HomeMy WebLinkAboutGrant Application 4 Centennial Hall
Renewable Energy Fund Round IV
Grant Application
AEA 11-005 Application Page 1 of 14 7/21/2010
Application Forms and Instructions
The following forms and instructions are provided to assist you in preparing your application for
a Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA)
and the forms are available online at: http://www.akenergyauthority.org/RE_Fund-IV.html
Grant Application
Form
GrantApp4.doc Application form in MS Word that includes an outline
of information required to submit a complete
application. Applicants should use the form to assure
all information is provided and attach additional
information as required.
Application Cost
Worksheet
Costworksheet4.doc Summary of Cost information that should be
addressed by applicants in preparing their application.
Grant Budget Form GrantBudget4.doc A detailed grant budget that includes a breakdown of
costs by milestone and a summary of funds available
and requested to complete the work for which funds
are being requested.
Grant Budget Form
Instructions
GrantBudgetInstructions4.pdf Instructions for completing the above grant budget
form.
If you are applying for grants for more than one project, provide separate application
forms for each project.
Multiple phases for the same project may be submitted as one application.
If you are applying for grant funding for more than one phase of a project, provide
milestones and grant budget for completion of each phase.
If some work has already been completed on your project and you are requesting
funding for an advanced phase, submit information sufficient to demonstrate that the
preceding phases are satisfied and funding for an advanced phase is warranted.
If you have additional information or reports you would like the Authority to consider in
reviewing your application, either provide an electronic version of the document with
your submission or reference a web link where it can be downloaded or reviewed.
REMINDER:
Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials
submitted to the Authority may be subject to disclosure requirements under the act if no
statutory exemptions apply.
All applications received will be posted on the Authority web site after final
recommendations are made to the legislature.
In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or
proprietary company data be kept confidential subject to review and approval by the
Authority. If you want information is to be kept confidential the applicant must:
o Request the information be kept confidential.
o Clearly identify the information that is the trade secret or proprietary in their
application.
o Receive concurrence from the Authority that the information will be kept
confidential. If the Authority determines it is not confidential it will be treated as a
public record in accordance with AS 40.25 or returned to the applicant upon
request.
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Grant Application Round IV
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SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
City and Borough of Sitka
Type of Entity:
Borough Government
Mailing Address
100 Lincoln Street Sitka, AK 99835
Physical Address
Same
Telephone
907-747-1808
Fax
907-747-7403
Email
sara@cityofsitka.com
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Stephen L. Weatherman, P.E.
Title
Municipal Engineer
Mailing Address
100 Lincoln Street Sitka, AK 99835
Telephone
907-747-4042
Fax
907-747-3158
Email
Stephen@cityofsitka.com
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
X A local government, or
A governmental entity (which includes tribal councils and housing authorities);
Yes
or
No
1.2.2. Attached to this application is formal approval and endorsement for its project by
its board of directors, executive management, or other governing authority. If the
applicant is a collaborative grouping, a formal approval from each participant’s
governing authority is necessary. (Indicate Yes or No in the box )
Yes
or
No
1.2.3. As an applicant, we have administrative and financial management systems and
follow procurement standards that comply with the standards set forth in the grant
agreement.
Yes
or
No
1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached
grant form. (Any exceptions should be clearly noted and submitted with the
application.)
Yes
or
No
1.2.5 We intend to own and operate any project that may be constructed with grant
funds for the benefit of the general public.
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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.
Sitka Renewable Energy Feasibility for Centennial Hall and Library
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.
Answer here.
Sitka Alaska
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
X 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)
X Reconnaissance Design and Permitting
X Feasibility Construction and Commissioning
X Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
Application to AEA for $30,000 grant to evaluate the technical and financial feasibility for integration and
optimization of heat pump technologies to offset heating oil and grid electricity usage in Centennial Hall
and the adjacent Kettleson Memorial Library on the waterfront in downtown Sitka.
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2.5 PROJECT BENEFIT
Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel
costs, lower energy costs, etc.)
