HomeMy WebLinkAboutWWTP grant applicationRenewable Energy Fund Round VII
Grant Application - Heat Projects
AEA 2014-006 Application Page 1 of 22 7/2/2011
Application Forms and Instructions
This instruction page and the following grant application constitutes the Grant Application Form
for Round VII of the Renewable Energy Fund Heat Projects only. If your application is for
energy projects that will not primarily produce heat, please use the standard application form
(see RFA section 1.5). An electronic version of the Request for Applications (RFA) and both
application forms is available online at: www.akenergyauthority.org/REFund7.html.
If you need technical assistance filling out this application, please contact Shawn Calfa,
the Alaska Energy Authority Grant Administrator at (907) 771-3031 or at
scalfa@aidea.org.
If you are applying for grants for more than one project, provide separate application
forms for each project.
Multiple phases for the same project may be submitted as one application.
If you are applying for grant funding for more than one phase of a project, provide
milestones and grant budget for each phase of the project.
In order to ensure that grants provide sufficient benefit to the public, AEA may limit
recommendations for grants to preliminary development phases in accordance with 3
ACC 107.605(1).
If some work has already been completed on your project and you are requesting
funding for an advanced phase, submit information sufficient to demonstrate that the
preceding phases are completed and funding for an advanced phase is warranted.
If you have additional information or reports you would like the Authority to consider in
reviewing your application, either provide an electronic version of the document with
your submission or reference a web link where it can be downloaded or reviewed.
In the sections below, please enter responses in the spaces provided, often under the
section heading. You may add additional rows or space to the form to provide sufficient
space for the information, or attach additional sheets if needed.
REMINDER:
Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials
submitted to the Authority may be subject to disclosure requirements under the act if no
statutory exemptions apply.
All applications received will be posted on the Authority web site after final
recommendations are made to the legislature.
In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or
proprietary company data be kept confidential subject to review and approval by the
Authority. If you want information is to be kept confidential the applicant must:
o Request the information be kept confidential.
o Clearly identify the information that is the trade secret or proprietary in their
application.
o Receive concurrence from the Authority that the information will be kept
confidential. If the Authority determines it is not confidential it will be treated as a
public record in accordance with AS 40.25 or returned to the applicant upon
request.
Renewable Energy Fund Round VII
Grant Application - Heat Projects
AEA 2014-006 Grant Application Page 2 of 22 7/2/2013
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
City and Borough of Sitka
Type of Entity: Fiscal Year End
Tax ID # 92‐0041163 Tax Status: For-profit Non-profit x Government ( check one)
Date of last financial statement audit: 6/30/12
Mailing Address
100 Lincoln Street, Sitka AK 99835
Physical Address
--same--
Telephone
(907) 747-1883
Fax
(907) 747-3158
Email
davidl@cityofsitka.com
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
David Longtin, P.E.
Title
Senior Engineer
Mailing Address
100 Lincoln Street, Sitka AK 99835
Telephone
(907) 747-1883
Fax
(907) 747-3158
Email
davidl@cityofsitka.com
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
x A local government, or
A governmental entity (which includes tribal councils and housing authorities);
Yes
or
No
1.2.2 Attached to this application is formal approval and endorsement for the project by
the applicant’s board of directors, executive management, or other governing
authority. If the applicant is a collaborative grouping, a formal approval from each
participant’s governing authority is necessary. (Indicate Yes or No in the box )
Yes
or
No
1.2.3 As an applicant, we have administrative and financial management systems and
follow procurement standards that comply with the standards set forth in the grant
agreement (Section 3 of the RFA).
Yes
or
No
1.2.4 If awarded the grant, we can comply with all terms and conditions of the award as
identified in the Standard Grant Agreement template at
http://www.akenergyauthority.org/veep/Grant-Template.pdf. (Any exceptions
should be clearly noted and submitted with the application.)
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Grant Application - Heat Projects
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Yes
or
No
1.2.5 We intend to own and operate any project that may be constructed with grant
funds for the benefit of the general public. If no please describe the nature of the
project and who will be the primary beneficiaries.
SECTION 2 – PROJECT SUMMARY
This section is intended to be no more than a 2-3 page overview of your project.
2.1 Project Title – (Provide a 4 to 7 word title for your project). Type in space below.
Sitka: Wastewater Treatment Plant Effluent Heat Pump
2.2 Project Location –
Include the physical location of your project and name(s) of the community or communities that will
benefit from your project in the subsections below.
2.2.1 Location of Project – Latitude and longitude, street address, or community name.
Latitude and longitude coordinates may be obtained from Google Maps by finding you project’s location on the map
and then right clicking with the mouse and selecting “What is here? The coordinates will be displayed in the Google
search window above the map in a format as follows: 61.195676.-149.898663. If you would like assistance obtaining
this information please contact AEA at 907-771-3031.
