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HomeMy WebLinkAboutJuneau Gastineau Elementary School Geothermal Loopfield App Renewable Energy Fund Round 3 Grant Application AEA 10-015 Application Page 1 of 20 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 20 10/7/2009 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) City & Borough of Juneau Type of Entity: Local Government Mailing Address 155 South Seward Street, Juneau AK 99801 Physical Address 155 South Seward Street, Juneau AK 99801 Telephone (907) 586-5240 Fax (907) 586-5385 Email Rod_Swope@ci.juneau.ak.us 1.1 APPLICANT POINT OF CONTACT Name Rod Swope Title City Manager Mailing Address 155 South Seward Street, Juneau AK 99801 Telephone (907) 586-5240 Fax (907) 586-5385 Email Rod_Swope@ci.juneau.ak.us 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer in accordance with 3 AAC 107.695 (a) (1), or X A local government, or A governmental entity (which includes tribal councils and housing authorities); Yes 1.2.2. Attached to this application is formal approval and endorsement for its project by its board of directors, executive management, or other governing authority. If the applicant is a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate Yes or No in the box ) 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 20 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) Gastineau Elementary School Geothermal Loopfield 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. Gastineau Elementary School is located at 1507 3rd Street, Douglas AK 99824. The community of Juneau will benefit from this project. 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 & Borough of Juneau is proposing the design and construction of a ground source heat pump system to serve the heating needs at the Juneau School District’s Gastineau Elementary School. The community of Juneau recently approved the sale of $11.8 million in bond debt to fund a comprehensive renovation of the school facility. The building’s heating plant and distribution system are to be replaced as part of the project. The City & Borough of Juneau Assembly is interested in reducing the carbon footprint of Juneau and the Juneau School District is interested in reducing the operating costs of their facilities. The conversion of the school’s heat plant from oil-fired boilers to a ground source heat pump provides a unique opportunity to achieve goals of both the City & Borough of Juneau and Juneau School District. The Renewable Energy Fund Grant request herein is for the additional design and construction costs of the ground source heat pump system as compared to a traditional oil-fired heat system. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 4 of 20 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.) When the Gastineau Elementary School Renovation project was originally proposed to Juneau voters in October 2009, it was assumed that the school would replace its existing oil-fired boilers with an oil and electric dual-fuel heat system. However, upon discussing the use of electric boilers with the local electric utility, Alaska Electric Light and Power (AEL&P), and learning the nuances of their revised dual-fuel power program, it became apparent that electric boilers are not economically feasible or practical at Gastineau Elementary School. Further discussions of how the project might achieve the City & Borough of Juneau goal of reducing its carbon footprint and the Juneau School District goal of reducing energy costs led to exploration of the feasibility of using a ground source heat pump system in lieu of a conventional heat system. The preliminary analysis found that there is sufficient area on site for a vertical geothermal loopfield and that the ground source heat pump system would reduce annual energy expenditures approximately $30,000 to $40,000 when compared to oil and electric systems respectively. The operational savings generated by a ground source heat pump system will enable the Juneau School District to allocate more funds towards the education of students. The site specific nature of the ground source heat pump system will reduce the carbon footprint of the Gastineau Elementary School. When compared to a traditional oil fired heat system, the ground source heat pump system eliminates oil combustion exhaust fumes, the hazards associated with transportation and storage of fuel oil, and the pollution and energy expenditures associated with shipping of fuel oil. When compared to a traditional electrical heat system, the ground source heat pump system places a lighter burden on the community’s overtaxed electrical infrastructure and capacity, thus reducing the need for new development of regional hydro-electric resources and helps keep electric utility rates lower. The use of a ground source heat pump system at a local elementary school will increase public awareness of renewable energy alternatives within the community, and possibly on a larger scale, and could serve as an educational tool within the school. The construction and operation of the ground source heat pump system will provide experience to local contractors and Juneau School District maintenance staff that could translate to reduced construction and maintenance costs for future ground source heat pump systems. 