The proposed evaluation will lead to reductions in heating oil and grid electricity usage for two City
buildings, and demonstrate potential application of heat pump technology for other buildings in Sitka and
in southeast Alaska. The stated goal of the evaluation is to evaluate heat pump sys tems that can offset
an estimated 70% of existing heating oil consumption in both buildings, and at least 20% of electrical
consumption in Centennial Hall that is associated with the existing air to water chiller. These goals would
translate in 2010 dollars to annual savings of $23,860 for 8,710 gallons of heating oil per year; and an
annual savings of $4,400 for 46,940 KWH of grid electricity per year now used by the electric powered
chiller. Thus the total estimated annual savings of energy costs for th e two City buildings in 2010 dollars
is $28,260.
2.6 PROJECT BUDGET OVERVIEW
Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source
of other contributions to the project.
The estimated cost of this project is $30,000 for professional consultant services to evaluate the technical
and financial feasibility of heat pump integration, including energy modeling of these proposed systems
installed in the existing buildings. The City of Sitka has already invested $30,000 of their own funds to
complete a Level I energy audit in 2009 of City buildings that include the two buildings for this project. In
addition, staff time from the City of Sitka will be contributed to this project for administration and
management.
2.7 COST AND BENEFIT SUMARY
Include a summary of grant request and your project’s total costs and benefits below.
Grant Costs
(Summary of funds requested)
2.7.1 Grant Funds Requested in this application. $30,000
2.7.2 Other Funds to be provided (Project match) $9,000
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $39,000
Project Costs & Benefits
(Summary of total project costs including work to date and future cost estimates to get to a fully
operational project)
2.7.4 Total Project Cost (Summary from Cost Worksheet
including estimates through construction)
$30,000
2.7.5 Estimated Direct Financial Benefit (Savings) $23,460
2.7.6 Other Public Benefit (If you can calculate the benefit in
terms of dollars please provide that number here and
explain how you calculated that number in your application
(Section 5.)
$
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SECTION 3 – PROJECT MANAGEMENT PLAN
Describe who will be responsible for managing the project and provide a plan for successfully
completing the project within the scope, schedule and budget proposed in the application.
3.1 Project Manager
Tell us who will be managing the project for the Grantee and include contact information, a
resume and references for the manager(s). 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 L. Weatherman P.E. Municipal Engineer City and Borough of Sitka
100 Lincoln Street Sitka, AK 99835
(907) 747-4042 office (907) 747-3158
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.)
July, 2011 Request for Proposals to prepare Feasibility Report
August, 2011 Award contract to prepare Feasibility Report
August, 2011 – September site visit, review of facilities and preliminary calculations
September, 2011 Preliminary Feasibility Report (50%)
September, 2011 – October 2011 review and revise Report
October, 2011 Final Feasibility Report
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.)
September 14 Receive Assembly Approval for Resolution for project.
September 15 submit grant application
December 15, 2010, Complete Review and Evaluation of Applications
January 28, 2011, Projects submitted to the Legislature for review and approval
May 17, 2011, Projects approved for funding (contingent upon Legislative Action)
July, 2011 Request for Proposals to prepare Feasibility Report
August 1, 2011, Finalize Award Documents
August, 2011 Award contract to prepare Feasibility Report
August, 2011 – September site visit, review of facilities and preliminary calculations
September, 2011 Preliminary Feasibility Report (50%)
September, 2011 – October 2011 review and revise Report
October, 2011 Final Feasibility Report
3.4 Project Resources
Describe the personnel, contractors, equipment, and services you will use to accomplish the
project. Include any partnerships or commitments with other entities you have or anticipate will
be needed to complete your project. Describe any existing contracts and the selection process
you may use for major equipment purchases or contracts. Include brief resumes and references
for known, key personnel, contractors, and suppliers as an attachment to your application.
The project resources include the City and Boroughs of Sitka (CBS) Public Works staff and the selected
consultant who will prepare the feasibility report. The CBS staff operates and maintains both the
Centennial Hall and the Library. The Centennial Hall has received a $2,000,000 grant for renovating it to
current standards and uses. The feasibility report will be used to provide direction and design criteria to
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the future selected architect – Mechanical Engineer to design the heating and cooling facilities for the
Centennial Hall. As the project progresses from feasibi lity to design the CBS staff will apply for required
permits including the Corps of engineer, Alaska Department of Natural Resources if required and
complete the Coastal Project Questionnaire. The Public Works CBS staff resources include two civil
engineers, one architect – project manager, one cad technician and 2 clerical staff members. In addition
to the Public Works staff the CBS Finance Department has a full time grants accountant. Previous
expenditures ($30,000) to be used for this project include a Level I Audit for CBS buildings prepared in
2009.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
Project Communications will be prepared by the project manager on a monthly basis addressing
milestones and submissions. These reports will be augmented by the grants accountant addressing
funding expenditures.
