How to Cut Costs with Sustainable New Energy Practices

Transcription

1 How to Cut Costs with Sustainable New Energy Practices Lee Ann Briggs, CEA, REM, REP Environmental Consultant with the Pennsylvania Small Business Development Center s

2 Small Business Sustainability A New Interest in Going Green? Many small businesses are showing a strong interest in being green to: Respond to current public trends Earn/keep consumer trust Retain key accounts Explore new market opportunities Reduce carbon footprint Reduction in operating costs Build credits that may have financial value Improve efficiency and productivity Create a safer and healthier workplace for employees Stay compliant with government regulations

3 Sustainability Strategies: Building Blocks to Go Green Stop and double check ensure environmental compliance Beyond compliance, wring out the waste in resource use start where there is a strong business case Consider going off the grid with renewable energy and micropower technologies to achieve energy independence Consider green purchasing Consider LEED for new building and renovations Engage employees to get their commitment and tap into their great ideas Commit for continuous improvement over the long-term; what s good today may no longer be good in three or five years

4 Going Green: Wring out the Waste Where to start? Where is there a strong business case? Where are the bottom line impacts the greatest for small business? Where is the greatest potential for significant environmental and/or energy benefit? Where is there existing proven technology that can be implemented quickly? ANSWER: ENERGY EFFICIENCY

5 Extra Incentive: Disproportionate Costs of Energy for Small Businesses On an energy cost per sales basis, small firms are hardest hit by rising energy costs: In the manufacturing sector, firms with fewer than 50 employees pay 35 percent more than the sector average for electricity while firms with more than 1,000 employees pay 17 percent less than the sector average* The median commercial sector industry has a small entity energy cost per sales ratio that is 2.7 times the ratio for large entities; in the commercial sector small businesses face a 30 percent price differential for electricity and a 20 percent price differential for natural gas* *Source: April 2008 US SBA Office of Advocacy Report

6 Energy Independence and Climate Change: Include Small Business Assuming small commercial and industrial energy consumption equals 50 percent of the total; if small firms used energy efficiency to achieve realistic reductions of percent: $12 to $18 billion in direct energy cost savings annually 93 to 140 million tons of carbon dioxide emission reductions annually Major role exists for small business in combating climate change

7 U.S. Commercial Buildings Key End-use Consumption Shares ventilation 3% cooling 7% lighting 23% refrigeration 3% space heating 32% other 7% cooking 4% water heating office equip15% 6% Source: U.S. Department of Energy, Energy Information Administration

8 Common Billing Units Electric kw (Peak Demand - Power) kwh (Usage - Energy) Natural Gas MCF-thousand cubic feet (Volume) Therms (Energy) Fuel Oil Gallons (Volume)

9 Electric Bill Components Customer Charge flat charge that covers fixed costs: metering, reading meter, sending bill. Energy Use Charge covers amount of electricity consumed in kilowatt-hours (kwh) Demand Charge covers cost of capital facilities which provide electric service. Based on kilowatt (kw) demand load. Taxes state and local taxes are commonly applied.

10 PA Electric Utility Charges As a result of deregulation, electric charges have been unbundled to show the 3 components that make up your utility costs: 1. Transmission Charge 2. Distribution Charge 3. Generation Charge (supplier of choice )

11 Distribution Charge The charge imposed by the local utility to recover costs for use of its distribution system.

12 Transmission Charge The charge by the local utility to recover costs associated in moving bulk energy from the generation station to the local distribution system.

13 Generation Charge The charge by the supplier of choice to recover costs associated with the generation or procuring electricity. In PA the end-user shops for their supplier of choice

14 PA Power Switch The power to switch electric suppliers gives you greater control over your electric bill Pennsylvanians now have the power to switch to a competing supplier who can offer the lowest price, or provide a specific service you want such as green/renewable energy.

15 Rate Caps The 1997 Pennsylvania Electric Generation Customer Choice and Competition Act gave all Pennsylvanians the right to choose the company that generates their electricity. To ease the transition to a competitive market, the law capped electric rates at 1997 levels for a set period of time. These rate caps are now expiring. Because the market price of electricity has risen since rates were capped, the PUC expects that customers may see an increase in their bills after the expiration of the rate caps.

