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Home My WebLink AboutKodiak GSHP GrantApplication complete Renewable Energy Fund Round 5 Grant Application AEA 12-001 Application Page 1 of 16 7/1/2011 Application Forms and Instructions The following forms and instructions are provided to assist you in preparing your application for a Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA) and the forms are available online at: Error! Hyperlink reference not valid. Grant Application Form GrantApp5.doc Application form in MS Word that includes an outline of information required to submit a complete application. Applicants should use the form to assure all information is provided and attach additional information as required. Application Cost Worksheet Costworksheet 5.doc Summary of Cost information that should be addressed by applicants in preparing their application. Grant Budget Form GrantBudget5. doc A detailed grant budget that includes a breakdown of costs by milestone and a summary of funds available and requested to complete the work for which funds are being requested. Grant Budget Form Instructions GrantBudgetIn structions5.doc Instructions for completing the above grant budget form. Authorized Signers Form Authorized signers form5.doc Form indicating who is authorized to sign the grant, finance reports and progress reports and provides grantee information.  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 completion of each phase.  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.  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. 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 Grant Application Round 5 AEA12-001 Grant Application Page 2 of 16 7/1//2011 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Kodiak Island Borough Type of Entity: local government Fiscal Year End: June 30 Tax ID # 92-0030845 Tax Status: For-profit or X non-profit ( check one) Mailing Address 710 Mill Bay Road Kodiak, AK 99615 Physical Address 710 Mill Bay Road Kodiak, AK 99615 Telephone 907-486-9302 Fax 907-486-9374 Email rgifford@kodiakak.us 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Kenneth W. Smith, P.E. Title Project Manager Mailing Address 710 Mill Bay Road, Kodiak, AK 99615 Telephone (907) 486-9341 Fax (907) 486-9347 Email ksmith@kodiakak.us 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 its project by its 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. Yes or No 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached grant form. (Any exceptions should be clearly noted and submitted with the application.) 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. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 3 of 16 7/1//2011 SECTION 2 – PROJECT SUMMARY This is intended to be no more than a 1-2 page overview of your project. 2.1 Project Title – (Provide a 4 to 5 word title for your project) Kodiak High School Ground Source 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. Location – latitude and longitude or street address or community / communities served: Kodiak High School, 722 Mill Bay Road, Kodiak, Alaska, 99615 The project site is Kodiak High School in the City of Kodiak; in addition to the greater Kodiak City area residents, the High School serves the Kodiak Island region. 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind Biomass or Biofuels Hydro, including run of river Transmission of Renewable Energy X Geothermal, including Heat Pumps Small Natural Gas Heat Recovery from existing sources Hydrokinetic Solar Storage of Renewable Other (Describe) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Reconnaissance X Design and Permitting Feasibility X Construction and Commissioning Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. The project would provide design and construction of a ground source heat pump system consisting of a water-to-water heat pump and loopfield as the primary source of heat for the new Kodiak High School. It is estimated that the heat pump will supply 85% of the heating load and the fuel oil boilers will supplement the remaining load. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 4 of 16 7/1//2011 2.5 PROJECT BENEFIT Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel costs, lower energy costs, etc.) The GSHP system achieves lower estimated annual energy cost heat than a fuel oil boiler heating system. While the GSHP system requires greater electrical demand and lower fuel demand. Kodiak Electric Association is providing approximately 90% renewable energy (hydro and wind). Annual energy cost estimated for the heat pump system is considerably less as electricity inflation is currently projected at 3% and fuel oil inflation at 6%. Assuming the GSHP supplies heat to the 4 story tower only yields the following results with an expected annual energy savings for 2013 of $116,000: Adding the pool, auditorium and remainder of the facility to the system to increase the utilization to 75% of the resource results in a expected annual savings of $328,489: IIn simple payback terms, this shows a 20 year payback. In life cycle cost terms, the system recoups the initial investment plus nearly the same amount again. nsert table from 8/25 email In simple payback terms, this shows a 20 year payback. In life cycle cost terms, the system recoups the initial investment plus nearly the same amount again Energy Costs Annual Energy Life Cycle Consumption 2013 Cost Energy Cost Baseline Fuel Oil Boiler System Fuel Oil 85,000 gals $ 344,000 $ 9,800,000 Electricity 25,000 kWh 4,000 84,000 Total $ 348,000 $ 9,884,000 Ground Source Heat Pump System Fuel Oil 13,000 gals $ 52,000 $ 1,500,000 Electricity 1,100,000 kWh 180,000 3,500,000 Total $ 232,000 $ 5,000,000 Annual Cost - 2013 25-year Life Cycle Cost Heating System Maintenance Energy Total Construction Annual Energy Total Baseline $3,160 $348,579 $351,739 $444,000 $54,000 $9,843,000 $10,341,000 Ground Source Heat Pump $5,560 $17,690 $23,250 $6,903,000 $94,670 ($2,365,000) $4,632,670 Difference $2,400 ($330,889)($328,489)$6,459,000 $40,670 ($12,208,000) ($5,708,330) Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 5 of 16 7/1//2011 2.6 PROJECT BUDGET OVERVIEW Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of other contributions to the project. The overall budget for the New Kodiak High School is approx $80 million with $60 million in construction costs. The project is bond funded through the Alaska Dept of Education and Early Development with a local match of approx 40%. The GSHP system adds approx $6.5 million to the overall construction costs over the baseline fuel oil heating system but yields substantial annual fuel savings. Additional construction funds are needed for the project to take advantage of the reduced annual fuel savings and to avoid sacrificing the educational program. 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. $ 3,900,000 2.7.2 Other Funds to be provided (Project match) $ 2,600,000 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $ 6,500,000 Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.4 Total Project Cost (Summary from Cost Worksheet including estimates through construction) $6,903,000 2.7.5 Estimated Direct Financial Benefit (Savings) $328,489 annually 2.7.6 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 your application (Section 5.) $ Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 6 of 16 7/1//2011 Construction Costs Year Qty Unit Base Cost Year 0 Cost Site Work Demo paving, subbase material 0 75,000 sqft $2.00 $150,000 Delete pavement topping 0 -75,000 sqft $2.00 ($150,000) Backfill pipe trenches, paving subbase 0 75,000 sqft $8.00 $600,000 New paving, with curb and gutter 0 75,000 sqft $5.00 $375,000 Pipe trench to building Loopfield 0 15 lnft $75.00 $1,125 Drill boreholes, backfill, horizontal piping, pipe bedding 0 62,500 lnft $33.00 $2,062,500 Thermal conductivity test 0 1 LS $25,000.00 $25,000 Loopfield manifold in building near loopfield 0 1 LS $20,000.00 $20,000 Piping mains to Mechanical Room, HS and HR Heating Plant Fuel Oil Boiler Plant 0 300 lnft $220.00 $66,000 Fuel oil boilers, 4,200 MBH 0 2 ea $55,000.00 $110,000 Primary pumps, 420 GPM, 3 HP 0 2 ea $6,500.00 $13,000 Piping mains to KIBSD offices 0 280 lnft $35.00 $9,800 Piping mains to Auditorium Ground Source Heat Pump Plant 0 1,000 lnft $55.00 $55,000 Ground source heat pump, 3,000 MBH 0 1 LS $180,000.00 $180,000 Increase electrical service by 350 KVA 0 1 LS $80,000.00 $80,000 Evaporator piping and appurtenances 0 1 LS $20,000.00 $20,000 Evaporator pumps 630 GPM, 40 HP 0 2 LS $7,500.00 $15,000 Condenser piping and appurtenances 0 1 LS $28,000.00 $28,000 Heating storage tank 0 1 LS $15,000.00 $15,000 Condenser pumps, 350 GPM, 10 HP 0 2 LS $65,000.00 $130,000 Boiler to heat pump heat exchanger 0 1 LS $25,000.00 $25,000 Piping, pump, and controls Distribution 0 1 LS $30,000.00 $30,000 Increase size of AHU coils 0 10 ea $2,500.00 $25,000 Increase perimeter baseboard to double height Controls 0 3,500 lnft $25.00 $87,500 DDC Controls Electrical 0 26 pts $1,800.00 $46,800 Single phase connection 0 2 ea $2,500.00 $5,000 Three phase connection 0 7 ea $5,500.00 $38,500 Contingencies 0 Estimating contingency 0 10% $406,322.50 Overhead & profit 0 30% $1,340,864.25 Design fees 0 10% $581,041.18 Project management 0 8% $511,316.23 Total Construction Costs $6,903,000 Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 7 of 16 7/1//2011 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). 