The project is located in Sitka at 100 Alice Loop. The Latitude and Longitude are: N57 02'
50.62", W135 21' 18.82"
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
Sitka, AK
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind to Heat Biomass or Biofuels
Hydro to Heat Solar Thermal
Heat Recovery from Existing Sources X Heat Pumps
Other (Describe)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre-Construction Construction
I. Reconnaissance X III. Final Design and Permitting
II. Feasibility and Conceptual Design X IV. Construction and Commissioning
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of the proposed heat project.
Design and construction of an effluent heat pump system to displace approximately 95% of the
heating oil usage at the Wastewater Treatment Plant on Japonski Island in the City and
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AEA 2014-006 Grant Application Page 4 of 22 7/2/2013
Borough of Sitka at a seasonal efficiency of 400%. The existing oil fired boilers have reached
the end of their useful life and need to be replaced.
The effluent, with an average temperature nearing 50°F, passes by the boiler room, easing the
integration of the heat resource. The effluent from the wastewater treatment plant would pass
through an in-line screen prior to going through a stainless steel plate-and-frame heat
exchanger; an antifreeze solution would be heated by the effluent on the other side of the heat
exchanger. The refrigerant from the 868 MBH water-to-water heat pump unit would be heated
by the antifreeze solution in the evaporator. Using the vapor compression cycle, the heat pump
would then "lift" this heat to 115°F during the compression cycle, and then transfer that heat to
the condenser loop to supply heating appliances. 220 gallons per minute of effluent will be
required to provide sufficient heat to the evaporator under design load conditions. A variable
frequency drive on the existing recycled effluent pump will provide the correct flow of effluent to
the heat exchanger under varied heat load conditions.
As the Wastewater Treatment Plant is currently designed for 180°F in its heating system, the air
handlers, unit heaters, cabinet unit heaters, and baseboard heaters would need to be replaced
to increase the amount of surface area of heating coils to compensate for the 115F temperature
hydronic water supplied by the heat pump system.
Backup heat would be supplied by a new 955 MBH fuel oil boiler in conjunction with a storage
tank.
This proposal is a direct result of the attached Renewable Energy Feasibility Analysis completed
by Alaska Energy Engineering, LLC in July 2012 under a RE Fund Round 3 grant. See
Attachment 1.
2.5 PROJECT BENEFIT
Briefly discuss the financial and public benefits that will result from this heat project, (such as reduced fuel
costs, lower energy costs, local jobs created etc.)
The proposed heat pump project will displace approximately 95% of the annual heating oil
usage in the existing building, the remaining 5% will be supplied by a recently installed 954
MBH fuel oil boiler. The existing oil boiler heating system is consuming approximately 15,000
gallons per year of heating oil ($60,000 per year at the current price of $4.01/gallon), and 4,000
kWh of electricity. The proposed effluent source heat pump system will consume approximately
133,000 kWh of electricity (costing $15,000 per year), with back up oil boiler consuming 840
gallons of heating oil ($3,360 at current pricing). The anticipated net heating fuel savings is
14,190 gallons. The anticipated net energy cost savings (heating oil savings minus extra
electricity required for heat pump system) is $42,000 per year. A contract technician will be
utilized to monitor and maintain the heat pump system. The estimated reduction in annual
greenhouse gas emissions will be 155 tons CO2.
2.6 PROJECT BUDGET OVERVIEW
Briefly discuss amount of funds needed, the anticipated sources of funds, and the nature and source of
other contributions to the project.
The project has a total cost of $849,984. A cash match of $113,000 will be provided by CBS to
complete HVAC improvements necessary for integration of the proposed heat pump project.
The grant request amount is $849,984. See Attachment 3.
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2.7 COST AND BENEFIT SUMARY
Include a summary of grant request and your project’s total costs and benefits below.
Grant Costs
(Summary of funds requested)
2.7.1 Grant Funds Requested in this application $ 849,984
2.7.2 Cash match to be provided $ 113,000
2.7.3 Total In-kind match to be provided (sum of lines below) $
Biomass or Biofuel inventory on hand $
Energy efficiency improvements to buildings to be
heated (within past 5 years or committed prior to
proposed project completion)
$
Other In-Kind match to be provided $
2.7.4 Other grant funds to be provided $
2.7.5 Other grant applications not yet approved $
2.7.6 Total Grant Costs (sum of 2.7.1 through 2.7.4) $ 962,984
Project Costs & Benefits
(Summary of total project costs including work to date and future cost estimates to get to a fully
operational project)
2.7.7 Total Project Cost Summary from Cost Worksheet, Section
4.4.4, including estimates through construction.
$ 849,984 + $113,000 for
related improvements
2.7.8 Additional Performance Monitoring Equipment not covered
by the project but required for the Grant Only applicable to
construction phase projects.
$
2.7.9 Estimated Direct Financial Benefit (Savings) $ 48,644/year
2.7.10 Other Public Benefit If you can calculate the benefit in terms
of dollars please provide that number here and explain how you
calculated that number in Section 5 below.
