 Project management 0 8%$6,381 Annual Costs A/C Unit maintenance 1 - 25 1 LS $300.00 $5,108 Energy Costs Electric Energy 1 - 25 23,360 kWh $0.091 $37,462 Electric Demand 1 - 25 36 kW $2.97 $1,876 Fuel Oil 1 - 25 -2,807 gal $3.68 ($292,673) Net Present Worth ($162,100) EEM-22: Install Automatic Valves on Unit Heaters Energy Analysis Loss, BTUH Number Factor Loss, kBTU Boiler Effic Fuel, gals -1,000 10 20% -17,520 70% -185 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs Install automatic valves and connect to fan wiring 0 10 ea $400 $4,000 Estimating contingency 0 15%$600 Overhead & profit 0 30%$1,380 Design fees 0 10%$598 Project management 0 8%$526 Energy Costs Fuel Oil 1 - 25 -185 gal $3.68 ($19,329) Net Present Worth ($12,200) Alaska Energy Engineering LLC Energy and Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 jim@alaskaenergy.us Ketchikan High School EEM-23: Upgrade Transformers Energy Analysis Number kVA ηold ηnew KW kWh 2 75 97.4% 98.7% -1.95 -17,082 3 225 98.0% 99.0% -6.75 -59,130 1 300 98.0% 99.0% -3.00 -26,280 -11.7 -102,492 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs Replace transformer, kVA 75 0 2 LS $10,400 $20,800 Replace transformer, kVA 225 0 3 LS $18,200 $54,600 Replace transformer, kVA 300 0 1 LS $22,800 $22,800 Estimating contingency 0 10%$9,820 Overhead & profit 0 30% $32,406 Energy Costs Electric Energy 1 - 25 -102,492 kWh $0.091 ($164,366) Electric Demand 1 - 25 -140 kW $2.97 ($7,315) Net Present Worth ($31,300) EEM-24: Upgrade Motors Energy Analysis Equip Number HP ηold ηnew kW Hours kWh RF-12 1 1.5 84.5% 86.5% -0.02 2,610 -58 AHU-11 1 3 86.5% 89.5% -0.07 2,160 -145 P-9A 1 3 81.5% 89.5% -0.18 4,380 -784 P-9B 1 3 81.5% 89.5% -0.18 4,380 -784 AHU-3 1 5 86.5% 89.5% -0.11 6,205 -694 EF-1 1 5 86.5% 89.5% -0.11 1,800 -201 AHU-12 1 7.5 88.5% 91.7% -0.18 1,530 -274 RF-13 1 7.5 88.5% 91.7% -0.18 1,800 -322 P-11A 1 7.5 86.5% 91.7% -0.29 4,380 -1,274 P-11B 1 7.5 86.5% 91.7% -0.29 4,380 -1,274 AHU-6 1 15 71.0% 92.4% -2.39 1,800 -4,310 AHU-13 1 15 90.2% 92.4% -0.25 1,800 -443 AHU-5 1 20 87.0% 93.0% -0.90 1,800 -1,611 -5.1 -12,177 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs HP Replace motor 1.5 0 1 LS 955 $955 Replace motor 3 0 3 LS 1,080 $3,240 Replace motor 5 0 2 LS 1,290 $2,580 Replace motor 7.5 0 4 LS 1,690 $6,760 Replace motor 15 0 2 LS 2,660 $5,320 Replace motor 20 0 1 LS 3,160 $3,160 Energy Costs Electric Energy 1 - 25 -12,177 kWh $0.091 ($19,529) Electric Demand 1 - 25 -62 kW $2.97 ($3,218) Net Present Worth ($700) Alaska Energy Engineering LLC Energy and Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 jim@alaskaenergy.us Ketchikan High School EEM-25: Replace Humanity's Wing Roof Insulation Energy Analysis Component Area R,exist R,new ΔT MBH kBtu η boiler Gallons Roof 13,440 12 40 30 -23.5 -206,035 68%-2,188 Life Cycle Cost Analysis Year Qty Unit Base Cost Year 0 Cost Construction Costs Remove pavers and foam insulation 0 13,400 sqft $1 $13,400 Install polyisocyanurate insulation, 3"0 13,400 sqft $5 $67,000 Install polyisocyanurate insulation, 3"0 13,400 sqft $5 $67,000 Tapered insulation 0 13,400 sqft $4 $53,600 Estimating contingency 0 15% $30,150 Overhead & profit 0 30% $69,345 Design fees 0 10% $30,050 Project management 0 8% $26,444 Energy Costs Fuel Oil 1 - 25 -2,188 gal $3.68 ($228,080) Net Present Worth $128,900 Appendix B Energy and Utility Data Alaska Energy Engineering LLC Billing Data 25200 Amalga Harbor Road Tel/Fax: 907-789-1226 Juneau, Alaska 99801 jim@alaskaenergy.us Ketchikan High School ELECTRIC RATE Ketchikan Public Utilities Commercial Service Electricity ($ / kWh )$0.0897 Cost of Power Adjustment ($ / kWh)$0.0000 Demand ( $ / kW )$2.91 Customer Charge ( $ / mo )$36.30 Sales Tax ( % )0.0% ELECTRICAL CONSUMPTION AND DEMAND kWh kW kWh kW kWh kW kWh kW Jan 188,200 454 200,800 470 157,600 457 181,200 483 181,950 Feb 182,300 485 212,000 464 172,600 457 198,000 539 191,225 Mar 153,900 509 164,600 450 134,800 481 172,400 465 156,425 Apr 209,700 479 180,500 445 183,200 529 180,800 467 188,550 May 153,200 476 154,200 492 169,600 463 174,400 439 162,850 Jun 172,900 263 135,900 440 199,400 443 158,800 467 166,750 Jul 93,300 294 116,200 209 108,000 311 126,800 301 111,075 Aug 107,800 474 69,200 311 131,600 273 102,200 255 102,700 Sep 159,400 502 177,000 421 157,800 427 166,800 423 165,250 Oct 191,000 477 148,600 427 184,400 469 112,200 419 159,050 Nov 208,100 450 175,000 471 181,600 473 235,000 507 199,925 Dec 182,900 472 165,800 457 225,800 495 197,400 465 192,975 Total 2,002,700 1,899,800 2,006,400 2,006,000 1,978,725 Average 166,892 445 158,317 421 167,200 440 167,167 436 164,894 Load Factor 51%51%52%53%435 ELECTRIC BILLING DETAILS Month Energy Demand Cust & Tax Total Energy Demand Cust & Tax Total % Change Jan $14,137 $1,257 $36 $15,430 $16,254 $1,333 $36 $17,623 14.2% Feb $15,482 $1,257 $36 $16,776 $17,761 $1,496 $36 $19,293 15.0% Mar $12,092 $1,327 $36 $13,455 $15,464 $1,280 $36 $16,781 24.7% Apr $16,433 $1,467 $36 $17,936 $16,218 $1,286 $36 $17,540 -2.2% May $15,213 $1,275 $36 $16,524 $15,644 $1,205 $36 $16,885 2.2% Jun $17,886 $1,216 $36 $19,139 $14,244 $1,286 $36 $15,567 -18.7% Jul $9,688 $832 $36 $10,556 $11,374 $803 $36 $12,213 15.7% Aug $11,805 $722 $36 $12,563 $9,167 $669 $36 $9,873 -21.4% Sep $14,155 $1,170 $36 $15,361 $14,962 $1,158 $36 $16,156 5.2% Oct $16,541 $1,292 $36 $17,869 $10,064 $1,147 $36 $11,247 -37.1% Nov $16,290 $1,304 $36 $17,630 $21,080 $1,403 $36 $22,518 27.7% Dec $20,254 $1,368 $36 $21,658 $17,707 $1,280 $36 $19,023 -12.2% Total $ 179,974 $ 14,486 $ 436 $ 194,896 $ 179,938 $ 14,346 $ 436 $ 194,720 -0.1% Average $ 14,998 $ 1,207 $ 36 $ 16,241 $ 14,995 $ 1,196 $ 36 $ 16,227 -0.1% Cost ($/kWh)$0.097 92% 7% 0% $0.097 -0.1% Month 2007 2008 2009 Average Electrical costs are based on the current electric rates. 2009 2010 2010 Alaska Energy Engineering LLC Annual Electric Consumption 25200 Amalga Harbor Road Tel/Fax: 907-789-1226 Juneau, Alaska 99801 jim@alaskaenergy.us Ketchikan High School 0 50,000 100,000 150,000 200,000 250,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecElectric Use (kWh)Month of the Year Electric Use History 2007 2008 2009 2010 0 100 200 300 400 500 600 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecElectric Demand (kW)Month of the Year Electric Demand History 2007 2008 2009 2010 Alaska Energy Engineering LLC Electric Cost 25200 Amalga Harbor Road Tel/Fax: 907-789-1226 Juneau, Alaska 99801 jim@alaskaenergy.us Ketchikan High School 2010 $ 0 $ 5,000 $ 10,000 $ 15,000 $ 20,000 $ 25,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecElectric Cost (USD)Month of the Year Electric Cost Breakdown 2010 Electric Use (kWh) Costs Electric Demand (kW) Costs Customer Charge and Taxes 0 100 200 300 400 500 600 0 50,000 100,000 150,000 200,000 250,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Electric Demand (kW)Electric Use (kWh)Month of the Year Electric Use and Demand Comparison 2010 Electric Use Electric Demand Alaska Energy Engineering LLC Annual Fuel Oil Consumption 25200 Amalga Harbor Road Tel/Fax: 907-789-1226 Juneau, Alaska 99801 jim@alaskaenergy.us Ketchikan High School Year Fuel Oil Degree Days 2,007 136,000 7,430 2,008 106,835 7,385 2,009 131,125 7,538 2,010 137,556 7,390 5,000 5,500 6,000 6,500 7,000 7,500 8,000 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 2007 2008 2009 2010 Degree DaysGallons of Fuel OilYear Annual Fuel Oil Use Fuel Oil Degree Days Alaska Energy Engineering LLC Billing Data 25200 Amalga Harbor Road Tel/Fax: 907-789-1226 Juneau, Alaska 99801 jim@alaskaenergy.us Annual Energy Consumption and Cost Energy Cost $/MMBtu Area ECI EUI Fuel Oil $3.47 $35.79 180,614 $3.66 139 Electricity $0.097 $29.95 Source Cost Electricity 1,978,725 kWh $192,100 6,800 27% Fuel Oil 134,894 Gallons $468,100 18,300 73% Totals $660,200 25,100 100% Annual Energy Consumption and Cost Consumption Energy, MMBtu $0 $5 $10 $15 $20 $25 $30 $35 $40 Fuel Oil ElectricityCost $ / MMBtuCost of Heat Comparison Appendix C Equipment Data MotorHP / Volts / RPM / EfficP 2AB P 1 Utilidor 2 Secondary Unit Loop7.5 HP/ 480 VP 3AB P 1 Utilidor 2 Secondary Fan Loop3 HP/ 480 VP 4 P 1 Boiler Room Head Circulation2 HP/ 480 V/ 1725 rpm/ 82.5% not usedP 5 P 1 Boiler Room Glycol Make up1/3 HP/ 120 V/ 3450 rpmP 6AB P 1 Utilidor Utilidor Sump Drain1/3 HP/ 120 VP 1AB Boiler Room Fuel Oil Circulation1/2 HP/ 120 V1/2 HP/ 120 V1 WP 2ABBoiler Room Generator Fee Water3 HP/ 208 VB1 Boiler Room Primary Boiler Weil Mclain 14943770 MBHPrimary Burner Gordon Piatt R-12-0-5011.7-35 GPH 5 HP/ 460 V/ 3450 rpmmodulatingB2 Boiler Room Lag BoilerWeil Mclain 15944070 MBHLag BurnerGordon Piatt R-12-0-5011.7-35 GPH 5 HP/ 460 V/ 3450 rpmmodulatingAC 1 UtilidorLab SystemChampion HR7B-25275 CFM 7 1/2 HP/ 480 V/ 1745 rpm/ 82.9% dual motorAC 2 Boiler Room Control System20 HP/ 480 VB3 Boiler Room Lag BoilerWeil Mclain 15942 HP/ 208 VLag BurnerGordon Piatt R-12-0-5011.7-35 GPH 5 HP/ 460 V/ 3450 rpmmodulatingPMP 7 ABBoiler Room DHW18.5 GPM 3/4 HP/ 460 VPMP 8ABUtilidor Unit VentsSecondary Heading Circulation 125 GPM 3 HP/ 1750 rpmPMP 9ABUtilidor Fan HCSecondary Heading Circulation 50 GPMPMP 11ABUtilidorSecondary Hydronic Loop260 GPM 7 1/2 HP/ 1150 rpmPMP 13 Boiler RoomSecondary Hydronic Loop62 GPM 3/4 HP/ 1750 rpmPMP 15ABBoiler RoomSecondary Hydronic Loop40 GPM 1/4 HP/ 120 VAHU 1 R1 Penthouse Phase 1 Constitution Temtrol DH-164P41000 CFM 60 HP/ 480 V/ 1780 rpm/ 94.1%SF AHU 160 HP/ 480 V/ 1780 rpm/ 94.1%AHU 2 R1 Penthouse GymTemtrol DH-27P13500 CFM 10 HP/ 460 V/ 1760 rpmAHU 3 Mechanical 303 Phase 2Pace6900 CFM 5 HP/ 208 V/ 1750 rpm/ 87.5%AHU 4 Mechanical 301Pace 1A24AFST4000 