ࡱ>  .bjbj >Thh%\;;3*3*3*G*G*G*8*4*dG*++(?+?+?+,,,0222222Cv23*,,,,,2;;?+?+gG 3 3 3,;\ ?+3*?+0 3,0 3 3&p?+prXHDG*8-H]0.p3*p,, 3,,,,,220,,,,,,,,,,,,,,,, : Agenda Board of Regents Facilities and Land Management Committee Wednesday, November 19, 2008; 9:00 a.m. 10:00 a.m. VIA AUDIOCONFERENCE 1-800-893-8850 Participant Code: 4054501 Committee Members: Michael Snowden, Committee Chair Robert Martin Timothy Brady, Committee Vice-Chair Kirk Wickersham Fuller Cowell Mary Hughes, Board Chair I. Call to Order II. Adoption of Agenda MOTION "The Facilities and Land Management Committee adopts the agenda as presented. I. Call to Order II. Adoption of Agenda III. Briefing regarding the Alaska Energy Grant Applications for Renewable Energy Grants IV. Briefing regarding the Alaska Region Supercomputing Center Lease V. Ongoing Issues VI. Adjourn This motion is effective November 19, 2008." III. Briefing regarding the Alaska Energy Grant Applications for Renewable Energy Grants Reference Attached As indicated at the October 31, 2008 Board of Regents' meeting, ū컨A submitted one application and ū컨F submitted two applications for renewable energy grants. ū컨A Co-generation Project, grant request amount $35 million plus $20 million match to be provided by one or more of the project partners: Anchorage Municipal Light & Power, Providence Hospital and University of Alaska Anchorage are preparing to develop a combined heat and power project for the benefit of the three organizations. The project will contain one or two gas turbine generators each with a heat recovery boiler and a thermal distribution system that will connect Providence Hospital and ū컨A buildings to the plant. Combined heat and power production offers the possibility of improving the fuel efficiency of an electric generating process by more than 100% when compared to conventional electric plants and by more than 70% when compared to combined-cycle electric generating plants. The University of Alaska Anchorage and Providence Hospital are two large institutional customers served by Anchorage Municipal Light and Power. Anchorage Municipal Light and Power is a regulated utility. The University and the Hospital fall within its exclusive service territory. Together the two customers make up about 4% of the utilitys sales. ML&P is currently updating its resource plan and will replace some of its generating equipment. The University has a number of boilers that are near the end of their useful life and Providence continues to grow to meet the needs of the community and is faced with capital investment for infrastructure to meet its growth. It is a favorable time to develop a single project to meet the three organizations overarching goals. Nearly all power and heat in the Anchorage area is produced by combusting natural gas and it is in the publics best interest to use this fuel efficiently. All parties expect the cost of natural gas to remain high (22% rate increase this January). An opportunity exists to develop a project to meet the three organizations goals: Use fuel more efficiently Reduce emissions associated with making electricity and heating buildings Reduce operating costs Currently, we anticipate the project will be: Located on University land Located adjacent to Providence Hospital Use ML&P generating assets Use ML&P natural gas Rely upon Enstar for natural gas transportation Include heat recovery boilers Bundle with other facilities such as Providence Laundry, and ū컨A Parking structure The proposed project will locate ML&P generating assets near the two institutions, where heat, that is normally wasted when making electricity, is recovered to meet the thermal energy needs of the university and the hospital. For the project to move forward the institutions will continue to rely upon ML&P as an electric service provider and the institutions must realize economic benefit by meeting their thermal energy requirements with low-cost, waste-heat. Independent, preliminary studies have been completed by all three parties. Each believes that a project can be developed that serves their best interest and that the greatest benefitwill be achieved by all three parties cooperating to plan, finance and operate a single facility. The project cost is estimated to be $55 million, including a $20 million non-grant match and the schedule is estimated to be 36 months. The three parties have committed themselves to: Organize a working group; Select a lead organization that is responsible for directing various consultants to perform in the best interest of the joint project; Contribute one third of the cost ($100,000 each) verifying that the project is technically, operationally and financially sound; Submit a renewable energy grant application to the state this December for partial funding of the project. If the project is validated, the three parties will continue to work