16 Current Rate Cap Status Company Rate Cap Status Citizens' Electric Co. Expired Duquesne Light Co. Expired Pennsylvania Power Co. Expired Pike County Light and Power Co. Expired UGI Utilities Inc. Expired Wellsboro Electric co. Expired PPL Electric Utilities Inc. Expired Metropolitan-Edison Co. Expiring December 31, 2010 Pennsylvania Electric Co. Expiring December 31, 2010 PECO Energy Co. Expiring December 31, 2010 West Penn Power Co. Expiring December 31, 2010

17 PA Utility Choice In addition to who generates their electricity, Pennsylvanian consumers may also have the opportunity to choose who supplies their natural gas and provides their local telephone service whatis.aspx?ut=ec

18 Changing Rates Current predictions call for an estimated 35- percent rate increase in electric generation prices when the remaining rate caps finally end throughout the state. On Oct. 15, 2008, Governor Rendell signed HB 2200 into law as Act 129. The Act expands the PUC s oversight responsibilities and imposes new requirements on electric distribution companies (EDCs), with the overall goal of reducing energy consumption and demand.

19 Act 129 Act 129 addresses two primary areas: Utility procurement of default generation for customers who do not switch to competitive suppliers; and Public interest will be served by adoption of energy efficiency and conservation measures. Utility requirements to implement energy efficiency and demand response programs.

20 Act 129 The law encourages utility companies to reduce energy consumption and peak demand by providing energy efficiency and conservation tools and tips to their customers. Most importantly, the law requires utility companies to reduce overall energy consumption for electricity by 1 percent by 2011 and by 3 percent by Demand for electricity during peak hours must be reduced by 4.5 percent by 2013.

21 FIRST ENERGY (Penn Power and Penelec) Response to Act 129 Energy Efficiency and Conservation Programs (energysavepa) SAIC is the designated program delivery contractor Commercial and industrial customers Equipment must have purchased on or after October 28, 2009 Lighiting Motors and drives HVAC Specialty equipment

22 Energy Efficiency E2 Efficiency/conservation FIRST! Reduction of energy usage PA demand side management Act 129 E2 and conservations plans approved by PUC must reduce electric demand Renewables Alternative sources of energy

23 Energy Efficiency (E2) Develop in-house capabilities Review/understand your utility bills Partnerships Electric utilities Auditing capabilities Rebates and other financial incentives State Energy Offices Trade Associations Marketing and outreach

24 Energy Efficiency E2: Saving Opportunities Turn off heating and air conditioning before the end of operating hours (programmable thermostat). Have your heating, ventilating, and air conditioning systems serviced and adjusted routinely. Turn off machines and equipment when not needed. Make sure all automatic controls are in good working condition and set properly.

25 E2 Saving Opportunities Cont d Fluorescent lighting Use low-mercury T-5 or T-8 bulbs Four-foot lamps have nearly double the life of eight-foot lamps (retrofit kits) Task lighting Exit signs A single 40 watt exit sign may consume nearly 260 kw annually and require multiple lamp change-outs Light emitting diode (LED) retrofit kits for exit signs may only use 20W annually and require maintenance every 20 years

26 E2 Saving Opportunities Cont d Envelope the buildings shell is made up of windows, outside doors, walls, foundations, floor, roof and maybe skylights The envelope is the barrier between the carefully controlled, temperature indoor environment in your building and the fluctuating outdoor environment. Stop infiltration Reduce heat transfer Control humidity Control sunlight

27 E2 Saving Opportunities Cont d HVAC Heating, Ventilation, and Air Conditioning. Typically the biggest user of energy. Turn it off when not needed Run it less and with more efficient temperature settings Make it more efficient

28 E2 Saving Opportunities Cont d Hot Water Reduce the heat loss in the system Reduce the temperature of the hot water; it often is much hotter than necessary Reduce the amount of hot water used Reduce the time the water heater operates Maintain the system Invest in energy saving technologies

29 E2 Saving Opportunities Cont d Machines Turn off whenever possible Don t forget the hidden machines and equipment (the silent computer, photocopier, etc. Adjust controls to a temperature, speed, or other setting that uses less energy but still does the job properly Good O&M program (clean, tune, lube, etc.) Load equipment to capacity vs partial loads

30 Renewable Energy Solar Photovoltaic (PV) Solar Thermal (hot water) Wind Geo Thermal Biofuels Biomass Hydro

31 Solar Photovoltaic (PV) Crystalline PV Cells Converting the suns rays into a DC current Typically roof mounted

32 Solar Thermal Solar energy used to produce usable heat Hot water Glycol-based systems predominate Off-set fuel-based hot water heaters Radiant Heating

