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HomeMy WebLinkAboutUAF Chiller Grant AppALASKA Renewable Energy Fund Grant Application SECTION 1 — APPLICANT INFORMATION Name University of Alaska Fairbanks Type of Entity State-controlled institution of higher education (a governmental entity) Mailing Address Physical Address UAF Office of Grants and Contracts Administration 3295 College Road, 109 Administrative Services Center P.O. Box 757880, Fairbanks, AK 99775-7880 Fairbanks, AK 99775-7880 Telephone Fax Email (907) 474-7301 (907) 474-5506 f arcon(@uaf.edu 1.1 APPLICANT POINT OF CONTACT Name Title Mike Ruckhaus Senior Project Manager, Division of Design and Construction Mailing Address P.O. Box 758160, Fairbanks, AK 99775-8160 Telephone Fax Email (907) 474-5797 (907) 474-7554 mruckhaus fs.uaf.edu 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, or A local government, or X 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.) AEA 09-004 Grant Application Page 2 of 12 9/3/2008 99 . ALASKA Renewable Energy Fund ENERGY AUTHORITY Grant Application SECTION 2 — PROJECT SUMMARY Provide a brief 1-2 pace overview of vour oroiect. 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 enew you intend to use. Refer to Section 1.5 of RFA. Constriction. 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. This project will provide a central chilled water system for the West Ridge area of the University of Alaska Fairbanks campus. This central chilled water system will meet the cooling needs of the buildings on the West Ridge and the needs of the computer center. This project will replace the electrically -driven chillers that are in each building with a central absorption chilling facility. This cooling system will utilize steam heat that is curTently being wasted as its energy source. 2.3 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. Include a project cost summary that includes an estimated total cost through construction. This project will be funded by a $10 million dollar grant from the State of Alaska. The University of Alaska will bond the remaining $5 million dollars. 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 campus electric costs will be reduced by $400,000. • The campus building maintenance expenditures will be reduced by $100,000. • Cost of future buildings on West Ridge will be lower because less mechanical equipment will need to be installed. The buildings can also be smaller as less space is needed to house the mechanical equipment. This savings is estimated to be at least $200,000 per building • Over a thousand tons of CO2/year will not be generated. • Thousands of pounds of ozone depleting refrigerants will be removed from campus. 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.) $ 15,000,000 2.5.2 Grant Funds Requested in this application. $ 10,000,000 2.5.3 Other Funds to be provided (Project match) $ 5,000,000 2.5.4 Total Grant Costs (sum of 2.5♦2 and 2.5.3) - - $ 15,000,000 2.5.5 Estimated Benefit (Savings) $ 500,000 /year AEA 09-004 Grant Application Page 3 of 12 9/3/2008 ALASKA Renewable Energy Fund Grant Application 2.5.6 Public Benefit (If you can calculate the benefit in terms of $ 500,000/year dollars, please provide that number here and explain how you calculated that number in your application.) All of the saving from this project will be a public benefit. Some of the money saved will be less money that the University will ask the State to fund in operating fund request. Also the future capital requests to the State will be lower. The rest of the money saved will be savings for the students, faculty and staff. The other public benefit is an environmental one. This project will cause a reduction in electric power generation. The estimated reduction in emissions is over 1,100 tons of CO2 per year. This is in addition to the reduction of other pollutants such as NO, and SO, This same technology can be used in other parts of the state that have both a heating and a cooling need. AEA 09-004 Grant Application Page 4 of 12 9/3/2008 '� ALASKA Renewable Energy Fund /41K� ENEacvAcrHORiry Grant Application 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 entitv. state that in this section. Mike Ruckhaus, Sr. Project Manager with UAF Facilities Services, Division of Design and Construction, will be the project manager. See attached resume. 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.) Select A/E 2 months Schematic Design 2 months Design Development 3 months Construction Documents 6 months Bid and Award 2 months Construction 24 months Commissioning 3 months Project Completion 42 months after receipt of grant 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them_ The project milestones are planned on common practice for project management. Total project cost will be evaluated as design progresses to ensure the project stays within the funded amount. The project is using proven technology and standard principles of engineering, so there is no need to periodically assess the technical feasibility of the project. Milestone 1: Design The University will contract an A/E consultant to perform all elements of the design including absorbtion chiller specifications, civil and foundation, architectural, electrical and mechanical. The design will include the distribution system design and conversion of existing buildings to the district cooling system. Milestone 2: Construction The University will select and contract with a qualified contractor for the construction of the facility. The construction will include the procurement of major equipment (i.e chillers). Milestone 3: Commissioning The University will use a team with mcmbcrs from UAF, the A/E, chiller manufacturer, and construction contractor to start up the system and adjust the system for optimum efficiency. AEA 09-004 Grant Application Page 5 of 12 9/3/2008 ALASKA Renewable Energy Fund WE ENERGY AUTHORITY Grant Application 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 University intends to hire an A/E finn to perform design services on this project. The construction services will be procured by the University in accordance with AS36.30. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. The Project Manager will send monthly reports that document the progress of the project to the Authority. The monthly reports will document the current project costs as well as any updated cost estimates during design. The monthly reports will also assess the status of project risks. 3.6 Project Risk Discuss potential problems and how you would address them. The project is using proven technology that is available from multiple manufacturers. This reduces the technical risk of the project to a minimal level. The primary project risk is the cost estimating and cost growth. Although professional cost estimators will be part of the A/E team, market conditions can escalate costs above estimated amounts. This risk will be mitigated by adding an estimating contingency that is appropriate for the level of design to each estimate. During construction, the cost risks are from unknown underground conditions, and errors/omissions in the construction documents. These risks mitigated by having a contingency of about 9% of the construction costs included in the budget. A geotechnical investigation of the proposed site will be perfonned during design in order to identify conditions for the contractor. AEA 09-004 Grant Application Page 6 of 12 9/3/2008 /'';, ALASKA Renewable Energy Fund 4E , ENERGY AUTHORITY Grant Application 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. To meet the summer electric loads the University of Alaska Fairbanks has to waste over 180 million pounds of steam. Of that amount, 130 million pounds has the potential to be reused for the operation of an absorption chiller. An absorption chiller takes the heat from low pressure steam and generates chilled water that can be used for cooling buildings or equipment. At the present time, the West Ridge area of campus uses electric -powered chillers to cool the buildings. This electric power is being purchased (and generated) by the local utility (GVEA). The amount of power that is used to cool the West Ridge is over 2 million kilowatt hours per year. By utilizing the heat that is currently being wasted, the University will save money by reducing its electric load. The environment is positively affected, as GVEA will not have to generate as much electric power. 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 University of Alaska Fairbanks operates a combined heat and power plant. The plant was built in 1964 and has been upgraded many times. This plant burns a combination of coal, fuel oil and natural gas in industrial boilers. The steam from the boilers is sent to steam turbines to meet the electric needs of campus. The steam from the turbines is either used to heat campus or is wasted in a condenser. The overall plant efficiency in the winter is 70%. Since there is not as much need for steam heat in the summer, the efficiency drops to 55%. By providing a use for low pressure steam, this project will increase the efficiency of the plant in the summer. The existing power plant can not meet all of the electric need of campus. To meet this additional electric power demand„ the university purchases power from the local utility. (GVEA) Our current avoided electric power rate is $0.20 per kilowatt hour. This rate includes demand charges. 4.2.2 Existing Energy Resources Used Briefl discuss your understanding of the existing energy resources. Include a brief discussion of AEA 09-004 Grant Application Page 7 of 12 9/3/2008 ALASKA Renewable Energy Fund /W-- ENERGY AUTHORITY Grant Application any impact the project may have on existing energy infrastructure and resources. This project will add a steam load to an existing combined heat and power plant. This load will occur during the summer where the current steam load is at its low point. This change will allow the current infrastructure to be utilized to a better extent. In addition, this will also improve the overall cycle efficiency of the combined heat and power plant. This change will also remove a large electric power load from an already undersized electrical power distribution system. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. This will lower the utility operating expenses of the University of Alaska Fairbanks. This savings will be passed on to the "customers" of the University. This saving will be reflected in lower costs charged to grant issuing agencies, the rental tenants of the University space, as well as the students, faculty, and staff. The load reduction will have little to no impact of the customers of GVEA. 