CFM 5 HP/ 208 V/ 1750 rpm/ 87.5%AHU 5 Mechanical Mezz.PACE 98-73200-0121900 CFM 20 HP/ 460 V/ 1758 rpm/ 87%Ketchikan High School - Major Equipment InventoryCapacityNotesUnit IDLocation Function Make Model MotorHP / Volts / RPM / EfficKetchikan High School - Major Equipment InventoryCapacityNotesUnit IDLocation Function Make ModelAHU 6 Mechanical Mezz.PACE DF 33AFSWSI13730 CFM 15 HP/ 480 V/ 1785 rpm/ 71%AHU 7 Mechanical Mezz. ClassroomPACE PF-40AFSWSI22615 CFM 40 HP/ 480 V/ 1480 rpmAHU 8 Auxiliary GymPACE PF-33AFSWSI13500 CFM 10 HP/ 480 V/ 1760 rpm/ 91%AHU 9 Art & Pottery900 CFM 10 HPAHU 10 Corridor4500 CFM 5 HPAHU 11 P IV Penthouse Gym West Side Haakon AIRPAK13500 CFM 3 HP/ 460 V/ 1745 rpm/ 86.5%SF for AHU 1115 HP/ 460 V/ 4130 rpmRF 1A P1 Penthouse AHU 1 Return Fan35500 CFM 10 HP/ 480 V/ 1760 rpm/ 91.7%RF 1B P1 Penthouse AHU 1 Return Fan35500 CFM 10 HP/ 480 V/ 1760 rpm/ 91.7%EF 1 P1 Penthouse Men's Bathroom Exhaust Greenheck SFB-18-50730 CFM 5 HP/ 480 V/ 1740 rpm/ 86.5%EF 2 Chemical Storage Animal Dissection Fan190 CFMLow UseEF 3 Room 123 Fume hood720 CFM 1/2 HP/ 120 VLow UseEF 4 Chemistry Lab 120 Fume hood720 CFM 1/2 HP/ 120 VLow UseEF 5 Physics Lab Fume hood1495 CFM 1/2 HP/ 120 VLow UseEF 6 Science 115 Fume hood720 CFM 1/2 HP/ 120 VLow UseEF 7 Science 115 General Science Exhaust2060 CFM 1/2 HP/ 120 V/ 1750 rpm Low UseEF 8 Physics 1252180 CFM 1/2 HP/ 120 V/ 1750 rpm Low UseEF 9 Chemistry Lab 120 General Science Exhaust2180 CFM 1/2 HP/ 120 V/ 1750 rpm Low UseEF 10 Biology 117 General Science Exhaust2440 CFM 1/2 HP/ 120 V/ 1750 rpm Low UseEF 11 Boiler Room Utilidor Vent2200 CFM 3/4 HP/ 480 V/ 830 rpm Low UseCF 1 Boiler Room Combustion Air Fan4200 CFM 1 1/2 HP/ 480 V/ 830 rpmEF 13 AHU 3 Mechanical Relief AHU 3 Pace U-30AFSTD9300 CFM 5 HP/ 460 V/ 1745 rpm/ 86.5%EF 14 AHU 4 Mechanical Relief AHU 4 Pace U-11FCSTD1200 CFM 3/4 HP/ 1750 rpmsecured, only used for 1 floorEF 15 BalconySpot Light Exhaust Air1000 CFM 1/2 HP/ 1750 rpmnever runsEF 16 Mechanical Mezz. Stage CraftPace PF-16B1SWS12000 CFM 1/2 HP/ 115 V/ 1725 rpm do efficiencyEF 17 Stage Craft Bathroom Exhaust Pace SCF65AM1500 CFM 1/6 HP/ 115 V/ 1725 rpm do efficiencyEF 18 Mechanical Mezz. Kitchen Fume Hood4400 CFM 3 HPEF 19 Above 247 Dishwasher Fan600 FRM 1/4 HPauto on w/dishwasher MotorHP / Volts / RPM / EfficKetchikan High School - Major Equipment InventoryCapacityNotesUnit IDLocation Function Make ModelEF 20 Above 247 Bathroom Exhaust1200 CFM 1/2 HP/ 1725 rpmEF 21 Arts Room Art Main Exhaust532 CFM 1/4 HPEF 22 Kiln Room Kiln Exhaust880 CFM 1/4 HPEF 23Mechanical Room 8Auxiliary Gym BathroomPace SCF-124AM12325 CFM 3/4 HP/ 480 V/ 1725 rpm no efficiency EF 24 Training Room Space Exhaust725 CFMRF 2Mech. Mezz. AuditoriumReturn AirPACE PF40 AFSWSQ21900 CFm 10 HP/ 460 V/ 1760 rpm/ 91%RF 3Mechanical Mezz. StageReturn AirPACE PF36 AFS113530 CFM 7.5 HP/ 480 V/ 1765 rpm/ 91.7%RF 4Mech. Mezz. ClassroomReturn AirPACE PF44 AFSWS129225 CFM 7.5 HP/ 48 VRF 5Mech. Mezz. Aux. GymReturn AirPACE PF 36 AFSWS11800 CFM 5 HP/ 480 V/ 1740 rpm/ 89.5%EF 26Boiler Room PenthouseLocker RoomsSnyder General22RDKB1CW5155 CFM 3 HP/ 460 V/ 1760 rpm/ 89.5%EF 27Boiler Room PenthouseApplied Tech810 CFM 1/2 HP/ 120 V/ 1627 rpmEF 28 Sawdust 200A Collection Fan1640 CFM 5 HP/ 208 V/ 3450 rpmEF 29Welding Shop CeilingSolvent Tank HoodSnyder General16RPKB1CCW10 2000 CFM 1.5 HP/ 460 V/ 1730 rpmEF 30 Auto Shop Grinding Table1000 CFM 2 HP/ 460 V/ 1047 rpmEF 31Boiler Room PenthouseAutomotive ExhaustSnyder General110TCCW2000 CFM 5 HP/ 460 V/ 1750 rpmEF 32 203Hot Water Tank Room McQuay1500 CFM 1/2 HP/ 120 V/ 775 rpm offEF 33 Auto Shop Outboard Engine2250 CFM 2 HP/ 460 V/ 1810 rpmEF 34Boiler Room PenthouseElectric Room2370 CFM 1.5 HP/ 120 V/ 737 rpm 2nd deck191 Maintenance TransformerSquare D EE 150 T3HF150 KVA 115° Temp RiseTP RatedBoiler Room TransformerSquare D 225T3H225 KVA 150° Temp RiseNot TP RatedMechanical Mezz. TransformerSquare D 75T3HETSNIP75 KVA 115° Temp RiseNot TP RatedMechanical Mezz. TransformerSquare D 300T90HFTSNLP 300 KVA 115° Temp RiseNot TP RatedMechanical Mezz. TransformerSquare D 225T3HFTSNLP 225 KVA 115° Temp RiseNot TP RatedUtilidorTransformerSquare D 35549-17222-022 225 KVA 115° Temp RiseNot TP RatedRoofFridge/Freezer Condenser20 B 30 13 Amp 6.3 KVAServer Room TransformerSquare D 34349-17212-064 75 KVA 115° Temp RiseNot TP RatedAHU 12 P-IV Penthouse Gym LockersHaakon AIRPak6310 CFM 7.5 HP/ 460 V/ 1755 rpm/ 88.5%3" water columnRF 12 204 Penthouse Return1660 CFM 1.5 HP/ 460 V/ 1745 rpm/ 84% MotorHP / Volts / RPM / EfficKetchikan High School - Major Equipment InventoryCapacityNotesUnit IDLocation Function Make ModelAHU 13 P-IV Penthouse Technology Complex Haakon AIRPak14930 CFM 15 HP/ 460 V/ 1750 rpm/ 90.2%RF 13 204 Penthouse Return10490 CFM 7.5 HP/ 460 V/ 1775 rpm/ 88.5%WH1 Hot Water Room DHWAutrol