San diego county office of education epg June 2011

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  • 1. Guide updatesJune 2011 energy planning Guide:What’s New?aB920Assembly Bill 920 (AB 920) requires investor-owned utilities (IOU) to compensate Net Energy Metering (NEM)customers for any net surplus generation as of Jan. 1, 2011. Currently, the California Public Utilities Commission(CPUC) has not yet approved a ruling on what the dollar value per kilowatt-hour to be paid will be, but isexpected to be retroactively applied after the decision is approved. The progress of this decision can be foundat http://docs.cpuc.ca.gov/published/proceedings/A1003017.htm.California solar initiative (Non-Residential)Currently, The California Solar Initiative’s (CSI) Non-Residential incentive budget in San Diego Gas and Electric(SDG&E) service territory (administered by CCSE) is expended; all un-confirmed Non-Residential kilowattsin the CCSE territory are not ensured a CSI incentive at this time. Applicants may continue to submit theirreservation requests and CCSE will include your application on the CSI Non-Residential Project Waitlist basedon the time and date it was received. Consequently, CCSE cannot guarantee that unreserved Non-Residentialphotovoltaic (PV) or Commercial electricity-displacing solar water heating (SWH) projects will receive CSIincentives in the future. Current waitlist can be found at https://energycenter.org/index.php/incentive-programs/california-solar-initiative/non-residential.sB585Senate Bill 585 (SB585) amends the California Solar Initiative (CSI) statute to allow the 10-year program tocollect additional funds above the current $2.167 billion current cap in order to fully fund the non-residentialportion of the solar program. The bill would address the funding shortfall of approximately $200 millionneeded to fully attain the California Public Utilities Commission (CPUC) authorized goals for the program.High performance incentive (Hpi) GrantsEffective January 25, 2011, revisions to the HPI regulations significantly increased the incentive amounts.A High Performance Base Incentive Grant (HPBIG) is now available for projects utilizing the 2009 CA- CHPSCriteria. The HPBIG awards $250,000 for modernization projects meeting the minimum threshold of 20 HPIpoints and $150,000 for new construction projects meeting the minimum threshold of 27 HPI points. TheHPBIG was created as a onetime per school site incentive to apply for HPI Grant funding. 1
  • 2. taBle of CoNteNtsChapter 1 - introduction.....................................................................4Chapter 2 - strategic energy planning............................................6Chapter 3 - project development and Management.................17Chapter 4 - energy efficiency strategies and Measures............20Chapter 5 - distributed energy Resources...................................26Chapter 6 - legal project Considerations.....................................34Chapter 7 - financing Mechanisms................................................38Chapter 8 - extra factoids................................................................43 2
  • 3. CHapteR 1introductionSan Diego schools, along with schools throughout In parallel with the AB32 mandates, California Energythe nation, spend a significant amount of each year’s Commission (CEC) 2008 Building Efficiency Standardsoperating budget on energy costs. While generally finalized in May of 2009 are effective as of Januaryrepresenting only 2 to 4 % of district budgets, energy 1st, 2010. These standards supplant the CEC 2005costs tally up to $8 billion a year nationwide for schools1. standards and build more technical detail and rigorFortunately, through building modernization, efficient into Part 6 of the Title 24 requirements.new construction and conservation techniques,schools can potentially save upwards of 20% on Locally, San Diego Association of Governmentstheir annual energy costs. The purpose of this energy (SANDAG) proposed to use 2007 consumption levelsplanning guide is to provide San Diego region school (18,648 GWh) as a baseline from which to achieve abusiness officials and facility managers with an easy 22% reduction in consumption by 20202. San Diegoreference document that identifies common (and not schools will play a definitive role in achieving the manyso common) strategies for developing energy saving energy related goals currently being established inprojects and energy management plans. California.Starting in 2010, California Assembly Bill 32 (AB32) In order to address these objectives, we mustmandates that government buildings, utilities and comprehensively incorporate the four keymajor manufacturers must know and verify how components of a thoughtful energy plan in order tomuch their facilities contribute to carbon emissions. make implementation effective and achievable:AB32 empowers the California Air Resources Board • Public Policy Initiatives / Mandatesto develop metrics and reporting mechanisms that • Energy Management Benchmarkingwill steer California toward reducing Green House • Third-Party Feasibility AssessmentsGas emissions to 1990 levels by 2020. Although not • Financial Structures, Rebates and Incentivesspecifically named, schools should be aware of thissweeping legislation, as it will dramatically affectbuilding energy efficiency code and simply because itis wise to begin planning now for how to bring schoolfacilities into compliance with AB32 goals. Energy Management Objective Feasibility Benchmarking Assessments Financial Structures, Public Policy Rebates and Incentives Initiatives/Mandates Strategic Energy Plan project development/ implementation 3
  • 4. overviewThis guide is structured to provide school businessofficials with an easy to follow reference toolwritten in plain language with bite-sized concepts.The sections are broken out into discrete actionsas outlined in the AB32 legislation for developingmeasures ranging anywhere from a cohesive, district-wide energy strategy to a specific site and project.The document is peppered with relevant energyfactoids, linked references and contains quick-linksto navigate around the document as it is read. Ascompanions to this Energy Planning Guide, a varietyof supporting documents are available for downloadand use including:• Questions to Ask Your Contractor• Energy Saving Tips• Energy Project Request for Proposal• School Board Resolutions• Reference Link Pool• School Based Case StudiesIf you see something we’ve missed, please contactus at eas@energycenter.org and alert us to theinformation you would like to see included and we’llreview it during the monthly update process.The distinct sections are broken out to describeprotocols ranging anywhere from a cohesive, district-wide energy strategy to a specific site and project.Key ReferencesWe encourage you to review these documents as wehave used them through this guide.• Coalition for Adequate School Housing Guide Book: Planning for Energy Efficiency• School Operations and Maintenance: BEST PRACTICES FOR CONTROLLING ENERGY COSTS• The Customer’s Guide to Solar Power Purchase Agreements (Rahus Institute Publication) 4
  • 5. CHapteR 2strategic energy planningThe main objective of this chapter is to identify a value of energy savings opportunities. As energyplanning framework that focuses on short and long costs escalate, the list of economically viable energyterm objectives by understanding historical energy efficiency and distributed generation technologiescosts and current state and federal policy initiatives. expands. A project with estimated costs of $100,000 might not work if you are only saving $150,000 overplanning Horizons the life of the technology, but mightEvery energy plan should address The California Department be worth considering later, when itimmediate needs/objectives, while will save you $200,000.keeping future needs/objectives in of Education estimates thatperspective. Therefore each plan The current energy pricing as well California schools spendmust consider short, medium and as the percent change in historicallong term goals. $132 per student each year pricing are commonly used as justification to define the potential on energy costs. savings a district might realize dueThe short term (<5 years) planningaddresses the most immediate to a modernization project. Forneeds and can be supported by example, a solar power purchasecurrent industry models and conditions. Is your provider (PPA) may propose a price for each kilowatt-roof in need of repair? Is your district considering a hour produced by a solar system that increases annuallyproposal brought forward by a vendor? Planning and based on some defined “escalator” that is relative toanalysis done on short term objectives will generally historical utility rate escalation. The following graphyield the most accurate savings results, because the identifies the average cost per kilowatt-hour (cents/foundation of the model will be based on current kWh) of energy sold to commercial San Diegantechnology performance and market conditions. entities (which schools fall under) since 1982.Medium term (>5 and ≤10 years) planning establishesforward looking goals for larger scale modernization(such as new building construction/expansion)and helps to establish medium-view sustainabilityobjectives achieved over time.long term (>10 years) goals typically aim to defineachievable reduction objectives, but are very rarelytied to actual project planning. Long term goals reflectwhere a district wants to go, but do not necessarilydefine how to get there and in many ways are thework statement for the energy plan. Additionally, thelong term vision may be influenced by or may mirrorstatewide and/or nationwide legislative requirementssuch as aB32. CEC price trend for commercial SDG&E customersHistorical energy CostsThe cost of energy is a key indicator that directly affectsboth the operational budget spending as well as the 5
