HomeMy WebLinkAboutMerrill Field Landfill Gas Grant Application
Merrill Field
Landfill Gas Heat / Energy Project
Prepared by
Municipality of Anchorage
Solid Waste Services
Anchorage Fire Department
Maintenance & Operations Department
Prepared for
Alaska Energy Authority
Renewable Energy Grant Program
Requests for Grant Applications
(RFA) AEA11-005
September 15, 2010
INDEX
Grant Application
Attachment A Project Manager Resume
Attachment B Cost Worksheet
Attachment C Grant Budget Form
Attachment D Governing Body Resolution
Attachment E Project Schedule
Attachment F 3UHOLPLQDU\&RQVWUXFWLRQ&RVW(VWLPDWH
Attachment G $XWKRUL]HG6LJQHUV)RUP
Renewable Energy Fund Round IV
Grant Application
AEA 11-005 Application Page 1 of 15 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.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 2 of 15 7/21/2010
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Municipality of Anchorage, Solid Waste Services Department
Type of Entity:
Local Government
Mailing Address
P.O. Box 196650
Anchorage, AK 99519
Physical Address
1111 E. 56th Avenue
Anchorage, AK 99518
Telephone
907-343-6262
Fax
907-561-1357
Email
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Mark G. Madden, P.E.
Title
Director
Mailing Address
P.O. Box 196650, Anchorage, AK 99519
Telephone
907-343-6279
Fax
907-561-1357
Email
maddenmg@muni.org
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
X A local government, or
A governmental entity (which includes tribal councils and housing authorities);
Yes
or
No
1.2.2. Attached to this application is formal approval and endorsement for its project by
its board of directors, executive management, or other governing authority. If the
applicant is a collaborative grouping, a formal approval from each participant’s
governing authority is necessary. (Indicate Yes or No in the box )
Yes
or
No
1.2.3. As an applicant, we have administrative and financial management systems and
follow procurement standards that comply with the standards set forth in the grant
agreement.
Yes
or
No
1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached
grant form. (Any exceptions should be clearly noted and submitted with the
application.)
Yes
or
No
1.2.5 We intend to own and operate any project that may be constructed with grant
funds for the benefit of the general public.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 3 of 15 7/21/2010
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)
Merrill Field Landfill Gas Heating / Energy Project
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.
Fire Training Complex, 1140 Airport Heights Road, Anchorage, Alaska
Merrill Field Airport, 800 Merrill Field Drive, Anchorage, Alaska
(These two municipal facilities are directly adjacent to one another.)
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
Geothermal, including Heat Pumps Small Natural Gas
Heat Recovery from existing sources Hydrokinetic
Solar Storage of Renewable
X Other (Describe) – Landfill gas utilization
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Reconnaissance X Design and Permitting
X Feasibility X Construction and Commissioning
X Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
The project will utilize landfill gas (LFG) generated by wastes at the former Merrill Field
Landfill site to fuel one or more boiler units at the adjacent Anchorage Fire Department (AFD)
Fire Training Complex. The complex has four buildings which use boilers for primary heat. The
project would include either installation of a central boiler system feeding into the existing boiler
heat systems or modification of existing boilers at individual buildings. The project will also
include expansion of existing LFG collection systems at the landfill site, as well as gas process,
compression and transmission equipment, as needed.
Ultimately the current gas production could support local generation of electricity (100 to 200
kw) or an expanded district hating system providing base heat load for facilities adjacent to the
Fire Training Center. Because of uncertainties in gas impurities, off site facility configurations
and other limitations, this grant proposal has been developed toward a district heat system for
the Fire Training Facility only. The first phase of the grant project would be a feasibility study
to develop other options, optimize the system and identify potential revenue streams which could
flow from this project.
Renewable Energy Fund
Grant Application Round IV
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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 Merrill Field Landfill Gas Heating /Energy project will use LFG which is currently venting
to the atmosphere to displace consumption of commercial natural gas used to heat the AFD
facilities. The project will reduce AFD operating costs which are supported by municipal tax
payers and give the facility a reliable alternate fuel supply in the event of a disruption to local
natural gas supplies.
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 total project cost is anticipated to b $2,200,000. The Municipality is requesting $2,000,000
in grant funds with the remainder to be funded by capital project funds for AFD. In the final
project design some requested grant funding may be offset by overlapping funding for other
facility improvements (ie. a boiler upgrade required for this project may be programmed for
funding under another program as well, in which case the funding requirement for this grant
would be reduced.)