$
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SECTION 3 – PROJECT MANAGEMENT PLAN
Describe who will be responsible for managing the project and provide a plan for successfully
completing the project within the scope, schedule and budget proposed in the application.
3.1 Project Manager
Tell us who will be managing the project for the Grantee and include contact information, a
resume and references for the manager(s). In the electronic submittal, please submit resumes
as separate PDFs if the applicant would like those excluded from the web posting of this
application. If the applicant does not have a project manager indicate how you intend to solicit
project management support. If the applicant expects project management assistance from AEA
or another government entity, state that in this section.
Project manager – David Longtin, P.E., Senior Engineer for the City and Borough of Sitka
100 Lincoln Street, Sitka AK 99835
(907) 747-1883 (p) (907) 747-3158 (f) davidl@cityofsitka.com
See Attachment 2 for resume.
3.2 Project Schedule and Milestones
Please fill out the schedule below. Be sure to identify key tasks and decision points in in your
project along with estimated start and end dates for each of the milestones and tasks. Please
clearly identify the beginning and ending of all phases of your proposed project.
Please fill out form provided below. You may add additional rows as needed.
Milestones Tasks
Start
Date
End
Date
Project scoping and contractor solicitation completed 8/14 8/14
Permit applications completed 10/14 11/14
Final EA and mitigation plans completed note: work is in existing building NA NA
Resolution of land use, right-of-way issues note: work is in existing building NA NA
Permitting, rights-of-way, site control completed note: work is in existing building NA NA
Final system design completed 9/14 12/14
Final cost estimate completed 11/14 12/14
Updated economic and financial analyses completed 12/14 12/14
Power or heat sale agreements in place note: this is a heating project NA NA
Final business and operational plan completed note: this is a heating project NA NA
Design and feasibility requirements completed 12/14 12/14
Bid documents completed 12/14 1/15
Vendor selected and award in place 1/15 2/15
Construction 3/15 6/15
Integration and testing 6/15 6/15
Decommissioning of old system complete 6/15 6/15
Final acceptance, commissioning and start-up
complete
7/15 7/15
Required operations reporting 7/15 7/25
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3.3 Project Resources
Describe the personnel, contractors, accounting or bookkeeping personnel or firms, equipment,
and services you will use to accomplish the project. Include any partnerships or commitments
with other entities you have or anticipate will be needed to complete your project. Describe any
existing contracts and the selection process you may use for major equipment purchases or
contracts. Include brief resumes and references for known, key personnel, contractors, and
suppliers as an attachment to your application.
The City and Borough of Sitka (CBS) will utilize the Finance and Public Works Departments to
execute this project. The accounting staff of the Finance Department will provide grant
accounting services, and the engineering staff of the Public Works Department will provide a
project manager. The Public Works engineering staff consists of the municipal engineer, two
civil engineers, one architect/project manager, one CAD technician and two clerical staff
members.
The work will be designed by a consultant selected in a performance-based procurement. When
the design is complete, the consultant will prepare bid documents that will result in the selection
of the general contractor that satisfies the minimum qualifications and submits the lowest bid. All
invoices and pay requests will be reviewed and, when acceptable, approved by the CBS project
manager.
The project manager will oversee the work, review and approve pay requests and submit them
to the accounting staff for payment and recordkeeping. If any owner-furnished materials will be
used on the project, they will be procured and tracked according to established CBS
procedures. The resume for the CBS project manager is attached.
The CBS operates and maintains the wastewater treatment plant.
3.4 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
Please provide an alternative contact person and their contact information.
The CBS project manager will be the sole point of contact for the design consultant, the general
contractor and the Authority. In this way, all project communication will be funneled through one
individual who will be well-informed of the project status. The project manager will report to AEA
on milestones and submissions on a monthly basis. These reports will be augmented by a grant
funding expenditures report prepared by the grant accountant.
In the absence of the project manager, a temporary project manager will be assigned. The
project manager will brief the temporary project manager on the status of the project and
upcoming milestones. The project manager will formally notify all interested parties of the
change, and will provide contact information for the temporary project manager. The temporary
project manager will be a qualified individual from the CBS Public Works Department.
3.5 Project Risk
Discuss potential problems and how you would address them.
The risk is minimal with this project. The design and installation of the heat pump infrastructure
is a standalone project that does not rely on the schedule or budget of another project. The
technology is proven. A potential risk is that a complication that was not identified in the
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Grant Application - Heat Projects
AEA 2014-006 Grant Application Page 8 of 22 7/2/2013
feasibility study conceptual design is discovered during the design phase. This could increase
the construction cost estimate and potentially lengthen the project schedule.
SECTION 4 – PROJECT DESCRIPTION AND TASKS
The level of information will vary according to phase(s) of the project you propose to
undertake with grant funds.
If some work has already been completed on your project and you are requesting funding for
an advanced phase, submit information sufficient to demonstrate that the preceding phases
are satisfied and funding for an advanced phase is warranted.
4.1 Proposed Energy Resource
Describe the potential extent/amount of the energy resource that is available.
Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be
available for the market to be served by your project. For pre-construction applications, describe
the resource to the extent known. For design and permitting or construction projects, please
provide feasibility documents, design documents, and permitting documents (if applicable) as
attachments to this application.
The proposed renewable heat resource is the recycled effluent from the wastewater treatment
plant. Currently the recycled effluent is used for equipment spray down and cleaning. The amount
of heat available from the recycled effluent is limited by the flow and temperature of the effluent.
To match the design load, 220 gpm of recycled effluent will be required, which can be supplied by
the existing recycled effluent pump. As the effluent temperature is between 46 and 53°F, as seen
on the figure below the time period of September 2008-May 2009, the system efficiency will be
greater than ground-source or seawater source heat pumps.
As the recycled effluent is readily available and reliable source of 46F to 52F heat, the heat pump
system will be effective in significantly reducing the reliance on heating oil. As the hydronic heat
from the heat pump at 115F will be a lower temperature than the HVAC is designed for (180F),
upgrades in heating appliances will be required to compensate for the lower temperature.
The feasibility of the effluent heat pump was compared to ground source heat pumps and air
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source heat pumps in a July 2012 report by Alaska Energy Engineering, LLC. This feasibility
report is included as an attachment, and serves as the technical and financial basis for
proceeding with the effluent source heat pumps as a viable alternative to heating oil or electric
heat for the facility. The effluent heat pump system had the lowest life cycle cost of the three
alternatives studied.
A new 954 MBH fuel oil boiler has recently been installed for supplemental and backup heat.
4.1.2 For Biomass Projects Only
Identify any wood inventory questions, such as:
Ownership/Accessibility. Who owns the land and are their limitations and restrictions to
accessing the biomass resource?
Inventory data. How much biomass is available on an annual basis and what types
(species) are there, if known?
N/A
4.2.1 Basic configuration of Existing Heating Energy System
Briefly discuss the basic configuration of the existing energy system. Include information about the
number, size, age, efficiency, and type of generation.
The Wastewater Treatment Plant currently has a mechanical room with two 954 MBH oil boilers
with an AFUE rating of 68%, which have reached their usable life. The proposed base case
includes replacing the existing boilers in kind with two new 954 MBH units.
4.2.2 Existing Heating Energy Resources Used
Briefly discuss your understanding of the existing energy resources. Include a brief discussion of
any impact the project may have on existing energy infrastructure and resources.
The existing energy resource used is #1 heating oil with a current price of $4.01 per gallon. The
price of heating oil is driven heavily by the global price of oil which is estimated to escalate at a
minimum of 6% per year of the 20 year life of this project. Grid electricity is supplied by the City
and Borough of Sitka, the power is nearly 100% hydropower from Blue Lake with supplemental
diesel being consumed in years with lower rainfall. CBS is in the process of increasing the storage
and capacity of Blue Lake Hydro, which will decrease the intermittent diesel generation.
The current effective price of grid electricity paid by CBS for the Wastewater Treatment Plant is
$0.113/KWH. Electricity is estimated to escalate at a rate of 2.5% per year over the 20 year life of
the project.
4.2.3 Existing Heating Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
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70% of space heating in Sitka is supplied by heating oil, but 20% is supplied by electric
resistance. With the highest proportion in Alaska, 3% of all heating in Sitka is provided by heat
pumps There is no plan to bring natural gas to Sitka so expensive heating oil makes a logical
target for displacement with cost effective renewable energy heat sources. No effluent heat pump
system currently exists in Sitka, and this project is the first known example in Alaska. The project
is not expected to have an impact on the rate of local electricity because the electricity
consumption is approximately 0.1% of the local yearly consumption.
4.3 Proposed System
Include information necessary to describe the system you are intending to develop and address
potential system design, land ownership, permits, energy efficiency and environmental issues.
4.3.1 System Design
Provide the following information for the proposed renewable energy system:
A description of renewable energy technology specific to project location
Optimum installed capacity
Anticipated capacity factor
Anticipated annual generation
Anticipated barriers
Basic integration concept
Delivery methods
Energy efficiency measures (building envelope)
As described in the July 2012 Renewable Energy Feasibility Analysis by Alaska Energy
Engineering, LLC, the most cost effective renewable energy technology specific to the WWTP
project location is an effluent heat pump.
The optimum installed capacity is one high efficiency water-to-water heat pump with 72 tons
capacity. The total capacity of the proposed heat pump system is 72 tons, or 868,000 BTU/hour
(868 MBH). This will provide 70% of the design heating load and 95% of the seasonal heating
requirement.
The anticipated capacity factor for the heat pump is approximately 20% year round average, with
higher use in winter and little or no use in summer, as the fuel oil boilers have been traditionally
shut off from April to October. The anticipated annual heat generation is 1,415 MMBtu at an
average COP of 4, the remaining 104 MMBtu will be produced by the backup heating oil boiler.
Heat from the heat pumps will ultimately be delivered to new low temperature heating appliances
throughout the building via hydronic loops.