WHS 120 CDW120 gallonindirectWH2 Hot Water Room DHWAutrol WHS 120 CDW120 gallonindirectWH3 Hot Water Room DHWAutrol WHS 120 CDW120 gallonindirectCH1 Roof70 tonsAC 3 Boiler RoomIngersol Rand2-253E55 HP/ 230 V/ 1725 rpm/ 81.5%AC 4 Boiler Room Air Compressor ShopIngersol Rand234 D-22 HP/ 208 V/ 1725 rpm/ 78.5%AC 5 Boiler Room Dry Pipe SprinklerIngersol RandP307120T7.5 HP/ 460 V/ 1725 rpm/ 85.5%3 KitchenHot Food Service Seco Elite 3-HF3 KVA 208 V/ 14 Amps5a KitchenBeverage Dispenser Servend MD-250.30 KVA 120 V/ 2.5 Amps5b KitchenIce DispenserServend Series C41.85 KVA 120 V/ 15.4 Amps8a KitchenShake Machine Sanserver 826E1.49 KVA 208 V/ 4.14 Amps8b KitchenSoft Serve Machine Sanserve 826E2.82 KVA 208 V/ 7.82 Amps9 KitchenHot CabinetPrecision RSU-4011.01 KVA 120 V/ 8.40 Amps10a KitchenConvection Oven Lang 2-ECCO-S111650 KVA 208 V/ 31.92 Amps10b KitchenConvection Oven Lang 2-ECCO-S111650 KVA 208 V/ 31.92 Amps11 KitchenRangeLang 3 6-521 KVA 208 V/ 58.29 Amps13 KitchenVentilatorLighting0.60 KVA 120 V/ 5 Amps14a KitchenBrazing PanMarketForge21.18 KVA 208 V/ 58.5 Amps14b KitchenBrazing PanMarketForge2.4 KVA 120 V/ 2 Amps15 KitchenSteamerMarketForge9.01 KVA 208 V/ 25 Amps17 KitchenKettle24.14 KVA 208 V/ 67 Amps20 KitchenWalk-in Freezer6.48 KVA 208 V/ 18.30 Amps22 KitchenWalk-in Cooler6.48 KVA 208 V/ 18.30 Amps25 KitchenDisposer2.82 KVA 208 V/ 7.82 Amps27 KitchenDishwashing44.17 KVA 208 V/ 51 AmpsP 1A Boiler RoomBoiler Circulation Pump LegPaco 11-40957-146201 728 gpm 20 HP/ 480 V/ 1760 rpm/ 93% 71 TPH MotorHP / Volts / RPM / EfficKetchikan High School - Major Equipment InventoryCapacityNotesUnit IDLocation Function Make ModelP 1B Boiler RoomBoiler Circulation Pump LeadPaco 11-40957-146201 728 gpm 20 HP/ 480 V/ 1760 rpm/ 93%P 7A Boiler Room DHW Circulation Taco 1615B3E2-6.853/4 HP/ 480 V/ 1725 rpm no efficiencyP 7B Boiler Room DHW Circulation Taco 1615B3E2-6.853/4 HP/ 480 V/ 1725 rpmP 12ASecondary Loop Taco FM50108.5B2H1C220 370 gpm 10 HP/ 460 V/ 1760 rpm/ 96.7%P 12BSecondary Loop Taco FM50108.5B2H16760 370 gpmP 14AHot Water Tank RoomDHW Circulation Taco 1611B3E14.55 gallon 1/4 HP/ 115 V/ 1725 rpmrecirculation loop legP 14BHot Water Tank RoomDHW Circulation Taco 1611B3E14.55 gallon 1/4 HP/ 115 V/ 1725 rpmrecirculation loop leadP 15AHot Water Tank RoomDHW Circulation Taco 122B3E14.31/4 HP/ 115 V/ 1725 rpmrecirculation loop leadP 15BHot Water Tank RoomDHW Circulation Taco 122B3E14.31/4 HP/ 115 V/ 1725 rpmrecirculation loop legP 2A UtilidorBuilding Heating Loop Paco painted over224 gpm 7.5 HP/ 480 V/ 1760 rpm/ 91%P 2B UtilidorBuilding Heating Loop Paco painted over224 gpm 7.5 HP/ 480 V/ 1760 rpm/ 91%P 3A UtilidorAHU 1&2Paco162 gpm 3 HP/ 480 V/ 1760 rpm/ 88.5%P 3B UtilidorAHU 1&2 Heating Loop Paco painted over162 gpm 3 HP/ 480 V/ 1760 rpm/ 88.5%P 11A UtilidorBuilding Heating Loop Paco 10-30125-1A0001-1743 295 gpm 7.5 HP/ 460 V/ 1170 rpm/ 86.5%P 11B UtilidorBuilding Heating Loop Paco 10-30125-1A0001-1743 295 gpm 7.5 HP/ 460 V/ 1170 rpm/ 86.5%P 9A UtilidorAHU 3/4 Heat Loop Paco 16-30707-130101-1622E3 HP/ 208 V/ 1760 rpm/ 81.5%P 9B UtilidorAHU 3/4 Heat Loop Paco 16-30707-130101-1622E3 HP/ 203 V/ 1760 rpm/ 81.5%P 8A UtilidorAHU 3/4 Heat Loop Paco 13-15707-130101-14421 HP/ 208 V/ 1745 rpmP 8B UtilidorAHU 3/4 Heat Loop Paco 13-15707-130101-1442 Appendix D Abbreviations AHU Air handling unit BTU British thermal unit BTUH BTU per hour CBJ City and Borough of Juneau CMU Concrete masonry unit CO2 Carbon dioxide CUH Cabinet unit heater DDC Direct digital controls DHW Domestic hot water EAD Exhaust air damper EEM Energy efficiency measure EF Exhaust fan Gyp Bd Gypsum board HVAC Heating, Ventilating, Air- conditioning HW Hot water HWRP Hot water recirculating pump KVA Kilovolt-amps kW Kilowatt kWh Kilowatt-hour LED Light emitting diode MBH 1,000 Btu per hour MMBH 1,000,000 Btu per hour OAD Outside air damper PSI Per square inch PSIG Per square inch gage RAD Return air damper RF Return fan SIR Savings to investment ratio SF Supply fan UV Unit ventilator VAV Variable air volume VFD Variable frequency drive E6 – Tt Engineering Cost Estimate Tetra Tech, Inc. 661 Andersen Drive, Pittsburgh, PA 15220-2745 Tel 412.921.7090 Fax 412.921.4040 www.tertratech.com April 8, 2013 Mike Carney Airport Director 1000 Terminal Way Suite 210 Ketchikan, Alaska 99901 Subject: Quotation for Engineering Design and Permitting Services - Wood Pellet Boiler Heating Project Ketchikan Airport & Ketchikan High School Building Ketchikan, Alaska Dear Mr. Carney: We appreciate your interest in engaging Tetra Tech Inc. (Tetra Tech) to support you and your colleagues in seeking engineering design services. This quotation is for design services for the Wood Pellet Boiler and District Heating Project for Ketchikan Gateway Borough (Ketchikan Borough) including the heating system upgrades at the Ketchikan Airport and Ketchikan High School. This is a quotation in accordance with the application requirements for the 2013 USFS Woody Biomass Utilization Grant. Project Understanding The Wood Pellet Boiler and District Heating Project includes two systems. These systems are not currently connected. Preliminary feasibility studies have been performed. A list of parameters established in the Feasibility Study (FS) are tabulated in Table 1 below. A summary of each System is as follows. System 1:The current heating system in this complex (32,000 sq. ft.) consists of 2 Cleaver Brooks oil fired boilers installed in 1971. They supply heating and domestic hot water to the facility. These oil-fired boilers, are at the end of their economic life and are scheduled for replacement. Based on FS data, it is proposed that they be replaced with a 450kW Wood Pellet boiler and a 360kW electrical backup. System 2:The heating area of system 2 is approximately 110,000 square feet and is heated by one 3,770,000 Btu/hr output hot water boiler and two 4,070,000 Btu/hr output hot water boilers. The existing boilers run on fuel oil, are original to recent renovation work in the mid 1990’s and are in good condition. FS work estimates that a 4.7 MMBtu/hr hot water boiler would be sufficient to meet base load demands. One or more of the existing boilers may remain to accommodate peak loads and biomass boiler downtime. The new system upgrades are also summarized in Table 1 in accordance with the FS documentation. The fuel for the proposed units is woody biomass pellets. Quotation for Engineering Design and Permitting Services - Wood Pellet Boiler Heating Project Ketchikan Airport & Ketchikan High School Page 2 Table 1: Existing and New System Parameters System 1 System 2 Existing System Fuel Loads Peak Month (MMBTUs) 464 (Jan 2011) Unknown Low Month (MMBTUs) 87 (June 2011) Unknown Average Month (MMBTUs) 264 (2010-2012) Unknown Annual (MMBTUs) ~3,170 ~18,300 New System Requirements Number of Boilers Desired 1 1 Single boiler rated capacity 1,500,000 BTU/hr 4,700,000 BTU/hr Fuel Wood Pellets Wood Pellets Output Hot Water Hot Water Combined Boiler Capacity 1.5 MMBTU/hr 4.7 MMBTU/hr Expected CapEx $600,000 $1,500,000 Site Considerations Heating Area 32,000 sq. ft. 110,000 sq. ft. Backup boiler available? No – Backup considerations will need to be part of design Yes – existing boilers will serve as back-ups. New building required for boiler housing? No – It is assumed new boilers will fit into existing boiler space. Yes – Boiler housing and pellet silo. Space is available adjacent to the HS. Piping from new building to school estimated 94 ft. Pellet silo (or equivalent) required for fuel storage? Yes Yes Natural gas available? Unknown (unlikely) Unknown (unlikely) Stated system integration concerns? None None Scope of Work Task 1: Process and Design Engineering The process and design engineering, with associated vendor design review for basis conformity, included in this quotation includes the following components: Receiving/handling/storage facilities Pellet boiler system Housing (where applicable) Mechanical, Electrical and Piping (MEP) and instrumentation The process and design engineering will include the mechanical, electrical, piping (MEP), civil, and structural engineering conducted in three phases. Quotation for Engineering Design and Permitting Services - Wood Pellet Boiler Heating Project Ketchikan Airport & Ketchikan High School Page 3 A.30% Conceptual Design & Permitting Analysis Tetra Tech will identify all major components including the process, mechanical, electrical, and plumbing (MEP), site, civil, and structural components of the system. This design package will not include a specific vendor for each component, unless otherwise deemed necessary by Ketchikan or the project sites. This task will include several components as outlined in the project timeline found in the appendix. Concurrent with the 30% design, the contractor will conduct a full permitting analysis in order to obtain all necessary construction, operation, and environmental permits. Additionally, Tetra Tech Inc. will investigate and evaluate the existing hot water distribution system within the buildings to be heated. We will make an assessment and evaluate the existing systems for (1) adequacy of the fluid and heat exchange systems (2) expected interconnection and (3) anticipated operation of the new integrated system. This assessment will become part of the 30% design package such as equipment specifications and will ultimately be used to discuss with potential vendors for the new equipment. B.60% Design – Site, Civil, Structural and MEP + Vendor Interface This aspect of the project will include preparation of the specification packages and interface with potential