Grant Submittal_US DOE Industiral Energy EfficiencyT®: Michael C. Van Milligen, City Manager
FR®IVI: Teri Goodmann, Assistant City Manager
SUBJECT: Approval of Grant Submittals
®ATE: September 16, 2009
Stimulus Coordinator Cori Burbach, Assistant City Manager, Cindy Steinhauser and
Assistant City Manager Teri Goodmann are recommending City Council approval of the
submission of the following grants:
Introduction: The purpose of this memorandum is to inform Council that City Staff
continue to pursue funding for Council priorities through myriad grant opportunities, both
private and public, from state and federal sources. We would like to inform you that four
grants that have been submitted to the federal government this month.
Eackground: City staff continues to seek alternative revenues from public and private
sector funding sources to address City Council priorities and reduce the tax burden on
Dubuque citizens. The establishment of the American Recovery and Reinvestment Act
approved in February of 2009 continues to provide opportunities for the City of Dubuque
to competitively seek funds to support these priorities. In addition, the FY09 Omnibus
Act established a new competitive grant program -Showcase Communities.
®iacussion:
Since February 2009, City staff have studied opportunities for grants submissions that
interface with the Council priorities and address community needs. Significant funding
has been made available through the ARRA legislation and the three grants submitted
for your review today join seven that have already submitted. The Showcase
Community grant is a part of a new program established this year.
These four grants bring the total number of grants submitted by the City of Dubuque to
state or federal stimulus/funding programs to seventeen, lNith fourteen grant
applications still in progress. The City cf Dubuque has received $10.6 million in funds to
date and the City now has $85.7 million pending in grant requests submitted.
Grants
Submitted To
Amount
Showcase Communities US Environmental Protection Agency $ 500,000
Community Renewable Energy US Department of Energy $ 6,000,000
Deployment
Industrial Energy Efficiency US Department of Energy $19,854,150
TIGER US Department of Transportation $49,799,979
Sh®wcase C®mmunities - Funds from this grant will support public education and
community outreach to engage Dubuque citizens in programs that assist in
saving energy and costs through better conservation practices. EPA officials are making
their decision end of September with funds available in the first quarter of 2010.
C®mmunity Energv Renewable Depl®yment -Funds from this grant would develop a
broad based community energy plan focused on job training and green jobs, creation of
an energy information center for public education and energy related services such as
rebate and credit program assistance. This grant was submitted this month and
notification is projected to be in January 2010. Program of work set to begin March
2010. Managing office for grant decisions - US DOE field office in Golden, CO.
Industrial Energv Efficiency -This grant would fund the boiler and distribution
components of a district wide renewable fuel boiler for the historic millwork
district, portions of Downtown and Washington Street Neighborhood. Status of
grant per Internet tracking indicates that it is scheduled for decisions in October - NETP
energy office in Pittsburgh is the dept making the decision.
TIGER -Funds from this grant would complete two lanes of the SW Arterial and
interchanges. In addition, funds would rebuild streets and infrastructure in the historic
millwork district and create and monitor pilot projects for more customer responsive
transit system. TIGER would also provide funding for the Smarter City ITS program.
Decision announcements were originally forecast for February 17, 2010 but have been
moved to mid January 2010 as a result of the creation of an accelerated review.
process.
THG:Iw
Attachment
cc: Darry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
TO: Michael C. Van Milligen, City Manager
FROM: Cori Burbach, Stimulus Coordinator
Teri Goodmann, Assistant City Manager
Cindy Steinhauser, Assistant City Manager
SUBJECT: Approval of Dubuque US DOE Industrial Energy Efficiency Application
DATE: September 14, 2009
INTRODUCTION
This purpose of this memorandum is to bring to your attention that the City of Dubuque
has submitted a grant application to the US DOE's Industrial Energy Efficiency grant
program in the amount of $19,854,150.
BACKGROUND
As part of the United States American Recovery and Reinvestment Act approved in
February 2009, the US Department of Energy issued a request for grant applications
that proposed deployment of district energy systems, combined heat and power
systems, and energy-efficient industrial equipment projects. As one of the goals of the
Historic Millwork District Master Plan, the City commissioned Kandiyohi to complete an
initial study of district energy system possibilities for the Millwork District in June 2009.
DISCUSSION
The City submitted this grant application to fund the boiler and distribution components
of a district-wide energy system for the Historic Millwork District. The district energy
systems would have the capability to serve all buildings in the district and the potential
capability to be extended to serve buildings outside the district located in the Downtown
and Washington Neighborhood. Construction of the system would be the first phase of
innovative energy and water systems that build on existing infrastructure, leverage
public and private sector job creation, improve the competitiveness of the existing
industries, and create a strong foundation for the ongoing process of conversion to
renewable and local sources of energy.
RECOMMENDATION
Staff requests Council approval of the Industrial Energy Efficiency grant application in
the amount of $19,854,150.
Cc: David Lyons, Project Manager
Jennifer Larson, Budget Director
Dave Heiar, Economic Development Director
Aaron DeJong, Assistant Economic Development Director
Steve Brown, Project Manager
-~ ~~Rf~,-~,~~,vs. rant ,4plicati®n Package
Opportunity Title: Recovery Act (ARRA) - Industrial Energy
Offering Agency:
CFDA Number:
CFDA Description:
Opportunity Number:
Competition ID:
Opportunity Open Date:
Opportunity Close Date:
Agency Contact:
National Energy Technology Laboratory
81.087
Renewable Energy Research and Development
DE-FOA-0000044
06/01/2009
07/14/2009
Michael DeStefano
Contract Specialist
This electronic grants application is intended to
be used to apply for the specific Federal funding
opportunity referenced here.
If the Federal funding opportunity listed is not
the opportunity for which you want to apply,
close this application package by clicking on the
"Cancel" button at the top of this screen. You
will then need to locate the correct Federal
funding opportunity, download its application
and then apply.
will be submitting applications on my behalf, and not on behalf of a company, state, local or tribal government, academia, or other type of
organization.
' Application Filing Name: City of Dubuque District Energy System
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OMB Number: 4040-0001
Expiration Date: 06/30/2011
APPLICATION
FOR FEDERAL ASSISTANCE 3. DATE RECEIVED BY STATE State Application Identifier
(
1. * TYPE OF SUBMISSION 4. a. Federal Identifier
Pre-application Application ~ Changed/Corrected Application b. Agency Routing Number
2. DATE SUBMITTED Applicant Identifier
07/14/2009
5. APPLICANT INFORMATION * Organizational DUNS: 093105302
* Legal Name: city of Dubuque
Department: Division:
* Streetl: 50 West 13th Street
Streetl:
* City: Dubuque County /Parish:
* State: IA: Iowa Province:
* COUntry: USA: UNITED STATES *ZIP /Postal Code: 52001-4864
Person to be contacted on matters involving this application
Prefix: * First Name: David Middle Name:
* Last Name: xeiar Suffix:
Phone Number: 563-589-4393 Fax Number:
Email:
6. * EMPLOYER IDENTIFICATION (EIN) or (TIN): 42-6004295
7. * TYPE OF APPLICANT: C : City or Township Government
Other (Specify):
Small Business Organization Type ~ Women Owned ~ Socially and Economically Disadvantaged
8. * TYPE OF APPLICATION: If Revision, mark appropriate box(es).
