HomeMy WebLinkAboutAngoon Heat Recovery App
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 1 of 12 11/10/2008
Application Forms and Instructions
The following forms and instructions are provided for 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.html
The following application forms are required to be submitted for a grant recommendation:
Grant Application
Form
GrantApp.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
Costworksheet.doc Summary of Cost information that should be addressed
by applicants in preparing their application.
Grant Budget
Form
GrantBudget.xls A detailed grant budget that includes a breakdown of
costs by task and a summary of funds available and
requested to complete the work for which funds are being
requested.
Grant Budget
Form Instructions
GrantBudgetInstr.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 a plan
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.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 2 of 12 11/10/2008
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Inside Passage Electric Cooperative
Type of Entity:
Non-profit electric coop.
Mailing Address
P.O. Box 210149, Juneau, Alaska, 99821
Physical Address
5601 Tonsgard Court, Juneau, Alaska 99801
Telephone
907-789-3196
Fax
907-790-8517
Email
jmitchell@alaska.com
1.1 APPLICANT POINT OF CONTACT
Name
Jodi Mitchell
Peter Bibb
Title
Manager/CEO
Operations Manager
Mailing Address
PO Box 210149, Auke Bay, AK 99821
Telephone
907-789-3196
Ext. 24
Fax
907-790-8517
Email
jmitchell@alaska.com
pbibb@ak.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)
X An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
An independent power producer, or
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 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.)
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 3 of 12 11/10/2008
SECTION 2 – PROJECT SUMMARY
Provide a brief 1-2 page overview of your project.
2.1 PROJECT TYPE
Describe the type of project you are proposing, (Reconnaissance; Resource Assessment/
Feasibility Analysis/Conceptual Design; Final Design and Permitting; and/or Construction) as
well as the kind of renewable energy you intend to use. Refer to Section 1.5 of RFA.
This project is ready for construction. Permitting is complete.
The grant request is for a diesel engine heat recovery system that will supply waste energy to neighboring
community school buildings.
The requested funding will provide a final design and construction of a heat recovery system to extract
waste heat from a new, AEA designed and constructed powerhouse upgrade completed in 2008. The
powerplant has a new diesel generator that could provide valuable recovered manifold heat to the local
Angoon schools.
The original powerhouse upgrade project funded and under construction original ly planned to have this
type of system employed. The project’s original funding was not adequate in 2008 $ to complete the heat
recovery system.
This proposed project will use available engine cooling water that is rejected (wasted) to the surrounding
air. The project will replace a system that was operational in the past and supplied the school district with
low-cost supplemental heat energy for their buildings heating loads.
2.2 PROJECT DESCRIPTION
Provide a one paragraph description of your project. At a minimum include the project location,
communities to be served, and who will be involved in the grant project.
The proposed project is located in Angoon, Alaska which is a remote native community with a population
of approximately 400 residents. Electricity is generated locally by diesel-electric generation. Most homes
and larger buildings, including the schools, use diesel as a heating fuel. The heat recovery project will
provide heat to the local schools and reduce their annual heating fuel requirement. IPEC is working
closely with the engineering firm, Alaska Energy and Engineering, Inc. to make this project successful.
2.3 PROJECT BUDGET OVERVIEW
Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and sourc e
of other contributions to the project. Include a project cost summary that includes an estimated total cost
through construction.
The anticipated project cost to retrofit an existing diesel engine and recover and distribute the heat to
neighboring buildings is as follows:
1. Engineering and Construction Management $ 40,000
2. Heat Recovery System Installation/Material $ 324,400
3. Powerhouse Configuration work completed in 2008 $ 72,000
4. Project Overhead Costs $ 61,500
5. Freight and De-mobilization $ 33,425
6. Miscellaneous $ 15,400
7. Contingency $ 71,209
Total 2008 Dollars $ 617,934
Less IPEC/AEA Powerhouse Matching (Item #3 above) ($ 72,000)
Grant Request……………………………………………………………………….$ 545,934
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 4 of 12 11/10/2008
(2.3 cont.)
With the help of the Alaska Energy Authority and Alaska Energy and Engineering, IPEC has invested
approximately $2.8 million in a new powerhouse for the city of Angoon in 2008. Included in the new
powerhouse are incremental provisions to facilitate the distribution of waste heat to local school buildings.
The estimated IPEC/AEA investment and matching funds is approximately $72,000.
2.4 PROJECT BENEFIT
Briefly discuss the financial benefits that will result from this project, including an estimate of economic
benefits (such as reduced fuel costs) and a description of other benefits to the Alaskan public.
The Angoon public schools are the direct benefactor of this project. By recovering waste heat from the
diesel generators using the cooling water jacket and delivering it to the schools, an estimated 26,000
gallons of diesel heating fuel could be avoided. With fuel averaging $4.00 per gallon, the savings to the
schools is estimated at $104,000 annually.