4.3.2 Land Ownership
Identify potential land ownership issues, including whether site owners have agreed to the project
or how you intend to approach land ownership obtain harvest contracts and access issues.
The entire project will be located on the Wastewater Treatment Plant property currently owned by
CBS, so there are no known land ownership issues.
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4.3.3 Permits
Provide the following information as it may relate to permitting and how you intend to address
outstanding permit issues.
List of applicable permits
Anticipated permitting timeline
Identify and discussion of potential barriers
No specific permitting requirements exist for effluent heat pumps. It is anticipated that a
mechanical construction permit will be required from the City and Borough of Sitka for the HVAC
upgrade and heat pump installation. It is anticipated that the required permits can be obtained in a
timely manner prior to construction. No serious challenges to obtaining the required permits are
anticipated at this time.
4.3.4 Environmental
Address whether the following environmental and land use issues apply, and if so how they will be
addressed:
Threatened or endangered species
Habitat issues
Wetlands and other protected areas
Archaeological and historical resources
Land development constraints
Telecommunications interference
Aviation considerations
Visual, aesthetics impacts
Identify and discuss other potential barriers
There are no environmental or land use issues anticipated in regards to this project. The project
will not impact endangered species, affect wetlands or habitat, encroach on archeological or
historical buildings. No land development constraints will be encountered. The effluent heat pump
will not impact telecommunications, aviation, visual, or aesthetic concerns.
4.4 Proposed New System Costs and Projected Revenues
(Total Estimated Costs and Projected Revenues)
The level of cost information provided will vary according to the phase of funding requested and
any previous work the applicant may have done on the project. Applicants must reference the
source of their cost data. For example: Applicants records or analysis, industry standards,
consultant or manufacturer’s estimates.
4.4.1 Project Development Cost
Provide detailed project cost information based on your current knowledge and understanding of
the project. Cost information should include the following:
Total anticipated project cost, and cost for this phase
Requested grant funding
Applicant matching funds – loans, capital contributions, in-kind
Identification of other funding sources
Projected capital cost of proposed renewable energy system
Projected development cost of proposed renewable energy system
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Total anticipated project cost for design and construction is $849,984. A cash match of $113,000
will be provided by CBS to complete HVAC improvements necessary for integration of the
proposed heat pump project. The grant request amount is $849,984.
The anticipated incremental capital cost and development cost of the proposed effluent source
heat pump system relative to the base case is $849,984.
4.4.2 Project Operating and Maintenance Costs
Include anticipated O&M costs for new facilities constructed and how these would be funded by
the applicant.
(Note: Operational costs are not eligible for grant funds however grantees are required to meet
ongoing reporting requirements for the purpose of reporting impacts of projects on the
communities they serve.)
Anticipated O&M costs for the proposed effluent heat pump system are as follows:
Parts & maintenance = $ 10,400/year
Fuel oil for 954 MBH boiler = $ 3,368/year
Electricity for 868 MBH heat pump @ 19% capacity factor = $ 15,029/year
Total anticipated O&M costs = $28,797/year
O&M costs will be funded by CBS from heating oil avoided by using the heat pumps.
4.4.3 Heat Purchase/Sale
The heat purchase/sale information should include the following:
Identification of potential energy buyer(s)/customer(s)
Potential heat purchase/sales price - at a minimum indicate a price range
Proposed rate of return from grant-funded project
All heat will be used on site by the Wastewater Treatment Plant, no heat will be sold to others.
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered in
evaluating the project.
Please fill out the form provided below and provide most recent heating fuel invoice that supports
the amount identified in “Project Benefits” subpart b below.
Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability. One effluent heat pump will ensure a heat pump
output capacity of up to 868,000 BTU/hour thru the
entire heating season. The total annual output for
the effluent heat pump system will be 1,344 MMBtu
of heat.