® New ~ Resubmission ~A. Increase Award o B. Decrease Award QC. Increase Duration ~ D. Decrease Duration
Renewal ~ Continuation ~ Revision ~ E. Other (specify):
* Is this application being submitted to other agencies? Yes ~ No QX What other Agencies? ~~
9. * NAME OF FEDERAL AGENCY: 10. CATALOG OF FEDERAL DOMESTIC ASSISTANCE NUMBER: 81.087
National Energy Technology Laboratory TITLE: Reneorable Energy Research and Development
11. * DESCRIPTIVE TITLE OF APPLICANT'S PROJECT:
City of Dubuque District Energy System
12. PROPOSED PROJECT: * 13. CONGRESSIONAL DISTRICT OF APPLICANT
* Start Date * Ending Date
09/21/2009 12/31/2010
14. PROJECT DIRECTOR/PRINCIPALlNVESTIGATOR CONTACT INFORMATION
Prefix: * First Name: David Middle Name:
* Last Name: xeiar Suffix:
Position/Title:
* Organization Name: city of Dubuque
Department: Division:
* Streetl: 50 West 13th Street
Streetl:
* City: Dubuque County /Parish:
* State: IA: Iowa Province:
" COUntry: USA: UNITED STATES *ZIP /Postal Code: 52001-4864
* Phone Number: 563-589-4393 Fax Number:
*Email: dheiar@cityofdubuque.org
APPLICATION FOR FE®ERAL ASSISTANCE
15. ESTIMATED PROJECT FUNDING 16. * IS APPLICATION SUBJECT TO REVIEW BY STATE EXECUTIVE
ORDER 12372 PROCESS?
a. YES ^ THIS PREAPPLICATION/APPLICATION WAS MADE
a. Total Federal Funds Requested
19, 854,150.00 AVAILABLE TO THE STATE EXECUTIVE ORDER 12372
-~
b. Total Non-Federal Funds lo, 683, 000.00
PROCESS FOR REVIEW ON:
DATE:
c. Total Federal &Non-Federal Funds ~
30,537,150.00
_ b. NO a PROGRAM IS NOT COVERED BY E.O. 12372; OR
~
d. Estimated Program Income 0.00
^ PROGRAM HAS NOT BEEN SELECTED BY STATE FOR
REVIEW
17. By signing this application, I certify (1) to the statements contained in the list of certifications* and (2) that the statements herein are
true, complete and accurate to the best of my knowledge. I also provide the required assurances * and agree to comply with any resulting
terms if I accept an award. I am aware that any false, fictitious. or fraudulent statements or claims may subject me to criminal, civil, or
administrative penalities. (U.S. Code, Title 18, Section 1001)
Q * I agree
* The list of certifications and assurances, or an Internet site where you may obtain this list, is contained in the announcement or agency specific instructions.
18. SFLLL or other Explanatory Documentation
.Add Attachment C_.1.._ ~'~,aa+^(im~rit ~a~v Attachin~~~t
19. Authorized Representative
Prefix: * First Name: Michael Middle Name:
* Last Name: xrause Suffix:
* Position/Title: Consultant
* OrganlZatlOn: Kandiyohi Development Partners
Department: Division:
* Street1: 250 Marquette Avenue
Street2: suite 1350
* City: Minneapolis County /Parish:
* State: MN: Minnesota Province:
* COUntry: USA: UNITED STATES * ZIP /Postal Code: 55401-2180
* Phone Number: 612-455-2177 Fax Number:
* Email: michaelk@kandiyo. com
* Signature of Authorized Representative * Date Signed
Michael Krause 07/14/2009
20. Pre-application Add Attachment Delete AtiaCiin~ent ~ r ~':,rs~rncnt °'
RESEARCIi & RELATED BUDGET (TOTAL FED + NON-FED) -SECTION A, BUDGET PERIOD 1
* ORGANIZATIONAL DUNS: 10931053020000 (
* Budget Type: QX Project ~ Subaward/Consortium
Enter name of Organization: (City of Dubuque 1
* Start Date: 109/21/20091 * End Date: 112/31/20101 * Budget Period:
A. Senior/Key Person
1. Prefix * First Name Middle Name * Last Name
I I (David I I IHeiar
* Project Role
IPD/PI I
Cal. Acad. Sum. * Total (Sal & FB)
Base Salary ($) Months Months Months * Req. Salary ($) * Fringe Ben. ($) (Fed + Non-Fed)($) * Federal ($)
I I I I I II 110.00 110.00 110.00 1 10.00
2. Prefix * First Name Middle Name * Last Name
II II II
* Project Role
OMB Number: 4040-0001
Expiration Date: 06/30/2011
Suffix
I I
* Non- Federal ($)
0.00 ]
Suffix
I~
CaI. Acad. Sum. * Total (Sal & FB)
Base Salary ($)
I Months
II I Months
I I Months
I I * Req. Salary ($)
I * Fringe Ben. ($)
II (Fed + Non-Fed)($)
II * Federal ($)
II * Non- Federal ($)
II
3. Prefix
I * First Name
II Middle Name
II * Last Name
II Suffix
II
* Project Role
l
Cal. Acad. Sum. * Total (Sal & FB)
Base Salary ($)
I Months
II I Months
L I Months
I I * Req. Salary ($)
I * Fringe Ben. ($)
II (Fed + Non-Fed)($)
II * Federal ($)
II "Non- Federal ($)
II 1
4. Prefix * First Name
II Middle Name
II * Last Name
II Suffix
II
* Project Role
Cal. Acad. Sum. * Total (Sal & FB)
Base Salary ($) Months
II I Months
L I Months
I I * Req. Salary ($)
I * Fringe Ben. ($)
II (Fed + Non-Fed)($)
II * Federal ($)
II * Non- Federal ($)
II 1
RESEARCH & RELATED Budget {A} (Total Fed + Non-Fed)
RESEARCH & RELATED BUDGET (TOTAL FED + NON-FED) -SECTION A, BUDGET PERIOD 1
* ORGANIZATIONAL DUNS: 10931053020000 I
* Budget Type: Q Project ~ Subaward/Consortium
Enter name of Organization: (City of Dubuque
* Start Date: 109/21/20091 * End Date: (12/31/20101 Budget Period
A. Senior/Key Person (continued)
5. Prefix * First Name Middle Name
II II * Last Name
II
* Project Role
(
Cal. Acad. Sum. * Total (Sal & FB)
Base Salary ($) Months Months Months * Req. Salary ($)
II II II II I * Fringe Ben. ($) (Fed + Non-Fed)($)
I II * Federal ($)
1 ~
6. Prefix * First Name Middle Name
I II ~~ * Last Name
II
* Project Role
(
Cal. Acad. Sum. * Total (Sal & FB)
Base Salary ($) Months Months Months * Req. Salary ($)
II I~ II II I * Fringe Ben. ($) (Fed + Non-Fed)($)
I II * Federal ($)
I ~
7. Prefix * First Name Middle Name
I II II * Last Name
II
* Project Role
I
(
Cal. Acad. Sum. * Total (Sal & FB)
Base Salary ($) Months Months Months * Req. Salary ($)
II IC II II I * Fringe Ben. ($) (Fed + Non-Fed)($)
I II * Federal ($)
I
8. Prefix * First Name Middle Name
II II * Last Name
II
* Project Role
I
Cal. Acad. Sum.