vendors. We will supply the specification package as part of Requests for Information (RFIs) from the potential vendors. The contractor will work with these vendors’ responses and complete the 60% design package including all of the components described in the 30% design as well as the Site, Civil, Structural and MEP components C.95% Design- Entire Site, Civil, Structural and MEP + Vendor Interface This aspect of the project will include further refinement and interface with vendors. At this point, the vendors will provide final pricing of materials and/or equipment packages. Tetra Tech will support Ketchikan to allow them to conduct and complete the procurement process outside of this scope. As a critical component to the 90% design package, Tetra Tech will provide a full technical evaluation of the vendor design packages. Tetra Tech will work with these vendors and complete the 95% design package including all of the components described above. In addition, the detailed piping design for interconnection of produced energy to existing facility heat loops will be included in this phase. Task 2: Permitting Once the design is complete, permitting will be assessed and completed for the project. At this time the types of permitting are not well defined. Permitting for a project of this nature is likely to include a comprehensive evaluation of media and resources for local, state, and federal jurisdiction, as appropriate. Based upon the completion of more than 200 similar projects permitted across the United States the variability of the permitting needed varies significantly. One critical factor, for example, is if the USFS grant is allocated to this project will it require compliance with NEPA regulations. Table 2 identifies media and resource items are likely to be addressed in permits required for this project. In addition, regulatory checklists and forms including background information and places for responses to questions regarding the following environmental elements will be addressed: Quotation for Engineering Design and Permitting Services - Wood Pellet Boiler Heating Project Ketchikan Airport & Ketchikan High School Page 4 Table 2: Media and resources that may require permit evaluation Earth Resources (geology and soils) Solid Waste Energy and Natural Resources Health/Safety and Noise Light and Glare Air Quality and Greenhouse Gases Transportation Housing Impacts Historic and Cultural Preservation Public Services Water Resources, Quality and Wetlands Socioeconomics Land Use Utilities Operation Environmental Plants/Animals Cost Quotation Tetra Tech’s cost quotation for this work is included in Table 3. Note that the costs for each unit have been broken out and then summarized below. Table 3: Cost Quotation Cost Proposal Summary Biomass Design for: Ketchikan Borough, Ketchikan, AK by: Tetra Tech, Inc. Task and Description LaborTravelTotal1 ProposalTypeLabor Cost Ketchikan System 1 Task 1 - Design - small unit $ 69,317 2,153$ 71,470$ Task 2 - Permitting - small unit $ 14,490 488$ 15,147$ Ketchikan System 2 Task 3 - Design - large unit $ 86,095 1,952$ 88,047$ Task 4 - Permitting - large unit $ 16,063 423$ 16,486$ TOTAL $ 185,965 $ 5,015 $ 191,150 FFP1 Totals by Subject Design 159,517$ Permitting 31,633$ TOTAL $ 185,965 $ 5,015 $ 191,150 FFP1 Notes: 1. Total costs include estimation of incidentals. 2. FFP - firm fixed price (includes a comprehenisve not to excced value) Quotation for Engineering Design and Permitting Services - Wood Pellet Boiler Heating Project Ketchikan Airport & Ketchikan High School Page 5 Considerations and Assumptions Tetra Tech’s considerations and assumptions are listed below: 1.A refinement of the scope of work including definition of pre-design/design parameters and permits/permit requirements are required in order to provide a firm fixed price proposal to conduct the services noted above to Ketchikan Borough. Therefore, the pricing included is an estimation of cost. 2.Tetra Tech is prepared to begin this scope immediately upon refinement of the parameters noted in item 1 in a mutually agreeable manner with Ketchikan Borough. Confidentiality Statement and Disclaimer The content of this Quotation is not intended for the use of, nor is it intended to be relied upon, by any person, firm, or corporation other than Ketchikan Borough. Tetra Tech denies any liability whatsoever to other parties who may obtain access to this Proposal for damages or injury suffered by such third parties arising from the use of this document or the information contained herein. This Proposal is based upon information provided to Tetra Tech by Ketchikan Borough. If the items received are flawed or incorrect then cost adjustments may be required. This Quotation is not a formal proposal until additional design parameters and