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
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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.
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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
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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
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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
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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
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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
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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
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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
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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.
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