HomeMy WebLinkAboutCity of Petersburg Public Library Round V applicationALASKA Renewable Energy Fund Round 5
r' ENERGY AUTHORITY Grant Application
SECTION 1 —APPLICANT INFORMATION
Name (Name of utility, IPP, or govemment entity submitting proposal)
City of Petersburg, Alaska
Type of Entity: Local Government Flscal Year End June 30
Tax ID # 92-6000142 Tax Status: For -profit or X-non-profit ( check one)
Mailing Address
Physical Address
PO Box 329, Petersburg, Alaska 99833
12 Nordic Drive, Petersburg, Alaska
Telephone
Fax
Email
907-772-4425
907-772-3759
1 ppwdir@ci. petersburg.ak.us
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Title
Karl Hagerman
Acting City Manager, City of Petersburg
Mailing Address
PO Box 329, Petersburg, Alaska 99833
Telephone
Fax
Email
907-772-4425
907-772-3759
wdir ci. petersburg.ak.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
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)
Resolution #1984 attached
Yes
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
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.)
AEA 12-001 Application Page 1 of 32 7/1/2011
.� ALASKA Renewable Energy Fund
ENERGY AUTHORITY Grant Application Round 5
Yes 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.
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)
Type in your answer here and follow same format for rest of the application.
Petersburg Public Library Geothermal Heat Pump Construction
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:
Petersburg, Alaska
Latitude/Longitude: 56°49#02=/ 132057:#26=
Blk 41, Lots 1-8, USS 1252
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
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 City of Petersburg is proposing construction (Phase IV) of a hybrid ground source heat
pump system to serve the heating needs at the City of Petersburg's new public library facility.
The new Petersburg Public Library is a 9,770 sq. ft. facility to be located in downtown
Petersburg. It will serve primarily Petersburg residents, as well as visitors and temporary workers
in our community. Construction of the facility is scheduled to begin in the spring of 2012 and be
completed in the summer of 2013. The City of Petersburg Administration, Community
Development and Public Library Departments are directly involved with the design and
construction of the facility. The hybrid system consists of a ground source heat pump system to
meet the facilitv's heating needs and a sunnlemental electric heat system serving as a back un.
AEA12-001 Grant Application Page 2 of 32 7/1//2011
r' ALASKA Renewable Energy Fund
i ENERGY AUTHORITY Grant Application Round 5
The use of a hybrid ground source heat pump system in lieu of conventional oil or electric heat
systems at the new Petersburg Public Library facility is supported by the City of Petersburg
Administration, Community Development, and Public Library Departments, and the City of
Petersburg City Council. The Renewable Energy Fund Grant request herein is for the additional
construction cost for the ground source heat pump system. This funding request is only for the
costs associated with the ground source heat pump portion of the hybrid system; the costs
associated with the supplemental electric boiler and water heaters are excluded from this request.
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.)
When the new library facility was originally proposed, it was assumed that the facility would use
a conventional oil or electric heat system. However, during schematic design a Heating Systems
Optimization Analysis by Alaska Energy Engineering, LLC value engineering study explored the
potential of a hybrid ground source heat pump system in lieu of a conventional heat system
(Appendix G). The study found that while the initial construction cost was higher, the hybrid
ground source heat pump system was projected to reduce annual energy expenditures by 63%
when compared to an electric system. Reducing annual energy expenditures at the new library
will enable the City of Petersburg to use the saving for other city functions, including providing
adequate staffing and maintenance of the new library facility.
The site -specific nature of the hybrid ground source heat pump system reduces the
environmental footprint of the new library. When compared to a traditional electrical heat
system, the hybrid ground source heat pump system places a lighter burden on the community's
overtaxed electrical infrastructure and capacity, thus reducing the need for new development of
the region's hydroelectric resources.
The use of a hybrid ground source heat pump system at such an eagerly awaited public facility
will increase public awareness of renewable energy alternatives within the community and
possibly on a larger scale. The construction and operation of the hybrid ground source heat pump
system will provide experience to local contractors and City of Petersburg maintenance staff that
could translate to reduced construction and maintenance costs for similar renewable energy
systems in the future.
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.
$5.3M (cash and in -kind) has been raised towards the fundraising goal of $7.OM for the new
library. $1.7M still needs to be secured for the project to be fully funded. On October 4, 2011,
Petersburg residents will vote on a $1.5M general obligation bond for the construction of a new
public library.
Initial funding for the new library was secured prior to the energy analysis that led to the
decision to use a hybrid ground source heat pump system rather than conventional oil or electric
heat systems. While the hybrid ground source heat pump system will reduce operational costs
AEA12-001 Grant Application Page 3 of 32 7/1//2011
X ASKA
ENERGYAUTHORITY
Renewable Energy Fund
Grant Application Round 5
over the life of the facility, it is estimated to increase project costs, including feasibility, initial
design, and construction costs, by $264,400.
$186,400 (80%) is being requested from the AEA's Renewable Energy Fund. A $45,000 match
from Petersburg Municipal Power & Light (PMP&L) Heat Pump Incentive Program has been
pledged. The PMP&L match is supported by the attached memo from Joe Nelson,
Superintendant PMP&L (Appendix D) and Resolution 1984 from the Petersburg City Council
(Appendix F). The remaining $1,600 local match will come from the Library's Capital
Campaign Fund. These funds are not included as local contributions for any other state or
federally assisted project or program.
Sources
AmountFunding
Local donations
290,560
City of Petersburg - land donation
584,400
Rasmuson Foundation
500,000
State of Alaska
3,725,048
USDA Rural Community Facilities Grant
SeCUred to date
City of Petersburg GO Bond
200,000
00 000
1,500,000
AEA Renewable Energy Grant Et Local Match
$233,000
00
* Please see attached Heating Systems Optimization Analysis/Alaska Energy Engineering, LLC
construction cost estimate for detail (Appendix G).
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 r"ussteo
2.7.1 Grant Funds Requested In this application.
$ 186,400
2.7.2 Other Funds to be provided (Project match)
$ 46,600
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2)
$ 233,000
Project Costs & Benefits
(Summary of total project costs including work to date and future cost estimates to get to a fully
operational project)
23A Total Project Cost (Summary from Cost Worksheet
$264,400
Including estimates through construction)
2.7.5 Estimated Direct Financial Benefit (Savings)
$126,000
2.7.6 Other Public Benefit (If you can calculate the benefit In
Public education of benefits
terms of dollars please provide that number here and
of GSHP; efficient use of
explain how you calculated that number In your application
hydroelectric resources
(Section 5.)
AEA12-001 Grant Application Page 4 of 32 7/1//2011
rZi. ALASKA Renewable Energy Fund
ENERGY AUTHORITY Grant Application Round 5
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.
Stephen Geisbrecht, incoming City of Petersburg City Manager, is overseeing the design of the
project. See Appendix A for resume.
Jody Tow, Finance Director, City of Petersburg Accountant, is overseeing the project accounting
and provides financial reporting to grant agencies. See Appendix A for resume.
(position open), On site Construction Administrator, will oversee the construction of the project.
See Appendix A for draft scope of work.
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.)
Construction documents will be completed by Feb 1, 2012. The project will be advertised for
bid in February 2012 and open/award bids in March 2012. Barring any unforeseen
circumstances, Notice to Proceed with construction should be issued by March 12. Construction
is expected to begin as soon as the winter weather allows with site work most likely beginning in
early April. It is anticipated that the ground source heat pump system well field will be installed
in conjunction with the building site work in the early fall of 2012. Construction is anticipated to
be completed in the summer of 2013.
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.)
August 3, 2011 Construction Document Notice -to -Proceed
January 27, 2012 Completion of bid documents
January 31 Advertise for construction bids
March 6 Contractor selection and award
March 20 Construction Notice -to -Proceed / Building Permit Issued
May 20, 2013 Substantial completion / Certificate of occupancy
June 24 Final acceptance, Commissioning and start-up
July 1, 2013 Grand opening
Please note that most of the decisions involving the use of a hybrid ground source heat pump
system rather than conventional electric heat system have already been made. The City of
AEA12-001 Grant Application Page 5 of 32 7/1//2011
r41C-ALASKA Renewable Energy Fund
. ENERGYAUTHORITY Grant Application Round 5
Petersburg is committed to the use of hybrid ground source heat pump system at the new public
library facility due to the many benefits previously identified in this application. The only major
decision that remains is how to fund construction of the hybrid ground source heat pump system.
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 City of Petersburg City Manager has contracted with MRV Architects, Inc. for the design of
the new public library facility. MRV's project design team is led by Corey Wall, AIA, and the
team comprises the following individuals and firms:
Civil — R&M Engineering, Inc. — Kevin Puustinen, P.E.
Structural — BBFM Engineers, Inc. — Dennis Berry, P.E.
Mechanical — Murray & Associates, P.C. — Doug Murray, P.E.
Electrical — ACM Engineers, Inc. — Ken Ratcliffe, P.E.
Energy/Commissioning — Alaska Energy Engineering — Jim Rehfeldt, P.E.
Cost Estimator — HMS, Inc. — Ehsan Mughal
The construction contractor and subcontractors will be selected through a competitive bid
process per the City of Petersburg's procurement regulations; therefore, information regarding
the construction contractors who will undertake the work is not available at this time.
Major equipment purchases are to be included in the construction contract.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
The Construction Administrator will be on the construction job site. The Construction
Administrator will monitor and record project progress for the duration of construction. He/she
will provide one or two page monthly status reports by email to the Authority that identify the
project progress, regulatory and compliance issues, possible delays, and pictures of the work.
He/she will work with Jody Tow of the City of Petersburg Finance Department to include an
accounting of the monthly and overall project grant income and expenditures in the monthly
report. Quarterly reports will also be furnished that summarize the same project information on a
quarterly basis. They will also be responsible for providing additional submittal items as defined
in the Authority's project agreement.
3.6 Project Risk
Discuss potential problems and how you would address them.
Lack of sufficient funding to construct the facility. While the city has acquired 80% of the
funding necessary for the project, the additional 20% must come from local sources. In October
2011, the community will vote to issue $1.5M in general obligation bonds to complete the
funding package. There is strong community support for the new library and we are confident the
measure will pass. If the measure were to fail, the project would be postponed and potentially
redesigned. If this were to occur, this application would need to be revoked and resubmitted
based on the new design.