33 Solar and You? Are you a good candidate? Space Roof, Property 100 SF/KW Roof Orientation south facing is best Start with self assessment Use free satellite programs (google earth, virtual earth) to determine orientation Shading and Obstructions Roof exposure during peak sun hours 10am 2pm Budget $10,000 per installed KW

34 Solar and You What to do if you are interested in Solar? Look for qualified solar installer SEI, NABCEP State (DEP) has a list on their website Call to set up a site assessment with a solar contractor Have utility bills ready Look for annual kilowatt s used Ask questions

35 Funding Opportunities Federal American Recovery and Reinvestment Act (ARRA) Funded Programs $136.5 million to PA DEP to promote energy independence Solar Programs Pennsylvania Energy Development Authority Energy Harvest Green Energy Works Wind Solar

36 Alternative Energy Investment Act of 2008 (House Bill 1) State $650 Million in Funding and Tax Credits for Alternative Energy and Conservation Administered Through: Commonwealth Financing Authority Department of Environmental Protection Ben Franklin Partners Pennsylvania Housing Finance Agency Department of Public Welfare Department of Revenue

37 Funding Opportunities Cont d The Alternative Energy Investment Act ($650 MM) PA Sunshine ($100 MM) Consumers and small businesses Renewable Energy Program Geothermal & Wind ($25 MM) Solar Energy Program ($80 MM) High Performance Buildings ($25 MM) Energy Conservation ($92.5 MM) Consumers and small businesses Clean Energy Projects ($165 MM)

38 Funding Opportunities Cont d Other DEP Assistance Programs Alternative Fuels Incentive Grant ($5 MM) Small Business Advantage Grant ($1MM) Small Business Energy Efficiency Grant ($3MM) Pollution Prevention Assistance Account (PPAA) (2% loan $100,000)

39 Pennsylvania s Solar Incentive Programs CFA Solar Energy Program PA Sunshine Program Green Energy Works! PEDA

40 Solar Energy Program $80 million Grants Loans Guarantees Began Accepting Applications April 2009 Administered by the Commonwealth Financing Authority in Partnership with DCED and DEP

41 Solar Energy Program Cont d Eligible Applicants: Businesses (including non-profits) Non-Profit Economic Development Organizations Political Subdivisions (including school districts)

42 Solar Energy Program Cont d Solar Deployment Solar Electric Solar Hot Water Solar Component Manufacturing Development/Construction of Solar Technology Research and Development Facilities All financing requires 1:1Matching Funds $100 application fee (non-refundable)

43 Solar Energy Program Cont d Solar component manufacturing: Not to exceed $5,000/job created Solar deployment: Not to exceed $2.25/Watt or $1,000,000 Projects must not have long-term SREC contracts Development/Construction of Solar Technology research and development facilities: Not to Exceed $1,000,000

44 Solar Energy Program Cont d Loan periods: 10 Years for equipment, 15 Years for real estate Current interest rate: 5% Solar component manufacturing: Not to exceed $35,000/job created Solar deployment: Not to exceed $2.25/Watt or $5,000,000 Development/construction of Solar Technology research and development facilities: Not to exceed $5,000,000

45 Solar Energy Program Cont d Guarantees will be in the form of grants Terms will not exceed 5 Years Not to exceed $30,000,000 Grants will be a Standby Letter of Credit to the Company/Developer Minimum 10% investment of equity for the project financing Used only if there is a Default in Financing and Insufficient collateral for lender collection Would provide up to 75% of the deficiency

46 PA Sunshine Program $100 million First-come-first-served rebate program Began accepting applications May 18, 2009 Eligible applicants: Pennsylvania homeowners Pennsylvania small businesses Eligible Technologies: Solar Electric Systems Solar Hot Water Systems

47 PA Sunshine Cont d Application Process: Applicants must work with a Qualified Installer Two-part process Reservation application Reimbursement request Qualified Installers will complete applications Rebates will be paid directly to the consumer

48 PA Sunshine Cont d Solar Electric Rebates: Calculated on $/Watt basis Residential systems capped at 10 kw Small business systems capped at 200 kw Incentives will step down after installed capacity targets achieved

49 Small Business Solar Electric Rebates Levels 3-10 kw Rebate Amount ($/Watt) kw Rebate Amount ($/Watt) kW Rebate Amount ($/Watt) Megawatt Step # in Step