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. $2,000,000
2.7.2 Other Funds to be provided (Project match) $200,000
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $2,200,000
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)
$2,200,000
2.7.5 Estimated Direct Financial Benefit (Savings) $563,000
2.7.6 Other Public Benefit (If you can calculate the benefit in
terms of dollars please provide that number here and
explain how you calculated that number in your application
(Section 5.)
$
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 5 of 15 7/21/2010
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.
Mark G. Madden, P.E. will manage this grant program. Mr. Madden is currently the Director of
the Solid Waste Services Department (SWS) and has over 25 years of engineering experience
including management of grant-funded design and construction projects. Mr. Madden’s resume
is attached as Attachment A. Mr. Madden will utilize Municipal Maintenance & Operations
Department and Fire Department resources to oversee development of this project.
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.)
Key milestones include:
Award of AEA Grant – 8/1/11
Award Feasibility Study Contract 8/2/11
Complete Feasibility Study 9/30/11
Award Design contract – 11/4/11
Complete design – 1/23/12
Obtain building permit – 2/20/12
Bid Project Award – 4/24/12
Begin site grading / utility prep work – 6/19/12
Construction complete – 9/24/12
Facility startup and commissioning – 10/12/12
A Gantt presentation of key project tasks and milestones is described in Attachment E.
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.)
Key project milestones include:
Complete feasibility analysis by 9/30/12. Assuming that project is supported by analysis
remaining tasks will continue.
Building permit by 2/20/12. This is the only permit required for this project. Permit does
not have to be in hand until start of construction on or about 6/19/12.
Construction award date of 4/24/12 will allow procurement of boiler and drier skid with
adequate lead time for 10/12/12 completion. Date can slip by a maximum of 3 weeks.
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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 will be completed through cooperation between Solid Waste Services (SWS) and
Maintenance and Operations (M&O) Departments. SWS will retain primary oversight for the
landfill gas components of the project while M&O will be responsible for the heating systems.
Staff from SWS will administer contracts to connect the LFG collection system to the Fire
Training Complex and enhance this collection system to maximize the available LFG. Staff from
M&O will provide administration of contracts for the installation and/or retrofitting of boiler
systems into the existing Fire Training Complex facilities and maintenance of the system over the
life of the project. Design and construction contractors along with key technical consultants for
design will be contracted to support the project.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
The project will be overseen by M&O staff that will provide the AEA with monthly status and
financial reports as required by the grant agreement. M&O will meet with SWS and key design /
construction staff on a weekly basis to ensure progress and that schedules are being met, and
that key issues which could impede progress of the project are being addressed. M&O will meet
with AEA staff to present project progress at key milestones such as completion of design,
substantial completion of construction and facility startup. AEA staff is welcome and encouraged
to visit the project site during construction and operation, and participate periodically in project
staff progress meetings.
3.6 Project Risk
Discuss potential problems and how you would address them.
The feasibility study may determine the project is not feasible, in which case no further progress
on the project would be attempted.
The primary risk in this project is the long term availability of adequate LFG supplies 10 to 15
years from implementation. Merrill Field has not accepted trash since 1987 and is considered to
be past the point of peak landfill gas generation by common LFG modeling methods. The
proposed project requires a relatively modest gas requirement, slightly greater than current
operating flows from the existing gas control system. With expansion of the collection system to
access additional areas of the landfill we do not foresee a supply problem for this project. The
first task in the design phase will be an attempt to model and verify potential gas resources.
There are no permits required other than a Municipal building permit; no non-standard
equipment to be utilized; and all technology related to the project is common.
Renewable Energy Fund
Grant Application Round IV
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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 proposed project will use LFG from Merrill Field, a byproduct of anaerobic waste
decomposition, as its primary fuel. LFG is typically composed of 50% methane by volume and
has an equivalent energy content of 500 British Thermal Units (BTU) per cubic foot. The facility
has 4 million tons of municipal solid waste currently in place. Solid waste industry rule-of-thumb
is that each ton of waste can potentially produce between 3,900 and 6,600 cubic feet of gas, at a
generation rate of between 200 cubic feet per minute (cfm) and 700 cfm per million tons in place.
SWS currently operates a voluntary LFG collection system at Merrill Field Landfill to limit
migration of methane to adjacent buildings. This gas is currently flared or vented freely to the
atmosphere which provides no return of energy or other value to the local residents. Through this
project, LFG will provide a steady, reliable fuel resource which will be available for an extended
period.
Merrill Field has not accepted waste since 1987 and is well past what would be considered the
peak gas generation period. That stated, the existing gas collection system can readily draw 200
cfm from its perimeter wells at a methane content of 50 percent or greater. These wells influence
less than 5 percent of the landfill area. With addition collection capacity installed in the central
areas where greater gas production is anticipated, we believe the landfill can continue to produce
up to 500 cfm of gas with a methane content of at least 40 percent for at least 10 and likely 15
years. The proposed wellfield modifications would influence approximately 30% of the landfill
area.
The project would be completed in three phases. The initial phase would be a detailed feasibility
study of the project. While preliminary analyses have been performed which indicate the project
is technically feasible, the analysis would determine whether the project is financially viable and
what opportunities are available to improve the financial viability of the project. Assuming the
feasibility study supports continuation of the project, the municipality would enter into a detailed
design contract to complete all design, permitting and bid support. The final phase would entail
the actual construction of the project
The first task of the project will be a feasibility study, which will improve estimates of the
potential gas resource. The study will also consider the potential of expanding the central
heating system to encompass additional facilities or adding electrical generation capacity to
offset that energy use and possibly generate small amounts of revenue.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 8 of 15 7/21/2010
Under the current configuration of the project assumed for this grant application, landfill gas
would be used as a medium-BTU fuel for a central boiler system. Heat from this system would be
used to reduce reliance on commercial natural gas for facilities at the Anchorage Fire Training
Center.
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.
Heating at the Fire Training Complex is fueled with commercial natural gas purchased from
Enstar Natural Gas Co. Local commercial gas is distributed by Enstar from Cook Inlet gas
fields. These fields are currently in decline. Municipal Light and Power provides electrical
service to the facility.
The Fire Training center is comprised of 4 buildings which use a combination of boilers and
forced air furnaces. Existing boilers range in capacity from 0.3 million BTU per hour
(MMBTU/hr) to 1.3 MMBTU/hr and vary in age from less than 5 years to in excess of 20 years.
The project would install a central boiler rated at 5 MMBTU/hr. Hot water from this boiler
would be pumped to the central hot water circulation systems for each building. This system
would allow AFD to maintain the current boilers without modification. The current boilers
would provide any additional heated to maintain desired building temperatures, plus would be
available for full use in the event of a failure to the LFG system. The redundant system would
ensure the complex has heat during most emergency situations.
The standard boiler system is designed for peak heating demand of the Fire Training Complex.
The central boiler will likely have excess capacity which could be sold to other nearby entities
such as the University Aviation College or the Alaska Regional Hospital complex. These
alternatives would be evaluated, as well as potential for contribution to capital investment in the
interim between selection for grant award and through the feasibility study phase.
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.
Current energy production in Southcentral Alaska is fueled primarily by natural gas with
hydroelectric and diesel generation also present. This project will offset some natural gas fuel
usage, however the project will meet only the heating needs of the Fire Training Complex.
Gas usage for the Fire Training Facilities is estimated to be the equivalent 5,400 MMBTU per
year. In 2009, the site consumed $50,400 in natural gas.
In addition to offsetting commercial gas consumption, LFG would provide the Fire Training
Complex with a reliable fuel supply in the event of disruption to local commercial gas supplies.
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4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
This project is not intended to sell energy; only offset usage from existing sources. The landfill
gas provides a stable, reliable fuel supply to vital public safety facilities in the event that a gas
distribution interruption occurs. Of significant importance at the Fire Training Complex are the
fire and emergency medical response capability operating at Station #3. If the system were
expanded to add electrical generating capacity, most power produced would be used on site.
Because of the limited size of the project, no change in rate or service would be experienced by
the utility users.
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 proposed system will collect LFG from the closed Merrill Field landfill site, process and
compress it for consumption as a medium-BTU heating fuel for a centralized boiler at the AFD
Fire Training Complex at the east end of Merrill Field. The complex has a current installed
boiler capacity of approximately 2.5 MMBTU/hr. The facility is considering expansion of the fire
equipment maintenance facility, adding an additional demand for 1 MMBTU/hr. The proposed
system would have excess capacity which could be used to add radiant heat to some building
areas, further reducing the demand on forced air heating systems and to account for heat losses
between the buildings in the system.
