Transcript Presentation Title

Developing a 2011 Energy Plan
For Commercial and Industrial Customers
Helping you save money and energy
Today’s presenters
• Jim Grossman
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Business Service Programs
• Mike Carter & Mark Farrell
Energy Engineers
• Chris Kanoff
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Energy Efficiency Programs
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Agenda
Benefits
Elements of a successful plan
Hiring an energy manager
Financing
Resources for you
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Benefits
– Energy management is good business
 Operations and maintenance costs
 Competitive edge/image
 Waste/emissions
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 Workplace environment
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Elements of a successful plan
Source: EPA ENERGY STAR
Elements of a successful plan
1) Make a Commitment
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Form a cross-functional energy team
Institute an energy policy/mandate
Example of an energy policy from ABC Inc. Energy Mandate
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ABC Inc. has established three key energy goals:
• Reduce kWh energy consumption per square foot by 20% in one year
• Reduce kW peak demand per month by 10%
• Obtain a minimum 20% IRR on efficiency investments
Established this ______ day of ___________, 2010.
President/CEO/Director of Ops/Facility/Energy Manager/Financial Manager
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We recognize energy as a controllable operating expense wherein lower energy consumption results
in decreased operating expense, environmental emissions, and maintenance costs. Energy
management is the responsibility of all staff in our facility, guided and supported by the
facility/energy manager. We will assess our energy performance and share energy use data with all
employees. We will create and implement an energy plan to achieve our energy goals. Our use of
equipment and controls for energy savings will be a show-piece in our industry.
Elements of a successful plan
2) Assess Performance
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Take inventory
Review energy bills (3 years)
Establish evaluation metrics and selection criteria
Benchmark your performance against your peers
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Elements of a successful plan
3) Set Performance Goals
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Near-term and long-term
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Develop an accounting/reporting system
Prioritize opportunities (identify technologies and
payback)
Prepare budget
Consider rate optimization
Put an effective maintenance plan into place
Include commissioning
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4) Create an Action Plan
Elements of a successful plan
5) Implement the Action Plan
Get approval at the top
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Speak dollars, not Btus or kWhs
First cost versus lifecycle cost
Compare to competitors
Get buy-in from CEO (energy mandate)
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Elements of a successful plan
5) Implement the Action Plan
Build capacity
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Grow the grass roots
Network
Motivate
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Motivate O&M staff through
monthly reports
Provide owners/managers of multiple
buildings chance to benchmark
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Elements of a successful plan
6) Evaluate Progress
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Energy use data
Technology implementation
Behavior modification
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Elements of a successful plan
7) Recognize achievements
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Brand your program
Publicize often
Keep a high profile
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Hiring an energy manager
– Should you hire an energy manager?
What is an energy manager?
 The job of the energy manager
 Challenges
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Recommended qualifications
• Technical degree
• Association of Energy Engineers Certified Energy Manager
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• Are significant energy-savings opportunities available?
• Is senior management on board with energy efficiency?
• Are the necessary financial resources available?
Financing
– Borrowing
Best option for larger investments involving multiple
buildings, where significant energy savings are assured
 Commercial lenders
 Local government bonds
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– Lease purchase agreements
Capital lease for long lifespan equipment
 Operating lease when regularly replacing/upgrading
 Typically, 5 to 10 year term
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Financing
– Performance contracting
Energy Service Company (ESCO)
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Identifies and evaluates energy-saving opportunities
Recommends a package of improvements
Contract term of 7 to 10 years
ESCO may or may not purchase equipment
Minimum requirements
• 40,000 square feet of floor area, and
•  $40,000 annual energy bill
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Financing
– Performance contracting (cont’d)
Helpful hints
• Involve your local energy supplier
• Invite ESCOs to tour the facility
• Negotiate an energy audit and project
development agreement
• Negotiate a guarantee to meet your needs
• Train staff to maximize benefits
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Financing
– Federal Incentives
American Recovery and Reinvestment Act of 2009
• $4.5 billion to convert federal buildings into
high-performance green buildings
• State energy-efficiency and conservation block
grants funded ($3.1 billion)
• Renewable energy
» Production Tax Credit (PTC) of 1 to 2.1 cents
per kWh
» 30% Investment Tax Credit
» Cash grant
» 30% for fuel cell, solar, small wind
» 10% for geothermal, microturbine, and
combined heat and power property
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Financing
– Federal Incentives
Energy Improvement and Extension Act of 2008
• Eight-year extension (through 2016) of 30% tax credit
» Commercial solar installations
» Eliminated the $2,000 tax credit cap
» Small wind power (up to $4,000)
» For wind turbines with capacities of 100 kilowatts or less
» Geothermal heat pumps (up to $2,000)
• Fuel cell tax credit limit is tripled, to $1,500 for each 0.5
kilowatts of capacity
• Creates a new 10% tax credit for certain combined heat and
power systems
• Extended the energy-efficiency tax deductions for commercial
buildings through 2013
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Financing
– Federal Incentives
Energy Policy Act of 2005 Commercial Building Tax
Deduction (§179D IRS Code)
• Up to $1.80 per square foot
» Building envelope ($0.60/ft2)
» Heating, cooling, ventilation ($0.60/ft2)
» Interior lighting ($0.60/ft2)
• Available to owners or tenants (or designers,
in the case of government-owned buildings)
of new or existing commercial buildings
• Must save at least 50% of the energy cost of a
building that meets ASHRAE Standard 90.1-2001
• Verification (software) and certification requirements
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Financing
– State Incentives
Database of State Incentives for Renewable Energy
(DSIRE)
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Grants
Loans
Loan guarantees
Sales tax exemption
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Financing
– Utility Incentives
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Prescriptive
• After purchase
• Prescribed amount
• Minimal verification
Custom
• Prior to purchase
• Amount based on energy saved
• High degree of verification required
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Rocky Mountain Power FinAnswer Express
– FinAnswer Express is for commercial and industrial
customers– either retrofit or new construction
– Pre-calculated incentives for high-efficiency lighting,
premium efficiency motors and HVAC equipment
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Custom incentives may be available for other types of equipment
– Incentive process (pre-purchase agreement or post purchase
application) varies by technology and project type
Please understand the process before you purchase!
