Utility Incentive Programs in Washington State

Transcription

1 Utility Incentive Programs in Washington State April 28, 2011 Lori Moen, CEM Supervising Engineer Energy Efficiency Services

2 What I ll Cover Why utilities invest in Energy Efficiency Typical programs available to commercial customers Where to find information about these programs Tips for working with utility efficiency programs A few examples of successful projects

3 Why Energy Efficiency?

4 Why do Utilities Pay You to Use Less? 1. Least cost-resource Cheaper to buy conservation than build a power plant Helps keep rates low 2. Stewardship Reduces greenhouse gas emissions Builds good customer relationships 3. Required by legislation Northwest Power Planning Council 6 th Power Plan WAC and RCW

5 Types of Utility Providers State and Federal Power Agencies Public Utility Districts (PUDs) Investor Owned Utilities (IOUs) Municipal Utilities Cooperatives Different Regulations

6 Northwest Power Planning Council Key Legislation Created by Congress to guide the BPA Idaho, Montana, Oregon and Washington directed to govern Funded by wholesale power revenues from BPA Authorized in the Northwest Power Act of 1980 Approved by a vote of the legislatures of all four states Governor of each state appoints two members Three principal mandates: 1. Develop a 20-year electric power plan that will guarantee adequate and reliable energy at the lowest economic and environmental cost to the Northwest. Energy conservation, renewable resources, such as wind power, solar, geothermal and biomass, and high-efficiency resources, such as those that use heat from manufacturing processes to also generate electricity, are listed in the Power Act as priorities. First plan adopted in 1982

7 Who did this Affect? Utilities who purchased power from BPA Municipalities Co-ops PUD

8 6 th Northwest Power Plan Adopted in February 2010 Efficiency is the primary resource for meeting new loads

9 What about the other Utilities? Revised Code of Washington (RCW) and Washington Administrative Code (WAC) Defines authority and procedures Defines duties, rates and service requirements

10 Utilities Transportation Commission (UTC) Regulates Private Utilities City utility tax Regulated Gas and Electric Companies in WA Avista Corporation... Electricity, Natural Cascade Natural Gas.Natural Gas Northwest Natural Gas...Natural Gas PacifCorp..;...Electricity Puget Sound Energy... Electricity, Natural Gas

11 Provides for Energy Efficiency Services RCW Chapter 80.28

12 WAC Requires Integrated Resource Planning Regulated electric utilities must meet system demand with a least-cost mix of energy supply resources and conservation Each electric utility must develop an "integrated resource plan

13 Initiative 937 Requires large utilities to obtain 15% of their electricity from new renewable resources by 2020 Utilities that serve more than 25,000 customers Incremental steps of 3% by 2012 and 9% by 2016 Along with cost-effective energy conservation

14 Typical Offerings Rebates Standardized incentives Grants Incentives for efficiency upgrades Programs Low-cost and operational improvements Loans Standardized incentives Services & Tools Empower customers Power Production Small-scale generation

15 Rebates Self-service incentives for common measures Less time consuming than grant funding Pre-approval sometimes required CHECK FIRST Typically need an invoice to process rebate NOT a Purchase Order Must show price Include price for installation Include all equipment data Make, model, efficiency ratings, usage data

16 Rebates for Lighting Full-size fluorescent fixtures T-8 s and T-5 s Compact fluorescent lamps and fixtures LEDs Ceramic Metal Halides/Induction Lamp Fixtures Pulse Start Metal Halide Fixtures Occupancy sensors Exit Signs Traffic Signals

17 Rebates for HVAC Variable speed drives Premium-efficiency motors Electronically-commutated motors Programmable thermostats Condensing Boilers

18 Rebates for Other Equipment PC Power Management Software Commercial Kitchen Equipment Ovens, steamers, fryers, hot-food holding cabinets and dishwashers Boilers, Water heaters Pre-Rinse Spray Valves Commercial Laundry Equipment Boilers, water-heaters, clothes washers

19 Custom Grants Not all efficiency measures can be standardized Customized projects provide flexibility to respond to sitespecific operating conditions and design challenges Provides funding for measures that offer verifiable energy savings Utility participation in initial project development can help maximize energy savings