Hot water generated by the central boiler would be circulated directly into the hot water
circulation systems in each building. This approach eliminates the need for modification of
existing boilers and keeps existing equipment readily available should the central boiler be
unavailable. The system would require supply and return lines from the central boiler to each
building in the system. These would be buried, insulated piping.
The existing gas collection system collects operates a flow of between 150 and 200 cfm, with a
typical methane content of 50 percent. Much of this system collects gas from the perimeter of the
fill, which is generally lower quality gas. Additional horizontal collectors would be installed in
the waste to provide adequate capacity to ensure up to 500 cfm of gas would be available at a
methane concentration of greater than 40 percent. The existing blower/flare station has an
installed blower capacity of 500 cfm. We estimate the demand to fuel a 5 MMBTU boiler to be
approximately 250 cfm of landfill gas. At a low rate of 250 cfm, the current blower station will
deliver 56,700 MMBTU/yr.
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The existing blower station is located approximately 2,000 lineal feet from the Fire Training
Complex. A pipeline would be required to deliver gas to the Fire Training Facility. Condensate
removed from the gas flow would be returned to the waste mass in the landfill.
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.
Under the current anticipated configuration, the project will be constructed on land owned by the
Municipality. No land issues are anticipated.
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
Municipal Building Permit (requires 4 to 6 weeks for review and processing of comments).
Permit application will be submitted upon completion of engineering design and will include
structure, mechanical, electrical, fire safety, land use, and zoning. No significant barriers are
anticipated.
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 will be constructed at Merrill Field Airport on land owned by the Municipality. An
environmental impact assessment was completed in 1986 for development of the landfill. No
issues with threatened or endangered species, habitat, wetlands, or archeological or historical
significance were identified. The landfill, airport and Fire Training Center are a developed
industrial site, visually screened, with no adjacent development. The land is currently zoned for
industrial use and will require no zoning modifications. No adverse environmental impacts or
other barriers to development are anticipated. Most facilities will be buried to ensure access is
not impaired at either the fire complex or airport; no visual impacts are anticipated.
Development must conform to aviation standards; most facilities in this project however are
underground. There are no telecommunication or visual aesthetic issues. The project will,
however need approval from Alaska Department of Environmental Conservation (ADEC) to
modify / disturb the landfill cap during construction.
Renewable Energy Fund
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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 total anticipated project cost is $2,200,000. This cost includes $55,000 to conduct a
feasibility study to evaluate and optimize the project, and approximately $200,000 in project
design and development costs. Capital costs for the project are estimated at $1,950,000 which
includes well field improvements ($440,000), gas transmission ($250,000) and the district heat
system (boiler, controls, circulation piping; $1,250,000). These costs would be refined in the
feasibility and design phases.
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.)
O&M costs associated with this project are limited to power costs to operate the blower system
($10,000 per year) and minor monitoring and routine servicing ($5,000 per year). Fifty percent
of these costs would be funded from the M&O annual operating funds, as an offset to current
energy expenditures.
4.4.3 Power Purchase/Sale
The power purchase/sale information should include the following:
Identification of potential power buyer(s)/customer(s)
Potential power purchase/sales price - at a minimum indicate a price range
Proposed rate of return from grant-funded project
In the currently anticipated configuration, all energy from this project will be consumed on site
ay the Fire Training Complex. No energy sales are anticipated. Usage of LFG will offset the
current annual commercial natural gas consumption of 5,400,000 cubic feet at the Training
Complex site.
In the Feasibility Study, additional options such as expanding the district heat concept to
adjacent facilities (UAA Aviation College, Alaska Regional Hospital) or addition of small scale
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electrical generation (microturbines) could be evaluated to identify potential revenue streams. No
revenues or price ranges have been determined for these options at this time.
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
The Project Cost Worksheet is included as Attachment B. The cost analysis assumes that the
benefit is the net annual savings realized by M&O in their energy costs. The analysis assumes
that the operating cost of the blower station would be shared by M&O and SWS. The analysis
was completed based only on the benefit to M&O.
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
This project will utilize an unused resource for heat generation at a Municipally owned facility. It
will reduce consumption of commercially supplied natural gas. Landfill gas provides a reliable,
stable fuel supply, at least for the next 10 to 15 years. Using this resource reduces the operating
cost of the Fire Training Complex to the municipal tax payers.
The Fire Training Complex is a municipally owned facility; therefore, there are few, if any, tax
credits or other tax incentives available for this project. The project may be eligible to sell Denali
Green Tags through the Bonneville Power Administration green tag program or similar energy
credits. The value of these tags cannot be determined at this time. Other renewable energy
credits may be available from use of the Merrill Field LFG as it is collected on a voluntary,
rather than compliance required basis.
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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
Municipal M&O and the SWS Departments will jointly operate the project with M&O operating
building facilities, and SWS operating landfill collection and processing systems. The existing
Fire Training Facility facilities are currently operated and maintained using tax supported
municipal operating funds. The existing gas collection system is operated using SWS annual
operating funds derived from landfill tipping fees. It is anticipated that the overall cost to operate
the boilers and gas collection systems will be less than current O&M costs, representing a savings
to the municipal tax and SWS rate payers. Currently, M&O pays approximately $50,000 for
commercial natural gas for this facility. SWS currently pays approximately $10,000 per year in
power costs to operate the blower station.
As part of the operation, SWS will monitor gas flow and quality to ensure the system has adequate
available fuel and the collection well field is properly balanced and functioning. SWS will
generate a report of total gas provided to the central boiler on a BTU basis. This gas will
represent a direct offset of commercial gas supplies which would have been used to operate the
program. SWS will provide a letter report annually for a period of not les than 10 years
summarizing annual gas production from the site.
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 blower system and portions of the gas collection system are already in place as are the
existing boiler and heating systems at the Fire training Complex. Upon notification of selection,
we will begin collecting preliminary data such as piping network diagrams, utility locations and
other data that will be needed for final system design, as well as prepare solicitation documents
for the design contract. Once the Grant Agreement has been signed, we will immediately issue
the design solicitation and hire the design contractor. Since it is anticipated that the grant award
will not be made until late 2011, this schedule will allow all design and procurement to be
completed in time to perform all construction activities during the summer months in 2012.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 14 of 15 7/21/2010
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.
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
The grant budget is presented in Attachment C. The budget is based on the Fire Training Center
Heat Project at this time but may change slightly with completion of the initial Feasibility Study
task.
The Municipality is requesting $2,000,000 in grant funding for this project which will be
supplemented by funding from the Anchorage Fire Department Capital funds or in-kind services.
In this case, in-kind services are facilities assumed necessary for construction of this project
which may be funded from other sources.
The Municipality has gas collection equipment in place (originally $1,900,000 with numerous
improvements and rehabilitation projects over its history) as well as local heat and heat
distribution with the structures at the Fire Training Complex (approximate replacement value of
boilers and controls $400,000) which would provide the final output to the individual buildings.
The Feasibility Study will be limited in scope to evaluation of the gas resource, development and
evaluation of potential alternatives to include the Central Heat System described here, an
expanded Central heat system which provides heat to facilities beyond the AFD Fire Training
Complex, and small scale electrical generation. A business analysis of each alternative will be
completed.
A detailed break down of costs, based on a pre-feasibility level evaluation of the project is
included as Attachment F.
Attachment A
Project Manager Resume
Attachment B
Cost Worksheet
Renewable Energy Fund Round 4
Project Cost/Benefit Worksheet
RFA AEA11-005 Application Cost Worksheet Page 1 7-21-10
Please note that some fields might not be applicable for all technologies or all project
phases. The level of information detail varies according to phase requirements.
1. Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability. 800 cfm to 2,800 cfm potential gas generation
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
2. Existing Energy Generation and Usage
a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank)
i. Number of generators/boilers/other 3 boilers
ii. Rated capacity of generators/boilers/other 1.0 / 0.9 / 1.3 MMBTU
iii. Generator/boilers/other type
iv. Age of generators/boilers/other Installed / rehabbed 2010 / 1999 / 1982
v. Efficiency of generators/boilers/other 80 % / 75% / 70%
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor $2,000
ii. Annual O&M cost for non-labor $50,400
c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the
Railbelt grid, leave this section blank)
i. Electricity [kWh]
ii. Fuel usage
Diesel [gal]
Other
iii. Peak Load
iv. Average Load
v. Minimum Load
vi. Efficiency
vii. Future trends
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu]
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other 5,500 MMBTU (commercial natural gas)
1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric
Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power.
Renewable Energy Fund Round 4
Project Cost/Benefit Worksheet
RFA AEA11-005 Application Cost Worksheet Page 2 7-21-10
3. Proposed System Design Capacity and Fuel Usage
(Include any projections for continued use of non-renewable fuels)
a) Proposed renewable capacity
(Wind, Hydro, Biomass, other)
[kW or MMBtu/hr]
5 MMBTU/hr boiler to be fueled with landfill gas
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh]
ii. Heat [MMBtu] 5,600 MMBTU
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu]
ii. Coal [tons or MMBtu]
iii. Wood [cords, green tons, dry tons]
iv. Other 7,000 MMBTU (16,000,000 cf landfill gas)
4. Project Cost
a) Total capital cost of new system $2,200,000
b) Development cost (included above)
c) Annual O&M cost of new system $5,000
d) Annual fuel cost $10,000
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity
ii. Heat 5,600 MMBTU / yr
iii. Transportation
b) Current price of displaced fuel At current Enstar commercial rates, $50,455 / year in
2010
c) Other economic benefits Reduction in operating costs for both tax and rate
supported departments of municipal government,
reduce costs to local citizens; job creation.
d) Alaska public benefits
6. Power Purchase/Sales Price
a) Price for power purchase/sale
Renewable Energy Fund Round 4
Project Cost/Benefit Worksheet
RFA AEA11-005 Application Cost Worksheet Page 3 7-21-10
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio For a 15-year project period with an initial capital investment of
$2,200,000 and assuming these costs are recovered through net
energy savings of approximately $35,300 and an inflation rate of 2%,
the project NPV is -$1,690,000 without grant funding. The NPV is
$309,600 with grant funding.
Payback (years) Without grant funding the payback is 51 years. With grant funding the
payback is approximately 5.2 years.
Attachment C
Grant Budget Form
Renweable Energy Fund Grant Round IV Grant Budget Form 7‐21‐10Merrill Field Landfill AFD Central Heat / Energy ProjectBUDGET INFORMATIONBUDGET SUMMARY:Milestone or TaskAnticipated Completion DateRE‐ Fund Grant FundsGrantee Matching FundsSource of Matching Funds: TOTALS1 Feasibility Study 9/30/2011 $55,000 $0 n/a $55,0002 Detailed Design 3/19/2012 $200,000 $0 n/a $200,000Construction / Commissioning$03a Major Equipment Procurement 6/18/2012 $415,000 $100,000 Cash $515,0003b. Well Field / Gas Transmission 9/24/2012 $690,000 $0 n/a $690,0003c. Boiler Install / Heat Distribution 10/15/2012 $640,000 $100,000 Cash / in‐kind $740,0006 $2,000,000 $200,000 $2,200,000Milestone # or Task #BUDGET CATAGORIES:12345TOTALSDirect Labor & Benefits $5,000 $14,000 $5,000 $10,000 $10,000 $44,000Travel & Per Diem $0 $0 $0 $0 $0 $0Equipment $0 $0 $0 $321,000 $122,500 $443,500Materials & Supplies $0 $0 $407,000 $120,000 $268,800 $795,800Contractual Services $50,000 $178,000 $53,000 $25,000 $25,000 $331,000Construction Services $0 $0 $0 $184,000 $283,700 $467,700Other $0 $8,000 $50,000 $30,000 $30,000 $118,000TOTALS $55,000 $200,000 $515,000 $690,000 $740,000 $2,200,000
Attachment D
Governing Body Resolution
(Resolution to be heard at the Anchorage Municipal Assembly Meeting,
6HSWHPEHU. Approved resolution to be submitted following
Assembly action)
Submitted by: Chair of the Assembly at the
Request of the Mayor
Prepared by: Anchorage Fire Dept
For Reading:
ANCHORAGE, ALASKA
AR NO. 2010-____
A RESOLUTION OF THE MUNICIPALITY OF ANCHORAGE AUTHORIZING 1
THE SOLID WASTE SERVICES DEPARTMENT TO APPLY FOR A GRANT 2
FROM THE STATE OF ALASKA ENERGY AUTHORITY TO FUND THE 3
DESIGN AND CONSTRUCTION OF A LANDFILL GAS PROJECT AT MERRILL 4
FIELD TO PROVIDE HEAT TO THE FIRE TRAINING COMPLEX. 5
6
WHEREAS, the Solid Waste Services Department operated the landfill at Merrill 7
Field before its establishment as an airport, and continues to manage the 8
subsurface landfill; and 9
10
WHEREAS, the site produces quantities of methane-rich landfill gas as a by-11
product of waste decomposition, representing a significant renewable energy 12
resource to the Municipality; an existing gas collection system directed to a flare 13
site would support re-direction of this gas to provide heat to the Fire Training 14
Complex; and 15