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
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Existing Heating Energy Generation and Usage
a) Basic configuration
i. Number of generators/boilers/other Two oil boilers
ii. Rated capacity of generators/boilers/other 954,000 BTU/hour (total capacity of
1,908MBH)
iii. Generator/boilers/other type
iv. Age of generators/boilers/other At end of usable life--base case to replace in
kind
v. Efficiency of generators/boilers/other Estimated AFUE = 68%
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor $6,668
ii. Annual O&M cost for non-labor $1,199
c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the
Railbelt grid, leave this section blank)
i. Electricity [kWh]
ii. Fuel usage
Diesel [gal]
Other
iii. Peak Load
iv. Average Load
v. Minimum Load
vi. Efficiency
vii. Future trends
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] 15,030 gallons of #1 heating oil per year
ii. Electricity [kWh] 4028 kWh
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
Proposed System Design Capacity and Fuel Usage
(Include any projections for continued use of non-renewable fuels)
a) Proposed renewable capacity
(Wind, Hydro, Biomass, other)
[kW or MMBtu/hr]
Capacity of effluent heat pump = 868,000 BTU/hour
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh]
ii. Heat [MMBtu] 498 MMBtu/year = 474 MMBtu/year from effluent
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source heat pump, and 24 MMBtu/year from heating
oil boiler backup
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu]
ii. Coal [tons or MMBtu]
iii. Wood or pellets [cords, green tons,
dry tons]
iv. Other Electricity: 133,000 kwh/year
Fuel oil: 840 gallons/year for backup heat
Project Cost
a) Total capital cost of new system $849,984 + $113,000 for related improvements
b) Development cost $20,377 for feasibility study completed July 2012
under RE Fund Round 3
c) Annual O&M cost of new system $10,400 per year (parts & maintenance)
d) Annual fuel cost $15,029 per year for electricity for heat pumps
$3,368 per year back up heating oil
Project Benefits
a) Amount of fuel displaced for
i. Electricity
ii. Heat 14,190 gallons #1 heating oil will be displaced per year
iii. Transportation
b) Current price of displaced fuel $4.01/ gallon
c) Other economic benefits 155 tons of CO2 emissions avoided per year
d) Alaska public benefits Effluent source heat pump system demonstrated and
data collected from a public wastewater treatment
facility throughout the Alaska winter.
Heat Purchase/Sales Price
a) Price for heat purchase/sale N/A
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Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 1.24
Payback (years) 11.5 years
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4.4.5 Building Efficiency
Please address the following items related to the proposed location of the heating project. If
more than one building will be impacted, please address this information for each building.
Building name: Wastewater Treatment Plant
Type or primary usage of the building: Wastewater Treatment Plant
Location: Sitka
Hours of operation: 24/7
Single structure or multiple units: Single Structure
Total square footage: N/A
Electrical consumption per year: average of 460,000 KWH/year
Heating oil/fuel consumption per year: 15,030 gallons #1 heating oil/year (est.)
Average number of occupants: N/A
Has an energy audit been performed? When? Please provide a copy of the energy audit,
if applicable.
o A Level I (walk thru) energy audit was performed in 2009. It included multiple
buildings for CBS. The relevant parts of the audit are printed out and can be
found at Attachment 4. The entire energy audit is included with the electronic
submittal.
Have building thermal energy efficiency upgrades been completed? No
o If applicable, please provide evidence of efficiency improvements including cost
and anticipated savings associated with upgrades: N/A
o Estimated annual heating fuel savings: N/A
If the building is not yet constructed please provide evidence of the value of planned
building envelope efficiency investments beyond typical construction practices. Include
anticipated savings associated with efficiency investments if available.
SECTION 5– PROJECT BENEFIT
Explain the economic and public benefits of your project. Include direct cost savings, and
how the people of Alaska will benefit from the project.
The benefits information should include the following:
Potential annual fuel displacement (gallons and dollars) over the lifetime of the evaluated
renewable energy project. In order for the applicant to receive credit for heating fuel
displaced the applicant must provide the most recent invoice for heating fuel purchased.
Anticipated annual revenue (based on i.e. a Proposed Heat Purchase Agreement price,
RCA tariff, or cost based rate)
Potential additional annual incentives (i.e. tax credits)
Potential additional annual revenue streams (i.e. green tag sales or other renewable
energy subsidies or programs that might be available)
Discuss the non-economic public benefits to Alaskans over the lifetime of the project
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Potential Annual Fuel Displacement: 14,060 gallons of #1 heating oil/year usage will be
displaced over the lifetime of the project.
There are no anticipated revenue/incentives since the heat is not sold to others.
Non-economic benefits to Alaskans: Estimated CO2 reduction in Sitka area of 155 tons/year
from the proposed project.
Additional benefit is that this effluent heat pump project will demonstrate, in a community WWTP
facility, how effluent source heat pumps can carry building heat loads through the Alaska winter,
and what overall savings are possible from using them. The demonstration of this facility could
provide valuable information for similar facilities throughout the state.
SECTION 6– SUSTAINABILITY
Discuss your plan for operating the completed project so that it will be sustainable.
Include at a minimum:
Proposed business structure(s) and concepts that may be considered.
How you propose to finance the maintenance and operations for the life of the project
Identification of operational issues that could arise.
A description of operational costs including on-going support for any back-up or existing
systems that may be require to continue operation
Commitment to reporting the savings and benefits
The City and Borough of Sitka owns and operates multiple buildings and utilities in Sitka. The
project budget allocates daily, quarterly, and annual service on the heat pumps, cleaning the heat
exchanger cleaning the recycled effluent line and pump, as well as replacement of the heat pump
after eighteen years.
Operation and maintenance costs will be funded from avoided fuel costs from the proposed
effluent heat pump system.
Due to the corrosive air in the wastewater treatment plant, corrosion would be expected to be
greater than normal for the heat pump system equipment. To compensate for this, the heat pump
equipment would be physically separated from the rest of the plant in a room that maintains a
positive ventilation pressure to limit infiltration. Daily, monthly, and yearly maintenance are
included in the economic analysis and will be included within the project requirements. This will
help extend the unit life and ensure top performance.