3.6 Project Risk
Discuss potential problems and how you would address them.
The risks to the project is that neither seawater nor air heat pumps will be feasible for use to reduce the
use of oil and electricity to heat and cool the Centennial hall.
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SECTION 4 – PROJECT DESCRIPTION AND TASKS
Tell us what the project is and how you will meet the requirements outlined in Section 2 of
the RFA.
The level of information will vary according to phase(s) of the project you propose to
undertake with grant funds.
If you are applying for grant funding for more than one phase of a project provide a
plan and grant budget form for completion of each phase.
If some work has already been completed on your project and you are requesting funding for
an advanced phase, submit information sufficient to demonstrate that the preceding phases
are satisfied and funding for an advanced phase is warranted.
4.1 Proposed Energy Resource
Describe the potential extent/amount of the energy resource that is available.
Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be
available for the market to be served by your project.
The potential heat energy available in seawater of Sitka Sound is significant and the escalating cost of
heating oil and electric heat warrant an evaluation of seawater source heat pumps. The seawater
temperature is seasonally enhanced by solar gain and varies from 37F to 57F. Seawater temperature has
been continuously measured for the past ten years by a NOAA sens or at a depth of 12 feet in Sitka
Harbor. NOAA data records show that the seawater temperature remains above 40F for most of the
heating season. This temperature range of seawater makes the use of seawater source heat pumps
technically feasible for delivering heat to buildings at 120F to 130F with a single high efficiency heat pump
using R-134a refrigerant. The seawater resource in Sitka Harbor can also be used for direct natural
cooling of buildings when a titanium plate heat exchanger is employed in the piping arrangement.
Other heat sources available for buildings in Sitka include heating oil, electric resistance heat, propane,
cord wood, and air to air heat pumps. While the buildings to be evaluated primarily use heating oil at
present, this fuel is escalating in price rapidly and introduces a liability of pollution. Electric resistance heat
in Sitka is produced from clean hydro electricity, however there are increasing concerns with limited
capacity of the City’s hydro generation capacity in dry years, and seawater heat pumps would produce
equivalent amounts of heat using less electricity, and less peak demand. Propane is more excessive in
cost than heating oil in Sitka. Cord wood is impractical due to the labor costs involved in maintaining a
batch wood boiler system; the liabilities of wood fuel air pollution in the heart of downtown is also
undesirable. Air to air heat pumps and air to water heat pumps have considerably greater limitations in
efficiency in comparison to seawater heat pumps, due to the fact that there is much greater heat capacity
and temperature stability in seawater than in outside air. The engineering evaluation proposed by this
application will compare in detail the technical and financial feasibility of these various h eat sources
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 Centennial Hall in Sitka currently utilizes two heating oil boilers installed in 1999 for heating hydronic
loops, and a air to water chiller installed in 1999 for cooling. The heating oil boilers are Weil McClain
natural draft cast iron boilers with an nameplate output of 704 MBH and efficiency of 87%. The boilers
maintain hydronic loops at 155F to 175F to supply air handlers, duct coils, and cabinet wall heaters. Two
indirect hot water heaters are employed for heating of domestic hot water for th e building with the
exception of a separate electric hot water heater for the kitchen. The air to water chiller is a Trane unit, 60
ton capacity, that maintains the chilled water loop in the building at 42F for cooling coils.
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The Library currently utilizes one heating oil boiler to maintain hydronic heat loops in the building in the
range of 145F to 165F. Domestic hot water is supplied from 50 gallon electric hot water heater.
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.