* Total (Sal & FB)
Base Salary ($) Months Months Months * Req. Salary ($)
II II II II * Fringe Ben. ($) (Fed + Non-Fed)($)
II II * Federal ($)
9. Total Funds requested for all Senior Key Persons in the attached file I I 1
Total Senior/Key Person 10.00 110.00
* Additional Senior Key Persons: ~ I I Add Attachment ~ 1Dele~~ A4fachmen:~,, Jo.. ~;,,,ment l
RESEARCH & RELATED Budget {A) (Total Fed + Non-Fed)
Suffix
JI
* Non- Federal ($)
Suffix
* Non- Federal ($)
Suffix
* Non- Federal ($)
I
Suffix
I I
* Non- Federal ($)
II
( 10.00
RESEARCH ~ RELATED BUDGET (TOTAL FED + NON-FED) -SECTION B, BUDGET PERIOD 1
* ORGANIZATIONAL DUNS: 10931053020000 1
* Budget Type: QX Project ~ Subaward/Consortium
Enter name of Organization: 1City of Dubuque 1
* Start Date: 109/21/20091 * End Date: 12/31/20101 Budget Period
B. Other Personnel
* Number of Cal. Acad. Sum. * Req. Salary ($) * Fringe Ben. ($) * Total (Sal 8~ FB) * Federal ($) * Non- Federal ($)
Personnel * Protect Role Months Months Months (Fed + Non-Fed) ($)
Post Doctoral Associates 1 11 1) 11 ~1 11 1~ 1~
Graduate Students 1 (1 11 (1 ~1 11 (1 11
Undergraduate Students 1 11 11 11 11 11 11 11
Secretarial/Clerical 1 11 1) (1 1) 11 (1 11
U I II II II II II II II
~ I II II II II II II II
U I II II II II II II II
u
u
0
Total Number Other Personnel Total Other Personnel 1 II 11
Total Salary, Wages and Fringe Benefits (A+ B) 10.00 110.00 lo. 00
RESEARCH & RELATED Budget {B} (Total Fed + Non-Fed)
RESEARCH & RELATED BUDGET (TOTAL FED + NON-FED) -SECTION C, D, & E, BUDGET PERIOD 1
* ORGANIZATIONAL DUNS: 0931053020000 ,
* Budget Type: ^X Project ~ Subaward/Consortium
Enter name of Organization: (city of Dubuque
* Start Date: 109/21/2009] "End Date: 112/31/20101 Budget Period
C. Equipment Description
Last items and dollar amount for each item exceeding $5,000
* Equipment item
* Total (Fed +
* Federal ($) *Non-Federal ($) Non-Fed) ($)
1. 1
3.1 I ~ ll ~I I
4. ~ ~lI II II _ ~
5. ~ _ II ~I ~I ~
6. I _ II II II 1
$. L ~ II ~~
9. ~ ~r II ~
10.1 II I~ II
11. Total funds requested for all equipment listed in the attached file ( I II
Total Equipment ~ ~~ ~~
* Additional Equipment: ~ ~ ' Atld Attachment ~ ~ Delete Attachment ~ 1tieLar fitYachrnent
D. Travel
1. Domestic Travel Costs (Incl. Canada, Mexico and U.S. Possessions)
2. Foreign Travel Costs
Total Travel Costs
* Federal ($) *Non-Federal ($)
~ II
II
~ II
* Total (Fed +
Non-Fed) ($)
E. Participant/Trainee Support Costs
1. Tuition/Fees/Health Insurance
2. Stipends
3. Travel
4. Subsistence
5. Other
1 1 Number of Participants/Trainees Total Participant/Trainee Support Costs
* Federal ($) *Non-Federal ($)
I II II
~~ ~~
I I
II II
* Total (Fed +
Non-Fed) ($)
RESEARCH & RELATED Budget {C-E} (Total Fed + Non-Fed)
RESEARCH & RELATED BUDGET (TOTAL FED + NON-FED) -SECTION F-G, BUDGET PERIOD 1
* ORGANIZATIONAL DUNS: 0931053020000
* Budget Type: ®Project ~ Subaward/Consortium
Enter name of Organization: City of Dubuque
* Start Date: 109/21/2009) * End Date: 112/31/20101 Budget Period
F. Other Direct Costs
1. Materials and Supplies
2. Publication Costs
3. Consultant Services
4. ADP/Computer Services
5. Subawards/Consortium/Contractual Costs
6. Equipment or Facility Rental/User Fees
7. Alterations and Renovations
8.
9.
10.
G. Direct Costs
Total Other Direct Costs
* Federal ($) *Non-Federal ($) * Total (Fed + Non-Fed) ($)
1~ (1
r~ II
I
1
Total Direct Costs (A thru F) 1
* Federal ($) *Non-Federal ($) * Total (Fed + Non-Fed) ($)
0.0011 0.0011 0.001
RESEARCH & RELATED Budget {F-K} (Total Fed + Non-Fed)
RESEARCH & RELATED BUDGET (TOTAL FED + NON-FED) -SECTION H-K, BUDGET PERIOD 1
* ORGANIZATIONAL DUNS: 10931053020000 J
* Budget Type: QX Project ~ 5ubaward/Consortium
Enter name of Organization: (city of Dubuque
* Start Date: 109/21/2009 * End Date: 112/31/20101 Budget Period
H. Indirect Costs
Indirect Cost Indirect Cost
* Indirect Cost Type Rate (%) Base ($)
7. 1 11
i. 1 11
s. 1 11
4. 1
Total Indirect Costs
Cognizant Agency
I. Total Direct and Indirect Costs
J. Fee
Total Direct and Indirect Costs (G + H)
* Federal ($) *Non-Federal ($) * Total (Fed + Non-Fed) ($)
I 11
~I II ~
II II ~
II II ~
(Agency Name, POC Name, and Phone Number)
* Federal ($) *Non-Federal ($) * Total (Fed + Non-Fed) ($)
0.0011 0.0011 0.00
Federal ($)
IC. * Bud et Justification 1 ^t~_' ,,t (LDelete Attachment 1 ~ View Attachment 1 (Only attach one file.)
9 ~Budaet Justification.7.14.09.XL5
RESEARCH & RELATED Budget {C-E} (Total Fed + Non-Fed)
RESEARCH & RELATED BUDGET (TOTAL FED + [VON-FED) -Cumulative Budget
Total Federal ($) Total Non-Federal ($)
Section A, Senior/Key Person
Section B, Other Personnel
Total Number Other Personnel
Total Salary, Wages and Fringe Benefits (A + B)
Section C, Equipment
Section D, Travel
1. Domestic
2. Foreign
Section E, Participant/Trainee Support Costs
1. Tuition/Fees/Health Insurance
2. Stipends
3. Travel
4. Subsistence
5. Other
6. Number of Participants/Trainees
Section F, Other Direct Costs
1. Materials and Supplies
2. Publication Costs
3. Consultant Services
4. ADP/Computer Services
5. Subawards/Consortium/Contractual Costs
6. Equipment or Facility Rental/User Fees
7. Alterations and Renovations
8. Other 1
9. Other 2
10. Other 3
Section G, Direct Costs (A thru F)
Section H, Indirect Costs
Section I, Total Direct and Indirect Costs (G + H)
Section J, Fee
0.00
Totals ($)
O.OOII O.OOI
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0.00~~ 0.0011 0.00
0.00~~ 0.0011 0.00
RESEARCH & RELATED Budget (Total Fed + Non-Fed)
OMB Number: 4040-0010
ProjecflPerf®rrrtance Sife L®cafion(a) Expiration Date: 08/31/2011
I am submitting an application as an individual, and not on behalf of a company, state,
Project/Performance Site Primary Location ^ local or tribal government, academia, or other type of organization.
