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HomeMy WebLinkAboutSea Life center City of Seward-SAAMS GrantApp Renewable Energy Fund Round 3 Grant Application AEA 10-015 Application Page 1 of 19 10/7/2009 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-III.html Grant Application Form GrantApp3.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 Costworksheet3 .doc Summary of Cost information that should be addressed by applicants in preparing their application. Grant Budget Form GrantBudget3.d oc 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 GrantBudgetInst ructions3.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 3 AEA10-015 Grant Application Page 2 of 19 10/7/2009 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) City of Seward Type of Entity: Local Government Mailing Address P.O. Box 167 Seward, AK 99664 Physical Address 410 Adams Street Seward, AK 99664 Telephone (907) 224-3331 Fax (907) 224-4038 Email clerk@cityofseward.net 1.1 APPLICANT POINT OF CONTACT Name Phillip Oates Title City Manager Mailing Address P.O. Box 167 Seward, AK Telephone (907) 224-4047 Fax (907) 224-4038 Email poates@cityofseward.net 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 ) 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.) 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. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 3 of 19 10/7/2009 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) Alaska SeaLife Center Phase II Seawater Heat Pump 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. 301 Railway Avenue, Seward, 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 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 X 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 Seward (City) is owner of the Alaska SeaLife Center (ASLC), which is leased and operated by the Seward Association for the Advancement of Marine Science (SAAMS). In conjunction with SAAMS, the City proposes construction of Phase II an innovative heating system that utilizes an emerging heat pump technology that will "lift" latent heat from raw seawater and transfer this energy into low temperature building heat. The proposed seawater heat pump system will serve as a demonstration project designed to test and prove an emerging energy technology that shows promise for providing financial benefits to Alaskans in coastal communities. Construction costs will be reduced by making use of the ASLC's existing seawater intakes and seawater pumping system. Demonstration of this innovative system to the public will be facilitated through creation of a public display that will show ASLC visitors and other communities the benefits and mechanics of the system in real-time. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 4 of 19 10/7/2009 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.)  One 90-ton heat pump will be installed in Phase I funded by an Emerging Technology Grant received by SAAMS. A second 90-ton heat pump will be installed in Phase II funded by an REF grant to the City of Seward. Two 90-ton heat pumps will supply approximately 55% of the ASLC building heating requirement. This equates to an annual avoided heating fuel purchase of 57,653 gallons for a cost savings of $145,286 at the current ASLC purchase cost of fuel oil of $2.52/gallon. By not burning 57,653 gallons of fuel oil, this project will reduce the Center’s annual carbon foot print by not releasing 1,291,430 pounds of CO2. Coastal communities with access to seawater from ice-free bays and with reasonably priced electricity have the potential to replicate this innovative heating system. Alaska communities where this may be cost effective include Kodiak, St. Paul, Dillingham, and Sitka. The promise of this emerging technology may also motivate coastal communities to develop low-cost clean electrical power generation systems, such as wind or hydro, to provide the electricity needed to power the heat pump system. The seawater heat pump system shifts dependence from heating oil to electricity as the prime mover of heat, making this system an effective option to conventional fossil fuel heating systems. In coastal communities that have warm seawater temperatures extending into the winter months (like Seward), the potential exists for expanding this technology into a district heating system, such as those used in selected coastal communities in northern Europe. Large seawater heat pumps supply warm source water to a number of buildings along a buried insulated loop pipe that is tapped to serve customers along the route. These customers can in turn use their own “off-the-shelf” heat pumps to lift the warm source water temperature to 120°F for building heat and domestic hot water. 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. We are requesting $286,580 from the Renewable Energy Fund. The REF grant will fund the design, procurement, and installation of a second 90-ton seawater heat pump to complement a single 90-ton heat pump funded by an Emerging Energy Technology grant ($426,720) from the Denali Commission awarded to SAAMS in September 2009. The grant from the Denali Commission will cover the design, procurement, and installation of a single stand alone seawater heat pump. The amount requested in this proposal will fund the procurement and installation of a second heat pump as a stand-alone project, which will be integrated as a system with the heat pump funded by the Denali Commission. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 5 of 19 10/7/2009 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. $286,580 2.7.2 Other Funds to be provided (Project match) $0 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $286,580 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) $286,580 2.7.5 Estimated Direct Financial Benefit (Savings) $145,286/year 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.) $0 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 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. We do not expect project management assistance from AEA or any other government entity. The project will be managed by Randy Stauffer and Andy Baker, whose resumes are attached as Appendix A. Randall Stauffer – Project Manager Project management will be led by Randy Stauffer, who has considerable experience managing large, complex projects over a 30-year career. His recent experience at ASLC includes construction of a specially designed animal quarantine facility known as the "Steller South Beach Research Complex," re-boiler procurement and installation, load bank design and installation, electric boiler procurement and installation, salmon research facilities, and eider research net pen enclosures and tanks. Andy Baker – Project Consultant Andy Baker, owner/operator of YourCleanEnergy, LLC, will be hired as a project consultant. Mr. Baker specializes in the modeling, design, & financial evaluation of renewable energy systems for municipal and commercial buildings, including solar thermal, heat pumps, wood boilers, photovoltaic, wind, and small hydro technologies. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 6 of 19 10/7/2009 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 1, 2010 – August 31, 2010: Procure and contract mechanical/electrical engineering design firm via RFP process September 1 – December 31, 2010: Complete final design January 1 – February 28, 2011: Bid equipment procurement and mechanical/electrical contractor March 1 – July 15, 2011: Equipment procurement (including instrumentation), installation and commissioning, and final reporting July 25, 2011 – July 24, 2016: Performance/O&M reporting to AEA 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 31, 2010: Procure and contract mechanical/electrical engineering firm via RFP process December 31, 2010: Complete final design February 28, 2011: Bid equipment procurement and mechanical/electrical contractor July 15, 2011: Equipment procurement (including instrumentation), installation and commissioning, and final reporting a) Shop drawing/manufacture submittals and review – 3 weeks b) Manufacture and ship heat pumps, heat exchangers and instrumentation to Seattle – 8 weeks c) Ship heat exchangers, heat pumps, instrumentation from Seattle to Anchorage to Seward – 2 weeks d) Installation, including plumbing components – 6 weeks e) Final Acceptance, start-up and commissioning – 2 weeks 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 will issue a performance contract to SAAMS in order to accomplish the goals & objectives of this project. SAAMS will use a competitive RFP process in conformance with federal OMB grant regulations to secure mechanical and electrical design services; and will Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 7 of 19 10/7/2009 competitively bid the purchase of owner furnished equipment and installation services in conformance with OMB requirements. In this process, equipment suppliers and installation contractors will be required to adhere to strict specifications. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Project Manager Randy Stauffer will be responsible for monitoring the work, overseeing design and engineering consultants, selection of and equipment procurement, review of plans and specifications, on-site inspections, and review of work to assure it conforms to the terms of the grant. He will also provide monthly, quarterly, and/or annual status reports via email to AEA’s Project Manager as required by the terms of the grant. Project Consultant Andy Baker will review design proposals, construction documents, and equipment & construction bids. 3.6 Project Risk Discuss potential problems and how you would address them. We do not expect any problems in the design or construction of this project. However, there are elements that may be a challenge. The process of removing latent heat from raw seawater and making that same heat useful for large air handling units is neither simple nor conventional. Known and expected engineering challenges of implementing this innovative and emerging technology seawater heat pump system at ASLC include: 1) The requirement of using heat transfer fluid with high concentrations of propylene glycol that increases flow viscosity and reduces heat capacity. This type of heat transfer fluid is required on the condenser side of the heat pump to prevent potential freezing of fluid in the duct coil of the air handler at or below freezing ambient temperatures. 2) The ability of the heat pump to receive and release heat at equal rates, known as convergence. The system of heat exchanger, circulation pumps and the heat pump must work together to optimize heat transfer efficiency at all times. 