AEA12-001 Grant Application Page 6 of 32 7/1//2011
r, ALASM Renewable Energy Fund
ENERGY AUTHORITY Grant Application Round 5
Lack of sufficient funding for the construction of the hybrid ground source heat pump system is
another potential problem for the project. The ground source heat pump presents higher initial
construction cost than a traditional electric heating system. If sufficient funding is not secured,
the project team has considered petitioning the Petersburg City Council to pay for the ground
source heat pump from the city's general fund. Given the estimated long term benefit of the
hybrid ground source heat pump system, a good case could be made that it is in the City of
Petersburg's best interest to provide additional funds for the hybrid ground source heat pump
system.
Another potential problem is the drilling of the well field. Unforeseen subsurface conditions
could be encountered that may impact the depth or layout of the wells. A test well has not yet
been drilled on site. Relocation of well field or increasing number of wells and reducing their
depth are potential mitigation strategies should the well field construction encounter subsurface
problems.
Another potential problem is generating the anticipated design heat transfer rates from the
ground source heat pump system. Conservative estimated will be used for design of the ground
source heat pump system to reduce the potential for shortfalls in anticipated heat transfer rates.
Ultimately, greater reliance on back-up electric boiler or increasing the size of the well field are
potential mitigation strategies should the heat transfer rates generated by the ground source heat
pump system prove to be below design expectations.
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.
Due to the Southeast Alaska's favorable soil conditions and the high water table, the amount of
potential energy that can be extracted utilizing a ground source heat pump system is virtually
limitless. However, the high initial capital investment required for a heating loop and well field
has limited the use of ground source heat pumps in the area. As energy costs have risen in recent
years, the anticipated payback period for the investment of initial construction capital for a
ground source heat pump system has decreased to the point where ground source heat pump
systems are economically viable.
The primary con of the ground source heat pump system is the high initial capital investment
required to construct the system. This factor has limited the use of ground source heat pumps in
AEA12-001 Grant Application Page 7 of 32 7/1//2011
r _ ALASM
Renewable Energy Fund
Grant Application Round 5
Petersburg. Another con of the ground source heat pump system is the higher annual maintenance
expenditures required to operate the system when compared with conventional electric heat
systems. Unfamiliarity with ground source heat pump systems could pose a bit of a con as
compared to traditional heat systems until City of Petersburg maintenance staff become accustom
to the maintenance and repair activities associated with the ground source heat pump system.
The primary pro of the hybrid ground source heat pump system is the low energy consumption of
the heat source. The hybrid ground source heat pump system is projected to reduce annual energy
expenditures by half when compared to an electric system.
Another pro of the hybrid ground source heat pump system at the new public library facility is the
public acceptance and recognition that will be brought to sustainable alternative energy
technologies that could lead to broader use of similar heat systems in the region. Such a trend
could reduce the import of fuel oil for heating and the exhaust associated with its combustion. A
reduction in electrical consumption would allow PMP&L to reduce the amount of diesel
generated power provided to the area and maintain the adequacy of the existing hydroelectric
infrastructure.
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 hybrid ground source heat pump system is a new system designed specifically to serve the
heating needs of the new public library facility. The facility does not exist at this time
and the heat system will not serve any other facilities.
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.
Petersburg Municipal Power & Light (PMP&L), an enterprise fund of the City of Petersburg,
provides electricity to the community. PMP&L has three power generation sources to serve the
existing load:
■ PMP&L generates electric power at its 2 MW Blind Slough Hydroelectric Project and
provides 29% of system power.
■ The downtown diesel plant located at PMP&L's office campus in downtown Petersburg
provides backup when the transmission service from Tyee is interrupted. In 2008, the
diesel plant provided 2% of system power.
■ PMP&L purchases power from the 22.5 MW Tyee Lake Hydroelectric Project owned by
the Southeast Alaska Power Agency (SEAPA) and operated by the Thomas Bay Power
Authority (TBPA) and provides 69% of system power. Power from Tyee is delivered to
Petersburg via the existing transmission segment from Tyee to the Scow Bay Substation.
Service from the substation to the city is via a city -owned 24.9 kV distribution line.
Over the last few years the rising cost of home heating oil and gasoline has made conversion to
electric heat cost effective. Many Petersburg residents have traded in their oil -based systems for
AEA12-001 Grant Application Page 8 of 32 7/1 //2011
r. ALASKA Renewable Energy Fund
ENERGYAUTHORITY Grant Application Round 5
electric resistant heat and purchased electric cars. As a result, PMP&L has seen a significant
increase in demand, especially in winter months. PMP&L recently purchased a new backup diesel
generator to meet this increased demand and is concerned that if current trends continue it will
not have sufficient capacity with the current system to meet the growing demand for power.
The proposed hybrid ground source heat pump system will use far less electricity than an all -
electric system and places fewer demands on an already taxed system. In short, the proposed
system is strongly supported by PMP&L. In fact, PMP&L is providing the matching funds for the
proposed project specifically because they recognize the benefit it provides to their existing
system and to the community.
4.2.3 Exisdng Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
PMP&L provides power to Petersburg and to many residents outside city limits along the Mitkof Highway
corridor.
The new public library facility's electrical power consumption should not adversely impact
PMP&L's electrical power distribution throughout the community
The new public library facility is projected to have little or no impact on PMP&L customer rates.
The use of hybrid ground source heat pumps at the new library will have a positive impact on
customers and the City of Petersburg by keeping operating costs low.
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
This project proposes the construction of a hybrid ground source heat pump system to
serve the heating needs at the new Petersburg Public Library. The proposed system is a
hybrid of ground source heat pumps and electricity with electric boilers supplementing the ground
source heat pump system in times of high demand. Thus, the electric water heaters and boilers
will only be utilized when the facility's heating load exceeds the maximum capacity of the ground
source heat pump system, which is projected to occur only during colder winter temperatures.
The silty, sandy, gravelly soil; the absence of bedrock; and the high water table on the site, make
the site naturally suited to the use of a ground source heat pump well field.
AEA12-001 Grant Application Page 9 of 32 7/1 //2011
ALASM Renewable Energy Fund
rZ,
;, ENERGY AUTHORITY Grant Application Round 5
The heating plant consists of a 10-ton ground source heat pump (GSHP) and an electric boiler.
The heat pump is coupled to the ground with vertical 6" diameter boreholes, drilled 250-350'
deep, into which is placed a 3/4" HDPE pipe loop and the bore backfilled with thermal conductive
grout. The loopfield will be located under the parking lot.
The heat pump is connected to a loopfield consisting of six vertical bore holes, each 315' deep.
The loopfield will be located under the parking lot. The heat pumps and the electric boiler will
operate in a lead/lag/standby configuration to maintain a storage tank of heating water. The
hydronic heating system circulates the heated water to the in -floor radiant heating system to heat
the building.
The efficiency of the system depends upon the deep ground temperature, which is likely to be
—43°F. The size of the loopfield depends upon the thermal conductivity and thermal diffusivity of
the subsurface. This information is not currently known, so conservative, assumed values are
used. A thermal conductivity test, which requires drilling and installing a production borehole, is
required to optimally size the system. This test will be incorporated into the construction contract
using unit prices to adjust the loopfield size once the thermal values are known.
The ground source heat pump coupled to a vertical loopfield "lifts" heat from the constant deep
ground temperature, which is assumed to be 43°F. The loopfield return temperature from the
ground is estimated to be 30°F. The manufacturer's data indicates that the heat pump can "lift"
from 30°F to 105°F at a COP of 3.5. The energy analysis is based on heat pump COP that is 15%
below the manufacturer's data. This results in a COP of 3.0.
Commissioning of the hybrid ground source heat pump system and other building mechanical,
electrical, and control systems has been included in the professional services agreement for the
project. The commissioning of all integrated building systems is essential for the building
systems to interact as designed and function in their most efficient manner. Commissioning is not
just recommended, it is mandatory
4.3.2 Land Ownemhlp
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 new Petersburg Public Library site is located in downtown Petersburg on land already owned
by the City of Petersburg. There are no known land ownership or access issues jeopardizing the
construction of the new public library facility or the proposed hybrid ground source heat pump
system.
4.3.3 Pennine
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
Construction of the public library facility and associated hybrid ground source heat pump system
AEA12-001 Grant Application Page 10 of 32 7/1//2011
r- ALASM Renewable Energy Fund
_ ENERGY AUTHORITY Grant Application Round 5
will require a building permit from City of Petersburg's Community Development Department.
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
The project site is a previously developed urban space. The site was filled in the late 1960s by the
previous owner and then again by the City of Petersburg in 1999. It is considered uplands by the
US Army Corps of Engineers. There are no open spaces affected by the construction of the new
library facility. The site is not steeply sloped. There is no wildlife refuge affected by the project.
The project is not situated on a shoreline.
No impacts to biological resources are expected from the construction of the new Petersburg
Public Library. The site is a cleared, urban site. Minimal environmental impacts related to the
construction of the facility will include increased traffic from worker vehicles, construction
equipment, and material deliveries. Proper dust suppression measures will be employed during all
construction activities. The existing municipal storm drainage system will be utilized to avoid,
minimize and mitigate environmental impacts.
No permits of an environmental nature are needed for the project. Most of the site is already a
gravel pad, and the portions of forested land are not wetlands and have no adverse land
designations. A Coastal Project Questionnaire has been completed and submitted for the project.
The State of Alaska, Department of Department of Natural Resources, Division of Coastal
Management reviewed the project in June 2010, no impacts were found. The project has
successfully undergone a SHPO Section 106 review which determined no presence of
archaeological or historical resources.
The scale of the proposed public library facility is in keeping with surrounding forested area and
the nearby residential area so aviation conflicts and telecommunication interference are not
anticipated. Since the majority of the proposed hybrid ground source heat pump system is
concealed below grade or within the building, no visual or aesthetic impacts are anticipated.
The proposed hybrid ground source heat pump system is a closed loop system so environmental
impacts are minimal.
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.