As previously discussed in detail in Section 4.1 above, the two sources of energy used in the Centennial
Hall and Library buildings are heating oil and grid electricity. While the supply of heating oil is likely to
remain stable into the future, the delivered price to Sitka is likely to escalate at a conservative rate of 6%
per year due to rising world oil prices and because the heating oil must be delivered to Sitka using diesel
powered barges. Grid electricity is generated locally in Sitka from the Blue Lake Hydro Project; the
generation capacity from this facility is now falling short of the City demand durin g dry years and this
situation forces the occasional use of diesel powered generation at a significant price penalty. Thus the
City is motivated to finds ways to reduce its overall use of grid electricity, and heat pumps will offer some
relief as the proposed seawater heat pumps would have one third the demand of straight electric
resistance heating.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
Centennial Hall has used an average of 8,845 gallons of heating oil and 234,720 KWH of grid electricity
per year for the years 2007 thru 2009. The Library has used an average of 3,598 gallons of heating oil
and 96,588 KWH of grid electricity for the years 2007 through 2009. The current delivered price for #2
heating oil in Sitka is $2.74/gallon and $0.0936/KWH for grid electricity produced from Blue Lake Hydro.
The impact that the proposed evaluation will have on energy customers will occur in two phases. The
immediate impact will be that the City will be able to integrate conclusions of the evaluation in their
upcoming renovation plans for the buildings, this will ultimately reduce the cost of building operations. The
second impact that this evaluation will have on energy customers will be that it will demonstrate the
potential for similar projects in Sitka at the residential, commercial, industrial and municipal levels. This
project will also serve as a demonstration other southeast Alaska communities who have a seawater
resource and low cost hydro power.
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
The evaluation will examine the integration of seawater heat pumps for heating and cooling of Centennial
Hall and the Library. The specific renewable energy technology that will be considered is high efficiency
rotary screw heat pumps (Trane, Carrier or equal) that utilize R -134a refrigerant to lift latent heat from
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seawater at temperatures of 38F to 56F up to low temperature heating systems (120F to 130F). The heat
pump systems will be sized to meet heating and cooling demands once these demands are optimized as
possible through cost effective energy efficiency measures. The anticipated Coefficient of Performance
(COP) for the heat pumps is between 3.0 and 4.0 based on experience in Alask a with other seawater heat
pump systems. This means for every unit of energy used by the heat pump, 3 to 4 units of heat energy
will be produced at 120F to 130F for use in the buildings. The evaluation will consider the offset of 70% or
more of existing heating oil usage which means heat pumps could generate an estimated total of 1213
MMBH of heat energy per year for both buildings. Additional savings in heat energy costs may be realized
by evaluating various sources of waste heat from exhaust fans and b oiler rooms that can be directed to
the evaporator side of the heat pump system. A seawater cooling system for Centennial Hall could offset
an estimated 46,940 KWH of grid electricity per year that is now used by an air to water chiller.
The most significant anticipated barrier to achieving financial feasibility in the evaluation is the potential
cost of modifying building heat distribution systems to accept low temperature (120F to 130F) heat loops.
However, heat transfer equipment including air handler heating coils and hallway cabinet heaters can be
upgraded to low temperature units with little impact to the buildings. Potential for installation of radiant
floors in select rooms of the buildings will also be examined. Sea water cooling can be integrated directly
into the existing chilled water system in Centennial Hall with little modifications as there exists both space
and piping connections from a previous ground source liquid chilling system.
4.3.2 Land Ownership
Identify potential land ownership issues, including whether site owners have agreed to the
project or how you intend to approach land ownership and access issues.
The CBS owns the property that Centennial Hall and the Library are located on. The tide lands the sea
intake may be located on if that option is selected are CBS owned tidelands.
4.3.3 Permits
Provide the following information as it may relate to permitting and how you intend to address
outstanding permit issues.
List of applicable permits
Anticipated permitting timeline
Identify and discussion of potential barriers
The permits required for the actual construction are a Corps of Engineers permit and the Coastal Project
Questionnaire if the sea water source is chosen. A Building Department permit will be required regardless
of the heat source used.
4.3.4 Environmental
Address whether the following environmental and land use issues apply, and if so how they will
be addressed:
Threatened or Endangered species
Habitat issues
Wetlands and other protected areas
Archaeological and historical resources
Land development constraints
Telecommunications interference
Aviation considerations
Visual, aesthetics impacts
Identify and discuss other potential barriers
There are no endangered species impacted by the projects. The location of the sea water sources if
chosen will not impact any archaeological or historic resources as the site is land previously filled for the
past construction of the Centennial Hall and Library. There are no telecommunications interference or
aviation considerations. Wetlands impacts and habitat issues will be address with the Corps of engineers
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permit if the sea water source is used. There are no land development constraints because th e energy
project supports the renovation of the existing Centennial Hall building and for future heating of the Library.