Organization Name: (City of Dubuque
DUNS Number: 0931053020000
*Street1: g00 Washington Street
Street2:
* City: Dubuque County:
* State: IA: Iowa
Province:
* Country: USA: UNITED STATES
* ZIP /Postal Code: 52 001-48 64 * Project/ Performance Site Congressional District: IA-001
ProjecUPerformance Site Location 1 ~ I am submitting an application as an individual, and not on behalf of a company, state,
local or tribal government, academia, or other type of organization.
Organization Name:
DUNS Number:
* Streetl:
Street2:
* City: County:
* State:
Province:
* Country: USA: UNITED STATES
'ZIP /Postal Code: * Project/ Performance Site Congressional District:
OMB Number: 4040-0001
Expiration Date: 06/30/2011
RESEARCH ~ RELATED Senior/Key Person Profile (Expanded)
PROFILE -Project Director/Principal Investigator
Prefix: * First Name: David Middle Name:
* Last Name: xeiar Suffix:
Position/Title: Department:
Organization Name: city of Dubuque Division:
* Street1: 50 West 13th Street
Street2:
* City: Dubuque County/ Parish:
* State: IA: Iowa Province:
* COUntry: USA: UNITED STATES * Zip /Postal Code: 52001-4864
* Phone Number: 563-589-4393 Fax Number:
*E-Mail: dheiar@cityofdubuque.org
Credential, e.g., agency login:
* Project Role: pp/pI Other Project Role Category:
Degree Type:
Degree Year:
*Attach Biographical Sketch bio. xeiar.pdf Aid ~itachi3ent ' Delete Attachment View Attachment
Attach Current & Pending Support Add Attachment Delete ~;tiachmei~t ~1i{ - ~hmrnt
PROFILE -Senior/Key Person 1
Prefix: * First Name: Middle Name:
* Last Name: Suffix:
Position/Title: Department:
Organization Name: Division:
* Street1:
Street2:
* City: County/ Parish:
* State: Province:
* COUntry: USA: UNITED STATES * Zip /Postal Code:
* Phone Number: Fax Number:
* E-Mail:
Credential, e.g., agency login:
* Project Role: Other Project Role Category:
Degree Type:
Degree Year:
*Attach Biographical Sketch Add Attachment ' D~;iete Attacht ~:r: 1/i~t^' ~t hp~^n
Attach Current & Pendin Su
g pport ;,;,;.~„;
Add Attachment Deie' _ ~Y ~ n~ ~ ~ !.
Delete Entry
Next Person
To ensure proper performance of this form; after adding 20 additional Senior/ Key Persons; please save your application, close the Adobe
Reader, and reopen it.
RESEARCH ~ RELP-°fE® ®ther Project Information
1. * Are Human Subjects Involved? ~ Yes ®No
1.a If YES to Human Subjects
Is the Project Exempt from Federal regulations? ~ Yes ~ No
If yes, check appropriate exemption number. ~ 1 ~ 2 ~ 3 ~ 4 ~ 5 ~ 6
If no, is the IRB review Pending? ~ Yes ~ No
IRB Approval Date: ~-~
Human SubjectAssurahce Number:
2. * Are Vertebrate Animals Used? ~ Yes QX No
2.a. If YES to Vertebrate Animals
Is the IACUC review Pending? ~ Yes ~ No
IACUC Approval Date:
Animal Welfare Assurance Number
3. * Is proprietary/privileged information included in the application? ~ Yes QX No
4.a. * Does this project have an actual or potential impact on the environment? X^ Yes ~ No
4.b. If yes, please explain: Requires air permit from Iowa DNR
4.c. If this project has an actual or potential impact on the environment, has an exemption been authorized or an environmental assessment (EA) or
environmental impact statement (EIS) been performed? ~ Yes ~ No
4.d. If yes, please explain:
5. * Is the research performance site designated, or eligible to be designated, as a historic place? ~ Yes X^ No
5.a. If yes, please explain:
6. * Does this project involve activities outside of the United States or partnerships with international collaborators? ~ Yes ^X No
6.a. If yes, identify countries:
6.b. Optional Explanation:
7.*ProjectSummary/Abstract oo4.project summary.pdf Adc{',tt;~et~rnUt7t Delete Attachment View Attachment
8. * Project Narrative 004. Proj ect Narrative.pdf A '~~ ~~~ ~t Celete Attachment View Attachment
...
9. Bibliography & References Cited Add Attachment C7ele ~ +~ en ~a`iea^J ~.iacl-~mei ~i
10. Facilities & Other Resources Add Attachment Delei~ Ati~chrt~L ~: ~oe;~F A!iachme~~t
11. Equipment _ Add Attachment D2(~te F~;aci:~~~~nt Voc`y~ Afa u~~i
12. Other Attachments Add. Attachments Delete Attachments View Attachments X~
Project Summary "Area 2: City of Dubuque District Energy System"
The City of Dubuque is working with private property owners and coordinating other
public infrastructure investments to implement a district energy system as part of a larger
effort to revitalize its downtown area and create a model sustainable redevelopment area
in the Millwork District. The Millwork is a 28-building former industrial area adjacent to
the Mississippi River and downtown business district consisting of large and medium size
masonry structures found in many older communities. Most of the buildings are under-
utilized and use energy inefficiently due to their age and out-dated mechanical systems.
A recent announcement by IBM that it is bringing 1,300 new jobs to downtown Dubuque
has accelerated plans by the City and developers to renovate the nearby historic Millwork
District. The goal is to create an urban, mixed-use neighborhood with community retail
and services and up to 600 units of new housing that once completed will be a national
model for integration ifenergy-efficient technologies in historic structures. A number of
existing industrial businesses, including one that has an on-site boiler for generating
energy and industrial process steam, will be integrated into this new neighborhood. Plans
developed by a broad group of stakeholders and approved by the City have the unique
characteristic of balancing high-performance energy-efficiency and sustainability with
the sensitive treatment of the historic buildings and character of the District.
Dubuque recognizes that greater energy efficiency, reductions in greenhouse gases, water
conservation, smart-grid and renewable energy technologies are vital to an economically
and environmentally sustainable community. As a result, the City is proposing to
establish a district energy system as a first phase of innovative energy and water systems
that build on existing infrastructure, leverage public and private sector job creation,
improve the competitiveness of the existing industries, and create a strong foundation for
the ongoing process of conversion to renewable and local sources of energy. The district
energy system will serve the area in downtown that will house IBM's new employees and
can be expanded to more of the downtown area as other thermal energy sources are
identified and developed. Other initial projects include innovative water conservation
measures and metering and smart grid technologies being developed by IBM in Dubuque.
The outcome of this project will be a sustainable urban community created in a district of
historic structures and uses that can serve as a model for other communities across the
nation. The specific goals of the project seeking federal funding are to implement a
district energy system to serve new mixed use redevelopment, renovated IBM facilities,
and preserve jobs at existing industrial manufacturers in the Millwork District.
The City commissioned an initial study of district energy for the Millwork District that
will be completed in August. Engineering and design work, permitting and contractual
negotiations to establish the system's business structure will commence in September
with construction scheduled to begin in March 2010. The project expects to preserve 75
industrial jobs in the District, create 150 jobs during construction of the district energy
system and redevelopment of the Millwork District, and create 25 permanent new jobs
operating the district energy system and fuel supply network.
Project 1®Tarrative Area 2: City of Dubuque District Energy System
Project ®bjectives
The City of Dubuque is working with private property owners and coordinating other
public infrastructure investments to implement a district energy system as part of a larger
effort to revitalize its historic Millwork District and downtown area while creating a
comprehensive model for sustainable redevelopment. The goal is to develop an urban,
mixed-use neighborhood with office space, community retail and commercial services
and about 600 units of new housing. A number of existing industrial businesses,
including one that currently has an on-site boiler for generating energy and industrial
process steam, will remain and be integrated into this new neighborhood.