The City and Borough of Sitka is committed to reporting ongoing performance and savings not
only for the purposes of this grant, but for application on other buildings that they own and
operate. Temperatures, loop flow rates, electrical energy usage, heat production (MBH, MMBTU),
and COP will be monitored for the new heat pump system.
SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS
Discuss what you have done to prepare for this award and how quickly you intend to proceed
with work once your grant is approved.
Tell us what you may have already accomplished on the project to date and identify other grants
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that may have been previously awarded for this project and the degree you have been able to
meet the requirements of previous grants.
To prepare for this award, CBS worked with Alaska Energy Engineering LLC to complete a
Renewable Energy Feasibility Analysis for Harrigan Centennial Hall in July 2012. The study
developed and compared alternatives to provide heat using renewable energy, provided a
conceptual-level design and recommended a project. The CBS project manager utilized the
report in assembling this grant application.
The design project for the overall Kettleson Library renovations project is under way. We will not
slow the design project down to wait for the AEA grant funding, but will pay for it with other
funding sources if the timing requires it. If awarded the design grant, we would continue with our
design work and fund it with the AEA grant when it is available.
CBS has met the requirements of two previous AEA Renewable Energy Fund grants – one for
the feasibility study mentioned above and one for a similar feasibility study at the wastewater
treatment plant. CBS certified that the AEA funds were spent in accordance with the grant terms
and conditions on July 6, 2012, for the Centennial Hall and Kettleson Library study and on July
23, 2013, for the wastewater treatment plant study.
SECTION 8 – LOCAL SUPPORT AND OPPOSITION
Discuss local support and opposition, known or anticipated, for the project. Include letters of
support or other documentation of local support from the community that would benefit from this
project. The Documentation of support must be dated within one year of the RFA date of July 2,
2013.
See attached resolution from the Sitka Assembly. Also attached are letters of support from the
Sitka Conservation Society, the Sitka Economic Development Association and the Sitka Tribe’s
Natural Resources Program. All documents of support can be found at Attachment 5.
Overall, the concept of using heat pumps has been embraced by the community. Many
individuals have realized cost savings at their own homes after installing heat pumps.
There is no known opposition to this project.
SECTION 9 – GRANT BUDGET
Tell us how much you are seeking in grant funds. Include any investments to date and funding
sources, how much is being requested in grant funds, and additional investments you will make
as an applicant.
Provide a narrative summary regarding funding sources and your financial commitment to the
project
Please provide a short narrative, and cost estimate, identifying the metering equipment, and its
related use to comply with the operations reporting requirement identified in Section 3.15 of the
Request for Applications.
Applications MUST include a separate worksheet for each project phase that was identified in
section 2.3.2 of this application, (I. Reconnaissance, II. Feasibility and Conceptual Design, III.
Final Design and Permitting, and IV. Construction and Commissioning). Please use the tables
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provided below to detail your proposed project’s budget. Be sure to use one table for each
phase of your project.
If you have any question regarding how to prepare these tables or if you need assistance preparing the
application please feel free to contact AEA at 907-771-3031 or by emailing the Grant Administrator,
Shawn Calfa, at scalfa@aidea.org.
PHASE III: Final Design and Permitting
Milestone or Task
Anticipated
Completion
Date
RE- Fund
Grant Funds
Grantee
Matching
Funds*
Source of
Matching
Funds:
Cash/In-
kind/Federal
Grants/Other
State
Grants/Other
TOTALS
Project scoping and contractor
solicitation for planning and
design
8/2014
$ 15,299.71 $ 2,034.00
cash
$ 17,333.71
Permit applications (as
needed) 11/2014 $ 7,649.86 $ 1,017.00 cash $ 8,666.86
Final environmental
assessment and mitigation
plans (as needed)
NA
$ - $ -
NA
$ -
Resolution of land use, right-
of-way issues NA $ - $ -
NA $ -
Permit approvals NA $ 22,949.57 $ 3,051.00 cash $ 26,000.57
Final system design 12/2014 $ 68,848.70 $ 9,153.00 cash $ 78,001.70
Engineer’s cost estimate 12/2014 $ 22,949.57 $ 3,051.00 cash $ 26,000.57
Updated economic and
financial analysis NA $ 7,649.86 $ 1,017.00 cash $ 8,666.86
Negotiated power sales
agreements with approval
rates
NA
$ - $ -
NA
$ -
Final business and operational
plan 12/2014 $ 7,649.86 $ 1,017.00 cash $ 8,666.86
TOTALS $ 152,997.12 $20,340.00 $ 173,337.12
Budget Categories:
Direct Labor & Benefits $ 27,539.48 $ 3,661.20 cash $ 31,200.68
Travel & Per Diem $ 1,529.97 $ 203.40 cash $ 1,733.37
Equipment $ 1,070.98 $ 142.38 cash $ 1,213.36
Materials & Supplies $ 458.99 $ 61.02 cash $ 520.01
Contractual Services $ 107,097.98 $14,238.00 cash $ 121,335.98
Construction Services $ - $ - NA $ -
Other $ 15,299.71 $ 2,034.00 cash $ 17,333.71
TOTALS $ 152,997.12 $20,340.00 $ 173,337.12
* Includes $113,000 for design and construction of HVAC improvements required to allow new
heat pump infrastructure to work properly. See Attachment 3.