AEA12-001 Grant Application Page 11 of 32 7/1//2011
rlALASM Renewable Energy Fund
. ENERGY AUTHORITY Grant Application Round 5
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
Total Anticipated Project Cost: $264,400
Total Phases I and II Recon and Feasibility: $10,000
Total Phase III Design: $21,400
Total Phase IV Construction Cost: $233,000*
(*NB: Grant request is for Phase IV Construction only)
Requested Grant Funding: $186,400
Applicant Matching Funds: $46,600
Other Funding Sources: City of Petersburg
Projected Capital Cost of Renewable Energy System: $214,167
Projected Development Cost of Proposed Renewable Energy System: $50,233
Cost estimates derived from Heat System Optimization Analysis by Alaska Energy Engineering,
LLC. August, 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.)
The projected operating and maintenance costs for the proposed hybrid ground source heat pump
system at the new library facility are $6,028 annually; $4,583 for electricity and $1,175 for
routine maintenance.
The hybrid ground source heat pump system is projected to decrease annual energy costs by
63.6% when compared with electric systems.
Operations and maintenance of the system will be funded from the City of Petersburg's General
Fund.
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
AEA12-001 Grant Application Page 12 of 32 7/1//2011
rGE:ALASKA Renewable Energy Fund
ENERGY AUTHORITY Grant Application Round 5
• Proposed rate of return from rant -funded project
This project does not provide the opportunity to purchase or sell electrical power.
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
See attached Appendix B: Cost Worksheet.
SECTION I- 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 proposed hybrid ground source heat pump system is projected to save $126,000 in energy
costs when compared with a conventional electric system over a 25 year period.
While the project does not generate revenue through the generation of electrical power, the ability
of the ground source heat pump system to meet the heating needs of the new library facility
utilizing an inexpensive renewable energy resource will result in cost savings for the City of
Petersburg and ultimately, local residents.
The City of Petersburg is not aware of additional annual incentives or revenue streams that might
be available due to the use of the proposed ground source heat pump system, but with the
increasing focus on energy independence such additional benefits may soon become available.
The City of Petersburg will continue to monitor these opportunities in an effort to enhance the
facility's cost recovery efforts.
This project provides an opportunity for the City of Petersburg and public to learn a great deal
about the economic sustainability and viability of ground source heat pumps. This project could
help change the way the City of Petersburg and the private sector address the heating needs of
future facilities.
The Petersburg Public Library GSHP project offers non -economic public benefits to Alaskans
over the lifetime of the project by demonstrating the ability of a small rural community to
implement a renewable energy project. It will be among the first GSHP system in a public library
in the state. It will serve as a model for the many libraries across the state currently in
development. The lessons learned from the construction and operation of the proposed hybrid
ground source heat pump system will invariably increase familiarity with the technology and
should reduce construction costs of future moiects.
AEA12-001 Grant Application Page 13 of 32 7/1//2011
ALASM Renewable Energy Fund
C . ENERGY AUTHORITY Grant Application Round 5
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 Petersburg Public Library is a public facility owned and operated by the City of Petersburg.
The Library operates as a separate department within the municipal government. As a public
entity, the facility, including the GSHP system, is owned entirely by the residents of the city. A
seven member elected body, the Library Advisory Board, establishes policy, provides operational
oversight, and makes recommendations to the City Council.
The City of Petersburg proposes to finance the maintenance and operations for the life of the
project through the city's general fund. The Library Department does not operate as an enterprise
Rind, thus it relies on general fund revenue to fund its operation and maintenance. The City of
Petersburg has maintained and operated a public library since 1959. Throughout the development
process, city staff has worked closely with the design team to develop a heating system that is
efficient and cost-effective. The operations of the completed facility will be handled by the City of
Petersburg's Library Department. The maintenance of the facility will be handled City of
Petersburg's Maintenance Department. Operational issues that arise that cannot be handled by the
Maintenance Department will be contracted out to local contractors.
The anticipated operational costs for the proposed system are:
Annual maintenance — in-house (electric boiler, heat pump, pumps) - $775
Annual maintenance — contract labor (heat pump) - $400
Energy costs - $4,583
TOTAL - $6,028 per year
The proposed hybrid ground source heat pump system includes installation of an electric boiler,
which is available in case the heat pump system fails. The electric boiler is not a part of this grant
request, but it will be installed in the new library facility. If the city were forced to use the electric
boiler alone, energy costs alone would increase by approximately $8,000 per year.
The City of Petersburg is committed to reporting the savings and benefits of the system. The
facility's energy consumption and costs will be monitored to determine the effectiveness of the
hybrid ground source system and as a means to gauge the potential of ground source heat pumps at
other City of Petersburg facilities. Also, monitoring and reporting of ground source heat pump
system operations to AEA as required by the grant agreement will be provided. Further energy
conservation measures should be considered if the facility is exceeding its projected energy
consumption.
AEA12-001 Grant Application Page 14 of 32 7/1//2011
rmALASM Renewable Energy Fund
_ ENERGY AUTHORITY Grant Application Round 5
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.
The schematic design for the new library facility was completed in 2009 and the design
development phase was completed in March 2010. In the spring of 2011 a team of city department
heads, a construction coordinator, and the architects/engineers met to specifically address energy
alternatives that would reduce the operations costs of the facility. Issues addressed include:
project scoping, resource identification, land use/environmental analysis, preliminary design and
cost analysis, cost of energy/market analysis and final report/recommendations. At the
conclusion of this phase the Heating Systems Optimization Report was received and it was
determined to pursue the additional funding required for the installation of heat pumps. The city
considers this completion of Phases I and II of the project.
The Construction Documents phase of the new library project is now underway and will be
completed in early 2012. The city has contracted for the design work for geothermal heat pumps
as part of the CD phase. The city considers this initiation of the design phase (Phase III) of the
project. A 75% CD submittal is expected in October 2011. 100% CD Submittal to Owner is
anticipated in January 2012 at which time the city will advertise for Construction Bids.
Construction Notice -to -Proceed/ Building Permitting is planned for March 2012. Substantial
Completion / Certificate of Occupancy is expected by May 2013.
When AEA awards are announced in the summer of 2012, the project will be well positioned to
proceed immediately should our application be approved. We will design the facility with an
electric boiler as a base bid and also design a geothermal system as an alternate bid item with the
stipulation that the contractor hold the price for 4 months (March to July). If our AEA grant
application is approved in July we would award the alternate.
Jody Tow, Finance Director, City of Petersburg Accountant, is overseeing the project accounting,
ensuring that grant requirements are met, and providing financial reporting to grant agencies.
Grants that have been previously awarded for the project include:
FY07 State Alaska Legislative Grant - $12,048
FY09 State Alaska Legislative Grant - $150,000
FYI I State Alaska Legislative Grant - $3,3000,000
FY12 State Alaska Legislative Grant - $263,000
USDA Rural Community Facilities Grant - $200,000
Rasmuson Foundation Tier II Grant - $500,000
To date, all reports to participating granting agencies have been completed and filed on time.
AEA12-001 Grant Application Page 15 of 32 7/1//2011
rALASKA Renewable Energy Fund
C. ENERGY AUTHORITY Grant Application Round 5
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.
There is strong public support for the construction of the new library facility and for the use of a
renewable energy source to meet its heating needs, especially in light of the extremely high costs
of other recently constructed city facilities. On August 1, 2011 the Petersburg City Council
approved the development of a local heat pump incentive program and passed a resolution
supporting the new library project as the first beneficiary of the program (Appendix F). This
resolution, along with letters of support from Petersburg Municipal Power & Light and
Petersburg Economic Development Council are attached to demonstrate local support for the
project (Appendix D).
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
New Petersburg, Public Library Facility
$5.3M (cash and in -kind) has been raised towards the fundraising goal of $7.OM for the new
library. $1.7M still needs to be secured for the project to be fully funded. On October 4, 2011,
Petersburg residents will vote on a $1.5M general obligation bond for the construction of a new
public library. The final piece necessary to complete the funding picture is this AEA grant and
the local contribution for installation of a GSHP system.
Funding Sources
Amount
Local donations
290,560
City of Petersburg - land donation
584,400
Rasmuson Foundation
500,000
State of Alaska
3,725,048
USDA Rural Community Facilities Grant
Secured to date
City of Petersburg GO Bond
200,000
00 000
1,500,000
AEA Renewable Energy Grant 8t Local Match
Totat Project •
$233,000
$7,033,008
GSHP System
Initial funding for the new library was secured prior to the energy analysis during the project
design that led to the decision to use a hybrid ground source heat pump systems rather than
conventional oil or electric heat systems. While the hybrid ground source heat pump system will
reduce operation costs over the life of the facility, it is estimated to increase design and
construction costs by $254,400.
AEA12-001 Grant Application Page 16 of 32 7/1//2011
ALAORITY
ENERGY SHKA
Renewable Energy Fund
Grant Application Round 5
An estimated $10,000 has been invested in consultant analysis of heating options, design work,
and City of Petersburg staff time while researching the potential of a GSHP for the new public
library. The City of Petersburg considers this work Phase I Reconnaissance and Phase II
Feasibility Analysis and has not included these costs in the grant request. In addition, the city
will be moving forward with Phase III final design for the GSHP system at a cost of
approximately $21,400 prior to the AEA grant award; these costs are also not included in the
grant request, but would appreciate any consideration due these preliminary expenditures in the
review of this grant request.
Construction cost $214,167
Project management $18,833
Total $233,000
AEA Grant request $186,400
Local Match $46,600
$186,400 (80%) is being requested from the AEA's Renewable Energy Fund. A $45,000 match
from Petersburg Municipal Power & Light Heat Pump Incentive Program has been pledged, and
the remaining local match will come from the Library's Capital Campaign Fund. The PMP&L
match is supported by the attached memo from Joe Nelson, Superintendant PMP&L and
Resolution 1984 from the Petersburg City Council.
To the extent required by federal and State law the project will include the requirements for
Davis -Bacon and Little Davis -Bacon when contracting for construction services.
An alternative funding plan has been developed. If sufficient funding is not secured, the project
team will request the Petersburg City Council to pay for the ground source heat pump from the
city's general fund. Given the estimated long term benefit of the hybrid ground source heat
pump system, a good case could be made that it is in the City of Petersburg's best interest to
provide additional funds for the hybrid ground source heat pump system.
AEA12-001 Grant Application Page 17 of 32 7/1//2011
/1' ALASM Renewable Energy Fund
GE. ENERGY AUTHORITY Grant Application Round 5
SECTION 10 —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 separate resumes submitted with applications, if the individuals do
not want their resumes posted.