16
WHEREAS, the Anchorage Fire Department operates facilities at the Fire 17
Training Complex, located at the east end of Merrill Field on Airport Heights Road. 18
Facilities in this Complex include the Training Center, new Regional Fire Training 19
Center & Tower, old Training Tower, Station #3, and the AFD Maintenance Shop. 20
Heating systems in these facilities could be supported by landfill gas to offset 21
utility costs for ten to fifteen years; and 22
23
WHEREAS, the Maintenance and Operations Department manages the buildings 24
at the Fire Training Complex along with all construction projects related to 25
municipal facilities; and 26
27
WHEREAS, Merrill Field manages the commercial service airport at the site of the 28
former landfill. Through cooperative planning, Merrill Field supports the 29
construction of a landfill gas project which will not, with reasonable assurance, 30
obstruct airport operations or infrastructure; and 31
32
WHEREAS, The Renewable Energy Fund, established by the Alaska State 33
Legislature in 2008, provides grant funding for the development of renewable 34
energy projects including projects that involve the direct use of landfill gas. The 35
Fund is administered by the Alaska Energy Authority. The current Request for 36
Grant Applications (AEA11-005) is intended to support projects for 37
implementation beginning in Fall 2011; and 38
39
WHEREAS, the Solid Waste Services Department plans to apply for grant monies 40
from the Alaska Energy Authority to fund the design and construction of a landfill 41
AR – AEA grant application Page 2 of 2
gas supply system from Merrill Field to the Fire Training Complex and affiliated 42
heating systems for the facilities there; now, therefore, 43
44
THE ANCHORAGE ASSEMBLY RESOLVES: 45
46
Section 1: The Assembly supports the proposed project and authorizes Solid 47
Waste Services to apply for grant funding through the Alaska Energy Authority. 48
Mark Madden, the Director of Solid Waste Services, or designee, shall be the 49
point-of-contact for the grant application and is authorized to represent the 50
Municipality for the purposes of this application. 51
52
Section 2: The Municipality of Anchorage is in compliance with all federal, 53
state, and local laws related to existing credit and federal tax obligations. 54
55
Section 3: This resolution shall take effect immediately upon passage and 56
approval by the Anchorage Municipal Assembly. 57
58
PASSED AND APPROVED by the Assembly this ______day of , 2010. 59
60
61
62
______________________ 63
Chair 64
65
ATTEST: 66
67
68
Municipal Clerk 69
70
MUNICIPALITY OF ANCHORAGE
ASSEMBLY MEMORANDUM
No.__ ______
Meeting Date: __________
From: MAYOR 1
2
Subject: A RESOLUTION OF THE MUNICIPALITY OF ANCHORAGE 3
AUTHORIZING THE SOLID WASTE SERVICES 4
DEPARTMENT TO APPLY FOR A GRANT FROM THE STATE 5
OF ALASKA ENERGY AUTHORITY TO FUND THE DESIGN 6
AND CONSTRUCTION OF A LANDFILL GAS PROJECT AT 7
MERRILL FIELD TO PROVIDE HEAT TO THE FIRE TRAINING 8
COMPLEX. 9
10
The Municipality of Anchorage, Solid Waste Services Department, retains the 11
expertise and management authority to develop a landfill gas project at Merrill 12
Field, in partnership with Merrill Field Management, to provide heat to the Fire 13
Training Complex operated by the Anchorage Fire Department. 14
15
Application to the State of Alaska Energy Authority’s Renewable Energy Grant 16
Program provides the Municipality of Anchorage with an opportunity to use the 17
renewable landfill gas available in the landfill beneath Merrill Field to offset utility 18
costs for heating the Fire Training Complex for ten to fifteen years. 19
20
Funds requested through the Renewable Energy Grant Program are intended to 21
provide infrastructure to connect the existing gas collection system beneath Merrill 22
Field with the facilities located at the Fire Training Center. Funds are also 23
intended for retrofitting the existing heating systems in these facilities to conform 24
with landfill gas use and the adoption of high efficiency boilers and affiliated 25
heating systems where needed. 26
27
Through the use of renewable energy resources, the Municipality of Anchorage is 28