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. It is estimated that design and construction of the geothermal loopfield and heat pump system at Gastineau Elementary School will cost ~$1.25 million more than a comparable oil-fired boiler heat system. A portion of recently approved local bond sale funds for Gastineau Elementary School Renovation will comprise roughly 20% ($250,000) of the project funding with Alaska Energy Authority Renewable Energy Grant funds to comprise the remaining 80% ($1,000,000) of the project funds. It is anticipated that the local bond sale funds for Gastineau Elementary School are eligible for 70% debt reimbursement through the Department of Education & Early Development’s debt retirement program. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 5 of 20 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. $ 1,000,000 2.7.2 Other Funds to be provided (Project match) $ 250,000 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $ 1,250,000 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) $ 1,250,000 2.7.5 Estimated Direct Financial Benefit (Savings) $ 37,000 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.) $ 49,000 Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 6 of 20 10/7/2009 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. Nathan Coffee, City & Borough of Juneau Project Manager, is overseeing the design and construction of the project. His resume and references are attached. Helen Davies CPA, City & Borough of Juneau Accountant, is overseeing the project funding and will provide financial reporting to grant agencies. Her resume and references are attached. 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.) Project design is to be completed by November 1, 2010. Project will be advertised for bid as part of the larger Gastineau Elementary School Renovations construction project November 5, 2010. Bids will be opened for the project on December 3, 2010. Barring any unforeseen circumstances, Notice to Proceed with construction should be issued by January 14, 2011. Construction to begin at the completion of the 2010-2011 school year (a schedule for this school year has not been adopted yet but will most likely occur at end of May). It is anticipated that the ground source heat pump system well field will be installed in conjunction with the building site work in the summer of 2011. Completion of the ground source heat system is anticipated in August 2011 with completion of Gastineau Elementary School Renovations to occur in September 2013. Operations reporting will continue a minimum of 5 years from the initial implementation of the ground source heat pump system. 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.) Submit AEA Renewable Energy Fund Grant Application 11/06/2009 Select Consultants & Sign A/E Agreement 12/14/2009 Receive Funding Approval from AEA and Establish Grant Agreement 07/01/2010 Drill Test Holes & Perform Conductance Tests 07/08/2010 Complete Schematic Design & Cost Estimate 08/02/2010 Complete 50% Design & Cost Estimate 08/30/2010 Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 7 of 20 10/7/2009 Complete 95% Design & Cost Estimate 10/04/2010 Apply for Permits 10/11/2010 Receive Permit Approvals 11/30/2010 Complete Bid Documents 11/01/2010 Advertise for Construction Bids 11/05/2010 Award Construction Contract 01/14/2011 Review Contractor Submittals 03/25/2011 Mobilize Construction Equipment 05/31/2011 Playground Demolition and Excavation 06/14/2011 Drill Boreholes and Install Vertical Piping 07/26/2011 Install Horizontal Piping & Backfill 08/15/2011 Install Boiler Room Equipment 08/15/2011 Final Acceptance, Start-up and Commissioning 08/29/2011 Operations Reporting (~5 years of annual reporting) 12/10/2016 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 Request for Proposals for Design of the Gastineau Elementary School Renovations was issued 10/23/09. The City & Borough of Juneau and Juneau School District hope to select a design consultant team and execute a professional services agreement by 12/14/2009; therefore, information regarding the design professionals who will undertake the design work associated with this project is not available at this time. The construction contactor and subcontractors will be selected by 01/14/2011 through the competitive bid process per the City & Borough of Juneau’s procurement regulations; therefore, information regarding the construction contractors who will undertake the work is not available at this time. Major equipment purchases are to be included in the construction contract. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Nathan Coffee’s office will be on the construction job site during construction. He will monitor and record project progress for the duration of the Gastineau Elementary School’s construction. He will provide one or two page monthly status reports by email to the Authority that identify the project progress, regulatory and compliance issues, possible delays, and photos of the work. He will work with Helen Davies of the City & Borough of Juneau Finance Department to include an accounting of the monthly and overall project grant income and expenditures in the monthly report. Quarterly reports will also be furnished that summarize the same project information on a Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 8 of 20 10/7/2009 quarterly basis. Nathan and Helen will also be responsible for providing additional submittal items as defined in the Authority’s project agreement. Nathan will coordinate with the Juneau School District to provide the appropriate operations information. 