EX-10.16 2 b79273a6exv10w16.htm EX-10.16 exv10w16
EXHIBIT 10.16
Confidential Materials omitted and filed separately with the
Securities and Exchange Commission. Asterisks denote omissions.
REVISED FINAL PROPOSAL
DOE Savannah River Site
Biomass Cogeneration Facility and
K and L Area Heating Plants
Submitted by:
Ameresco Federal Solutions
1820 Midpark Road, Suite C
Knoxville, TN 37921
Under DOE Contract No. DE-AM36-02NT41457
May 11, 2009

 


 

DISCLOSURE OF INFORMATION
This proposal includes data that shall not be disclosed outside the Government and shall not be duplicated, used, or disclosed—in whole or in part—for any purpose other than to evaluate this proposal. If, however, a contract is awarded to this offeror as a result of—or in connection with—the submission of this data, the Government shall have the right to duplicate, use, or disclose the data to the extent provided in the resulting contract. This restriction does not limit the Government’s right to use information contained in this data if it is obtained from another source without restriction. The data subject to this restriction are contained on all pages.

 


 

Revised Final Proposal – May 11, 2009
Ameresco Federal Solutions
Page i
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
TABLE OF CONTENTS
         
EXECUTIVE SUMMARY
    1  
1.0 ECM 1 DESCRIPTION
    4  
1.1 ECM Summary Schedule DO-4
    4  
1.2 ECM #1: Biomass Cogeneration Facility
    4  
1.2.1 Detailed Description of ECM
    4  
1.2.1.1 ECM Summary
    4  
1.2.1.2 ECM Design Process
    5  
1.2.1.3 ECM 1 Operation
    17  
1.2.2 Location Affected
    18  
1.2.3 ECM 1 Interface with Government Equipment
    20  
1.2.4 Proposed Equipment
    25  
1.2.5 Expected Lifetime
    25  
1.2.6 Physical Changes to Existing Equipment or Facilities
    25  
1.2.7 Savings Proposed
    25  
1.2.7.1 Annual Project Savings Overview
    25  
1.2.7.2 Annual Energy Baseline Consumption & Costs
    27  
1.2.7.3 Annual Energy Savings Calculations
    30  
1.2.7.4 ECM 1 Performance Measurement
    30  
1.2.8 Utility Interruptions
    35  
1.2.9 Agency Support Required
    35  
1.2.10 Potential Environmental Impact
    35  
1.2.11 ECM Property Ownership
    35  
1.2.12 ECM Project Schedule
    35  
1.3 BAMF Project Components
    36  
1.3.1 BAMF Resource
    36  
1.3.1.1 BAMF Supply
    36  
1.3.1.2 BAMF Pricing
    37  
1.3.1.3 BAMF Acquisition
    38  
1.3.2 BAMF Transportation, Metering, & Delivery
    38  
1.3.2.1 BAMF Transportation & Delivery
    38  
1.3.2.2 BAMF Metering
    38  
1.3.3 BAMF End-Use Project
    39  
1.3.3.1 BAMF End-Use Demand
    39  
1.3.3.2 BAMF End-Use Operations & Maintenance
    39  
2.0 ECM 2 DESCRIPTION
    40  
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Revised Final Proposal – May 11, 2009
Ameresco Federal Solutions
Page ii
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
         
2.1 ECM Summary Schedule DO-4
    40  
2.2 ECM #2: Biomass Heating Plants for K& L Areas
    40  
2.2.1 Detailed Description of ECM
    40  
2.2.1.1 ECM Summary
    40  
2.2.1.2 ECM Process Description
    41  
2.2.1.3 ECM Operation
    42  
2.2.2 Location Affected
    43  
2.2.3 ECM 2 Interface with Government Equipment
    44  
2.2.4 Proposed Equipment
    46  
2.2.5 Expected Lifetime
    46  
2.2.6 Physical Changes to Existing Equipment or Facilities
    46  
2.2.7 Savings Proposed
    46  
2.2.7.1 Annual Energy Savings
    49  
2.2.7.2 Annual Energy Baseline Consumption & Costs
    49  
2.2.7.3 Annual Heating Plant Performance
    51  
2.2.8 Utility Interruptions
    52  
2.2.9 Agency Support Required
    52  
2.2.10 Potential Environmental Impact
    52  
2.2.11 ECM Property Ownership
    52  
2.2.12 ECM Project Schedule
    53  
3.0 ENVIRONMENTAL IMPACT OVERVIEW
    54  
3.1 Overview of Environmental Benefits
    54  
3.2 Overview of Environmental Permitting & Assessment
    54  
4.0 ECM PERFORMANCE MEASUREMENT
    59  
4.1 Overview of Proposed Annual Savings
    59  
4.2 M&V Plan Executive Summary
    59  
4.3 Whole Project Data / Global Assumptions
    60  
4.3.1 Risk and Responsibility
    60  
4.3.2 Energy, Water, and Operations and Maintenance (O&M) Rate Data
    60  
4.3.3 Schedule & Reporting for Verification Activities
    61  
4.3.4 Status of Utility Company Incentives
    62  
4.4 ECM Specific M&V Plan and Savings Calculation Methods
    62  
4.4.1 Overview of ECM Specific M&V Plans
    62  
4.4.1.1 ECM 1: Biomass Cogeneration Facility
    62  
4.4.1.2 ECM 2: Biomass Heating Plants for K& L Areas
    62  
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Revised Final Proposal – May 11, 2009
Ameresco Federal Solutions
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  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
         
4.4.2 Energy and Water Baseline Development
    62  
4.4.3 Proposed Energy & Water Savings Calculations and Methodology
    62  
4.4.4 Operations and Maintenance Cost Savings
    62  
5.0 MANAGEMENT APPROACH
    63  
5.1 Integrated Management Review Team (IMRT)
    63  
5.2 Ameresco Management Approach
    64  
5.2.1 Ameresco Corporate Management Team
    66  
5.2.2 Program Manager
    68  
5.2.3 Engineering
    68  
5.2.4 Business Operations
    68  
5.2.5 Safety and Risk Management
    68  
5.2.5.1 Site Safety Management
    68  
5.2.6 Construction
    69  
5.2.6.1 Subcontract Management
    69  
5.2.6.2 Construction Management
    69  
5.2.7 Site Operations
    70  
5.2.7.1 Operations and Maintenance Responsibilities
    70  
5.2.7.2 Repair & Replacement Responsibilities
    74  
5.3 ECM Training
    74  
5.4 Risk/Responsibility Matrix
    75  
6.0 PROPOSAL PRICING INFORMATION
    88  
6.1 Interest Rate
    88  
6.2 Finance Procurement Price
    88  
6.3 Sales Tax
    89  
6.4 Property Tax
    90  
6.5 Insurance
    90  
6.6 Payment/Term
    90  
6.7 Cancellation/Termination/Buyout
    91  
6.8 Prepayments/Buydowns
    92  
6.9 Protection of Financier’s Interest
    92  
6.10 Security Interest in ECM Equipment
    93  
6.11 Assignment of Claims
    93  
6.12 Title to and Responsibility for Contractor Installed-Property
    93  
6.13 Construction Milestones
    94  
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Revised Final Proposal – May 11, 2009
Ameresco Federal Solutions
Page iv
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
APPENDICES
Appendices A through E and G are presented in Volume II.
Appendix F is presented in Volume III.
         
APPENDIX A – GEOTECHNICAL REPORT
    A-1  
APPENDIX B – FLOW DIAGRAMS FOR BIOMASS COGENERATION PLANT
    B-1  
APPENDIX C – EQUIPMENT LIST & MANUFACTURER INFORMATION SHEETS
    C-1  
APPENDIX D– DESIGN STANDARDS MATRIX
    D-1  
APPENDIX E – PROJECT SCHEDULE
    E-1  
APPENDIX F – PRELIMINARY DESIGN DRAWINGS
    F-1  
APPENDIX G – REVIEW COMMENTS
    G-1  
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Revised Final Proposal – May 11, 2009
Ameresco Federal Solutions
Page v
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
List of Figures
         
Figure 1.1: Proposed Cogeneration Facility Site Layout
    7  
Figure 1.2: EPI Fluidized Bed Energy System
    10  
Figure 1.3: EPI Fluidized Bed Cell
    11  
Figure 1.4: Cogeneration Facility Site Location
    19  
Figure 1.5: Biomass Cogeneration Facility Steam Interconnection
    21  
Figure 1.6: Biomass Cogeneration Facility River Water Interconnection
    22  
Figure 2.1: K Area Biomass Heating Plant Location
    44  
Figure 2.2: L Area Biomass Heating Plant Location
    44  
Figure 5.1: Integrated Management Review Team
    64  
Figure 5.2: Ameresco’s SRS Biomass Project Team
    67  
Figure 5.3: Proposed Operations Staffing
    73  
List of Tables
         
Table ES.1: Project Economic Summary
    2  
Table 1.1: SRS Site Projection Profile – Steam Demand
    17  
Table 1.2: Utility Interconnection Summary
    20  
Table 1.3: ECM 1 Annual Savings Summary
    26  
Table 1.4: O&M Baseline Costs for D-Area Plant
    28  
Table 1.5: Baseline Energy Consumption
    29  
Table 1.6: ECM 1 Post-ECM Implementation Facility Performance
    33  
Table 1.7: Project Milestones
    35  
Table 2.1: Utility Interconnection Summary
    44  
Table 2.2: ECM 2 Annual Savings Summary
    48  
Table 2.3: Baseline Operating and Maintenance Cost for K Area Plant
    50  
Table 2.4: Baseline Annual Energy Consumption for K Area Plant
    51  
Table 2.5: ECM 2 Post ECM Heating Plant Performance
    52  
Table 2.6: ECM 2 Annual Post ECM Non-Fuel Utilities Cost & Consumption
    52  
Table 3.1: Environmental Permits & Documents
    55  
Table 3.2: Annual Emissions Summary for Biomass Cogeneration Facility
    57  
Table 3.3: Annual Emissions Summary for K&L Heating Plants
    57  
Table 4.1: M&V Plan Summary
    59  
Table 4.2: Utility Cost for ECM (Post)
    60  
Table 4.3: NIST Escalation Rates
    61  
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Revised Final Proposal – May 11, 2009
Ameresco Federal Solutions
Page vi
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
LIST OF ABBREVIATIONS & ACRONYMS
     
ACSR
  Aluminum Conductor, Steel Reinforced
AIA
  American Institute of Architects
ASG
  Annual Steam Guarantee
BAMF
  Biomass & Alternate Methane Fuel
BDF
  Bio Derived Fuel
BFB
  Bubbling Fluidized Bed
Btu
  British Thermal Unit
CATEX
  Categorical Exclusion
CO
  Carbon Monoxide
CO2
  Carbon dioxide
CY
  Calendar Year
DA
  Deaerator
DC
  Direct Current
DDC
  Direct Digital Control
DES
  Detailed Energy Survey
DOE
  Department of Energy
EA
  Environmental Assessment
ECM
  Energy Conservation Measure
EPA
  Environmental Protection Agency
EPI
  Energy Products of Idaho
ESPC
  Energy Savings Performance Contract
°F
  Degrees Fahrenheit
FAR
  Federal Acquisition Regulation
FEMP
  Federal Energy Management Program
FONSI
  Finding of No Significant Impact
FY
  Fiscal Year
gpm
  Gallons per Minute
Hp
  Horsepower
ID
  Induced Draft
IMRT
  Integrated Management Review Team
IPMVP
  International Performance Measurement & Verification Protocol
kgal
  Kilogallons
klbs
  Kilopounds
kV
  Kilovolts
KVA
  Kilovolt Amperes
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Revised Final Proposal – May 11, 2009
Ameresco Federal Solutions
Page vii
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
     
kW
  Kilowatt
kWh
  Kilowatt hour
LEED
  Leadership in Energy and Environmental Design
M & O
  Management and Operations
M & V
  Measurement and Verification
MBtu
  Million British Thermal Units (1 x 106)
MOA
  Memorandum of Agreement
MOU
  Memorandum of Understanding
MVAR
  Megavolt Ampere Reactive
MW
  Megawatts
NEPA
  National Environmental Policy Act
NFPA
  National Fire Protection Association
NIST
  National Institute of Standards & Technology
NOI
  Notice of Intent to Award
NOx
  Nitrogen Oxide
NPDES
  National Pollutant Discharge Elimination System
O & M
  Operations and Maintenance
PA
  Public Address
PM
  Particulate Matter
PMT
  Project Management Team
POIC
  Point of Interconnection
PPEF
  Performance Period Escrow Fund
PPH
  Pounds Per Hour
PRV
  Pressure Reducing Valve
Psig
  Pounds per square inch gauge
PSUP
  Power Services Utilization Permit
PT
  Potential Transformer
PVC
  Polyvinyl Chloride
QC
  Quality Control
QCM
  Quality Control Manager
REC
  Renewable Energy Credit
RO
  Reverse Osmosis
ROW
  Right of Way
SCADA
  Supervisory Control and Data Acquisition
SCDHEC
  South Carolina Department of Health & Environmental Control
SCDOT
  South Carolina Department of Transportation
SCE&G
  South Carolina Electric & Gas
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Revised Final Proposal – May 11, 2009
Ameresco Federal Solutions
Page viii
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
     
SNCR
  Selective Non Catalytic Reduction
SO2
  Sulfur Dioxide
SRS
  Savannah River Site
SRNS
  Savannah River Nuclear Solutions
SSM
  Site Safety Manager
VAC
  Volts Alternating Current
VFD
  Variable Frequency Drive
VOC
  Volatile Organic Compound
Yr
  Year
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Revised Final Proposal — May 11, 2009
Ameresco Federal Solutions
Page 1
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
EXECUTIVE SUMMARY
This Revised Final Proposal (Final Proposal) submitted by Ameresco Federal Solutions, Inc. (Ameresco) is for the implementation of two biomass Energy Conservation Measures (ECMs) at the Department of Energy’s (DOE) Savannah River Site (SRS), located in South Carolina, approximately 18 miles south of Aiken and 20 miles east of Augusta, Georgia. The ECMs are being proposed under the authority and terms of the DOE Biomass and Alternate Methane Fuel (BAMF) Energy Savings Performance Contract number DE-AM36-02-NT41457 as modified by DO RFP # DE-RP09-09SR22572, dated February 26, 2009. This Revised Final Proposal including technical, pricing, and management data shall remain valid through June 15, 2009.
The proposal consists of two Energy Conservation Measures (ECMs). ECM 1 provides for the turnkey installation of a new Biomass Cogeneration Facility with a design capacity of 240,000 pounds per hour (PPH) of steam and 20 megawatts (MW) of electric power. The new facility will replace the existing D Area coal-fired cogeneration plant. ECM 2 includes the turnkey installation of two 10,500 PPH steam heating facilities; one to be located in the K Area and one to be located in the L Area. These systems will replace the aging fuel oil-fired packaged boilers currently serving the K and L Areas of the site.
The existing D Area cogeneration plant produces both steam and electricity that is consumed on site. The steam is delivered through a large distribution pipeline that runs several miles from the plant to the end-user facilities. The plant also produces approximately 15 MW of electricity that is consumed by DOE facilities on site. The 1950s era plant is fueled by coal and in need of significant modifications to bring the plant into compliance with current environmental requirements as well as to be a reliable source of energy. The proposed Biomass Cogeneration Facility, sited near the existing steam interconnection at the intersection of Burma Road and C Road, will significantly reduce the distance from the plant to the end-user, resulting in improved operating efficiency. The new facility will have enough capacity to satisfy all of the site’s steam requirements and a significant portion of the electrical demand which will allow for the D Area plant to be shut down.
Currently, the existing heating plant in the K Area provides steam for both the K and L Areas. Steam is delivered from the K Area plant to L Area facilities through a 6”, 2.5 mile pipeline. ECM 2 provides for replacing the K Area plant with two 10,500 PPH boilers — one boiler located in K Area and one located in L Area — eliminating the need to use the 2.5 mile distribution line. The existing K Area plant and the steam line will be shut down.
Clean biomass and bio-derived fuels (BDF) will be the primary fuel source for all of the new boilers. The clean biomass consists of various types of forest residues, and the BDF consists primarily of scrapped vehicle tires. Fuel deliveries will be received by Ameresco staff at a fuel handling yard located within the Biomass Cogeneration Facility site at the Burma Road/C Road location. The fuel handling yard includes a fuel receiving, storage, and processing area that will serve the Biomass Cogeneration Facility and the K and L Area Heating Plants. Fuel deliveries to the K and L Area Heating Plants will be made by Ameresco staff on an as-needed basis from the central fuel yard.
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Revised Final Proposal — May 11, 2009
Ameresco Federal Solutions
Page 2
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
The use of renewable energy fuel sources provides many positive economic and environmental benefits to the SRS and the local community, while providing significant energy and cost savings to SRS. The savings result from fuel switching (coal to biomass), reductions in line losses by locating the new cogeneration facility and heating plants closer to end-user facilities, and improved efficiencies from new equipment sized to better match existing load requirements. Key environmental benefits of the project include:
    Over 2,000,000 MBtu/yr of thermal renewable energy production and a minimum generation of 77,000 mWh (264,444 MBtu) of green power.
 
    Annual Energy Savings of approximately 500,000 MBtu/yr
 
    No-cost Renewable Energy Credits (RECs)
 
    Decrease of water intake from the Savannah River by 1,412,000 kgal/yr, supporting water conservation efforts in the regional drought situation.
 
    Reduction of 400 tons/yr of Particulate Matter (PM) emissions
 
    Reduction of 3,500 tons/yr of Sulfur Dioxide (SO2) emissions
 
    Reduction of 100,000 tons/yr of Carbon Dioxide (CO2) emissions
 
    Support of the South Carolina Biomass Council Goals
Ameresco proposes to provide a turnkey package of design, permitting, and installation. Ameresco will also take responsibility for the operation and maintenance of the cogeneration facility and heating plants throughout the contract term. Table ES.1 below provides an overview of project economics (as shown on Schedule DO-4) for Performance Period Year 1.
Table ES.1: Project Economic Summary
                                         
    Project                          
    Implementation     Total Energy Savings     O&M Savings     Water Savings     Total Savings  
Project   Cost*     (Year 1, 2012)     (Year 1, 2012)     (Year 1, 2012)     (Year 1, 2012)  
DES Cost
    [**]       N/A       N/A       N/A       N/A  
ECM 1: Biomass Cogeneration Facility (D Area Replacement Plant)
    [**]     $ 21,053,328     $ 12,482,882     ($ 355,013 )   $ 33,181,197  
ECM 2: Biomass Heating Facilities for K & L Areas
    [**]     $ 558,208     $ 638,970     ($ 25,917 )   $ 1,171,260  
 
                             
Total
  $ 149,172,566     $ 21,611,535     $ 13,121,852     ($ 380,931 )   $ 34,352,457  
 
                             
 
*   The project Implementation Cost excludes the financial procurement costs.
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Revised Final Proposal — May 11, 2009
Ameresco Federal Solutions
Page 3
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
Following contract award, the detailed design will be completed and construction of the new facilities will take place. It is expected that thirty months from the date of contract award will be required to complete the final design and construction of the main Biomass Cogeneration Facility. However, Ameresco expects that the K and L Area Heating Plants can be constructed within 18 months of contract award. For this reason, Ameresco proposes an early acceptance of ECM 2.
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Revised Final Proposal — May 11, 2009
Ameresco Federal Solutions
Page 4
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
1.0 ECM 1 DESCRIPTION
1.1 ECM Summary Schedule DO-4
Pricing Schedule DO-4 is included in Section 6.0, Proposal Pricing Information.
1.2 ECM #1:Biomass Cogeneration Facility
1.2.1 Detailed Description of ECM
1.2.1.1 ECM Summary
This ECM comprises the design and construction of a Biomass Cogeneration Facility (cogeneration facility) to be located to the northwest of the main distribution steam interconnection at the intersection of Burma Road and C Road. The steam produced from the facility will be exported to the 200 Areas via the existing distribution system; the green power generated will be exported to the SRS electrical distribution system via a new interconnection at the existing F Area substation. The scope of work includes the installation of the cogeneration facility and all equipment, the site work, and the necessary utility interconnections required for plant operation. There are three additional items included in the scope (design drawings for these items to be provided following contract award):
  1)   The procurement and installation of a new skid-mounted river water pump and new pumping systems controls at the river water pump house, Building 681-3G.
 
  2)   Rework of the electrical feeder from the TNX area to the South Carolina Electric and Gas (SCE&G) utility line at the D Area.
 
  3)   Relocation of the existing L Area capacitor bank.
The cogeneration facility will be sized to provide a continuous supply of steam to site end-users (based on current and future load projections as presented in the SRS Site Projection Profile provided by the Government) while optimizing the quantity of green power generated. The system is designed using applicable national codes and standards for power plants and specific site standards (refer to Section 5.2). Previously, conceptual design drawings were submitted to the site for review prior to issuance of this final proposal; a draft version of the “issued for pricing” drawings is included in Volume III of this proposal. Finalized “issued for construction” drawings will be submitted to the government for concurrence throughout the first year of the construction period, as major equipment items are ordered and the design drawings are finalized.
This ECM will provide an estimated savings of over $33 million in the first year of operation through the offset of coal purchases, and reduced O&M from the elimination of the existing D Area Power Plant and electrical substation. The renewable energy-fueled cogeneration facility will also provide renewable energy credits (RECs) to SRS at no cost. For purposes of receiving credit for implementing this renewable energy initiative, the RECs attached to ECM 1 and ECM 2 will belong to the Government and will not be claimed nor sold by Ameresco.
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Revised Final Proposal — May 11, 2009
Ameresco Federal Solutions
Page 5
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
In addition to the design and construction, Ameresco will retain responsibility for fuel delivery, operations, maintenance of the cogeneration facility and site; repair and replacement of the cogeneration facility equipment; air and effluent outfall emissions compliance for the cogeneration facility; and monitoring, measurement, and verification (M&V) throughout the contract term. Refer to Section 5.2.7 for details on Ameresco’s Site Operations.
1.2.1.2 ECM Design Process
The proposed cogeneration facility will provide steam and power to the SRS site. Several configurations and energy models were analyzed during the Detailed Energy Survey (DES) phase to determine the final system sizing and system components. The optimal equipment selection and sizing was selected to balance the current and future thermal needs of the site while maximizing green power generation. Final selection resulted in a system composed of two (2) biomass bubbling fluidized bed boilers, each with an output capacity of 120,000 PPH (240,000 PPH plant total) steam and one (1) condensing steam turbine/generator with an output design capacity of 20 MW.
Superheated steam will be produced in the new combustor/boiler systems at 850 pounds per square inch gauge (psig) and 825 degrees Fahrenheit (°F), for delivery to the turbine/generator unit. Steam is extracted at a reduced pressure (385 psig nominal) from the turbine to meet the demand of the site, as well as for parasitic use. As the primary purpose of the cogeneration facility is to provide a continuous supply of steam, the amount of steam extracted from the turbine will vary to meet the site demand. As the extraction rate varies with the site steam demand, the gross power output from the turbine/generator will also vary. Based on future steam load forecasts as presented in the SRS Site Projection Profile provided by the Government (Table 1.1 below), output from the turbine/generator will range from 8 to 20 MW. The net power exported will vary from 5 to 17 MW as the new cogeneration facility’s in-house (parasitic) loads will range between 2-4 MW. A detailed basis of design is included in the following subsections.
Site
The location of the new cogeneration facility was selected during the initial feasibility study of the project. The facility will be located approximately 0.5 miles northwest of the intersection of Burma and C Roads on a 30 acre site. The development on the site will include the following major areas: 1) the fuel handling yard, 2) the boiler/combustion system, 3) the power plant, 4) the cooling tower and outfall piping, and 5) the administration building and site parking. The placement of the cogeneration facility on this site was optimized to minimize fuel handling conveyor runs, and to ensure critical systems are located near the operator control room. The layout was also arranged to make use of the natural topography of the land where possible to minimize disturbance to the environment. The location and layout of the facilities were also optimized to the extent possible with regard to interfaces with site utilities (described in Section 1.2.3), a new storm water collection system and outfall, and the new site fire protection system.
The storm water system is designed to collect storm water from the impervious portions of the site. These include building run-off, roadway run-off, and equipment run-off. The system will include a series of
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Revised Final Proposal — May 11, 2009
Ameresco Federal Solutions
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  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
catch basins to collect the storm water. The site will be graded to direct the storm water to each of the catch basins. The catch basins will be interconnected by 6”, 8”, and 12” piping. A manhole will be included to provide maintenance access at each change of direction. Ultimately the storm water will be directed by gravity to a storm water detention pond which is sized to hold the expected rainfall peaks in the area. The pond will be complete with a liner and slotted spillway to enable a controlled release of water to the outfall. The system will be installed with a monitoring system to measure flow, pH, and conductivity. Major components include catch basins, piping, manholes for maintenance access, lined 165,000 gallon detention pond, monitoring system, and the 24” outfall.
Extensive soil testing was completed on the site to determine the conditions for the soil and recommended design for structural support of equipment, facilities, and new pavements. The soil composition is primarily sand with light clay and therefore requires treatment of the site with an engineered fill prior to foundation work. A copy of the complete soil report is included in Appendix A of this proposal.
Logistics of site traffic are designed to allow biomass delivery trucks and other facility traffic to enter the site from Burma Road. The existing gravel portion of Burma Road will be paved up to the entrance of the site. Delivery trucks will enter the facility from the Burma Road entrance using a new deceleration lane, and exit the facility via a new one-way exit along the former route of Old Burma Road (currently an unmaintained dirt pathway between Burma and C Roads). All other facility traffic will enter into the new parking lot or the on-site access road, and may then exit back to Burma Road or use the new one-way exit to C Road.
Delivery trucks will traverse the entrance road to the fuel yard, and after fuel delivery will exit via Old Burma Road, which will be re-cleared and paved up to C Road at the existing 3-way intersection of C Road and the entry to the F Area. Old Burma Road will be designated and marked as a one-way thoroughfare in accordance with South Carolina Department of Transportation (SCDOT) standards, and the traffic signal at the existing 3-way intersection on C Road will be converted to a new 4-way intersection. This arrangement provides for a safe traffic flow and allows delivery vehicles to make left-hand turns across traffic only at a signal-controlled intersection. Also included in the site scope of work is the removal of the curbed median at the existing 3-way intersection, and the installation of new loop-control vehicle sensor wiring beneath the pavement at the new 4-way intersection. Figure 1.1 is an illustration of the overall site layout; the specific areas within the site are further described in the following pages.
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Revised Final Proposal — May 11, 2009
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Page 7
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
Figure 1.1: Proposed Cogeneration Facility Site Layout
[**]
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Revised Final Proposal — May 11, 2009
Ameresco Federal Solutions
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  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
Fuel Handling Yard
The fuel handling yard will serve as the delivery point for all fuel supplies for the cogeneration facility, as well as the two heating plants serving the K and L Areas. Approximately 40-60 trucks will enter the site daily (at staggered delivery times) at the Burma Road facility entrance. The entrance to the yard will include truck scales for weigh-in of all fuel sources for tracking deliveries. Beyond the entrance will be the unloading equipment, fuel storage area, and the fuel handling and processing equipment.
For fuel handling operations at the cogeneration facility, front-end loaders and augers/conveyors will be used at various points in the yard to move fuel between stations, through the yard area, and into the combustion systems. The biomass wood fuel will be unloaded using three (3) automated hydraulic truck-dumping stations. The truck-dumpers discharge into a reclaim pit, where the fuel will be lifted to the first transfer conveyor. The fuel is then screened and processed through a hogger and disc screen onto a second transfer conveyor. The fuel can then be transferred into the outside storage area or directly into the metering bins of the combustors. Stored fuel will be stacked in the outside storage after delivery from the transfer conveyor by use of a circular stacker/reclaimer. In addition to stacking the fuel, the stacker/reclaimer functions as a reclaimer to transfer the fuel from the storage stack to the fuel metering bins prior to entering the combustors.
The total available outside storage for clean biomass is approximately 15 acres, allowing for 30 days of continuous operations without replenishing the on-site fuel storage. The scrap vehicle tires brought to the site will be unloaded and processed in a separate area before being augured into a separate reclaimer. The separate unloading area and reclaimer allow for better process control through mixing with the biomass fuel, and also help to quantify BDF usage in meeting the requirements of the South Carolina Department of Health and Environmental Control (SCDHEC) air permit with regards to limits on BDF combustion.
Fuel supplies for the K and L Area boilers will be loaded at the cogeneration facility fuel handling yard and trucked by Ameresco staff to the K and L Area heating plants as needed, since the heating plants operate only during a limited heating season. One truckload per day is the estimated maximum usage at both the K and L Area heating plants during the coldest periods.
Proposed Fuel Yard Components include:
    Two (2) Truck scales
 