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. Type in your answer here and follow same format for rest of the application. The project manager for this project will be Kodiak Island Borough Project Manager/Inspector Ken Smith, P.E. 3.2 Project Schedule Include a schedule for the proposed work that will be funded by this grant. (You may include a chart or table attachment with a summary of dates below.) KODIAK HIGH SCHOOL ADDITION & RENOVATION PRELIMINARY DESIGN & CONSTRUCTION SCHEDULE START FINISH FINISH SCHEMATIC DESIGN 5/6/11 8/31/11 DESIGN DEVELOPMENT 9/1/11 12/31/11 SELECT GC/CM 8/1/11 9/30/11 LIFE CYCLE COST ANALYSIS 8/1/11 8/6/11 SEPARATE CONTRACT EARLY START NEW PARKING LOT 10/1/11 12/31/11 NEGOTIATE GUARANTEED MAXIMUM PRICE 1/1/12 1/31/12 CONSTRUCTION DOCUMENTS 1/1/12 5/31/12 MAIN PARKING LOT PHASE I IMPROVEMENTS 6/1/12 9/5/12 PHASE 1 (4 STORY TOWER & NEW MECH RM) CONSTRUCTION PROCUREMENT AND STAGING 2/1/12 5/31/12 TOWER CONSTRUCTION 6/1/12 11/30/13 TOWER MOVE-IN 12/1/13 1/31/14 PHASE IIA (INFILL BTWN TOWER & GYM & NEW HEAT PLANT) 5/20/13 11/30/13 PHASE IIB (REMODEL ENTRY, COMMONS, WRESTLING & OLD CLASSRMS) 1/1/14 8/31/14 PHASE IIC (VOCED REMODEL) 5/1/14 8/31/14 DEMO LEARNING CENTER BUILDING 2/1/14 2/28/14 COMPLETE SITEWORK 4/1/14 8/31/14 Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 8 of 16 7/1//2011 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. The Milestones must also be included on your budget worksheet to demonstrate how you propose to manage the project cash flow. (See Section 2 of the RFA or the Budget Form.) The key decision to a) proceed with the GSHP system in its entirety, b) to make accommodations to incorporate a GSHP system in the future or c) to abandon the system entirely must be made before the completion of the design development phase 12/31/11 in order to incorporate it into the design of the overall project. The sooner this decision can be made the less impact it will have on project cost and schedule. 3.4 Project Resources Describe the personnel, contractors, equipment, and services you will use to accomplish the project. Include any partnerships or commitments with other entities you have or anticipate will be needed to complete your project. Describe any existing contracts and the selection process you may use for major equipment purchases or contracts. Include brief resumes and references for known, key personnel, contractors, and suppliers as an attachment to your application. The project Architect, Jensen Yorba Lott, and the mechanical and electrical consultants on the High School project have collectively been involved in several GSHP projects. Jim Rehfeldt of Alaska Energy Engineering, LLC has personally provided feasibility studies for numerous GSHP projects. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. The high school project has a website http://www.kodiakhsbuildingproject.com that is updated regularly as the design progresses to keep the public and other interested parties informed of progress on the project. The design team, KIB and KIBSD holds weekly meetings to keep all team members and stakeholders informed. Drawings and other project information is posted on a sharepoint site maintained by KIB and access is provided to all stakeholders. KIB provides accounting and reporting for all grant funded projects as required. 3.6 Project Risk Discuss potential problems and how you would address them. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 9 of 16 7/1//2011 SECTION 4 – PROJECT DESCRIPTION AND TASKS  Tell us what the project is and how you will meet the requirements outlined in Section 2 of the RFA.  The level of information will vary according to phase(s) of the project you propose to undertake with grant funds.  If you are applying for grant funding for more than one phase of a project provide a plan and grant budget form for completion of each phase.  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. The GSHP system is limited by the confines of the site and the area available for the loopfield. The proposed loopfield considered for development at this time occupies only a small portion of the space that could ultimately be developed. The cost of the loopfield represents nearly 80% of the total cost of the GSHP system. Additional uses of the resource will be investigated to increase the fuel savings and lower the energy cost per BTU. Other renewable resources including wind and solar were investigated in the preliminary study but found to be less attractive than the GSHP system. 4.2 Existing Energy System 4.2.1 Basic configuration of Existing 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 current heating system for the existing high school consists of fuel oil fired boilers and a combination of hydronic and forced air heating. The aging system dates back to 1967 when the facility was originally constructed. 