3) Integrating this new system with existing infrastructure so that usage of space is economized and the operation and maintenance is simplified. 4) There are only a few manufacturers in the US at this time who have considerable experience with manufacturing water-to-water heat pumps that can lift commercial quantities of heat energy from a temperature range of 35°F to 50°F on the evaporator side to as great as 120°F on the condenser side. We plan to overcome these challenges through careful selection of engineering consultants and SAAMS’ extensive experience with large, complex mechanical projects. SAAMS staff has managed the construction of large marine mammal and bird facilities, entire heating boiler replacement, installation of seawater and freshwater heat exchangers, installation of large aquaria tanks and their related mechanical systems, and installation of complex salmon research habitats and laboratories. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 8 of 19 10/7/2009 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. This project will "lift" latent heat from raw seawater from Resurrection Bay; we will have an unlimited supply of energy in the form of solar heated seawater. The proposed seawater heat pump system will serve as a demonstration project designed to test and prove an emerging energy technology that shows promise for providing financial benefits to Alaskans in coastal communities. The specific heat pump equipment required for this process is not an “off the shelf” or conventional heat pump; it must use a wider heat range to tap into colder temperatures. While conventional heat pumps are typically lifting heat from 45-55°F waters sources, seawater heat pumps are lifting from lower temps ranging from 37-52°F. Therefore, they require more innovative and new compressor technology. The pump we will use is the “next generation” - better, newer, more compact, and more cost effective. Other alternatives available for the market to be served by this project are restricted to heating oil and electricity. 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 Alaska SeaLife Center currently employs two 85-hp Cleaver Brooks 4-pass oil fired, 5-year old, 87.9% efficient boilers and one 100% efficient 500 kW Sussman electric boiler, less than one-year old, to provide building and pavement heating. 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. The ASLC annually consumes approximately 4,284,960 kWh of electricity and 84,830 gallons of heating oil. The two heat pump system will utilize approximately 613,000 kW of electricity annually. However, heat from the heat pumps will reduce the use of the electric boiler by approximately 50-60%, resulting in significantly less annual electrical energy consumption. The combination of the electric boiler and heat pump system is anticipated to reduce heating fuel Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 9 of 19 10/7/2009 consumption by approximately 90%, resulting in avoided fuel purchase of 76,347 gallons of fuel annually. The project will not adversely impact the existing energy infrastructure and resources of the ASLC and community of Seward; it will instead save on electricity and heating fuel reducing the demand on railbelt electricity and local consumption of heating oil. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Coastal communities with access to seawater from ice-free bays and with reasonably priced electricity have the potential to replicate this innovative heating system. Alaska communities where this may be cost effective include Kodiak, St. Paul, Dillingham, and Sitka. The promise of this emerging technology may also motivate coastal communities to develop low-cost clean electrical power generation systems, such as wind or hydro, to provide the electricity needed to power the heat pump system. The seawater heat pump system shifts dependence from heating oil to electricity as the prime mover of heat, making this system an effective option to conventional fossil fuel heating systems. In coastal communities that have warm seawater temperatures extending into the winter months (like Seward), the potential exists for expanding this technology into a district heating system, such as those used in selected coastal communities in northern Europe. Large seawater heat pumps supply warm source water to a number of buildings along a buried insulated loop pipe that is tapped to serve customers along the route. These customers can in turn use their own “off the shelf” heat pumps to lift the warm source water temperature to 120°F for building heat and domestic hot water. Applying this technology in other suitable locations in Alaska could significantly reduce heat oil consumption by extracting renewable solar heat energy from local seawater to provide site- specific or district heating of public, commercial and residential buildings. 