    Three (3) Hydraulic truck dumps and reclaimers
 
    Front end loaders
 
    Dump trucks for site use
 
    Live bottom trailers for K and L Area
 
    One (1) Fuel hogger
 
    One (1) Screener for oversized product
 
    Two (2) Magnets for metals screening
 
    One (1) Stacker & Reclaimer
 
    One (1) Truck Reclaim for Tires
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Revised Final Proposal — May 11, 2009
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  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
    One (1) Shredder for tires
 
    Multiple conveyors for fuel handling
 
    One (1) Whole Tree Chipper
The final design of the system was developed with primary consideration given to the following: handling and processing of multiple fuel types; safe and plentiful fuel storage area on site; minimized maintenance requirements; reduced downtimes; and provision for flexible operation of the overall systems.
Combustion/Boiler System
The combustion/boiler system includes the components from the fuel feeders to the exhaust stack, including the boiler auxiliaries. A bubbling fluidized bed (BFB) combustion technology will be used for this project. BFB technology uses high pressure air to fluidize a 2-3 foot bed of sand (inert material) in suspension. The fuel source is fed into the system through air spouts and mixed into the suspended bed. The system operates using 30-40% theoretical combustion air to reduce bed temperature and minimize nitrogen oxide (NOx) emissions.
BFB technology is preferable for biomass fuels due to its ability to better tolerate various fuel types, as well as larger variations in both fuel mixture density and moisture content. BFBs have the advantage of reduced air emissions due to a more stringently controlled temperature in the combustion process (1400-1600oF). Compared to stoker technology, the bubbling bed offers lower uncontrolled air emission rates, resulting in a lower investment for downstream air pollution control system components. BFBs require less maintenance than the stoker boiler, resulting in less downtime and lower ongoing costs.
After soliciting competitive bids for the BFB equipment, the Energy Products of Idaho (EPI) equipment was selected for the cogeneration facility [**] The EPI system is shown in Figure 1.2. The EPI combustor/boiler offers the following benefits in this size range of BFB equipment:
[**]
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Revised Final Proposal — May 11, 2009
Ameresco Federal Solutions
Page 10
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
Figure 1.2: EPI Fluidized Bed Energy System
(FIGURE)
Two identical BFBs will be installed in the new cogeneration facility. Both boilers will be sized for a total design input of 372 MBtu/hr (186 MBtu/hr per boiler) and an output of 240 kpph (120 kpph per boiler). The bubbling bed boiler will produce steam at 850 psig, 825°F. Steam generated will go through a condensing turbine when generating electricity, or through a pressure reducing valve (PRV) station which will reduce the pressure to 385 psig. Steam required by the site and for the cogeneration facility deaerator (DA) tank will be extracted from the turbine at 385 psig. The 385 psig steam will be distributed to the existing system via the interconnection to the existing steam header located just across the street from the new cogeneration facility. Additionally, full capacity fuel oil burners will also be installed in the combustor to serve as a back up fuel source in case the biomass feeders are down. Refer to Section 1.2.1.3 for details of SRS steam demand.
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Revised Final Proposal — May 11, 2009
Ameresco Federal Solutions
Page 11
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
Figure 1.3: EPI Fluidized Bed Cell
(FIGURE)
Fuel will enter into the combustion metering bins from the fuel transfer conveyors. Metered fuel is discharged through isolation slide gates and into the fuel spreaders. The spreaders distribute the fuel across the fluidized bed. The fluidized bed cell as shown in Figure 1.3 includes the equipment to accept, distribute, and mix air, fuel, and limestone in a high temperature thermal oxidization environment. The system is designed in accordance with National Fire Protection Association (NFPA) Section 850. Underbed air and overfire air distribution systems are provided to allow proper air flow for uniform combustion, to provide cooling of tramp material, and to optimize overall bed temperature.
The EPI system is specifically designed to include a bed recycle system to accommodate wood and tire derived fuel containing wires. The tire bed system is a fluidizing bed bottom, wire separation, and screening system designed to handle high concentrations of wire left over from the thermal oxidization of shredded tires and tramp material. The metal is recovered from the rest of the tramp material and bed media then discharged to the hopper for recycling.
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Revised Final Proposal — May 11, 2009
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  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
Each of the biomass boilers will include a gas handling system, which includes an induced draft (ID) fan to pull the boiler flue gas through the economizer. The ID fan exhausts into a fabric filter baghouse and then to an integral exhaust stack.
Pollution Abatement Control
The fluidized bed system provides an environment to optimize destruction of hazardous air pollutants and volatile organic compounds. Additional pollution abatement control is included in this system to comply with air emission requirements.
Particulate Matter Control: Particulate in the gas stream is captured in a pulse-jet baghouse system. The baghouse captures particulate matter from the flue gas and has removal efficiencies of 99.9+%. The flue gas will then exit through a stack adjacent to the ID fan and baghouse located just outside of the new cogeneration facility.
Nitrogen Oxide Control: The flue gas from the boiler will be treated in the combustion system using selective non-catalytic reduction (SNCR) technology to reduce nitrogen oxides. Using the SNCR will reduce NOx rates to 0.12 lb/MBtu. Urea is injected into the furnace typically above the over-fire air ports, reacting with the oxides to form nitrogen and hydrogen.
Sulfur Dioxide Control: Since tire derived fuel will be used as a fuel source, each biomass boiler will also have a bed additive system. The bed additive system will introduce limestone into the fluidized bed cells in order to reduce sulfur dioxide and other acid emissions. Sulfur dioxide will be controlled to less than 0.2 lb/MBtu in order to comply with air permit conditions.
Each boiler will include an exhaust stack. Each stack will include an aviation lighting system, and a continuous emissions monitoring system to measure the stack emissions and provide data reporting. The system will monitor carbon monoxide (CO), oxygen (O2), NOx, SO2, reagent slip, and opacity. The data is recorded in the facility supervisory control and data acquisition (SCADA) system.
Ash Handling System
The fuel will primarily consist of clean biomass sources; therefore, the ash content is expected to be low, less than 1.0-3.0% of the fuel burned. The ash stream consists of a bottom ash stream and a flyash stream. Bottom ash will be automatically removed from the biomass boiler with mechanical conveyors and augered into a hopper outside of the building. Fly ash will be collected at multiple points along the flue gas exhaust train, including boiler hoppers, mechanical dust collector hoppers, and baghouse. The flyash system will be a mechanical pneumatic system consisting of rotary air-lock valves, screw conveyors, drag conveyors, and storage container. The ash collection hoppers will include water nozzles to keep ash wet and minimize dusting into the plant area.
The ash generated from combustion will be delivered to the landfill or taken off site to potential end-users. Ameresco will be responsible for ash removal, and the cost is included in the performance period expenses.
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Revised Final Proposal — May 11, 2009
  Biomass Cogeneration Facility and Heating Plants
Ameresco Federal Solutions
  Savannah River Site
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  Contract DE-AM36-02NT41457
Major Combustion/Boiler System Components:
    Two (2) 120,000 PPH biomass fluidized bed boilers, including fan systems
 
    Two (2) Baghouses including Penthouse
 
    Two (2) SNCR systems (Urea Injection)
 
    Boiler auxiliaries (boiler feed water pumps, DA tank, chemical treatment, and instrumentation)
 
    Boiler control SCADA system
 
    Two (2) Ash bins
 
    Two (2) Ash storage silos
 
    Two (2) Ash conveying systems (for each biomass boiler)
 
    Fuel Oil Storage
 
    Reagent Storage
 
    Limestone Storage
Power Plant
The power plant will house the boiler feedwater system, the water treatment system, the chemical treatment system, and the steam condensing turbine. The cooling tower and emergency generators will be located outside to the west of the power plant. The building will be a pre-engineered two-tiered metal building and 16,000 sq ft in size. Within the power plant there will be a control room, break room, storage, chemical and sampling area, and the motor control center. The equipment components are described in the sections below.
Boiler Feedwater System
A feedwater system will pressurize and deliver deaerated boiler feedwater from the DA tanks and the desuperheater to the boilers. The boiler feed pumps will pull the heated water from the DA tanks. Since there is no condensate return infrastructure in place, the DA tanks will receive makeup water from the water treatment system and from the condensate tank. The feedwater will be delivered to the boiler at 850 psig and 370oF. There are 2 DA tanks for the boilers; one will be used as a backup.
Components of the primary feedwater system include the following:
    Three (3) Boiler feed pumps and motors
 
    Two (2) DA tanks with instrumentation and trim
 
    Piping, valves, and controls
Water Treatment System
River water will be used as the source of water for the process water, regeneration water, and for fire system water. The river water will be filtered through carbon filters and softeners. Process water will be treated using Reverse Osmosis (RO) technology and then deionized through a mixed bed system. This system was designed based on samples collected from the Savannah River during the DES and from water analysis reports for the D-Area plant. The peak make-up requirement to the cogeneration facility is
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Revised Final Proposal — May 11, 2009
  Biomass Cogeneration Facility and Heating Plants
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  Savannah River Site
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  Contract DE-AM36-02NT41457
2,200 gallons per minute (gpm); this would occur at the cogeneration facility’s full capacity and if the water treatment regeneration cycles were occurring at the same time. Normal flow rate to the water treatment skid will be 600 gpm. Primary components of the water treatment system include:
    Four (4) Carbon Filters
 
    Two (2) Water Softeners
 
    Neutralization Tank
 
    RO System
 
    Two (2) Deionized Mixed Beds
 
    Neutralization Skid
 
    Deionized Water Storage Tank
Chemical Feed System
Chemical feed systems are designed for the boilers to provide protection from corrosion, scale formation, circulating water biofouling, and to provide pH control. Specific internal boiler water treatment programs will be designed during the implementation phase. Chemical equipment includes the following:
    Boilers
    Internal Boiler Water Treatment: Chemical feed skid(s) with injection pumps. The skid will be pre-piped, pre-wired, including necessary components and accessories for a complete functional system. Feed skid to be used with chemical totes.
    Circulating Water System
    Common acid chemical feed skid with injection pumps, pre-piped, pre-wired and including necessary components and accessories for a complete functional system. Feed skid to be used with chemical totes.
 
    Corrosion control chemical feed skid with injection pumps (dispersant and corrosion inhibitor), pre-piped, pre-wired and including necessary components and accessories for a complete functional system. Feed skid to be used with chemical totes.
 
    Biocide chemical feed skid with injection pumps, pre-piped, pre-wired and including necessary components and accessories for a complete functional system. Feed skid to be used with chemical totes.
Turbine System
The turbine will be installed in the power plant building. The turbine generator will have a rated output of 20 MW and generate at 13.8 kilovolts (kV). The turbine will be provided by TGM; information on the TGM system is included in Appendix C. The TGM turbine is manufactured in Brazil; however, Ameresco selected it for the SRS project because of its higher efficiency, lower cost, and shorter delivery time. Ameresco requested and the contracting officer has added the TGM turbine to the exemption list for Buy American.
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Revised Final Proposal — May 11, 2009
  Biomass Cogeneration Facility and Heating Plants
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  Savannah River Site
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  Contract DE-AM36-02NT41457
Electrical Generation Equipment:
    One (1) TGM Steam Condensing Turbine (20 MW), Model TMCE 25000A
 
    Electrical switchgears
 
    Two (2) fuel oil-fired emergency generators (1.5 MW each)
 
    Surface Condenser
 
    High Voltage, Medium Voltage Transformers
Cooling System
    One (1) two-cell Cooling Tower with variable frequency drive (VFD) Fans
 
    Cooling Tower pumps
 
    Outfall Sampling Station
Administration Area
A 2,200 sq ft building will be constructed to provide office space for cogeneration facility management staff and to also provide an area to allow visitors to gather for facility tours.
Fire Protection Plan
The Site Fire Protection Plan includes different methods depending on the type of area and the recommended practice for fire protection. The site will include a stationary pump as well as the following elements described below.
Biofuel receiving and storage areas
    NFPA 850, Recommended Practice for Fire Protection for Electric Generating Plants
    Fire water loop with hydrants and post indicating valves installed in accordance with NFPA 24 Standard for the Installation of Private Fire Service Mains and Their Appurtenances
    International Fire Code
    Open access for emergency vehicles
Boiler/Turbine/Equipment yard
    NFPA 850, Recommended Practice for Fire Protection for Electric Generating Plants
    Fire water loop with hydrants and post indicating valves installed in accordance with NFPA 24 Standard for the Installation of Private Fire Service Mains and Their Appurtenances
    International Fire Code
    Open access for emergency vehicles
Turbine Hall
    NFPA 850, Recommended Practice for Fire Protection for Electric Generating Plants
    Oil containment/drainage system
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Revised Final Proposal — May 11, 2009
  Biomass Cogeneration Facility and Heating Plants
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  Savannah River Site
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    A hose connection
 
    Fixed protection system, detection, and alarm system to cover, as minimum, the Turbine/Generator bearings and oil containment areas.
 
    Turbine shut down control per NFPA 850
Administration Area
    International Building Code and International Fire Code
    Detection, alarm, and sprinkler system installed in accordance with NFPA 13 Standard for the Installation of Sprinkler Systems and NFPA 72 National Fire Alarm Code
Lab, Breakroom, and Bathrooms
    International Building Code and International Fire Code
    Detection, alarm, and sprinkler system installed in accordance with NFPA 13 Standard for the Installation of Sprinkler Systems and NFPA 72 National Fire Alarm Code
Control Room and Electrical Rooms
    NFPA 850, Recommended Practice for Fire Protection for Electric Generating Plants
    Detection and alarm system installed in accordance with NFPA 72 National Fire Alarm Code
    Detection, alarm, and fixed protection under raised floors.
    Fixed protection — Dry Chemical, NFPA 17
Biofuel Conveyors and Transfer Towers
    NFPA 850, Recommended Practice for Fire Protection for Electric Generating Plants
    Protection, detection, and alarm systems are not required but are a good practice
    Dry type deluge system install in accordance with NFPA 13 Standard for the Installation of Sprinkler Systems
    Detection and alarm system installed in accordance with NFPA 72 National Fire Alarm Code
    Conveyor controls to be interlocked per NFPA 850
Cooling Tower
    NFPA 850, Recommended Practice for Fire Protection for Electric Generating Plants
    Hydrant installed in accordance with NFPA 24 Standard for the Installation of Private Fire Service Mains and Their Appurtenances
    Cooling Tower design and constructed in accordance with NFPA 214, Standard on Water-Cooling Towers
Fuel Oil Storage Tank
    NFPA 30: Flammable and Combustible Liquids Code
    Separation in accordance with NFPA 30
 
    100% containment in accordance with NFPA 30
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Revised Final Proposal — May 11, 2009
  Biomass Cogeneration Facility and Heating Plants
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    Design and construction in accordance with NFPA 30
    Hydrant installed in accordance with NFPA 24 Standard for the Installation of Private Fire Service Mains and Their Appurtenances
1.2.1.3 ECM 1 Operation
ECM 1 will be operated continuously to produce steam and power for SRS, with the primary mission of meeting the Annual Steam Guarantee (ASG). The ASG is the total amount of steam output from the biomass boilers as defined in Section 1.2.7.4. During normal operation, steam produced from the boilers will flow through the condensing steam turbine. Steam required for the cogeneration facility auxiliaries and the export steam required by the site will be extracted from the turbine. The balance of steam will continue through the turbine to generate additional green power. As required by SRS, the cogeneration facility will be operated to provide steam at 350 psia through the existing Government-owned distribution system to the users in the F and H Areas.
Scheduled outages will not exceed one per year and only one boiler will be taken down at a time for planned maintenance. In the unlikely event that both boilers are inoperable, Ameresco has made provisions and connections for bringing temporary boilers to the site to ensure the supply of steam.
Projected steam demands of the site are based on information provided in the SRS Site Projection Profile provided by Government personnel. The projections upon which the cogeneration facility performance model is based was provided by government personnel in the SRS Site Projection Profile and shows that annual steam loads will differ for the next 20 years as shown in Table 1.1. Due to these changes in operation and the anticipated variation in weather from year to year, it is proposed that the new cogeneration facility will be operated to produce a fixed quantity of steam each year, the ASG. As the demand for exported steam decreases, the amount of green power generation will increase, up to the ASG.
Table 1.1: SRS Site Projection Profile — Steam Demand
             
    Winter peak   Winter average   Summer average
Year   [kpph]   [kpph]   [kpph]
2009
  [**]   [**]   [**]
2010
  [**]   [**]   [**]
2011
  [**]   [**]   [**]
2012
  [**]   [**]   [**]
2013
  [**]   [**]   [**]
2014
  [**]   [**]   [**]
2015
  [**]   [**]   [**]
2016
  [**]   [**]   [**]
2017
  [**]   [**]   [**]
2018
  [**]   [**]   [**]
2019
  [**]   [**]   [**]
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Revised Final Proposal — May 11, 2009
  Biomass Cogeneration Facility and Heating Plants
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  Savannah River Site
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  Contract DE-AM36-02NT41457
Table 1.1: SRS Site Projection Profile — Steam Demand
             
    Winter peak   Winter average   Summer average
Year   [kpph]   [kpph]   [kpph]
2020
  [**]   [**]   [**]
2021
  [**]   [**]   [**]
2022
  [**]   [**]   [**]
2023
  [**]   [**]   [**]
2024
  [**]   [**]   [**]
2025
  [**]   [**]   [**]
2026
  [**]   [**]   [**]
2027
  [**]   [**]   [**]
2028
  [**]   [**]   [**]
2029
  [**]   [**]   [**]
2030
  [**]   [**]   [**]
2031
  [**]   [**]   [**]
Ameresco staff will be responsible for operating and maintaining the cogeneration facility throughout the contract term as detailed in Section 5.2.7.1, and the cogeneration facility will be continuously manned by Ameresco staff as described in Section 5.2.7. However, this Final Proposal excludes any operation and maintenance obligations on the part of Ameresco except as detailed in Section 5.2.7.1
1.2.2 Location Affected
During the Initial Proposal kickoff meeting, the Government presented three sites as potential locations for the new cogeneration facility. The selected site is shown in Figure 1.4 below and was agreed upon by SRS, the M&O Contractor, and Ameresco based on an evaluation of many factors, including distance to existing utility connections, available acreage, accessibility, security concerns, and environmental impacts. A site-use permit was obtained and is currently being amended to include the electrical feeder to the F Area, the river water piping tie-in from the C Area, the process water outfall to Upper Three Runs Creek, and improvements to the Old Burma Road/C Road intersection.
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Revised Final Proposal — May 11, 2009
  Biomass Cogeneration Facility and Heating Plants
Ameresco Federal Solutions
  Savannah River Site
Page 19
  Contract DE-AM36-02NT41457
Figure 1.4: Cogeneration Facility Site Location
(FIGURE LOGO)
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1.2.3 ECM 1 Interface with Government Equipment
Title to all Ameresco installed equipment will transfer to the Government at the time of Government acceptance of an ECM. Title to the biomass fuel will transfer to and vest in the Government simultaneously with Ameresco’s receipt of the biomass at the fuel handling yard. For the sake of clarity, ECM 1 will interface with existing Government equipment at the utility interconnections as described in this section. The installation of utility interconnections required for the new cogeneration facility are included in the project implementation cost and the installation will be Ameresco’s responsibility; however, the SRS M&O Contractor will retain O&M responsibility including repair and replacement for the utility interconnections and utility distribution systems. Table 1.2 provides a summary of the utility interface and the scope of O&M responsibility for the utility systems. Ameresco and the SRS M&O Contractor will enter into an agreement that will provide the cogeneration facility with utility services to include river water, sanitary sewer service, backup electrical power, and domestic water service. A Power Services Utilization Permit (PSUP) form will be completed by Ameresco prior to construction of utility interconnections. Utility meters will be installed to measure usage. It is proposed the Government will incur the cost for the cogeneration facility’s non fuel utilities. These Post-ECM Implementation Costs have been factored into the annual savings. The annual consumption and costs of the utilities are shown in Table 1.6, and the unit cost used for each utility is shown in Table 4.2. Refer to Section 5.2.7.1 for operation and maintenance responsibility.
Infrastructure services (site facility operations and maintenance) are primarily the responsibility of the Site M&O Contractor. M&O Contractor personnel operate and maintain the SRS utility systems and manage site environmental programs. On site DOE personnel are charged with oversight of M&O Contractor operations although M&O Contractor personnel often render project or program decisions for the Government. Therefore, for purposes of this proposal, the use of the term “Government” is applicable to DOE and M&O Contractor. For example, the term “Government caused delays” includes any delays caused by government and/or M&O Contractor personnel. Although the M&O Contractor makes operational decisions for the systems they operate and programs they manage, only DOE personnel, i.e. Contracting Officer and Contracting Officer’s Representative (COR) will provide project and program decisions affecting work performed by Ameresco or Ameresco subcontractor personnel resulting from this proposal.
Table 1.2: Utility Interconnection Summary
         
Utility   Interconnection   O&M Responsibility
Steam
  New 12”, 240 kpph line from plant to existing 24” across Burma Road   Ameresco: To the point of the new valve located in a new 12” line near the point of interconnection (POIC) with the existing steam line. SRS: Upstream of the new valve.
 
       
Domestic Water
  30 gpm, new 2” line from plant to header located outside existing water treatment plant   Ameresco: To the new utility valve outside of power plant. SRS: Downstream of the tie-in to the new valve.
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  Biomass Cogeneration Facility and Heating Plants
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Table 1.2: Utility Interconnection Summary
         
Utility   Interconnection   O&M Responsibility
River Water
  New 12",2200 gpm line from valve house near C-Area to new biomass plant   Ameresco: Downstream of the interconnection valve. SRS: From existing pump station up to interconnection valve at cogeneration facility.
 
       
Outfall
  1200 gpm + storm water runoff, new 24" line to Upper Three Runs Creek   Ameresco: To conduct all testing of the effluent; responsible for maintaining compliance of this discharge.
 
       
Sanitary Sewer
  New 4" line & new lift station, 20 gpm to upside of the existing Lift Station   Ameresco: To the new valve located in the new line outside of power plant. SRS: Downstream of the new utility valve.
 
       
Electrical
  New 13.8 kV line to/from F Area substation   SRS: From outside of new cogeneration facility
 
       
Fire Water System
  Tapped off the new river water header, prior to cooling tower   Ameresco: Responsible for fire water system
 
       
Telephone Line/Public Address (PA) System
  Verizon New Line   Verizon/Ameresco
 
       
Data Line
  Verizon New Line   Verizon/Ameresco
Steam Distribution System
Steam produced from the boiler at 850 psig and 825°F will flow through the turbine, or through a pressure reducing valve (PRV) and desuperheater if the turbine is not operating. From the turbine or PRV, the steam will be exported to the SRS distribution system, with a small percentage going to the cogeneration facility DA tanks. Flash steam from the continuous blowdown flash tank is supplied to a low pressure header to supplement the steam requirements of the DA.
The steam exported to the distribution system will be delivered at 350 psig 450oF. A new 12” carbon steel pipe will be routed above-ground from the cogeneration facility (exiting from the turbine or PRV station) to the existing steam line located across Burma Road. A steam meter will be installed in the line to measure steam exported from the cogeneration facility, as well as a steam meter on the flow exiting the boilers to measure the total amount of steam produced. The new cogeneration facility export connection is approximately 3 miles closer to the F and H Areas than the existing D Area plant, providing increased distribution system efficiency from decreased line losses. The approximate point of interconnection is shown in the photograph below:
Figure 1.5: Biomass Cogeneration Facility Steam Interconnection
[**]
Domestic Water
A 2” domestic water line will be installed to serve plant potable water needs such as bathrooms, utility sinks, showers, and eye wash stations. The new water line will connect to the existing domestic water
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Revised Final Proposal – May 11, 2009
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  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
header located outside of the nearby industrial water treatment plant, located approximately 0.3 miles east of the cogeneration facility. Domestic water usage is expected to be minimal (5-10 gpm) and used for sink, lavatory, and maintenance requirements. Annual consumption is expected to be approximately 2600 kilogallons (kgal). The domestic water interconnection will be designed per M&O standards and permitted as required by the SCDHEC.
Process Water
River water will be used as the water source for all process and fire water. The process water usage includes boiler feedwater, cooling tower makeup water, water treatment regeneration cycles, and cogeneration facility service water. The river water will be supplied from Building 681-3G, the water pump house, through an existing distribution system and pump station. A new 12” ductile iron line will be routed underground from the existing C Area valve house (refer to Figure 1.6) to the cogeneration facility site following the route of the abandoned steam line from the C Area, and then diverting off of the route through existing vegetated areas to the site. Routing through the vegetated area will reduce the new distribution pipe route by approximately 1/2 mile. The specific routing is shown on the site drawing which is included in the drawing package (Volume III). The peak make-up requirement to the site is 2200 gpm; this would occur if the system was operating at full capacity and if all the regeneration cycles of the water treatment system were occurring at the same time. Normal operations will use 600 gpm. Annual river water consumption will average around 450,000 kgal.
To ensure there is adequate redundancy and back-up for the site river water source, in addition to the installation of the new distribution line a new pump skid (identical to the P-10 skid) will be installed to replace the pump, P-4, located inside the water pump house (Bldg 681-3G). The new pump will be used as a backup for P-10 and be designed with a 19.8” impeller size (600 hp motor.) Other components to be installed with the new pump include:
    Rework of the existing suction pipe
 
    Installation of isolation valve in suction pipe
 
    Installation of flow control valve & flow meter
 
    Installation of instrumentation and valves setup (duplicate system to the P-10 skid)
 
