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HomeMy WebLinkAboutHaines Assistant living App Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 1 of 18 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 18 9/3/2008 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Alaska Power and Telephone, Inc. Haines Assisted Living, Inc. Type of Entity: AP&T: An electric utility holding a certificate of public convenience and necessity under AS 42.05. HAL: 501(c)(3) Non-Profit Assisted Living residence. Mailing Address P.O. Box 916, Haines, Alaska 99827 Physical Address 219 Union St., Haines, Alaska 99827 Telephone (907) 766-3616 Fax (907) 766-3617 Email halincn@aptalaska.net 1.1 APPLICANT POINT OF CONTACT Name Dan Austin Title Project Manager Mailing Address 172 Behrends Ave., Juneau, Alaska 99801 Telephone (907) 321-5222 Fax (907) 789-2557 Email St.vincentdepaul.juneau@gci.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 (site specific renewable energy system) A local government, or A governmental entity (which includes tribal councils and housing authorities); XYes or No 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 ) XYes or No 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. XYes or No 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 18 9/3/2008 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. Type in your answer here and follow same format for rest of the application. Phase III, Final Design and Permitting and Phase IV Construction of a Ground Source Heat Pump geothermal energy system to provide 100% of the heating requirement for 26,000 SF of community senior housing, assisted living and program facilities in Haines, Alaska. 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. In July 2008, Haines Assisted Living, Inc.(HAL) began construction on a senior assisted living/ residential complex comprising a total of 26,000 SF. The building site is on lots fronting Third St. from Dalton to Union. Residents of Haines and Southeast Alaska will utilize the senior assisted living and senior affordable housing complex being built in 2008—2010. The project is a collaboration seven years in development and funded by the Denali Commission, the Community Development Block Grant Program, the Rasmuson Foundation and the community of Haines. The first phase of the project will be completed in the fall of 2009 at a cost of over $4 million. Key to the long term sustainability of the facility is the installation of a Ground Source Heat Pump to extract geothermal energy from the earth and circulate it through a radiant in-floor heating system. The initial feasibility and design has been completed as the follow-up to an extensive energy life-cycle cost analysis performed in 2007and updated in October 2008.The designed system estimate of 210% efficiency will eliminate fossil fuel consumption in favor of renewable geo-thermal heat source and local hydro-electric power and result in significant operational savings for the life of the facility. Haines Assisted Living, Inc., Dan Austin, Project Manager and Jim Rehfeldt, Alaska Energy Engineering LLC are the principals involved in this grant project. Resumes attached. ATTACHMENT A. Resumes, Dan Austin, Jim Rehfeldt. 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. Applicant requests $1,432,906 from the AEA Renewable Energy Fund and proposes to match this contribution with $946,101 in design and construction funds already budgeted for the heating system of the facility. By July 1, 2009, installation of the first phase of the building heating system will be completed by the applicant. This will include radiant in-floor tubing, manifold, and mechanical room prepared to accept the heat pump, controls and distribution pumps at an estimated cost of $ 125,000. These funds have been awarded by the project Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 4 of 18 9/3/2008 funders. In January 2009, the project anticipates award of $1,069,000 in construction funds by the U.S. Department of Housing and Urban Development that includes another $210,486 budgeted for the remainder of the design and mechanical systems installation required in building #1 of the complex. By July 2009, the applicant will have committed $946,101for building#1 and #2 in matching funds to the GSHP project. Total cost of the project is: AEA $1,432,906 + HAL $ 946,101 = $ 2,379,007 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 Ground Source Heat Pump system will provide life-cycle operating cost savings amounting to $1,482,000 over the first twenty five years of operation and will help ensure the long term sustainability of Haines Assisted Living, a valuable community asset. From its outset, the assisted living project has searched for innovative approaches in construction, operation and management to meet the considerable challenges faced b y community health and residential facilities in rural Alaska. Starting with an exceptionally well insulated building envelope (R29 walls and R55 roof), close attention is paid to value engineering every element from windows to lighting to site exposure and ventilation systems. Of paramount importance in a community where heating oil is projected to reach $5.04/gallon in 2009 and electricity is $.18/kWh, is the adoption of a Ground Source Heat Pump system to utilize the earth’s geothermal energy to heat the building. The complex will be among the first in rural Alaska to earn a Leadership in Energy and Environmental Design (LEED) certification of “Gold” and will be a construction model prototype to help all Alaskans design buildings that can operate economically in isolated rural communities using available renewable energy resources. 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.) $ 2,379,007 2.5.2 Grant Funds Requested in this application. $1,432,906 2.5.3 Other Funds to be provided (Project match) $946,101 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $2,379,007 2.5.5 Estimated Benefit (Savings) $1,482,000 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.) $ 1,350 per complex resident per year in reduced energy costs. Plus the benefit of predictable heating cost over the life of the project. ATTACHMENT F. Alaska Energy Engineering Life Cycle Cost Analysis for detailed projection of the cost/benefit equation for this project. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 5 of 18 9/3/2008 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 Manager is Dan Austin, Haines Assisted Living, Inc. Resume Attached. 3.2 Project Schedule Include a schedule for the proposed work that will be funded by this grant. (You may include a chart or table attachment with a summary of dates below.) Site Investigation (includes test well) April 2009 Final Design and Permitting June 2009 Construction October 2009, Complete 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. Mobilize well driller for test well March 2009 Test Well permitted, drilled and data collected April 2009 Final Design based on data evaluation June 2009 Permitting by Alaska DNR June 2009 Materials and equipment ordered June 2009 Engineer on site for construction July 2009 Construction begins August 2009 Construction complete October 2009 System Commissioned November 2009 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. Alaska Energy Engineering, LLC is the primary consulting engineering firm for this project. The company has been involved since 2005—generating life cycle cost analysis of energy systems, modeling alternatives and consulting on architectural and engineering tasks related to constructing this LEED building. Jim Rehfeldt, the principal owner and engineer will exercise technical oversight of all GSHP construction activities. Geothermal Northwest, Sandpoint, Idaho is a likely project vendor. The company is a major supplier of commercial heat pump equipment and system controls throughout the Northwest. In order to capitalize on economies of scale, the HAL GSHP will likely utilize contractors engaged by the City and Borough of Juneau to install their two major GSHP systems in 2009. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 6 of 18 9/3/2008 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. GSHP system will be installed concurrent with on-going construction of the assisted living complex and will be subject to inspection criteria documented in the grant agreement. An engineer certified under Alaska statute and independent of the project contractor will inspect at each milestone. Progress reports including digital photos will be issued on a weekly basis during construction and delivered by email to AEA. 3.6 Project Risk Discuss potential problems and how you would address them. The major risk and difficulty is linking to a quality geothermal well field contractor. With experience comes reasonable cost and dependable performance. Until recently, the cost of drilling was a considerable burden to a positive project pro forma. Now, a number of GSHP projects are being considered for southeast Alaska. At least two major public GSHP systems will be constructed in Juneau in the coming year. Having another project within a ferry trip, will control costs. 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 designed system provides 94% of the entire heating and domestic hot water requirements for 26,000SF of residential and program space. 1,630 MMBtus of heating energy is delivered by the system. The GSHP results in more than $32,000 per year in operating and fuel savings over conventional oil-fired systems. The GSHP system relies on the availability of hydro-electricity from the local area. In October 2008, a new generating facility comes on line and there will be a 25% surplus of available hydro-electric power—contributing to reasonable operating costs for compressors, exchangers and circulating pumps. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 7 of 18 9/3/2008 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 traditional heating options for this new facility would be the fuel oil boiler hydronic heating system and indirect hot water heating tanks. Each building would normally have two boilers each sized to carry 100% of the load. They would operate at an efficiency of 78.7%. 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. Two economically viable energy fuel sources are found in Haines—fuel oil and hydro- electricity. This project will reduce community demand for heating oil, reducing the cost of transporting and storing the environmentally risky product. Local air quality will be positively impacted by a reduction of emissions. As the first GSHP system in the community, it would offer public and private developers a model alternative to increasing dependency on oil. Life cycle cost analysis shows electricity becoming less expensive than oil for heating buildings within 12 years. Yet, electricity production is limited by hydro resources and capital investment. The GSHP system utilizes the availability of existing electric power resource to generate the most efficient method of heating the buildings over time. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. A reduction in heating oil and electricity demand by this facility will contribute to stable energy pricing community-wide. As noted above, a successful GSHP system will demonstrate the potential for this alternate source of energy to meet the heating requirements of projected development at affordable and predictable costs. This surety of supply and cost will contribute to viability of rural development and stable energy pricing in Haines and throughout the region. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 8 of 18 9/3/2008 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 ATTACHMENT G. Schematic Narrative and Diagram, Alaska Energy Engineering LLC. 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. All property where the GSHP system is located is wholly owned by the co- applicant, Haines Assisted Living, Inc. 