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HomeMy WebLinkAboutNative Village of Kwinhagak START Alaska Program Final Report - 2012START Alaska Program Final Report: Native Village of Kwinhagak U.S. Department of Energy I Office of Indian Energy 1000 Independence Ave. SW, Washington DC 20585 1 202-586-1272 energy.gov/indianenergy i indianenergy@hq.doe.gov START Final Report: Native Village of Kwinhagak Table of Contents Executive Summary ........................... 3 STARTAlaska Program..................................................................................................................... 4 START Alaska Final Report: Native Village of Kwinhagak........................................................... 5 Background Community Information............................................................................................ 5 Program Intent of START Alaska Initial Scoping Site-Visit........................................................... 6 Initial START Alaska Scoping Site -Visit Notes & Technical Needs Identification ....................... 6 Summary of START Technical Assistance Activities & Accomplishments .................................. 7 Energy Planning Assistance...........................................................................................................7 Community Education and Training..............................................................................................7 Community Specific Project Assistance........................................................................................8 Preparation for Funding Opportunities..........................................................................................8 Appendices: START Assistance Activities and Materials -Native Village of Kwinhagak ........... 8 Appendix 1. Agendas and Reports from Kwinhagak START Energy Week (10/1/2012 - 10/3/2012)......................................................................................................................8 Appendix 2. START -Marsh Creek LLC Letter of Support for Kwinhagak AEA RE grant application......................................................................................................................11 Appendix 3. AEA Renewable Energy Fund Round 6 Grant Program - Kwinhagak Project Summary and Economic Evaluation.............................................................................12 Appendix 4. Site -Visit Photos - Kwinhagak, AK........................................................................15 2 START Final Report: Native Village of Kwinhagak Executive Summary The Native Village of Kwinhagak (Kwinhagak) was selected for and received Strategic Technical Assistance Response Team (START) assistance from the Department of Energy Office of Indian Energy and the Denali Commission in 2012. START assistance requested by Kwinhagak, provided in the application materials and refined during an initial site visit May 2012, included: • Assistance in system design and grant application support for a heat recovery project at the water treatment plant and washateria • Community education and training related to energy efficiency and weatherization • Understanding opportunities for energy efficient housing for the community START assistance was delivered during two subsequent START site visits, as well as additional offsite support. Following the initial May 2012 site visit and through September 2012, START addressed an immediate fuel oil reduction need in the community and supported Kwinhagak's grant application and submittal to the Alaska Energy Authority's (AEA) Renewable Energy Fund. The grant application efforts were successful and resulted with AEA making a full -funding recommendation of $668,350 for the heat recovery project. Once complete, it is anticipated the project will result in the displacement of 14,200 gallons of fuel oil per year at the facilities, an estimated 62% displacement of fuel usage per year. The first of two START site visits occurred early October 2012. During the visit, START hosted meetings and facilitated discussions on energy planning with community leadership, including tribal council and village council. Additionally, START hosted a broader stakeholder discussion addressing the activities underway by various organizations and agencies, including AVEC, Dept. of Housing and Urban Development (HUD), DOE -Office of Indian Energy, the Cold Climate Housing Reseach Center (CCHRC) and Nuvista Light & Electric Cooperative. The site visit resulted in a broader understanding among village leadership and stakeholders of the energy efficiency efforts underway and the role for strategic energy planning at the village level. The second site and final START visit to Kwinhagak occurred early December 2012. The primary focus of the visit was for the Rural Alaska Community Action Program (RurAL CAP), sponsored by START, who provided community outreach and eductaion on energy efficiency and conservation training for residents in the Kwinhagak, addressing residential efficiency strategies. START assistance in Kwinhagak addressed fuel oil supply issues through support to the heat recovery project grant application, developed by Kwinhagak and the Alaska Native Tribal Health Constorium (ANTHC). The awarded project will result in substaintial fuel use reduction for operation of the community washeteria and water treatment facility, directly benefiting the community with additional fuel supply and energy security during the winter months. START engagement in Kwinhagak also proved effective in fostering interagency collaboration, during START site visits various agencies active in discussions and planning included representatives from HUD, Nuvista, CCHRC and AVEC. Moving forward, the development of a council approved long-range energy plan would benefit the Native Village of Kwinhagak by creating a structured long term strategy to address heating fuel supply issues, continued housing weatherization/new construction and to establish priority energy projects that would benefit the community. 