HomeMy WebLinkAboutSleetmute_AEA_Final_2011_Application_Heat_ReSleetmute Traditional Council
Image from Alaska Division of Community & Regional Affairs, AK Community Database Infmmalion Summaries
Application for Renewable Energy Fund Grant
Alaska Energy Authority
Round V
Sleetmute Heat Recovery Construction
August 2011
Contents
Application
Authorized Signers & Resolution
Budget
Letters of Support
Resumes
Renewable Energy Fund Round 5
ALASKA Sleetmute Traditional Council
GONE) ENERGY AUTHORnY
Grant Application
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ENERGY AUTHORITY Grant Application Round 5
Sleetmute Heat Recovery — Power Plant to Water Plant
The physical locations of this project are the Middle Kuskokwim Electric power plant and
the Sleetmute water treatment plant in Sleetmute, Alaska.
Wind Biomass or Biofuels
Hydro, including run of river X Transmission of Renewable Energy
Geothermal, including Heat Pumps Small Natural Gas
X Heat Recovery from existing sources Hydrokinetic
Solar X Storage of Renewable
Other (Describe)
Reconnaissance I Design and Permitting
Feasibility X I Construction and Commissioning
Conceptual Design
Currently, Middle Kuskokwim Electric is not utilizing the jacket heat from its diesel engines.
This project will recover heat from the engines at the Middle Kuskoquim Electric plant and
send it to the water treatment plant to heat the building, the circulated water loops, and the
water storage tank. The Middle Kuskoquim Electric power plant and the Sleetmute water
treatment plant are located in Sleetmute.
A feasibility study has been done for this project as part of an energy audit of the water
treatment plant, and the design will be completed soon with other funds. Funds are being
requested for construction only.
Water and wastewater systems in the arctic and subarctic villages are the single largest
energy consumer, often using up to 30% of all energy, i.e. electricity and fuel oil used in a
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village. A significant portion of this in Sleetmute is for heating water in both the water
storage tank and the circulation loops that deliver the water to the end users, such as
commercial establishments and homes. Utilizing the recovered jacket heat from the engines
in the power plant would allow the displacement of approximately 1,779 gallons of fuel oil
used in the water treatment plant.
The water treatment plant is operated by the Alaska Rural Utility Collaborative (ARUC).
According to their records, the water treatment plant used 2,250 gallons of fuel in 2010. As
stated in the energy audit, 1,779 gallons of this fuel could be replaced by the power plant
recovered heat. At the current cost of $6.00 per gallon, that would be a savings of $10,674
per year, and fuel costs are anticipated to increase.
If Middle Kuskoquim Electric agrees to provide the recovered heat for a cost of one third of
its cost for fuel as AVEC does, this would result in a cost to the water treatment plant of
approximately $1.14 per equivalent gallon, or $2,028. The net savings to the water plant
would then be $8,646 ($10,674 - $2,028).
The benefits to the community of this project are a reduction in the amount of fuel required
by the community, a much more efficient use of the recovered engine heat, and a direct
benefit to each community member due to the lower cost to produce, store, and distribute
water.
As mentioned earlier, the feasibility phase of this project is complete and the design phase is
underway now with another funding source. The estimated cost of the construction phase of
this project is $133,350. The construction cost includes a cost match of $6,667 provided by
the Alaska Native Tribal Health Consortium (ANTHC) in the form of contributed project
management time.
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ALASKA Renewable Energy Fund
E) ENERGY AUTHORnY Grant Application Round 5
The project manager for this project would be Carl Remley. Mr. Remley is Energy Projects
Manager for ANTHC and has been an ANTHC employee since 2002. Mr. Remley is
responsible for both energy conservation and renewable energy projects. At present, this
includes performing energy audits in public buildings in 40 rural Alaska villages, installing
energy conservation displays in all homes in 12 villages, evaluating heat recovery
opportunities in 10 villages, implementing heat recovery in several villages, and acting as the
energy coordinator for the Indian Health Service in the state of Alaska.
Prior to that, Mr. Remley owned and operated an energy conservation consulting company
for twenty two years and was a design engineer in the aerospace industry for ten years. Mr.