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 1. TECHNOLOGY DESCRIPTION The basic concept behind this proposal is to employ heat pumps to “lift” latent heat from raw seawater at temperatures ranging from 35°F to 55°F, and transfer this heat energy into air handler units and pavement heating exchangers at a temperature of 120°F. The idea of extracting latent heat from seawater in Resurrection Bay has become of increasing interest, as the bay remains ice Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 10 of 19 10/7/2009 free throughout the winter; and the ASLC has two 24-inch diameter seawater intake pipes that draw flow from a depth of 275 feet. Because the existing heat exchange system in the basement area only removes 4°F from the raw seawater while heating a glycol loop, the chilled raw seawater can be returned to the main life support system supply pipes for use in various flow-through marine life tanks. Coefficient of Performance (COP) for a heat pump is the ratio of total heat output to electricity input. For this seawater heat pump project, a minimum COP value of 3.0 can be maintained and will lead to viable economic returns. This COP is maintained because there is enough solar heat stored in the thermal mass of Resurrection Bay through the winter heating season to keep seawater temperatures well above freezing. This heat can be captured as renewable energy using the emerging technology heat pumps now available. The seawater heat pump process and associated COP is illustrated below: 2. RELEVANT TECHNICAL DETAILS Seawater heat pumps are water-to-water heat pumps that operate by using electric compressors in combination with the physical properties of an evaporating and condensing fluid known as a refrigerant. The refrigerant used in the heat pumps in this evaluation is known as R-134a. The use of dual high efficiency rotary screw compressors on a single water-to-water heat pump is an emerging technology; this feature is what allows the temperature lifting of heat from as low as 37°F up to the target building heat temperature of 120°F. A stainless steel and titanium coated plate-and-frame heat exchanger is also required to prevent corrosion during the process of removing heat from the raw seawater flow in advance of the heat pump. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 11 of 19 10/7/2009 3. RELEVANT APPLICATIONS OUTSIDE ALASKA The concept of using heat from seawater for building demands has been employed for nearly 20 years in northern Europe: ~Stockholm, Sweden - Vartan Ropsten - largest seawater heat pumps in the world http://www.friotherm.com/downloads/vaertan_e008_uk.pdf ~Bodo, Norway - pop 41,000 - military base, district heating with 44.6F seawater http://geoheat.oit.edu/bulletin/bull25-3/art3.pdf ~Trondheim, Norway - STATOIL Research Centre - district heating with seawater http://www.heatpumpcentre.org/Publications/Case_Trondheim_ResearchCentere.asp 4. RELEVANT APPLICATIONS IN ALASKA There are two locations in Alaska where installations of the emerging technology seawater heat pumps systems are being considered on a pilot scale: ~Ted Stevens Marine Research Institute (TSMRI) – NOAA – Nat’l Marine Fisheries – Juneau, AK, have planned a seawater heat recovery component using two 100-ton Trane heat pump units, but these units have not yet been installed. They will be using heat from seawater to supply existing air handlers. ~Kodiak Fisheries Research Center (KFRC) – NOAA – National Marine Fisheries - Kodiak, AK, are performing a financial evaluation to determine cost and feasibility of installing a single seawater heat pump to supply chilled seawater for laboratory use and to supplement building heat. 5. HOW TECHNOLOGY IS BEING APPLIED HERE Unlike the installations proposed for TSMRI and KFRC, this project is intended to be a Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 12 of 19 10/7/2009 demonstration project that will be showcased to the Alaska public and visitors from other coastal communities. Because Seward is accessed by road, rail, sea and air, the ASLC is more accessible than Kodiak or Juneau relative to state's population center. As a public aquarium with over 150,000 visitors annually, the Alaska SeaLife Center seawater heat pump will have the added benefit as a demonstration project. The specific process that is proposed for the ASLC heat pump system is shown below: 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 Alaska SeaLife Center site and facility are owned by the City of Seward. The ASLC is leased by the City to SAAMS who maintains and operates the facility. 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 only permit required is a City of Seward building permit, which will be obtained after Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 13 of 19 10/7/2009 completion of the final design. We do not anticipate any barriers to this process. 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 environmental or land use issues with this project. 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 SAAMS contracted Andy Baker, PE, of Your Clean Energy, LLC to conduct a feasibility study for this project in March 2009. The study concluded that installation of seawater heat pumps was feasible, and included three alternatives with detailed costs estimates for final design and construction. The amount requested in this proposal reflects the cost estimate provided for “Alternative C,” which would provide for two heat pumps. Phase 0 (Feasibility Study) was funded by SAAMS. Funding for Phase I of the project has been secured through a $426,720 Emerging Energy Technology Grant from the Denali Commission to SAAMS. However, because these funds are federal, this amount cannot be used as cost-sharing for this project. Our funding request for Phase II will allow for the installation of a second heat pump, bringing the total development cost for this project to $722,580. A detailed breakdown of these costs is shown on the following page. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 14 of 19 10/7/2009 Phase 0 Phase 1 Heat Pump #1 Phase 2 Heat Pump #2 Total Development Cost Feasbility Study 9,280$ -$ -$ 9,280$ Contracted Construction -$ 304,800$ 204,700$ 509,500$ Final Design and Procurement Services -$ 45,720$ 30,705$ 76,425$ Construction Inspection Services -$ 15,240$ 10,235$ 25,475$ Project Management and Consultation -$ 12,400$ 12,400$ 24,800$ Contingency -$ 48,560$ 28,540$ 77,100$ Total Project Cost 9,280$ 426,720$ 286,580$ 722,580$ 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.) Operating and maintenance costs for the Phase I and II project: Electricity for glycol circulation pumps 7,868/year Electricity for heat pumps 52,718/year Maintenance of glycol/heat pumps 2,500/year Total anticipated O&M $63,086/year O&M will be funded from avoided fuel costs as part of SAAMS’ Alaska SeaLife Center annual operating budget. 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 There will be no power purchase/sale associated with this project; all heat produced by the proposed seawater heat pump system will be consumed within the ASLC facility. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 15 of 19 10/7/2009 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Our completed cost worksheet form is attached as Appendix B. Figures are based upon the economic feasibility study prepared by Andy Baker, PE on March 28, 2009, though some costs have been updated to reflect current market prices. The grant budget is attached as Appendix C. 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 Potential annual fuel displacement 57,653 gallons of heating fuel will be saved each year over the lifetime of the project. Anticipated annual revenue/incentives Since the energy generated from this project will not be sold, there will be no revenue/incentives. Non-economic benefits Implementation of this project will reduce CO2 emissions in the Seward area by 1,291,430 pounds annually. Coastal communities with access to seawater from ice-free bays and with reasonably priced electricity have the potential to replicate this innovative heating system. Alaska communities where this may be cost effective include Kodiak, St. Paul, Dillingham, and Sitka. The promise of this emerging technology may also motivate coastal communities to develop low-cost clean electrical power generation systems, such as wind or hydro, to provide the electricity needed to power the heat pump system. The seawater heat pump system shifts dependence from heating oil to electricity as the prime mover of heat, making this system an effective option to conventional fossil fuel heating systems. In coastal communities that have warm seawater temperatures extending into the winter months (like Seward), the potential exists for expanding this technology into a district heating system, such as those used in selected coastal communities in northern Europe. Large seawater heat pumps supply warm source water to a number of buildings along a buried insulated loop pipe that is tapped to serve customers along the route. These customers can in turn use their own “off-the- Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 16 of 19 10/7/2009 shelf” heat pumps to lift the warm source water temperature to 120°F for building heat and domestic hot water. 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 Alaska SeaLife Center already operates a complex heating and pumping system/infrastructure. Six full-time life support and building maintenance staff members monitor and operate the building’s marine life support and HVAC systems with coverage seven days a week. Life support staff isolates, regulates, and adjusts water flow to each area of use by adjusting pump speed, the number of valves that are open or closed, and the number of pumps running. They also continuously monitor well conditions during low tide situations to prevent loss of seawater supply. The ASLC has a well-established program for monitoring and reporting building and operating systems. Monitoring, testing and maintenance of the seawater heat pump system will become part of daily standard operating procedure for building maintenance and life support personnel. The installed seawater heat pump will be managed, operated and maintained as an integral component of the ASLC heating system. In addition to routine maintenance, replacement of 100,000 hour compressor bearings are anticipated at year 12-15 of operation for a present day cost of $12,000 per heat pump. It is our long-term management goal to prove this technology for application in other areas of Alaska. In the mid- to long-term, the City of Seward and SAAMS plan to work with its Seward partners to expand this technology for application in residential and commercial district heating; University of Alaska Seward Marine Center utilization for laboratory, warehouse and office heating; Alutiiq Pride Shellfish Hatchery heated water for larvae and algae culture; and as a source of heating for the Kenai Fjords National Park's planned visitor center/administration facility. Operations and maintenance will be funded from avoided fuel costs as part of SAAMS’ Alaska SeaLife Center annual operating budget. 