The proposed heat recovery system will decrease the air emissions and particulate matter that would
otherwise be present if the school did not receive the recovered heat and burned the additional diesel.
Overall, the benefits of a heat recovery system of the proposed nature are well known and documented.
The added fact that the waste energy being recovered will directly help the State sponsored school
system and the Angoon community as a whole is tremendous and important enough to pursue. It is good
business and will make power production more efficient and cost effective.
2.5 PROJECT COST AND BENEFIT SUMARY
Include a summary of your project’s total costs and benefits below.
2.5.1 Total Project Cost
(Including estimates through construction.)
$ 617,934.00
2.5.2 Grant Funds Requested in this application. $ 545,934.00
2.5.3 Other Funds to be provided (Project match) $ 72,000.00
2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $ 617,934.00
2.5.5 Estimated Benefit (Savings) Reducing Bldg Heating Costs $ 104,000.00 (@$4/gallon)
2.5.6 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.)
$
Simple Project Payback= 5.25 years
$546,000 Project Costs
$104,000 Estimated Annual Fuel Costs Savings to School
(26,000 gal/year estimated diesel fuel reduction for the school for building heating)
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 5 of 12 11/10/2008
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.
Type in your answer here and follow same format for rest of the application.
Project management will originate with Alaska Energy Authority. AE&E will contract with a project
management firm such as CE2. CE2 is currently completing a powerhouse upgrade project in
Angoon during the 2008/2009 year.
Peter Bibb, Operations Manager for Inside Passage Electric Cooperative is writing the grant application
and along with Keith Berggren will provide support and assistance as needed.
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.)
Early 2009 – The Angoon powerhouse reconstruction is completed with some provisions included to
allow the proposed heat recovery system to be added.
Mid 2009-Upon award and execution of a Renewable Energy Fund grant, the design details will be
available and complete. Procurement of the required material will take place.
Construction is estimated to take three months beginning in the Spring.
Commissioning exercises will follow with an approved and functioning system operating before the
heating season.
2008 Jan-Mar Apr-June July-Sept Oct-Dec
Start (2009)
95% Design +
Review +
Final Design Approval +
Grant Funding Approved +
Planning & Coordination ++++++++
Approval to Begin +
Order Material + ++++++++
Mobilize +
Begin Construction ++++++++
End Construction +
Commissioning ++
Final Acceptance +
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 6 of 12 11/10/2008
3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them.
Reference item 3.2 Project Schedule
Final Design: Prepared by Alaska Energy & Engineering, Inc. is expected to be completed in late 2008
Grant Funding: Anticipated to occur early in 2009
Construction: Must begin in June/July when weather is favorable and the ground is workable.
Completion: For the best results, the system should be operating before the heating season begins.
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.
Inside Passage Electric Cooperative is working with the engineering firm of Alaska Energy and
Engineering, Inc. to design, permit, and provide construction management along with Alaska Energy
Authority.
Construction labor will come from the local community with the foreman dispatched from the management
firm.
All major purchases and construction contracts will come from either AEA, AE&E, or the appointed
construction management firm.
As of the writing of this grant, IPEC is working and partnering with:
AEA Project Manager, J.C. Barger
Alaska Energy and Engineering, Inc.; Brian C. Gray, P.E., Project Engineer
Existing Contract: AEA has contracted with CE2 to rebuild Angoon’s powerhouse which includes
replacing a diesel engine and generator. The original design and construction included a waste heat
recovery system similar to the one described in this grant. Project delays caused the project to fall short
of money and the planned heat recovery system was cancelled.
Approximately $72,000 worth of equipment will be installed during the powerhouse rebuild. This
equipment will help facilitate the installation of the desired heat recovery system if grant money is
approved.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
AEA and AE&E are presently working with IPEC on this project. When grant funding becomes available,
IPEC will play a third-party to the installation. AEA will hire a subcontractor and project manager who will
provide verbal and written progress reports as required by AEA.
3.6 Project Risk
Discuss potential problems and how you would address them.
This project is located within a rural/remote community.
Access to the community is by boat or float plane. At times, these modes of transportation have inherent
problems. Weather and scheduling are the two largest. As long as the people involved remember and
account for these known obstacles, the problems posed are minor and workable.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 7 of 12 11/10/2008
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 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 for completion of each phase.
If some work has already been completed on your project and you are requesting funding for
an advanced phase, submit information sufficient to demonstrate that the preceding phases
are satisfied and funding for an advanced phase is warranted.
4.1 Proposed Energy Resource
Describe the potential extent/amount of the energy resource that is available.
Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be
available for the market to be served by your project.
The heat provided from a recovery system is derived from the combustion heat left over from burning
diesel fuel to generate electricity. If the available excess heat is not captured and used, it is radiated to the
atmosphere and wasted. The overall system efficiency is improved by recovering and distributing the
waste energy.