Remley has a Bachelor's Degree in Mechanical Engineering and a Master's Degree in
Business Administration. He is also both a Certified Energy Auditor and a Certified Energy
Manager.
Mr. Remley can be contacted at 907-729-3543 or cremley(a)anthc.org. Mr. Remley's resume
is attached, along with skill summaries for key project personnel.
Project construction will start as soon as funding is available, which is projected to be early
September 2012. Based on times for very similar projects recently completed, it is
anticipated that the construction will be complete, including commissioning, by the end of
September 2013. A detailed schedule is attached to this application.
A feasibility study done as part of a detailed energy audit has been completed and is attached
to this application. The analysis has clearly shown that the project is both feasible and cost
effective. Design for this project is underway now and will be complete within the next few
months. Funding for the design is being provided by others. These two major milestones
either are complete or will be soon.
The energy source to be used for this project is the water jacket heat from the engines. This
source is available as heat now in the Middle Kuskoquim Electric power plant. Having the
renewable energy available to use is also a major milestone available now.
Once funding is available, there will be four major milestones: procurement of materials
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shipping of materials, installation, and commissioning. Procurement will start as soon as
funding is available, which is anticipated in September 2012. On -site mobilization will start
in Spring 2013. Construction will start in June 2013 and be completed in August. Final
commissioning, startup, and acceptance will be completed in August 2013. Project reporting
will take place throughout the project.
ANTHC has implemented heat recovery in several locations and is the process of
implementing it in several more now. Based on its knowledge of the water treatment plant
and power plant, no problems are anticipated. Since the two facilities are quite a distance
apart, the recovered heat will be transported to the power plant in the circulated water line.
This approach has been used successfully in several villages in the past.
The Sleetmute Traditional Council has chosen to partner with the Alaska Native Tribal
Health Consortium (ANTHC) on this project. As discussed above, the project manager will
be Carl Remley of ANTHC. He will be supported during the design phase by Will Fraser,
ANTHC Lead Mechanical Engineer, and Dave Reed, ANTHC Lead Electrical Engineer. This
project will be closely coordinated with Middle Kuskoquim Electric. To the extent possible,
local labor from Sleetmute will be used during construction. This will be relatively easy to
implement since Sleetmute is an ARUC village. Resumes of all key personnel are attached to
this application.
Written project progress reports will be provided to the AEA project manager each quarter.
Semi-annual face-to-face meetings will be conducted with ANTHC, Middle Kuskoquim
Electric, the Sleetmute Traditional Council, and AEA to discuss the status of all projects
funded through the AEA Renewable Energy Grants program. Individual project meetings
will be held as required or requested by AEA. The Sleetmute Traditional Council will
participate via teleconference.
In general, there are no technological or financial risks involved with the plan to utilize
recovered heat from the Middle Kuskoquim Electric power plant to provide heat for the
Sleetmute water treatment plant, water storage tank, and circulation loop. The engine water
jacket heat is available now in the power plant. Installing the necessary heat exchangers,
piping, pumps, and controls necessary for implementation has been done many times before
and proven effective for many years.
Both the ARUC employees that operate the water treatment plant and the Middle Kuskoquim
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Renewable Energy Fund
Grant Application Round 5
Electric employees that operate the power plant are fully capable of operating and
maintaining this heat recovery system.
The energy source that is available is recovered water jacket heat from the Middle Kuskoquim
Electric power plant in Sleetmute.
The only realistic alternative to utilizing the recovered heat is to continue to burn 1,779
gallons of fuel oil to provide the heat required by the water treatment plant. The cost of fuel is
almost five times the cost of the recovered heat.
The electricity is generated by diesel engines. All equipment is in fair condition. At present,
all of this energy is being exhausted to the atmosphere in the form of heat.
Oil must be barged to Sleetmute during the summer months when that area of the river is ice
free. Oil is the source of the overwhelming majority of all energy consumed in Sleetmute.
This makes Sleetmute an ideal location for this project, which uses the jacket heat from the
diesel engines.
As mentioned above, all oil must be barged in during the summer months. The impact of this
project will be to reduce the overall use of oil in the village of Sleetmute by approximately
1,779 gallons per year. This reduction in consumption will not have any effect on the price of
oil in Sleetmute. It will, however, reduce the consumption of oil in rural Alaska by the stated
amount, replacing that consumption with jacket heat from the diesel engines from the Middle
Kuskoquim Electric power plant.