B. Cost Worksheet 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:
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 Karl Hagerman
Signature,
Title Acting City Manager
Date I August 15, 2011
ATTACHMEENTS
Appendix A: Resumes of Key Staff
Appendix B: Cost worksheet
Appendix C: Grant Budget Form
Appendix D: Letters of Support
Appendix E: Authorized Signers Form
Appendix F: Petersburg City Council Resolution #1984
Appendix G: Heating Systems Optimization Analysis, Alaska Energy Engineering, LLC
AEA12-001 Grant Application Page 18 of 32 7/1//2011
&
��
/44w[` ALAHSKA
Renewable Energy Fund
Grant Application Round 5
Appendix B: Cost Worksheet
Je ALASKA
Renewable Energy Fund Round S
Project Cost/Benefit Worksheet
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 Co. a
sustainable basis.
Annual average resource availability. Geoexchange potential limited only by the size of
the geothermal loopfield.
Jnit depends on project type (e.g. wind ropower o asss e )
2. Existing Energy Generation and Usage
a) Basic configuration (if system is part of the Ralibelt' grid, leave this section blank)
Number of generatorwboElerskither f electric boiler
d. Rated capacity of generatofslbaflersFather 60 KW
fit. GerreraWbolleWothertype Electric heat
fv_ Age of gener domfboilan dates NIM
v. Efficiency of generelofsf ollerskrthw 95% seasonal efficiency
b) Annual O&M cost (if system is part of the Rallbelt grid, leave this section blank)
i. Annual O&M cost for labor $216
1. Annual O&M cost for rtaa-,labor $150
c) Annual elecMcity pmductlon and fuel usage (fill In as applicable) (If system Is part of the
Railbett grid, leave this section blank)
R. Ekbrtrictty, [kWh] NO
il. Fuel usage
Diesel Lgafl
+DtlM
iif. Beak Wad nla
iv. Average load We
v. Mlnimm Load We
vi. Efti'iclency Na
vil Future trends We
d) Annual heating fuel usage (fill In as applicable)
i. Diesel (gal or MMBtu]
6. Electricity Wft] 104,000 kWh
ni. Propane (gal or MMBtu]
iv. Coal Pon or MMBtu]
v. wood [cords, green tans, ,try tons]
vi. Ostler
1 rttr stalrbah grid connects ail customers at Chugach eleanc Association, Momer Electric Association. Golden Valley Elecrs•c
Association, the City of Seward Electric Department, Matanuska Electric Associatlon and Anchorage "vi c,ipal Ught and Powe
RFAAEAI2-00- App(soat n Cast Worksheet Page t
AEA12-001 Grant Application Page 24 of 32 7/1//2011
. ALASKA Renewable Energy Fund
W. ENERGYAUTHORITY Grant Application Round 5
/an ALASKA Renewable Energy Fund Round 5
X..84EWY AUTH IT Project Cost/Benefit Worksheet
3. Proposed System Design Capacity and Fuel Usage
(Include any project/ons for continued use of non-renewable fuels)
a)
Proposed renewable capacity
Hybrid heat pump system consists of a 29 kW hem pump
(Wind, Hydro, Biomass, Other)
and a 60 kW electric tidier. It will draw 19.3 kW of
[kW or MMBtuihd
renewable heat from the ground.
b)
Proposed annual elecMcit, or heat production (10 to as applicable)
1. Bectricity [kWh]
R. Heat (MMStu]
355 MMBtu
c)
Proposed annual fuel usage (fig in as applicable)
i. Pfupane [gal or MMSM]
k. Coal [tones or MMBtu]
M. Wood [cords, groan tarns, dry tons]
IV. other
4.
Project Cost
a)
Total capttal cost of new system
$214,167
b)
Development cost
$50,233
c)
Annual O&M cost of new system
$1.200
d)
Amual fuel cost
$4.600
5. Project Benefits — annually as compared to electric heat
a) Amount of fuel displaced for
i. Electricity
M. beet 67,000 kWh
kL Tmnsportabon
b) Current price of displaced fuel 1221E per kWh
c) Other economic benefits Efficient use of hydroelectric resources
d) Alaska public benditts Public education of benefits of GSHP
6. Power Purchase/Sales Price
a) Price for power purchase/sale 12.2 ¢ per kWh : no power safes from this project
7. Project Analysis
a] Basic Economic Analysis
Projedt beneftcost MO n1a
paybm* Cyeart;) rda
RFAAEAI2.OD' Apofcaaaon Coat Worksheet
Pape 2 7-`-1'
AEA12-001 Grant Application Page 25 of 32 7/1//2011
/Z. ALASM
Renewable Energy Fund
Grant Application Round 5
Appendix C: Grant Budget Form
Renewable Energy Fund Grant Round V Grant Budget Form
7-1-11
MiNatona or Task
Construction (all milestones)
1
Anticipated
Completion Date
July2013
RE. Fund
Grant Pat
$186.400
Grantee Matching
Funds
Source of Matching
Funds:
Cashlln klndlFederal
GrantelOther State
GmntslOther
TOTALSois
$46.600
PMP&L Grant and cash
be al adysecs red�
souconstruction of library
$233.000
5
$
S
$
S
$
$
$
S
S
S
5
$
$
S
5
$
5
S
S
TOTALS
$186,400
$46,600
Budget Categories:
Directlabor & Senefits
$$
E233,0001
Travel & Per DiemEgwpment
$
$
Matenals & $apples
$
$
$
Contractual Services
Construcbon Services
S 186,4D0
$ 27,767
$ 214,167
Other
$
$
S
TOTALS
$186,400
$ 46,600
S 233,000
Applications should include a separate w-k
eet for each project
phase (Reconnaissance.
Feaslbllity,
eslgn end ennitting,
and Construction)
AEA12-001 Grant Application Page 26 of 32 7/1//2011
r ALASM
Renewable Energy Fund
Grant Application Round 5
Appendix D: Letters of Support
uAt
July 27, aoii
Petersburg Economic Development Coun, it
To Whom It May Concern:
We are both excited and enthused to write a letter of support for installation of a ground
source heat pump in the new Petersburg Public Library facility.
The Petersburg Public Library motto "We Connect You to a World of Ideas" truly embodies
the role this institution plays in our small, rare] community —even when it comes to
renewable energy. While a GSHP system is not a new idea, it certainly is a technology not
commonly seen in our community. But it is a technology that should be considered by
homeowners and businesses to make more efficient use of our limited hydropower
resource.
Installation of a GSHP system in a public building used by the majority of our residents will
be the best type of promotion and advertising for using alternative technologies and energy
conservation. in addition, the cost savings to the community from this system will allow
the city to ensure sufficient funds are available for operation and maintenance of this
important facility.
We encourage you to fund this worthy project
Sincerely,
Liz Cabrera
Director
AEA12-001 Grant Application Page 27 of 32 7/1//2011
ra&wk) ALASM
Renewable Energy Fund
Grant Application Round 5
:1 I .Il c 0ill
TO: City Mmrager
Gc: Library, Public Works, Co . Dev., PEDC
Fmm: Joe Nekwn, Sups, PMP
DaW. 712M11
Re. Hest Pwnp IncerNWe Program
PMP&L has been working with AEA and local conbaclors to develop a Heel
PUMP ItiaeNive ftgrwm 'Me purpose of the program is b erwounW the use
Of heat pumps in lieu of eMc tc boilers or electric furnaces when converting
*Mn fast oft to electric health. The superior efficiency of the heat pumps
makes whe use of our dwindling supply of hydro power, while provhdktg are
owner with significant cost savbigs in operation. The downside of a heat pump
InStailabon is the upfront constnndion cost which can be 2 to 3 times higher than
a conventional system. This then is the basis for the proposed incentive
plagram, which would help with those upfront oosis eiftr with tow interest
roans and/or grand funds. 1 plan to sutrrnd a draft program to the Couried for
=isideraiion filar this year.
The SFAPA rebate to the City, which we should receive in Ocbber, will be
higher than expected this year by approtdrrm* $188,00o. pp be prgMsing dW
these fi m6 be desigireits for this program. This would get the program off b a
healthy shut
Petersburg Municipal Power & t fight
1
AEA12-001 Grant Application Page 28 of 32 7/1 //2011
ALASM Renewable Energy Fund
r4amp
ENERGY AUTHORITY Grant Application Round 5
+ Adyi0, YWt
PMF&L has also been working with the New Library project in exploring the use
Of a ground SCUM Weothetrt * best pump as opposed to oonvvenlimW electric
hagOV, A a` uu*g systems Vp>u v=don ArWVM was compieW by Alaska
Erm9y EngframN LLC which shows sgg dkant monthly and ire cycle CM
savhp. but also idenffs a much higher halation cost A grant request for
AEA Raertembie FrwW Funds it now being prepared for immediate
subndwion. It is my reaommettdalfon 1W approt!tely $45,000 of the
$186.000 program fluid be vb,7gated Tor,,mW ng funds in supportof the Start►
appikcation_ This would be an excellent use of the funds which would provide
long4 mr benefit b the ocmn u* by bm ting mostly costs, and wtdch would
help preserve our valuable hydro genersdon resoumea
AEA12-001 Grant Application Page 29 of 32 7/1//2011
rip ALASMENERGY AUTHORITY
Renewable Energy Fund
Grant Application Round 5
Appendix E: Authorized Signers Form
Grant Documents Authorized Signers
Please clearly print or type all sections of this form.
Community/Grantee Name: City of Petersburg
Regular Election is held: October Date: August 15, 2011
Authorized Grant Signer(s):
Printed Name
Title
Term
Signature
Karl Hagerman
Acting City Manager
8/1/11-
10/3/11
I authorize the above person(s) to sign Grant Documents:
(Highest ranking organization/community/municipal official)
Printed Name
Title
Term
Karl Hagerman
Acting City Manager
8/1/11-
10/3/11
/ rSignature
�—
Grantee Contact Information:
Mailing Address:
PO Box 329, Petersburg, Alaska 99833
Phone Number:
907-772-4452
Fax Number:
907-772-3759
E-mail Address:
ppwdir@ci.petersburg.ak.us
Fiscal Year End:
June 30
Entity Type (For -profit or non-profit status):
Municipal Government
Federal Tax ID #:
92-6000142
Please submit an updated form whenever there is a change to the above information.