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. SAAMS has completed a feasibility study, which included a detailed economic analysis and preliminary design. Work can begin according to the timeline provided above immediately upon Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 17 of 19 10/7/2009 receipt of award. Funding for Phase I of the project has been secured through a $426,720 Emerging Energy Technology Grant from the Denali Commission to SAAMS. The formal grant award will be issued by January 2010, so work necessary to begin Phase II of this project will be well underway by the time this award is made. 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. As the owner of the Alaska SeaLife Center facility, leased and operated by the Seward Association for the Advancement of Marine Science, the City of Seward is has direct role in ensuring that the Center remains financially viable and continues to fulfill its mission to understand and maintain the integrity of the marine ecosystems of Alaska through research, rehabilitation, conservation and public education. The city has particular interest in this technology's potential city-wide application for residential and commercial district heating, as well as opportunities to extend the technology to the Seward Marine Center of the UAF School of Fisheries and Ocean Sciences, the Alutiiq Pride Shellfish Hatchery, and future headquarters building for the Kenai Fjords National Park. The Kenai Fjords National Park is continuing in its efforts to obtain funding for a visitor center and administration building to be located in close proximity to the Alaska SeaLife Center. By adding heat pump technology to the design, the building will become more competitive in the federal process for awarding new construction by allowing the Park to reach a "Net-Zero" and LEED Platinum design. The Alutiiq Pride Shellfish Hatchery depends on maintaining temperatures of water above ambient sources for production of larvae and algae cultures, which added $40,000 to their annual building heating requirements, or 15-20% of their annual operating overhead. The hatchery has an existing seawater intake system and is very interested in the Alaska SeaLife Center's demonstration of a seawater heat pump system for application at the hatchery. The Seward Marine Center, the marine operations unit of the School of Fisheries and Ocean Sciences of the University of Alaska Fairbanks, is involved in an ongoing project of the National Science Foundation to build and operate the Alaska Region Research Vessel, a 254-foot ice capable oceanographic research vessel. Seward is the intended homeport for the ship, utilizing the Seward Marine Center's facilities. Homeporting of the ARRV will necessitate an upgrading of the SMC physical plant, and the University is interested in the seawater heat pump technology proposed to be demonstrated at ASLC as a heating source to take advantage of SMC's existing seawater system. A letter of support from SAAMS attached as Appendix D. Letters of support originally drafted for SAAMS’ grant application to the Denali Commission from Kenai Fjords National Park, Alutiiq Pride Shellfish Hatchery, and Seward Marine Center are also included with Appendix D. The full feasibility study conducted by YourCleanEnergy is also attached as Appendix E. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 18 of 19 10/7/2009 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 costs below are based upon the estimates provided in SAAMS’ feasibility study of March 2009. Direct Labor & Benefits There will be no direct labor/benefit costs associated with this project. Travel & Per Diem There will be no travel costs associated with this project. Equipment Prime mover equipment costs have been estimated at $98,500, which includes the cost of the 90- ton rotary screw heat pump ($81,000), shipping to Seward ($5,000), a sound reduction package for the heat pump ($3,500), a 7.5hp glycol pump ($5,000), and new propylene glycol (PG) for the 25% PG chilled water loop ($4,000). Materials & Supplies There will be no materials/supplies costs associated with this project. Contractual Services Final design and procurement services $30,705 Construction inspection services $10,235 Project Management and Consultation $12,400 Total Contractual Services $53,340 Construction Services The cost of contractor furnished materials and labor are included in this estimate ($106,200). Other An 11% contingency for design, procurement, and construction costs has been budgeted ($28,540), largely because this innovative heat pump system has not been fully designed. Additionally, the cost estimate provided as a result of our feasibility study is conceptual; we may find that additional/different components are needed once the system is being installed. The number of suppliers for the equipment required for this project is limited, so supply and cost are subject to high variability due to limited competition. ALASKA 0: ,-. ENERGY AllTHORlfY Renewable Energy Fund Grant Application Round 3 - - - - - - SECTION 9 - ADDITIONAL DBCUMENTATlON AND CERTIFICATION i 1 SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. 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. 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. F. CERTIFICATION The undersigned.certifies that this applica'tion 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. I I I I Print Name ( Phillip Oates I I I I Signature AEAI 0-01 5 Grant Application Page 19 of 19