HomeMy WebLinkAbout03022022 PACAB LAYDOWN - Andy Baker Meeting NotesYour Clean Energy
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220302 PACAB LAYDOWN
Andy Baker Meeting Notes
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Zoom Meeting Minutes - City of Seward AK / YCE - Friday February 25, 2022 - 8am to 8:45am
Minutes Compiled By Andy Baker, YourCleanEnergy LLC
RE: Additional Grant Opportunities For City Library Heat Loop Project
Attendees: Janette Bower, City Manager, City of Seward
Stephen Sowell, Assistant City Manager, City of Seward
Andy Baker, Owner, YourCleanEnergy LLC
After quick introductions, Andy gave a short summary of the project history from 2015 to present,
emphasizing that goal of the project is to demonstrate the simplest and most cost-effective method of
moving ocean source heat from Rez Bay to the Library, where efficient electric powered heat pumps can
lift and distribute this heat to the Library and other nearby City buildings. Andy said that the most recent
Design Memo completed by YCE clearly indicates that the simplest and most cost-effective version of the
demonstration heat loop project is to first serve the Library and Annex, with possibility to expand to other
City buildings in the future. Andy said the City investment in the project will payback over time from the
savings in operating the tidal source CO2 heat pumps vs using conventional oil and/or electric boiler.
Andy said that the key benefits to the City of doing the project are: 1) reduce the cost of heating these
City Buildings during the long sub -arctic winter; 2) reduce carbon emissions from burning heating oil in a
conventional boiler; 3) use high efficiency natural refrigerant (CO2) heat pumps already proven at ASLC
that do not leak toxic greenhouse gas synthetic refrigerant into the atmosphere; and 4) tap the immense
heat of Rez Bay in winter and help to cool the bay down as the climate warms and more waste heat from
human activity is dumped in its surface waters (boats, urban runoff, etc.).
Janette said that she and Stephen are sensing that there is strong public support for the project, and that
Admin is supportive and looking for grant opportunities that could make sense to pursue. Stephen said
that heating the Library with this project had merit since the building is new, energy efficient, and will stay
with the City for many years to come. Stephen advised that the City has discussed the possibility of new
facilities for the City Hall and Fire Hall in the future, as well as possible sale of the Annex in the future.
Andy said that serving the Library and Annex is the simplest and lowest cost expression of "a district
energy system to heat multiple buildings". Andy also said that including the City Hall and Fire Hall in the
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demonstration project adds a lot of infrastructure costs due to the extent of sidewalk and street
replacement involved, thus payback on the City investment will be longer.
Andy said the economics of the project are affected by the variable cost of heating oil in Seward, and the
escalating cost of grid electricity paid by the Library under the City's current Large General Service rate
structure. Andy advised that the most recent YCE Design Memo suggested that a bulk rate could be
established for the Library since it is a heavily used public building and there will be little cost to provide
to install service for new heat pump system. Stephen advised that it was highly unlikely that residents
would support adoption of any special rate structure for electricity for this project at this time. Andy said
the design of the heat pump system completed by YCE in 2020 is to intended to deliver an efficiency of
250% to 300%; thus for every unit of electrical energy consumed by the proposed CO2 heat pump system,
2.5 to 3.0 units of heat energy will be produced using the warm source heat of Rez Bay. Andy said that
the recent rising price of heating oil will improve the project economics, especially if the heating oil price
for City buildings rises and remains above $4 per gallon.
Additional Grant Opportunity 1: Andy said that his contact at the Denali Commission, Erik Obrien, advised
late last week that $75 million from the Infrastructure Bill passed recently by Congress has been allocated
to this state grant agency for FY 2023 projects. Andy said that Erik Obrien was the contact for a grant for
a small CO2 heat pump system design that YCE completed late last year for the Sitka Sound Science Center.