20 Custom Retrofit Projects Lamp/ballast retrofits Automatic lighting controls Bi-level stairwell and garage lighting HVAC equipment upgrades Boilers Chillers HVAC controls Pneumatic to DDC replacement with enhanced control strategies - SP Reset, CW Reset Demand Control Ventilation (DCV) Garage fan CO control with VFDs

21 Retrofit Grant Funding Amount may be based on $ per unit saved Set at a % of project cost Capped at one or the other Measure Cost Energy Savings Grant Amount Measure Life Load Shape

22 New Construction Grants Baseline building meets energy code Strategies that can qualify a design include Innovative HVAC system High-efficiency equipment and heat recovery Robust control systems Daylighting Building thermal improvements

23 New Construction Funding Approaches Whole-building approach Integrated design principle Generally for large, complex buildings Energy-simulation evaluates energy performance Component approach Incentive for individual measures that exceed code Energy savings calculated Incentives may be based on $/sq foot Incremental costs % beyond energy code

24 Loans Not many options for commercial Low-interest Repayment periods varies Can be used for Envelope measures (insulation, windows) Lighting upgrades Heat pumps May include renewables

25 Programs Not as common as Grants & Rebates Strategies include Services and support Cash incentives for deliverables Examples System Tune-ups Premium HVAC Service Commissioning Resource Conservation Management

26 Services and Tools On-line account access Interval data Automated benchmarking RCW 19.27A.190 Uploads to Portfolio Manager Dedicated phone lines Resource Centers Reference Information Newsletters

27 Support for Renewables May be tied to Green Power purchases Net Metering (RCW required) Credit for production with annual true-up Utility may purchase for set $/kwh Typical opportunities Solar photovoltaic systems Small wind turbines Other opportunities Biomass Small-scale hydro

28 Where to find information

29 Your Utility s Web Page Detailed descriptions of programs, qualifications, and eligibility Links to brochures and forms Contact information

30 National Databases

31 Consortium for Energy Efficiency (CEE)

32 How to participate

33 How is Funding Determined? CONTRACTOR / DESIGNER / CUSTOMER RESPONSIBILITY Measure Cost Energy Savings Measure Life Load Shape Grant Amount FUNDING FORMULAS Retrofit (existing buildings New Construction Combined Gas/Electric UTILITY ASSISTS & EVALUATES

34 Initiating the Process An Application Form Customer Information Project Location Description of Project Preparer s Information

35 Grant Steps 1. Define the baseline 2. Specify the upgrade 3. Document project cost 4. Describe efficiency measures 5. Evaluate energy savings 6. Determine funding level 7. Establish the Grant 8. Complete the work 9. Submit invoices and documentation 10. Utility verifies and makes payment CONTRACTOR DESIGNER CUSTOMER Utility Utility

36 1 - Defining the Baseline What would the customer do without an incentive? Existing Facility Continue current operation RETROFIT Code replacement of failed equipment New Facility, T.I. or Major Remodel NEW CONSTRUCTION Build to applicable energy code Documentation Quantify performance of existing or proposed code equipment Size, quantity, model number, configuration Performance measurements (retrofit) Published performance data (new construction) Operating schedules Sequences of operation

37 Good Documentation for Retrofits Performance measurements Boiler combustion efficiency Supply/return temperatures Ventilation rates Operating Parameters DDC schedules/algorithms DDC trend logs Monitoring data Boiler #1 Monday Operation ( ) 0 0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 0:00 Temperature ( F) Cold Water Temp Storage Tank Leaving Temp Boiler Water Leaving Temp Blended Water Temp

38 Baseline for New Construction Identify applicable codes Washington State Energy Code City Energy Codes Edition effective at date of permitting Describe anticipated operation Occupancy schedules Equipment schedules Ventilation rates Reset schedules May require energy modeling

39 2 - Specify the Upgrade Proposed equipment & performance data Manufacturer / model number Published performance data Proposed configuration Operational strategies Sequence of operations Reset schedules Equipment staging Occupied/unoccupied hours