    Control modification to allow the pumps to automatically operate based on system requirements
Figure 1.6: Biomass Cogeneration Facility River Water Interconnection
[**]
Site Outfall
A new 24” high density polyethylene pipe will be routed from the cooling tower basin to Upper Three Runs Creek. The pipe will be installed underground and follow the natural topography of the land. A new outfall structure will be constructed next to the cooling tower to allow for flow monitoring and effluent testing. Process waste water and the storm water runoff will be discharged to the outfall. The storm water system includes collection piping to catch basins which will divert the storm water to the site
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Revised Final Proposal – May 11, 2009
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Savannah River Site
Contract DE-AM36-02NT41457
retention pond. The retention pond will discharge to the outfall. The outfall will be permitted under the site National Pollutant Discharge Elimination System (NPDES) permit.
Sanitary Sewer
The bathrooms and fixtures located in the cogeneration facility and in the administration building will connect to the existing sanitary sewer system via a 4” polyvinyl chloride (PVC) pipe and be pumped using a new lift station. The line will connect upstream to the 607-91G lift station located approximately 0.3 mile east of the cogeneration facility. The sanitary sewer interconnection will be designed per M&O standards and permitted as required by the SCDHEC. Annual discharge is expected to be 2,600 kgal.
Electrical System
Power will be delivered to the existing F Area substation at 13.8 kV from the cogeneration facility. The power feeder from the cogeneration facility will be approximately 7,600 feet and will be routed in a combination of overhead pole mounted transmission line and underground duct bank where required in the F Area. The feeder will connect to an existing spare breaker cell in the metal-clad switchgear lineup at 251-F. The breaker cell shall be unit 101A, 101B, 206A, or 206B as deemed suitable by Ameresco and the Government. The interconnection scope of work includes a compatible circuit breaker, multifunction utility-grade numerical relay and instrumentation, and a 15kV class line potential transformer (PT) (either outdoor on feeder or indoor in a top-hat structure added to the existing switchgear). Existing bus PT secondary sources and existing station direct current (DC) battery sources are to be tapped as-is without improvement. Ameresco will utilize as-is or improve existing lockout relays and circuit breaker auxiliary contacts where no spare contacts or similar status points are available. Where such improvements are not possible due to the limitations of existing equipment, Ameresco will propose a solution to the Government (e.g. interposing relays, SCADA outputs, etc.). Ameresco assumes that the subject devices either as existing or improved, sufficiently indicate the operation of distribution and transmission level switching to determine when the generation system is unintentionally islanded from the utility source. Where transfer trip capability is required or determined to be best practice for protection of the proposed generation system, transfer trip facilities are to be derived from existing utility protective relaying equipment installed at 251-F. The scope excludes special or upgraded SCADA communications between 251-F and electrical utility operator. This scope is limited to the feeder circuit breaker at 251-F used to service the proposed generator plant and the primary protection described. The scope does not include other feeders at 251-F or any other upstream devices that are not impacted by the project (e.g. transformer secondary or primary protective devices and features, transmission-level protective devices and features). To insure appropriate coordination with the existing F area electrical distribution equipment, SRS will need to supply required load-flow, short-circuit, and intertie relay settings. Ameresco will prepare a transient study if deemed necessary for design.
Power at the new cogeneration facility is generated at 13.8 kV and is connected to a main 13.8 kV switchgear unit identified as “HVS”. “HVS” is equipped with six (6) breakers. Breaker “52G” is utilized for the main generator breaker and is complete with required protective and synchronizing relaying. Breaker “52-4160” feeds a 7500/9375 kilovolt amperes (KVA) transformer “ATX-2” that steps down to 4160 volts alternating current (VAC) for large motor loads. Breaker “52-480” feeds a 2500/333 KVA
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Revised Final Proposal – May 11, 2009
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  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
transformer “ATX-1” that steps down to 480 VAC for all the remaining facility power distribution loads. Breakers “52-SG-1” and “52-SG-2” are utilized as feeders from two 1500 kW standby generators. Breaker “52U” is the tie breaker that feeds power to and from the F Area. This breaker will also be complete with all required protective and synchronizing relaying. The 13.8kV switchgear “HVS” and transformers “ATX1” and “ATX2” are located in the electrical room in the new cogeneration facility.
D Area Electrical Feeder
A new feeder will be installed in the D Area to provide continued electrical service to both the D Area and the TNX Area when the 484-D Power Plant is either dismantled or demolished and to reduce the annual SCE&G costs associated with O&M of Station 41. The new feeder will be a #2 aluminum conductor, steel reinforced (ACSR) overhead 13.8 KV 3 phase line that will run from the existing overhead line in the vicinity of Barricade 3 at the entrance to D Area, down the east side of the entry road to a point roughly 80’ short of the 115 KV line crossing, turn east and run across country paralleling the 115 KV line just outside of its right of way (ROW) until it is terminated with a tie-in to an existing 3 phase line crossing at the back of D Area. By connecting to this line, the new feeder will be able to power the TNX complex without any further modifications to the existing overhead system. Fused sectionalizing switches will be installed at each end of the new line. The recloser currently installed back across the Highway on the line being tapped will be recalibrated to reflect the addition of the line extension to D Area.
Before turning east at the 115 KV line, the new line will cross a CSX railroad main line. A complete design/permitting package will be developed and submitted to the railroad for their review and approval. Initial filing fees for this permitting process are included, but any ongoing fees due CSX are excluded from this proposal and will be the responsibility of the Government.
The addition of this feeder will result in monthly O&M savings currently paid to SCE&G to maintain the equipment in Station 41. The annual savings is $75,000 (10% reduction of the current O&M charge to SCE&G).
L Area Capacitor Work
The single 6 megavolt ampere reactive (MVAR) capacitor bank currently sitting on the L Area site will be installed on a new concrete pad in the grassy area across the access drive on the northwest side of the switchgear building, and connected to existing breaker 2-6 within substation 151-1L. New cable and cable tray will be installed in the basement beneath the switchgear to the northwest wall where spare sleeves will be used to exit the building. A new underground duct bank will be run from the building wall under the drive to the new pad for the capacitor bank connecting the capacitor. Spare 4” conduits will also be provided stubbed out from beneath the new pad for future connections to other systems. The capacitor bank will be interfaced with the existing SRS SCADA system. The actual location in the grassy area will be coordinated with the proposed installation of a future grounding transformer. The drive and associated curbs will be replaced after the duct is installed.
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Revised Final Proposal – May 11, 2009
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  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
We have been advised that several capacitor cells are defective. These will be replaced with available spare cells to the extent possible. These are the only repair efforts included in the installation of this capacitor bank which has been sitting out in the weather unprotected for some time. Any other repairs necessary to get the bank into fully operational condition are not the responsibility of Ameresco.
Installation of this existing capacitor bank will assist SRS in maintaining their power factor as close as possible to the minimum required by the utility company before penalties are assessed.
1.2.4 Proposed Equipment
The proposed ECM 1 will include the major components as described in Section 1.1. An equipment list and manufacturer’s literature for the boiler and turbine system is included in Appendix C.
1.2.5 Expected Lifetime
The combustor/boiler and turbine components have an expected lifetime of 25-30 plus years. Ameresco will repair and replace components to ensure the continuous operation of the equipment throughout the contract performance period.
1.2.6 Physical Changes to Existing Equipment or Facilities
The cogeneration facility will be located on an unoccupied area of the SRS. The actual site will not impact or require physical changes to the existing facilities; however, there are changes required at other areas of the reservation as a result of operations of the new cogeneration facility.
These include the following:
    D-Area Electrical Feeder
 
    Pump and Controls Replacement in Building 681-3G, Water Pump Station
 
    Installation of existing capacitor at the L-Area Substation 151
1.2.7 Savings Proposed
The annual savings associated with ECM 1 are based on the avoided cost of operating and maintaining the existing D Area Plant. The energy savings result from using a more efficient boiler and steam distribution system and the energy cost savings from using biomass as the primary fuel source in place of coal.
1.2.7.1 Annual Project Savings Overview
In order to calculate the annual savings, the baseline costs of the D Area plant were collected and the Post-ECM Implementation Costs were computed. The baseline costs of the ECM are [**] of the D Area plant. The avoided baseline costs for utilities are shown as [**] on Schedule DO-4 and the avoided operations and maintenance costs are shown as [**] on Schedule DO-4. The Post-ECM Implementation Costs that will be incurred by SRS are the costs of [**] and the costs for the [**] associated with the
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Revised Final Proposal – May 11, 2009
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  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
operation of the [**], as compared to the existing D Area plant. Thus, the annual savings from the ECM equals:
Annual Savings = [**] as escalated annually.
Annual savings will [**] throughout the contract term. Table 1.3 provides a summary of the annual Post-ECM Implementation Costs, as escalated, that will be determined annually and Other Energy Savings and O&M Cost Savings, as escalated, which are herein agreed to by the Government and Ameresco for the contract term associated with ECM 1. The utility costs and annual savings are based on current year dollars, but are escalated using the appropriate National Institute of Standards and Technology (NIST) factors (refer to Table 4.3 for the applicable escalation rates) to the date of government acceptance of the project (Project Year 1, CY 2012). Future year O&M cost savings have been escalated at [**]%. The basis of the escalation is the Consumer Price Index for the Southeast region of the US (as reported by the US Department of Labor; Bureau of Labor Statistics) from May 2004 to May 2007, the latest 3 years of data available. The annual increases for those years have been 2.91%, 4.38%, and 2.71%, for an average escalation rate of 3.33%. Utility savings, with the exception of the non-fuel utilities, are escalated using the NIST utility escalation rate for industrial users, sorted by fuel type. Non-fuel utilities are escalated at [**]% per year.
Table 1.3: ECM 1 Annual Savings Summary
                                 
                    Post-ECM    
    Annual Utility   Annual O&M   Implementation   Total Annual
    Savings   Cost Savings   Costs   Savings
Baseline Year (CY 2009)
    [**]       [**]       [**]     $ 30,658,617  
Escalated to Project Year 1 (CY 2012)
    [**]       [**]       [**]     $ 33,181,197  
Year 2
    [**]       [**]       [**]     $ 34,404,421  
Year 3
    [**]       [**]       [**]     $ 35,322,289  
Year 4
    [**]       [**]       [**]     $ 36,399,646  
Year 5
    [**]       [**]       [**]     $ 37,676,281  
Year 6
    [**]       [**]       [**]     $ 39,368,611  
Year 7
    [**]       [**]       [**]     $ 40,858,535  
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Revised Final Proposal – May 11, 2009
Ameresco Federal Solutions
Page 27
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
Table 1.3: ECM 1 Annual Savings Summary
                                 
                    Post-ECM    
    Annual Utility   Annual O&M   Implementation   Total Annual
    Savings   Cost Savings   Costs   Savings
Year 8
    [**]       [**]       [**]     $ 42,100,018  
Year 9
    [**]       [**]       [**]     $ 43,817,394  
Year 10
    [**]       [**]       [**]     $ 47,247,150  
Year 11
    [**]       [**]       [**]     $ 49,023,439  
Year 12
    [**]       [**]       [**]     $ 50,831,412  
Year 13
    [**]       [**]       [**]     $ 52,654,059  
Year 14
    [**]       [**]       [**]     $ 54,705,813  
Year 15
    [**]       [**]       [**]     $ 56,773,136  
Year 16
    [**]       [**]       [**]     $ 58,856,493  
Year 17
    [**]       [**]       [**]     $ 60,921,492  
Year 18
    [**]       [**]       [**]     $ 63,483,800  
Year 19
    [**]       [**]       [**]     $ 65,849,637  
Year 20
    [**]       [**]       [**]     $ 68,447,514  
The following subsections present the assumptions and methodology for establishing the baseline cost and baseline energy consumption for the D Area Plant & Substation, the annual savings calculations, and the performance guarantee for the proposed project.
1.2.7.2 Annual Energy Baseline Consumption & Costs
The D Area Plant uses four (4) coal fired boilers to provide steam and power to SRS and is contractor operated and supported by the engineering group of the M&O Contractor. The annual energy consumption and operations costs data for the D-Area Plant was developed to establish the baseline for this ECM. The baseline operations and maintenance table (Table 1.4) was developed using the monthly averages of the latest two years of cost data for all O&M of the D Area Plant. The O&M costs include [**]. An additional annual reduction of [**] of the D Area Plant and the Substation, [**] the annual O&M Cost Savings. The detailed breakout of the 2006 — 2007 O&M costs are shown in Table 1.4; the
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Revised Final Proposal – May 11, 2009
Ameresco Federal Solutions
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  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
O&M Cost Savings were escalated two years to accurately represent 2009 as the baseline. Total O&M Cost Savings are escalated to 2012 dollars and are $[**]
Table 1.4: O&M Baseline Costs for D-Area Plant
                         
    2006 O&M     2007 O&M     Baseline O&M  
Month   Costs     Costs     Cost Savings  
January
    [**]       [**]       [**]  
February
    [**]       [**]       [**]  
March
    [**]       [**]       [**]  
April
    [**]       [**]       [**]  
May
    [**]       [**]       [**]  
June
    [**]       [**]       [**]  
July
    [**]       [**]       [**]  
August
    [**]       [**]       [**]  
September
    [**]       [**]       [**]  
October
    [**]       [**]       [**]  
November
    [**]       [**]       [**]  
December
    [**]       [**]       [**]  
 
                     
Total
                  $ 10,692,844  
 
                     
 
**   Data was not available, so used 2006 data with escalation on labor only
 
***   Data in this table is presented using 2006 & 2007 dollars and not Baseline year
The annual energy consumption for the D Area plant is based on the amount of coal utilized to produce steam for SRS thermal demand and for SRS power supply. The baseline consumption was determined using monthly averages for the latest two years of fuel usage data. The average annual amount of coal consumed for the past two years was [**] tons, which is used as the agreed upon energy savings baseline. The baseline for energy cost is determined by the product of the baseline energy consumption times the baseline cost of coal. The baseline cost of coal, as provided by SRS and agreed upon, is $[**] per ton of delivered coal. Thus the baseline energy cost is agreed to be $[**]. Currently, all electric power required by the site above the net output of the D Area power plant is procured from SCE&G under Rate Schedule 23 and Rate Schedule 60. The energy charge is [**] per kWh and the average demand charge is $[**] per kW for load over 20 MW. The baseline power export from the D Area plant was determined using monthly averages for the last two years of data. Refer to Table 1.5 for a summary of the fuel consumption and the net power exported from the D Area plant.
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Revised Final Proposal — May 11, 2009
  Biomass Cogeneration Facility and Heating Plants
Ameresco Federal Solutions
  Savannah River Site
Page 29
  Contract DE-AM36-02NT41457
Table 1.5: Baseline Energy Consumption
                                                                                                 
    2006 Energy Use     2007 Energy Use     Baseline Energy Use  
                    Net Output of                             Net Output of                             Net Output of        
Month   Coal Use (tons)     Coal Use (MBtu)     D-Area Plant (MWh)     Power Export (MW)     Coal Use (tons)     Coal Use (MBtu)     D-Area Plant (MWh)     Power Export (MW)     Coal Use (tons)     Coal Use (MBtu)     D-Area Plant (MWh)     Power Export (MW)  
January
    [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]  
February
    [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]  
March
    [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]  
April
    [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]  
May
    [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]  
June
    [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]  
July
    [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]  
August
    [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]  
September
    [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]  
October
    [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]  
November
    [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]  
December
    [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]       [**]  
 
                                          Totals                     161,839       3,978,008       131,889          
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Revised Final Proposal — May 11, 2009
  Biomass Cogeneration Facility and Heating Plants
Ameresco Federal Solutions
  Savannah River Site
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  Contract DE-AM36-02NT41457
1.2.7.3 Annual Energy Savings Calculations
The annual savings are determined by calculating the baseline annual O&M cost for the existing plant, plus the annual energy cost as presented in the previous section. The annual savings are then adjusted to account for the cost to be incurred by SRS to purchase additional power from SCE&G and to account for the Post-ECM Implementation Costs to be incurred by SRS for the non fuel utilities of the new cogeneration facility.
The additional future cost of purchased electricity is calculated using the [**] (refer to Table 1.5) [**], the annual net “green” power generation of the new cogeneration facility will [**]. Refer to Table 1.6 for performance of the plant throughout the performance period
Using the projected SRS steam demand of each of the years during the performance period, net annual green power generation will vary each year of the performance period and therefore the amount of power purchased will change. The annual cost associated with the power purchase is determined by the [**]. Future unit cost for electricity is escalated using the applicable NIST factor and is factored into the DO Schedules (defined below).
The annual savings are also adjusted to account for the Post-ECM Implementation Costs incurred by SRS to provide non-fuel utilities to the new facility. This includes the cost for river water, sanitary sewer, and for domestic water. The annual consumption for each of these utilities is shown in Table 1.6.
The net estimated annual savings for ECM 1 is $33,181,197 for the first year of the performance period (2012).
1.2.7.4 ECM 1 Performance Measurement
The ECM performance will be measured using the flow output (via a steam flow meter) of the two biomass boilers. Measuring and totalizing the steam production permits for flexibility to make use of this steam to meet the thermal and electrical demands of SRS while allowing for normal seasonal variations and adjustments for expected future load changes. The Annual Steam Guarantee (ASG) for ECM 1 will be 1,759,485 kilopounds per year (klbs/yr) of steam using an annual fuel consumption of [**] MBtu/yr and is shown in Table 1.6 — ECM 1 Post-ECM Implementation Facility Performance. The ASG will remain set throughout the performance period; however, the electrical output and the steam export output will vary. Annual biomass costs are calculated based on meeting the ASG and will be adjusted only when the actual steam production for ECM 1 exceeds the ASG; refer to Section 1.3.1.2.
Ameresco proposes to produce additional steam from the cogeneration facility above the ASG, unless notified otherwise in writing by the contracting officer, provided that the Government compensates Ameresco for the incremental cost of biomass annually. Additional steam may be used for power generation or for thermal energy. Excess delivered steam above the ASG will be paid for by the Government as described in Section 1.3. Further increase in green power generation due to excess steam production will result in additional annual savings and will be documented in the annual M&V report.
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Revised Final Proposal — May 11, 2009
  Biomass Cogeneration Facility and Heating Plants
Ameresco Federal Solutions
  Savannah River Site
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  Contract DE-AM36-02NT41457
The planned Post-ECM Implementation Costs for Ameresco to operate and maintain ECM 1 are included in the performance period expenses set forth on Schedule DO-3. The performance period expenses include the costs necessary for Ameresco to provide operations and maintenance of the new cogeneration facility including fuel (biomass and fuel oil for backup), personnel, daily operations and maintenance, routine and non-routine repair and replacement costs, and operations management to meet the ASG.
Post ECM Installation Cogeneration Facility Performance
The data in Table 1.6 is derived from the output of energy modeling software (Thermoflex), from vendor data for equipment efficiency, and from using the steam load data provided by the Government (refer to Table 1.1). The following paragraphs are an overview of the general methodology of the performance calculations.
Steam Use:
Boiler Design capacity (k-lbs/yr) = [**]
Performance Boiler Capacity (k-lbs/yr) = [**]
SRS Export Steam (k-lbs/yr) = [**]
Auxiliary Steam Load (k-lbs/yr) = [**]
Steam Load for Power Generation (k-lbs/yr) = [**]
Annual Steam Guarantee (k-lbs/yr) = [**]
Power Generation:
Net Green Power Generation (kWh/yr)= [**]
     Power generated from the turbine is based on [**].
Net Green Power Generation from Cogeneration Facility (MBtu/yr)= [**]
Baseline Power Export from D Area Plant (kWh/yr)= [**]
Post-ECM Implementation Electricity Purchased from SCE&G (kWh/yr)= [**]
Post-ECM Implementation Electricity Purchased from SCE&G ($/yr) = [**]
     [**].
Fuel Supply:
Annual Fuel Consumption (MBtu/yr) = [**]
Biomass Required for ECM 1 (tons/yr) = [**]
Use or disclosure of data contained on this sheet is subject to the restriction on the first page of this proposal

 


 

Revised Final Proposal — May 11, 2009   Biomass Cogeneration Facility and Heating Plants
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Page 32   Contract DE-AM36-02NT41457
Table 1.6: ECM 1 Post-ECM Implementation Facility Performance
                                                         
Plant Parameter   Year 1     Year 2     Year 3     Year 4     Year 5     Year 6-9     Year 10-20  
Total Boiler Capacity Steam Load (k-lbs/yr)
    2,102,400       2,102,400       2,102,400       2,102,400       2,102,400       2,102,400       2,102,400  
Annual Steam Guarantee (k-lbs/yr)
    1,759,485       1,759,485       1,759,485       1,759,485       1,759,485       1,759,485       1,759,485  
Steam Use
                                                       
SRS Export Steam Load (k-lbs/yr)
    [**]       [**]       [**]       [**]       [**]       [**]       [**]  
Steam Load for Power Generation (k-lbs/yr)
    [**]       [**]       [**]       [**]       [**]       [**]       [**]  
Aux Steam Load (k-lb/yr)
    [**]       [**]       [**]       [**]       [**]       [**]       [**]  
Power Generation
                                                       
Net Green Generation (kWh/yr)
    [**]       [**]       [**]       [**]       [**]       [**]       [**]  
Net Green Generation (MBtu/yr)
    [**]       [**]       [**]       [**]       [**]       [**]       [**]  
Baseline Power Export from D Area Plant (kWh/yr)
    [**]       [**]       [**]       [**]       [**]       [**]       [**]  
Post-ECM Implementation Electricity Purchased from SCE&G (kWh/yr)
    [**]       [**]       [**]       [**]       [**]       [**]       [**]  
Post-ECM Implementation electricity Purchased from SCE&G ($/yr) (*see note)
    [**]       [**]       [**]       [**]       [**]       [**]       [**]  
Fuel Supply
                                                       
Annual Fuel Consumption for ECM 1 (MBtu/yr)
    2,727,205       2,727,205       2,727,205       2,727,205       2,727,205       2,727,205       2,727,205  
Fuel Required for ECM 1, 100% Biomass (tons/yr)
    317,118       317,118       317,118       317,118       317,118       317,118       317,118  
Fuel Cost for ECM 1, 100% Biomass ($/yr) (**see note)
    [**]       [**]       [**]       [**]       [**]       [**]       [**]  
Use or disclosure of data contained on this sheet is subject to the restriction on the first page of this proposal

 


 

Revised Final Proposal — May 11, 2009   Biomass Cogeneration Facility and Heating Plants
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Page 33   Contract DE-AM36-02NT41457
Table 1.6: ECM 1 Post-ECM Implementation Facility Performance
                                                         
Plant Parameter   Year 1   Year 2   Year 3   Year 4   Year 5   Year 6-9   Year 10-20
Post-ECM Non Fuel Utilities ***
                                                       
 
                                                       
River Water (k-gals/yr & $/yr)
    460,215       456,015       459,033       460,261       457,981       461,026       454,418  
 
  $ (346,699 )   $ (353,842 )   $ (366,869 )   $ (378,886 )   $ (388,319 )   $ (402,627 )   $ (446,666 )
 
                                                       
Domestic Water (k-gals/yr & $/yr)
    456       456       456       456       456       456       456  
 
  $ (4,692 )   $ (4,833 )   $ (4,978 )   $ (5,128 )   $ (5,281 )   $ (5,440 )   $ (6,123 )
 
                                                       
Sanitary Sewer (k-gals/yr)
    456       456       456       456       456       456       456  
 
  $ (3,621 )   $ (3,730 )   $ (3,842 )   $ (3,957 )   $ (4,076 )   $ (4,198 )   $ (4,725 )
 
                                                       
 
*   The power purchased cost is per 2009 unit cost, however the DO schedules are escalated per NIST to account for future price of power.
 
**   Annual biomass cost for years 7-9 and 11-20 are not shown in this table, but escalated from previous year using an escalation factor of 5%
 
***   Non fuel utility consumption is calculated on full load on expected maximum each year so the consumption is constant throughout the term; the actual cost is escalated each year.
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Page 34   Contract DE-AM36-02NT41457
1.2.8 Utility Interruptions
The utility interconnections are described in detail in Section 1.2.3. It is anticipated that these connections will be made with minimal interruption to the SRS site. Any necessary interruptions will be coordinated and scheduled in advance with SRS personnel and with M&O site personnel. The shutdown of the D area plant and the start-up of the new cogeneration facility will be coordinated with SRS personnel and D Area site personnel to allow for minimal interruptions during transition.
1.2.9 Agency Support Required
Ameresco will continue to work with the Government as the project moves through the final design and the construction period. Support from the Government’s engineering, contracting, and maintenance units, as well as management will be required for continued success of the proposed project. The Government, through its M&O Contractor Environmental Support Section will be responsible for processing the storm water management permit, the final site use permit, the National Environmental Policy Act (NEPA) document, domestic water permit, sanitary sewer permit, wetland permit, and the new outfall into the site NPDES Permit. Refer to Section 3.2 for a description of the environmental permit and documentation required for this ECM.
1.2.10 Potential Environmental Impact
Refer to Section 3.0 for environmental benefits and impacts from both ECMs.
1.2.11 ECM Property Ownership
As approved under the BAMF Contract, title to all contractor-installed equipment proposed under this ECM will vest with the Government upon its acceptance of such ECM or the date that commercial operations begin, whichever occurs earlier.
1.2.12 ECM Project Schedule
The construction schedule will be developed using Primavera P-6 software and submitted to the contracting officer. The following table shows the major milestones of the design and construction period.
Table 1.7: Project Milestones
                 
Activity   ECM 1   ECM 2
Site Work
    09/01/09       07/01/09  
Site Utility*
    09/01/09       09/01/09  
Concrete/Foundation Work
    12/01/09       11/01/09  
Building Package
    06/01/10       01/01/10  
Mechanical Install Work
    06/01/10       05/01/10  
Process Piping Work
    08/01/10       05/01/10  
Electrical Plant Work
    12/01/10       05/01/10  
Instrumentation & Controls Work
    12/01/10       05/01/10  
Insulation Work
    12/01/10       05/01/10  
Start up & Commissioning
    06/01/11       07/01/10  
 