3.6 Project Risk Discuss potential problems and how you would address them. Lack of sufficient funding for the construction of the ground source heat pump system is a potential problem for the project. In addition to needing to garner financial assistance from the Alaska Energy Authority, the City & Borough of Juneau needs to receive favorable construction bids for the work. Assuming funding is available, the City & Borough of Juneau will investigate the potential of bidding the Gastineau Elementary School loopfield work in conjunction with similar work proposed at the CBJ Transit Maintenance facility in hopes that increasing the amount of drilling work will produce a more competitive bidding environment and defray mobilization costs for the work. If sufficient funding is not secured through the Alaska Energy Authority, the Juneau School District and City & Borough of Juneau may petition the CBJ Assembly for a low interest loan or other means of funding the ground source heat pump system. Another potential problem is the drilling of the well field. Unforeseen subsurface conditions could be encountered that could impact the depth or layout of the wells. While a test well has not been drilled on site, geologic conditions of the vicinity indicate that solid bedrock will most likely be encountered early in the borehole drilling. While bedrock drilling increases fuel and equipment costs associated with the work, it decreases the number of unforeseen problems that could arise during drilling of boreholes. However, should the well field construction encounter subsurface problems, increasing number of boreholes and reducing their depth are potential mitigation strategies. Another potential problem is generating the anticipated design heat transfer rates from the ground source heat pump system. Design parameters for sizing of the Gastineau Elementary School geothermal loopfield were based on conservative conclusions drawn from review of the conductance test results at Dimond Park Aquatic Center and Juneau Airport. However, should actual site conductance test information prove less favorable than initial assumptions, increasing number of boreholes and/or increasing their depth are potential mitigation strategies. Ultimately, performance of the ground source heat pump system will not be precisely known until system is in operation. A back-up oil-fired boiler will be maintained in the school’s Boiler Room to ensure that sufficient heat for the school is available. The oil-fired boiler is to be a back-up heat system and is to be used only if ground source heat pump system is down for repair or requires supplemental heat to meet the heating load of the facility. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 9 of 20 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. Due to the heat retention characteristics of subsurface bedrock, the amount of potential energy that can be extracted utilizing a ground source heat pump system, albeit in small increments, is virtually limitless. However, the high initial capital investment required for a heating loop and well field has limited the use of ground source heat pumps in the Juneau area. As energy costs have risen in recent years, the anticipated payback period for the investment of initial construction capital for a ground source heat pump system has decreased to the point where ground source heat pump systems are economically viable. The primary cons of the ground source heat pump system are the high initial capital investment and open land area required to construct the system. These factors have limited the use of ground source heat pumps in the Juneau area. Another con of the ground source heat pump system is the higher annual maintenance expenditures required to operate the system when compared with conventional electric heat systems. Unfamiliarity with ground source heat pump systems could pose a bit of a con as compared to traditional heat systems until the Juneau School District maintenance staff becomes accustomed to the maintenance and repair activities associated with the ground source heat pump system. The primary pros of the ground source heat pump system are the low energy consumption of the heat source and the environmentally friendly nature of the heat system. The ground source heat pump system is projected to reduce annual energy expenditures for heating the Gastineau Elementary School approximately $30,000 to $40,000 when compared to electric and oil systems, respectively. Another pro of the ground source heat pump system at the Gastineau Elementary School is the public acceptance and recognition that will be brought to sustainable alternative energy technologies, which could lead to broader use of similar heat systems elsewhere in the region. Such a trend could reduce the import of fuel oil for heating and eliminate the exhaust associated with its combustion; the reduction of hazardous exhaust is especially important in an elementary school environment due to children’s greater susceptibility to health problems caused by the exhaust. A reduction in electrical consumption would allow AEL&P to reduce the amount of diesel generated power provided to the area and maintain the adequacy of the existing hydroelectric infrastructure. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 10 of 20 10/7/2009 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. Gastineau Elementary School currently has two, horizontal, fire tube, oil-fired boilers that generate heat for the school’s heat distribution system. The 44-year old Cleaver Brooks boiler serves as the primary boiler for the school and operates at ~75 to 80% efficiency. The Cleaver Brooks boiler is rated to provide a maximum 2,678 MBH. The Cleaver Brooks boiler was installed in conjunction with a classroom wing addition in 1965. A Birchfield boiler serves as the stand-by, back-up boiler for the school and operates at ~55 to 60% efficiency. The Birchfield boiler is rated to provide a maximum 2,479 MBH. Both boilers run on No. 2 diesel. The Birchfield boiler was installed in conjunction with the original school construction which was completed in 1957 so it is 52 years old. 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 proposed ground source heat pump system will use more electricity than an oil fired heat system, but far less electricity than an electric heat system. Alaska Electric Light & Power (AEL&P) is a privately owned, publicly regulated utility that provides power to Juneau. Currently, AEL&P generates hydroelectric power at the Snettisham Dam and provides the power to Juneau via suspended and underwater transmission lines. AEL&P recently completed construction of a second hydroelectric facility at Lake Dorothy that increased the hydroelectric power capacity of the Juneau area by 20%. Diesel generators provide additional power to Juneau in periods of outage or high demand. Currently, AEL&P utilizes diesel generators during the winter to supplement hydroelectric supply. This could increase in the future if heating oil price increases drive residents to use electrical heat in lieu of oil. AEL&P’s hydroelectric capacity is currently overtaxed by Juneau’s demand, so the addition of Lake Dorothy’s power will help to align the hydroelectric infrastructure capacity with that of local demand, but will not satisfy long term demand in the community. The use of a ground source heat pump system at Gastineau Elementary School will marginally increase electric consumption of the facility when compared with its current consumption utilizing oil-fired boilers. However, this increase in consumption is not significant enough to jeopardize ability of the local utility infrastructure to meet the electric power needs of the neighborhood. A new electrical service to the school was anticipated as part of the Gastineau Elementary School Renovations project regardless of the construction of the ground source heat pump system, so the replacement of the school’s existing electrical service will be sized as required to meet the required electric loads of the ground source heat pump system as well as other electrical loads of the facility. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 11 of 20 10/7/2009 Alaska Electric Light & Power (AEL&P) is a privately owned, publicly regulated utility that provides power to Juneau and some surrounding communities. AEL&P also sells electrical power to cruise ships and Greens Creek Mine. Due to the addition of the Lake Dorothy hydroelectric supply and the small increase in electric consumption required by the heat pump system, the use of ground source heat pumps at the Gastineau Elementary School is projected to have little or no impact on AEL&P customer rates. 4.3 Proposed System Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, and environmental issues. 4.3.1 System Design Provide the following information for the proposed renewable energy system: • A description of renewable energy technology specific to project location • Optimum installed capacity • Anticipated capacity factor • Anticipated annual generation • Anticipated barriers • Basic integration concept • Delivery methods This project proposes the design and construction of a ground source heat pump system to serve the heating needs at the Gastineau Elementary School. The system consists of the following: • Two closed-loop geothermal loopfields comprised of (40) 370’ deep wells each located on the Gastineau Elementary School playground, • Underground distribution piping between the school’s Boiler Room and the geothermal loopfields, • Boiler room heat pump equipment including circulation pumps, heat pumps, controls, and related equipment. The proposed ground source heat pump system will be designed to meet 100% of the facility’s peak heating load; roughly 1,288,000 BTUH. Theoretically, the ground source heat pump system could generate 11,282,880,000 BTU of heat energy annually, but the Juneau School District will regulate system operation utilizing automatic controls so that it only generates the heat required to maintain comfortable ambient temperature within the facility during the school’s hours of operation. An anticipated barrier to utilizing the ground source heat pump system is the high operating temperature of circulation fluid required by the building’s current radiant heat distribution system. However, the building heat system was scheduled to be replaced as part of the Gastineau Elementary School Renovations project and a forced-air heat system that can operate on the cooler circulation fluid temperatures will be utilized. The utilization of the ground source heat pump system at Gastineau Elementary School will be integrated into heat plant operations as the school’s heat distribution system is updated. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 12 of 20 10/7/2009 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 Gastineau Elementary School site is located within the community of Douglas on Douglas Island. The school site and an adjacent baseball field are owned by the City & Borough of Juneau. There are not any known land ownership or access issues that would jeopardize the construction of a ground source heat pump system at the Gastineau Elementary School. 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 Renovation of the Gastineau Elementary School and associated ground source heat pump system construction will require the following permits: • Building Permit from City & Borough of Juneau Community Development Department Design documents will be submitted to City & Borough of Juneau Community Development Department for permit review by 10/11/2010. A potential barrier to timely issuance of the building permit is the lengthy review process that often accompanies large public works projects. However, due to the scheduled construction start date of June 2011 delays associated with permitting are not 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 proposed location of the geothermal loopfield beneath the Gastineau Elementary School playground, a previously developed site, eliminates potential environmental and land use issues that may arise if this were proposed on a virgin site. Environmental or land use conflicts with threatened or endangered species, habitat and wetland issues, archaeological and historical resources should not arise due to the developed nature of the site. The Gastineau Elementary School is an existing facility so aviation conflicts and telecommunication interference are not anticipated. Since the majority of the proposed ground source heat pump system at the Gastineau Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 13 of 20 10/7/2009 Elementary School will be concealed below grade or within the school building, no visual or aesthetic impacts are anticipated. The playground will be restored and improved as part of the Gastineau Elementary School Renovations project upon completion of the geothermal loopfield construction. The proposed ground source heat pump system is a closed loop system utilizing non-toxic heat transfer fluid so environmental impacts are minimal. 4.4 Proposed New System Costs and Projected Revenues (Total Estimated Costs and Projected Revenues) The level of cost information provided will vary according to the phase of funding requested and any previous work the applicant may have done on the project. Applicants must reference the source of their cost data. For example: Applicants Records or Analysis, Industry Standards, Consultant or Manufacturer’s estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following: • Total anticipated project cost, and cost for this phase • Requested grant funding • Applicant matching funds – loans, capital contributions, in-kind • Identification of other funding sources • Projected capital cost of proposed renewable energy system • Projected development cost of proposed renewable energy system Total Anticipated Project Cost = $1,250,000 Total Project Cost - Design & Permitting Phase = $208,054 Total Project Cost - Construction, Commissioning, Operating Phase = $1,041,946 Requested Grant Funding = $1,000,000 Applicant Matching Funds = $250,000 Other Funding Sources City & Borough of Juneau Projected Capital Cost of Proposed Renewable Energy System = $1,061,235 Projected Development Cost of Proposed Renewable Energy System = $188,765 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for new facilities constructed and how these would be funded by the applicant. (Note: Operational costs are not eligible for grant funds however grantees are required to meet ongoing reporting requirements for the purpose of reporting impacts of projects on the communities they serve.) The projected operating and maintenance costs for the proposed ground source heat pump system at the Gastineau Elementary School are ~$26,600; ~$23,000 for electricity and ~$3,600 for Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 14 of 20 10/7/2009 routine maintenance. The ground source heat pump system is projected to decrease annual energy costs 138% when compared with an oil heat system. Grant funding for operations and maintenance of the ground source heat pump system at the Gastineau Elementary School is not requested. Operations and maintenance of the system will be funded and performed b y the Juneau School District. 