4.2.2 Existing 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 system utilizes #1 and #2 fuel oil, all of which must be barged onto the island. As oil prices increase the GSHP system becomes more favorable financially. Although the GSHP system utilizes more electricity than a conventional fuel fired system, a steady supply of electricity is currently available through KEA, the locally owned electric utility. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Electricity is generated on island using renewable resources for approximately 90% of the current demand. The percentage generated from renewable resources and the generation Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 10 of 16 7/1//2011 capacity will continue to rise as KEA installs a new turbine at its hydroelectric facility at Terror Lake and additional wind turbines at its site on Pillar Mountain. Electric rates are currently stable and predicted to escalate at a rate of 3% per annum while fuel oil cost are unstable and predicted to increase at 6% per annum. 4.3 Proposed System Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, 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 Ground Source Heat Pump System The heating system will consist of a fuel oil boiler plant and a ground source heat pump plant. The GSHP system will consist of a 3,000 MBH water-to-water heat pump that serves the proposed facilities. It is estimated that the heat pump will supply 85% of the heating load and the fuel oil boilers will supplement the remaining load. Two 4,200 MBH fuel oil boilers will serve to augment the pool, auditorium, maintenance wing of the middle school, and the proposed school district offices when the GSHP system is not capable of supplying the full demand. These areas have heating distribution systems designed for 180°F boiler water and are not capable of supplying sufficient heat using 120°F GSHP water during cold weather when the demand is high. The heat pump will be coupled to a loopfield located under the Kodiak Middle School playground and auxilliary parking lot. Preliminary sizing of the closed, vertical loopfield is: 198 boreholes, 6” diameter, 316 feet deep, spaced at 20’ centers. A pipe loop is installed in each bore and backfilled with thermally conductive grout. The boreholes are connected to horizontal piping installed under the parking lot and through the building to the mechanical room. An antifreeze solution flows through the vertical pipe loops, extracting heat from the ground and transferring it to the heat pump. The heat pump utilizes a compressor/condenser cycle to lift the low temperature ground heat to 120°F heating water for the building. The heat will be distributed throughout the building by double high perimeter baseboard heaters and heating coils in the ventilation systems. 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 and access issues. The Kodiak Island Borough is the owner of the land and the facility; there are no potential ownership issues. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 11 of 16 7/1//2011 Jim Rehfeldt, P.E., of Alaska Energy Engineering, LLC prepared the preliminary feasibility study and provided the cost estimates and analysis for the GSHP system. 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 additional permits other than normal building permits are required. The building officials have been provided with preliminary plans for the facility and we will continue to work with them through the design and construction process. 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 None of the above applies to the GSHP system. 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 Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 12 of 16 7/1//2011 In simple payback terms, this shows a 20 year payback. In life cycle cost terms, the system recoups the initial investment plus nearly the same amount again. Annual Cost - 2013 25-year Life Cycle Cost Heating System Maintenance Energy Total Construction Annual Energy Total Baseline $3,160 $348,579 $351,739 $444,000 $54,000 $9,843,000 $10,341,000 Ground Source Heat Pump $5,560 $17,690 $23,250 $6,903,000 $94,670 ($2,365,000) $4,632,670 Difference $2,400 ($330,889)($328,489)$6,459,000 $40,670 ($12,208,000) ($5,708,330) Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 13 of 16 7/1//2011 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.) 