The improvements envisioned will be contained within the existing building or its expansion or the existing
chiller enclosure which will address any visual or aesthetics impacts.
4.4 Proposed New System Costs and Projected Revenues
(Total Estimated Costs and Projected Revenues)
The level of cost information provided will vary according to the phase of funding requested and
any previous work the applicant may have done on the project. Applicants must reference the
source of their cost data. For example: Applicants Records or Analysis, Industry Standards,
Consultant or Manufacturer’s estimates.
4.4.1 Project Development Cost
Provide detailed project cost information based on your current knowledge and understanding of
the project. Cost information should include the following:
Total anticipated project cost, and cost for this phase
Requested grant funding
Applicant matching funds – loans, capital contributions, in-kind
Identification of other funding sources
Projected capital cost of proposed renewable energy system
Projected development cost of proposed renewable energy system
The energy grant supports the renovation of the Centennial Hall by evaluation alternate energy sources for
heating and cooling the building. CBS has a $2,000,000 grant for this renovation. The feasibility report
prepared from the grant funds will be used in conjunction with the Level I Audit for CBS buildings prepared
in 2009 to develop a energy efficient heating and cooling system.
The feasibility report for $30,000 will be used with the $30,000 Level I Audit for CBS buildings prepared in
2009 to develop design criteria for the renovation of the Cen tennial Hall building. CBS will also contribute
project management time to manage the Feasibility Report preparation and other staff time for site
reconnaissance with the selected energy consultant and research.
The recommended alternate energy system will be incorporated into the renovation design for the
Centennial Hall building. If the system selected is sea water then the design will accommodate the future
connection to the Library when it is also renovated in the future. The capital cost of the system to be
recommended is not know at this time but will be identified by the Feasibility Report that this grant is
requested to fund. A estimate using a proposed sea water heat exchanger is shown as $370,000
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 specific facilities are not known at this time as the grant is to prepare a Feasibility Report. However
the Project Cost Benefit Work Sheet anticipates that approximately 46,640 KWH will be offset by natural
seawater cooling and 1,213 MMBtu heating may be generated by seawater. Based on this possible option
the heating oil savings is 8,710 gallons @ $2.74 = $23,865. The electrical cost savings for cooling is
46,650 KWH @ $0.0926 = $4,319. The cost of operating the heat pumps is 111,000 KWH @ $0.0926 is
$10,278. The preliminary estimate is a total savings of $17,906 per year. The cost of operation and
maintenance of the facility is born by CBS augmented by facility meeting and performance fees.
4.4.3 Power Purchase/Sale
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The power purchase/sale information should include the following:
Identification of potential power buyer(s)/customer(s)
Potential power purchase/sales price - at a minimum indicate a price range
Proposed rate of return from grant-funded project
At this time there is no intention of power sales to other facilities other than the Library. The Library is
another CBS facility and the cost savings associated with this would further reduce the overall cost to the
CBS for providing the services the two buildings provide to the Public.
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
Download the form, complete it, and submit it as an attachment. Document any conditions or
sources your numbers are based on here.
SECTION 5– PROJECT BENEFIT
Explain the economic and public benefits of your project. Include direct cost savings,
and how the people of Alaska will benefit from the project.
The benefits information should include the following:
Potential annual fuel displacement (gal and $) over the lifetime of the evaluated
renewable energy project
Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price,
RCA tariff, or cost based rate)
Potential additional annual incentives (i.e. tax credits)
Potential additional annual revenue streams (i.e. green tag sales or other renewable
energy subsidies or programs that might be available)
Discuss the non-economic public benefits to Alaskans over the lifetime of the project
The evaluation is anticipated to lead to a potential annual heating oil displacement of 70% of the existing
usage from the two City buildings; this equates to a total of 8,710 gallons per year. At current pricing of
$2.74/gal that represents a cost savings of $23,640 in 2010. Over a 25 year life cycle, the total heating oil
savings would be 217,750 gallons; with a conservative 6% per year escalation of heating oil price and 4%
discount rate applied, these savings equate to a net present worth of $748,500. The estimated savings in
grid electricity gained by cooling Centennial Hall with seawater is 46,950 KWH per year. At current grid
electricity pricing of $0.0936/KWH this represents a cost savings of $4,400 in 2010. Over a 25 year life
cycle, the total electricity savings would be 1,174 MWH; with a conservative escalation rate of 1.5% on
hydro power and a 4% discount rate applied, these savings equate to a net present worth of $80,000.