*   Design Packages to be submitted throughout the first year of project
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Revised Final Proposal — May 11, 2009   Biomass Cogeneration Facility and Heating Plants
Ameresco Federal Solutions   Savannah River Site
Page 35   Contract DE-AM36-02NT41457
1.3 BAMF Project Components
1.3.1 BAMF Resource
ECMs 1 and 2 will require approximately 322,118 tons of forest residue biomass per year to meet Ameresco’s ASG and approximately 385,000 tons of forest residue biomass per year to operate at design capacity. For such calculation of tons, Ameresco used a heating value of 4,300 Btu/lb from forest residue. Ameresco intends to procure both clean biomass and biomass derived fuel (BDF). Clean biomass includes forest residues, some urban waste, untreated wood pallets, and residue from lumber processes. BDF includes urban wood waste and tire derived fuel and will only be used in connection with ECM 1. There are numerous sources of clean biomass within a 100 mile radius of the SRS site, including within the SRS Forest. The following sections describe available BAMF supply, BAMF pricing, and BAMF acquisition.
1.3.1.1 BAMF Supply
Following several discussions with the local office of the U.S. Forest Service and SRS personnel, Ameresco proposes to assume responsibility for the fuel procurement and intends to meet the biomass fuel requirements for ECMs 1 and 2 through purchases from local biomass suppliers. This responsibility shall include the right to validate, verify, and sell any carbon credits, but not renewable energy certificates, which may be obtainable from the ECMs and their associated operation and activities. Ameresco will consult with the Government concerning the design, validation, and verification for carbon offset credits and will make reasonable commercial efforts to obtain carbon offset credits which may be associated with the ECMs. Those credits may arise from the substitution of biomass residues for use in lieu of fossil fuels, and the use of biomass from onsite activities, including those from forest reforestation and working forest activities.
BAMF Deliveries
There will be deliveries of biomass and other BAMF fuel scheduled daily, Monday through Friday (normal operations), throughout the contract performance period. It is estimated that up to 60 trucks may enter and depart the C and Burma Road location each day, five days per week. It is anticipated that deliveries will be accepted from 7:00 AM to 7:00 PM although the exact hours may vary by season and/or supplier. Acceptable delivery hours will be established with each biomass supplier. Following meetings with SRS personnel, Ameresco has agreed to minimize the number of deliveries departing the site at the C Road traffic signal from 6:30 to 8:30 AM to accommodate arriving SRS personnel turning left at that traffic signal. Ameresco has been given assurance, and this proposal is predicated upon biomass delivery vehicles being permitted to enter and depart the SRS reservation at any of the available (open) gates and not be limited to just the Aiken and Jackson Barricades.
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Revised Final Proposal — May 11, 2009   Biomass Cogeneration Facility and Heating Plants
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Page 36   Contract DE-AM36-02NT41457
Drivers of the BAMF delivery vehicles will be required by Ameresco to obtain a permanent (one year) site badge and to comply with SRS vehicle safety and site entry requirements, except as noted above.
Ameresco has conducted many discussions and met with potential fuel suppliers within the past few months. Ameresco is currently working primarily with [**], to obtain biomass fuel supply contracts needed for the ECMs, although there are additional suppliers within the region that continue to express an interest in becoming a biomass fuel supplier. All are large companies with capabilities of harvesting, collecting, and delivering wood chips to end users and have contracts to harvest timber in the SRS Forest.
[**] offers the following services: [**] of the fuel required by the ECMs. [**]. Further, Ameresco intends to use BDF sources such as urban waste and tires as described below.
1.3.1.2 BAMF Pricing
Ameresco’s annual expense for biomass to fuel both ECMs shall be on a [**] in the amounts set forth on Schedule DO-3 under the caption “Other – Biomass Fuel ($)” which represents Ameresco’s Biomass Expense and is based on supplying approximately [**] tons of biomass per year at a unit price of [**] per ton (in 2009 dollars) escalated thereafter at [**] percent ([**]%) per year. Ameresco [**]:
     (a) [**]
     (b) Ameresco shall establish an interest bearing Performance Period Escrow Fund (PPEF) to be held by a third party bank fiscal agent pursuant to which Ameresco’s lender shall have a security interest and control as described in Section 9-104 of the Uniform Commercial Code and in which Ameresco will deposit or cause to be deposited:
     (i) approximately [**] into the PPEF upon Government acceptance of both ECMs, provided such amount will be finalized upon contract award, approval by Ameresco’s lender and locking the project’s interest rate;
     (ii) the sales tax reserve, as described in Section 6.3 herein, of approximately four million six hundred thousand dollars ($4,600,000) upon Government acceptance of both ECMs, provided that Ameresco receives a sales tax exemption certificate from the State of South Carolina;
     (iii) [**]; and
     (iv) [**].
The intended purpose in establishing the PPEF is to [**]. Therefore, all funds in the PPEF shall be [**] prior consent, such consent not to be unreasonably withheld; provided the [**] prior consent, such consent not to be unreasonably withheld, when [**].
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Revised Final Proposal — May 11, 2009   Biomass Cogeneration Facility and Heating Plants
Ameresco Federal Solutions   Savannah River Site
Page 37   Contract DE-AM36-02NT41457
The PPEF will also be available to the [**] amount set forth on Schedule DO-5(a), as negotiated. [**].
     (c) To the extent that Ameresco’s [**], Ameresco may [**]; provided, however, that [**], the following shall have occurred (i) Ameresco will have [**], (ii) Ameresco shall have [**] and (iii) Ameresco will have [**]; provided further, however, that such [**] requirement as set forth on Table 1.6 herein under the caption “SRS Export Steam Load (k-lbs/yr).” Should Ameresco make the decision to [**] prior notification will be provided by Ameresco to the [**] in accordance with this Final Proposal and the BAMF Contract.
     (d) To the extent that Ameresco’s [**], at the end of the final year of the performance period, the parties agree to extend the term of the contract to the later of (i) one year or (ii) until such time as its cumulative actual cost of biomass equal its biomass payments; provided such extension in (i) or (ii) does not exceed statutory term limitation.
     (e) Ameresco, upon [**] prior written notice to the [**]. Upon consummation of Ameresco’s [**]. The foregoing notwithstanding, Ameresco agrees that it will, [**] as set forth in the contract.
Ameresco may [**]. In the event, any resulting savings above Ameresco’s [**] in accordance with this Final Proposal. Ameresco will [**].
1.3.1.3 BAMF Acquisition
Ameresco may enter into an agreement with one or more biomass suppliers. Ameresco will also attempt to secure from each supplier a fixed fuel price for as long a term as possible.
1.3.2 BAMF Transportation, Metering, & Delivery
1.3.2.1 BAMF Transportation & Delivery
The biomass will be delivered from the suppliers using trucks with live bottom feeders, self-dumping trucks, or trucks with high-side trailers. Typically, each of the larger trucks has the capacity to hold approximately 120 cubic yards of fuel per load. The smaller self dumping/end dump trucks typically only carry about 50 cubic yards of fuel and will be used primarily for BDF waste sources or for larger unprocessed fuel. Actual loads may vary with the density of the fuel. Normal truck deliveries will be arranged to be made Monday through Friday.
1.3.2.2 BAMF Metering
Woodwaste is commonly measured in units of weight and volume such as in tons, truck loads, or cubic yards, rather than in units of energy. For this proposal, the higher heating value of biomass is about 4,300 Btu/lb since the majority of the fuel will be from forest residues and is typically high in moisture. The fuel supply will be tracked and recorded using the truck scale tickets. Periodic testing will be done on the fuel to determine the composition and the heating value.
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Revised Final Proposal — May 11, 2009   Biomass Cogeneration Facility and Heating Plants
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Page 38   Contract DE-AM36-02NT41457
1.3.3 BAMF End-Use Project
1.3.3.1 BAMF End-Use Demand
End use of the biomass source was calculated utilizing forest residue as the main fuel source to meet the ASG. Forest residues for the Carolina area are typically high in moisture with heating values in the range of 4,100-4,600 Btu/lb. For the design basis and end use demand calculations, a higher heating value of 4,300 Btu/lb was used to determine boiler feed input. At this heating value, the boiler efficiency is expected to be 70%. At these conditions, the expected annual fuel use for ECM 1 is 317,118 tons a year of biomass consisting of forest residues.
1.3.3.2 BAMF End-Use Operations & Maintenance
Ameresco will retain operational and maintenance responsibility for the cogeneration facility and equipment installed at the cogeneration facility, described in Section 5.2.7.1 of this proposal.
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Revised Final Proposal — May 11, 2009   Biomass Cogeneration Facility and Heating Plants
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Page 39   Contract DE-AM36-02NT41457
2.0 ECM 2 DESCRIPTION
2.1 ECM Summary Schedule DO-4
Pricing Schedule DO-4 is included in Section 6.0, Proposal Pricing Information.
2.2 ECM #2: Biomass Heating Plants for K& L Areas
2.2.1 Detailed Description of ECM
2.2.1.1 ECM Summary
ECM 2 includes the installation of biomass heating plants in the K Area and the L Area. These new heating plants will replace the existing fuel oil-fired boiler plant located in the K Area that currently serves heating loads in both the K and L Areas. The two existing 30,000 and 60,000 lb/hr steam boilers are in poor condition and are now vastly oversized for the current load (estimated by SRS personnel to be approximately 7,000 PPH of steam in each area at design conditions). The existing 30,000 lb/hr boiler has been utilized as the primary boiler during the most recent years, due to the large reduction in load from the original design. Currently steam is produced at 150 psig to distribute to the K and L Areas and reduced inside the secure areas for use at 30 psig or less. By decentralizing the existing plant and providing local boiler systems in both the K and L Areas, the losses from the existing aboveground 2.5 mile, 6-inch steam line running from the K Area to the L Area will be eliminated. Additional efficiency gains are made from the right-sizing of the new heating plants to match existing loads.
The heating plants are each sized to provide a continuous availability for supply of steam to site end-users in the K and L areas during the typical heating season of December through mid April. The individual site demand was based on fuel oil consumption data for the past 5 years. The system is designed using applicable national codes and standards for steam plants and specific site standards (refer to Appendix D). Previously, conceptual design drawings were submitted to the site for review prior to issuance of this final proposal; a draft version of the “issued for pricing” drawings is included in Volume III of this proposal. Finalized “issued for construction” drawings will be submitted to the government for concurrence throughout the first year of the construction as major equipment items are ordered and the design drawings are finalized.
Implementation of this project provides utility savings resulting from 1) The elimination of losses from 2.5 miles of existing steam distribution piping between the K and L Areas; and 2) Improved operations from properly sized boilers, and the fuel cost differential in switching from fuel oil to clean biomass. Annual savings are over $1.1 M for this ECM.
This proposal includes the procurement and installation of the new equipment, the support facilities, all auxiliary systems and controls, and utility tie-ins required to connect the new heating plants to the K and L Area distribution systems, as well as ongoing O&M and environmental compliance of both heating plants for the contract duration.
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Revised Final Proposal — May 11, 2009   Biomass Cogeneration Facility and Heating Plants
Ameresco Federal Solutions   Savannah River Site
Page 40   Contract DE-AM36-02NT41457
2.2.1.2 ECM Process Description
This ECM includes two major components for each of the proposed heating plants: 1) Biomass fuel storage system, and 2) combustion/boiler system. Each new heating plant will be installed in an enclosed building with an adjacent covered shelter to house the wood fuel storage and delivery equipment. Biomass fuel will be delivered to both heating plants by Ameresco personnel from the fuel processing yard of the Biomass Cogeneration Facility. The fuel delivered to each of these heating plants will be clean biomass (refer to Section 1.3). The clean biomass will be used as the primary fuel source for two new wood waste combustor boilers to supply steam to the K and L Areas. Each boiler system will be designed to generate 10,500 PPH of saturated steam at 135 psig.
Biomass Fuel Storage System
The fuel storage area consists of the storage system and feeder to the combustion system. The components of this system are recommended to minimize equipment at each site and to provide maximum automation to each of the heating plants. Ameresco personnel will employ tractor-trailers to transfer the biomass fuel from the fuel yard at the cogeneration facility to both the K and L Area heating plants. The tractor-trailers will be parked in the new fuel storage shelter bays, one at each heating plant location. Each tractor-trailer is equipped with a walking floor-bed installation for the automated transfer of fuel to the stationary metering bin at each heating plant. The metering bin utilizes augers to feed the fuel into the combustion system.
The flow of fuel is controlled by an integrated direct digital control (DDC) system that automates the flow of fuel from the walking-bed to the metering bin, and from the metering bin to the combustor, based on input signals (and required safeties) to maintain steam pressure at the output of the boiler.
Fuel Storage System components for each area (K and L) includes:
    Tractor trailer with walking bed for fuel feed
 
    Fuel storage shelter bay
 
    Main fuel bin and auger to feed combustor
Combustion/Boiler System
One combustion/boiler system will be located in each area, in a separate, enclosed bay connected to the fuel storage shelter bay. The system proposed is manufactured by Hurst Boiler & Welding Company, Inc., and is designed specifically for the combustion of solid waste fuels to optimize energy recovery and minimize air emissions. Refer to Appendix C for manufacturer cut sheets.
When there is a demand for steam the biomass is augered from the fuel storage bin into the combustor, where the biomass begins to burn by the use of three levels of air directed into the combustion zone. The primary air is forced into the combustion zone from beneath the fuel grates (on which the fuel rests during combustion). The secondary air is forced through side grates, and the tertiary air comes through the side
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Revised Final Proposal — May 11, 2009   Biomass Cogeneration Facility and Heating Plants
Ameresco Federal Solutions   Savannah River Site
Page 41   Contract DE-AM36-02NT41457
of the cast refractory to keep unburned ash from exiting the unit. The primary combustion zone is lined with high-insulating value, cast refractory ceramics to minimize radiant heat losses from the unit exterior.
A similar, secondary ceramic chamber fired at 3,100°F is included between the primary combustion zone and the boiler to allow for an extended combustion zone. The extended retention time in the secondary zone ensures the additional combustion of the biomass and reduces emissions. The appropriate combustion temperature is maintained by adjusting fuel feed, fan speed, and air intake.
Each boiler will be equipped with an auxiliary burner to allow for the firing of fuel oil for full output capacity of the boiler. Fuel oil will be used for pilot lighting on startup, and as a back-up emergency fuel source only. Each boiler has the capacity to produce up to 10.5 k-lb/hr of 135 psig steam when the combustion system is operated at full output. Each is a 2,600 sq ft unit, with 2 pass design and includes standard instrumentation, rear furnace access door, and air-operated soot blowers. Downstream of each steam boiler, the exhaust gas will go through a multi cyclone which reduces the particulate matter in the exhaust gas by 70%. The exhaust stacks will be equipped with appropriate lighting as required for on-site helicopter travel.
Boiler/Combustion System components for each area include:
    Metering Bin Feeder
 
    10.5 MBtu/hr combustion unit
 
    Full-capacity fuel oil burner
 
    Steam heat recovery boiler
 
    Multi cyclone
 
    SCADA system
 
    Automated ash removal system
 
    Exhaust stack with aviation lights
 
    Boiler auxiliaries
 
    Air compressor for L Area
 
    Water treatment skid for L Area
 
    Fuel Oil Storage
2.2.1.3 ECM Operation
Ameresco will be responsible for operating and maintaining the heating plant facilities and equipment throughout the contract term. Both boilers will be operated by Ameresco as needed to meet the steam demand as more fully described in Section 2.2.7.3.
Both heating plants will be remote monitored via a telephone modem and using the Site PA system from the control system at the cogeneration facility. Maintenance and inspection of the systems will be performed by Ameresco operations personnel from the cogeneration facility. Refer to Table 2.1, which
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Revised Final Proposal — May 11, 2009   Biomass Cogeneration Facility and Heating Plants
Ameresco Federal Solutions   Savannah River Site
Page 42   Contract DE-AM36-02NT41457
defines the interconnection and utility O&M responsibility for this ECM. Refer to Section 5.2.7.1 for a detailed description of the O&M responsibilities of each party.
2.2.2 Location Affected
The biomass heating plant at the K Area will be constructed in the same vicinity as the existing plant, behind the two existing 30,000 gallon fuel oil tanks. The existing fence will be modified to allow for the construction of a new gate which the biomass delivery trucks will use for accessing the heating plant. A new facility will be constructed to house the biomass heating plant, while the biomass fuel storage and feeder area will be located under a covered bay attached to the new heating plant. For the L Area, a replica of the K Area heating plant will be installed northeast of the abandoned cooling water basin. The footprint for each system is approximately 2,600 square feet, including an enclosed sound proof control booth. Refer to Figure 2.1and Figure 2.2 for site location plans for each area.
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Revised Final Proposal — May 11, 2009
Ameresco Federal Solutions
Page 43
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
Figure 2.1: K Area Biomass Heating Plant Location
[**]
Figure 2.2: L Area Biomass Heating Plant Location
[**]
2.2.3 ECM 2 Interface with Government Equipment
Title to all Ameresco installed equipment will transfer to the Government at the time of Government acceptance of an ECM. For the sake of clarity, ECM 2 will interface with existing Government equipment at the utility interconnections as described in this section. The installation of utility interconnections required for the new heating plants are included in the project implementation cost and the installation will be Ameresco’s responsibility; however, the SRS M&O Contractor will retain O&M responsibility including repair and replacement for the utility interconnections and utility distribution systems. Table 2.1 provides a summary of the utility interface and the scope of O&M responsibility for the utility systems. Ameresco and the SRS M&O Contractor will enter into an agreement that will provide the heating plants with utility services to include river water, process sewer service, backup electrical power, and domestic water service. A PSUP form will be completed by Ameresco prior to construction of utility interconnections. Utility meters will be installed to measure usage. It is proposed the Government will incur the cost for the cogeneration facility’s non fuel utilities. These Post-ECM Implementation Costs have been factored into the annual savings. The annual consumption and costs of the utilities are shown in Table 2.5, and the unit cost used for each utility is shown in Table 4.2. Refer to Section 5.2.7.1 for operation and maintenance responsibility.
Table 2.1: Utility Interconnection Summary
         
Utility   Interconnection   O&M Responsibility
Steam
  New 6" 150 psig to existing steam line (PRV station in K Area)   Ameresco: to new valve located in new line just prior to POIC with existing steam line; SRS: downstream of valve.
 
       
Domestic water (K &
L Area)
  30 gpm, new 2" line from plant to header located outside existing water treatment plant. A new 2" line will be installed from the domestic water header to the L Area heating plant to be used as a backup source for feedwater and as a source for the safety shower and eyewash.   Ameresco: to new utility valve outside of water treatment building; SRS: downstream of tie-in.
 
       
River water (L Area)
  New 4", 30 gpm, line from river water header in L Area   Ameresco: to new valve located in new line outside of heating plant; SRS: upstream of utility valve.
 
       
Process Sewer
  2" connection to existing line to Ash Basin for K Area & 2" connection to basin to L-07 outfall for L Area   Ameresco: to new valve located in new line outside of heating plant; SRS: downstream of utility valve. (Ameresco responsible for meeting discharge emission requirements of these lines from the K and L heating plants)
 
       
Electrical
  New line from 151-2K in K Area and add new line from 183-2L to the heating plant for the L Area   Ameresco: from connection at heating plant; SRS: upstream of each heating plant.
 
       
Telephone Line/PA
System
  Verizon New Line   Verizon/Ameresco
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Electrical System
K Area: At the time Ameresco performed the initial field survey, SRS staff were beginning the process of designing a dedicated overhead 300A, 480V feeder and panel board. This system has not been installed to date, so a new feeder from the 151-2K substation will be provided as part of the ECM 2 work scope. New motor control center(s) and associated low-voltage distribution equipment, lighting, and related requirements associated with the new boiler and fuel handling equipment will be provided.
L Area: Based on information provided by SRS, the switchgear, 183-2L is available for interconnection and has adequate capacity for the load of the heating plant. Ameresco will run a new feeder from 183-2L to serve a new overhead wood-pole distribution line to the proposed boiler plant site. A new feeder will supply the motor control center and distribution panel(s) required for the new equipment.
Steam Distribution System
K and L Area: Each new boiler will be connected to the existing steam distribution lines within each area. The new boiler system will operate at 135 psig and pass through the existing PRV station for distribution to end users at 30 psig.
Boiler Feedwater
K Area: Existing boiler feedwater services will be utilized for the new heating plant. Ameresco will use and maintain the existing water treatment system. If the existing well water treatment plant is not upgraded to produce domestic water prior to project startup, a small water tank will be installed to hold domestic water for use in the safety shower and eye wash station.
L Area: River water will be used as the source for boiler feedwater for the heating plant. There will also be a domestic water feeder used as a backup source for boiler feedwater and to feed the safety shower and eyewash. A new water treatment facility will be installed to treat the water for suitability of the new biomass boiler.
Process Sewer
K Area: The boiler blow down will connect to the process sewer system that runs to the existing ash basin.
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L Area: The boiler blow down will be discharged to the existing L-07 Outfall. Ameresco will be responsible for ensuring this (L Area heating plant) effluent is compliant with the NPDES Site Permit.
2.2.4 Proposed Equipment
The proposed equipment is described in the previous section and an equipment list and manufacturer information for the combustor/boiler system is included in Appendix C.
2.2.5 Expected Lifetime
The major equipment components have an expected lifetime of 20 — 30 years. Annualized repair and replacement costs have been included in this proposal. Ameresco will be responsible for all repair and replacement required to maintain heating plant operation.
2.2.6 Physical Changes to Existing Equipment or Facilities
Both proposed heating plants will be located outside of the process areas; however, this ECM proposes to make the following modifications within the K Area:
    The K Area water treatment building will be left in place and existing water treatment components will be utilized. Ameresco will maintain the water treatment equipment and building throughout the term of this contract.
    The air compressor located next to the existing fuel boilers in the K Area will be used for the new biomass combustor system. Ameresco will maintain the air compressor throughout the contract term.
2.2.7 Savings Proposed
The annual savings associated with this ECM are based on the avoided cost of operating and maintaining the existing K Area Plant including the distribution system between the K and L Area, the annual energy savings resulting from using a more efficient boiler, and by using biomass instead of fuel oil as the primary fuel source. Additional energy consumption savings will be realized by replacing the K Area plant with two smaller heating plants, which eliminates the 2.5 mile distribution line between the two areas.
Table 2.2 summarizes the annual savings associated with ECM 2. Annual Energy Savings [**] are agreed to be [**]; however, the annual savings are adjusted each year to account for [**] agreed to be [**], resulting in a total of $1,188,383. Using the current NIST escalation factors for the utility savings, the total annual savings for Project Year 1 (assumed to be CY 2012) are $1,171,260. Future years have been escalated at [**]%. The basis of the escalation is the Consumer Price Index for the Southeast region of the US (as reported by the US Department of Labor; Bureau of Labor Statistics) from May 2004 to May 2007, the latest 3 years of data available. The annual increases for those years have been 2.91%, 4.38%, and 2.71%, for an average escalation rate of 3.33%. Annual Energy Savings and O&M Cost Savings shown on Table 2.2 are herein agreed to by the Government and Ameresco for the term of the contract.
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Table 2.2: ECM 2 Annual Savings Summary
                                 
                    Post-ECM        
    Annual Energy     Annual O&M Cost     Implementation        
    Savings     Savings     Costs     Total Annual Savings  
Current Year (FY 2009)
    [**]       [**]       [**]     $ 1,188,383  
Escalated to Project Year 1 (FY 2012)
    [**]       [**]       [**]     $ 1,171,260  
Year 2
    [**]       [**]       [**]     $ 1,182,735  
Year 3
    [**]       [**]       [**]     $ 1,207,952  
Year 4
    [**]       [**]       [**]     $ 1,233,416  
Year 5
    [**]       [**]       [**]     $ 1,245,632  
Year 6
    [**]       [**]       [**]     $ 1,284,832  
Year 7
    [**]       [**]       [**]     $ 1,324,974  
Year 8
    [**]       [**]       [**]     $ 1,385,220  
Year 9
    [**]       [**]       [**]     $ 1,446,124  
Year 10
    [**]       [**]       [**]     $ 1,481,648  
Year 11
    [**]       [**]       [**]     $ 1,537,014  
Year 12
    [**]       [**]       [**]     $ 1,593,421  
Year 13
    [**]       [**]       [**]     $ 1,643,974  
Year 14
    [**]       [**]       [**]     $ 1,708,160  
Year 15
    [**]       [**]       [**]     $ 1,773,132  
Year 16
    [**]       [**]       [**]     $ 1,832,320  
Year 17
    [**]       [**]       [**]     $ 1,898,294  
Year 18
    [**]       [**]       [**]     $ 1,972,045  
Year 19
    [**]       [**]       [**]     $ 2,053,597  
Year 20
    [**]       [**]       [**]     $ 2,129,145  
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  Biomass Cogeneration Facility and Heating Plants
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Contract DE-AM36-02NT41457
2.2.7.1 Annual Energy Savings
The annual savings are based on the avoided cost to operate and maintain the K Area plant including the distribution system between the K and L Area and the cost of energy required to produce steam in the existing boilers minus the Post ECM cost of the non fuel utilities for each heating plant. The savings will be applied to fund the capital cost of the project and to fund the ongoing performance period expenses throughout the contract performance period term. The performance period expenses include the costs to operate and maintain the new heating plants such as biomass and fuel oil cost, labor cost, consumable costs, maintenance costs, repair and replacement cost, and operation management. The following subsections show the baseline cost and energy consumption for the existing K Area Plant, the calculations of fuel and operating costs of the new heating plants, and the savings summary for the proposed project.
2.2.7.2 Annual Energy Baseline Consumption & Costs
Currently the K Area plant utilizes one 60,000 lb/hr fuel oil boiler and one 30,000 lb/hr fuel oil boiler to serve both the K Area and the L Area facilities via a 2.5 mile steam pipeline. Data provided by SRS indicates that the 30,000 lb/hr boiler is the primary boiler, with the 60,000 lb/hr not having run in the past 3 years. Steam is produced at 150 psig and is reduced to an operating pressure of 30 psig for each site. The existing boilers are oversized and past their useful life, and are currently a costly maintenance issue.
In order to calculate the annual savings for this ECM, a baseline was developed to depict the most reasonable representation of the annual energy determined by taking the average consumption of the past 5 years, and to determine the annual O&M costs which were based the average of the past 5 years as shown in the following tables:
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  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
Table 2.3: Baseline Operating and Maintenance Cost for K Area Plant
                                                         
O&M Expense   2003     2004     2005     2006     2007     Baseline Year (2009)     Average Annual Costs  
Labor Total
    [**]       [**]       [**]       [**]       [**]       [**]       [**]  
Material Total
    [**]       [**]       [**]       [**]       [**]       [**]       [**]  
Other Consumable Total
    [**]       [**]       [**]       [**]       [**]       [**]       [**]  
Steam Distribution O&M
    [**]       [**]       [**]       [**]       [**]       [**]       [**]  
Subcontracts for Repair & Replacement
    [**]       [**]       [**]       [**]       [**]       [**]       [**]  
Overhead for O&M
    [**]       [**]       [**]       [**]       [**]       [**]       [**]  
Total O&M Cost Savings
    [**]       [**]       [**]       [**]       [**]       [**]       [**]  
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Table 2.4: Baseline Annual Energy Consumption for K Area Plant
                                                 
K Plant Production   2003     2004     2005     2006     2007     Average  
Fuel Use
                                               
Fuel Use Gallons
    345,594       380,806       343,987       277,061       200,707       309,631  
Fuel Use MBtu
    47,865       52,742       47,642       38,373       27,798       42,884  
Steam Production
                                               
Total k-lbs/yr
    36,648       40,382       36,478       29,381       21,284       32,835  
Hours in Season
    3264       2904       3264       2424       2112       2,794  
Average Load lbs/hr
    11,228       13,906       11,176       12,121       10,078       11,754  
Using the past 5 years of data for fuel oil consumption, the annual average consumption is 309,631 gallons. The current price of fuel oil is $2.13 per gallon; therefore, the baseline energy cost is $659,514.
The annual savings for ECM 2 are equal to the O&M cost savings plus the annual energy costs baseline minus the post-ECM non-fuel energy costs. The annual savings for ECM 2 is $1,188,383 for the current year and $1,171,260 for Year 1 (2012).
2.2.7.3 Annual Heating Plant Performance
For ECM 2, heating plant performance is based on heating plant availability to provide steam to the K and L Areas, with outages no longer than a period of a week (seven continuous days) at any one time, during the typical heating season of December through April up to a maximum of 33,300 klbs/yr (Availability Guarantee). The annual fuel cost for this ECM has been calculated using an annual steam production of 33,300 klbs. If the steam load for the heating season is lower than 33,300 klbs and therefore the fuel consumption is lower, the difference will be reconciled as described in Section 1.3. It is expected there will be a reduction of 10% of the steam load due to the shutdown of the steam line between the two areas. If the steam production is higher due to an increase in either Area’s demand, the fuel cost will be adjusted annually. Annual fuel costs are calculated based on meeting the Availability Guarantee and will be adjusted annually on actual steam production and actual fuel consumption (Refer to Section 1.3). The expected heating plant performance is shown in the following table:
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Table 2.5: ECM 2 Post ECM Heating Plant Performance
         
Heating Plant Parameter   ECM Post-ECM Performance
Typical Operation
  December- April 15
Expected Steam Production (k-lbs/yr)
    33,300  
Fuel Required for ECM 2, 100% Biomass (MBtu/yr)
    42,844  
Fuel Required for ECM 2, 100% Biomass (tons/yr)
    5,000  
Fuel Cost for ECM 2, 100% Biomass ($/yr) 2009
  $ 110,000  
Fuel Cost for ECM 2, 100% Biomass ($/yr) 2012 — Year 1
  $ 120,200  
The non-fuel utilities consumed at each of the heating plants are to be incurred by the Government. The Post-ECM implementation cost has been deducted from the annual savings for each year of the performance period. The water consumption is based on the Availability Guarantee and the electricity consumption is based on the load of the heating plants for the typical heating season. The annual utility cost was calculated by multiplying the consumption by the unit cost of the utility (refer to Table. 4.2). The unit cost of the utilities is escalated using the NIST values and the [**]% escalation for the water cost.
Table 2.6: ECM 2 Annual Post ECM Non-Fuel Utilities Cost & Consumption
                 
Utility   Annual Consumption   Annual Cost
Domestic Water
  2,004 k-gal/yr   $ 22,861  
River Water
  2,004 k-gal/yr   $ 922  
Electricity
  345,600 kWh/yr   $ 32,141  
2.2.8 Utility Interruptions
The utility interconnections are described in detail in Section 2.2.3. It is anticipated that these connections will be made with minimal interruption to SRS functions. Any necessary interruption will be coordinated and scheduled in advance with site personnel.
2.2.9 Agency Support Required
Ameresco will continue to work with the Government as the project moves through the final design and the construction period. Support from the Government’s engineering, contracting, and maintenance units, as well as management will be required for continued success of the proposed project.
2.2.10 Potential Environmental Impact
Refer to Section 3.0 for environmental benefits and impacts for both ECMs.
2.2.11 ECM Property Ownership
As approved under the BAMF Contract, title to all contractor-installed equipment proposed under this ECM will vest with the Government upon its acceptance of such ECM, or the date that commercial
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operations begin, whichever occurs earlier. Refer to Section 5.2.7.1 for an explanation of O&M responsibilities.
2.2.12 ECM Project Schedule
A detailed project schedule (in Primavera) will be issued to the Government following contract award.
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3.0 ENVIRONMENTAL IMPACT OVERVIEW
By utilizing on and off site biomass sources (rather than coal and fuel oil) to produce steam and energy, the proposed ECMs will provide a positive impact the environment. However, since both ECMs introduce new equipment and structures onto the site/area, assessments and permits are necessary in order to comply with the applicable local, state, and federal requirements. The positive impacts and benefits of the project are highlighted in Section 3.1. Section 3.2 describes the environmental permitting required by the SCDHEC and other required environmental documents.
3.1 Overview of Environmental Benefits
    The proposed plants will decrease the overall air emissions rates for 1) particulate matter (PM) by more than 400 tons a year, 2) nitrogen oxides (NOx) by more than 2,500 tons a year, and 3) Sulfur Dioxide (SOx) by more than 3,500 tons a year. This will result in a positive impact to the air quality of the local area.
 