together to manage the construction project and oversee the ongoing operation of the plant. Legal, permitting and financial services will also be required. The bottom line for the partners (ML&P, Providence Hospital, ū컨A) in this project: Providence, ū컨A and possibly other UMED district members could reduce their heating costs by over half. For ū컨A that is over $1M/year. Reduced Carbon Footprint of both campuses by using waste heat for space heating Renewed infrastructure through replacement A jointly used energy system adjacent to Providences Facilities area A training site for energy system operators and maintenance personnel A great project for the States Renewable Energy Grant. ū컨F West Ridge Energy Conservation Project, grant request amount $10 million plus $5 million ū컨F match: The West Ridge Energy Conservation Project will replace the existing electric driven chillers located in each building with a central steam driven absorption chiller facility. The chilled water will then be distributed to the individual buildings with pipes located in the existing utilidor system. Waste steam will be used as the energy source. The University will reduce their electricity consumption by approximately 2,000,000 kW-hrs per year and CO2 emissions will be reduced by over 1,100 tons per year. This is a significant benefit from both an economic and environmental perspective. This grant amount will be matched with $5 million in ū컨F funding. If this project is funded, the campus electric bill will be reduced by $400,000. In addition, the campus maintenance expenditures will be reduced by $100,000 and cost of future buildings on West Ridge will be lower due to less mechanical equipment being required. The savings are estimated to be at least $200,000 per building ū컨F Photovoltaic Project, grant request amount $320,000 plus $50,000 ū컨F match: The ū컨F Photovoltaic (PV) Project will install approximately 20 kW of PV panels on the roof of the Student Recreation Center. The project will use commercially available technology to expand the Universitys renewable energy capability. It is important that ū컨F be viewed as a leader to other governmental agencies and the community in implementing renewable energy. This project would offset the generation of 20,000 kW-hrs per year of electricity by fossil fuels. This project will be matched with $50,000 of ū컨F funding. IV. Briefing regarding the Alaska Region Supercomputing Center Lease The University of Alaska Fairbanks (ū컨F) is investigating the viability of soliciting proposals from developers to design, build and lease a building to ū컨F for ARSCs use by spring of 2011. Since its inception in 1992 the ARSC has experienced dramatic growth in both size and prominence in the Supercomputing community. Currently, further growth of the ARSC is limited by the physical facilities and infrastructure constraints at its current location. It is estimated that ARSC needs 24,000 square feet of Data Center space and 24,000 of office/administrative space. Due to their physical limitations, the ARSC has had limited opportunity to capitalize on private/public partnerships or agency partnerships which represent an important Strategic goal of ū컨, ū컨F, and ARSC leadership and the clear trend for Supercomputer centers nationwide. ū컨F has hired a consultant, Rise Alaska, to assist with investigation and development of a process to meet ARSC's needs. The goals of this potential development are sixfold: 1) develop new facilities which alleviate the physical and infrastructure constraints currently limiting growth of the ARSC; 2) complete the Data Center element in time to meet grant funding opportunities which will occur in Federal FY 2010; 3) set the stage for partnering opportunities and ARSC expansion opportunities for a 25 year planning horizon; 4) capture and share with a development partner the value inherent in the synergies made possible by an ARSC Technology Park; 5) leverage the waste heat produced in the Data Center to reduce operations cost and maximize Phase I development; and, 6) enhance the strategic goals of the University of Alaska, University of Alaska at Fairbanks, and the ARSC. A Request for Information was issued in May 2008 and five responses were received. If this project moves forward, an RFP would be issued only to those respondents. A Project Agreement is being drafted that will detail internal commitments for funding and other aspects of the project. The proposers would have the option of submitting proposals for building on university-owned land or private parcels. Appropriate Board of Regents' approvals would be requested. The type of approval will partially depend upon whether a facility is proposed on or off of university lands. It is anticipated that approvals would be completed by April 2009. V. Ongoing Issues VI. 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