1. Alex DeCamp Shintaro Hori Kimberly Jongsma Qian Zhang Neighborhood Geothermal for Ann Arbor

2. Framework  Visions, Goals, and Objectives  Background  Implementation Tools  Recommendations for Ann Arbor  Recommendations for Huron Highlands  Discussion

3. Vision, Goals and Objectives VGO Background Implementation Tools Geothermal for Ann Arbor Geothermal for Huron Highlands The City of Ann Arbor will facilitate and encourage environmental sustainability by utilizing geothermal energy. Huron Highlands will lead as an example of neighborhood geothermal implementation.

4. What is Geothermal? Geothermal energy system utilizes constant temperature of the earth below surface level to promote energy efficiency and reduce the operational costs of heating and cooling system. A typical residential geothermal system is made up of three components 1. Ground loop 2. Heat pump 3. Delivery system Source:http://www.matternetwork.com/2008/9/week3.cfm VGO Background Implementation Tools Geothermal for Ann Arbor Geothermal for Huron Highlands

5. Types of Loop Systems Open Loop System Closed Loop System Vertical Closed Loop System Horizontal The Slinky Method Source: http://www.informedbuilding.com/Ge othermal/Main16/Types-of- Geothermal-Ground-Loops/ Source: http://www.geothermalhelp.com/inde x.php/articles/installation/item/42- slinky-loop- construction?tmpl=component&print= 1 VGO Background Implementation Tools Geothermal for Ann Arbor Geothermal for Huron Highlands

6. Huron Highlands VGO Background Implementation Tools Geothermal for Ann Arbor Geothermal for Huron Highlands

7. Zoning Map VGO Background Implementation Tools Geothermal for Ann Arbor Geothermal for Huron Highlands

8. Community Survey 1 – Agree 5 – Disagree 1 – Concerned 4 – Not Concerned

9. VGO Background Implementation Tools Geothermal for Ann Arbor Geothermal for Huron Highlands Implementation Tools 1.Neighborhood Improvement Authority 2.Property Assessment Clean Energy 3.Other Financial Tools 4.Soil Analysis 5.Permits Required

10. Neighborhood Improvement Authority VGO Background Implementation Tools Geothermal for Ann Arbor Geothermal for Huron Highlands Donation to authorities Revenue Bonds Revenue from assets owned/leased by NIA Tax Increment Financing (TIF) Federal/State Grants Special Assessment District (SAD) NIAs are created by local municipality with residents’ support and legally authorized by the State Law. Six Financing Sources Available:

11. Property Assessed Clean Energy Financing tool used by local government to promote energy efficiency in commercial and industrial properties. Michigan authorized PACE in 2010 for Commercial and Industrial Properties Allows local government to issue bonds, notes and creates TIF districts to finance renewable energy systems. Source: http://www.landpridehort.com/ Source:http://kehongchem.en.made-in-china.com/custom- detail/EnxEJEmDQQbExmQExQndGJUQ/Factory-Building-02.html VGO Background Implementation Tools Geothermal for Ann Arbor Geothermal for Huron Highlands

12. Special Assessment District Financing large upfront cost by implementing a specific tax. Home Owners Association Establishes unified voice to represent residents to local government. Federal Tax Incentives 30% tax rebate on total geothermal system and installation costs and is available until 2016 Other Financial Tools VGO Background Implementation Tools Geothermal for Ann Arbor Geothermal for Huron Highlands http://www.foreclosurebusinessnew s.com/wp- content/uploads/2009/06/homeown ers-association.jpg http://www.climaxheating.co m/assets/images/recovery.or g_logo%5B1%5D.jpg

13. Michigan Saves Home Energy Loan A non-profit organization that offers unsecured loans from $1000 to $12,500 on energy saving improvements for qualified borrowers. Energy Star Incentives Financing Various private organizations offer incentives for the purchase of Energy Star geothermal heat pumps Non-governmental Organization Rebate Program E.g.: Great Lakes Energy offers $500 rebate for introduction of GHP system Other Financial Tools VGO Background Implementation Tools Geothermal for Ann Arbor Geothermal for Huron Highlands http://www.dteenergy.com/images/michiganSavesLarge.jpg http://www.energyvanguard.com/Portals/88935/images/ene rgy-star-cert-vert.jpg http://michigan-energy.org/images/logos/GLcolor.jpg

14. Soil Analysis VGO Background Implementation Tools Geothermal for Ann Arbor Geothermal for Huron Highlands

15. Permits Required VGO Background Implementation Tools Geothermal for Ann Arbor Geothermal for Huron Highlands

16. Geothermal For Ann Arbor Recommendations VGO Background Implementation Tools Geothermal for Ann Arbor Geothermal for Huron Highlands System Types Commercial Case by case Residential New Construction Large loop system Existing Neighborhood Individual well system

17. Geothermal For Ann Arbor Recommendations VGO Background Implementation Tools Geothermal for Ann Arbor Geothermal for Huron Highlands Finance Types Commercial Property Assessment Clean Energy Residential Neighborhood Historic Special Assessment District Non-historic Neighborhood Improvement Authority

18. SURVEY RESULTS VGO Background Implementation Tools Geothermal for Ann Arbor Geothermal for Huron Highlands 1 – Agree 5 – Disagree 1 – Concerned 4 – Not Concerned

19. Geothermal For Huron Highlands VGO Background Implementation Tools Geothermal for Ann Arbor Geothermal for Huron Highlands Large Loop System with 1 common well Individual wells and loops, installed at the same time

20. Cost Analysis Worksheet VGO Background Implementation Tools Geothermal for Ann Arbor Geothermal for Huron Highlands Geothermal For Huron Highlands Heat Exchange Pump and Installation A.Homeowner’s Financial Contribution: $3000 B.Average Household Square footage: 500 – 1000 sqft : $8000 1000 – 1500 sqft : $10,000 1500 – 2000 sqft : $12,000 2000+ sqft: $14,000 C.Loan Amount: B – A = $7000 D.Monthly Loan Payment Per $1000 = $12.13 E.Total Monthly Payment per Household: (C/1000) X D = $84.91 F.Tax Rebate: 30% X B = $3000 G.Total Equity Investment: A – F = $0.00 Drilling and Geothermal Grid H.Number of Homes with Individual Wells Drilled:15 I.Individual Wells Drilling Costs: 0 – 10 Homes: $10,500 each 10 - 20 Homes: $10,000 each 20 – 40 Homes: $9,500 each 40+ Homes: $9,000 each J.Total Drilling Cost: A X B=$150,000 K.SAD Monthly Payment per $1000: $6.33 L.Monthly Payment Per Household: ((C /1000) X D)/A=$63.30 TOTAL MONTHLY PAYMENT PER HOUSEHOLD: E + L =$148.21 TOTAL INITIAL EQUITY INVESTMENT PER HOUSEHOLD:G=$3000.00 TOTAL EQUITY INVESTMENT AFTER TAX REBATE: = $0.00

21. Geothermal For Huron Highlands Recommendations Install the closed loop vertical system Create a Neighborhood Improvement Authority (NIA) with the City, which will use its authority to implement a Special Assessment District (SAD) to fund the drilling costs. If SAD is possible, use private financing through Michigan Saves Program to fund their individual heat pumps. If SAD is not available, use Michigan Saves Program and Energy Star Financing to finance the whole project with unsecured loans. VGO Background Implementation Tools Geothermal for Ann Arbor Geothermal for Huron Highlands

23. Can Huron Highlands Implement Geothermal Heating and Cooling? Geothermal For Huron Highlands

24. Questions? Geothermal For Huron Highlands