Please return the original completed form to:
Alaska Energy Authority
813 W. Northern Lights Blvd.
Anchorage, AK 99503
Attn: Butch White, Grants Administrator
I�-D XMKA
dff:) ENERGY AUTHORITY
AEA12-001 Grant Application Page 30 of 32 7/1//2011
UTHORITY
A GE ALAS KA
Renewable Energy Fund
Grant Application Round 5
Appendix F: Petersburg City Council Resolution #1984: A resolution in support of the City of
Petersburg's application to AEA's Renewable Energy Fund
CITY OF PETERSBURG
Resolution 419B4
A RESOLUTION IN SUPPORT OF THE CRY OF PETERSBURG`S APPLICATION TO ALASKA ENERGY AUTHORITY'S
RENEWABLE ENERGY FUND FOR 8096 FUNDING FOR THE CONSTRUCTION AND COMMISSIONING OF A
GROUND SOURCE HEAT PUMP SYSTEM IN THE NEW PUBLIC LIBRARY
WHEREAS, the City of Petersburg is currently in the design phase for the construction of a new publi "brary
facility; and
WHEREAS, the energy studies and life cycle cost analysis performed during the design phase demonstrated that
significant operational savings could be generated by use of aground source heat pump system rather than an e£ectric
heat system; and
WHEREAS, the Alaska Energy Authority (AEA) has advertised for Renewable Energy Grant Round 5 requests
pursuant to House Bill 152 (Chapter 31 Session Laws of Alaska 2008) with a deadline of August 26, 2011; and
WHEREAS, the City of Petersburg Is an applicant for a grant from the AEA for the cost of ground source heat
pump system; and
WHEREAS, the AEA requires a financial match commitment from grant applicants for 20% of the acceptable
construction costs for renewable energy projects, and
WHEREAS, Petersburg Municipal Power & Light (PMPL) is working with AEA for development of a Heat Pump
Incentive Program which would utilize a portion of the FY2011 SEAPA rebate to provide local grant funds to residents
and businesses for assistance with capital costs associated with installation of high efficiency heat pumps, in lieu of
electrical boilers or furnaces; and
WHERAS, the PMP&L Superintendent has recommended that up to $44,00D from the proposed Heat Pump
Incentive program be designated as a match for the construction costs of heat pump system in the new public Irbrary farlty;
and
WHEREASr the City Council is aware of the requirement of providing matching funds and the obligations and
responsibilities that will be incurred by the City upon acceptance of the grant; and
NOW THEREFORE BE IT RESOLVED THAT the Petersburg City Manager Is hereby authorized to negotiate and
execute any and all documents required for granting and managing funds on behalf of the City of Petersburg in
accordance with all federal state, and local, laws including exist:ngcredk and federal tax obligations.
FURTHER BE R RESOLVED THAT the Petersburg City Manager Is established as the agent for the City
administration of this project and is also authorized to execute subsequent amendments to said grant agreement to
provide for adjustments to the project within the scope of services or tasks, based upon the needs of the project.
Passed and Approved by the Petersburg City Coundl on l 2011.
Awl
Dwyer, Mayor
ATTEST:
Kathy O'Rear, City Clerk
AEA12-001 Grant Application Page 31 of 32 7/1//2011
ALASM
Renewable Energy Fund
Grant Application Round 5
Appendix G: Heating Systems Optimization Analysis, Alaska Energy Engineering, LLC (see following page)
AEA12-001 Grant Application Page 32 of 32 7/1//2011
Prepared for.•
Heating System
Optimization Analysis
Final Report
August 6, 2011
Petersburg Library
Petersburg, Alaska
Prepared by.
MRV Architects Alaska Energy Engineering LLC
and
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
City of Petersburg, Alaska Juneau, Alaska 99801 jim0alaskaenergy.us
[Alaska Energy Engineerinn LLC
EXECUTIVE SUMMARY
This report presents an energy and economic analysis of heating systems for the Petersburg Library in
Petersburg, Alaska. The intent of this analysis is to compare the life cycle cost of the heating systems.
The analysis is performed by Jim Rehfeldt, P.E. of Alaska Energy Engineering LLC as sub consultant
to MRV Architects.
The following heating systems are analyzed:
• Baseline System — Electric Boiler: The heating plant is an electric boiler with numerous stages to
limit electric demand.
• Alternative 1 — Air -source Heat Pumps with Electric Boiler: The heating plant consists of two
air -source heat pumps with capacity to supply the majority of the heating load and an electric
boiler to supplement during cold weather.
• Alternative 2 — Ground Source Heat Pumps with Electric Boiler: The heating plant consists of
ground source heat pumps connected to a vertical loopfield and an electric boiler to supplement
during cold weather.
The life cycle cost analysis determined that the Baseline electric boiler system has the lowest life
cycle cost. The system's lower construction costs are the primary reason for its economic superiority.
Life Cycle Cost Comparison
Heating System Constructlon Maintenance Energy Total LCC
Electric Boiler Heating System
Air Source Heat Pump - Base Case
Air Source Heat Pump - High Case
Air Source Heat Pump - Low Case
Ground Source Heat Pump - Two 3-ton Units
$96,000
$6,000
$198,000
$300,000
$278,000
$69,000
$92,000
$439,000
$278,000
$69,000
$85,000
$432,000
$278,000
$69,000
$102,000
$449,000
$318,000
$21,000
$87,000
$426,000
Ground Source Heat Pump - One 10-ton Unit $351,000 ($11,000) $72,000 $412,000
The heat pump systems have much lower energy costs due to their higher efficiency. This is an
important consideration as they make efficient use of valuable hydroelectric resources. But the heat
pump does not generate sufficient energy savings to justify the investment. This is due to the
relatively low heating load of the building.
Of the heat pump alternatives, the ground source heat pump system is a proven technology with
known efficiency. The main unknown is the thermal conductivity of the site and the availability of
local contractors to install a vertical bore loopfield.
Air source heat pumps are also a proven technology, but their efficiency is unknown in our climate.
The amount of defrost needed to keep the outdoor coil frost -free is an important factor in system
efficiency and there is no monitoring data available. While it is likely that Southeast Alaska's colder
and more humid climate will increase defrost requirements when compared to other climates,
valuable test data is needed to demonstrate the performance of the systems and provide accuracy to
any economic analysis of the system.
Petersburg Library 1 Heating System Optimization
Alaska Energy Engineering LLC
This report presents an energy and economic analysis of heating systems for the Petersburg Library in
Petersburg, Alaska. The intent of this analysis is to compare the life cycle cost of the heating systems.
The analysis is performed by Jim Rehfeldt, P.E. of Alaska Energy Engineering LLC as sub consultant
to MRV Architects.
Heating System Options
The heating systems differ in the type of heating equipment. All heat the building with a hydronic
distribution system with in -floor radiant heating.
• Baseline System — Electric Boiler: The heating plant is an electric boiler with numerous stages to
limit electric demand.
• Alternative 1 — Air -source Heat Pumps with Electric Boiler: The heating plant consists of two
air -source heat pumps with capacity to supply the majority of the heating load and an electric
boiler to supplement during cold weather.
• Alternative 2 — Ground Source Heat Pumps with Electric Boiler: The heating plant consists of
ground source heat pumps connected to a vertical loopfield and an electric boiler to supplement
during cold weather.
Methodology
The heating systems are evaluated using life cycle cost analysis which compares construction,
maintenance, and energy costs over a 25-year period.
Economic Factors
The following economic factors are used in the analysis:
• Nominal Interest Rate: The nominal rate of return on an investment is set at 5%.
• Inflation Rate: The average inflationary change in prices over time is set at 2%.
• Economic Period: Set at a 25-year economic period with construction beginning in 2012.
Electricity
Electricity is the heating energy source for all of the heating options. While fuel oil has historically
been used to heat the majority of buildings in Southeast Alaska, the current trend toward electric heat
is driven by competitive electric rates due to 6% fuel oil inflation since 1992, electricity price stability
due to surplus hydroelectric power, and sustainability.
Electricity will be supplied and billed under Petersburg Municipal Power and Light's (PMPL) large
commercial rate, which is applicable to buildings with over 50 kW of installed demand. The rate
charges for both electrical consumption (kWh) and peak electric demand (kW). Electrical
consumption is the amount of energy consumed and electric demand is the rate of consumption.
PULP determines the billing demand by averaging demand over a continuously sliding fifteen minute
window. The highest fifteen minute average during the billing period determines the peak demand.
Petersburg Library 2 Heating System Optimization
Alaska Energy Engineering_LLC
The following table lists the electric charges:
PMLP Large Commercial Rate
Component Charge
Energy Charge
First 30,000 kWh
10.80 per kWh
Next 30,000 kWh
10.60 per kWh
Demand Charge
$3.10 per kW
Service Charge $28.00 per month
The monthly demand charge is derived from the peak demand over the billing period, with a
minimum charge based on 50 kW or 75% of the peak demand of the previous 11 months, whichever
is greater. It is important to understand how this rate structure affects the electric costs of the
electrically heated library. The library demand will exceed 50 kW for three months; December
through February. Yet the rate requires a minimum demand charge based on 50 kW per month for the
entire year.
For the electric boiler heating system, the demand peaks in January at 81 kW, which sets the
minimum demand charge at 81 kW x 75% = 61 kW for the months of March through November. For
heat pump systems, the demand peaks at 50 kW in January, so the minimum demand charge of 50
kW is in effect the entire year.
The energy analysis determined that the library will have an effective cost per kWh under the large
commercial rate of 12.2¢ per kWh. PMPL also has a small commercial rate for services less than 50
kW. If the building was fuel oil heated with an electric service less than 50 kW, the effective cost
would be —9¢ per kWh. While the 25% reduction in electric costs is attractive, current fuel oil
inflation of 6% per year does not offer an economic incentive to consider fuel oil heating.
The following table summarizes the energy and economic factors used in the analysis.
Factor
Summary of Economic and Energy Factors
Rate or Cost Factor
Rate or Cost
Nominal Discount Rate 5.0% Electricity 10.5-11.50 per kWh
General Inflation Rate 2% Electricity Inflation 1%
Petersburg Library 3 Heating System Optimization
�[ Alaska Energy Engineering LLC
LIFE CYCLE COST ANALYSIS
Heating Systems
Load Profile
A computer model is used to evaluate heating loads and energy consumption. The library has a design
heating load of 180 MBH (Thousand Btu per hour). The following chart shows the annual heating
load profile of the building.
4,000
3,000
0
x
2,000
3
C
C
Q
1,000
0 0-25 26-50 51-75 76-100 101-125 126-150 151-175 176-200
Heating Load, MBH
While the building has a design heating load of 180 MBH, the actual heating load rarely exceeds 100
MBH and is much lower the majority of the year. The following factors account for this:
• The highly insulated envelope causes ventilation loads to dominate the heating requirement. Yet,
ventilation loads only occur 30% of the year when the building is occupied by patrons.
• Internal heat gains from lights, equipment, and people reduce the heating load when the building
is occupied and offset a significant portion of the ventilation loads. The highly insulated envelope
maximizes the heating benefit of the internal gain.
• The thermal mass of the radiant in -floor heating system offers little opportunity to setback the
temperature during unoccupied periods. This negates the benefit of night temperature setback but
also eliminates the heating load spikes that typically occur during morning warm-up.
The load profile promotes the installation of a part -load heat pump system that relies on the electric
boiler to supplement during cold weather. This will reduce the investment in the heat pump(s) while
creating greater utilization of the equipment.
Baseline System — Electric Boiler
The proposed heating plant is an electric boiler and two heating pumps operating in a lead/standby
configuration. The boiler has a capacity of 60 kW which is the design heating load for the building.
The boiler will be supplied with demand limiting controls.
Developing and commissioning an optimal control scheme that integrates with a demand limiting
strategy is essential to minimize demand during the peak heating season, which effectively sets the
demand charge for the entire year.
Petersburg Library 4 Heating System Optimization
Alaska Energy Engineering LLC
Alternative 1 — Air Source Heat Pumps with Electric Boiler
The proposed heating plant consists of two air -source heat pumps, each with a capacity of 28 MBH
with an electric boiler to supplement during cold weather. The heat pumps consist of an indoor
compressor unit and an exterior heat transfer coil that extracts heat from the outside air. The outdoor
unit will be installed under a weather cover to protect it from rain and snow. The two heat pumps and
the electric boiler will operate in a lead/lag/standby configuration to maintain a storage tank of
heating water.
An air source heat pump works by extracting heat from the outside air. During the majority of our
heating hours, the heat pump draws the air temperature down below the dew point, which causes
moisture to condense out of the air stream. During cold weather, the moisture forms frost on the
outside coil. The heat pump must divert heat to defrost the outside coil at regular intervals. The
amount of defrost operation has a direct effect on system efficiency. This is addressed in the energy
analysis section of the report.
There is increasing interest in using air -source heat pumps (ASHPs) in Southeast Alaska. The main
benefit over a ground source heat pump is lower installed cost. However, the air -source units have
lower efficiency and losses due to defrost, which are not easily quantified. Current models are capable
of supplying heat throughout the winter, which was a major impediment in the past.
Alternative 2 — Ground Source Heat Pump with Electric Boiler
The heating plant will consists of ground source heat pumps (GSHP) and an electric boiler. The heat
pump is coupled to the ground with vertical 6" diameter boreholes, drilled 250-350' deep, into which
is placed a %" HDPE pipe loop and the bore backfilled with thermal conductive grout. The loopfield
will be located under the parking lot.
The analysis looks at two configurations. GSHP Option 1 consists of two 3-ton units (lead/lag) with
an electric boiler (standby) to supplement during cold weather. The heat pumps are connected to a
loopfield consisting of four vertical bore holes, each 255' deep.
GSHP Option 2 consists of one 10-ton ground source heat pump (lead) with an electric boiler (lag) to
supplement during cold weather. The heat pump is connected to a loopfield consisting of six vertical
bore holes, each 315' deep. The loopfield will be located under the parking lot.
The heat pumps and the electric boiler will operate in a lead/lag/standby configuration to maintain a
storage tank of heating water. The hydronic heating system circulates the heated water to the in -floor
radiant heating system to heat the building. The efficiency of the system depends upon the deep
ground temperature, which is likely to be —43°F.
The size of the loopfield depends upon the thermal conductivity and thermal diffusivity of the
subsurface. This information is not currently known, so conservative, assumed values are used in the
analysis. A thermal conductivity test, which requires drilling and installing a production borehole, is
required to optimally size the system. This test is ideally performed prior to design but can be
incorporated into the construction contract using unit prices to adjust the loopfield size once the
thermal values are known.
Petersburg Library 5 Heating System Optimization
f Alaska Energy EngineerincLLLC
Construction Costs
Summary
The following table summarizes the construction costs of each option.
Construction Costs
ConetrucUon Scope Cost Estimate
Baseline — Electric Boiler
Loopfield
$ 0
Heating Plant
55,000
Electrical
2,000
General Conditions
40,000
Total
$ 97,000
Alternative 1— Air Source Heat Pum
Loopfield
$ 0
Heating Plant
149,000
Electrical
8,000
General Conditions
122,000
Total
$ 279,000
Alternative 2 — Ground Source Heat Pumo Oation 1 (Two 3-ton Units
Loopfield $ 43,000
Heating Plant 127,000
Electrical 9,000
General Conditions 139,000
Total $ 318,000
Alternative 2 — Ground Source Heat PUmD ODtion 2 (One 10-ton Unit
Loopfield
$ 78,000
Heating Plant
111,000
Electrical
9,000
General Conditions
153,000
Total
$ 351,000
The heat pump alternatives require a greater investment than the baseline system. As such, they rely
on energy savings to justify the higher investment.
Petersburg Library 6 Heating System Optimization
Alaska Energy Engineering LLC
Maintenance and Replacement Costs
Maintenance
The City of Petersburg will maintain the mechanical systems, except for contracted maintenance of
the heat pump refrigeration systems. Maintenance rates are based on an in-house labor rate of $36 per
hour and a contracted labor rate of $100 per hour.
The electric boiler will require minimal maintenance to replace heating elements and controllers, if
they fail. The heat pumps will require annual maintenance of the refrigeration system and the
controls. The air -source outdoor units will require annual cleaning of the heat transfer surfaces.
Pumps require periodic maintenance to repair or replace them.
Replacement
The heat pumps typically reach their expected service life in 18 years. For the air- source units, a 14
life is used in recognition that salt laden air flowing through the unit is likely to reduce its life. The
loopfield has a 50+ year service life. The life cycle cost analysis includes a credit for the significant
remaining value of the loopfield in Year 25.
The following table provides a comparison of annual costs for each system. The heat pump systems
have higher maintenance costs. The salvage value of the loopfield in Year 25 significantly reduces the
paper value of these costs.
Maintenance and Replacement Costs
Option Annual Cost t Life Cycle Coate
Baseline - Electric Boiler $400 $6,200
Alternative 1- Air Source Heat Pump $2,500 $68,700
Alternative 2 - Ground Source Heat Pump Option 1 (Two 3-ton units) $2,100 $20,700
Alternative 2 - Ground Source Heat Pump Option 2 (One 10-ton unit) $1,200 ($11,000)
1. Does not include replacement costs and salvage value.
2. Includes replacement costs and salvage value.
Energy Consumption and Costs
Baseline - Electric Boiler
The electric boiler converts electricity to hydronic heat at an efficiency of 100%. The analysis
assumes jacket losses of 1% of the boiler capacity, which equates to 5% of the heating load. As such,
the electric boiler has an overall efficiency of 95%.
Alternative 1 - Air Source Heat Pump
Instantaneous heat pump efficiency is typically in the range of 250% -350%. A heat pump with an
efficiency of 300% is said to have a coefficient of performance (COP) of 3.0. This means it produces
3 Btus of heat for every Btu of purchased electricity. One reason for the interest in heat pumps is that
they are more efficient at utilizing hydroelectric resources.
While present heat pump technology allows for relatively efficient operation during cold weather, the
majority of the heating load in Southeast Alaska buildings occurs during temperate conditions when
outside temperatures are between 25-40°F and humidity is high. These are optimal conditions for
forming frost.
Petersburg Library 7 Hearing System Optimization
Alaska Energy Engineering LLC
As outside temperature drops, the building heating load increases but the heat pump capacity and
efficiency both drop. The following chart shows that the heat pump capacity and efficiency drops by
more than 50% from 68°F to 5°F. It also shows how defrost operation causes the capacity and COP to
drop when outside temperatures are below 45°F.
! Air Source Heat Pump Performance
80 8
70
7
60
6
50
5
m
a
ao
�
4 O
U
30
3
20
2
MBH -COP
10
1
o O
5 19 25 36 45 54 59 68
Outside Temperature, V
The capacity and efficiency of a heat pump depends upon the temperature difference between the
source and the load. The higher the "lift" in temperature, the harder the equipment works, lowering
efficiency. The analysis assumed that the heating system will require 1050F heating water to deliver
sufficient heat to the radiant floor.
The air source heat pumps have losses due to heat loss from the outdoor unit and from defrost
operation. The manufacturer's data indicates that these losses reduce capacity by 18% and COP by
15%. It is assuring that the manufacturer acknowledge these losses as many manufacturers do not.
The risk in considering an air source heat pump is that there is a no data on the actual seasonal
efficiency in Southeast Alaska's humid climate. There are a number of successful installations and
their use is increasing. However, just as using good ingredients and careful preparation does not
always ensure that dinner tastes good, the lack of actual performance data is a serious void in touting
the success of the systems.
The author monitored the performance of a residential air-to-air heat pump installed in Juneau for an
entire year. The equipment operated well and kept the home warm, even at temperatures down to
-17F°. Defrost occurred regularly and did not appear to be excessive. However, the seasonal
efficiency of the equipment was found to be 33% lower than the manufacturer's data. This one case
cannot be applied to all installations, but it does raise concerns that our climate decreases the
efficiency of the equipment.
To account for the greater defrost requirements that is likely to occur in our climate, the energy
analysis assumes that the baseline heat pump performance will be 15% below the manufacturer's
data. Since this assumption cannot be fully supported, a sensitivity analysis is included that evaluates
heat pump performance at a high case and low case of 5% and 25% below the manufacturer's data,
respectively.