The proposed project will result in a end-use (school building) estimated annual diesel fuel savings of
26,000 gallons.
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.
Angoon’s electric generation facility consists of three diesel generator sets (genset) with a total capacity of
approximately 1,500 kw. The community’s load is typically between 250kw and 400kw. Their vo ltage
output is 480v 3-phase which feeds three -250kw overhead transformers. These transformers boost to a
7,200v distribution voltage and a majority of the community receives power by an overhead distribution
system.
The new CAT 3456 genset will become the prime mover for the community. The waste heat recovery
system will attach to this unit.
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.
Diesel fuel is delivered to Angoon by barge. The powerplant receives fuel oil directly from the barge. The
local fuel company has a small bulk fuel storage area where the barge can off-load requested quantities.
Fuel oil has reached over $5.00 per gallon and remains higher than most major Alaskan communities.
Any opportunity to reduce fuel consumption within the Angoon community is precious.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 8 of 12 11/10/2008
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
The Angoon school buildings will receive the recovered heat from the generator. If this system is installed
it is estimated the school will reduce their heating fuel use b y 26,000 gal/yr.
The prospect of reducing fuel use for Angoon’s school buildings is important. Like most Alaskan villages
and small communities, Angoon is crippled by high energy costs. Angoon wants this system installed.
4.3 Proposed System
Include information necessary to describe the system you are intending to develop and address
potential system design, land ownership, permits, and environmental issues.
4.3.1 System Design
Provide the following information for the proposed renewable energy system:
A description of renewable energy technology specific to project location
Optimum installed capacity
Anticipated capacity factor
Anticipated annual generation
Anticipated barriers
Basic integration concept
Delivery methods
The planned heat recovery system will use the diesel engine jacketed cooling water as the heat source.
Heat exchangers, pumps, and piping will deliver heat that would otherwise be wasted.
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 City of Angoon owns the property where the powerhouse is located. They also own the roadway
where the underground piping supply and return will transport the heated water. IPEC currently leases the
land where the powerhouse is located. The school received waste heat in the past. There is no
anticipated problems rebuilding the system and supplying the schools with heat.
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
All permits to install and operate the s ystem have been received.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 9 of 12 11/10/2008
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
None of the above areas are expected to cause issues.
4.4 Proposed New System Costs (Total Estimated Costs and proposed 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 $ 617,935
Requested grant funding $545,934
IPEC matching funds $ 72,000
Projected capital cost of proposed system $ 617,935
Projected development cost of proposed system $0
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.
Total anticipated project cost for this phase
Requested grant funding
The operating and maintenance costs for a heat recovery system are minimal. IPEC will work directly with
the school to ensure operating and maintenance is performed so the system stays functional.
This Application does not include a request for operating and maintenance costs.
4.4.3 Power Purchase/Sale
The power purchase/sale information should include the following:
Identification of potential power buyer(s)/customer(s)
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 10 of 12 11/10/2008
Potential power purchase/sales price - at a minimum indicate a price range
Proposed rate of return from grant-funded project
The recipients of the recovered heat will be the Angoon schools.
4.4.4 Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
Download the form, complete it, and submit it as an attachment. Document any conditions or
sources your numbers are based on here.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 11 of 12 11/10/2008
4.4.5 Business Plan
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.
Once the mechanical components are installed and commissioned, it is believed the best practice is for
IPEC take responsibility for the entire district heating system up to and including the heat exchangers in
each school facility. IPEC could charge for the heat delivered at a rate far below the avoided fuel cost and
still have more than enough income to cover the O&M costs. There seems to be great potential to work
out an arrangement that benefits both parties.
4.4.6 Analysis and Recommendations
Provide information about the economic analysis and the proposed project. Discuss your
recommendation for additional project development work.
See attached AE&E computer program results for the CAT 3456 Jacket Water.
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 avoided cost of ownership)
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
Already covered in grant application
SECTION 6 – GRANT BUDGET
Tell us how much your total project costs. Include any investments to date and funding sources,
how much is requested in grant funds, and additional investments you will make as an
applicant.
Include an estimate of budget costs by tasks using the form - GrantBudget.xls
Provide a narrative summary regarding funding sources and your financial commitment to the
project.
Already covered in grant application
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 12 of 12 11/10/2008
SECTION 7 – 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 6.
D. An electronic version of the entire application per RFA Section 1.6
E. Governing Body Resolution per RFA Section 1.4
Enclose a copy of the resolution or other formal action taken by the applicant’s
governing body or management that:
- authorizes this application for project funding at the match amounts indicated in
the application
- authorizes the individual named as point of contact to represent the applicant for
purposes of this application
- states the applicant is in compliance with all 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 Peter A. Bibb
Signature
Title Operations Manager
Date 11/10/08