    Both ECMs will reduce energy consumption by eliminating over 6 miles of steam distribution lines (3.5 miles for ECM 1 and 2.5 miles for ECM 2). The reduced steam distribution pipe will decrease fuel consumption by at least 10% from reduction of in-line steam losses.
 
    The proposed cogeneration facility will decrease the amount of river water currently drawn from the Savannah River by over 1,412,000 kgal per year. This is especially significant as the level of the Savannah River is low and this project will support efforts to protect the water level.
 
    By replacing fossil fuels with a renewable energy fuel source, green house gas emissions will be reduced by at least 100,000 tons a year significantly decreasing the carbon footprint of the SRS.
 
    Although cogeneration facility and heating plants are not practical feasible buildings for Leadership in Energy and Environmental Design (LEED) certifications, both ECMs will incorporate sustainable design methods and incorporate energy efficient technologies into the design.
3.2 Overview of Environmental Permitting & Assessment
Since the proposed projects will be located at a new site and/or require the installation of new equipment there will be new emission sources for air, water, and waste water. The resulting emissions require environmental permits through the Environmental Protection Agency (EPA), SCDHEC, and SRS. The following table is a summary of the permits required for the project, the status of the permit, and the expected issuance of the permit. Each of these is further described in the paragraphs below. The schedule and proposal are based on the dates in the table; significant deviation of these dates could potentially delay construction. Ameresco will have responsibility for maintaining compliance with the permits through the construction period and the contract performance period.
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Table 3.1: Environmental Permits & Documents
             
        Completion Date/ Expected    
Permit/Document       Issuance    
(responsible for permit)   Status   (responsible for approval)   Schedule Impact
Site Use Permit (M&O)
  Site Use Permit approved in October 2007, revision will be submitted to include river water routing, outfall routing and electrical feeder routing.   Initial Site Use Permit Approved, Revision approved in June 2008. (SRS)   Required for Construction & Operation
 
           
Power Services Utilization
Permit(s) (Ameresco)
  PSUP to be submitted upon approval of IFC drawings.   Approval by end of 2009 (M&O)   Approval before
operation
 
           
Site Clearance Permit (M&O)
      Approval by SRS   Approval before start of construction work.
 
           
Environmental Assessment
(Ameresco/DOE SRS)
  Finalizing Draft, currently
out for public comment
  Issuance of Findings of No Significant Impact (FONSI) received in July 2008   Prior to process discharge to outfall (operation of plant)
 
           
Construction Air Permit
(Ameresco)
  Submitted in February 2008 to SCDHEC   Approval received in November 2008 (SCDHEC)   Required before Construction Start or Issue of Notice to Start Construction by Government
 
           
Operating Air Permit
(Ameresco)
  To be submitted 180 days after plant commissioning   (SCDHEC)   Required within 180 days of plant commissioning
 
           
NPDES 2D Permit (National
Pollutant Discharge
Elimination System)
(Ameresco/M&O)
  Resubmitted April 11, 2008 to M&O to submit to SCDHEC as modification to site permit   Draft permit issued in March of 2009 (SCDHEC) with June 2009 being likely the permit issue date   Prior to process discharge to outfall (operation of plant)
 
           
401 Water Quality
Certification (Ameresco)
  This permit application is submitted simultaneously with the Section 404 permit,   Expected 120 days from submittal of permit (SCDHEC)   Prior to operation of plant
 
           
Wetlands Section 404 Permit (Ameresco/M&O)
  To be submitted by June 2009   Expected 120 days from submittal of permit (US Army Corps of Engineers)   Prior to operation of plant
 
           
SC R.19-450 Construction in Navigable Waters Permit (Ameresco)
  This permit application is submitted simultaneously with the Section 404 permit   Expected 120 days from submittal of permit (SCDHEC)   Prior to operation of plant
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Table 3.1: Environmental Permits & Documents
             
Permit/Document       Completion Date/ Expected Issuance    
(responsible for permit)   Status   (responsible for approval)   Schedule Impact
Industrial Wastewater Treatment Permit for oil separator, neutralization tank and for retention pond (Ameresco)
  To be submitted following
the NPDES permit
modification approval
  Expected by April of 2010 (SCDHEC)   Prior to operation of plant
 
           
Notice of Intent for Storm Water Discharges from Large & Small Construction Activities (Ameresco)
  To be submitted by June 2009   M&O ESS Review &
Approval within 30
  Prior to construction of start of any site work activities
 
           
Storm Water Pollution
Prevention Plan Including
Soil & Erosion Control
(Ameresco)
  To be submitted with NOI
for Storm water Discharges
from Large/Small
Construction Activities
  See Above   Prior to construction of start of any site work activities
 
           
Grading Permit Application
(Ameresco)
  To be submitted with NOI
for Storm water Discharges
from Large/Small
Construction Activities
  M&O ESS approval expected within 30 days   Prior to construction of start of any site work activities
 
           
Construction Permit for
Domestic Water Tie-in,
Permit 1970
(Ameresco)
  To be submitted by December
2009
  M&O ESS approval expected within 30 days (M&O ESS acting authority)   Prior to construction of water tie-in & inspection/approval required prior to operation of new line
 
           
Construction Permit for
Sanitary Sewer
Connection, Permit 1970
(Ameresco)
  To be submitted by December
2009
  M&O ESS approval expected within 30 days (M&O ESS acting authority)   Prior to construction of sanitary sewer tie-in
Additional information is provided below for major permits and for the NEPA compliance.
Construction & Operating Air Permit
The equipment in both ECMs are permitted under one new construction air permit and will be under the Ameresco permit rather than site permit. Ameresco will be responsible for the air permit and for future air permit renewals throughout the contract term. The following table shows the potential air emissions
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of the proposed facility for the criteria air pollutants at expected load and at plant capacity. Annual potential air emissions are typically calculated based on the potential to emit, which is defined as the emissions for continuous operation at maximum system capacity. The maximum capacity would be if the boilers are operated at the full load of 120,000 lbs/hr for 8,760 hours. The controlled emission rates are based on vendor supplied data for the technology proposed in previous section.
Table 3.2: Annual Emissions Summary for Biomass Cogeneration Facility
         
        Annual Potential Emissions
    Controlled Emission Rate   Actual/Capacity
Pollutant   [lb/MBtu]   [tons/yr]
Nitrogen Oxides
  0.15 (with SCNR)   227/295
Carbon Monoxide
  0.13   137/195
Volatile Organic Compounds (VOCs)
  0.15   26/31
Particulate Matter Total
  0.023   35/42
Particulate Matter 10
  0.0203   31/37
Sulfur Dioxides
  0.025/0.2 with BDF fuel   46/143
Table 3.3: Annual Emissions Summary for K&L Heating Plants
         
    Controlled Emission Rate   Annual Potential Emissions
Pollutant   [lb/MBtu]   [tons/yr]
Nitrogen Oxides
  0.219   15
Carbon Monoxide
  0.6   25
VOCs
  0.0128     1
Particulate Matter Total
  0.2 (with multiclone)     9
Particulate Matter 10
  0.119(with multiclone)     6
Sulfur Dioxides
  0.025     1
The construction air permit was issued in November of this year (2008).
NPDES Permit
The proposed outfall for ECM 1 will be included as part of the SRS NPDES Permit. The modification to site permit was submitted to the site for approval this past month; it is expected to be incorporated into the Site permit by March 2009. For ECM 2, the K Area boiler blowdown will discharge into the K Area Ash Basin, as opposed to being discharged to an NPDES outfall. The NPDES outfall L-07 was modified to include boiler blowdown discharges for the L Area Biomass Heating Plant. As part of the Memorandum of Understanding/Memorandum of Agreement (MOU/MOA) between Ameresco and M&O Contractor, language will be incorporated to require Ameresco to retain responsibility for compliance of the cogeneration facility outfall and for the K and L Area heating plant effluents.
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Storm Water Management Permit
The storm water management prevention plan is currently being developed. Once this plan is submitted, the permit application will be submitted to the M&O Contractor staff for approval. It is expected it will be approved within 30 days of submittal.
NEPA
Under the National Environmental Policy Act (NEPA), any modification to a federal facility or site requires determination of the environmental impact of the proposed change or new process. This requires issuance of a CATEX (categorical exclusion), development of an environmental assessment (EA) to determine finding of no significant impact (FONSI), or development of an environmental impact statement. During the DES phase, the EA was developed to include both proposed ECMs. The document has been placed for public review. The FONSI was issued in July of 2008.
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Ameresco Federal Solutions
Page 57
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
4.0 ECM PERFORMANCE MEASUREMENT
4.1 Overview of Proposed Annual Savings
Implementation of the proposed ECMs will result in an estimated annual savings of approximately $34 million. Savings estimates are detailed in DO Schedule 4 in Section 6.0.
4.2 M&V Plan Executive Summary
Measurement and Verification (M&V) options include A, B, C, and D as detailed in M&V Guidelines of the International Performance Measurement and Verification Protocol (IPMVP).
Table 4.1: M&V Plan Summary
             
ECM No.   ECM Description   M&V Option Used*   Summary of M&V Plan
ECM 1
  Biomass Cogeneration
Facility
  B   Equipment and system performance factors continuously measured. Steam produced from the boilers will be measured and totaled for each performance period year. Fuel Usage will be recorded. Power exported to the site will also be measured and recorded to determine annual green power export.
 
ECM 2
  K & L Area Heating Plants   B   Equipment and system performance factors continuously measured. Steam produced from the boilers will be measured and totaled for each performance period year.
 
*   M&V options include A, B, C, and D. Guidelines include M&V Guidelines: Measurement & Verification for Federal Energy Projects, Version 2.2; and International Performance Measurement & Verification Protocol (IPMVP), Volume I, March 2002, available at www.eere.energy.gov/femp/financing/superespcs_mvresources.cfm.
Annually, Ameresco will complete an M&V report for the project following a visit to the site and an analysis of system performance. During the annual site visit, Ameresco staff will collect the monthly performance/operational data, determine the actual fuel use and costs, and then provide report of the output of each of the sites. Further, monthly reports will be made available to SRS which include total steam production from each system and fuel usage. Monthly reports will also include electrical production parameters in addition to steam.
As stated in the individual ECM description sections, annual savings will be based on the avoided baseline energy and operations and maintenance costs for the existing plants. Therefore, the annual savings amount is pre-determined for each year of the contract term and will only change with annual escalation or a mutually agreed upon baseline adjustment, as the existing plants will no longer operate once the new biomass plants become operational. The annual avoided baseline energy and operations and
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Revised Final Proposal — May 11, 2009
Ameresco Federal Solutions
Page 58
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
maintenance costs for the existing plants are deemed to have been met upon acceptance of the ECMs by the Government.
Annual performance requirements are satisfied if, for ECM 1 the ASG is met, and if for ECM 2 each of the heating plants is operated during the heating season as required to meet the Availability Guarantee.
If Ameresco is able to produce more steam than the ASG in any given year from the cogeneration plant, the Government may receive such additional steam for power generation or for thermal use. If the Government requires and Ameresco is able to produce more than 33,300 klbs in any given year from the total of both the K and L Area heating plants, the Government may receive such excess steam for additional thermal use. To the extent the actual steam production exceeds the ASG, the Government will compensate Ameresco for the additional fuel consumption as proposed pursuant to Section 1.3.1.2.
4.3 Whole Project Data / Global Assumptions
4.3.1 Risk and Responsibility
Ameresco will be responsible for project construction including the installation, testing, and commissioning of the equipment to deliver a complete and usable facility. Subsequent to construction, Ameresco will be responsible for ongoing operations and maintenance of the equipment installed under ECM 1 and ECM 2. Additionally, Ameresco will provide annual M&V reconciliation services and an annual M&V report which will include documentation of infrastructure and material condition, and a summary of equipment performance for the previous performance period.
The risk and responsibility of the Measurement and Verification activities for this project are addressed in the Risk/Responsibility Matrix in Section 5.4 of this proposal.
4.3.2 Energy, Water, and Operations and Maintenance (O&M) Rate Data
Utility Rates
The energy costs (rates) used to develop the baseline annual cost for ECMs 1 and 2 were provided by SRS based on historical costs. Annual savings were calculated using the current unit cost and for coal and fuel oil and the baseline consumption data as described in Sections 1.2.7 and 2.2.7. Post-ECM implementation non fuel utility costs required for operation of the cogeneration facility and of the heating plants were factored into the savings at the following previously agreed upon unit costs as shown in the following table:
Table 4.2: Utility Cost for ECM (Post)
     
Utility   Unit Costs
Electricity   $0.093 / kWh
River Water   $0.69 / k-gallon
Domestic Water   $9.42 / k-gallon
Sanitary Waste Treatment   $7.27 / k-gallon
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Revised Final Proposal – May 11, 2009   Biomass Cogeneration Facility and Heating Plants
Ameresco Federal Solutions   Savannah River Site
Page 59   Contract DE-AM36-02NT41457
Performance Period Rate Adjustment Factors
For both ECMs, the annual energy rates used for savings calculations were adjusted using the latest escalation factors available from the 2008 National Institute of Standards & Technology (NIST). The applicable NIST escalation rates are shown in Table 4.3 below. O&M cost savings and the performance period O&M cost use an annual escalation factor of 3%.
Table 4.3: NIST Escalation Rates
                                 
                    NIST Fuel Oil    
    NIST Electrical   NIST Coal Escalation   Escalation   O&M Escalation
Year   Escalation Rates   Rates   Rates   Rates
2012
    [**]       [**]       [**]       [**]  
2013
    [**]       [**]       [**]       [**]  
2014
    [**]       [**]       [**]       [**]  
2015
    [**]       [**]       [**]       [**]  
2016
    [**]       [**]       [**]       [**]  
2017
    [**]       [**]       [**]       [**]  
2018
    [**]       [**]       [**]       [**]  
2019
    [**]       [**]       [**]       [**]  
2020
    [**]       [**]       [**]       [**]  
2021
    [**]       [**]       [**]       [**]  
2022
    [**]       [**]       [**]       [**]  
2023
    [**]       [**]       [**]       [**]  
2024
    [**]       [**]       [**]       [**]  
2025
    [**]       [**]       [**]       [**]  
2026
    [**]       [**]       [**]       [**]  
2027
    [**]       [**]       [**]       [**]  
2028
    [**]       [**]       [**]       [**]  
2029
    [**]       [**]       [**]       [**]  
2030
    [**]       [**]       [**]       [**]  
4.3.3 Schedule & Reporting for Verification Activities
The modified BAMF Super Energy Savings Performance Contract (ESPC) requires Ameresco to submit to the Government a post-installation report, and thereafter, an annual M&V report documenting equipment performance. Ameresco will follow the Federal Energy Management Program (FEMP) guidelines in generating these reports. The post-installation report will be submitted to the Government within 60 days following notification of an ECM’s substantial completion and beneficial use as given by
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Revised Final Proposal – May 11, 2009   Biomass Cogeneration Facility and Heating Plants
Ameresco Federal Solutions   Savannah River Site
Page 60   Contract DE-AM36-02NT41457
Ameresco. The performance period report will be submitted each year within 120 days following the anniversary date of the ECMs substantial completion date.
4.3.4 Status of Utility Company Incentives
There are no known incentives through the utility company for any of the ECMs in this proposal.
4.4 ECM-Specific M&V Plan and Savings Calculation Methods
4.4.1 Overview of ECM Specific M&V Plans
A specific M&V plan based on DOE FEMP Guidelines and the IPMVP for Measurement and Verification activities during the term of the contract is described for both ECMs in the following paragraphs.
4.4.1.1 ECM 1: Biomass Cogeneration Facility
M&V Overview
Option B – ECM Isolation will be used for verification of the performance of ECM 1. Option B focuses [**] of this ECM. [**], the performance criteria are satisfied. Annual M&V activities will include [**]. The M&V report will include [**]. The report will also identify the [**]. Further, the M&V report will also include documentation showing [**].
4.4.1.2 ECM 2: Biomass Heating Plants for K& L Areas
M&V Overview
Option B will be used for [**] of ECM 2. Option B focuses on [**]. Annual M&V activities will include an [**]. The M&V report will include [**] to the K and L Areas.
4.4.2 Energy and Water Baseline Development
Refer to the summaries of savings calculations in Sections 1.7 and 2.7 of this proposal.
4.4.3 Proposed Energy & Water Savings Calculations and Methodology
Refer to the summaries of savings calculation in Sections 1.7 and 2.7 of this proposal.
4.4.4 Operations and Maintenance Cost Savings
The K Area plant is operated by SRS personnel and the D Area plant operations are subcontracted by the M&O Contractor to a subsidiary company. Both ECMs will result in the shutdown of an existing plant and eliminate the operation and maintenance expenses required for these sites. Therefore, SRS will realize an annual savings of $[**] of O&M costs for ECM 1 and $[**] of O&M costs for ECM 2 during the first year of the contract performance period. The O&M cost savings have been escalated at a previously agreed upon rate of [**] % per year the contract term.
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Revised Final Proposal – May 11, 2009   Biomass Cogeneration Facility and Heating Plants
Ameresco Federal Solutions   Savannah River Site
Page 61   Contract DE-AM36-02NT41457
5.0 Management Approach
5.1 Integrated Management Review Team (IMRT)
Ameresco’s Initial Proposal recommended establishing an Integrated Management Review Team (IMRT) made up of senior managers from both the Government and Ameresco. While there have been frequent meetings, conference calls, and project reviews, it is strongly recommended that the IMRT be activated (in some form) immediately following contract award. As we progress with finalizing the engineering details and begin mobilizing for construction, the IMRT will be a valuable asset for promptly resolving any serious challenges that may arise and ensuring that SRS executive level managers are fully cognizant of project status at all times. It is further recommended the IMRT be chaired by the Director of the Infrastructure Support & Oversight Division or his designee. The primary mission of the IMRT will be to assure that appropriate management personnel from each organization are aware of the project status, informed of key milestones, and if necessary, involved in securing project approvals.
It is recommended that IMRT membership consists of key personnel from each of the four organizations participating in the project – DOE SRS, DOE Headquarters, the site M&O contractor staff, and Ameresco. A proposed IMRT organizational chart, designating team member organizations, is included as Figure 5.1. The IMRT should be established immediately and convene at least quarterly throughout the implementation and operations phases to assure senior management is informed, issues resolved, and decisions are rendered timely.
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Revised Final Proposal – May 11, 2009   Biomass Cogeneration Facility and Heating Plants
Ameresco Federal Solutions   Savannah River Site
Page 62   Contract DE-AM36-02NT41457
Figure 5.1: Integrated Management Review Team
(FLOW CHART)
5.2 Ameresco Management Approach
Ameresco will be responsible for the design, construction, and operation of both ECMs as included in this proposal. This includes the responsibility for the management of design, quality control, safety, construction, and operation. Ameresco’s management approach is outlined into following sections and includes the key strategies listed below:
    Design in accordance with applicable industry codes and design standards for industrial heating plants and power plants (Refer to Appendix D for list of standards) and in accordance with the electrical standards, fire protection standards and stacking lighting standards provided by Government.
 
    Design documents will be issued to the Government for review and final concurrence intermittently throughout the first year of the construction period.
 
    Acceptance of changes to the approved design requested by the government is at the discretion of Ameresco.
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Revised Final Proposal – May 11, 2009   Biomass Cogeneration Facility and Heating Plants
Ameresco Federal Solutions   Savannah River Site
Page 63   Contract DE-AM36-02NT41457
    Ameresco is the responsible authority for the job sites of the proposed ECMs. This includes authority for site management, safety enforcement, document control, quality control, receipt and acceptance of project deliveries, and construction procurement.
 
    Ameresco will be responsible for document control management including review and approval of all construction submittals. Ameresco will make electronic copies of major construction submittals available to government representatives upon request.
Project Implementation Phase (Construction)
Ameresco’s approach to managing the implementation (construction phase) of the proposed measures will be to assign a fully competent management staff at the construction site and give them the resources and authority to complete our contract obligations safely, timely, and in a professional manner. Each member of the on-site management team, headed by the Site Manager, will have the authority to make project decisions commensurate with their position. Key members of the site project management team include the Site Manager who will also be the Senior Construction Manager, Project Construction Manager (engineering subcontractor representative), Job Superintendent, Site Safety Manager, and Project Documentation Manager. We are currently recruiting, interviewing, and identifying personnel for most site management positions. However, the Site Safety Manager was identified early in the DES phase and has been involved with the project for some time. Mr. Clinton Sandmel will manage the safety program during the construction phase and has interacted with the SRS Safety Office in completing the project safety analyses and plans, as well as overseeing the safety efforts of the geotechnical subcontractor. He is an experienced safety manager and also has experience managing construction safety programs at DOE installations. Mr. Sandmel and other members of the project management team will be relocated (if not already in the local area) to the Aiken/Augusta area for the 30 month construction period mitigating travel and per diem expenses.
Construction subcontractors are being recruited and interviewed from the local area as well as on a regional and national basis. Ameresco will attempt to maximize the use of local contractor firms in an effort to support the local economy and mitigate mobilization and travel costs associated with using subcontractors from outside the local area. Of course, the construction subcontractors will be key to successful project implementation, and qualifications and price are both considerations in subcontractor selection. Each subcontractor will provide a project foreman and safety and quality control personnel. A detailed plan for completing the implementation phase is included in Section 5.2.6 below.
The site project team will have all the resources necessary to ensure project success available, including the support of corporate resources from anywhere within the Ameresco organization from anywhere in North America beginning with the Ameresco corporate staff. While most construction and project administration activities will be accomplished by the onsite staff, contract administration, accounting, subcontract administration, and project legal counsel will be self-performed by division or corporate staff. Technical oversight of engineering, construction management, and safety will also be accomplished by the corporate resources.
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Revised Final Proposal – May 11, 2009   Biomass Cogeneration Facility and Heating Plants
Ameresco Federal Solutions   Savannah River Site
Page 64   Contract DE-AM36-02NT41457
Operations Phase (Contract Performance Period Services)
Once construction is complete and the Government accepts the project as operational and the Contract Performance Period begins, the Ameresco staff will shift from implementation to operations using primarily an onsite staff of Ameresco managers, technicians, and support personnel supplemented as necessary by subcontractors and other personnel from within Ameresco’s corporate resources. The cogeneration facility will operate, and be staffed, 24 hours a days, 7 days a week, 365 days a year while the K and L Area plants, although not staffed, will operate 24 hours a day, 7 days a week during the winter heating season.
The Site Operations Manager will lead all facets of ECM operations. This person has not been determined at this time; however, it is anticipated they will be in place (at the project location) well before testing and commissioning begins. Key members of the operations staff will be the Plant Manager, Safety/Environmental Manager, Fuel Procurement Manager, and the Office Manager. Although we continue to recruit, and have interested candidates, none of the operations staff managers have been identified at this time. Also, maintenance personnel and plant operators currently working at the D Area plant will be given an opportunity to join the Ameresco team at the new cogeneration facility. All site operations and maintenance personnel will reside in the local community eliminating travel and per diem expenses. Detailed plans for operating the cogeneration facility and heating plants are included in Section 5.2.7 below.
To the maximum extent practical, project implementation and subsequent plant operations will be performed under the watchful eye of the skilled and experienced leadership of the onsite management team; however, the onsite project team will have the full support and backing of additional corporate resources as necessary.
5.2.1 Ameresco Corporate Management Team
Ameresco’s corporate management team from the ESCO Selection Interview, Initial Proposal, and Detailed Energy Survey remains intact and will continue to direct, facilitate, and coordinate Ameresco’s activities into the construction and subsequent operational phase of the biomass ESPC. Safety and Risk Management have already been added to the corporate team and other additions, including the Site Manager and Site Operations Manager, will be added at the appropriate time. Mr. Keith Derrington, Vice President and General Manager will continue as the senior corporate executive ultimately responsible for assuring success of Ameresco’s Savannah River activities.
An organizational chart depicting the composition of the Ameresco project team is included as Figure 5.2.
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Revised Final Proposal – May 11, 2009   Biomass Cogeneration Facility and Heating Plants
Ameresco Federal Solutions   Savannah River Site
Page 65   Contract DE-AM36-02NT41457
Figure 5.2: Ameresco’s SRS Biomass Project Team
(FLOW CHART)
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Revised Final Proposal – May 11, 2009   Biomass Cogeneration Facility and Heting Plants
Ameresco Federal Solutions   Savannah River Site
Page 66   Contract DE-AM36-02NT41457
5.2.2 Program Manager
Mr. Joe Price will continue as Program Manager, although much of the interaction and interface that he previously facilitated with the DOE and M&O staffs will be transferred to the Site Manager during construction and ultimately to the Site Operations Manager once the ECMs become operational. Mr. Price reports to Mr. Derrington and has overall responsibility for Ameresco’s contract performance and client relationships at SRS. The Program Manager will also lead Ameresco’s representation to the IMRT, most likely through the implementation phase before passing that responsibility to the permanent Site Operations Manager, although no decision has been made on that at this time.
5.2.3 Engineering
Ms. Nicole Bulgarino will continue as Ameresco’s Lead Project Engineer for the cogeneration facility and the heating plants and will represent the engineering and environmental activities at the IMRT. Ms. Bulgarino is responsible for project engineering and design, as well as the subsequent construction and performance period services. Responsibility for performance period services including equipment performance issues and annual M&V activities will also fall under purview of the Engineering Team but will be accomplished by the site operations staff.
5.2.4 Business Operations
Mr. James Koulovatos, Ameresco’s Director of Finance, leads the offices within the business operations group. Responsibilities of those offices to support the cogeneration facility and heating plant projects include accounting, contracting, financing, etc. Pending contract award, Mr. Koulovatos’ staff will manage the development of competitive financing bid packages, work with 3rd party lenders to secure financing for the program, and prepare the final DO Schedules and Termination Liability Schedule once financing is secured and the interest rate is locked. Contractual activities include day to day contract administration functions and accounting will maintain invoicing and accounts receivables ledgers.
5.2.5 Safety and Risk Management
Mr. Kenneth Gross, Ameresco’s Director of Safety and Risk Management, has overall responsibility for the company’s safety program. Site or project safety personnel will report directly to Mr. Gross who has been involved with the development of the Worker Health and Safety Plan (WSHP) to ensure compliance with 10 CRF 851 requirements.
5.2.5.1 Site Safety Management
The Site Safety Manager (SSM) will report to the Director of Safety & Risk Management and is charged with ensuring the safety of the entire job site. The SSM, Mr. Clinton Sandmel, participated in development of the WSHP and the associated Job Hazard Analyses (JHA). The SSM is charged with ensuring that contractor and subcontractor personnel compliance with all applicable safety regulations. In carrying out site safety duties, the SSM will conduct safety (toolbox) meetings and inspections and complete the required periodic reports. The SSM will immediately report unsafe conditions and safety
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Revised Final Proposal – May 11, 2009   Biomass Cogeneration Facility and Heating Plants
Ameresco Federal Solutions   Savannah River Site
Page 67   Contract DE-AM36-02NT41457
incidents to the DOE Facility Representatives and the Ameresco Site Manager, Director of Safety and Risk Management, and the SRS Program Manager.
5.2.6 Construction
As Director of Construction, Mr. Bo Harkness oversees all construction activities within the federal business unit. The Site Manager, who reports to Mr. Harkness, will be charged with the day-to-day site management responsibilities during the project implementation phase. Mr. Harkness will work hand-in-hand with the Program Manager and Lead Engineer to ensure quality construction completed on schedule and on budget. The Site Manager will also be the on-site point of contact for SRS/ M&O personnel during the construction phase.
5.2.6.1 Subcontract Management
Onsite construction work will be subcontracted to companies from all parts of the country. The Director of Construction and Subcontract Administrator will manage all subcontracts, while the project Site Manager and project Job Superintendent will execute and oversee the subcontracts, having authority to schedule, inspect, and accept subcontractor work. The Subcontract Administrator or Director of Construction will respond to any financial or contract management issues. Invoicing and payments to subcontractors will be handled through standard accounting procedures and using American Institute of Architects (AIA) contract formats and forms.
5.2.6.2 Construction Management
The Site Manager will be charged with the day-to-day site management responsibilities during the project construction phase and is tasked with overall responsibility for job site activities. The Site Manager will also be the on-site point of contact for DOE Facility Representatives and other SRS/ M&O personnel during the construction phase. Assisted by other Construction Managers and Job Superintendent personnel, the Site Manager will lead all aspects of project construction including scheduling, coordination, construction, commissioning, and contract closeout with the strictest adherence to safety, quality, and cost control procedures.
Project Quality Control (QC) is the responsibility of everyone involved in project activities; however, ultimate responsibility for the Ameresco QC program rests with the Director of Construction. Those responsibilities are delegated to the site Quality Control Manager (QCM) who is tasked to oversee project specific QC activities. The Site Manager or Job Superintendent may be delegated as the site QCM overseeing the QC activities of all QC personnel, Ameresco and subcontractors, or a dedicated QCM may be assigned to the project team reporting to the Site Manager or Job Superintendent.
The site QCM is responsible for individual project quality control. The QCM maintains the Project Submittal, Testing, and Inspection Logs. The QCM will ensure that project documents (submittals, shop drawings, reports, etc.) are complete, accurate, and processed in a timely manner. The QCM is also charged with ensuring testing and inspections are conducted properly and in a manner that will insure
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Revised Final Proposal – May 11, 2009   Biomass Cogeneration Facility and Heating Plants
Ameresco Federal Solutions   Savannah River Site
Page 68   Contract DE-AM36-02NT41457
accuracy. If necessary, the QCM will contract with specialty/professional testing companies (i.e. concrete tests and welding x-rays).
Ameresco employs the standard Army Corp of Engineers three-phase quality control process that includes the preparatory phase, initial phase, and follow-up phase. The preparatory phase is performed prior to each definable work feature. Actions such as reviewing the drawings and specifications, checking submittal status, and examining the work area, including a hazard analysis, are done at this time. The initial phase is performed at the beginning of each definable work feature. Preliminary work is inspected to insure compliance with the contract, establish the level of workmanship, and ensure compliance with the safety plan. The follow-up phase is ongoing during performance of work to ensure compliance with contract requirements, perform testing, and ensure correction of deficiencies.
5.2.7 Site Operations
Once the ECMs are accepted by the government the project will transition to the site operations phases, which will continue for the remainder of the delivery order performance term. It is anticipated the cogeneration facility will be staffed with 20 people whose scope of responsibilities will include the Biomass Cogeneration Facility and the K and L Area heating plants.
Ameresco intends to have a Site Operations Manager that will oversee the total operation from fuel procurement and delivery to plant operations and maintenance. The Site Operations Manager has not yet been identified; however, we have already received inquiries and resumes from interested parties.
Ameresco will use reasonable diligence to provide a regular and uninterrupted supply of steam (100% reliability) to the government-owned distribution systems, but shall not be liable for any damages, losses, costs, or expenses to the government for failure, suspension, diminution, or other variations of service occasioned by or in consequence of any cause beyond the control of Ameresco, including but not limited to acts or omissions of the Government and its agents and contractors, force majeure conditions e.g. acts of the public enemy, acts of God, fires, floods, earthquakes, etc., or failure or breakdown of the Government-owned distribution system or end-user facilities.
5.2.7.1 Operations and Maintenance Responsibilities
Ameresco will perform the following operations and maintenance of the equipment and facilities installed within the Biomass Cogeneration Facility under ECM 1 and for the heating plants installed in the K and L Areas under ECM 2 for the duration of the contract performance period.
    Equipment, instrumentation and control systems installed at the Biomass Cogeneration Facility
 