Andy encouraged Janette to reach out to Erik Obrien and discuss what grant opportunities may exist for
the heat loop project yet this year to supplement the $725,000 AEA grant already in hand: Erik Obrien,
Community and Economic Development Program Manager Direct: 907-271-1542 — eobrien@denali.gov
Andy said that the website link for Denali Commission confirms the $75 million Infrastructure Bill
allocation although it appears these funds will be available for FY2023 projects, and the commission has
yet to decide how to spend them: https://www.denali.gov/funding-requests/
Additional Grant Opportunity 2: Andy said that late last week he received a email from Hannah Pauling,
a geothermal researcher at the National Renewable Energy Laboratory in Golden, Colorado, advising of a
current grant opportunity with FOA that may be a match for the City's heat loop project. Andy said that
he looked over the grant FOA and it appears to be a good match for the technical and economic goals of
the heat loop project; that it will allow state grants in hand to be used as a match if they are not from
federal sources; and that NREL was looking for several projects to fund in the range of $3 to $4 million
each. Andy informed Hannah by email on February 24 2022 that he would be meeting with the City
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Admin today (Feb 25 2022) and that he would encourage Janette to return to NREL asap to engage in
discussion of how to proceed. The grant program has an application deadline of March 18 2022 which
would require quick action by the City to prepare and submit a competitive application. The outreach
email from Hannah indicated that: Under this Funding Opportunity Announcement, the DOE will provide
up to $7.5 million to "support demonstration of advanced technologies in a renewably -supplied district
energy (DE) system that will reduce carbon emissions" (Topic 1 in attached). The turnaround time is quick
for this opportunity. If you are interested, and would like to work with NREL on a proposal, please let
Amanda Kolker (cc'd) and I know by next week. As the Geothermal Lab Program Manager at NREL,
Amanda is coordinating our proposal efforts. You can also find a summary of the FOA here:
https://www.energy.gov/eere/amo/articles/funding-opportunity-technical-partnerships-foa
Amanda Kolker, PhD - Laboratory Program Manager— Geothermal Technologies
National Renewable Energy Laboratory, 15013 Denver West Parkway MS-1633, Golden, CO 80401
303-275-3663 Amanda.Kolker@nrel.gov
Not Discussed In The Meetine - But Remains A Prioritv For March 18 2022 Grant Application Deadline:
We ran short on time in the zoom meeting and did not get to this important topic — Andy advises at this
time that there is a need for the City to have the August 25 2020 cost estimate for the two building project
and the August 13 2020 cost estimate for the four building project updated to 2022 dollars. These cost
estimates were prepared by the firm HMS in Anchorage under direction of Kent Gamble
kent@hmsalaska.com (907) 561 1563. Andy will forward these two specific cost estimates from 2020 to
Janette and Stephen today by email. They are independent cost estimates that will be the foundation of
the supplemental grant requests in 2022. There have been numerous impacts to construction costs since
2020 due to escalation, inflation, covid, supply chain issues, and now a pending overseas conflict, all of
which may impact the project if built this year (or next year).
Contract For Ongoing Support From YCE For The Heat Loop Project: Andy said that he was not currently
under contract with the City of Seward for support services on the heat loop project, however that he was
getting requests for his time, advise and information regarding the project in recent weeks from the
PACAB and now the City Administration. Andy asked consideration from Janette that a support contract
be established between YCE and the City to pay for his ongoing time effort, and suggested that this
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arrangement could also cover YCE assistance in navigating and preparing a grant application as needed.
Janette asked that a proposal for YCE services be submitted to her from YCE for her consideration, and
that this arrangement may need approval by City Council. Andy said that he would like to keep a strong
relationship with Janette and Stephen thru this process, and provide guidance and assistance as is needed
to ensure competitive applications for additional grant funding. Andy said that he has been asked by
PACAB vice Chair Linda Paquette to speak via zoom on the heat loop project at their March 2 2022 meeting
to update and inform the board and public on the project, and build more public support in coordination
with City Administration. Andy said that he would submit a proposal to address his time spent in meetings
and presentations and future support to the City on grant application efforts.
End of City of Seward AK / YCE zoom meeting minutes of February 25 2022.
3604 S. Charlestown Street, Seattle WA 98144 907-350-2084 www.yourcleanenergy.us