Petersburg Library 8 Heating System Optimization
Alaska Ea2My Engineering LLC
The analysis determined that the air source heat pumps will supply 89% of the heating load with the
electric boiler supplementing the remaining load. The following table shows the COP of the heat
pump and the combined system for the baseline, high, and low cases.
Alr Source Heat Pump Performance
Case Heat Pump Load Heat Pump COP System COP
Low - COP 5% below Manufacturers Data 89% 2.1 1.9
Baseline - COP 15% below Manufacturers Data 89% 2.4 2.1
High - COP 5% below Manufacturers Data 89% 2.7 2.3
1. Combined efficiency of the heat pump and electric boiler.
Alternative 2 - Ground Source Heat Pump
A ground source heat pump coupled to a vertical loopfield "lifts" heat from the constant deep ground
temperature, which is assumed to be 43°F. The analysis assumes that the loopfield return temperature
from the ground will be 30°F. The manufacturer's data indicates that the heat pump can "lift" from
30°F to 1050F at a COP of 3.5.
While there is little actual performance data to verify this efficiency, the author has monitored a few
ground source heat pumps and found actual performance to be 10-20% below published values. As
such, and in fairness to the assumptions used for the air source heat pump, the energy analysis is
based on heat pump COP that is 15% below the manufacturer's data. This results in a COP of 3.0.
The following table shows the energy performance of the two GSHP configurations.
Ground Source Heat Pump Performance
Option Heat Pump Load Heat Pump COP 1 System COP 1, 2
Option 1- Two 3-ton Heat Pumps 84% 2.8 2.2
Option 2 - One 10-ton Heat Pump 98% 2.7 2.6
1. Includes loopfield pumping energy
2. Combined efficiency of the heat pump and electric boiler.
Option 1 has a system COP similar to the air source heat pumps because the electric boiler supplies a
higher percentage of the load. Option 2 has a system COP higher than the air source alternative
because the heat pump supplies a greater percentage of the load and the heat pump is more efficient.
Petersburg Library 9 Heating System Optimization
Alaska Energy Engineering LLC
Energy Analysis Summary
The analysis determined that the effective cost of electricity for the building averaged 12.20 per kWh.
The energy consumption and cost of each option are shown in the following table.
Energy Consumption and Costs
Baseline - Electric Boiler
Alternative 1- Air Source Heat Pump (Base Case)
Alternative 1- Air Source Heat Pump (High Case)
Altemative 1- Air Source Heat Pump (Low Case)
Alternative 2 - Ground Source Heat Pump (Option 1)
Purchased kWh
Annual Cost
Life Cycle Cost
104,000
$12,600
$198,000
48,000
$5,900
$92,000
44,000
$5,400
$84,000
53,000
$6,500
$102,000
46,000
$5,600
$87,000
Alternative 2 - Ground Source Heat Pump (Option 2) 38,000 $4,600 $72,000
The heat pump systems have significantly lower energy costs than the electric boiler system. The
GSHP system with the 10-ton heat pump has the lowest costs because the system has the highest
overall efficiency.
Results
The life cycle cost analysis determined that the Baseline electric boiler system has the lowest life
cycle cost. The system's lower construction costs are the primary reason for its economic superiority.
Life Cycle Cost Comparison
Heating System
Construcdon
Maintenance
Energy
Total LCC
Electric Boiler Heating System
$96,000
$6,000
$198,000
$300,000
Air Source Heat Pump - Base Case
$278,000
$69,000
$92,000
$439,000
Air Source Heat Pump - High Case
$278,000
$69,000
$85,000
$432,000
Air Source Heat Pump - Low Case
$278,000
$69,000
$102,000
$449,000
Ground Source Heat Pump - Two 3-ton Units
$318,000
$21,000
$87,000
$426,000
Ground Source Heat Pump - One 10-ton Unit
$351,000
($11,000)
$72,000
$412,000
Of the heat pump alternatives, the ground source system with a 10-ton unit has the highest installed
costs, but generates the greatest energy savings to offset the majority of the upfront costs. The main
reason for the lower energy costs is the higher efficiency of the system. However, the result indicates
that the building does not have a large enough heating load to justify the investment. This finding is
consistent with other heat pump analyses performed by the author; considerable energy
consumption -due to high ventilation requirements of long operating hours -is needed to offset the
investment in the heat pump system.
Petersburg Library 10
Heating System Optimization
Alaska Energy Engineering LLC
The life cycle costs of the air source systems are relatively tightly grouped, which indicates that that
the modest variations in COP did not make it more competitive with other options. While this system
is desirable due its lower installed costs and improved efficiency, the higher investment and lack of
known performance data increases the risk of installing the system. Even though it did not compete
well for this project, there is likely to be a market and need for air source heat pump systems,
especially as they continue to make gains in efficiency.
SUMMARY
The analysis determined that the baseline electric boiler system has the lowest life cycle cost. This
system has the lowest installed and operating costs which more than offset it having the highest
energy costs.
The ground source heat pump systems have the lowest energy costs. While this system makes more
efficient use of a valuable hydroelectric resource to heat the building, the energy savings cannot offset
the higher capital costs.
The air source heat pump systems have the highest life cycle costs due to the combination of higher
construction and maintenance costs. The main impediment to installing the systems is the uncertainty
of the actual seasonal efficiency. It is likely that as more systems are installed and some monitoring
occurs, that these uncertainties will be minimized, the technology with continue to advance, and the
systems will gain a wider market share.
These results appear to be reasonably based on a comparison with other heat pump analyses. The
Library has a relatively low heating requirement which reduces its ability to "generate" sufficient
energy savings to offset the higher installed cost of a heat pump system. Buildings with higher energy
demands —buildings that are continuously occupied and/or have high ventilation rates, swimming
pools, hospitals, etc. —have the greatest potential to generate significant energy savings to offset the
higher costs.
Petersburg Library 11 Heating System Optimization
Alaska Energy Engineering LLC
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@earlhlink.net
Petersburg Library
Electric Boiler Heating System
Life Cycle Cost Analysis
March 16, 2011
Basis
25 Study Period (years) 2.0% General Inflation
5.0% Nominal Discount Rate 6.0% Fuel Inflation
2.9% Real Discount Rate 1.0% Electricity Inflation
Construction Costs
Year
Qty
Unit
Base Cost
Year 0 Cost
Electric Boiler, 60kW
0
1
ea
$15,000.00
$15,000
Startup and commisisoning
0
1
Is
$1,500.00
$1,500
Hydronic heating piping (within boiler room)
0
1
Is
$9,000.00
$9,000
Heating pumps
0
2
ea
$2,500.00
$5,000
Hydronic specialities (within boiler room)
0
1
Is
$6,000.00
$6,000
Electrical
0
Boiler
0
1
ea
$1,500.00
$1,500
Pumps
0
1
ea
$750.00
$750
DDC controls
0
10
pts
$1,800.00
$18,000
Project Costs
Estimating contingency
0
10%
$5,675
Overhead & profit
0
30%
$18,728
Design fees
0
10%
$8,115.25
Project management
0
8%
$7,141
Total Construction Costal $96,400
Annual Costs
Years
Qty
Unit
Base Cost
Present Value
Electric boiler
1 - 25
2
hrs
$36.00
$1,226
Parts
1 - 25
1
LS
$150.00
$2,554
Pumps
1 - 25
4
hrs
$36.00
$2,452
Total Annual Costs
$61200
Energy Costs
Years
Qty
Unit
Base Cost
Present Value
Fuel Oil
1 - 25
$0
Electricity
1 - 25
104,100
kWh
$0.121
$197,604
Total Energy Costs
$197,600
Present Worth $300,200
Page 1
Alaska Energy Engineering LLC
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@earthlink.net
Petersburg Library
Air Source Heat Pump - Base Case
Basis
Life Cycle Cost Analysis
March 16, 2011
25
Study Period (years)
2.0%
General Inflation
5.0%
Nominal Discount Rate
6.0%
Fuel Inflation
2.9%
Real Discount Rate
1.0%
Electricity Inflation
Construction Costs
Year
Qty
Unit
Base Cost
Year 0 Cost
Electric Boiler, 60kW, startup and commisisoning
0
1
ea
$16,500.00
$16,500
Hydronic heating piping (in boiler room)
0
1
Is
$12,000.00
$12,000
Boiler pump
0
1
ea
$1,000.00
$1,000
Hydronic specialities (within boiler room)
0
1
Is
$6,000.00
$6,000
Heat pumps, 2 @ 28 MBH
0
2
ea