3 START Final Report: Native Village of Kwinhagak START Alaska Program The Strategic Technical Assistance Response Team (START) program is a U.S. Department of Energy (DOE) Office of Indian Energy initiative aimed at advancing next -generation energy development in Indian Country. The START program is led by a technical assistance team comprised of energy project development experts from the DOE Office of Indian Energy and the National Renewable Energy Laboratory. The START program is focused on the 48 contiguous states and Alaska. In the 48 contiguous states, START experts will provide assistance to help Tribes develop tribal renewable energy projects. In Alaska, START provides a community -based effort examining energy -related issues in selected Alaska Native Villages, including diesel powerhouses, power distribution infrastructure, utility management, bulk fuel storage, energy efficiency, renewable energy projects, sewer and water energy demands and housing. Technical assistance in Alaska includes intensive data collection and analysis, on -site training in the community addressing the above issues and provides technical support to selected projects, and ongoing work with the community to train community members and implement energy and cost savings initiatives. Additionally, technical assistance efforts are bolstered with partner support from the Denali Commission. The resource support from the Denali Commission increases the strategic impact of START activities in Alaska. The goals of START Alaska include: • Reducing the use, cost and price of energy for Alaska Native consumers and communities • Increasing local capacity, energy efficiency, and conservation through training and public education • Increasing clean energy deployment and financing opportunities for communities and utilities START Alaska Program Status - Round One Five Alaskan Native Villages were selected as finalists for START Alaska. Each of these villages hosted representatives of the START team. The START team goal was to determine the appropriate level of effort and assistance each community needed to progress towards the implementation of energy efficiency and renewable energy projects, infrastructure improvements, training and preparation for additional funding opportunities. In each community, four general technical assistance categories were used to in the implementation of START assistance activities, those include: • Energy Planning Assistance • Community Education and Training • Community Specific Project Assistance • Preparation for Funding Opportunities M START Final Report: Native Village of Kwinhagak START Alaska Final Report: Native Village of Kwinhagak Background Community Information Population 669 Utility Alaska Village Electric Cooperative (AVEC) Power Cost Equalization Yes Eligible? Utility Receiving PCE? Yes Energy Price - kWh and $.47 non-PCE Fuel $.18 with PCE $6.18 per gal -Diesel, $7.02 per gal - Gas Community Energy Challenge: Community energy challenge: The Native Village of Kwinhagak has experienced a housing and fuel storage crisis, with more than 40 houses condemned and inadequate fuel storage capacity for the winter. Each spring, small amounts of diesel fuel must be frequently flown in to provide enough fuel to last the village until the ice breaks and large, lower -cost barge shipments are possible. The community has a long-term goal of reducing fuel consumption so that the existing fuel storage capacity is adequate to last through the winter and early spring, eliminating the need for higher -cost supplemental shipments. Solution: Install a heat recovery system from the diesel generator for heating the new sewer and water system to substantially reduce diesel fuel consumption, construct ultra -efficient new housing to address the housing crisis and reduce fuel use, and improve utilization of excess electricity from existing wind turbines during high wind events to produce heat and reduce diesel fuel consumption. E X Native Village of Kwinhagak 5 START Final Report: Native Village of Kwinhagak Program Intent of START Alaska Initial Scoping Site -Visit To determine the most appropriate scope of technical assistance to be delivered during the period of START team engagement, the team conducted initial site visits with each participating START Alaska village. During this visit, the START team met with local energy stakeholders in each village, including: tribal councils, village councils, tribal corporations, school facility, utility managers, and members of the community. The initial scoping site visit served as time to discuss the unique technical assistance needs in the community, using information provided by the village in their START application. In addition to the START team working with community stakeholders to determine where technical assistance could support energy project development/improvements; the START team used the four assistance categories