permitting requirements can be determined. Conclusion Tetra Tech is excited about the opportunity to continue to support Ketchikan Borough on this Project. Tetra Tech provides you an outstanding, experienced, performance focused team. We will add value to Ketchikan Borough in executing their respective business plans. Our complete team is ready to immediately commence work. Please call me (412-921-8398) or email me at Keith.Henn@tetratech.com if you have any questions and to discuss our next steps on this Project. Sincerely, Keith W. Henn, PG Director of Remediation and Energy Tetra Tech, Inc. Appendix F – Tt Construction Costing Calculations Tetra Tech, Inc. 661 Andersen Drive, Pittsburgh, PA 15220-2745 Tel 412.921.7090 Fax 412.921.4040 www.tertratech.com September 20, 2013 Ketchikan Gateway Borough 1900 First Avenue Suite 210 Ketchikan, Alaska 99901 Subject: Cost Estimate for Construction - Wood Pellet Boiler Heating Project Ketchikan Airport & Ketchikan High School Building Ketchikan, Alaska Dear Ketchikan Gateway Borough: In support of your application for Phase IV construction funds under Round VII of the Renewable Energy Grant Fund and Recommendation Program administered by the Alaska Energy Authority (Requests for Grant Applications (RFA) AEA 2014-006), Tetra Tech is pleased to present this engineering analysis and preliminary cost estimate for construction of biomass heating systems at the Ketchikan Airport and Ketchikan Gateway Borough High School. Project Understanding The Wood Pellet Boiler and District Heating Project includes two systems. These systems are not currently connected. Preliminary feasibility studies have been performed. A list of parameters established in the Feasibility Study (FS) are tabulated in Table 1 below. A summary of each System is as follows.  System 1: The current heating system in this complex (32,000 sq. ft.) consists of 2 Cleaver Brooks oil fired boilers installed in 1971. They supply heating and domestic hot water to the facility. These oil -fired boilers, are at the end of their economic life and are scheduled for replacement. Based on FS data, it is proposed that they be replaced with a 450kW Wood Pellet boiler and a 360kW electrical backup.  System 2: The heating area of system 2 is approximately 110,000 square feet and is heated by one 3,770,000 Btu/hr output hot water boiler and two 4,070,000 Btu/hr output hot water boilers. The existing boilers run on fuel oil, are original to recent renovation work in the mid 1990’s and are in good condition. FS work estimates that a 4.7 MMBtu/hr hot water boiler would be sufficient to meet base load demands. One or more of the existing boilers may remain to accommodate peak loads and biomass boiler downtime. The biomass boiler envisioned is a containerized system secured to a poured slab foundation external to the High School buildings and interconnected to the existing heating system. The new system upgrades are also summarized in Table 1 in accordance with the FS documentation. The fuel for the proposed units is woody biomass pellets. Cost Estimate for Construction Wood Pellet Boiler Heating Project Ketchikan Airport & Ketchikan High School Page 2 Tetra Tech, Inc. 661 Andersen Drive, Pittsburgh, PA 15220-2745 Tel 412.921.7090 Fax 412.921.4040 www.tertratech.com Table 1: Existing an d New System Parameters System 1 System 2 Existing System Fuel Loads Peak Month (MMBTUs) 464 (Jan 2011) Unknown Low Month (MMBTUs) 87 (June 2011) Unknown Average Month (MMBTUs) 264 (2010-2012) Unknown Annual (MMBTUs) ~3,170 ~18,300 New System Requirements Number of Boilers Desired 1 1 Single boiler rated capacity 1,500,000 BTU/hr 4,700,000 BTU/hr Fuel Wood Pellets Wood Pellets Output Hot Water Hot Water Combined Boiler Capacity 1.5 MMBTU/hr 4.7 MMBTU/hr Expected CapEx $600,000 $1,500,000 Site Considerations Heating Area 32,000 sq. ft. 110,000 sq. ft. Backup boiler available? No – Backup considerations will need to be part of design Yes – existing boilers will serve as back-ups. New building required for boiler housing? No – It is assumed new boilers will fit into existing boiler space. Yes – Boiler housing and pellet silo. Space is available adjacent to the HS. Piping from new building to school estimated 94 ft. Pellet silo (or equivalent) required for fuel storage? Yes Yes Natural gas available? Unknown (unlikely) Unknown (unlikely) Stated system integration concerns? None None Construction Cost Estimate Construction cost estimates are included below for the Ketchikan Gateway Borough High School and Ketchikan Airport projects, respectively. Cost Estimate for Construction Wood Pellet Boiler Heating Project Ketchikan Airport & Ketchikan High School Page 3 Tetra Tech, Inc. 661 Andersen Drive, Pittsburgh, PA 15220-2745 Tel 412.921.7090 Fax 412.921.4040 www.tertratech.com Table 2: Ketchikan Gateway Borough High School Construction Cost Estimate TASK UNIT QTY UNIT $TOTAL BASIS OF ESTIMATE Site Prep $1,632 Source: RS Means median price with 10% location factor. 