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ALASKA Renewable Energy Fund
i ENERGY AUTHORnY Grant Application Round 5
The renewable energy utilized for this project is jacket heat recovery from the diesel engines
in the Middle Kuskoquim Electric power plant. The cooling system in the Middle Kuskoquim
Electric power plant is presently used to dump this heat to the atmosphere. With the proposed
system, this heat will be recovered and sent to the Sleetmute water treatment plant for water
storage tank heating and circulation loop heating.
Since the circulation water loop will be used to transport the recovered heat back to the water
treatment plant, the heat available will be the optimum installed capacity.
The anticipated capacity factor is over 100%. No electrical energy generation will take place
as part of this project. This project will utilize the waste heat from the generators to reduce the
amount of oil imported to the village.
The only barrier to this project is the availability of funding. There are no technical barriers
and no permitting barriers. The design for this project is being funded through another source.
The integration concept is a classic heat recovery project. The cooling loop exists in the
Middle Kuskoquim Electric plant and the recovered heat will be delivered to the water
treatment plant through a series of heat exchangers and the existing circulation loop between
the buildings.
There are no land ownership issues; no new lines will be run between the buildings.
No permits have been required for recent heat recovery projects; however, the State Fire
Marshall will be given an opportunity to review the design before implementation.
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ENERGY AUTHORITY Grant Application Round 5
ANTHC will consider all potential environmental concerns associated with this project.
ANTHC has extensive experience using the comprehensive Indian Health Service (IHS)
environmental review procedures for conducting environmental analysis of all health and
sanitation facilities projects in all stages of development, as outlined in the IHS
Environmental Review Manual issued in January 2007.
ANTHC will study, analyze, and evaluate environmental impacts and benefits. Environmental
agency and Tribal consultations and the analysis of potential environmental impacts and
benefits will be compiled and documented in the environmental reviews and permit
applications as the project progresses into design and towards construction. All federal and
state approvals and applicable permits must be obtained prior to the initiation of construction
activities.
The total anticipated project cost is $133,350. A detailed construction cost estimate is
attached. The feasibility study done as part of the energy audit of the water treatment plant is
complete and a copy is attached. The design is in process now and is being completed with
other funds.
The requested grant funding is $126,682. The remaining $6,667 is being donated by ANTHC
in the form of project management time.
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rALASKA Renewable Energy Fund
ENERGY AUTHORITY Grant Application Round 5
As with all heat recovery systems, the operating cost will be minimal. The controls are
automated both at the power plant and at the water treatment plant. The most expensive
components in the heat recovery system are the heat exchangers, and they normally have a
20-year life. Minor maintenance costs will occur periodically but they will be limited to
valves, pumps and possibly some replacement glycol. Approximately $300 per year should be
set aside per year for maintenance.
ANTHC and the Sleetmute Traditional Council will work together to make sure all Alaska
Energy Authority reporting requirements are met.
A standard Heat Sales Agreement will be executed with Middle Kuskoquim Electric, the
recovered heat supplier. The agreement states that the end user (the water treatment plant) will
pay the equivalent of one third of the cost Middle Kuskoquim Electric pays for fuel. This
amount is much lower than the retail price of fuel in the village. A standard BTU meter will
be used to measure the amount of recovered heat used at the water treatment plant.
The project cost worksheet has been completed and is attached to this application.
The potential fuel displacement is 1,779 gallons of the 2,250 gallons of fuel used at the water
treatment plant last year. The cost of the fuel is $6.00 per gallon. The annual cost of fuel for
the water treatment plant therefore equals $10,674. Over the 20-year life of the heat recovery
system, the savings will be $213,480 in today's dollars.
Middle Kuskoquim Electric will receive the equivalent of approximately $1.14 per gallon or
$2,028 per year in revenue for the recovered heat. This translates into $40,560 in today's
dollars over the lifetime of the project.
The net savings to the water treatment plant will then be $8,646 ($10,674 - $2,028) per year.
Over the 20-year life of the project, the net savings in today's dollars would be $172,920.