as basic framework to identify specific support activities that addressed the needs in the village as well as fulfilled the programmatic goals for the Office of Indian Energy and the Denali Commission. Initial START Alaska Scoping Site -Visit Notes & Technical Needs Identification May 71h , 2012 —May 81h, 2012 — Kwinhagak/Quinhagak, AK START Team Members & Organizations • Brian Hirsch, NREL • Levi Kilcher, NREL • Connie Fredenberg, Marsh Creek LLC • Angel Drobnica, Southeast Alaska Consercation Council START attended a joint meeting of the Quinhagak City Council and Tribal Council (Native Village of Kwinhagak — NVK), where START program was discussed and received valuable input from the community leaders on their energy issues, including numerous brownouts and blackouts during winter that endured for up to six hours. START members toured the community, washateria and were given a detailed tour of the waste water plant by the Public Works Director. Additionally START members toured the AVEC power plant, grocery store, hardware store, and community center. The community recognized that their new water/waste water piping system was responsible for much higher fuel usage in the community. It takes a lot of fuel to pump and keep the waste water building ("big blue building," also called the "utility building") and pipes warm. The other large consumer of heating fuel in the community is the washeteria, built in the 1990s. The two story building has a washeteria on the first floor and a meeting room and tribal /city offices on the second floor. In December 2011, the "Big Blue Building" housing the waste water equipment used as much as 70 gallons of fuel/day. This building is near the power plant and has numerous arctic pipes emerging from the building out onto the yard. The entire town has arctic pipe above ground and entering houses, except for road crossings, where it is buried. Housing issues exist in Kwinhagak. The Association of Village Council Presidents (AVCP — the regional Native non-profit corporation) housing was lacked appropriate desing for the climate. In the 1990's the houses were weatherized. Some of the materials (glue -lams and OSB) were not intended for outdoor use. Two vapor barriers were added, creating a trap for the moisture collecting in the walls — which then caused a bumper crop of black mold to grow on the outside and inside of the walls. START Final Report: Native Village of Kwinhagak NVK will use NAHASDA funding during summer months of 2012 to build (4) more of the CCHRC 8- sided Quinhagak houses (CCHRC is designing an improved foundation) and (1) rectangular "Crooked Creek" house. There will be an assessment done on the two styles of housing to determine which one will be replicated en masse to replace/rehabilitate the 55 AVCP houses. The cost of building and rehabilitating houses potentially could be reduced with a better trained local workforce. The Kwinhagak Working Group addresses the housing crisis in Kwinhagak. Numerous federal and state agencies, as well as contractors, and non-profit organizations participate (as well as START members from NREL and Denali Commission). Since February 2012, the village corporation has had to fly gasoline and diesel in at a cost of $600/drum (55 gallons). Then selling the fuel for $10/gallon and limiting customers to six gallons per day, thus losing $50 on each drum. The diesel power plant facility is in decent condition, with a new control module to integrate the three new Northwind 100 wind turbines and switchgear for the diesel gensets. When START intial site visit occured, the entire village load was approximately 225 kW, and the diesel gensets were 350 kW, thus easily meeting the village's demand. Without long term load profile data, it is unclear how often the community load is less than the diesel capacity, but under these circumstances, the wind turbines are of limited value, basically generating electricity that is turned into heat and currently dissipated out the window of the power house. There is no heat recovery on the diesel generators. Using the rejected heat from the diesels and the generated heat from the wind turbines if the load is already met by the diesel genset would provide substantial amounts of heat that could be used to reduce boiler use in nearby buildings. Recommendations/ Ideas: l . Potential for a heat recovery project to capture the heat from the diesel gensets and the wind turbines to offset heat at the Big Blue Building (Waste Water Building), about 1,000 feet away from the power plant. Study/white paper on wind to heat that could look at both Teller and Kwinhagak. 2. Providing a homeowner energy conservation/weatherization workshop 3. Supporting housing construction activity in partnership with other implementing agencies Summary of START Technical Assistance Activities & Accomplishments Energy Planning Assistance During the START site visit in October 2012, START hosted meetings and facilitated discussions on energy planning with community leadership, including tribal council and village council. Additionally, START hosted a broader stakeholder discussion addressing the activities underway by various organizations and agencies, including AVEC, Dept. of Housing and Urban Development (HUD), DOE -Office of Indian Energy, the Cold Climate Housing Reseach Center (CCHRC) and Nuvista Light & Electric Cooperative. The site visit resulted in a broader understanding among village leadership and stakeholders of the energy efficiency