HomeMy WebLinkAboutUAF Photovoltaic Solar 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
fvprcon(r5uaf.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(a)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.)
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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.
Construction.
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 20-kilowatt solar photovoltaic array of the roof of the Student
Recreation Center on the University of Alaska Fairbanks campus. This array will generate
electric power to the University of Alaska Fairbanks electric power grid. All power produced by
this project will offset power that the University will not have to purchase or generate.
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 $320,000 dollar grant from the State of Alaska. The
University of Alaska will fund the remaining $50,000 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 bill will be reduced by $4,000.
• The University will show its commitment to sustainability.
• Over thirteen tons of CO2 per year will not be generated.
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.
$
370,000
2.5.2
Grant Funds Requested in this application.
$
320,000
2.5.3
Other Funds to be provided (Project match)
$
50,000
2.5.4
Total Grant Costs (sum of 2.5.2 and 2.5.3)
$
_
370,000
2.5.5
Estimated Benefit (Savings)
$
4,000 / ear
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.
$
4,000
All of the savings from this project will be a public benefit. The money saved will be less
money that the University will ask the State to fund in its operating fund request.
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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 13 tons of COz per year.
This is in addition to the reduction of other pollutants such as NO, and SO,
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 qovernment entity, state that in this section.
Mike Ruckhaus 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 weeks
Design 8 weeks
Bid and Award 6 weeks
Construction 14 weeks (includes equipment lead time)
Commissioning 3 weeks
Project Completion: 33 weeks after receipt of Grand Award
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 using 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 equipment specifications, civil/structural, architectural, and electrical. The design
connect the panels to the existing UAF power distribution 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 the solar PV equipment.
Milestone 3: Commissioning
The University will use a team with members from UAF, the A/E, and construction
contractor to start up the system and adjust the system for optimum efficiency.
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3.4 Project Resources
Describe the personnel, contractors, equipment, and services you will use to accomplish the
project. Include any partnerships or commitments with other entities you have or anticipate will
be needed to complete your project. Describe any existing contracts and the selection process
you may use for major equipment purchases or contracts. Include brief resumes and references
for known, key personnel, contractors, and suppliers as an attachment to your application.
The University intends to hire an A/E firm 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 conditions, and errors/omissions in the
construction documents. These risks mitigated by having a contingency of about 10% of the
construction costs included in the budget.
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SECTION 4 — PROJECT DESCRIPTION AND TASKS
• Tel/ 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.
Unlike most of the state, the University of Alaska Fairbanks has a summer electric loads that
is almost as large as its winter electric loads. Because of this, any electric power generation in the
summer is a great benefit to the university. The University intents to install a 20 kilowatt PV solar
array on the Student Recreation Center.
The University will save money by reducing its electric load. The environment is positively
affected, as GVEA or the University 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 bums a combination of coal, fuel oil
and natural gas in industrial boilers. In the summer the power plant can not produce enough
electric power to meet the demands of the campus. Therefore, the University must purchase
electric 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
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.
Since this power generation is taking place in the power distribution grid, it has the effect of
removing an 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.
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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 Project will install a 20 kw PV array on the Student Recreation Center. UAF has already
installed a demonstation PV array on a smaller building. The data from that array was used to
calculate the annual generation of this projects larger array. This project will produce over 20,000
kw-hr per year. This system will be a grid -tied system an will not use any storage device.
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.
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
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• 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.
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
The estimates for this grant application were developed using vendor budget price quotes and historic
costs from a smaller project recently completed on the UAF campus (2007) with escalation and estimating
contingency costs added.
The total project cost would be funded by a combination of AEA Grant funds and University
operating funds. The University will provide a fixed contribution of $50,000 and the AEA Grant would
provide the remaining $320,000. The total project cost is $370,000 and $50,000 will be funded by UAE
and $320,000 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
• Requested grant funding
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 grant -funded project
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This project will reduce the amount of power the University of Alaska purchases. All power
generated will be used internally to the University
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 University installed a small scale grid -tied PV array for the purpose of getting real word
production data for a future larger PV array.
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 13 tons of COz per year. This has the potential to be sold as a
green tag credit.
• This project will save the University 20,000 kilowatt hours per year.
• This project will save the University $4,000 per year.
• This project will demonstrate the State's commitment to sustainability is this installation is in
a very visible location.
6 - GRANT BUDGET
v much vour total project costs. Include anv investments to date and funding source
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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
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 by starting to increase the renewable energy
component of our total energy needs. UAF installed a pilot PV facility at a cost of $20,000 in
order to assess the viability of future PV installations. The two years of operation from the small
facility has shown that the technology is viable for 'UAF. Also, UAF has a program that allows
students, faculty and staff to contribute directly to GVEA's SNAP program. Contributions have
been about $5,000/year. UAF is committed to the further investment in renewable energy 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 (2007) 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 $50,000 and the AEA Grant would provide
$320,000 for a total of $370,000.
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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
Title
Director, UAF Office of Sponsored Programs fyospCcDuaf.edu
Date
November 7, 2008
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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. Measured 1 Kw-hr/year per watt of PV array,
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
H. Rated capacity of generators/boilers/other
if. 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
if. 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]
d)
ii. Fuel usage
Diesel [gal]
Other
iii. Peak Load
iv. Average Load
v. Minimum Load
vi. Efficiency
vii. Future trends
Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu]
if. Electricity [kWh]
I The Rail belt 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.
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iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
a) Installed capacity 20 killowatt
b) Annual renewable electricity generation
i. Diesel [gal or MMBtu]
ii. Electricity [kWh] 20,000
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
$370,000
b)
Development cost
$0
c)
Annual O&M cost of new system
$0
d)
Annual fuel cost
$0
5. Project Benefits
a) Amount of fuel displaced for
I. Electricity 20,000 kw-hrs per year
ii. Heat
iii. Transportation
b) Price of displaced fuel $4,000 per year
c) Other economic benefits
d) Amount of Alaska public benefits $4,000 per year
6. Power Purchase/Sales Price
a) Price for power purchase/sale $0.20 per kw-hr
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7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio
Payback
0.32 for the life of the project
RFA AEA 09-004 Application Cost Worksheet revised 9126108
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Division of Design and Construction
590 University Avenue
- , 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 UAF Photovoltaic (PV) Project will install approximately 20 kW of PV panels on the roof of the
Student Recreation Center. The project will use commercially available technology to expand the
University's renewable energy capability. It is important that UAF be viewed as a leader to other
governmental agencies and the community in implementing renewable energy. This project would offset
the generation of 20,000 kW-hrs per year of electricity by fossil fuels.
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