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Grant Application Round 5
There are no other known incentives or revenue streams that will result from this project.
The benefits to the community of this project include a reduction in the amount of fuel
required by the community, a much more efficient use of the recovered engine heat, and a
direct benefit to each community member due to the lower cost to produce, store, and deliver
water.
This project increases the sustainability of Middle Kuskoquim Electric by providing a revenue
stream of $40,560 over the lifetime of the project for the recovered water jacket heat from the
engines. The heat energy is presently being exhausted to the atmosphere.
This project also increases the sustainability of the water treatment plant by reducing its
operating cost by $213,480 over the twenty year life of the project.
The minimal maintenance and operating cost of Middle Kuskoquim Electric can be funded out
of its revenue stream. The minimal maintenance cost of the water treatment plant can be
funded out of its savings over the twenty year life of the project.
The water treatment plant is presently operated by the ARUC. This organization provides the
technical knowhow and financial management necessary to sustain a water treatment plant
over the long run. Middle Kuskoquim Electric operates power plants in several villages
throughout the area and has proven its sustainability over the years.
As mentioned above, the operating costs for this project will be minimal since the system is
largely automated. ARUC and ANTHC will provide any technical expertise required at the
water treatment plant. The existing boilers will be maintained in the water treatment plant as a
backup to the heat recovery system.
Both the Sleetmute Traditional Council and ANTHC are committed to meeting all reporting
requirements over the entire length of the reporting period.
A detailed heat recovery feasibility study has been completed as part of the energy audit of
the water treatment plant and is attached to this application. The design of the heat recovery
system is proceeding in anticipation of this construction funding award with another funding
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E) ENERGY AUTHORITY Grant Application Round .5
source and will be completed prior to the availability of construction funding.
The intent is to proceed with project construction as soon as construction funding is available.
The procurement phase will start in September 2012 and the construction completed during
Summer 2013. To the extent possible, local labor will be used during construction. A detailed
schedule is attached.
The Sleetmute Traditional Council, which owns the water treatment plant, is submitting this
application. ARUC has provided a letter of support for this project and ANTHC has provided
a match for the project as well as a letter of support. There is no known opposition to this
project.
The feasibility study was funded with separate grant funds managed by ANTHC. The design
is being completed by ANTHC with separate grant funds. This application is for construction
funds. A total of $126,682 in grant AEA funds being is being requested with an additional
match of $6,667 being provided by ANTHC.
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;9075436007 # 15/ 17
Renewable Energy Fund
Grant Application Round 5
SECTION 10 — ADDITIONAL DOCUMENTATION AND CERTIFICA710N
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 separate resumes submitted with applications, if the individuals do
not want their resumes posted.
B. Cost Workshest per application form Section 4.4.4.
C. Grant Budget Form per application form Section 9.
D. Letters demonstrating local support per application form Section 8.
E. -An electronic version of the entire application on CD per RFA Section 1.7.
F. Authorized Signers Form.
G. 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.
H. 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
c^� r
Signature
[%
Title
AFA12-001 Grant Application Page 12 of 12 711I 2011
Authorized Signers & Resolution
9075436425 OEHADMINROOM 10: 55:46 a.m. 08-04-2011 3117
Grant Documents Authorized Signers
Please clearly print or type all sections of this form.
Community/Grantee Name:
5LEE71Y)WrF 79AfJ1-TrOlVA COVOC11-
Regular Election is held: Date:
DECMfb-
Authorized Grant Signer(s):
Printed Name
Title
Term
Signature
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I authorize the above person(s) to sign Grant Documents:
(Highest ranking organization/community/municipal official)
Printed Name
Title
Term
Signature
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Grantee Contact Information:
Mailing Address:
P.0. U 10C,
Phone Number:
Q 0-7- 44 9 - Lf
26 3
Fax Number:
10 - L4F cf - 4
E-mail Address:
Fine (cc
Fiscal Year End:
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Ent' Type (For -profit or non-profit status):
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Federal Tax ID M
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Please submit an updated form whenever there is a change to the above information.