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 West Ridge chilling facility will have three 1000-ton absorption chillers installed during this initial phase of construction. The facility and the distribution system will be sized for projected campus growth. The projected load is 1.7 million ton-hrs. per year. The total connected load is estimated to be 2,900 tons. Due to a load diversity, the system will have a capacity factor of 0.7. The buildings are currently using chilled water for cooling, so they will not need a large amount of work to make the conversion to a district chilled water system. The newer utilidor was designed with a district chilled water system in mind, so the installation of the chilled water piping will not be difficult. The steam to operate the absorption chillers will be delivered with the same steam pipes that are currently being used to deliver heat to the building in the winter. Since the heating load drops before the cooling load increases, there will be no capacity problems by using the existing steam system. 4.3.2 Land Ownership Identify potential land__ ownership issues, including whether site owners have agreed to the project or how you intend to approach land ownership and access issues. AEA 09-004 Grant Application Page 8 of 12 9/3/2008 ALASKA Renewable Energy Fund /W_ENERGVAUTHORITY Grant Application There are no land ownership issues. All land to be used by this project is owned by the University of Alaska. 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 There are no permitting issues that apply to this project. 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 issues associated with this project. The facility will be built on previously disturbed ground. 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 The estimates for this grant application were developed using historic costs from a similar project recently completed on the UAF campus with escalation and estimating contingency costs added. The total project -cost -would be funded by a combination of AEA Grant funds and University bond financing. The University will provide 33% of the total project cost and the AEA Grant would provide AEA 09-004 Grant Application Page 9 of 12 9/3/2008 /, SKAUTHORA Renewable Energy Fund Grant Application 67% of the total costs. The total project cost is $15M and $5M will be funded by University bonds and $10M would be funded from the AEA Grant. 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 None of the requested grant funding is to be used for operation or maintenance costs. This project will result in a net reduction of 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) • Potential power purchase/sales price - at a minimum indicate a price range • Proposed rate of return from rant -funded project At the present time, the University of Alaska Fairbanks is not directly charging for chilled water used on campus. We do not anticipate direct charging for chilled water after this project is complete. 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. 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. The University of Alaska Fairbanks operates its utilities as a recharge center. This means that all costs incurred by the utilities are accounted for in the rates that are charged. The business structure that is already in place for the operation of the utilities is sufficient to take on this additional effort. 4.4.6 Analysis and Recommendations Provide information about the economic analysis and the proposed project. Discuss your recommendation for additional project development work. The West Ridge central chilling facility is one of the recommendations of the recently completed UAF Utility) Development Plan. This $250,000 study evaluated all the utilities on the Fairbanks campus and developed a plan to meet the campus utility needs for the next 20 years. AEA 09-004 Grant Application Page 10 of 12 9/3/2008 /� ALASKA Renewable Energy Fund JIF—I_ ENERGY AUTHORITY Grant Application 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 • This project will offset over 1,100 tons of COz per year. This has the potential to be sold as a green tag credit. • This project will remove over a thousand of pounds of HCFC (R-22) refrigerant from campus • This project will save the University 2 million kilowatt hours per year. • This project will save the University $100,000 per year in chiller maintenance. • Future construction projects on the West Ridge will no longer need to be designed with individual electric power chillers. This will reduce the costs of construction, as well as reduce the size of the building, meaning lower initial costs and lower operating and maintenance costs. Less state money is needed. 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 UAF is strongly committed to energy conservation on their campus. The commitment started in 1964 when a combined heat and power plant was constructed that increased efficiencies by 30%. UAF is continuing the commitment to increasing our efficiency by investing in this project using bond finds. UAF invested $250,000 to produce the "UAF Utilities Development Plan" that identified a path for the future of UAF's energy production. This plan addressed all aspects of energy production at the Fairbanks campus including the recommendation to construct a central chilled water facility for the West Ridge area of campus. UAF is committed to the further investment in energy efficiency in the future in order to be an example to the community and the State. The estimates for this grant application were developed using historic costs from a similar project recently completed on the UAF campus (2005) with escalation and estimating contingency costs added. The total project cost would be funded by a combination of AEA Grant funds and University bond