    Equipment, instrumentation and control systems installed at the heating plants
 
    Buildings and Infrastructures installed at the Biomass Cogeneration Facility Site
 
    Building and Infrastructure installed at the K Area Heating Plant Site
 
    Building and Infrastructure installed at the L Area Heating Plant Site
 
    Utilities within the Facility and the Heating Plant (as defined in Table 1.2 and Table 2.2)
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Revised Final Proposal – May 11, 2009   Biomass Cogeneration Facility and Heating Plants
Ameresco Federal Solutions   Savannah River Site
Page 69   Contract DE-AM36-02NT41457
    Access drives and parking lot at the Cogeneration Facility
 
    Maintenance of Old Burma Road
 
    The existing boiler water treatment equipment and shed at the K Area
 
    The existing air compressor at the K Area
The Government, and/or its M&O Contractor will retain responsibility for operating and maintaining the following items:
    Utility interconnections as defined in Table 1.2 and Table 2.2
 
    Existing utility distribution systems
 
    All roads except for facility access roads and the reconstructed Old Burma Road
 
    New pump system installed at the River Pump House
 
    F Area Substation
 
    New D Area electrical feeder
 
    L Area capacitors
 
    All other existing site infrastructure and systems
The operations and maintenance expenses include the annual costs of labor (Ameresco costs and service contractor costs from major equipment suppliers) to operate and maintain the plant for both ECMs and operating costs including chemical costs, fuel oil cost, ash disposal costs, and other consumables. The operations and maintenance costs are shown on Schedule DO-3 as performance period expenses.
Operations Overview
The operation of the new plants will be lead by the Ameresco Site Operations Manager or Site Manager. The Site Manager will oversee operations and maintenance activities to ensure the following occur:
    Operate the facility to meet thermal demand of the Savannah River Site in compliance with applicable local, state and federal permits and regulations.
 
    Provide Quality Control for biomass deliveries.
 
    Provide a safe work environment for workers and visitors.
 
    Perform preventive maintenance in accordance with manufacturer recommendations.
 
    Perform major service requirements in accordance with manufacturer recommendations.
 
    Maintain professional and positive working relationship with Savannah River Site personnel, SCDHEC, and surrounding neighbors and community.
 
    Provide reports as required for M&V activities to meet plant performance guarantees.
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Revised Final Proposal – May 11, 2009   Biomass Cogeneration Facility and Heating Plants
Ameresco Federal Solutions   Savannah River Site
Page 70   Contract DE-AM36-02NT41457
The Site Operations Manager will work with four key personnel to attain these objectives: Safety/Environmental Manager, Office Manager, Plant Manager, and Fuel Procurement Manager.
The Safety/Environmental Manager will be responsible for developing, training, and implementing safety program requirements. This Manager will collect and maintain data necessary for permitting compliance and reporting activities, coordinate required stack testing, and continue to work with the SCDHEC to make sure the cogeneration facility and heating plants continue to operate in compliance with regulations.
The Office Manager will oversee daily administrative activities which includes overseeing system documentation, working with the accounting group for purchasing and payroll activities, preparing monthly reports for project performance, coordinating/ordering maintenance service and parts as directed by Plant Supervisor, scheduling visits and inspections with the Plant Supervisor, and general office duties.
The Fuel Procurement Manager will coordinate activities associated with fuel procurement such as fuel deliveries, inspections of fuel, fuel purchases, and recording fuel amounts on site, and will manage the fuel handling yard operators
The Plant Manager will oversee the operations and maintenance of the cogeneration facility and the heating plants. The supervisor will have a team of operators, who will operate the plants as well as maintain the system. The team will include a lead mechanic, an electrician, and other operators.
It is envisioned the cogeneration facility will be operated utilizing three 8-hour shifts of operators. A single shift operations team will include a shift leader, a skilled operator, and one or two additional operator(s). During the last shift of the day the team may consist of only three people on site. There will also be a team of three people who will operate the fuel handing yard. This will include moving fuel piles, accepting fuel deliveries, and delivering biomass to the K and L Areas
The following diagram (Figure 5.3) shows the proposed cogeneration facility staffing for operation of the cogeneration facility and the heating plants.
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Revised Final Proposal – May 11, 2009   Biomass Cogeneration Facility and Heating Plants
Ameresco Federal Solutions   Savannah River Site
Page 71   Contract DE-AM36-02NT41457
Figure 5.3: Proposed Operations Staffing
[**]
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Revised Final Proposal – May 11, 2009   Biomass Cogeneration Facility and Heating Plants
Ameresco Federal Solutions   Savannah River Site
Page 72   Contract DE-AM36-02NT41457
Maintenance Overview
Ameresco will perform the following:
    Operations including materials and consumables for the cogeneration facility and heating plants, such as costs for the chemicals, urea, diesel fuel, fuel oil, turbine filter, lube oil, and ash disposal.
 
    Preventive maintenance includes change out of parts, boiler inspection, boiler cleaning, turbine oil/filter changes, DA tank inspection, pump servicing, grinder and hogger inspection, instrumentation calibration, engine testing, HVAC servicing, building upkeep, Old Burma Road repair, and other service as recommended by equipment suppliers.
 
    Unscheduled maintenance includes cost for service and repair not planned on as part of ongoing maintenance. This mainly consists of contracted service support.
5.2.7.2 Repair & Replacement Responsibilities
The repair and replacement annual expense includes the annual costs expected for the replacement of materials such as grinder teeth, baghouse filters, sand (bed material) for both boilers, spare part inventory, and limestone replacement for SOx reduction. These costs will occur every year regardless of the age of the plant. The repair and replacement costs also include costs expected to occur for ongoing replacement and repair of boiler in bed tubes, turbine parts, motor bearings, conveyor belts, and general plant repair fund.
Repair and replacement of the equipment and systems for both ECMs as defined above includes budgeting and funding an inventory of spare parts, as well as funding and completing minor and major repairs and equipment replacements. Major repairs and replacements include boiler tubes, turbine seals, combustor refractory, combustion fans, feedwater pumps, grinders, and augers. Examples of minor replacements include minor components such as thermocouples, grinder cutters, instrumentation, motors, motor bearings, filters, chains, and auger components, etc.
5.3 ECM Training
An ongoing O&M Training and Safety Program will be a necessity and training will be provided to the personnel working at the three sites on a scheduled and recurring basis. Maintaining training and certification current and in good standing will be required of all personnel. The training program will also include training with suppliers to ensure the operators are familiar with the equipment operation and maintenance requirements.
Use or disclosure of data contained on this sheet is subject to the restriction on the first page of this proposal

 


 

Revised Final Proposal – May 11, 2009
Ameresco Federal Solutions
Page 73
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
5.4 Risk/Responsibility Matrix
The following pages contain the ESPC Contract Risk/Responsibility Matrix.
RISK/RESPONSIBILITY MATRIX
         
RESPONSIBILITY/DESCRIPTION   AMERESCO’S PROPOSED APPROACH   DOE-SR ASSESSMENT
1. FINANCIAL:
       
a. Interest rates: Neither the Contractor nor the agency has significant control over prevailing interest rates. During all phases of the project, interest rates will change with market conditions. Higher interest rates will increase project cost, financing/project term, or both. The timing of the Contract award may impact the available interest rate and project cost.
  Ameresco has included preliminary interest rate information in Schedule DO-3. The interest rate shown is indicative of the financial market at the time of this Revised Final Proposal and is provided for information purposes only.

Once locked with Ameresco’s lender, the interest rate will remain fixed for the term of the contract, thereby providing the DOE-SR with protection against increased interest charges resulting from a variable rate.
  In 6.10 of the Revised Final Proposal, the DOE-SR agrees, among other things, to not withhold, reduce, or setoff the “TOTAL DEBT SERVICE” amount on Schedule DO-3 in the event of an Ameresco default. The reason for this is to provide assurance to Ameresco’s lender that its investment is secure.

The DOE-SR expects the Ameresco to obtain the lowest possible interest rate and will competitively seek financing from several financial institutions. The DOE-SR expects, as consideration for 6.10, that Ameresco will obtain a lower interest rate than the one indicated in the Final Proposal, dated December 8, 2008.
 
b. Energy prices: Neither the Contractor nor the agency has significant control over actual energy prices. For calculating savings, the value of the saved energy may either be constant, change at a fixed inflation rate, or float with market conditions. If the value changes with the market, falling energy prices place the Contractor at risk of failing to meet cost savings guarantees. If energy prices rise, there is a small risk to the agency that energy
  The D Area plant that is being replaced by the Biomass Cogeneration Facility is fueled by coal purchased from SCE&G. Ameresco proposes to establish the pre-installation baseline for ECMs 1 and 2 based on the consumption and cost information provided by SRS and M&O Ameresco personnel. The baseline costs are escalated at 2008 published NIST rates for each year of the performance period.

The energy savings for all ECMs are calculated based
  The rates used to establish the energy baseline are different than what has been included in DOE HQ’s database, Energy Management System 4. Based on the unprecedented increases in coal costs over the previous year, the baseline costs associated with coal will come from SRS’s current one-year coal contract for the D-Area Powerhouse, which took effect on
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Revised Final Proposal — May 11, 2009
Ameresco Federal Solutions
Page 74
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
RISK/RESPONSIBILITY MATRIX
         
RESPONSIBILITY/DESCRIPTION   AMERESCO’S PROPOSED APPROACH   DOE-SR ASSESSMENT
saving goals might not be met while the financial goals are. If the value of saved energy is fixed (either constant or escalated), the agency risks making payments in excess of actual energy cost savings. Clarify how future energy costs will be treated.
  on the reduced fuel costs associated with improved system efficiencies. To determine this reduction, the following items are predetermined for establishing the pre-installation baseline: the unit cost of fuel oil and coal, and the amount of energy produced by the existing D Area and K Area plants.

The pre-installation baseline data used in this proposal consists of cost and consumption data for a 24 month period as provided by SRS and M&O personnel for ECM 1, and 5 years of data was used to develop the baseline for ECM 2. The future cost of each of these utilities has been escalated by the applicable NIST factors for each year throughout the contract term.

Ameresco proposes the DOE-SR assume responsibility for the actual unit cost of utilities (i.e. electricity, coal, water, etc.) including any escalation or de-escalation. If at any time during the term of this contract, the ECMs do not create sufficient savings on an annual basis to fund the amount due Ameresco for reasons within SRS’ control or for reasons related to changes in unit price of utilities, then SRS will pay Ameresco as agreed or renegotiate the payment schedule and term in a form mutually agreeable to both parties and Ameresco’s lender such that the outstanding balance of contract payments is fully repaid.

Ameresco proposes to assume responsibility for biomass procurement and has estimated the price of biomass based on current local market conditions escalated at [**]% per year.
  November 1, 2008. Based on market research, coal is not expected to decrease in cost based on current and world demand. In addition, SRS’s electrical rates have also increased dramatically over the last two years based on the increased costs of coal and natural gas that the Site’s electrical supplier must recoup through its electric rates that have been approved by the South Carolina Public Service Commission. These baseline rates will be escalated in accordance with NIST standards.

Throughout the performance period, Ameresco will be supplied utilities at no cost but the consumption data will be metered and supplied to the Site’s utility department to be included in calculating the true cost of generating steam and/or electricity from the new biomass plants for inclusion in Site supplied utilities.
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Revised Final Proposal — May 11, 2009
Ameresco Federal Solutions
Page 75
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
RISK/RESPONSIBILITY MATRIX
         
RESPONSIBILITY/DESCRIPTION   AMERESCO’S PROPOSED APPROACH   DOE-SR ASSESSMENT
c. Construction costs: The Contractor is responsible for determining construction costs and defining a budget. In a fixed-price design/build Contract, the agency assumes little responsibility for cost overruns. However, if construction estimates are significantly greater than originally assumed, the Contractor may find that the project or measure is no longer viable and drop it before Contract award. In any design/build Contract, the agency loses some design control. Clarify design standards and the design approval process (including changes) and how costs will be reviewed.
  A significant portion of Ameresco’s business is focused on energy engineering, design and consulting. Ameresco staff, complemented by subcontracted experts, are developing the ECM designs for this proposal. Additionally, Ameresco’s in-house construction management team has collaborated extensively with the design team, potential subcontractors, and equipment suppliers to assure project constructability, review budgeted costs, and provide insight into procurement options. Having all these functions involved throughout the DES Phase substantially lowers the risk of construction cost overruns, and ensures a realistic and balanced approach to innovation and realism in project design.

To manage the risk associated with escalating prices for construction materials and equipment, Ameresco will hold material and labor pricing set forth in Schedule DO 2 included herein through May 15, 2009. The proposal acceptance period may be extended; however, there may be changes in project pricing. The parties will share the risk of construction cost increases that occur prior to contract award; however, Ameresco will assume sole responsibility for cost increases occurring in normal market conditions after contract award as well as responsibility for managing the risks of such increases. However, should cost increases be caused by extraordinary market conditions, the parties will negotiate changes to the construction completion schedule and/or financial terms of the contract as mutually agreeable to both parties.
  Upon submittal of the Revised Final Proposal, a Cost Reasonableness Review of Ameresco’s Implementation Costs will be performed. Ameresco shall submit a breakdown of the Implementation costs with the Revised Final Proposal to allow the DOE-SR to perform the review.
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Revised Final Proposal — May 11, 2009
Ameresco Federal Solutions
Page 76
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
RISK/RESPONSIBILITY MATRIX
         
RESPONSIBILITY/DESCRIPTION   AMERESCO’S PROPOSED APPROACH   DOE-SR ASSESSMENT
 
  Design-build will be the means of project implementation, and the proposed project will be designed and constructed to meet industry and those local SRS standards identified in this proposal, and included with the contract award.

The cost of the DES as shown on the DO-2 schedule includes the following:
   
 
  [**]. Subsequent to contract award and in accordance with a delivery schedule mutually agreed upon by the DOE-SR and Ameresco, the [**]. Following resolution of any review comments, a final set of record documents will be produced and delivered to the DOE-SR.

   
 
  Once final concurrence is obtained, the design and project specifications become the basis for construction and no further equipment or materials submittals will be necessary. Should major design changes become necessary during construction, as a result of concealed or environmental conditions, customer requests, or a change in requirements, the proposed changes will be submitted for DOE-SR review.

The basic contract establishes maximums for Ameresco mark-ups for both the implementation and performance periods. Mark-ups proposed in this proposal are below the maximums allowed by the BAMF Contract. Mark-ups associated with changes resulting from concealed or environmental conditions of the project site, customer requests, or a change in contract requirements will be negotiated at the time the change is incorporated into the contract delivery order, but shall never exceed the maximum allowed by the BAMF Contract.
   
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Revised Final Proposal — May 11, 2009
Ameresco Federal Solutions
Page 77
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
RISK/RESPONSIBILITY MATRIX
         
RESPONSIBILITY/DESCRIPTION   AMERESCO’S PROPOSED APPROACH   DOE-SR ASSESSMENT
d. M&V costs: The agency assumes the financial responsibility for M&V costs directly or through the Contractor. If the agency wishes to reduce M&V cost, it may do so by accepting less rigorous M&V activities with more uncertainty in the savings estimates. Clarify how project savings are being verified (e.g. equipment performance, operational factors, energy use) and the impact on M&V costs.
  Ameresco proposes that M&V Option B – ECM Isolation be used to verify the performance of ECM 1 and ECM 2. Project performance will be continuously metered and reported to the DOE-SR on a monthly basis. The metering equipment installed for the project, in combination with the established baseline energy costs and NIST-based annual adjustments, will provide sufficient M&V of project performance without unnecessarily increasing project costs. Section 4.4 describes the M&V plan in detail.

Performance Period M&V costs are escalated annually at a fixed rate of [**]%.
  The DOE-SR concurs with the M&V approach for the project.
 
e. Non-Energy Cost Savings: The agency and the ESCO may agree that the project will include savings from recurring and/or one-time costs. This may include one-time savings from avoided expenditures for projects that were appropriated but will no longer be necessary. Including one-time cost savings before the money has been appropriated entails some risk to the agency. Recurring savings generally result from reduced O&M expenses or reduced water consumption. These O&M and water savings must be based on actual spending reductions. Clarify sources of non-energy cost savings and how they will be verified.
  Both proposed ECMs will result in the shutdown of existing DOE-SR operated plants eliminating significant O&M expenses currently incurred by SRS. The O&M cost baseline is presented for each ECM and was developed based on information, and is collaborative effort between Ameresco, SRS and M&O technical personnel.

The annual O&M savings have been escalated annually at a fixed rate of [**]%.

NOTE: There will be a significant reduction in the consumption of water taken from the Savannah River, although no cost savings related to such reduction in water usage have been included in this proposal.
  The DOE-SR has provided actual O&M costs for both the D-Area Powerhouse and the K-Area Package Boilers. The DOE-SR will review such costs included in the Revised Final Proposal and, if acceptable, provide its concurrence.
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Revised Final Proposal — May 11, 2009
Ameresco Federal Solutions
Page 78
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
RISK/RESPONSIBILITY MATRIX
         
RESPONSIBILITY/DESCRIPTION   AMERESCO’S PROPOSED APPROACH   DOE-SR ASSESSMENT
f. Delays: Both the Contractor and the agency can cause delays. Failure to implement a viable project in a timely manner costs the agency in the form of lost savings, and can add cost to the project (e.g., construction interest, remobilization). Clarify schedule and how delays will be handled.
  Ameresco will fully support the DOE-SR during the review, approval, and award of the proposed ECMs to mitigate potential delays as much as is within Ameresco’s control. Further, Ameresco will honor the pricing proposed herein through May 15, 2009; delays in contract award beyond that time may result in increased project cost and will result in project implementation delays.

Major milestones for obtaining project approvals, delivery order award, and project implementation are indentified in Table 1.7 herein. Ameresco will provide a detailed project schedule subsequent to contract award reflecting the scheduled completion date for each major element of ECM 1 and 2. The schedule will be closely monitored throughout the construction phase by Ameresco’s on-site management team as well as corporate management. Their proactive involvement will mitigate the occurrence of delays. Should a delay occur, Ameresco management will immediately develop a mitigation plan, discuss it with the DOE-SR staff, and then take the necessary actions to ensure the project remains on schedule.

Schedule Risks & Mitigation
Schedule Delays


The potential for schedule delays will be constantly monitored, and immediate and appropriate mitigation
  SRS will fully support Ameresco during the review, approval, and award of the proposed ECMs to mitigate potential delays, and award the Delivery Order on schedule. In addition, DOE and the M&O Contractor will work with Ameresco to facilitate a smooth mobilization to the Site and coordinate the interfaces for key support requirements provided by SRS. Critical interface requirements should be identified on Ameresco’s schedule to allow for adequate up front coordination.
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Revised Final Proposal — May 11, 2009
Ameresco Federal Solutions
Page 79
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
RISK/RESPONSIBILITY MATRIX
         
RESPONSIBILITY/DESCRIPTION   AMERESCO’S PROPOSED APPROACH   DOE-SR ASSESSMENT
 
  actions will be taken by Ameresco management personnel if necessary. The schedule is being structured both logically and realistically to minimize the potential for delays; however, should an unavoidable delay occur, Ameresco will work closely with DOE-SR engineers to determine the best course of action and, if necessary, a revised schedule will be developed and proposed. The primary objective of any revision will be to get the work back on track without extending the completion date.    
 
       
 
  Subcontractor Management

Ameresco has pre-qualified many firms and will continue to pre-qualify firms that may be selected as subcontractors. However, Ameresco will continue to evaluate qualifications and the firm’s current workload prior to executing any subcontracts. If manpower later becomes an issue, Ameresco will either direct the firm to hire additional personnel, hire additional subcontractors, or replace the subcontractor.

Ameresco will manage subcontractors and suppliers through close control and monitoring of all critical activities. Monitoring and controls include the following procedures: weekly progress meetings, schedule updates, and materials management plan.
   
 
       
 
  Late Delivery of Materials/Equipment 

In order to protect against late delivery of material or equipment and keep the project on schedule, Ameresco will implement and maintain a materials management plan and constantly monitor production and delivery dates.
   
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Revised Final Proposal — May 11, 2009
Ameresco Federal Solutions
Page 80
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
RISK/RESPONSIBILITY MATRIX
         
RESPONSIBILITY/DESCRIPTION   AMERESCO’S PROPOSED APPROACH   DOE-SR ASSESSMENT
g. Major changes in facility: The agency (or Congress) controls major changes in facility use, including closure. Clarify responsibilities in the event of a premature facility closure, loss of funding, or other major change.
  The SRS is not considered a candidate for closure at any time in the foreseeable future. Based on information provided by SRS personnel, a build-up in operations is projected to continue past 2020. The electrical and steam demand are projected to change in future years, but it is assumed (almost certain) that the site will be a viable entity throughout the contract term and well beyond.

The structure of the proposed project significantly reduces risk associated with changes at the site. Ameresco will be producing steam that will provide two benefits to the DOE-SR; steam for thermal processes and electricity. Should changes at the facility result in reduced thermal requirements, Ameresco will produce more electricity. The first priority will be to satisfy the site’s steam needs. Should there be excess capacity (delta between guaranteed steam production and site steam requirements) the steam will be processed through a turbine to produce electricity. The versatility of the process to satisfy both thermal and electrical needs of the site mitigates this risk.
  The DOE-SR concurs with Ameresco’s projection of the longevity of SRS operations. If a termination were necessary, the DOE Contracting Officer and Ameresco would proceed utilizing the applicable Federal Acquisition Regulation (FAR) and Department of Energy Acquisition Regulation (DEAR) requirements.
 
       
 
  Ameresco has assessed the potential for closure of the site and considers it a minimal risk at this time. However, if SRS should close or experience a significant reduction, then Ameresco will be responsible for characterizing and quantifying the impact of the changes on the project. In a severe case, though    
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Revised Final Proposal — May 11, 2009
Ameresco Federal Solutions
Page 81
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
RISK/RESPONSIBILITY MATRIX
         
RESPONSIBILITY/DESCRIPTION   AMERESCO’S PROPOSED APPROACH   DOE-SR ASSESSMENT
 
  highly improbable, it may necessitate either a partial or full termination for convenience; however, the contract will include a Termination Liability Schedule to facilitate arriving at appropriate termination costs. If a termination becomes necessary, Ameresco would comply with the applicable Federal Acquisition Regulation (FAR) and Department of Energy Acquisition Regulation (DEAR) requirements.    
 