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 This project does not provide the opportunity to purchase or sell electrical power. 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. See attached cost worksheet for a summary of the project costs. Assumptions regarding the construction cost of the geothermal loopfield are based on bid results from unit price bids for similar work at Juneau Airport and Dimond Park Aquatic Center. The Juneau Airport and Dimond Park Aquatic Center projects were bid together in the spring of 2009 with the work occurring in the summer of 2009. These construction costs were escalated 7.5% for the proposed Gastineau Elementary School loopfield work to be undertaken in summer of 2011. A 12% adder was applied to drilling work for drilling in the anticipated bedrock at the Gastineau site rather than sand and gravel that was prevalent at the Juneau Airport and Dimond Park Aquatic Center sites. This adder was derived from conversations with Ken Brew of Bertram Drilling who noted that the higher cost of rock drilling is somewhat, but not entirely, offset by the reduction in problems often encountered in less stable soils. Fees for consultant design and inspection services were derived from fees associated with work for the Juneau Airport and Dimond Park Aquatic Center work. The primary expense of design work is drilling of test wells and performing conductance tests at these wells. Several test wells and conductance tests, rather than just a single well and test, are proposed at the Gastineau site, thus increasing design costs for the project when compared to the Juneau Airport and Dimond Park Aquatic Center. Three test wells of varying depths are to be drilled across the extent of the proposed geothermal loop field to provide better information regarding subsurface conditions across the site and to provide a better understanding of how variations in well depth may affect conductance test results. This will allow the loopfield to be designed in such a way that it maximizes its heat gain potential. The test wells will be incorporated into final loopfield construction so they can also be considered a capital cost. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 15 of 20 10/7/2009 SECTION 5– PROJECT BENEFIT Explain the economic and public benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following: • Potential annual fuel displacement (gal and $) over the lifetime of the evaluated renewable energy project • Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or cost based rate) • Potential additional annual incentives (i.e. tax credits) • Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) • Discuss the non-economic public benefits to Alaskans over the lifetime of the project The proposed ground source heat pump system is projected to save ~$920,000 in energy costs when compared with conventional oil heat systems over a 25 year period assuming inflation of the price of oil is equivalent to the discount rate applied to capital over the study period. It is projected that a conventional oil heat system will require 28,000 gallons of fuel oil to meet the Gastineau Elementary School’s annual heating load. Over a 25 year period the proposed ground source heat pump system will eliminate the consumption of 700,000 gallons of fuel oil. The proposed ground source heat pump system is projected to reduce annual energy expenditures approximately $30,000 to $40,000 when compared to conventional electric and oil heat systems, respectively. While the project does not generate revenue through the generation of electrical power, the ability of the ground source heat pump system to meet the heating needs of the Gastineau Elementary School utilizing an inexpensive renewable energy resource will allow the Juneau School District to allocate operating revenue elsewhere. The City & Borough of Juneau is not aware of additional annual incentives or revenue streams that might be available due to the use of the proposed ground source heat pump system, but with the increasing focus on energy independence such additional benefits may soon become available. As owner/manager of the Gastineau Elementary School, the City & Borough of Juneau and Juneau School District will continue to monitor these opportunities in an effort to enhance the facility’s cost recovery efforts. This project provides an opportunity for the City & Borough of Juneau, Juneau School District, and the public to learn about the economic sustainability and viability of ground source heat pumps. This project could help change the way the City & Borough of Juneau and the private sector address the heating needs of future facilities. The renewable nature of this plentiful energy resource is especially attractive to Juneau residents who recently experienced the economic hardship that the loss of inexpensive hydroelectric power creates. Just as the loss of inexpensive hydroelectric power due to avalanches brought greater awareness among all ages as to the importance of energy conservation, the use of ground source heat pumps at the Gastineau Elementary School could bring greater enlightenment regarding alternative renewable energy sources, especially to a younger generation of students who occupy the facility. The lessons learned from the construction and operation of the proposed ground source heat pump system will almost certainly increase local familiarity with the technology and should reduce construction costs of future projects. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 16 of 20 10/7/2009 In addition to the great educational benefit to be derived from the proposed project, the environmental benefit of eliminating the consumption of 700,000 gallons of fuel oil over 25 years of facility operation should not go unnoticed. From the elimination of environmental hazards associated with oil extraction, transporting crude oil, transporting refined fuel oil, and then storing it on site, to the elimination of the health hazards associated with air pollution from the oil manufacturer and shipping to the health hazards associated with its combustion, it makes the project seem worthwhile even if the ground source heat pump system was not providing an economic benefit. In an effort to quantify the economic value of the project’s public benefit to Alaskans we have utilized US EPA information below regarding the health risks associated with emissions from oil- fired boilers at the school and operation of diesel power equipment required to produce and transfer fuel oil to the school: Excerpt from US EPA National Emission Standards for Hazardous Air Pollutants for Industrial/Commercial/Institutional Boilers and Process Heaters “The HAP emitted by facilities in the boiler and process heater source category include arsenic, cadmium, chromium, hydrogen chloride (HCl), hydrogen fluoride, lead, manganese, mercury, and nickel. Exposure to these substances has been demonstrated to cause adverse health effects such as irritation to the lung, skin, and mucus membranes, effects on the central nervous system, kidney damage, and cancer.” US EPA Report to Congress: Highlights of the Diesel Emissions Reduction Program estimated that EPA grants for emission fuel usage reductions for diesel-powered vehicles and equipment will generate ~$8 million in fuel savings and translate to public health benefits of $580 million to $1.4 billion. This project proposes to generate ~$37,000 in fuel oil savings annually b y entirely eliminating its consumption at the school site. Based on an extrapolation of the EPA’s estimated $580 million over a 25 year period based on $8 million in annual fuel savings and assuming that 50% of EPA’s estimated health benefit is a direct result of reduction in fuel usage, the annual public benefit to Alaskans is ~$49,000 or ~$1.2 million over a 25 year period (while a 25 year period has been used for calculation purposes, the geothermal heat system could continue to provide cost savings beyond 25 years to Alaskans). 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 Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 17 of 20 10/7/2009 The operations and maintenance of Gastineau Elementary School is provided by the Juneau School District. Juneau School District operations are funded by local, state, and federal public education contributions. The Juneau School District is committed to maintaining their school facilities in a proactive manner as attested to by the 50+ and 40+ year old oil-fired boilers that will be replaced as part of the Gastineau Elementary School Renovations project. As part of the construction contract, the Juneau School District maintenance staff will participate in training from equipment suppliers and installers to gain a better understanding of the maintenance requirements of the ground source heat system equipment. Operational issues with ground source heat pump system that could arise are primarily tied to the actual heat generation of the geothermal loopfield and recovery rates of the geothermal loopfield during times of peak heating loads. Further energy conservation measures from exterior envelope improvements to CO2 sensors at classrooms to control fresh air introduction will be considered during the design of the Gastineau Elementary School Renovations project to mitigate potential operational issues associated with the performance of the geothermal loopfield. Commissioning of the ground source heat pump system and other building mechanical, electrical, and control systems will be included in the professional services agreement for the project. The commissioning of all integrated building systems is essential for the building systems to interact as designed and function in their most efficient manner. Commissioning is not just recommended, it is mandatory. The Juneau School District maintenance staff will also participate in the facility commissioning. Monitoring of the facility’s energy consumption and costs is also recommended to determine the effectiveness of the ground source system and as a means to gauge the potential of ground source heat pumps at other City & Borough of Juneau and Juneau School District facilities. Monitoring and reporting of ground source heat pump system operations to AEA, as required by the grant agreement, will be provided. Currently, the Juneau School District aggressively tracks energy consumption at their school facilities, so monitoring and reporting of the facility’s energy consumption will continue even after AEA reporting requirements are met. 