50 Small Business PV and Solar Hot Water Incentive Levels Schedule of Megawatts Remaining at Current Incentive Level (as of Aug. 6, 2010) Program Current Step Size of Step Amount Received/ Not Approved Amount Reserved Total Received Amount Remaining Before Next Step Down Small Business PV 4 5MW 3.59 MW 9.71 MW MW 0 (Current Step limited to $4 MM in incentives) Solar Hot Water Systems Systems

51 PA Sunshine Cont d Solar hot water rebates: Calculated as a percentage of total installed cost Residential rebates capped at $2,000 Small business rebates capped at $20,000 Incentives will step down after installed system targets achieved

52 Green Energy Works! $7 Million Program opened on October 5, 2009 All applications must have been submitted before November 6, 2009 Uses American Recovery and Reinvestment Act of 2009 Funding Funding for purchase and installation of PV systems

53 Green Energy Works! Projects must have been Shovel-Ready Projects must be Completed within 24 months or before April 30, 2012 Projects will receive no greater than $2.25/Watt Minimum system size is 500 kw

54 Pennsylvania Energy Development Authority (PEDA) Competitive grant program Eligible projects include: Solar, Wind, Low-Impact Hydro, Geothermal, Biogas, Biomass, Fuel Cells, Coal-Mine Methane, Waste Coal, IGCC, Demand Management One solicitation annually

55 PEDA Cont d Typical solicitations: Open Mid-April Close Mid-June Awards announced Mid-October Approximately $10 million per solicitation All projects must include a research component All projects must include matching funds as evidenced through support letters

56 PEDA Cont d Projects are scored based on: Technical/financial feasibility Amount of matching funds Job creation/economic development Applicant s demonstrated need for funding Environmental benefits Relevance of research component

57 Renewable Energy Projects $25 million Grants and loans for businesses and individuals Geothermal technologies including heat pump systems Wind energy production Facilities that manufacture component parts for renewable energy production

58 High Performance Buildings $25 million Loans and grants to small businesses and individuals Used to construct or renovate buildings for use by small businesses or by individuals who will use the building as their primary residence Establish third-party post-construction review and verification Must document compliance with building standards

59 Alternative and Clean Energy Projects $165 million Loans to businesses and non-profit economic development organizations OR grants and loans to political subdivisions for Clean Energy Projects Installation of alternative energy systems including biomass, wind, geothermal, etc. Site prep for and renovations or new construction of high performance buildings Energy conservation or efficiency Loans and grants to businesses and non-profit economic development organizations for Alternative Energy Projects

60 Alternative and Clean Energy Projects Cont d Loans Maximum shall not exceed $5MM or 50% of the total project cost, whichever is less Maximum for geothermal will not exceed $3 per SF of space to be served by system or $5MM, whichever is less Maximum manufacturer or alternative clean energy equip. or components shall not exceed $35,000/job created Grants Maximum shall not exceed $2MM or 50% of the total project cost, whichever is less Maximum manufacturer or alternative clean energy equip. or components shall not exceed $10,000/job created

61 Alternative and Clean Energy Projects Cont d Administered through CFA and Department of Community and Economic Development Matching fund 1:1 $100 application fee (non-refundable) Grant funds in excess of $100,000 must have audit conducted by CPA

62 Energy Conservation $92.5 million Loans and grants to small businesses and individuals Used to construct or renovate buildings for use by small businesses or by individuals who will use the building as their primary residence Establish third-party post-construction review and verification Must document compliance with building standards

63 Small Business Eligibility For profit businesses in PA < 100 employees Must use new equipment with a mfg warrantee Panels must have STC rating, 25 yr warranty All equipment must be UL listed Use an approved DEP contractor

64 EMAP Services Toll-free confidential environmental hotline Free and confidential environmental and energy assistance On-site assessment visits to look for cost saving opportunities One-on-one consulting to help identify and understand compliance requirements Assistance for developing, financing and marketing new environmental technologies Links to additional sources of technical and financial assistance

65 Who Can Benefit? All Clients Start-ups Buying an existing business New building construction, renovation or expansion All existing businesses

66 Resources ENERGY STAR Small Business case studies and fact sheets to educate yourself and inform your clients Solar Energy Program: PEDA: Keyword PEDA PA Sunshine Program: Department of Energy

67 Lee Ann Briggs, CEA, REM, REP Environmental Consultant /Environmental Management Assistance Program (EMAP) Pennsylvania Small Business Centers