       
2. OPERATIONAL:
       
 
       
a. Operating hours: The agency generally has control over the operating hours. Increases and decreases in operating hours can show up as increases or decreases in “savings” depending on the M&V method (e.g. operating hours multiplied by improved efficiency of equipment vs. whole building/utility bill analysis). Clarify whether operating hours are to be measured or stipulated and what the impact will be if they change. If the operating hours are stipulated, the baseline should be carefully documented and agreed to by both parties.
  Operating hours of the proposed cogeneration facility and heating plants have been pre-determined. The operating hours of SRS facilities obtaining service from the Ameresco plants (i.e., steam and/or electricity) were also determined for purposes of establishing baseline consumption data, but will have little to no impact on the operations of the proposed ECMs unless increased operating hours contributes to the site requiring more steam than provided by the ASG.

ECM 1, the cogeneration facility (replacing existing D Area plant) shall operate 24/7 year round and ECM 2, the K and L Area plants will operate 24/7 as necessary over approximately a four month period each year to meet building heating loads. Although operating hours are pre-determined, steam delivery requirements will be both pre-determined and measured.
  The DOE-SR concurs with this approach since the ASG will not be dependent on facility operating hours. Excess steam above the customer requirements will be dispatched for electrical generation.
 
       
 
  Over the past two years, SRS’ energy consumption has been relatively consistent in conjunction with the operating hours. Therefore, the energy baseline and    
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Revised Final Proposal — May 11, 2009
Ameresco Federal Solutions
Page 82
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
RISK/RESPONSIBILITY MATRIX
         
RESPONSIBILITY/DESCRIPTION   AMERESCO’S PROPOSED APPROACH   DOE-SR ASSESSMENT
 
  guarantees assume predetermined operating hours for the term of the delivery order; however, Ameresco will guarantee an annual quantity of steam production that will not be impacted by changes to facility operating hours.    
 
       
 
  The DOE-SR will control and be responsible for its increasing or decreasing facility operating hours.    
 
       
b. Load: Equipment loads can change over time. The agency generally has control over hours of operation, conditioned floor area, intensity of use (e.g. changes in occupancy or level of automation). Changes in load can show up as increases or decreases in “savings” depending on the M&V method. Clarify whether equipment loads are to be measured or stipulated and what the impact will be if they change. If the equipment loads are stipulated, the baseline should be carefully documented and agreed to by both parties.
  The overall site steam load is expected to decrease in the out years of the contract performance period. Ameresco and DOE-SR personnel worked closely during the DES phase to construct a model of out year steam requirements to accommodate the decreases. Project performance calculations are based on load projections shown in Table 1.1, which were provided by site personnel and are assumed by Ameresco to be correct. Decreasing steam requirements will be accommodated by increasing net green power generation. Increasing steam requirements above ASG (excess production) will be accommodated up to the maximum plant capacity. Compensation for the excess steam production will be included in the annual cost adjustment.   The DOE-SR agrees with Ameresco’s proposed approach. Additional steam requested by the DOE-SR above the ASG will be compensated for at Ameresco’s incremental biomass expense with a mutually negotiated markup.
 
       
 
  It is proposed that the DOE-SR and Ameresco share the risk of increased load requirements. Ameresco will assume responsibility for providing the steam to meet increased loads up to the maximum plant capacity. However, Ameresco will be compensated for steam deliveries above the guaranteed annual production quantities as provided for by the fuel adjustment provision found in Section 1.3.1.2 of this proposal.    
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Revised Final Proposal — May 11, 2009
Ameresco Federal Solutions
Page 83
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
RISK/RESPONSIBILITY MATRIX
         
RESPONSIBILITY/DESCRIPTION   AMERESCO’S PROPOSED APPROACH   DOE-SR ASSESSMENT
c. Weather: A number of energy efficiency measures are affected by weather. Neither the Contractor nor the agency has control over the weather. Changes in weather can increase or decrease “savings” depending on the M&V method (e.g. equipment run hours multiplied by efficiency improvement vs. whole building utility bill analysis). If weather is “normalized,” actual savings could be less than payments for a given year, but will average out over the long run. Clearly specify how weather corrections will be performed.
  Neither Ameresco nor the DOE-SR has control over the weather and changes in weather can increase or decrease the amount of steam needed by SRS facilities. However, the metric for determining whether Ameresco has satisfied its performance guarantees are not weather dependent; therefore, weather corrections are not be necessary. Ameresco proposes that no weather corrections be made as neither ECM will be significantly impacted by the weather since the baseline has been developed from historical consumption data.

NOTE: Although weather could impact the amount of steam needed for heating purposes, that risk has been addressed by increased electrical generation as outlined in paragraph b above.
  The DOE-SR agrees with Ameresco’s proposed approach.
 
       
d. User participation: Many energy conservation measures require user participation to generate savings (e.g. control settings). The savings can be variable and the Contractor may be unwilling to invest in these measures. Clarify what degree of user participation is needed and utilize monitoring and training to mitigate risk. If performance is stipulated, document and review assumptions carefully and consider M & V to confirm the capacity to save (e.g. confirm that the controls are functioning properly).
  Ameresco will operate and maintain the systems proposed under both ECMs as defined in Section 5.2.7.1. The ECMs will interconnect with site utility distribution systems that will be maintained by the site M&O Contractor, as is currently the case. The DOE-SR will be the end user of the steam produced by the Ameresco plants. The Government must accept steam deliveries and the site M&O contractor must ensure utility services are available for the ECMs to be effective. The risk of either the DOE-SR not accepting steam deliveries (within the baseline amounts) or the utility systems being down over prolonged period of time is minimal.   The DOE-SR agrees with Ameresco’s proposed approach.
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Revised Final Proposal — May 11, 2009
Ameresco Federal Solutions
Page 84
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
RISK/RESPONSIBILITY MATRIX
         
RESPONSIBILITY/DESCRIPTION   AMERESCO’S PROPOSED APPROACH   DOE-SR ASSESSMENT
3. PERFORMANCE:
       
 
       
a. Equipment performance: Generally the Contractor has control over the selection of equipment and is responsible for its proper installation, commissioning, and performance. Generally the Contractor has responsibility to demonstrate that the new improvements meet expected performance levels including specified equipment capacity, standards of service, and efficiency. Clarify who is responsible for initial and long-term performance, how it will be verified, and what will be done if performance does not meet expectations.
  Ameresco will retain responsibility for the performance of the equipment throughout the term of the performance period for both ECMs as defined in Section 5.2.7.1. Ameresco has experience and is familiar with the equipment. It selected the equipment based upon efficiency, performance level, and reliability, and in conjunction with the manufacturer’s service and performance guarantees. Performance of the equipment will be reflected in the annual M&V documentation provided by Ameresco.   The DOE-SR agrees with Ameresco’s proposed approach.
 
       
b. Operations: Responsibility for operations is negotiable, and it can impact performance. Clarify responsibility for operations, the implications of equipment control, how changes in operating procedures will be handled, and how proper operations will be assured.
  Ameresco will retain operations responsibility and assumes the risks associated with ECM operations throughout the contract term as defined in Section 5.2.7.1. Proper operations will be assured by appropriate staffing levels of the plant by local Ameresco personnel and/or contracted employees.

Ameresco site management will implement and oversee plant operations to ensure equipment is operated and maintained to provide an efficient and safe operation that satisfies manufacturer and contract requirements.
  The DOE-SR agrees with the Ameresco’s proposed approach.
 
       
 
  Title to the biomass fuel will pass to the DOE-SR upon delivery to the plant site. Should the biomass fuel become damaged or destroyed due to the fault or negligence of Ameresco, then Ameresco shall bear responsibility for replacing such damaged biomass fuel.    
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Revised Final Proposal — May 11, 2009
Ameresco Federal Solutions
Page 85
  Biomass Cogeneration Facility and Heating Plants
Savannah River Site
Contract DE-AM36-02NT41457
RISK/RESPONSIBILITY MATRIX
         
RESPONSIBILITY/DESCRIPTION   AMERESCO’S PROPOSED APPROACH   DOE-SR ASSESSMENT
 
  Otherwise, DOE-SRS shall be responsible for any biomass fuel damaged or destroyed for any other reason.    
 
       
c. Preventive Maintenance: Responsibility for maintenance is negotiable, and it can impact performance. Clarify how long-term preventative maintenance will be assured, especially if the party responsible for long-term performance is not responsible for maintenance (e.g., Contractor provides maintenance checklist and reporting frequency). Clarify who is responsible for long-term preventive maintenance to maintain operational performance throughout the Contract term. Clarify what will be done if inadequate preventive maintenance impacts performance.
  Ameresco assumes responsibility for all maintenance and repairs of the equipment installed in the new facility under the contract term as defined in Section 5.2.7.1. This includes a preventative maintenance program, incidental repairs, and warranty work. Ameresco will verify performance of the maintenance on an on-going basis, with an in-depth review of the maintenance program conducted during annual performance reconciliation. The ongoing costs of operations and maintenance for the equipment is included in the performance period expenses and escalated annually at [**]% for the duration of the performance period.   The DOE-SR agrees with Ameresco’s proposed approach.
 
       
d. Equipment Repair and Replacement: Responsibility for repair and replacement of Contractor-installed equipment is negotiable; however it is often tied to project performance. Clarify who is responsible for the replacement of failed components or equipment throughout the term of the Contract. Specifically address potential impacts on performance due to equipment failure. Specify expected equipment life and warranties for all installed equipment. Discuss replacement responsibility when equipment life is shorter than the term of the Contract.
  Ameresco will assume responsibility for the repair and/or replacement of failed components and equipment throughout the term of the contract as specified in Section 5.2.7.2 except for such damaged or destroyed ECM equipment for which the DOE-SR self-insures pursuant to Section 6.5 of the Revised Final Proposal.   As part of the Performance Period expenses, Ameresco has included, and is clearly responsible for, all Repair & Replacement functions. Only Ameresco-installed equipment that is damaged or destroyed for reasons beyond the control and without the fault or negligence of Ameresco, may result in consideration as noted in Section 6.5 of the Revised Final Proposal.
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Revised Final Proposal — May 11, 2009   Biomass Cogeneration Facility and Heating Plants
Ameresco Federal Solutions   Savannah River Site
Page 86   Contract DE-AM36-02NT41457
6.0   PROPOSAL PRICING INFORMATION
Schedules DO-1 through DO-5(a) (the “DO—Schedules”) presented at the end of this section provide the economic and financial details of the proposed project based on SRS making annual debt service payments at the beginning of each performance period and monthly performance period expenses.
In addition to price quotes and estimates provided by suppliers and vendors, price estimates were developed using Ameresco software cost models, historical project cost data, and cost estimating guides (e.g. RS Means, etc.).
6.1   Interest Rate
Ameresco’s locked interest rate of 8.19% as shown on Schedule DO-3 is based on Moody’s AA Corporate Index, as published by Bloomberg on May 12, 2009, of 6.14% plus a spread above the Index of 2.05%.
6.2   Finance Procurement Price
The finance procurement price set forth on Schedule DO-3 consists of the following three components and will fluctuate until the project interest rate mentioned above is fixed:
  a)   Performance/Payment Bond — Performance and payment bonds are a requirement of the Contract. The performance bond is purchased by Ameresco to protect the Government and the third party lender against Ameresco non-performance during the implementation period. The performance bond applies only to the installation portion of the work under this contract and does not apply in any way to energy savings guarantees, payments or maintenance provisions, except that the performance bond shall guarantee that the installation will be free of defective materials and workmanship for a period of twelve (12) months following completion and acceptance of the work. Ameresco’s lender will require the execution a Dual-Obligee Rider naming such lender as an additional or dual-obligee under the performance bond.
 
  b)   Interest During Construction (“IDC”) — This cost represents the interest costs accruing to Ameresco during the proposed implementation period. Ameresco’s DO-Schedules assume a traditional upfront funding of the Total Amount Financed into an interest bearing escrow account upon award of the contract, Ameresco will be charged interest on the amount funded at the project interest rate and will net these interest charges with interest earnings on the escrow account’s remaining principal balance. Ameresco will receive progress payments
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Revised Final Proposal — May 11, 2009   Biomass Cogeneration Facility and Heating Plants
Ameresco Federal Solutions   Savannah River Site
Page 87   Contract DE-AM36-02NT41457
      for implementation expenses from the escrow account. In addition to the traditional escrow funding approach, Ameresco is exploring a delayed funding structure in lieu of the traditional escrow funding structure proposed herein. Under the delayed funding structure, Ameresco’s lender will advance progress payments to Ameresco periodically during the construction period. Interest will begin to accrue only on the progress payments made to Ameresco and accrued interest will negatively amortize the outstanding balance. Ameresco believes if it is able to utilize the delayed funding structure it will provide significant savings on interest during construction.
  c)   Finance Processing Fee — The finance processing fee represents expenses Ameresco will incur to finance the contract. Typically, this fee is a combination of the following applicable expenses: legal fees, origination fees, fees for rating agencies, rate lock fees to fix the interest rate during the implementation period, trustee or fiscal agent fees, and any rate buydown costs.
6.3   Sales Tax
Ameresco intends to pursue a sales tax exemption with the South Carolina Department of Revenue (“SCDOR”) with respect to the ECM equipment pursuant to S.C. Code Ann. section 12-36-2120(29). This exemption provides the following sales are exempt from sales tax: “tangible personal property purchased by persons under a written contract with the federal government when the contract necessitating the purchase provides that title and possession of the property is to transfer from the contractor to the federal government at the time of purchase or after the time of purchase. This exemption also applies to purchases of tangible personal property which becomes part of real or personal property owned by the federal government or, as provided in the written contract, is to transfer to the federal government. This exemption does not apply to purchases of tangible personal property used or consumed by the purchaser.” The SCDOR also issued South Carolina Revenue Ruling No. 04-9, which outlines the requirements for contractors to qualify for the exemption contained in S.C. Code Ann. section 12-36-2120(29). For the contractor’s purchases to be exempt from sales tax, the contractor must have a written contract with the federal government which provides that title and possession of the property is to transfer from the contractor to the federal government at the time of purchase or after the time of purchase and such title and possession actually transfers to the federal government in accordance with the contract or the property becomes part of a real or personal property owned by the federal government or is to transfer to the federal government.
Ameresco must obtain an exemption certificate issued by the SCDOR to purchase tangible personal property exempt from sales tax. Ameresco will submit an application (S.C. Form ST-10G) together with a copy of the executed contract to obtain the required exemption certificate. Due to the fact that Ameresco will not receive an exemption certificate until after contract award is executed, Ameresco has included a sales tax reserve in its proposal in the approximate amount of $4,600,000. Should Ameresco receive an exemption certificate, Ameresco will request that its lender deposit the sales tax reserve into the PPEF upon the Government’s acceptance of the ECMs. Ameresco proposes to wait until acceptance
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Revised Final Proposal — May 11, 2009   Biomass Cogeneration Facility and Heating Plants
Ameresco Federal Solutions   Savannah River Site
Page 88   Contract DE-AM36-02NT41457
to fund the PPEF with the sales tax reserve to avoid paying interest on such reserve during the construction period. To the extent that Ameresco is denied an exemption certificate by the SCDOR, Ameresco will notify the Government of such determination and the sales tax reserve shall be dispersed to Ameresco by its lender via progress payments.
6.4   Property Tax
Title to all contractor-installed equipment associated with each ECM shall vest in the Government. Therefore, the Government is the owner of all contractor-installed equipment for property tax purposes and Ameresco has not included property taxes in this proposal. In the event the Government elects not to accept title to the contractor-installed equipment, Ameresco would need to revise this proposal to include all applicable property taxes.
6.5   Insurance
Ameresco will maintain builder’s risk insurance coverage on all contractor-installed equipment during the implementation period. Ameresco’s proposal does not include any cost related to insuring any contractor-installed equipment post-acceptance. Title to all equipment installed by Ameresco shall be vested with the Government after acceptance by the Government of the commercial operation of such ECM and the Government will self-insure all such Contractor-installed equipment throughout the Delivery Order term for the Total Amount Financed as shown on Schedule DO-3. This acceptance shall not relieve Ameresco’s responsibility for ECM performance. Ameresco will be responsible for operating and maintaining all ECMs throughout the contract term as set forth herein. If such Ameresco-installed equipment is damaged or destroyed, for reasons beyond the control and without the fault or negligence of Ameresco, the Government shall have the option to (i) terminate the Delivery Order (either in part or in whole) and hold Ameresco harmless for the savings and performance associated with the damaged or destroyed equipment for the remainder of the term, (ii) pay Ameresco, by separate contract action to repair or replace the damaged or destroyed equipment and continue making its scheduled payments to Ameresco, or (iii) repair or replace the damaged or destroyed equipment at its cost and continue making its scheduled payments to the Ameresco. If the repair/replacement work is performed by any party other than Ameresco, a commissioning of the repair/replacement work must be conducted, witnessed and approved by both the Government and Ameresco. This requirement is necessary for Ameresco to continue to guarantee the related energy savings as set herein.
6.6   Payment/Term
Ameresco will submit its initial invoice for payment with respect to an ECM upon the earlier of (i) completion of the ECM and acceptance by the Government or (ii) when the Government has beneficial use of such ECM. Following the initial invoice submittals by Ameresco, Ameresco will invoice the Government on or before the first day of April each year thereafter such that the Government’s annual
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Revised Final Proposal — May 11, 2009   Biomass Cogeneration Facility and Heating Plants
Ameresco Federal Solutions   Savannah River Site
Page 89   Contract DE-AM36-02NT41457
Debt Service payment will be paid annually on or before the first day of May. Performance Period Expenses will be paid monthly on the first day of each month in an amount equal to one-twelfth (1/12) of the Total Performance Period Expenses due for each Performance Period. Submission of or revisions to the Post Installation Completion Report, As-Built drawings, or O&M Manuals, or delays in providing training that do not affect savings, shall not delay acceptance with respect to the commencement of making payments to Ameresco, but will be noted as punch list items and addressed by Ameresco in a timely manner. Ameresco is proposing annual debt service payments be made at the beginning of each performance period because it reduces the principal balance the fastest and results in the lowest interest expense to the Government. The annual debt service period will occur and payment will be due prior to Ameresco’s submission of the applicable year’s Annual M&V Report. However, any shortfall in Annual Savings set forth in such report will be adjusted from future performance period payments as provided in Section G.4 of the BAMF Contract. Payments from the government will be applied first to prompt payment interest, then to performance period expenses, then to interest and then to principal.
6.7   Cancellation/Termination/Buyout
Schedule DO-5(a) — Termination Liability Schedule is provided with this proposal in addition to Schedule DO-5. Schedule DO-5(a) provides an amortization of the project’s outstanding principal balance along with the calculation used to determine the Termination Liability and is provided for use in the event that the Government prepays or terminates the project for its convenience. Schedule DO-5(a) represents Ameresco and its third-party lender’s recovery of allowable contract expenditures, and associated profit, incurred as of the date of termination or buyout and assumes all payments are received by Ameresco (or its assignee) when due. The column titled “Outstanding Principal Balance” represents Ameresco’s recovery of costs associated with the installation work in connection with implementing the ECMs. The column titled “Lender’s Termination Premium” over the original project cost represents the third-party lender’s immediate recovery of administrative, placement, legal, and investment banking expenses associated with the original financing as well as its termination. These financing costs are not represented in the project cost as a line item, but are built into the interest rate spread and recovered over time as debt service. If Schedule DO-5(a) only reflected the project costs, Ameresco’s third party lender would fail to recover their allowable contract expenses and associated profit in the event of a termination or buyout. The lender’s termination premium is a cost recovery alternative that the third-party lender must rely on in the event of a termination or buyout in lieu of amortizing fees and costs over time.
In the event of a termination for convenience in whole, cancellation in whole, or prepayment in whole, the Government acknowledges and agrees that it shall be obligated to pay the specific Termination Liability amount set forth on Schedule DO-5(a) for the month corresponding to the effective date the Government intends to make payment to Ameresco. In the event of a termination for convenience in part, cancellation in part or reduction in requirements in part, the Government acknowledges and agrees that Ameresco shall apply any such payment made by the Government to the Outstanding Balance and Lender’s Termination Premium amounts set forth on Schedule DO-5(a) corresponding to the effective date of such payment in part. Following the application of such payment in part, the Government will enter into a contract
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Revised Final Proposal — May 11, 2009   Biomass Cogeneration Facility and Heating Plants
Ameresco Federal Solutions   Savannah River Site
Page 90   Contract DE-AM36-02NT41457
modification to incorporate a revised Schedule DO-5(a) reflecting, at the Government’s option, a reduction in the total number of payments or reduction in amount per payment over the remaining term such that, in either case, the Outstanding Principal Balance is fully repaid. In the event of a prepayment or buydown, the Government acknowledges and agrees that Ameresco shall apply any such payment made by the Government as set forth in Section 6.8 below.
Any termination for convenience of the Performance Period portion of the contract shall be handled in accordance with FAR 52.249-2.
6.8   Prepayments/Buydowns
In the event the Government chooses to make prepayments or buydowns during the performance period of the contract term, with the purpose of reducing the outstanding unamortized balance of the financing for the ECMs, and thereby reducing the price/payments and overall term of the contract, the following method shall be used to apply those prepayments to the delivery order price:
The prepayment amount will be placed by the third-party financier into an account to be identified in the prepayment modification to the delivery order, to be reinvested at a fixed rate, and at which rate the amount shall earn and accrue interest, for the shorter of (a) the remaining term of the delivery order, as revised by delivery order modification of the award Schedules at the time of any prepayment; or (b) the period up to the date the delivery order may be terminated by the Government. Determination of the fixed rate at which the prepayment amount shall earn and accrue interest shall be by mutual agreement of the parties based on then-current reinvestment rates. The sum of (i) the prepayment amount and (ii) projected accrued interest shall be the total amount applied against the remaining delivery order payments, as reflected in the task order, in reverse order of the scheduled contract payments. Thereby, the scheduled term of the contract shall be reduced, and the payment schedule revised and overall price reduced, as reflected in a revised schedule incorporated into the contract by modification. A revised schedule will also be provided and incorporated into the delivery order award by modification. This process may be repeated to incorporate subsequent prepayments.
6.9   Protection of Financier’s Interest
All cure or show-cause notices or notices of default will be mailed by the Government to Ameresco’s assignee, as set forth in the Notice of Assignment delivered to the Contracting Officer, at least 15 days in advance of any termination of this contract for default. The Government will consider requests by such assignee to extend the applicable cure or show-cause response period so long as such cure is being diligently pursued.
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Revised Final Proposal — May 11, 2009   Biomass Cogeneration Facility and Heating Plants
Ameresco Federal Solutions   Savannah River Site
Page 91   Contract DE-AM36-02NT41457
6.10   Security Interest in ECM Equipment
During the implementation period and prior to title to the ECM equipment vesting in the Government, the Government agrees to subordinate any security interest it may have in any Ameresco installed ECM equipment to Ameresco’s lender, and grants such lender a first priority security interest in the ECM equipment. Upon the Government’s acceptance of each ECM, Ameresco will cause its lender to release its security interest in such ECM equipment and to deliver evidence of such to the Contracting Officer.
6.11   Assignment of Claims
Pursuant to DOE FAR subpart 932.803 Policies, Ameresco proposes to finance the ECMs through an assignment of the Government’s payments under the contract awarded in connection with this proposal in compliance with FAR 52.232-23 Assignment of Claims, Alternate I (Apr 1984). Ameresco or its lender will remit to the Government the required Notice of Assignment together with the Instrument of Assignment. The Government agrees to acknowledge receipt of such notice and incorporate such assignment in a contract modification.
6.12   Title to and Responsibility for Contractor-Installed Property
The Government acknowledges that, with respect to the ECMs, the Government is obligated to accept delivery thereof pursuant to the contract upon satisfaction of the conditions thereto. After acceptance by the Government of the installed ECMs and vesting of title with the Government to the equipment installed by Ameresco, the Government agrees that there shall be no withholding, reduction or setoff by the Government in the payment of the specific amounts as set forth in the row labeled “TOTAL DEBT SERVICE” on Schedule DO-3 as a result of (i) any termination for default, in whole or in part, pursuant to FAR Clause 52.249-8 (Default-Fixed Price Supply and Service) by the Government of the Performance Period (as defined in Modification M005 to Contract No. DE-AM36-02NT41457, Section J, Attachment 1) portion of the contract, or (ii) any costs assessed against Ameresco pursuant to FAR Clause 52.246-4 (Inspection of Services-Fixed Price).
In the event of any termination for default, in whole, of the Performance Period portion of the contract, the Government may elect to, but in no way is obligated or required to, buyout the Ameresco installed equipment by paying the sum of the columns labeled “Outstanding Principal Balance” and “Lender’s Termination Premium” on Schedule DO-5(a) for the month corresponding to the effective date of such termination (the “Buyout Amount”). In the event of such an election by the Government, the Government agrees that, with respect to the Buyout Amount, there shall be no withholding, reduction or setoff by the Government in the payment thereof.
In the event of any termination for default, in whole or in part, of the Performance Period portion of the contract pursuant to FAR Clause 52.249-8 (Default-Fixed Price Supply and Service) or assessment of costs against Ameresco pursuant to FAR Clause 52.246-4 (Inspection of Services-Fixed Price), the
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Revised Final Proposal — May 11, 2009   Biomass Cogeneration Facility and Heating Plants
Ameresco Federal Solutions   Savannah River Site
Page 92   Contract DE-AM36-02NT41457
Government reserves the right to exercise any and all of its rights and remedies against Ameresco (including any and all rights to recover excess reprocurement costs that the Government may incur as a result of Ameresco’s default and/or Ameresco’s failure to perform the Performance Period portion of the contract), except for the withholding, reduction or setoff restrictions expressly provided for herein.
6.13   Construction Milestones
The Government agrees, from time to time during the implementation period, to provide its written acknowledgement of the satisfaction of certain predetermined construction milestones set forth on Table 1.7 Project Milestones. Any such acknowledgement by the Government will not constitute acceptance of the ECM on the part of the Government and will not require the Government to commence making payments until such ECM is operational as described herein.
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DO
SCHEDULES

 


 

SCHEDULE DO-1 (Final)
Guaranteed Annual Cost Savings and Annual Contractor Payments
If selected, the Contractor shall complete the installation of all proposed ECMs not later than 34 months after delivery award.
                         
Delivery Order No.:   Contractor Name:     Project Site:  
DE-AT09-09SR22572 dated 15-May-2009   Ameresco Federal Solutions     Savannah River Site  
    (a)     (b)     (c)  
    Initial Estimated     Proposed Guaranteed     Annual  
Performance   Annual     Annual     Contractor  
Period   Cost Savings     Cost Savings     Payments  
Year   $     $     $  
ZERO (6)
  [**]       [**]     [**]  
ONE
  [**]       [**]     [**]  
TWO
  [**]       [**]     [**]  
THREE
  [**]       [**]     [**]  
FOUR
  [**]       [**]     [**]  
FIVE
  [**]       [**]     [**]  
SIX
  [**]       [**]     [**]  
SEVEN
  [**]       [**]     [**]  
EIGHT
  [**]       [**]     [**]  
NINE
  [**]       [**]     [**]  
TEN
  [**]       [**]     [**]  
ELEVEN
  [**]       [**]     [**]  
TWELVE
  [**]       [**]     [**]  
THIRTEEN
  [**]       [**]     [**]  
FOURTEEN
  [**]       [**]     [**]  
FIFTEEN
  [**]       [**]     [**]  
SIXTEEN
  [**]       [**]     [**]  
SEVENTEEN
  [**]       [**]     [**]  
EIGHTEEN
  [**]       [**]     [**]  
NINETEEN
  [**]       [**]     [**]  
TWENTY
  [**]       [**]     [**]  
TWENTY-ONE
  [**]       [**]     [**]  
TWENTY-TWO
  [**]       [**]     [**]  
TWENTY-THREE
  [**]       [**]     [**]  
TWENTY-FOUR
  [**]       [**]     [**]  
TWENTY-FIVE
  [**]       [**]     [**]  
 
                 
TOTALS
  [**]       [**]     [**]  
 
                 
 
(1)   The first year DES Proposed Annual Cost Savings shall reflect technical proposal & engineering estimates as presented in DO-4. above represents a 16 month period (January 2012 to April 2013) and is calculated by dividing the DO-4 savings by 12 months and then multiplying such amount by 16 months.
 