– Check our Web site for on-line forms plus trade allies
available to help
– Also check for state and federal tax incentives at dsire.org
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Rocky Mountain Power Energy FinAnswer
– Applies to comprehensive commercial or industrial projects–
either new construction or commercial retrofit*
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Lighting and non-lighting projects can be packaged
– Starts with an energy analysis to identify options and highest
priority measures
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Commissioning is required for most measures
– Incentives are project-based
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$0.12/kWh of annual energy savings + $50/kW of average monthly
demand reduction (up to 50% of the eligible project cost)
Payable by one-time lump sum check, per project
– Incentive agreement must be signed before equipment is
purchased
– Check our Web site for participation steps and online forms
*Commercial retrofit projects must be at least 20,000 sq ft to be eligible
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The Business Solutions Toolkit
– Reduce energy expenditures with free, online tools
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Energy benchmark data by business segment
Efficiency recommendations by business segment
Lighting, motor and other energy calculators
Facility energy assessment… plus more
– Get energy answers with live Web resources
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“Ask an Expert” service supplies direct answers to energy questions
Searchable Energy Library and News resources
Monthly electronic newsletter delivered to your e-mailbox
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How to access the Toolkit
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– Links found on the Rocky Mountain Power website
 Can access direct at rockymountainpower.net/toolkit
– Toolkit resources also are delivered to you as part of our
monthly electronic newsletters
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What is in the Toolkit
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Calculators & industry-specific tools
Other Resources
– EPA ENERGY STAR
Building Upgrade Value Calculator (BUVC)
 Cash Flow Opportunity Calculator
 Financial Value Calculator
 Portfolio Manager
• Track multiple energy and water meters for each facility
• Benchmark your facilities relative to their past performance
• View percentage improvement in weather-normalized source
energy
• Share your building data with others inside or outside of your
organization
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Other Resources
– EPA ENERGY STAR
Building Energy Performance Rating System
 ENERGY STAR Qualified Commercial Products
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• Office Equipment
• Commercial Food Service Equipment
Dishwashers
Fryers
Griddles
Holding Cabinets
• LED Lighting
• Enterprise Servers
• Vending Machines
Ice Machines
Ovens
Refrigerators/Freezers
Steam Cookers
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Other resources
– DOE EERE Building Technologies Program
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Net-Zero Energy Commercial Building Initiative
» Commercial Building Energy Alliances (CBEAs)
» Retailers, hospitals, real estate
» Commercial Building National Accounts (CBNAs)
Building Energy Codes Program
 EnergySmart Schools
 EnergySmart Hospitals
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• Goal of marketable net-zero energy
commercial buildings by 2025
• Get key design and evaluation steps
• Download energy simulation software
• Alliances and Partnerships
Other resources
– DOE EERE Industrial Technologies Program
Save Energy Now®
• 3-day system assessment by DOE energy expert
• 1-day assessment from a university-based Industrial Assessment
Center
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Other resources
– DOE EERE Industrial Technologies Program
Technology Delivery
• Plant-wide, compressed air, motor-driven,
process heating, steam systems, and data centers
• Software Tools
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Fan System Assessment Tool (FAST)
MotorMaster+
Steam System Assessment Tool (SSAT)
Process Heating Assessment and Survey Tool (PHAST)
• Technical Publications
• Training Sessions
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Other resources
– DOE EERE Federal Energy Management Program (FEMP)
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Design, operate, and maintain high-performance buildings
Purchase energy-efficient products
Deploy renewable energy technologies
Finance and contract assistance
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Other resources
– U.S. Green Building Council
Leadership in Energy and Environmental Design (LEED)
• Commercial Interiors (tenant improvement)
• Existing Buildings O&M
» Core and Shell
» New Construction
» Schools, Healthcare, Retail
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Other resources
– U.S. Green Building Council LEED—110 pts
Sustainable Sites (stormwater management,
lighting pollution)—21 pts
 Water Efficiency—11 pts
 Energy and Atmosphere (building commissioning,
building automation systems)—37 pts
 Materials and Resources (sustainable purchasing,
solid waste management)—14 pts
 Indoor Environmental Quality (ventilation, occupancy
sensors, green custodial cleaning)—17 pts
 Innovations in Operations (design innovation and
regional priority)—10 pts bonus
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Contacts
– For more information please phone us:
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Call your Business Solutions Team for answers to service and account
questions at 1-866-870-3419
– Visit our website at:
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Business program Web page –
rockymountainpower.net/business
Business Solutions Toolkit –
rockymountainpower.net/toolkit
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E-mail us at [email protected]
Use our online inquiry form – rockymountainpower.net/inquiry
Call our business Energy Services Hotline at 1-800-222-4335
© 2009 Tech Resources Inc.
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– Or contact us directly: