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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 AEA 12-001 Application Page 1 of 12 7/1/2011 rALASKA Renewable Energy Fund 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 AEA12-001 Grant Application Page 2 of 12 7/1//2011 rALASM Renewable Energy Fund ENERGY AUTHORITY Grant Application Round 5 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. AEA12-001 Grant Application Page 3 of 12 7/1//2011 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 AEA12-001 Grant Application Page 4 of 12 7/1//2011 ALASM Renewable Energy Fund Grant Application Round 5 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 AEA12-001 Grant Application Page 5 of 12 7/1//2011 r ALASKA 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. AEA12-001 Grant Application Page 6 of 12 7/1//2011 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. AEA12-001 Grant Application Page 7 of 12 7111/2011 = ALASM Renewable Energy Fund 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. AEA12-001 Grant Application Page 8 of 12 7/1/P2011 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. AEA12-001 Grant Application Page 9 of 12 7/1//2011 rALAORITY Renewable Energy Fund 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 AEA12-001 Grant Application Page 10 of 12 7/1//2011 rrM ALASKA Renewable Energy Fund 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. AEA12-001 Grant Application Page 11 of 12 7/1//2011 08-04-11;10:48AM;YKHC r ALASKA ;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 1t1'fffo V V 7_4mw W__ I authorize the above person(s) to sign Grant Documents: (Highest ranking organization/community/municipal official) Printed Name Title Term Signature Sbp+�I� (,2£6ofL PRE10 0c JT - MI 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: O Ent' Type (For -profit or non-profit status): MOtJ-p Federal Tax ID M C12-0/ q2 oO�O 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 v M M o n t0 N M M o n N M M r m M o O o M M r so v M M o N M N M N o v ? v rn v m o N M N N f+l 6 N M f0 6 N OI V 7 M C6 r Ip fA Vi !A (A (A EA (9 f9 M (A (9 IA f9 f9 f9 di f9 f9 (A U = z ¢ U S z a U = z ¢ U 2 z ¢ U = z ¢ U S z a U 2 z ¢ U 2 z a U 2 z Q U = z a U 2 z a U 2 z ¢ U = z ¢ U 2 z a U 2 z ¢ U = z ¢ U 2 z ¢ U 2 z ¢ c c c c -c a Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y r f0 N M M M n tp [O M M M r fp f0 M M M O O N r fU V M M N r (O n t0 f0 r t0 tU r (U (p tU fU r0 fA (A (9 69 W E9 (A f9 f9 (A di fA !A M i9 f9 iA bf fq n tp m tp aD M OD V n N N O V N N N N N N <O N W V M N RA Ni 69 f9 M E9 W M i9 fA M f9 (A 19 fA (A fq di !A J J c � � W L _ La E O m y a N m lL m c O 0 U v m J C $ W a 0 U c m o N o 2 m U t y W W o U m a W N ac m W J W m c O L O c m c W V m a c C o N W E m C O UI m E E U U W a Q c ii O W W N W O C CO oa m m 6 _D a F E W W co a W 10 W _U N W L U O O O V 2 U O Q y c 0 U c W 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