68 CATALYST CONNECTION Sustainability- Moving Towards Green Manufacturing Cassandrea Jodon Quality Systems Consultant

69 Cassandrea Jodon - Quality Systems Consultant Southwestern PA Industrial Resource Center (IRC) Catalyst Connection IRC Network Sustainability Task Force Group

70 Sustainability Economic development that meets the needs of the present generation without compromising future generations in meeting their needs-which has environmental, economic, and social dimensions. Incorporating green principles and corporate responsibility

71 Sustainability TRIPLE BOTTOM LINE PEOPLE PLANET PROFITS

72 Regulation Changes Require You to View the World Differently Get ready for ongoing change and opportunity Increasing amounts of environmental legislation will create numerous management, technical, and financial compliance challenges

73 View the World Differently Cost and Scarcity of Materials Continue to Increase Energy Cost Increases and Spikes Change Brings Opportunity

74 View the World Differently Current View of the Manufacturing Lifecycle Plan Handle Report Material Sourcing Production Packaging Distribution End Use / Disposal

75 View the World Differently Plan Handle Report Material Sourcing Resource Inputs Production Packaging Waste and Emission Outputs Distribution End Use / Disposal

76 View the World Differently

77 View the World Differently You will need a plan to address the new green world The plan should be based on an environmental ecosystem with provisions for the following: Electricity Gas Water Hazardous Materials Carbon Emissions Transportation Recyclables Material Sourcing

78 View the World Differently Material Sourcing Amount and impact of metal, glass, plastic, ceramics and rubber used Can renewable sources be used? Location of source, to minimize energy used for transport Suitability of using recycled material Are cleaner materials available?

79 View the World Differently Product and Design Design Plan for disposal Avoid toxic or non-renewable materials Reduce materials used Plan for production Plan for distribution Production Eliminate production waste Use of waste in other products Cleaner production processes Reduce / reuse waste water and heat Use of renewable energy sources Lower energy intensity

80 View the World Differently Packaging Considerations Can packaging be eliminated or reduced? Can reusable packaging be used? Can packaging be from recycled material? Can packaging material be reused by the end customer? Can degradable packaging materials be used?

81 View the World Differently Distribution Considerations o o o Can ship or train transportation be used, instead of airplane or truck? Can local distribution vehicles be hybrid or energy-efficient? Can storage of product in warehouses be eliminated?

82 View the World Differently End-Use/Disposal Considerations o o o o o o o o Minimize energy in normal operating mode Power product with renewable sources Limit/eliminate emissions-air, water or other waste Avoid consumable supplies Collection of expired product Easy disassembly Potential reuse Minimum mixing of materials to facilitate recycling

83 View the World Differently Green manufacturing attempts to achieve these objectives Reduction of resources consumed Elimination/reduction of resource waste created Reduction of carbon pollution Using a variety of techniques Avoidance Recycling Reduce Conservation Innovation

84 Green Manufacturing Benefits Production Efficiency Environmental Cost Savings New Sales Corporate Reputation Talent

85 What s Next? Moving Toward Green Manufacturing Develop Plan Green Issues Addressed Organizational Boundaries Establish Baseline Existing Performance Regulatory Requirements Identify Opportunity Product Design Resource usage Process Improvements Prioritize Action Ease of Implementation Cost / Benefit Establish PDCA Loop Check Implementation Adjust as needed Manage Project Manage Change

86 Green Metrics If you can't measure it, you can't manage it $ Local Scholarships & Donations

87 Sustainability Practice Areas- Pennsylvania IRC Networks Utilize the LEED and ASHRAE standards and Energy Star tools to identify opportunities for Improvements and cost savings Energy Audits Identify and report energy impacts for submission to your utility provider around ACT 129 Greenhouse Gas (GHG) Assessments GHG calculations for continual improvement

88 Sustainability Practice Areas- Pennsylvania IRC Networks Utilize the ISO Environmental Management Standard for identification and management of environmental aspects and impacts for continual improvement ISO EMS Standard Project Management for Certification Environmental Audits Identify environmental aspects and impacts for data driven management

89 Sustainability Practice Areas- Pennsylvania IRC Networks Electric Power Procurement Program Serviced by Duquesne Light and Pennsylvania Power Company (most of Allegheny, Beaver, west Butler and Lawrence counties) Catalyst Connections first bulk electricity purchase under this program was for 13 clients Clients saved over $121,000 a year (approximately 13%) on their electricity bills

90 Cassandrea Jodon :: Quality Systems Consultant, CQA Catalyst Connection mail 2000 Technology Drive, Pittsburgh, PA direct fax cell

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