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PHASE IV: Construction and Commissioning
Milestone or Task
Anticipated
Completion
Date
RE- Fund
Grant Funds
Grantee
Matching
Funds*
Source of
Matching
Funds:
Cash/In-
kind/Federal
Grants/Other
State
Grants/Other
TOTALS
Confirmation that all design
and feasibility requirements
are complete
12/2014
$ - $ -
$ -
Completion of bid documents 1/2015 $ 34,849.34 $ 4,633.00 cash $ 39,482.34
Contractor/vendor selection
and award 2/2015 $ 34,849.34 $ 4,633.00 cash $ 39,482.34
Material procurement 3/2015 $ 188,186.46 $25,018.20 cash $ 213,204.66
Rough-in construction 4/2015 $ 146,367.24 $19,458.60 cash $ 165,825.84
Finish construction 6/2015 $ 174,246.72 $23,165.00 cash $ 197,411.72
Integration and testing 6/2015 $ 55,758.95 $ 7,412.80 cash $ 63,171.75
Decommissioning old systems 6/2015 $ 34,849.34 $ 4,633.00 cash $ 39,482.34
Final acceptance,
commissioning and start-up 7/2015 $ 13,939.74 $ 1,853.20 cash $ 15,792.94
Operations Reporting 7/2025 $ 13,939.74 $ 1,853.20 cash $ 15,792.94
TOTALS $ 696,986.88 $92,660.00 $ 789,646.88
Budget Categories:
Direct Labor & Benefits $ 125,457.64 $16,678.80 cash $ 142,136.44
Travel & Per Diem $ 6,969.87 $ 926.60 cash $ 7,896.47
Equipment $ 4,878.91 $ 648.62 cash $ 5,527.53
Materials & Supplies $ 2,090.96 $ 277.98 cash $ 2,368.94
Contractual Services $ 487,890.82 $64,862.00 cash $ 552,752.82
Construction Services $ - $ - NA $ -
Other $ 69,698.69 $ 9,266.00 cash $ 78,964.69
TOTALS $ 696,986.88 $92,660.00 $ 789,646.88
* Includes $113,000 for design and construction of HVAC improvements required to allow new
heat pump infrastructure to work properly. See Attachment 3.
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SECTION 10 – AUTHORIZED SIGNERS FORM
Community/Grantee Name: City and Borough of Sitka
Regular Election is held: first Tuesday in October
(two of seven Assembly members up for re-
election)
Date: October 1, 2013
Authorized Grant Signer(s):
Printed Name Title Term Signature
Jay Sweeney Interim Municipal
Administrator
NA
I authorize the above person(s) to sign Grant Documents:
(Highest ranking organization/community/municipal official)
Printed Name Title Term Signature
Mim McConnell Mayor 10/2014 see Resolution 2013-15
in Attachment 5
Grantee Contact Information:
Mailing Address: City and Borough of Sitka
100 Lincoln Street
Sitka AK 99835
Phone Number: (907) 747-1883
Fax Number: (907) 747-3158
E-mail Address: davidl@cityofsitka.com
Federal Tax ID #: 92-0041163
Please submit an updated form whenever there is a change to the above information.
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SECTION 11 – ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION:
A. Contact information, resumes of Applicant’s Project Manager, key staff, partners,
consultants, and suppliers per application form Section 3.1 and 3.4. Applicants
are asked to provide resumes submitted with applications in separate electronic
documents if the individuals do not want their resumes posted to the project web
site.
B. Letters or resolutions demonstrating local support per application form Section 8.
C. For heat projects only: Most recent invoice demonstrating the cost of heating fuel
for the building(s) impacted by the project.
D. Governing Body Resolution or other formal action taken by the applicant’s
governing body or management per RFA Section 1.4 that:
- Commits the organization to provide the matching resources for project at the
match amounts indicated in the application.
- Authorizes the individual who signs the application has the authority to
commit the organization to the obligations under the grant.
- Provides as point of contact to represent the applicant for purposes of this
application.
- Certifies the applicant is in compliance with applicable federal, state, and local,
laws including existing credit and federal tax obligations.
E. One paper copy and one electronic version of the entire application on CD or other
electronic media, per RFA Section 1.7.
F. CERTIFICATION
The undersigned certifies that this application for a renewable energy grant is truthful
and correct, and that the applicant is in compliance with, and will continue to comply
with, all federal and state laws including existing credit and federal tax obligations and
that they can indeed commit the entity to these obligations.
Print Name
Signature
Title
Date