efforts underway and the role for strategic energy planning at the village level. Community Education and Training • In December 2012, the Rural Alaska Community Action Program (RurAL CAP), sponsored by START, provided community outreach and eductaion on energy efficiency and conservation training for residents in the Kwinhagak, addressing residential efficiency strategies. FI START Final Report: Native Village of Kwinhagak Community Specific Project Assistance START addressed an immediate need in the community and supported Kwinhagak's grant application and submittal to the Alaska Energy Authority Renewable Energy grant program. The successful outcome of effort and grant application resulted when AEA made a full -funding recommendation of $668,350 for the heat recovery project. Once complete, it is anticipated the project will result in the displacement of 14,200 gallons of fuel oil per year at the facilities, and estimated 62% displacement of fuel usage per year. (Appendix 1) Preparation for Funding Opportunities • START members worked with the Cold Climate Housing Research Center on design and monitoring of near net -zero energy residential building efforts to begin construction of new homes to replace condemned structures. The effort supportes the value and return on funding used to support ongoing and future construction. Appendices: START Assistance Activities and Materials -Native Village of Kwinhagak Appendix 1. Agendas and Reports from Kwinhagak START Energy Week (10/1/2012 - 10/3/2012) Kwinhagak, Alaska October 1, 2012 Tribal Council/City Council/Qanirtuuq BOD Meeting Qanirtuuq "Red Building" 6 p.m. to 8 p.m. Kwinhagak Community Members Present: Emma White, Emma Guest, Grace Mark, Lucille Mark, Walter Hill, Pauline Mathew, William Sharp, John Sharp, John Mark, Grace Hill, Darren Cleveland, Henry Mark START Team: Brian Hirsch, Pilar Thomas, John Lyons, Connie Fredenberg Stakeholder: Elaine "Chicky" Brown from Nuvista Discussion Items • Housing • Fuel • Wind Farm • Heat Recovery • Nuvista • Training Opportunities n Native Village hagak START1�• • eye in Quinhagak Stakeholder Meeting Solutions to the High Cost of Energy Date: October 2, 2012 Invited Participants: • US Dept of Energy/Office of Indian Energy • National Renewable Energy Laboratory • Denali Commission • Calista/Nuvista • Alaska Village Electric Cooperative • AVCP Housing Department • Coastal Villages Region Fund • Native Village of Kwinhagak • Qanirtuuq, Inc. • City of Quinhagak Discussion Items: o Introduction of START Team Members to the Community o Explanation of START Project Goals o Update on Heat Recovery Proposal to RE Fund for Utility Building o Update on CCHRC Housing Project o AVEC Plans for Local Utility/Power Plant Relocation o Nuvista Purpose and Plans o Question and Answer Session o Energy Planning 9 START Final Report: Native Village of Kwinhagak October 3 Kuinerrarmiut Elitnaurviat (Kwinhagak School) Principal: Eric Pederson eric_pederson@lksd.org LKSD Project Mgr: Bill Murdock bill_murdock@lksd.org Maintenance Men: Bob Cleveland and Joshua Brown • Discussion on various energy issues affecting the school. October 3 Joint Council and Q Inc. Meeting Qanirtuuq "Red Building" Henry Mark (KVC), John Mark (KVC), Emma White (City), Grace Hill (City), Lucille Mark (City, Pauline Mark (City), Grace Mark (City), George Pleasant (Q Inc.), John Sharp (KVC), Joe Pleasant (I -GAP), Warren Jones (KVC?), Annie Cleveland (KVC) and Darren Cleveland (KVC) at the AVCP Annual Meeting in Bethel. • Report on the School by John Lyons • Office of IndianEnergy Energy Discussion — Energy Planning • Energy Champion Concept • Fuel Storage and Energy System Design/Wind Farm 10 START Final Report: Native Village of Kwinhagak Appendix 2. START -Marsh Creek LLC letter of support for Kvv inhagak AEA RE grant application September 21, 2012 John Mark, President Native Village of Kwinhagak P.O. Box 145 Quinhagak, AK 99655 Dear President Mark; It is indeed a pleasure to write this letter of support for your heat recovery project grant application to the Alaska Renewable Energy Fund Round VI. Heat Recovery is an excellent and proven method for reducing the amount of diesel needed to provide heat to critical community infrastructure. The Strategic Technical Assistance Response Team (START) identified this as a "low hanging fruit' item during our initial site visit to Quinhagak_ We are very pleased that the community has come together with their electric company, Alaska Village Electric Cooperative (AVEC), and with the Alaska Native Tribal Health Consortium (ANTHC) to put this plan into a meaningful proposal. We are confident that this project is worthy of Renewable energy Fund support and will result in the substantial fuel savings predicted in the preliminary feasibility study. Feel free to contact me for any questions or assistance you might need. Sincerely, 9 John Lyons Manager of Alternative Energy Division, Marsh Creek LLC 2000 E. 09 Ave.. U.