Dubuque recognizes that greater energy efficiency, reductions in greenhouse gas
emissions, water conservation and the transition to smart-grid and renewable energy
technologies are all vital to an economically and environmentally sustainable community.
As a result, the City is proposing to construct abiomass-fueled boiler and district energy
system as part of a first phase of innovative energy and water systems that will be the
basis for ongoing efforts in sustainable urban redevelopment.
The district energy system will serve an area of 28 older, under-utilized buildings in a
historic industrial area and a part of downtown that will house 1,300 new IBM
employees. The district energy system may be expanded to more of the downtown area
as other thermal energy sources are identified and developed. Other projects in this
initial phase of work include innovative water conservation measures, urban-scale solar
and wind energy development, and metering and smart grid technologies being developed
by IBM as part of a proposed partnership for research and development in smart grid
technology applications with the City of Dubuque.
The outcome of this project will be a sustainable urban community created in a district of
historic structures and uses that can serve as a model for other communities across the
nation. The specific goals of this project seeking federal funding are to implement a
district energy system to serve new mixed use redevelopment, parts of downtown
including renovated facilities for IBM, and preserve jobs at existing industrial
manufacturers in the Millwork District.
Merit Review Criteria Discussion
CRITERION 1: Ability to Preserve or Create Domestic Jobs
The project expects to preserve at least 65 industrial jobs in the Millwork District at an
existing industrial manufacturer that makes interior and exterior door components from
wood wastes. The company currently has its own wood-fired boiler system for
generating process steam used in its industrial process, utilizing waste wood material that
does not meet specifications for its manufacturing process. Due to the downturn in
construction markets, the company has not made capital investments to upgrade its
equipment or boiler system, which dates from 1942 and cannot be operated at its
boilerplate capacity. In addition to providing thermal energy for a district energy system,
this proposal by the City of Dubuque would design and construct abiomass-fueled boiler
system that has sufficient capacity to sell process steam to this manufacturer while also
purchasing its unusable wood wastes for a portion of the project's fuel needs. Amore
efficient biomass boiler and lower costs for process steam will enhance the viability of
this building materials manufacturer and make it more likely that these existing industrial
jobs can be retained in Dubuque.
In addition to this industrial job retention, an estimated 98 jobs will be created during
design and construction of the district energy system and redevelopment of the Millwork
District. Based on construction labor cost estimates for boiler and district energy systems
of similar scale, the development of the biomass boiler system itself will create 70
construction jobs over a period of about 10 months beginning in March 2010. An
additiona128 construction jobs will be created from installation of a piping distribution
system for district energy (14) and internal distribution piping within the buildings that
will be redeveloped as part of the City's Millwork District plan (14). There are several
experienced firms in the Dubuque area that are expected to be competitive bidders for
this work, which will occur in the timeframe from October 2009 through the end of 2010.
An additiona128 permanent new jobs will be required for operation and maintenance of
the district energy system and as part of the system's fuel supply network. This is based
on current industry staffing structures (16) for operation of similar systems with three
fulltime shifts at average salaries of $63,000 a year plus benefits for district energy
employees. Lower salaries will be paid for jobs (12) associated with collection,
processing and transport of biomass fuel at satellite locations with two fiilltime shifts.
These employment numbers do not include 1,300 new jobs that are coming to downtown
Dubuque as part of a new IBM service center, although IBM made its decision to locate
in Dubuque in part on the basis of the City's strong commitment to sustainable
development strategies. The projections do not include jobs created as a result of street
and utility infrastructure work that is included in the City's capital improvement plans for
the Millwork District, and is currently being designed to be done in coordination with
construction of the district energy system on a similar timeline. These city investments
include $3.6 million for street reconstruction, streetscape improvements, fiber optic cable,
storm sewer, watermain and sanitary sewer improvements over the next four years.
The projections also do not include an estimated 304 construction jobs created by the
investment of $76 million in mostly private capital to redevelop 900,000 square feet of
housing and mixed use space in the Millwork District, based on an average
redevelopment cost per square foot of $85. This job creation is based on an estimated 60-
40 split between material and labor costs for redevelopment and fully-loaded costs of
$100,000 per job.
All together, the $19.8 million investment being requested from federal sources for this
project will directly create or leverage over 1,700 high-quality, permanent and temporary
jobs in the Greater Dubuque region within the next 2-3 years.
CRITERION 2: Project Management and Resources
2
Ability to initiate the project expeditiously. The City of Dubuque has an established
track record of successfully implementing innovative redevelopment projects such as the
one being proposed. In 1985, Dubuque was one of six pilot Urban Main Street programs
and remains the longest-running Main Street program in the U.S. With public and private
investments of nearly $300 million, first floor vacancy rates in downtown were reduced
from 55 percent to 10 percent and 7,000 people now work in downtown. Dubuque was
the first recipient of the Great American Main Street Award in 1995.
In the 1990s, Dubuque initiated the Vision 2000 process with over 5,000 residents
participating in a community planning process. The result was a shared vision for the tri-
state area that serves as a guide to community decision making and long-range planning.
The City of Dubuque Comprehensive Plan was built around Vision 2000 with policies
and goals for the physical, economic and social well-being of the community.
A downtown master plan was adopted in 2004 as a working document for implementing
transportation, business recruitment, parks and open space, cultural amenities and
housing plans. In 2005, community leaders invited 10,000 to 15,000 members of the
public to again create Envision 2010, a list of 10 priority projects from among 2,000
ideas that would engage the community and create unique, well-designed urban
infrastructure. Out of that process was born the Historic Millwork District project,
modeled after the City's successful downtown redevelopment efforts and workforce
recruitment strategies. The City and residents of Dubuque laid the groundwork for the
implementation of a district energy project as part of a Warehouse District Revitalization
Strategy that was adopted by the Dubuque City Council in August 2007 and again in
2008 through a consultant study and community process that created detailed plans and
clear sustainability goals for the City overall and the Millwork District in particular.
The City of Dubuque established partnerships with several organizations on the
America's River Project, a $188 million development that included the National
Mississippi River Museum and Aquarium, Riverwalk, Grand River Conference Center
and Grand Harbor Resort and Water Park. America's River Project at the Port of
Dubuque is amulti-phase, $400 million initiative on a 90-acre former industrial site that
will also include Star Brewery and Stonecliff Winery, Alliant Energy Amphitheater,
Diamond Jo Casino and Entertainment Complex, Port Public Parking Facility and new
corporate headquarters for McGraw-Hill Higher Education and Durrant Group.
The City retained experienced consultants in April of this year to undertake a technical
feasibility, financial modeling and business case analysis for a district energy system in
the Millwork and downtown areas that will be completed in a matter of weeks. The
initial analysis identified the need for boiler systems with capacity of about 59,000
pounds at peak levels, with about 20,000 pounds required to provide industrial process
steam to manufacturers. The study has also developed domestic hot water forecasts and
estimated building cooling needs based on a range of development scenarios. The
consultants report includes preliminary designs for a distribution piping system in the
public right of way and possible vendors and cost ranges for major district energy
equipment components.
3
On the business side, the consultants report will recommend a business structure for the
district energy system, review permitting and land use requirements, risk mitigation
strategies, and develop financial models for construction pro formas and system
operations. The City of Dubuque is expected to review the consultants' report and
recommendations in August and make decisions on the next steps for implementing a
district energy system within 60 days of a grant award from the Department of Energy.