The non-economic public benefits of evaluating heat pump systems for these high profile City buildings are
numerous. A primary benefit will be the reduction of pollution from heating oil combustion in the downtown
area. A second benefit will be a decreased dependency on heating oil as a fuel source. A third benefit will
be a reduction in electricity demand by Centennial Hall for cooling (existing chiller is currently running
throughout the year). A fourth and broader benefit will be that a heat pump system successfully integrated
in these public buildings will demonstrate that similar systems may be used in Sitka and other southeast
Alaska Communities where warm seawater and low cost electricity are available.
SECTION 6– SUSTAINABILITY
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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
Heat pump systems and their integration and optimization in existing City buildings will be managed in a
similar manner to existing heating systems in City buildings. The operations and maintenance of heat
pump systems can be performed primarily by City or local tech support and financed the same as other
City building systems currently are. Operational issues that could arise with a seawater heat pump/cooling
system are fouling of seawater intake lines, reduced performance efficiency in colder seawater
temperatures, and inadequate heat delivery balancing in the building. However these technical issues
have been addressed successfully in numerous other seawater heat pump systems in both Canada and
the USA and they are not seen as major obstacles to success in this proposed project. Operational costs
associated with seawater heat pump systems include quarterly pigging of submerged seawater intake
lines, routine maintenance of heat pump, heat exchanger, and pumping equipment. Clean hydro grid
electricity will be used to power the heat pumps and circulation pumps in the system. One heating oil boiler
may remain in each building as a redundant back -up for periods of peak heating loads or heat pump
system maintenance. Because modern heat pump systems typically include a web based automated
control system with temperature, flow, pressure, and energy use data, the performance and energy cost
savings of the systems can easily be monitored and reported once the system is commissioned
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 energy grant will complement the existing grants we have for the Centennial Hall. We have two
grants specifically for Centennial Hall one for renovation of the building (2,000,000) and one to upgrade
the parking lot (1,000,000). The energy grant will assist in the renovation of the Centennial Hall by making
the upgrades more energy efficient.
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.
The project is supported by the community based on the Assembly Resolution for the project and by the
accepted City and Borough of Sitka Climate Action Plan June 11 2010. The City and Borough of Sitka is
committed to reducing carbon emissions by various means and this project will assist this goal along with
reducing the cost of operating the facility.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 13 of 14 7/21/2010
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 – GrantBudget3.doc
Provide a narrative summary regarding funding sources and your financial commitment to the
project.
The project is part of an ongoing renovation project for Centennial Hall. One component of the renovation
is covered in the $30,000 Level I Audit for CBS buildings prepared in 2009. A second part of the project
funding is the $2,000,000 grant for the renovation of the Centennial Hall Building. The renovation project
will use the $20,000 energy grant to augment the Level I Audit to develop a more energy efficient heating
and cooling methodology for the Centennial Hall building. CBS resources committed to the project
include the staff of the Public Works Department, the project manager and the Building Maintenance
Facilities Manager.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 14 of 14 7/21/2010
SECTION 9 – 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.
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 1.6.
F. Authorized Signers Form.
G. Governing Body Resolution or other formal action taken by the applicant’s
governing body or management per RFA Section 1.4 that:
- Commits the organization to provide the matching resources for project at the
match amounts indicated in the application.
- Authorizes the individual who signs the application has the authority to
commit the organization to the obligations under the grant.
- Provides as point of contact to represent the applicant for purposes of this
application.
- Certifies the applicant is in compliance with applicable federal, state, and local,
laws including existing credit and federal tax obligations.
H. CERTIFICATION
The undersigned certifies that this application for a renewable energy grant is truthful
and correct, and that the applicant is in compliance with, and will continue to comply
with, all federal and state laws including existing credit and federal tax obligations.
Print Name Jim Dinley
Signature
Title Municipal Administrator
Date