— 200 • A ......I AK 99507 a T., - 49071 258-00%0 • Fie 19071 279-571 0 11 START Final Report: Native Village of Kwinhagak Appendix 3. AEA Renewable Energy Fund Round 6 Grant Program — Kwinhagak Project Summary and Economic Evaluation Alaska Renewable Energy Fund: Round 6 r t CVEn77 A7onTY App # 937 Heat Recovery for the Water Treatment Plant and Washeteria Proposer: Native Village of Kwinhagak Resource: Heat Recovery AEA Program Manager: Devany Plentovich Applicant Type: Local Government Proposed Project Phase: Design Construction Project Description as defined by applicant This project will provide waste heat from the existing electrical power plant to the washeteria and combined utility building. The estimated fuel oil savings to the combined utility building and washetena is projected to be 14,200 gallons of heating oil per year. For more detailed information, see the attached Quinhagak, Alaska 2012 Heat Recovery Feasibility Study. AEA Review Comments and Recommendation Full Funding Special Provision The Native Village of Quinhagak in collaboration with ANTHC is proposing the design and construction a waste heat recovery system to connect recovered heat from the AVEC power plant to the water treatment plant/combined utility and washeteria. This project is estimated to displace 62% or 14,200 gallons of the current fuel oil usage per year. The feasibility study for this project was completed in 2012. The fuel displacement is based on converting the existing diesels to marine jacketed configurations. A project is currently underway to prove the viability of marine jackets on Detroit Diesel Series 60 generators. Without this conversion, the financial benefit of this project will be significantly less. Recommend full funding contingent on the success of proving the viability of marine jacketed Detroit Diesel Series 60 generators. Construction funding hs contingent on AEA accepting the final design and the business/operating plan with heat sales agreements. AEA will also work with the grantee to ensure that building energy efficiency is addressed in conjunction with this project. Funding & Cost Cost of Power $0.54 /kWh Energy Region: Lower Yukon-Kuskokwim ill 7r"13 2:28:47 Pill Project Cost: Requested Grant Funds: Matched Funds Provided: Total Potential Grant Amount: AEA Funding Recommendation: $668,350 $668,350 $20,050 $688,400 $668,350 . J Page 73 of 170 12 START Final Report: Native Village of Kwinhagak 937 Heat Recovery for the Water Treatment Plant and Washeteria Proposer: Native Village of Kwinhagak Benefit/Cost Ratio: Applicant: 2.48 AEA: 1.96 Project Description This project will provide waste heat from the existing electrical power plant to the washeteria and combined utility building. The estimated fuel oil savings to the combined utility building and washeteria is projected to be 14,200 gallons of heating oil per year. Contribution to Lower the Cost of Energy Heating oil must be barged in during the summer months. The impact of this project will be to reduce the overall use of oil by approximately 14,200 gallons per year. While this reduction will not change the price of oil in Kwinhagak, it will significantly reduce the community's consumption of oil, replacing that consumption with jacket heat from the diesel engines and, potentially, excess wind energy in the future. Assumptions Modified Applicant stated a 30-year life for the heat recovery system. The AEA analysis used a 20- year life based on the AEA standard. Under the proposed operation, 25% of the base system O&M costs are included in the AEA analysis for continued maintenance of the existing boiler in addition to maintenance costs for the proposed heat recovery system. Applicant notes that the construction cost is escalated 3% annually. The AEA analysis adjusted costs to 2012 dollars. Concerns A Heat Sales/Right-of-Entry Agreement will be required between AVEC and the end users to define the parties' responsibilities, detail the cost of recovered heat, and authorize the connection to the power plant heat recovery equipment. However, a detailed heat recovery study has been completed to support the technical feasibility of the project. Possible Enhancements The system could be extended, potentially, to excess wind energy in the future. Long-term Sustainability This project increases the sustainability of the water treatment plant and washeteria by reducing its operating cost. The minimal maintenance and operating cost can be funded out of its revenue stream and out of its savings over the life of the project. Installing the necessary heat exchangers, piping, pumps, and controls necessary for 13 START Final Report: Native Village of Kwinhagak Potential Public Benefits Qualitative assessment ofpotential public benefits. Infrastructure. The existing combined utility building provides heat hothe circulating water lines and heat to one of the WSTs. The system was not designed for waste heat and will require controls and installation of new heat transfer equipment, including unew heat exchanger and new circulating pumps. Employment. Noeffect onemployment ixnoted inthe application. Community solutions. The combined utility building and washeteria benefit all the residents of Quinhagak, AK; however, the cost of energy to operate the facilities threatens their susfoinubUify.This project isexpected horeduce the fuel oil usage of the facility by 14,200 gallons per year, nearly fully offsetting the fuel oil usage. Improve existing energy system. Although the existing boilers will bemaintained and are actually the primary heating source inthe water treatment plant and woshet*hu'their use istobegreatly curtailed. Statewide Applicability. Similar systems could be installed at other power plants. Long term sustuinobi|ity.See the above paragraphs onlong-term sudoinubi|ih/. Other public benefits. Anunused heat resource would becaptured tooffset imported oil. 14 VINERRARMIUT ELITNAURN IAT 101011201? l ixiIixiIixIIIxiIixiIIxIi j a � -Amt. IIxIiixIiixillxliixill ociiiociiiocillociliociiixili 10,o!!2012