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 As the Haines Borough is an active collaborator and contributor to the assisted living project, it is expected that any local permitting issues will be resolved quickly and with complete public transparency. A well drilling permit, if required by DNR, will be obtained prior to site investigation test well drilling. 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 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 9 of 18 9/3/2008  Visual, aesthetics impacts  Identify and discuss other potential barriers All the above and several additional land use issues (coastal zone management, flood plain etc.) have been thoroughly addressed in federal applications for assistance within the Community Development Block Grant program and U.S. HUD 202 senior housing program. A complete Phase I Environmental Assessment was completed in July 2008. Copies of the documents are available upon request. Protection of any on-site or below ground aquifers will be performed in accordance with DNR guidelines. 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 proposed system is a design based on the most conservative estimated resource potential and most intensive technical application (multiple closed looped wells). It is possible that the final design, based on site specific test well data, will evolve a less expensive and equally efficient system—i.e. fewer wells, open system, or horizontal loops. The test well, slated for April, 2009 is a critical step in final design for the most efficient and cost-beneficial system. Total Cost (Design, Permitting and Construction): $2,379,007 Project design schematic, cost analysis, industry standards. Requested Grant Funding: $1,432,906 Balance of cost not funded by applicant. Applicant Matching Funds: $946,101 Design costs and construction funds committed. Capital Costs: $2,193,521 Construction minus Site Investigation and Design costs. Development Costs: $185, 486 Site Investigation ($100,000) and Design ($85,486). Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 10 of 18 9/3/2008 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 No O&M costs are requested from grant funds. 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 No geo-thermal heat resources are expected to be marketed outside of the facility. 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. ATTACHMENT B. Cost Worksheet Worksheet is based on Life Cycle Cost Analysis attached to this application. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 11 of 18 9/3/2008 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. The well field that provides the geo thermal heat for the system has an expected life exceeding the life of the building. The heating components within the building will be maintained to industry standards to maximize the geo thermal potential over the life of the facility. Operating and Maintenance costs are documented in the life cycle cost analysis and budgeted in the development pro forma of the residential facility. 4.4.6 Analysis and Recommendations Provide information about the economic analysis and the proposed project. Discuss your recommendation for additional project development work. This project is in the Final Design and Construction phase. The life cycle cost analysis supports the proposed GSHP as the lowest life cycle cost heating system for the facility. No additional project development work is anticipated as the project is currently being designed and constructed for that system. As noted above, test well data projected for April 2009 will contribute to refinement of the final design and could render a significant savings in construction costs by possibly reducing the required number of wells. 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 16,600 gallons of heating fuel oil per year will be displaced by this GSHP renewable energy resource. At a projected cost of $5.04/gallon in 2009, the result will be fuel oil cost savings of $83,664. The GSHP electricity costs (from local hydro-electric system) are projected at $45,700. Therefore, straight fuel cost savings are estimated at $37,964 per year. This site specific system will not market energy to other consumers. Each assisted living resident will save up to $1,500 in annual heat energy costs. The greatest non-economic benefit to Alaskans is the demonstration of a common renewable energy resource, especially for Southeast. System knowledge and data derived from this project plus the design and construction experience brought to our state, will offer many communities an alternative to expensive and environmentally hazardous fossil fuels as a primary heat source. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 12 of 18 9/3/2008 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 for the GSHP system to heat the 26,000 SF complex is $2,397,007. Haines Assisted Living, Inc. through the support of the Denali Commission, the State Department of Commerce and Economic Development CDBG program, Alaska Housing Finance Corporation, the U.S. Department of Housing and Urban Development, the Rasmuson Foundation and the people of Haines is committed to funding $946,101 of the total project cost. The Alaska Energy Authority is requested to fund $1,432,906 from the Alaska Renewable Energy Fund. ATTACHMENT C. GrantBudget.xls Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 13 of 18 9/3/2008 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 Dan Austin Signature Title Project Manager Date October 7, 2008 Revised November 7, 2008 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 14 of 18 9/3/2008 ATTACHMENT D. CD of entire Application Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 15 of 18 9/3/2008 ATTACHMENT E. Resolution and MOA Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 16 of 18 9/3/2008 ATTACHMENT A. Resumes Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 17 of 18 9/3/2008 ATTACHMENT F. Life Cycle Cost Analysis Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 18 of 18 9/3/2008 ATTACHMENT G. Schematic Narrative and Drawing