1.1 Fine Grade SY 72 $2.00 $144 Assumes that craft labor and material available from local sources. 1.2 Gravel Base CY 24 $62.00 $1,488 Boiler Slab $7,977 Source: RS Means median price with 10% location factor. 2.1 Insulation SF 540 $2.00 $1,080 Assumes that craft labor and material available from local sources. 2.2 Forms LF 94 $14.00 $1,316 2.3 Rebar TN 0.7 $2,833.00 $1,983 2.4 Concrete CY 14 $257.00 $3,598 2.5 Finish SF 540 $0.50 $270 Pellet Boiler $683,000 Source: Consultant Estimate 3.1 4.7 MMBTU Pellet Boiler LS 1 $320,000.00 $320,000 3.2 Containerized Boiler Surround LS 1 $306,000.00 $306,000 3.3 Pellet Silo LS 1 $27,000.00 $27,000 3.4 Delivery 1 $30,000.00 $30,000 Site Utilities $20,000 4.1 Electrical / Coms LS 1 $20,000.00 $20,000 200 amp 3 phase 4 wire UG service to existing utility pole Process Equipment Installation $135,420 5.1 Set Equipment LS 1 $7,120.00 $7,120 Assume 2 days effort for millright crew and misc material 5.2 Mechanical Connections LS 1 $9,680.00 $9,680 Assume 3 days effort for mechanical crew and misc material 5.3 Electrical Connections LS 1 $7,120.00 $7,120 Assume 2 days effort for electrical crew and misc material 5.4 Piping interconnection to HS ft 150 $370.00 $55,500 4"Hot Water Pipe Boiler House to HS (75 linear ft) 5.5 KGB-HS Integration LS 1 $56,000.00 $56,000 Source: Applicant Records Professional Staff Month 4 $33,090 $132,360 6.1 Project Manager Day 3 $960.00 $2,880 6.2 Site Superintendent Day 22 $800.00 $17,600 6.3 Project Services (Back Office)Day 3 $640.00 $1,920 6.4 Per Diem Day 30 $223.00 $6,690 Outside CONUS rate for location listed by DOD 6.5 Travel Trip 2 $2,000.00 $4,000 Subtotal $980,389 Contingency 20%$196,077.82 TOTAL COST $1,176,467 Ketchikan Gateway Borough Equipment Schedule and Capital Estimate Cost Estimate for Construction Wood Pellet Boiler Heating Project Ketchikan Airport & Ketchikan High School Page 4 Tetra Tech, Inc. 661 Andersen Drive, Pittsburgh, PA 15220-2745 Tel 412.921.7090 Fax 412.921.4040 www.tertratech.com Table 3: Ketchikan Airport Construction Cost Estimate Considerations and Assumptions Tetra Tech’s considerations and assumptions are listed below: 1. A refinement of the scope of work including definition of pre-design/design parameters and permits/permit requirements are required in order to provide a firm fixed price proposal to conduct the services noted above to Ketchikan Borough. Therefore, the pricing included is an estimation of cost. Confidentiality Statement and Disclaimer The content of this Cost Estimate is not intended for the use of, nor is it intended to be relied upon, by any person, firm, or corporation other than Ketchikan Gateway Borough. Tetra Tech denies any liability whatsoever to other Ketchikan Airport Capital Estimate* TASK TOTAL BASIS OF ESTIMATE Pellet Silo and auger $18,000 Applicant Records Pellet Foundation $5,000 Applicant Records Pellet Boiler - installed in existing building $119,000 Applicant Records Demolition of Existing Boilers $5,000 Applicant Records Back-up electric heater (360 KW)$60,000 Applicant Records Biomass Circulating Pump Assembly $4,000 Applicant Records Mixing Valve $4,000 Applicant Records Building Circulating Pump Assembly $4,000 Applicant Records Hydronic Thermal Expansion Tank $5,000 Applicant Records Piping and insulation $6,000 Applicant Records Valves and instruments $3,500 Applicant Records Pipe hangers $1,000 Applicant Records Heat Exchanger $7,600 Applicant Records Misc (hardware, room/board/fuel/rent)$10,000 Applicant Records Freight $30,000 Applicant Records Equipment rental $20,000 Applicant Records Electrical $15,000 Applicant Records Labor $75,000 Applicant Records Professional Staff $99,270 Source: Consultant Estimate (3 mo staff) SubTotal $491,370 20% Contingency $98,274 Total $589,644 Cost Estimate for Construction Wood Pellet Boiler Heating Project Ketchikan Airport & Ketchikan High School Page 5 Tetra Tech, Inc. 661 Andersen Drive, Pittsburgh, PA 15220-2745 Tel 412.921.7090 Fax 412.921.4040 www.tertratech.com parties who may obtain access to this Proposal for damages or injury suffered by such third parties arising from the use of this document or the information contained herein. This Proposal is based upon information provided to Tetra Tech by Ketchikan Gateway Borough. If the items received are flawed or incorrect then cost adjustments may be required. This Quotation is not a formal proposal until additional design parameters and permitting requirements can be deter mined. Conclusion Tetra Tech is excited about the opportunity to continue to support Ketchikan Gateway Borough on this Project.