Detailed design approach. The parameters for a Millwork district energy system were
developed by consultants using the specific planning information from the 2008 master
plan and information provided by City staff on downtown buildings that are likely to be
the best candidates for district energy. The Millwork District master plan calls for
redevelopment of about 900,000 square feet of space into residential units, offices and
retail space while preserving most of the industrial uses within the District. The master
plan also recommends certain utility and street improvements to connect the Millwork
District with the downtown business district, Port of Dubuque, and the adjacent
Washington neighborhood, aloes-income neighborhood where additional revitalization is
taking place and future expansion of district energy can occur.
Three energy load scenarios have been evaluated by the district energy consulting team
based on peals loads for heating, cooling, domestic hot water and industrial steam
customers using building space projections, building shape files for the downtown area
and load density factors based on space usage type. In order to capture the projected
energy use from firture developments, a comprehensive set of building space usage types
was assumed for estimating thermal loads. For new commercial space, these uses
included conventional offices, retail, hotels and industrial operations. Residential uses
included apartments, condominiums and individual townhouses. Based on the master
plan, projected uses in the Millwork District were assumed to be 61 percent residential,
31 percent office and 8 percent retail in addition to existing industrial uses.
Space heating, domestic hot water (DHW) and cooling load density factors for each
building space usage type were developed after evaluating data using TERMIS computer
software, weather data for the Dubuque area, and information from other district energy
systems. Total projected district heating demand was projected in million Btu per hour
(MMBtu/hr) units for each scenario. This demand is "undiversified," or the total of all
individual customer demands regardless of when individual peak demands may occur but
was adjusted to reflect peak heating demand by multiplying by the weighted average
equivalent full load hours (EFLH).
In addition, industrial uses in the Millwork District were surveyed on the type, age and
efficiency of their existing boiler systems, hourly steam production, water temperatures
and pressures for the most recent one-year period. Together with forecasted loads from
redevelopment and estimates for existing downtown buildings, the City's consultants
estimated 160,000 MMBtus in annual heating needs, 59.2 MMBtus per hour at peals
periods, and 2,757 tons of cooling at the high end of the scenario ranges. For future
discussions of combined heat and power systems, the study forecast 11.1 megawatts of
electrical power demand. These demand estimates will be the basis of recommendations
4
on optimal boiler capacities to serve both district energy needs and industrial process
steam requirements for existing manufacturers. The feasibility study also conducted a
screening analysis of technology options for producing heating, cooling and possibly
electrical power to meet the energy requirements of the study area.
The broader energy infrastructure was assessed to determine if the current natural gas
supply infrastructure could accommodate the maximum gas requirements. Current and
potential future prices of natural gas were estimated for input into the economic model as
was the supply and pricing of electrical power. Study-area-specific utility infrastructure
was examined in order to identify any technology constraints and guide selection of
candidate sites for a district energy plant. Three potential sites have been identified based
on this analysis, including a site owned by the City, City-owned right-of--way that is
adjacent to an under-used area owned by an existing industrial business, and a site that is
completely privately owned but may be available for acquisition from a willing seller.
A variety of individual heating, cooling and CHP technology options have been evaluated
on the basis of overall energy efficiency, capital and operating costs, site characteristics
and infrastructure constraints, reliability and proximity to demand, and environmental
impacts. Technology options for thermal energy distribution within the district energy
system as well as options for building interface and internal distribution were analyzed.
A summary of the comparative analysis of technology options will be presented in the
consultants' report and recommendations will be made to the City.
Status of partnerships. The City of Dubuque has an established history of public-
private partnerships and has actively engaged private building owners and industrial
businesses in the Millwork District in planning efforts, public improvements and as part
of the district energy feasibility study that is underway. A grassroots conference on
biomass energy was held in 2008 and will continue on an annual basis. Consultants have
been asked to create a business case for a district energy system that will result in a high
level of voluntary participation in the system among private land owners and businesses.
Four major property owners in the Millwork District have entered into a Memorandum of
Understanding with the City for redevelopment efforts and the City maintains an active
partnership with the Great Dubuque Development Corporation and local utility partners.
Redevelopment of the Millwork District with sustainable energy infrastructure has the
potential to meet the business objectives of developers fora "triple bottom line" of
economic, environmental and social payback. The City recognizes that it must establish
a district energy system that makes economic sense for building owners, reduces their
investment risks and supplies energy with better reliability than conventional approaches.
It is estimated that the establishment of a district energy system may reduce initial capital
costs for redevelopment of buildings in the Millwork District by 5-10 percent.
As a result of the feasibility study, the City will consider joint ownership of the district
energy system with users of the energy services as a way to share benefits, maintenance
and operating responsibilities. Ownership options have been evaluated based on the
goals of the project among the City and building owners in the Millwork District:
• Access to a range of project financing sources, including state and federal grants,
tax credits, subsidized financing tools and market-based financing.
• Rislc-mitigation in construction and operation of the system that can address
energy costs and price stability, as well as changing environmental parameters.
• Maximizing cooperative participation in the system among existing industrial
businesses and the owners of buildings with new mixed uses in the District.
• Flexibility that can best accommodate future expansions of the district energy
system and support the City's ongoing development and sustainability agenda.
• Ability to maximize wealth and job-creation benefits of construction spending,
day-to-day operations and equity participation within the regional economy.
Municipal governments in Iowa have broad authority to enter into cooperative
arrangements that serve the public interest. Chapter 28E of Iowa law sets parameters for
the joint exercise of governmental powers for purposes of "efficient use of (local
governments) powers by enabling them to provide joint services and facilities with other
agencies and to co-operate in other ways of mutual advantage." Chapter 28E allows for
cooperation between public agencies and private agencies, which are defined as any form
of business organization recognized under state law, including limited liability
corporations and cooperatives. Muh~al activities may be carried out by joint agreement
among existing entities or creation of a new and separate agency by passage of an
ordinance or resolution. Public agencies are also given broad authority to appropriate
funds or provide other personnel or services to joint ventures and issue bonds to finance
joint facilities subject to the same terms and conditions as if the local government was
undertaking the project on its own.
Environmental certifications. Permits are currently in place for the existing industrial
boiler systems in the Millwork District. For a new wood-fired boiler, a construction
permit is required for systems greater than 1.0 MMBTU per hour heat input. Facilities
with potential emissions greater than 100 tons for any criteria pollutant require a Title V
operating permit from the Iowa Department of Natural Resources.
Based on similar boiler systems and controls, district energy is expected to have
emissions of 0.1 pounds per MMBtu for carbon monoxide and nitrous oxide, 0.038
pounds per MMBtu for particulate matter (PM10), and 0.025 pounds per MMBtu for
sulfur dioxide. Emissions for volatile organic compounds (VOCs) and hazardous air
pollutants (HAPs) are estimated at 0.017 pounds per MMBtu. At these levels, the facility
anticipated in the feasibility study would fall below 100-ton thresholds and be classified
as a minor source of pollutants that would not trigger a mandatory EAW for emissions.
Preliminary discussion with staff at the Iowa Department of Natural Resources indicates
that permitting timelines for such facilities are typically 90 days. The establishment of a
district energy system, without limited cogeneration of electrical power, would not be
subject to rate regulation by the Iowa Public Utilities Board or any tariff restrictions. The
area has undergone Phase I assessments and no Brownfield areas have been identified.