(2)   The Guaranteed Annual Cost Savings are based on the site specific M&V plan.
 
(3)   The Annual Contractor Payments represent the deliver order price and should be supported by information submitted in Schedules DO-2 and DO-3.
 
(4)   The Guaranteed Annual Cost Savings must exceed the Annual Contractor Payments for each performance period year.
 
(5)   Provider escalation rates applied to DES Proposed Annual Cost Savings in column (a) as follows:
 
  (a)   Energy Rates — Table S-3; Water Rates — [**]%.
 
  (b)   Energy Related O&M Savings — [**]%.
 
(6)   Year Zero Contractor Payment includes $300,000 deposit into the PPEF.

 


 

     
SCHEDULE DO-2
IMPLEMENTATION PRICE BY ECM
                                     
Project Site:   Delivery Order No.:       Contractor Name:
Savannah River Site   DE-AT09-09SR22572 dated 15-May-2009       Ameresco Federal Solutions
C.2.2                        
Technology               (a)   (b)   (c) = (a) x (1+b)
Category   ECM       ECM   Total Implementation   Mark-up    
Letter   No.   ECM Description - Title   Size   Expense   %   Implementation Price
 
                            $  
 
      DES/Proposal Development Costs       [**]       [**] %   $ 1,164,800  
r
  1   D Area Biomass Replacement Plant   240,000 pph; 20 MW   [**]       [**] %   $ 137,500,762  
r
  2   K&L Area Biomass Replacement Plant   (2) 10,500 pph   [**]       [**] %   $ 10,507,004  
 
              [**]             $ 149,172,566  
Bonded Amount ($)
  $                                             149,172,566                          
 
 Notes:    
 
1)   Total Implementation Expenses shall include direct costs as specified in the Contract or in negotiated B Schedules.
 
2)   Contractor shall propose bonded amount representing the basis of establishing performance and payment bonds per Section H in IDIQ.
 
3)   Proposed bonded amount is assumed to include markup applied to ECM expenses above, unless otherwise specified by Contractor.
 
4)   Bonded Amount ($) negotiated will be used to establish Performance and Payment Bond sums per Section H.

 


 

     
SCHEDULE DO-3
Performance Period Cash Flow (PAGE 3)
 
Project Site:      Savannah River Site
Delivery Order No:      DE-AT09-09SR22572 dated 15-May-2009
Contractor:      Ameresco Federal Solutions
Delivery Order No:      SRS BAMF Revised Final Proposal 11-May-2009
         
Project Capitalization
       
Total Implementation Price (DO-2 Total)
  $ 149,172,566  
Finance Procurement Price ($)
  $ 25,003,318  
Add: Financed PPEF Deposit (See Note 5)
  $ 9,200,000  
Less: Pre-Performance Period Payments
  $  
TOTAL AMOUNT FINANCED
  $ 183,375,883  
         
Applicable Financial
       
Index
  Moody’s AA Corporate
Term (Years)
    12.0  
Index Rate
    6.14 %
Added Premium
    2.05 %
Project Interest Rate
    8.19 %
     
Issue Date:
  May 12, 2009
Source:
  Bloomberg
 
Effective Through:
  N/A
                                                                                                                                                                                 
    0   1   2   3   4   5   6   7   8   9   10   11   12   13   14   15   16   17   18   19   20    
Term     19 years           Year 1   Year 2   Year 3   Year 4   Year 5   Year 6   Year 7   Year 8   Year 9   Year 10   Year 11   Year 12   Year 13   Year 14   Year 15   Year 16   Year 17   Year 18   Year 19   Year 20   Totals
Annual Cash Flow (Performance Period)
                                                                                       
Debt Service:
                                                                                       
Interest ($)
  [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]  
Principal Repayment ($)
  [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]  
TOTAL DEBT SERVICE(a)
  [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]  
 
                                                                                       
Performance Period Expenses:
                                                                                       
Management/Administration ($)
  [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]  
Maintenance & Operation ($)
  [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]  
Repair and Replacement ($)
  [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]  
Measurement and Verification ($)
  [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]  
Permits and Licenses ($)
  [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]  
Insurance ($)
  [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]  
Property Taxes ($)
  [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]  
Other — Biomass Fuel ($)
  [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]  
SUBTOTAL Performance Period Expenses
  [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]  
Performance Period Mark-Up — All PPEs other than Biomass at 28%
  [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]  
Performance Period Mark-Up (%) — Biomass at 22%
  [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]  
Performance Period Mark-Up ($)
  [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]  
TOTAL PERFORMANCE PERIOD EXPENSES (b)
  [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]  
PPEF Deposit — ECM-2 from Year 0 Savings(c)
  [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]  
Total Amount Contractor Payments(a) + (b) + (c)
  [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]     [**]  
 
Notes:    
 
1)   Performance Period Expenses shall include only direct costs.
 
2)   Contractor shall specify escalation rate applied to performance period expenses or other sources, in accordance with the IDIQ contract.
 
3)   If applicable, contractor shall specify escalation rate applied to performance period expenses: Applicable escalation is [**]%, with the exception of Biomass which is [**]%
 
4)   Year 0 savings will be applied to Performance Period Expenses for ECM-2 and the PPEF deposit shown in Year 0 above.
 
5)   The PPEF amount represents the aggreagate of the following amounts to financed and deposited into the PPEF:
         
a) Sales tax reserve (see Section 6.3 of the Final Proposal)
  $ 4,613,228  
b) PPEF Funding Amount upon Acceptance
  $ 4,586,772  
 
PPEF Deposit from financing proceeds
  $ 9,200,000  
 

 


 

     
SCHEDULE DO-4
First Year Energy and Cost Savings by ECM, Technology Category and Delivery Order
                                                                                                                                                 
                                                    Contractor: Ameresco Federal Solutions   Project Square Footage (KSF):        
            Delivery Order No.: DE-AT09-09SR22572 dated 15-May-2009                                   (f)   (g)   (h)                   (k)   N/A
Project Site:           (a)   (b)(1)   (b)(2)   (c)(1)   (c)(2)   (d)(1)   (d)(2)   (e)(1)   (e)(2)   b1+d1+e1   b2+c2+d2+e2   Other Energy-                   g+h+j           (m)
C.2.2           Project or   Electric   Electric   Electric   Electric   Fuel   Fuel   Oher   Other   Total   Total   Related and   (i)   (j)   Estimated   (l)   m=l/k
Tech   Savannah River Site   ECM Energy   Energy   Energy   Demand   Demand   Oil   Oil   Energy   Energy   Energy   Energy   O&M   Water   Water   Annual   Implementation   Simple
Category   ECM       Baseline   Savings   Savings   Savings   Savings   Savings   Savings   Savings   Savings   Savings   Cost Savings   Cost Savings   Savings   Savings   Cost Savings   Price   Payback
Letter   No.   Description   (MBTU/yr)   (kWh/yr)   ($/yr)   (kW/yr)   ($/yr)   (Mbtu/yr)   ($/yr)   (Mbtu/yr)   ($/yr)   (Mbtu/yr)   ($/yr)   ($/yr)   (k-gal/yr)   ($/yr)   ($/yr)   $   (yrs)
q
      DES/Proposal Development Costs                   $           $           $           $           $     $                 $     $ 1,164,800       N/A  
r
  1   D Area Biomass Replacement Plant     3,978,008       (55,415,523 )   $ (3,941,118 )         $           $       3,978,008     $ 24,994,446       3,788,874     $ 21,053,328     $ 12,482,882       (460,671 )     (355,013 )   $ 33,181,197     $ 137,500,762       4.14  
r
  2   K&L Area Biomass Replacement Plant     42,884       (345,600 )   $ (35,355 )         $       42,884     $ 593,563           $       41,704     $ 558,208     $ 638,970       (4,007 )     (25,917 )   $ 1,171,260     $ 10,507,004       8.97  
 
                                                                                                                                             
 
                                                                                                                                               
                                                                                                             
TOTAL
                    (55,761,123 )   $ (3,976,474 )         $       42,884     $ 593,563       3,978,008     $ 24,994,446       3,830,579     $ 21,611,535     $ 13,121,852       (464,678 )   $ (380,930 )   $ 34,352,457     $ 149,172,566       4.34  
                                                                                                             
 
Notes:    
 
1)   Project Square Footage (in 1000 SF) — Include only building square footage affected by installed ECMs in project.
 
2)   For column (a) insert estimated energy baseline by ECM and total project in MBTU based on M&V approach in technical proposal and DES.
 
3)   Energy conversion factors for MBTU: MBTU=10^6 BTU; Electricity — 3413 BTU/kWh; Natural Gas — 1031 BTU/100CF; Coal — 12,290 BTU/lb; #2 Oil — 138,700 BTU/gal.
 
4)   “Other” energy savings in (e)(1) and (e)(2) represent coal savings.

 


 

SCHEDULE DO-5
Annual Cancellation Ceiling Schedule
                 
Project Site:   Delivery Order No.:   Contractor Name:
Savannah River Site   DE-AT09-09SR22572 dated 15-May-2009   Ameresco Federal Solutions
    Outstanding Capital   Total Cancellation
    Investment   Ceiling
    $   $
Installation Acceptance
  $ 183,375,883     $ 192,544,677  
End of Year One
  $ 173,872,203     $ 182,565,813  
End of Year Two
  $ 169,186,687     $ 177,646,021  
End of Year Three
  $ 163,908,479     $ 172,103,903  
End of Year Four
  $ 157,863,143     $ 165,756,300  
End of Year Five
  $ 150,837,374     $ 158,379,243  
End of Year Six
  $ 142,344,922     $ 149,462,168  
End of Year Seven
  $ 132,506,118     $ 139,131,424  
End of Year Eight
  $ 121,479,677     $ 127,553,661  
End of Year Nine
  $ 108,734,351     $ 114,171,068  
End of Year Ten
  $ 92,487,417     $ 97,111,788  
End of Year Eleven
  $ 74,132,095     $ 77,838,700  
End of Year Twelve
  $ 53,511,954     $ 56,187,552  
End of Year Thirteen
  $ 30,483,995     $ 32,008,195  
End of Year Fourteen
  $ 4,662,037     $ 4,895,139  
End of Year Fifteen
  $     $  
End of Year Sixteen
  $     $  
End of Year Seventeen
  $     $  
End of Year Eighteen
  $     $  
End of Year Nineteen
  $     $  
End of Year Twenty
  $     $  
End of Year Twenty-one
  $     $  
End of Year Twenty-two
  $     $  
End of Year Twenty-three
  $     $  
End of Year Twenty-four
  $     $  
End of Year Twenty-five
  $     $  
 
(1)   Outstanding Capital Investment — Remaining Unamortized principal on Total Amount Financed.
 
(2)   In the event of contract cancellation or termination for convenience the Termination Liability amount set forth on the Termination Liability Schedule will apply for amounts due Contractor’s lender as set forth in Section 6.7 of Contractor’s Proposal.
 
(3)   The Contractor has attached a monthly Financing Termination Liability Schedule which must correspond to the annual amounts submitted above in each year for Outstanding Capital Investment.

 


 

     
SCHEDULE DO-5(a) — TERMINATION LIABILITY SCHEDULE
         
Termination Premium
    5.0 %
Service Period Payments
    467,331,605  
PPEF Deposit — ECMs Savings During Construction
    300,000  
Interest Payments
    144,023,365  
Principal Payments
    183,375,883  
Total Payment
    795,030,853  
                                                                             
Project Site: Savannah River Site   Delivery Order No.: DE-AT09-09SR22572 dated 15-May-2009   Contractor Name: Ameresco Federal Solutions
Beginning of   Payment Due                                                           Lender’s Termination    
Month   Date   Government Payment   Service Period Expenses   PPEF Deposit   Debt Service Payment   Interest   Principal   Outstanding Principal Balance   Premium   Termination Liability
0
  06/01/09                                         183,375,883       9,168,794       192,544,677  
1
  07/01/09                                         183,375,883       9,168,794       192,544,677  
2
  08/01/09                                         183,375,883       9,168,794       192,544,677  
3
  09/01/09                                         183,375,883       9,168,794       192,544,677  
4
  10/01/09                                         183,375,883       9,168,794       192,544,677  
5
  11/01/09                                         183,375,883       9,168,794       192,544,677  
6
  12/01/09                                         183,375,883       9,168,794       192,544,677  
7
  01/01/10                                         183,375,883       9,168,794       192,544,677  
8
  02/01/10                                         183,375,883       9,168,794       192,544,677  
9
  03/01/10                                         183,375,883       9,168,794       192,544,677  
10
  04/01/10                                         183,375,883       9,168,794       192,544,677  
11
  05/01/10                                         183,375,883       9,168,794       192,544,677  
12
  06/01/10                                         183,375,883       9,168,794       192,544,677  
13
  07/01/10                                         183,375,883       9,168,794       192,544,677  
14
  08/01/10                                         183,375,883       9,168,794       192,544,677  
15
  09/01/10                                         183,375,883       9,168,794       192,544,677  
16
  10/01/10                                         183,375,883       9,168,794       192,544,677  
17
  11/01/10                                         183,375,883       9,168,794       192,544,677  
18
  12/01/10                                         183,375,883       9,168,794       192,544,677  
19
  01/01/11                                         183,375,883       9,168,794       192,544,677  
20
  02/01/11     141,914       91,914       50,000                         183,375,883       9,168,794       192,544,677  
21
  03/01/11     70,957       45,957       25,000                         183,375,883       9,168,794       192,544,677  
22
  04/01/11     70,957       45,957       25,000                         183,375,883       9,168,794       192,544,677  
23
  05/01/11     70,957       45,957       25,000                         183,375,883       9,168,794       192,544,677  
24
  06/01/11     70,957       45,957       25,000                         183,375,883       9,168,794       192,544,677  
25
  07/01/11     70,957       45,957       25,000                         183,375,883       9,168,794       192,544,677  
26
  08/01/11     70,957       45,957       25,000                         183,375,883       9,168,794       192,544,677  
27
  09/01/11     70,957       45,957       25,000                         183,375,883       9,168,794       192,544,677  
28
  10/01/11     70,957       45,957       25,000                         183,375,883       9,168,794       192,544,677  
29
  11/01/11     70,957       45,957       25,000                         183,375,883       9,168,794       192,544,677  
30
  12/01/11     70,957       45,957       25,000                         183,375,883       9,168,794       192,544,677  
31
  01/01/12                                         183,375,883       9,168,794       192,544,677  
32
  02/01/12                                         183,375,883       9,168,794       192,544,677  
33
  03/01/12                                         183,375,883       9,168,794       192,544,677  
34
  04/01/12                                         183,375,883       9,168,794       192,544,677  
35
  05/01/12     31,167,469       6,652,639             24,514,830       15,011,150       9,503,680       173,872,203       8,693,610       182,565,813  
36
  06/01/12     1,330,528       1,330,528                               173,872,203       8,693,610       182,565,813  
37
  07/01/12     1,330,528       1,330,528                               173,872,203       8,693,610       182,565,813  
38
  08/01/12     1,330,528       1,330,528                               173,872,203       8,693,610       182,565,813  
39
  09/01/12     1,330,528       1,330,528                               173,872,203       8,693,610       182,565,813  
40
  10/01/12     1,330,528       1,330,528                               173,872,203       8,693,610       182,565,813  
41
  11/01/12     1,330,528       1,330,528                               173,872,203       8,693,610       182,565,813  
42
  12/01/12     1,330,528       1,330,528                               173,872,203       8,693,610       182,565,813  
43
  01/01/13     1,330,528       1,330,528                               173,872,203       8,693,610       182,565,813  
44
  02/01/13     1,330,528       1,330,528                               173,872,203       8,693,610       182,565,813  
45
  03/01/13     1,330,528       1,330,528                               173,872,203       8,693,610       182,565,813  
46
  04/01/13     1,330,528       1,330,528                               173,872,203       8,693,610       182,565,813  
47
  05/01/13     20,307,715       1,389,020             18,918,695       14,233,179       4,685,516       169,186,687       8,459,334       177,646,021  
48
  06/01/13     1,389,020       1,389,020                               169,186,687       8,459,334       177,646,021  
49
  07/01/13     1,389,020       1,389,020                               169,186,687       8,459,334       177,646,021  
50
  08/01/13     1,389,020       1,389,020                               169,186,687       8,459,334       177,646,021  
51
  09/01/13     1,389,020       1,389,020                               169,186,687       8,459,334       177,646,021  
52
  10/01/13     1,389,020       1,389,020                               169,186,687       8,459,334       177,646,021  
53
  11/01/13     1,389,020       1,389,020                               169,186,687       8,459,334       177,646,021  
54
  12/01/13     1,389,020       1,389,020                               169,186,687       8,459,334       177,646,021  
55
  01/01/14     1,389,020       1,389,020                               169,186,687       8,459,334       177,646,021  
56
  02/01/14     1,389,020       1,389,020                               169,186,687       8,459,334       177,646,021  
57
  03/01/14     1,389,020       1,389,020                               169,186,687       8,459,334       177,646,021  
58
  04/01/14     1,389,020       1,389,020                               169,186,687       8,459,334       177,646,021  
59
  05/01/14     20,578,026       1,450,196             19,127,830       13,849,622       5,278,208       163,908,479       8,195,424       172,103,903  
60
  06/01/14     1,450,196       1,450,196                               163,908,479       8,195,424       172,103,903  
61
  07/01/14     1,450,196       1,450,196                               163,908,479       8,195,424       172,103,903  
62
  08/01/14     1,450,196       1,450,196                               163,908,479       8,195,424       172,103,903  
63
  09/01/14     1,450,196       1,450,196                               163,908,479       8,195,424       172,103,903  
64
  10/01/14     1,450,196       1,450,196                               163,908,479       8,195,424       172,103,903  
65
  11/01/14     1,450,196       1,450,196                               163,908,479       8,195,424       172,103,903  
66
  12/01/14     1,450,196       1,450,196                               163,908,479       8,195,424       172,103,903  
67
  01/01/15     1,450,196       1,450,196                               163,908,479       8,195,424       172,103,903  
68
  02/01/15     1,450,196       1,450,196                               163,908,479       8,195,424       172,103,903  
69
  03/01/15     1,450,196       1,450,196                               163,908,479       8,195,424       172,103,903  
70
  04/01/15     1,450,196       1,450,196                               163,908,479       8,195,424       172,103,903  
71
  05/01/15     20,977,066       1,514,182             19,462,884       13,417,548       6,045,336       157,863,143       7,893,157       165,756,300  
72
  06/01/15     1,514,182       1,514,182                               157,863,143       7,893,157       165,756,300  
73
  07/01/15     1,514,182       1,514,182                               157,863,143       7,893,157       165,756,300  
74
  08/01/15     1,514,182       1,514,182                               157,863,143       7,893,157       165,756,300  
75
  09/01/15     1,514,182       1,514,182                               157,863,143       7,893,157       165,756,300  
76
  10/01/15     1,514,182       1,514,182                               157,863,143       7,893,157       165,756,300  
77
  11/01/15     1,514,182       1,514,182                               157,863,143       7,893,157       165,756,300  
78
  12/01/15     1,514,182       1,514,182                               157,863,143       7,893,157       165,756,300  
79
  01/01/16     1,514,182       1,514,182                               157,863,143       7,893,157       165,756,300  
80
  02/01/16     1,514,182       1,514,182                               157,863,143       7,893,157       165,756,300  
81
  03/01/16     1,514,182       1,514,182                               157,863,143       7,893,157       165,756,300  
82
  04/01/16     1,514,182       1,514,182                               157,863,143       7,893,157       165,756,300  
     Note: Interest will accrue on the Outstanding Principal Balance mothly between each Debt Service Payment date shown above.

 


 

     
SCHEDULE DO-5(a) — TERMINATION LIABILITY SCHEDULE
         
Termination Premium
    5.0 %
Service Period Payments
    467,331,605  
PPEF Deposit — ECMs Savings During Construction
    300,000  
Interest Payments
    144,023,365  
Principal Payments
    183,375,883  
Total Payment
    795,030,853  
                                                                             
Project Site: Savannah River Site   Delivery Order No.: DE-AT09-09SR22572 dated 15-May-2009   Contractor Name: Ameresco Federal Solutions
Beginning of   Payment Due                                                           Lender’s Termination    
Month   Date   Government Payment   Service Period Expenses   PPEF Deposit   Debt Service Payment   Interest   Principal   Outstanding Principal Balance   Premium   Termination Liability
83
  05/01/16     21,529,558       1,581,111             19,948,446       12,922,677       7,025,769       150,837,374       7,541,869       158,379,243  
84
  06/01/16     1,581,111       1,581,111                               150,837,374       7,541,869       158,379,243  
85
  07/01/16     1,581,111       1,581,111                               150,837,374       7,541,869       158,379,243  
86
  08/01/16     1,581,111       1,581,111                               150,837,374       7,541,869       158,379,243  
87
  09/01/16     1,581,111       1,581,111                               150,837,374       7,541,869       158,379,243  
88
  10/01/16     1,581,111       1,581,111                               150,837,374       7,541,869       158,379,243  
89
  11/01/16     1,581,111       1,581,111                               150,837,374       7,541,869       158,379,243  
90
  12/01/16     1,581,111       1,581,111                               150,837,374       7,541,869       158,379,243  
91
  01/01/17     1,581,111       1,581,111                               150,837,374       7,541,869       158,379,243  
92
  02/01/17     1,581,111       1,581,111                               150,837,374       7,541,869       158,379,243  
93
  03/01/17     1,581,111       1,581,111                               150,837,374       7,541,869       158,379,243  
94
  04/01/17     1,581,111       1,581,111                               150,837,374       7,541,869       158,379,243  
95
  05/01/17     22,491,123       1,651,124             20,839,999       12,347,547       8,492,452       142,344,922       7,117,246       149,462,168  
96
  06/01/17     1,651,124       1,651,124                               142,344,922       7,117,246       149,462,168  
97
  07/01/17     1,651,124       1,651,124                               142,344,922       7,117,246       149,462,168  
98
  08/01/17     1,651,124       1,651,124                               142,344,922       7,117,246       149,462,168  
99
  09/01/17     1,651,124       1,651,124                               142,344,922       7,117,246       149,462,168  
100
  10/01/17     1,651,124       1,651,124                               142,344,922       7,117,246       149,462,168  
101
  11/01/17     1,651,124       1,651,124                               142,344,922       7,117,246       149,462,168  
102
  12/01/17     1,651,124       1,651,124                               142,344,922       7,117,246       149,462,168  
103
  01/01/18     1,651,124       1,651,124                               142,344,922       7,117,246       149,462,168  
104
  02/01/18     1,651,124       1,651,124                               142,344,922       7,117,246       149,462,168  
105
  03/01/18     1,651,124       1,651,124                               142,344,922       7,117,246       149,462,168  
106
  04/01/18     1,651,124       1,651,124                               142,344,922       7,117,246       149,462,168  
107
  05/01/18     23,215,526       1,724,367             21,491,160       11,652,355       9,838,805       132,506,118       6,625,306       139,131,424  
108
  06/01/18     1,724,367       1,724,367                               132,506,118       6,625,306       139,131,424  
109
  07/01/18     1,724,367       1,724,367                               132,506,118       6,625,306       139,131,424  
110
  08/01/18     1,724,367       1,724,367                               132,506,118       6,625,306       139,131,424  
111
  09/01/18     1,724,367       1,724,367                               132,506,118       6,625,306       139,131,424  
112
  10/01/18     1,724,367       1,724,367                               132,506,118       6,625,306       139,131,424  
113
  11/01/18     1,724,367       1,724,367                               132,506,118       6,625,306       139,131,424  
114
  12/01/18     1,724,367       1,724,367                               132,506,118       6,625,306       139,131,424  
115
  01/01/19     1,724,367       1,724,367                               132,506,118       6,625,306       139,131,424  
116
  02/01/19     1,724,367       1,724,367                               132,506,118       6,625,306       139,131,424  
117
  03/01/19     1,724,367       1,724,367                               132,506,118       6,625,306       139,131,424  
118
  04/01/19     1,724,367       1,724,367                               132,506,118       6,625,306       139,131,424  
119
  05/01/19     23,674,383       1,800,991             21,873,391       10,846,951       11,026,440       121,479,677       6,073,984       127,553,661  
120
  06/01/19     1,800,991       1,800,991                               121,479,677       6,073,984       127,553,661  
121
  07/01/19     1,800,991       1,800,991                               121,479,677       6,073,984       127,553,661  
122
  08/01/19     1,800,991       1,800,991                               121,479,677       6,073,984       127,553,661  
123
  09/01/19     1,800,991       1,800,991                               121,479,677       6,073,984       127,553,661  
124
  10/01/19     1,800,991       1,800,991                               121,479,677       6,073,984       127,553,661  
125
  11/01/19     1,800,991       1,800,991                               121,479,677       6,073,984       127,553,661  
126
  12/01/19     1,800,991       1,800,991                               121,479,677       6,073,984       127,553,661  
127
  01/01/20     1,800,991       1,800,991                               121,479,677       6,073,984       127,553,661  
128
  02/01/20     1,800,991       1,800,991                               121,479,677       6,073,984       127,553,661  
129
  03/01/20     1,800,991       1,800,991                               121,479,677       6,073,984       127,553,661  
130
  04/01/20     1,800,991       1,800,991                               121,479,677       6,073,984       127,553,661  
131
  05/01/20     24,570,813       1,881,160             22,689,653       9,944,326       12,745,326       108,734,351       5,436,718       114,171,068  
132
  06/01/20     1,881,160       1,881,160                               108,734,351       5,436,718       114,171,068  
133
  07/01/20     1,881,160       1,881,160                               108,734,351       5,436,718       114,171,068  
134
  08/01/20     1,881,160       1,881,160                               108,734,351       5,436,718       114,171,068  
135
  09/01/20     1,881,160       1,881,160                               108,734,351       5,436,718       114,171,068  
136
  10/01/20     1,881,160       1,881,160                               108,734,351       5,436,718       114,171,068  
137
  11/01/20     1,881,160       1,881,160                               108,734,351       5,436,718       114,171,068  
138
  12/01/20     1,881,160       1,881,160                               108,734,351       5,436,718       114,171,068  
139
  01/01/21     1,881,160       1,881,160                               108,734,351       5,436,718       114,171,068  
140
  02/01/21     1,881,160       1,881,160                               108,734,351       5,436,718       114,171,068  
141
  03/01/21     1,881,160       1,881,160                               108,734,351       5,436,718       114,171,068  
142
  04/01/21     1,881,160       1,881,160                               108,734,351       5,436,718       114,171,068  
143
  05/01/21     27,112,968       1,965,040             25,147,928       8,900,994       16,246,934       92,487,417       4,624,371       97,111,788  
144
  06/01/21     1,965,040       1,965,040                               92,487,417       4,624,371       97,111,788  
145
  07/01/21     1,965,040       1,965,040                               92,487,417       4,624,371       97,111,788  
146
  08/01/21     1,965,040<