Please return the original completed form to: d MKA
Alaska Energy Authority
813 W. Northern Lights Blvd.
Anchorage, AK 99503 ENERGY AUTHORITY
Attn: Butch White, Grants Administrator
Mips:lMebmai.anthc.orglexchangeRneitz@anthc.orgllnboxlAEA 2011 Sleetmute Grant Community
Paperwork.EML/AEA_2011_Grant_Documents Authorized_Signers.doc/C58EA28C-18C0-4a97-9AF2-
036E93DDAFB3/AEA_2011 Grant Documents_Authorized_Signers.doc?attach=1
Council Resolution for Alaska Energy Authority Funding
Renewable Energy
Sleetmute Traditional Council
Resolution 11-07
A Resolution requesting Funding from the Alaska Energy Authority, Alaska Renewable Energy Fund
and commitment by the Sleetmute Traditional Council.
WHEREAS: The Sleetmute Traditional Council, hereinafter called the Council, is a goverining body in
Sleetmute, Alaska, and
WHEREAS: The Alaska Energy Authority, hereinafter called AEA, may provide assistance necessary
to help address the energy needs of our community
WHEREAS: The Council desires to seek and utilize renewable sources of energy in order to lower cost
for residents while making our community more economical viable and sustainable into the future in
order to guarantee our way of life for current and future generations
WHEREAS: The Council authorizes the Alaska Native Tribal Health Consortium to work with the
Sleetmute Traditional Council to develop, implement and manage the project for which we are seeking
funding from AEA
NOW THEREFORE BE IT RESOLVED; that the Council hereby request that the AEA appropiate
$120,000 through the Renewable Energy Fund to complete the Sleetmute Recovered Heat Construction
Project
BE IT FURTHER RESOLVED; that the Council grants authority to the individual signing this
resolution to commit the Sleetmute Traditional Council to obligation under the grant
BE IT FURTHER RESOLVED; The Sleetmute Traditional Council is in compliance with applicable
federal, state and local laws including existing credit and federal tax obligation
BE IT FURTHER RESOLVED; that ANTHC is hereby authorized through a Cooperative Project
Agreement to negotiate, execute and administer any and all documents, contracts, expenditures and
agreements as required for the Sleetmute Traditional Council and managing funds on behalf of this
entity, including any subsequent amendments to said agreements.
BE IT FURTHER RESOLVED; that the Council hereby authorizes ANTHC or its representatives to
enter upon or cross community land for the purpose of assisting the Council in carrying out this project.
BE IT FURTHER RESOLVED; The Sleetmute Traditional Council will commit $7,000 in the form of
water plant operator labor and equipment rental to this project as indicated in the application.
I,the undersigned, hereby certify that the Council is composed of 5 members of who , constituting a
QUORUM were present and that the foregoing resolution was PASSED and APPROVED by the
Council this day of e4UA _ 2011
Vote: 5 Yeas 0 Nays 11
Signed
Sleetmute Tr ditional Council Presi ent
Budget
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Letters of Support
*Alaska Native Tribal Health Consortium
Division of Environmental Health and Engineering
1901 Bragaw Street • Suite 200 • Anchorage, AK 99508-3440 • Phone: (907) 729-3600 • Fax: (907) 729-4090 • www.anthc.org
August 23, 2011
Ms. Sophie Gregory
President, Village of Sleetmute
PO Box 109
Sleetmute, AK 99668
Dear Ms. Gregory:
Re: Sleetmute -Letter of Commitment for matching funds to a proposal for Alaska Energy
Authority, Renewable Energy Funds Round V.
It is with pleasure that the Alaska Native Tribal Health Consortium (ANTHC), Division of
Environmental Health and Engineering (DEHE) is partnering with AVEC in your proposed
project to the Renewable Energy Fund of the Alaska Energy Authority. Your project, Heat
Recovery for Water System Heat, is one of exceptional importance to the future energy needs of
Sleetmute and one that ANTHC DEHE fully supports.
In support of your project, ANTHC DEHE will commit $6,667 as an in -kind match in the form
of project management services. The matching funds will be tracked and reported to AVEC, as
required for purposes of your quarterly reporting to the Alaska Energy Authority, in the event
that you are awarded the project.
We wish you every success on your proposal and look forward to working with you on this
important project.
Sincerely,
'�wwlak)�K
Steven M. Weaver, P.E.
Senior Director
Resumes