6
Supplier and equipment commitments. Preliminary discussions with several major
domestic boiler manufacturers indicate that all systems and equipment can be obtained
within the projected timelines based on initiation of procurement in November 2009.
This is due to some slackening of demand for boiler systems during the economic
downturn. Installed costs for boiler systems are also within projected budgets. Further
detail on estimated costs is included in financial models included with this proposal.
Expected sites. Because most fuel storage and processing will be done at remote
locations with fuel delivered to the district energy boiler combustion-ready, a limited site
area is required for location of the new boiler. Three sites have been identified for
location of a new biomass-fired boiler system that offer proximity to demand for district
energy. One site is fiilly owned by the City within the Millwork District and a second
site includes some City-owned right-of--way that is adjacent to an under-utilized area that
is currently owned by an existing industrial business in the District. A third site is
privately-owned but is possibly available for acquisition from a willing seller.
The City of Dubuque owns most of the streets and public rights-of--way in the Millwork
District and is acquiring fee title rights for those portions of streets it does not currently
own. Iowa law generally gives broad discretion to municipal governments in granting
easement rights for utilities and the piping that would be required for a district energy
distribution system. There are no legal barriers to the granting of these rights to private,
public, not-for-profit entities or joint agencies provided there is a general public purpose
for the easements, which includes economic development objectives.
Barriers and risks. The most significant barrier will be coordination of all activities
among public sector infrastructure improvements and private sector redevelopment
efforts. It appears that most activities fall within a similar timeline based on design and
engineering completed by the end of 2009 and most primary construction starting at the
beginning of the construction season in early 2010 and concluding by the end of the year.
There is unlikely to be any major disruption to industrial operations which will continue
to use existing boiler systems while the new boiler and district energy distribution system
is under construction.
Risk management strategies are being addressed as part of the feasibility analysis for the
district energy system that is underway. Risks are likely to be mitigated by establishment
of a separate ownership and operating structures and shared risks as part of contractual
agreements with equipment vendors and service providers. Energy services may be
priced based on a split between capacity payments that cover fixed costs and an energy
payment reflecting variable costs and actual energy usage.
Project management plan. The City has developed criteria and established a tentative
schedule for making critical go/no-go decisions for this project. Consideration of
whether to pursue a district energy system will be based on the following objectives:
® Economic performance including costs of service, price competitiveness and
stability, return on investment commensurate with risks and community benefits.
7
® Responsiveness to sustainable development objectives set forth in 11 principles
adopted by the City Council after acommunity-wide planning process.
® Ability to retain existing industrial jobs, create and leverage construction jobs and
new permanent jobs as a result of public and private sector investments.
® Measurable reductions in greenhouse gas emissions through greater energy
efficiency and cleaner forms of energy production.
® Ability to contribute to local energy efficiency and security by shifting from fossil
fuel based heating and cooling systems to alternative forms of energy.
® Establishment of infrastructure to provide utility services that support superior
ecological and economic performance.
® Support for abroad-based model of sustainable urban redevelopment in the
Millwork District and Dubuque as a whole.
City staff and elected officials will review the district energy feasibility report and
consider its findings in August 2009. Based on this initial go/no-go decision point,
additional design, engineering, financing and contractual negotiations work will be done
over the following 120 days to reach a second go/no-go decision point in January 2010.
One additional milestone will be submission of an application to support the district
energy system to the Iowa Power Fund on August 3. This application will request up to
$3 million of state funding support for this project and will be a portion of the match for
federal funding. The submittal is in response to recommendations from State of Iowa
staff who have encouraged the City to pursue district energy in the Millwork District.
Roles and contributions of team members. The City of Dubuque has a demonstrated
ability to successfully manage and complete large-scale economic development projects.
The Dubuque Economic Development Department will identify and contract for technical
and professional services as needed to complete the goals of this project. The basis for
development of a district energy system will be the feasibility study and business case
analysis conducted by FVB Energy and Kandiyohi Development that the City will rely
on in malting its decisions.
FVB Energy Inc. is North America's leading engineering and consulting firm
specializing in district energy and combined heat and power (CHP) systems, with offices
in Minneapolis (USA), Toronto and Edmonton (Canada), Manama (Bahrain) and
Stockholm, Vasteras and other cities in Sweden. FVB has a breadth and depth of
experience in helping cities develop prudent and sustainable energy system. The firm's
reputation in district energy is based on years of specialized experience in business
analysis, engineering, management, marketing and energy and environmental policy. The
firm brings the benefits of European experience and expertise, particularly hot water
district heating and CHP, together with U.S. business, financial and marketing expertise
to assist with energy system planning, development and implementation.
Kandiyohi Development Partners (KDP), is a Minneapolis-based development and
consulting firm that is focusing on the business and economic analysis component of the
feasibility study. KDP focuses on renewable energy development and sustainable design
and since 2005 has been part of a dozen sustainable development and energy projects,
including development of biomass, combined heat and power facilities. KDP has
developed other business models for district energy systems and negotiated contractual
relationships for district heating. KDP also specializes in developing sophisticated
financial models for analyzing the capital costs and operating parameters of energy
projects around multiple variables and factors.
FVB and KDP have had along-standing working relationship since 2005, when FVB was
engaged by KDP to provide a district energy feasibility study for a proposed 24.5
megawatt (MW) biomass-fired combined heat and power (CHP) project located at a
former municipal waste incinerator site in Minneapolis. FVB has also worked with
Kandiyohi on a third-party "fatal flaw" engineering analysis of a 25-megawatt biomass
energy facility in Wright County, Minnesota.
CRITERION 3: Energy Benefits
Benefits of the technology. The fundamental idea of district energy is to distribute
heating in the form of hot water or steam, and cooling in the form of chilled water from a
highly efficient central plant to individual buildings through a network of pipes. District
energy systems provide space heating, air conditioning, domestic hot water and industrial
process energy, and often also cogenerate electricity in combined heat and power (CHP)
systems, reducing the need for individual building system that are often fueled by natural
gas or electrical power from fossil fuel generation. Quantifiable benefits from the use of
wood-fired district energy systems are well-established in studies by DOE, International
District Energy Association and other international energy researchers.
Emissions of regulated pollutants from biomass-fired boilers are low and can be well-
controlled with existing emissions technologies. In particular, wood fuel contains
minimal amounts of heavy metals and low levels of sulfur. Particulate emissions from
wood are controllable through emissions controls such as bag houses, cyclone separators,
and electro-static precipitators. Bottom ash is minimal at about one percent of the weight
of the wood and can often be used as a liming fertilizer.
Extent of energy savings. While district energy systems can use a diversity of energy
resources, ranging from fossil fuels to renewable energy to waste heat, the proposal in
Dubuque is to use readily available biomass fuel resources for generating district energy.
This will result in cost-effective and carbon-neutral energy production since the cycle of
carbon sequestration from plant growth and release during combustion occurs in a
relatively short one to 10-year cycle that remains steady over time. Based on greater
energy efficiency and replacement of fossil fuels, a district energy system in Dubuque
combined with IBM's advanced system of energy controls will provide the foundation for
an ongoing process of conservation and conversion to local, renewable energy sources.
A more detailed examination of quantifiable energy benefits will be completed as part of
the feasibility study that is being completed by consultants. This will include
comparisons to abusiness-as-usual case for estimating reductions in greenhouse gas
emissions and the potential carbon credit value of the district energy system.
