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HomeMy WebLinkAboutWainwright Heat Recovery App Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 1 of 11 9/2/2008 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 11 9/6/2008 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) North Slope Borough Type of Entity: Municipality Mailing Address P.O. Box 69 Barrow, AK 99723 Physical Address 1274 Agviq Street Barrow, AK 99723 Telephone 907-852-0467 Fax 907-852-4115 Email kc.miller@north-slope.org 1.1 APPLICANT POINT OF CONTACT Name K.C. Miller Title Grants Administrator Mailing Address P.O. Box 69 Barrow, AK 99723 Telephone 907-852-0467 Fax 907-852-4115 Email kc.miller@north-slope.org 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 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 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 11 9/6/2008 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. The project is a waste heat recovery project connecting Borough buildings to the power plant source in the village of Wainwright Alaska. The village of Wainwright will benefit from a waste heat line in lieu of individual diesel fuel heating appliances in every facility as primary heat sources. It is a very efficient and reliable heating system utilizing waste heat from the power plant that otherwise would be dispersed into the atmosphere. The heating season in Wainwright is frequently twelve months a year . This project falls under the category of Design and Permitting, and 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. The NSB recently commissioned an update of the Project Analysis Report (feasibility study) entitled “Village Heat Recovery” and dated February 2006. The prior study assessed the previously constructed waste lines and costs associated with waste heat utilization in Arctic and/or permafrost conditions in six NSB villages. The study verified that use of waste heat could reduce or replace dependence on diesel fuel for its heating needs in NSB area wide villages. With rising fuel costs, it is now feasible to install waste heat lines in Wainwright. This application requests funds to:  Provide schematic design services  Identify and mitigate environmental issues  Provide construction cost estimates  Finalize land, routing and site control issues  Complete design and bid documents  Provide construction costs  Provide for construction administration services  Provide NSB employee training in operating and maintaining waste heat systems The North Slope Borough will be the primary participant and will utilize internal expertise and retain external consultants and contractors that have special expertise in designing waste heat pipe lines, connecting building heating plants to the pipe lines, and recommending operations and maintenance schedules. 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. The North Slope Borough is seeking $3,300,000 from the AEA Renewable Energy Fund for this design and construction project. Please see attached budget worksheet. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 4 of 11 9/6/2008 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 economic benefits based on 2008 landed fuel oil prices were estimated to be $306,636 per year. They are projected to be significantly higher in 2010. Landed fuel oil costs do not include operating costs associated with fuel permitting, storage, and dispensing. Other benefits to the public include:  Local construction jobs  Waste heat recovery and utilization is a clean energy source  Increased heating reliability  Increased Wainwright system-wide flexibility in providing heat to facilities with differing requirements during the year, e.g.: an empty school in summer has reduced requirements  Less air pollution in the village from decreased fuel use  Lower probability of fuel spills in the village  Reduction in fuel tank storage  Reduced need to convert to ULSD fuel in the village by retaining existing plant  Reduced maintenance of heating plants each building  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.) $3,612,000 2.5.2 Grant Funds Requested in this application. $3,300,000 2.5.3 Other Funds to be provided (Project match) $ 312,000 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $3,612,000 2.5.5 Estimated Benefit (Savings) $ 306,636 per year 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.) 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. David Hodges, North Slope Borough Department of Public Works, Program Manager, Capital Improvement Program Management (CIPM) Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 5 of 11 9/6/2008 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.) RFP for Design team August 2009 Evaluate environmental issues and/constraints September 2009 Establish route corridor October 2009 Conduct geotechnical investigation November 2009 Design December – March 2010 Bid project April 2010 Construction period May - December 2010 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. Grant funds issued July 2009 RFP for design team August 2009 Wainwright community meeting October 2009 Design December 2009 Bid construction April 2010 Begin construction May 2010 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. Dave Hodges , North Slope Borough Program Manager K.C. Miller, North Slope Borough Grant Administrator Per North Slope Borough Purchasing Ordinance, a qualified engineering firm licensed in Alaska will be competitively selected for design and a qualified and licensed contractor for construction. 3.6 Project Risk Discuss potential problems and how you would address them. The NSB has constructed the same waste heat recovery lines in five other villages and has a good working knowledge of what to expect. No risks are identified or anticipated. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 6 of 11 9/6/2008 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 project will design and install a waste heat line from the Wainwright power plant to Borough owned facilities. In each facility, connection to the heat distribution system is required. 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. Currently in use in each Borough facility are fuel oil fired heating appliances. This project will supplement existing systems with a waste heat exchanger. There are six NSB buildings to be connected. All were constructed or remodeled within the last 20 years and contain commercial grade fuel oil burning boilers for heat. 1. Health Clinic 2. Fire Station 3. School 4. Elementary school 5. Public Safety Office 6. Water Plant 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 existing energy resource used for Wainwright is diesel fuel. The cost of diesel is higher than urban Alaska because it has to barged or flown into the village. The current landed cost in Barrow is $4.43 per gallon. There is additional cost for operations and maintenance of the fuel system and delivery. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 7 of 11 9/6/2008 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Fuel oil in Wainwright is delivered once annually by barge. Fuel storage tanks must be sized to accommodate a year’s worth of fuel for the residential community as well as Borough facilities. By reducing the dependence on fuel oil for heating appliances, there will be less strain on fuel infrastructure and may permit a larger safety factor for residential use in having more fuel available. 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 system will consist of Arctic pipe made of two layers of pipe with 4 inches of foam insulation between them. The portion of the waste heat line that will be underground requires a trench, leveling material, and additional insulation to protect the permafrost. Raised portions of the line will be mounted on piling set into the tundra. Glycol heated in marine manifolds on the generators in the power plant flows through the pipe line and the heat is recovered at each facility via a heat exchanger . The connections at each building will vary with type of existing heat supply. The power plant is calculated as producing a maximum of 2,150,000 BTU/hr with the maximum demand at 1,404,391 BTU/hr that results in waste heat to spare for any expansion in the future. The waste heat line will cover 100% of the Borough needs in the most demanding time of year. 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. Land used in the placement of the pipe line will be public easements in roadways or in adjacent Borough owned tundra 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 North Slope Borough Development Permit. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 8 of 11 9/6/2008 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 Routing the pipe line in NSB utility easements or roadways does not create any environmental issues to address for 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 Total anticipated project cost: $ 3,612,000 Estimate design cost: $ 300,000 Estimated construction cost: $ 3,000,000 (does not include escalation factors) Total Requested Grant Funding: $ 3,300,000 Total Match funds: $ 312,000 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 O&M costs are estimated at $12,500 annually for maintenance of heat exchangers, pumps and pipe connections. We are not requesting any O&M funding in this application. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 9 of 11 9/6/2008 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 Not applicable 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. 4.4.6 Analysis and Recommendations Provide information about the economic analysis and the proposed project. Discuss your recommendation for additional project development work. 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 Fuel displacement is calculated at 61,327 gallons per year at a current landed cost of $4.43 per gallon. The total cost savings is $306,636 with a payback of 10 years. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 10 of 11 9/6/2008 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. The total project cost is $3,612,000 with the Borough committing $312,000 to cover the costs of administration, advertising for bid, and project manager travel associated with the project. The Borough has expended considerable funding to installing waste heat recovery systems in five villages and project category funds remain to cover these costs. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 11 of 11 9/6/2008 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 Signature Title Date