supporting the sustainability of the community with respect to environmental, 29
economic and social considerations. The public benefit from this proposed 30
project includes savings to the Municipal tax base with respect to utility costs for 31
public facilities and use of renewable energy (landfill gas) which reduces demand 32
for natural gas. 33
34
Application to the Renewable Energy Grant Program is intended to dovetail with 35
existing infrastructure at the Fire Training Complex and the future plans for 36
maintaining the facilities and functionality of the site. While no hard match is 37
required to make application, soft matches will support the project through the 38
AM – AEA grant application Page 2 of 2
planned renovation of the heating system in the AFD Maintenance Shop and the 1
savings in utility expenses over ten to fifteen years for all Fire Training Complex 2
facilities. 3
4
THE ADMINISTRATION RECOMMENDS APPROVAL OF A RESOLUTION OF 5
THE MUNICIPALITY OF ANCHORAGE AUTHORIZING THE SOLID WASTE 6
SERVICES DEPARTMENT TO APPLY FOR A GRANT FROM THE STATE OF 7
ALASKA ENERGY AUTHORITY TO FUND THE DESIGN AND 8
CONSTRUCTION OF A LANDFILL GAS PROJECT AT MERRILL FIELD TO 9
PROVIDE HEAT TO THE FIRE TRAINING COMPLEX. 10
11
Prepared by: Anchorage Fire Department 12
Approved by: Mark S. Hall, Fire Chief, Anchorage Fire Department 13
Concur: Mark Madden, Director, Solid Waste Services 14
Concur: David A. Lundeby, Manager, Merrill Field Airport 15
Concur: Alan Czajkowski, Director, Maintenance & Operations 16
Concur: Dennis A. Wheeler, Municipal Attorney 17
Concur: George J. Vakalis, Municipal Manager 18
Respectfully Submitted: Daniel A. Sullivan, Mayor 19
Attachment E
Project Schedule
IDTask NameDuration1Grant Award0 days2Feasibility Study40 days?3Designer Solicitation5 wks4Design Contract Award0 days5Preliminary Design Eval.5 wks6Detailed Design6 wks7Building Safety Review4 wks8Bid documents4 wks9Bid Period25 days10Bid Award0 days11Procurement / Mobilization2 mons12Field construction14 wks13Startup and commissioning3 wks14Final Completion 0 days8/111/84/2410/15JulAugSepOctNovDecJanFebMarAprMayJunJulAugSepOctNovQtr 3, 2011Qtr 4, 2011Qtr 1, 2012Qtr 2, 2012Qtr 3, 2012Qtr 4, 2012TaskSplitProgressMilestoneSummaryProject SummaryExternal TasksExternal MilestoneDeadlineEXHIBIT E. PROJECT SCHEDULEPage 1Merrill Field Landfill GasAnchorag Fire DepartmentCentral Heating Project
Attachment )
Preliminary Construction Cost Estimate
Municipality of Anchorage
Merrill Field LF-LFGE
3
CONSTRUCTION COST ESTIMATE
Item Cost
Major Equipment
Landfill Gas Pressurization/ Dehydration Skid $190,000
Mobilization $25,000
Sump $15,000
Boiler $110,000
Valves $25,000
Instrumentation $25,000
Air Compressor $20,000
Miscellaneous Equipment $30,000
Rigging $25,000
Inbound Freight $50,000
Major Equipment Total: $515,000
Civil Installation Work
Grading/Excavation $30,000
Structural Fill
Stone Cover
Material Testing
Trenching $10,000
Concrete $25,000
Civil Installation Total: $65,000
Mechanical Installation Work
Piping Systems:
Wellfield Improvements $440,000
Landfill Gas Pipe Line $250,000
Boiler / Heat Distribution $370,000
BFW
Compressed Air
Condensate
Equipment Maintenance Bldg.
Fire Station
Administration Bldg.
raining Center
Mechanical Installation Total: $1,060,000
Municipality of Anchorage
Merrill Field LF-LFGE
4
Electrical Installation Work
SCADA System $80,000
Electrical Installation $115,000
Lightning Protection
Power Conduit/Cable
Control Conduit/Cable
Grounding Grid
Electrical Installation Total: $195,000
Technical Services
Feasibility Study $55,000
Mechanical Design $50,000
Civil Design $30,000
Structural Design $30,000
Control Design $40,000
Electrical Design $50,000
Technical Services Total: $255,000
Construction Site Supplies
Construction Truck $10,000
Phone $5,000
Water $5,000
Electric $5,000
Trash $5,000
Rental Equipment $10,000
Office Trailer $20,000
Construction Site Supplies Total: $60,000
Construction Management
Construction Management $50,000
Construction Management Total: $50,000
Total
Construction Total $2,200,000
Attachment G
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