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following:  Identification of potential power buyer(s)/customer(s)  Potential power purchase/sales price - at a minimum indicate a price range  Proposed rate of return from grant-funded project None 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Download the form, complete it, and submit it as an attachment. Document any conditions or sources your numbers are based on here. Attached Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 14 of 16 7/1//2011 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 that may have been previously awarded for this project and the degree you have been able to meet the requirements of previous grants. Work completed on the project to date includes completion of a preliminary feasibility study performed by Alaska Energy Engineering, LLC. A test well on the site has been drilled and testing is currently underway to evaluate and refine the loopfield parameters. Final results of this testing is expected in late September. The feasibility study will be further refined and the potential for adding additional loads evaluated. Cost estimates and project benefits will be further refined as this information can be incorporated and a decision is made to move forward with the project pending additional funding. 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 (gal and $) over the lifetime of the evaluated renewable energy project  Anticipated annual revenue (based on i.e. a Proposed Power 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 The GSHP system displaces 81,500 gals of fuel annually ($330,889 @ $4.06 per gal) The non-economic benefit is that the GSHP system lowers dependency on petro fuels and also reduces carbon emissions. 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 Kodiak Island Borough School District, funded by taxpayers, is responsible for operations and maintenance over the life of the system. Renewable Energy Fund Grant Application Round 5 AEA12-001 Grant Application Page 15 of 16 7/1//2011 SECTION 8– LOCAL SUPORT Discuss what local support or possible opposition there may be regarding your project. Include letters of support from the community that would benefit from this project. Support for use of alternative energy was voiced loudly by the citizen’s advisory committee, teachers and students during the predesign meetings held by the Architect. No opposition to the use of alternative energy was heard. SECTION 9 – GRANT BUDGET Tell us how much you want 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. Include an estimate of budget costs by milestones using the form – GrantBudget5.doc Provide a narrative summary regarding funding sources and your financial commitment to the project. KIB was authorized by the voters to sell GO bonds in the amount of $76.3M for the KHS Renovation and Addition Project. The Schematic design cost estimate does not provide adequate capital construction funding to develop a GSHP system without sacrificing approved educational program. However, estimates indicate considerable reductions in annual energy costs for the life of the project. Renewable Energy Fund Round 5 Project Cost/Benefit Worksheet RFA AEA12-001 Application Cost Worksheet Page 1 7-1-11 Please note that some fields might not be applicable for all technologies or all project phases. The level of information detail varies according to phase requirements. 1. Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) 2. Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank) i. Number of generators/boilers/other 2 ii. Rated capacity of generators/boilers/other 6,200 MBH iii. Generator/boilers/other type iv. Age of generators/boilers/other New v. Efficiency of generators/boilers/other 75% b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor $960 ii. Annual O&M cost for non-labor 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] 84,900 ii. Electricity [kWh] 3,200 iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other 1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. Renewable Energy Fund Round 5 Project Cost/Benefit Worksheet RFA AEA12-001 Application Cost Worksheet Page 2 7-1-11 3. 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] 3,000 MBH b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] ii. Heat [MMBtu] c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] ii. Coal [tons or MMBtu] iii. Wood [cords, green tons, dry tons] iv. Other (Electricity) 1.922,000 kWh; 4. Project Cost a) Total capital cost of new system $5,300,000 b) Development cost $1,200,000 c) Annual O&M cost of new system $3,400 d) Annual fuel cost $330,000 5. Project Benefits a) Amount of fuel displaced for i. Electricity ii. Heat 77,000 gallons fuel oil iii. Transportation b) Current price of displaced fuel $4.06 per gallon c) Other economic benefits d) Alaska public benefits 6. Power Purchase/Sales Price a) Price for power purchase/sale 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio $12,200,000 / $6,500,000 = 1.9 Payback (years) 20.7 years