financing. The University will provide 33% of the total project cost and the AEA Grant would provide 67% of the total costs. The total project cost is $15M and $5M will be funded by University bonds and $1 OM would be funded from the AEA Grant. AEA 09-004 Grant Application Page 11 of 12 9/3/2008 ,, ALASKA Renewable Energy Fund ��-.; ENERGY AUTHORITY Grant Application 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 Andrew Parkerson-Gray Signature y y Title Director, UAF Office of Sponsored Programs fvoso a()uaf.edu Date November 7, 2008 AEA 09-004 Grant Application Page 12 of 12 9/3/2008 ALASKA `EN AUTHORITY Renewable Energy Fund . Application Cost Worksheet Please note that some fields might not be applicable for all technologies or all project phases. Level of information detail varies according to phase requirements. 1. Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. 130 Million pounds of low pressure waste steam, Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) 2. Existing Energy Generation a) Basic configuration (if system is part of the Railbelt' grid, leave this section blank) i. Number of generators/boilers/other ii. Rated capacity of generators/boilers/other iii. Generator/boilers/other type iv. Age of generators/boilers/other v. Efficiency of generators/boilers/other b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor L Annual O&M cost for non -labor c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, leave this section blank) i. Electricity [kWh] ii. Fuel usage Diesel [gal] Other iii. Peak Load iv. Average Load v. Minimum Load vi. Efficiency vii. Future trends d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] ii. Electricity [kWh] 1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. RFA AEA 09-004 Application Cost Worksheet revised 9126108 Page 1 �"ALASKA Renewable Energy Fund Or ENERGY AUTHORITY iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other a) Installed capacity 3000 tons of refrigeration b) Annual renewable electricity generation i. Diesel [gal or MMBtu] ii. Electricity [kWh] Ill. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other a) Total capital cost of new system 15,000,000 b) Development cost $0 c) Annual O&M cost of new system Net saving of $100,000 d) Annual fuel cost Reduction of $400,000 5. Project Benefits a) Amount of fuel displaced for i. Electricity 2 million kw-hrs per year N. Heat iii. Transportation b) Price of displaced fuel $400,000 per year c) Other economic benefits $100,000 per year d) Amount of Alaska public benefits $500,000 per year 6. Power Purchase/Sales Price a) Price for power purchase/sale $0,20 per kw-hr RFA AEA 09-004 Application Cost Worksheel revised 9126108 Page 2 ALASKA EN AUTHORITY Renewable Energy Fund ® 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio Payback 1.04 for the life of the project 30 years RFA AEA 09-004 Application Cost Worksheet revised 9126108 Page 3 O O O O O O O O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ova, 0000 O o 0 0 0 0 0 0 0 0 W m n 0 � tD O N t/T O Q N N Lr F- O O O O O O D 0 O O O O O O O O O O O O O O O O O VT V? O V? o O O O O O O O n Om CD J N d O � N N n O O O C LL L N L Y a O O O � U Y Y tcp C G ti u n o n J LL 00 0 0 0 00 O O O 0 0 O O O O C O (5 O O O O O O O O 'y CD CD CD CD YLn V1 O O O O O CDO m m U N W m O `� O O V U) O ti a w a m O o E V ti N E v m u c v n 0 U O m CDOO O O CDOOO 0 o O O O o 0 0 0 0 06 00 0 0 0 0 0 o 0 C C o 0 0 0 0 o o O 0 O vi Z LL 00 m NO O vYi LD W LD 0 NCO m Ll .-f U c-I ci H Q N H N L} N ~ O O O a 'm yx° 0 0 0 Z ° ci CD CD o F"' v W m O M O O m LL G N E H Q 'a O m " > " _ ao 0.....:c Q m v in U i— In N m U _a G Y N w o .N U` N N G E — U� U O D U m v L� O_ C C t H m c G N N m V Ln 0 F- m F- (n U U O O O U. N 7 m V O O O Q W Q LL iI4 Division of Design and Construction 590 Uniticrsity Avcnuc P.O. Box 758160 �.. Fairbanks, Alaska 99775-8160 (907) 474-5299. FAX (907) 474-7554 November 7, 2008 Alaska Energy Authority 813 West Northern Lights Blvd. Anchorage, Alaska 99503 Attention: Butch White Grant Manager Dear Mr. White: The executive management of the University of Alaska formally approves and endorses this grant application as a government entity. In preparation for this application the University has made its Board aware of its intent to file this application and will present the Project to its Board for formal approval concurrent with the Legislature's review process. The West Ridge Energy Conservation Project will replace the existing electric driven chillers located in each building with a central steam driven absorption chiller facility. The chilled water will then be distributed to the individual buildings with pipes located in the existing utilidor system. Waste steam will be used as the energy source. The University will reduce their electricity consumption by approximately 2,000,000 kW-hrs per year and CO, emissions will be reduced by over 1,100 tons per year. This is a significant benefit from both an economic and environmental perspective. The University has authorized Mike Ruckhaus, Sr. Project Manager, as the point of contact to represent the applicant for purposes of this application. Furthermore, the executive management states that the University is in compliance with all federal, state, and local laws including existing credit and federal tax obligations. We look forward to a positive review of this grant request and bringing this project to fruition for the benefit of all Alaskans. Sincerely, Mark Hamilton President University of Alaska