The Alaska Village Electric Cooperative (AVEC) received funding from both ARRA and DERA diesel stimulus grants for diesel fuel reduction project through heat recovery. The projects are located in Alaskan villages of Goodnews Bay and Shungnak. The goal was to recover heat from existing AVEC power plants operated in these villages and utilize that heat to reduce the heat load in public facilities within each community.

In Goodnews Bay, the recovered heat is used to heat the Washeteria/City office and the Village Public Safety Office (VPSO) buildings. Goodnews Bay project funded under ARRA grant ended in September of 2011 and the Shungnak project continued under DERA funding  until its completion in 2012.

Measurable outcomes from the project included reductions in fuel usage and pollutant emissions for the community, and provided cost savings to the city and its residents.

AVEC partnered with Alaska Native Tribal Health Consortium (ANTHC) with the intention to reduce both the energy use and the cost of energy in rural Alaska. Sustainability and energy conservation are critical to the survivability of Alaskan rural villages.