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 City & Borough of Juneau and Juneau School District have performed a preliminary feasibility analysis and geothermal loopfield design to establish the viability of the proposed project. The analysis showed that it is feasible to construct an appropriately sized geothermal loopfield on the existing school site and that the project will reduce the operating cost of the facility. The City & Borough of Juneau and Juneau School District have reviewed the preliminary feasibility analysis with local engineers who approved the methodology of the analysis and felt the conclusions drawn were valid. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 18 of 20 10/7/2009 The City & Borough of Juneau and Juneau School District have also met with Alaska Electric Light and Power representatives to review electrical cost at all school district facilities. Discussions regarding energy reductions through operating methods that the school district could employ at existing facilities and new technologies that could be incorporated in future school renovations also occurred. The City & Borough of Juneau, Juneau School District, and Alaska Electric Light and Power will continue to work together to reduce energy consumption and associated costs at school district facilities. The City & Borough of Juneau and Juneau School District are currently advertising for design services for the Gastineau Elementary School Renovations project and should have a design team under contract by December 14, 2010. Upon receipt of grant approval from AEA, the design team will begin design of the geothermal loopfield immediately with drilling of test wells and performance of conductance tests (please refer to attached “Grant Budget Form” that details specific milestones and schedule for each task). It is the intent of the City & Borough of Juneau and Juneau School District to construct the geothermal loopfield and associated heat pump system improvements during the summer of 2011. SECTION 8– LOCAL SUPORT Discuss what local support or possible opposition there may be regarding your project. Include letters of support from the community that would benefit from this project. The City & Borough of Juneau Assembly is currently considering implementation of goals to reduce the city’s carbon footprint, and the use of a geothermal heat source at Gastineau Elementary School is in keeping with this vision, thus the City & Borough of Juneau Assembly supports the project. The Juneau School District also appreciates the value and cost savings such a system could bring to the Gastineau Elementary School, so they too support the project. The City & Borough of Juneau has received positive public feedback regarding the construction of geothermal loopfields at the Juneau Airport and Dimond Park Aquatic Center as the community of Juneau, as a whole, supports the use of renewable energy, supports the reduction in exhaust emissions, and supports the reduction of facility operating costs that these projects offer. Use of geothermal energy in conjunction with the Gastineau Elementary School Renovations project has already received public support from at least one member of the community as attested to by the attached letter from Mike Hekkers that was recently published in the Juneau Empire. Opposition to the project typically stems from the belief or concern that the ground source heat pump systems are not proven technology in Juneau. It is true that the Juneau Airport project and the Dimond Park Aquatic Center are not complete so no data regarding the actual heat production and cost savings of the ground source heat pump systems is available. However, Alaska Electric Light & Power utilizes ground source heat pumps at their headquarters in Juneau and have expressed satisfaction with the performance of the system and believe that the system was worth the initial investment. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 19 of 20 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 City & Borough of Juneau is requesting $1,000,000 in grant funds for the design and construction of a ground source heat pump system at Gastineau Elementary School. The project is estimated to cost $1,250,000 more than a comparable oil-fired boiler heat system. The City & Borough of Juneau plans to provide the remaining $250,000 from bond sale revenue from the Gastineau Elementary School Renovations project. Please see attached “Grant Budget Form” for more specific cost and schedule information. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 20 of 20 10/7/2009 SECTION 9 – ADDITIONAL DOCUMENTATION AND CERTIFICATION 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. F. 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 application for a renewable energy grant is truthful and correct, and that the applicant is in compliance with, and will continue to comply with, all federal and state laws including existing credit and federal tax obligations. Print Name Rod Swope Signature Title City Manager Date