40 3 - Document Project Cost Required Cost Documentation Existing Facility - Scenario Replacing functional equipment Documentation Full turn-key cost of retrofit Replacing equipment at end of life Incremental cost difference (highefficiency vs. code) New Construction - Incremental cost difference (high-efficiency vs. code)

41 Cost Considerations Don t Exclude Exclude if Minor Taxes Freight (FOB Factory) Permit fees Insulation Controls Patch, paint, repairs Demolition (if existing equipment can be abandoned in place) Abatement (often a separate budget in large organizations) Furnished by others (owner has in stock) We can t pay for paint!

42 4 - Describe Efficiency Measures Common Quotes We re converting pneumatic controls to DDC, so it has to save energy. The boiler is 30 years old, it can t be efficient. Much Better Descriptions O.A. dampers will be equipped with motorized actuators and integrated with CO2 sensor in return duct to maintain maximum set point of 1000 ppm. Post tune-up flue gas analysis demonstrated existing boiler combustion efficiency of 78%. Utilities need details, not generalizations

43 5 - Evaluate Energy Savings Common analysis tools Spreadsheet calculations (BIN temp) Simple hand calculations Energy analysis software Manufacturer s software Need energy savings (kwh / therms), not cost savings Utility program staff are available to assist Analysis should be transparent & verifiable

44 6 - Determine Funding Level CONTRACTOR / DESIGNER / CUSTOMER RESPONSIBILITY Measure Cost Energy Savings Measure Life Load Shape PSE FUNDING FORMULA Retrofit New Construction Combined Gas/Electric Grant Amount UTILITY ASSISTS & EVALUATES

45 Other Possible Inputs Measure Life The length of time the utility can expect the savings to last Not-to-exceed values established by program guidelines Example new lighting fixtures ~ 12 years Load Shape Monthly allocation of energy savings Savings that occur during winter peaking times may be of higher value

46 7 - Grant Processing Utility representative will prepare a grant packet May be a peer review for QC Project entered into a tracking system Packet submitted for review & approval by management Contracts analyst prepares grants documents Grant documents mailed to customer Customer signs & returns grant agreement Utility issues notice to proceed

47 Completing the Project Contractor completes project Contractor invoices customer Customer submits copies of invoicing to utility Utility conducts post-installation verification Utility may require a legible invoice for payment i.e. Purchase orders, quotations, check stubs, etc. may not be considered valid proof of payment

48 9 - Invoices

49 10 Verification & Payment Complex projects may require substantial post-installation verification DDC trend logs Balancing reports Cx reports Power logging Verification plan is established prior to issuing Grant Agreement Utility finalizes project documentation and submits payment request

50 Success Stories

51 Providence St. Peter Hospital Boiler Stack Heat Recovery Project Reclaims heat from stack for domestic and non-domestic water Reduces stack temperatures from 370ºF to an average of 127ºF Grant received = $458,000 70% of project cost Estimated Annual Savings Natural Gas: $34K or 42,000 therms

52 Medical Center Medical Office Building and Medical Center 500,000 sq ft To open July 2011 Goal of 150 kbtu/sq ft High-efficiency boilers w/vav system Heat-recovery chillers Green roof Daylighting w/super-efficiency windows and shading devices Energy-star appliances Up to $4 million in grants and rebates It s conceivable that the utility will underwrite 100 percent of Swedish/Issaquah s investment in energy-efficient upgrades.

53 UW Medical Center 5 campus buildings 130,000 sq ft Over $4,500,000 in improvements installed since 2004 Comprehensive upgrades to mechanical and electrical infrastructure 200-ton heat recovery chiller and 400-ton water-cooled chiller 250 GPM Aqua Recycle laundry water-recycling system Rooftop air-cooled chiller with new water riser and fan coil units Variable Frequency Drives (VFDs) and high efficiency fan motors Another $3 million currently in construction Over $800,000 in utility rebates On track to save over $800,000 in annual utility costs Information courtesy of McKinstry

54 Thank you! Lori Moen, CEM Supervising Engineer