$22,500.00
$45,000
Refrigerant piping
0
1
Is
$4,000.00
$4,000
Startup and Commissioning
0
2
ea
$1,500.00
$3,000
Exterior pad and snow protection
0
1
ea
$5,000.00
$5,000
Heating tank,150 gallons
0
1
ea
$2,500.00
$2,500
Boiler electrical
0
1
ea
$1,500.00
$1,500
Heat pump electrical
0
4
ea
$1,000.00
$4,000
Pump electrical
0
3
ea
$750.00
$2,250
DOC controls
0
30
as
$1,800.00
$54,000
Project Costs
Estimating contingency
0
15%
$23,513
Overhead & profit
0
30%
$54,079
Design fees
0
10%
$23,434
Project management
0
8%
$20,622
Total Construction Costs $278,400
Annual Costs
Years
Qty
Unit
Base Cost
I Present Value
Electric boiler
1 - 25
1
hrs
$36.00
$613
Parts
1 - 25
1
LS
$75.00
$1,277
Pumps
1 - 25
10
hrs
$36.00
$6,130
Heat pump, in-house
1 - 25
24
hrs
$36.00
$14,711
Heat pump, contracted
1 - 25
12
hrs
$100.00
$20,432
Heat pump replacement
14 14
2
ea
$22,500.00
$29,132
Heat pump salvage
25 - 25
1 -2
1 ea
1 $3,857.14
($3 63"
Total Annual Costs
$68,700
EneW Costs Years Qty Unit Base Cost
Present Value
Electricity
1 - 25
48,203
kWh
$0.122
$92,255
Total Energy Costel
$92,300
Present Worth $439,400
Page 2
Alaska Energy Engineering LLC
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@earthlink.net
Petersburg Library
Air Source Heat Pump - High Case
Life Cycle Cost Analysis
March 16, 2011
Basis
25 Study Period (years) 2.0% General Inflation
5.0% Nominal Discount Rate 6.0% Fuel Inflation
2.9% Real Discount Rate 1.0% Electricity Inflation
Construction Costs
Year
Qty
Unit
Base Cost
Year 0 Cost
Electric Boiler, 60kW, startup and commisisoning
0
1
ea
$16,500.00
$16,500
Hydronic heating piping (in boiler room)
0
1
Is
$12,000.00
$12,000
Boiler pump
0
1
ea
$1,000.00
$1,000
Hydronic specialities (within boiler room)
0
1
Is
$6,000.00
$6,000
Heat pumps, 2 @ 28 MBH
0
2
as
$22,500.00
$45,000
Refrigerant piping
0
1
Is
$4,000.00
$4,000
Startup and Commissioning
0
2
ea
$1,500.00
$3,000
Exterior pad and snow protection
0
1
as
$5,000.00
$5,000
Heating tank,150 gallons
0
1
ea
$2,500.00
$2,500
Boiler electrical
0
1
ea
$1,500.00
$1,500
Heat pump electrical
0
4
ea
$1,000.00
$4,000
Pump electrical
0
3
ea
$750.00
$2,250
DDC controls
0
30
ea
$1,800.00
$54,000
Project Costs
Estimating contingency
0
15%
$23,513
Overhead & profit
0
30%
$54,079
Design fees
0
10%
$23,434
Project management
0
8%
$20,622
Total Construction Costal $278,400
Annual Costs
Years
Qty
Unit
Base Cost
I Present Value
Electric boiler
1 - 25
1
hrs
$36.00
$613
Parts
1 - 25
1
LS
$75.00
$1,277
Pumps
1 - 25
10
hrs
$36.00
$6,130
Heat pump, in-house
1 - 25
24
hrs
$36.00
$14,711
Heat pump, contracted
1 - 25
12
hrs
$100.00
$20,432
Heat pump replacement
14 - 14
2
ea
$22,500.00
$29,132
Heat pump salvage
25 25
1 -2
1 as
1 $3,857.14
43.631)
Total Annual Costs
$68,700
Energy Costs Years Qty Unit I Base Cost
Present Value
Electricity
1 - 25
44,331
kWh
$0.122 $84.844
Total Energy Costs $84,800
Present Worth $431,900
Page 3
Alaska Energy Engineering LLC
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@earthlink.net
Petersburg Library
Air Source Heat Pump - Low Case
Basis
Life Cycle Cost Analysis
March 16, 2011
25
Study Period (years)
2.0%
General Inflation
5.0%
Nominal Discount Rate
6.0%
Fuel Inflation
2.9%
Real Discount Rate
1.0%
Electricity Inflation
Construction Costs
Year
Qty
Unit
Base Cost
Year 0 Cost
Electric Boiler, 60kW, startup and commisisoning
0
1
ea
$16,500.00
$16,500
Hydronic heating piping (in boiler room)
0
1
Is
$12,000.00
$12,000
Boiler pump
0
1
ea
$1,000.00
$1,000
Hydronic specialities (within boiler room)
0
1
Is
$6,000.00
$6,000
Heat pumps, 2 @ 28 MBH
0
2
ea
$22,500.00
$45,000
Refrigerant piping
0
1
Is
$4,000.00
$4,000
Startup and Commissioning
0
2
ea
$1,500.00
$3,000
Exterior pad and snow protection
0
1
ea
$5,000.00
$5,000
Heating tank,150 gallons
0
1
ea
$2,500.00
$2,500
Boiler electrical
0
1
ea
$1,500.00
$1,500
Heat pump electrical
0
4
ea
$1,000.00
$4,000
Pump electrical
0
3
ea
$750.00
$2,250
DOC controls
0
30
ea
$1,800.00
$54,000
Project Costs
Estimating contingency
0
15%
$23,513
Overhead & profit
0
30%
$54,079
Design fees
0
10%
$23,434
Project management
0
8%
$20,622
Total Constructlon Costsl $278,400
Annual Costs
Years
City
Unit
Base Cost I
Present Value
Electric boiler
1 - 25
1
hrs
$36.00
$613
Parts
1 - 25
1
LS
$75.00
$1,277
Pumps
1 - 25
10
hrs
$36.00
$6,130
Heat pump, in-house
1 - 25
24
hrs
$36.00
$14,711
Heat pump, contracted
1 - 25
12
hrs
$100.00
$20,432
Heat pump replacement
14 - 14
2
ea
$22,500.00
$29,132
Heat pump salvage
25 25 1
-2 1
ea
1 $3,857.14
$3.631)
Total Annual Costs
$88,700
Energy Costs
Years
City
Unit
Base Cost
Present Value
Electricity
1 - 25
53,091
kWh
$0.122
$101,611
Total Energy Costs
$101,600
Present Worth
$448,700
Page 4
Alaska Energy Engineering LLC
25200 Ama4a Harbor Road TeVFax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@earthlink.net
Petersburg Library
Ground Source Heat Pump - Two 34on Units
Basis
Life Cycle Cost Analysis
March 16, 2011
25
Study Period (years)
2.0%
General Inflation
5.0%
Nominal Discount Rate
6.0%
Fuel Inflation
2.9%
Real Discount Rate
1.0%
Electricity Inflation
Construction Costs
Year
Qty
Unit
Base Cost
Year 0 Cost
Electric Boiler, 45kW, w/startup and commissioning
0
1
as
$13,500.00
$13,500
Hydronic heating piping (in boiler room)
0
1
Is
$9,000.00
$9,000
Boiler pump
0
1
as
$1,000.00
$1,000
Heating pumps
0
2
ea
$2,500.00
$5,000
Hydronic specialities (within boiler room)
0
1
Is
$6,000.00
$6,000
Loopfield
0
1,020
Inft
$42.00
$42,840
Heat pumps, nominal 3-ton
0
2
as
$8,000.00
$16,000
Source piping and pump,1/2 HP
0
2
Is
$4,500.00
$9,000
Load piping and pumps,1/4 HP
0
2
Is
$2,500.00
$5,000
Storage tank,150 gallons
0
1
ea
$2,500.00
$2,500
Thermal conductivity test
0
1
Is
$10,000.00
$10,000
Boiler electrical
0
1
as
$1,500.00
$1,500
Heat pump electrical
0
2
ea
$1,000.00
$2,000
Pump electrical
0
7
ea
$750.00
$5,250
Controls
0
28
pts
$1,800.00
$50,400
Project Costs
Estimating contingency
0
15%
$26,849
Overhead & profit
0
30%
$61,752
Design fees
0
10%
$26,759
Project management
0
8%
$23,548
Total Construction Costal $317,900
Annual Costs
Years
Qty
Unit
Base Cost
Present Value
Electric boiler
1 - 25
1
LS
$135.00
$2,299
Heat pump, in-house
1 - 25
8
hrs
$36.00
$4,904
Heat pump, contracted
1 - 25
8
hrs
$100.00
$13,622
Heat pump replacement
18 - 18
2
as
$8,000.00
$9.224
Heat pump salvage
25 - 25
-2
ea
$3,666.67
($3,451)
Loopfield salvage
25 - 25
-1
ea
$42,840.00
($20,162)
Pumps
1 - 25
14
hrs
$60.00
$14,303
Total Annual Costs
$20,700
Energy Costs Years Qty Unit Base Cost
Present Value
Electricity
1 - 25
45,602
kWh
$0.122
$87,278
Total Energy Costal
$87,300
Present Worth $425,900
Page 5
Alaska Energy Engineering LLC
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@earthlink.net
Petersburg Library
Ground Source Heat Pump - One 104on Unit
Basis
Life Cycle Cost Analysis
March 16, 2011
25 Study Period (years) 2.0% General Inflation
5.0% Nominal Discount Rate 6.0% Fuel Inflation
2.9% Real Discount Rate 1.0% Electricity Inflation
Construction Costs Year City Unit Base Cost Year 0 Cost
Electric Boiler, 60kW, startup, commissioning
0
1 ea
$16,500.00
$16,500
Hydronic heating piping (in boiler room)
0
1 Is
$9,000.00
$9,000
Boiler pump
0
1 ea
$1,000.00
$1,000
Heating pumps
0
2 ea
$2,500.00
$5,000
Hydronic specialities (within boiler room)
0
1 Is
$6,000.00
$6,000
Loopfield
0
1,864 Inft
$42.00
$78,288
Heat pump, nominal 10-tan
0
1 ea
$16,000.00
$16,000
Source piping and pump,1.5 HP
0
1 Is
$5,500.00
$5,500
Load piping and pump,1/2 HP
0
1 Is
$3,000.00
$3,000
Storage tank,150 gallons
0
1 ea
$2,500.00
$2,500
Thermal conductivity test
0
1 Is
$10,000.00
$10,000
Boiler electrical
0
1 ea
$1,500.00
$1,500
Heat pump electrical
0
2 ea
$1,000.00
$2,000
Pump electrical
0
7 ea
$750.00
$5,250
Controls
0
20 Is
$1,800.00
$36,000
Project Costs
Estimating contingency
0
15%
$29,631
Overhead & profit
0
30%
$68,151
Design fees
0
10%
$29,532
Project management
0
8%
$25,988
Total Construction Costs
$350,800
Annual Costs Years City Unit Base Cost
Present Value
Electric boiler
1 - 25
1
hrs
$36.00
$613
Heat pump, in-house
1 - 25
4
hrs
$36.00
$2,452
Heat pump, contracted
1 - 25
4
hrs
$100.00
$6,811
Heat pump replacement
18 - 18
1
ea
$16,000.00
$9,224
Heat pump salvage
25 25
-1
ea
$7,333.33
($3.451)
Loopfield salvage
25 - 25
-1
ea
$78,288.00
($36.845)
Pumps
1 - 25
10
hrs
$60.00
$10,216
Total Annual Costs
($11,000)
Energy Costs Years City Unit I Base Cost
Present Value
Electricity
1 - 25
37,568
kWh
$0.122
$71,901
Total Energy Costs $71,900
Present Wort $411,700
Page 6