9
The ultimate cost of carbon emission allowances and its impact on energy prices will
depend on many factors, including the level of GHG reduction commitments made by the
U.S. and the rest of the world, the specific rules of a U.S. cap-and-trade program and the
policies for integrating the U.S. trading program with international programs. Prices in
the Chicago Climate Exchange program are currently $4 per metric ton of CO2, birt a
number of U.S. corporations are using `shadow prices' and prices in the European Union
emissions trading system averaged $25 per metric ton of CO2 equivalent in 2005, spiked
to almost $40 in early 2006, then tumbled to $12 later in the year. If COZ prices reach the
range of $25 to $50 per metric ton within the decade it will equate to $1.67 to $3.34 per
MMBtti of heat produced in a natural gas boiler and give biomass district heating an
economic advantage of $1.67 to $3.34 per MMBtu compared with natural gas.
Efficiency increases. Current industrial boiler systems in the Millwork District operate
at very low efficiency levels, estimated at less than 30 percent, due to their age and years
of deferred maintenance. New biomass boiler systems have estimated efficiency levels
of at least 74 percent on a Higher Heating Value (HHV) basis depending on the type of
boiler system selected and the quality of biomass fuel supplies. Lower efficiencies may
result on a seasonal average basis if the boiler system is operated with widely variable
load ranges. Overall, the efficiency of a district heating and cooling system will benefit
from the development of thermal resources in close proximity to increased densities
within the Millwork District and throughout downtown Dubuque.
By linking energy users together into "community energy systems", district energy
systems maximize efficiency and provide opportunities to connect generators of waste
energy such as industrial facilities or wastewater treatment plants with consumers who
can use that energy. New sources of thermal energy or recovered heat can be used for
heating or can be converted to cooling using absorption chillers or steam turbine drive
chillers. Year-round demands are created by utilizing district energy systems for the
provision of domestic hot water needs as well as for industrial processes.
Adequacy of economic analysis. As part of the consultants' district energy study, a
financial model was created for evaluating capital costs and operating costs with an initial
baseline subject to sensitivity analysis on all key factors. For purposes of creating a
baseline and to establish the most likely scenario for the federal grant, the following basic
assumptions were made about the district energy system:
® 40,000 pound biomass-fuel boiler with electro-static precipitator, ash-handling
and wood-handling systems, and a 20,000 pound natural gas boiler as backup and
for limited peak periods.
® Annual energy generation based on 85 percent biomass and 15 percent gas.
® Electric centrifugal chiller units with 3,500 tons of cooling capacity.
® Full system development totaling 1,875,000 square feet including 898,000 square
feet of redeveloped space in the Millwork District and 977,000 square feet in the
downtown business district, including new IBM facilities.
® 6,390 linear feet of distribution piping with both hot water and cool water lines.
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® Boiler construction on a 5,000 square-foot city-owned site and an adjacent 20,000
square foot parcel owned by one of the industrial businesses.
Based on this model, the system would have a total project cost, including related city-
financed infrastructure improvements and private investments in internal building piping
systems, of $30.537 million, of which $19.854 million is being requested as the federal
grant resulting in anon-federal funding match of 57.8 percent. Total budget includes
procurement and installation costs for the boiler systems, chillers and distribution piping
of $15.888 million. Additional construction costs, site acquisition and indirect costs,
including a 10 percent project contingency, total $6.467 million. The non-federal match
of $11.183 million reflects city infrastructure investments, private financing of heat
exchangers and internal building distribution systems, and an Iowa Power Fund grant of
$3 million.
Fuel costs are estimated at $3 per MMBtu, or approximately $33 per wet ton, and total
annual fuel requirements of 17,707 wet tons. The estimated costs for district heating and
process steam in the first year of operation are estimated at $10.25 per MMBtu, roughly
equivalent to natural gas costs at current historically low pricing, and cooling costs at 40
cents per ton-hour. A complete copy of the baseline financial model with a breakdown of
project costs, sources and uses including non-federal matching amounts, and fixed and
variable operating costs assumptions and operating pro forma are included as attachments
to this proposal.
Relevance of Outcomes and Impacts
This project is highly responsive to the primary criteria in the program announcement of
significant job creation and the possibility for immediate implementation. The project is
focused directly on retaining existing industrial jobs, creating hundreds of temporary jobs
in construction and long-term, sustainable employment associated with operation and
maintenance of the district energy system. In addition, hundreds of jobs at IBM and
leveraged by private capital investments will be supported indirectly by this project with
the economic benefits beginning to accrue within months of grant funding.
Because the City of Dubuque established clear criteria for action and created goals as part
of a community-wide effort in 2008 to address sustainability, this project is well-
positioned to be implemented with strong community support. The City has cultivated
key partnerships among private businesses and building owners that will be important
factors for successful implementation of a district energy system. The foresight of the
City in laying this groundwork in the months leading up to passage of the Economic
Recovery Act will allow the City to quickly advance its larger goals of a model of urban
sustainable redevelopment with a project that expects to leverage millions of dollars in
additional investment. The City has also been highly mindful of its opportunities to work
closely with its private sector partners and coordinate its other infrastructure investments
to take advantage of timing and cost savings.
The overall outcome of this project will be a sustainable urban community created in a
district of historic structures and uses that can serve as a model for many other
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communities across the nation. It will help to create sustainable technologies and
strategies and develop systems that can be marketed to the 1,200 other cities across the
U.S. with populations from 30,000 to 200,000, communities in which 40 percent of all
Americans live. In addition to implementation of a district energy system, this project
will create the impetus for a more extensive inventory of readily available biomass fuels
from both community forestry and agricultural areas. It will become a critical part of a
larger system of energy control systems, sensors and smart grid technologies that will be
developed by IBM as part of its proposed partnership with the City of Dubuque.
Specifically in terms of Area of Interest 2, the project offers immediate deployment of
readily available district energy system technologies as part of a new district energy
system. This project will also break new ground in its application to an area of historic
buildings and in its close coordination between existing buildings, newly redeveloped
spaces and industrial process steam users. Although there have been recent projects in
Dubuque using geo-thermal heating and cooling systems that have built up the capacity
of local firms to do piping distribution and related work, there are currently no district
energy systems in Dubuque. The system proposed will far exceed the program guidelines
for an increase in overall efficiency of at least 25 percent, likely exceeding an increase in
efficiency of 50 percent.
Roles of participants
The City of Dubuque, through the office of the Director of Economic Development, will
be primarily responsible for implementing this project. In addition to its successful track
record of implementing large-scale redevelopment efforts in Dubuque, City staff have
shown an ability to strategically utilize outside expertise from consultants and
professional service firms to cost-effectively advance the City's redevelopment agenda.
Dubuque has created a strong staff team of professionals and professional partnerships
for implementing this project. It is not an exaggeration to say that Dubuque is considered
the clear leader among cities in Iowa and among smaller cities across the country in
advancing a comprehensive set of economic development goals that are based on a
foundation of sustainability principles.
Decisions on the specific business structure that will be created to implement and
ultimately own and operate the district energy system will be made by the City and its
private sector partners after reviewing the recommendations in the feasibility study. It is
likely that, based on the considerable flexibility allowed under Iowa statutes for joint
ventures, an ownership structure that includes City participation as well as shared
ownership and responsibilities with users of district energy services will be implemented
and advise the City during design and construction of the project.
A project team that included the City, consultants and key stakeholders in redevelopment
of the Millwork District and the downtown business district will support the
implementation of the district energy system on an expedited schedule and coordinate
this project with other public and private sector initiatives. Ultimate decision-making
will reside with the Director of Economic Development, who serves at the direction of
the City Manager based upon guidance from the Mayor and City Council.
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