  • 6. Although the late eighties experienced a period metering contract to provide an inspection reportof declining energy costs, rates have consistently to the electrical corporation, unless the electricalincreased since 1990. Although prices declined generating facility and meter have been installed orsharply from 2001 through 2003, the price decline inspected within the previous 3 years.was an anomaly such that prices shot back up in 2004,higher than the 2001 price point. Breaking down the Clean technology and Renewable energy Jobaverage percent change in pricing year over year, we training, Career technical education, and dropoutsee very different pictures depending on the length prevention program (sB675)of the term we are analyzing: sB 675 (Clean technology and Renewable energyi. short term (last 5 years): +12.5% Job training, Career technical education, andii. Medium term (last 10 years): +6.1% dropout prevention program) – This bill would:iii. long term (last 20 years): +3.4% require the Controller annually to allocate $8,000,000 from the Energy Resources Program Account to thepublic policy implications Superintendent of Public Instruction for expenditureMany projects are dependent upon public policy in the form of local grants to be allocated pursuant toinitiatives that help create an environment that is the existing provisions for creating and maintainingconducive to the development of energy projects. This partnership academies; require a grantee to implementincludes incentive programs, utility rate design and or maintain a partnership academy that focuses onperformance requirements. The following measures employment in clean technology businesses andmay impact energy projects in 2010 and beyond. renewable energy businesses and provides skilled workforces for the products and services for energysan diego County solar and Wind energy or water conservation, or both, renewable energy,ordinances pollution reduction, or other technologies; requireThe Solar Energy Ordinance (POD 09-006) codifies the California Energy Commission, in consultationcurrent processes with regard to Solar Energy Systems with the State Department of Education, to developand also allows for less than 10 acres of photovoltaic guidelines, that would be exempted from thesolar panels with an Administrative Permit rather than Administrative Procedure Act, to ensure that programsthe current requirement of a Major Use Permit. The receiving grants reflect current state energy policiesminor wind set of ordinance (POD 10-007) changes and priorities as well as provide skills and educationremoved outdated references to old state code and linked to the needs of relevant industries; authorizeallows for up to 5 (rather than the previous 2) smaller- a school district to apply for planning grants forsized turbines with an Administrative Permit. implementing a partnership academy and would allow the Superintendent to expend up to 4%-5%Net energy Metering (aB510) of the funds transferred to the Superintendent toaB510 requires that the standard contract or tariff pay the costs incurred in the administration of thisfor net energy metering be offered on a first-come- program; require the State Department of Educationfirst-served basis until the time that the total rated in consultation with the California Energy Commissiongenerating capacity used by eligible customer- to provide a report to the Legislature that includes agenerators exceeds 5% of the electric utility’s aggregate description of the curriculum and substance of thecustomer peak demand. The bill would require an programs funded by grants awarded pursuant toelectrical corporation to include a provision in the these provisions, and specified data; and providenet energy metering contract or tariff requiring that that the bill’s provisions would become inoperativeany customer with an existing electrical generating on June 30, 2016, and, as of January 1, 2017, wouldfacility and meter who enters into a new net energy repeal these provisions. 6
  • 7. Climate Change/Greenhouse Gas Reduction • Excess generation applied to Benefiting AccountsaB 32 – In 2006, the Legislature passed and will be valued at the generation-only componentGovernor Schwarzenegger signed AB 32, the Global of the time-of-use rateWarming Solutions Act of 2006, which set the 2020 • A Generating Account customer can take servicegreenhouse gas emissions reduction goal into law. under either a NEM tariff or a RES-BCT tariff, butIt directed the California Air Resources Board (ARB not bothor Board) to begin developing discrete early actions, • The utilities may charge a one-time set up fee pereffective as of January 1, 2010, to reduce greenhouse account of up to $500. The utilities may charge agases while also preparing a scoping plan to identify monthly billing charge to the generating accounthow best to reach the 2020 limit. The reduction of no more than $30 per month per monthmeasures to meet the 2020 target are • Generating Accounts, as wellto be adopted by the start of 20113. as Benefiting Accounts, are allowed to participate in CPP (Critical Peakefficiency performance standards Pricing) serviceCalifornia state energy Code (Title • SDG&E shall modify its RES-24) – Compliance at 15% above title BCT tariff to allow customers to take24 is desired. service under Schedule DG-RGreen Building action plan for state • Benefiting Account must receivefacilities – All employees and all service under a TOU scheduleState entities under the Governor’s • Electricity exported by the localjurisdiction shall immediately and government may not be soldexpeditiously take all practical • Remaining credits are carriedand cost-effective measures to over to the next month, but expireimplement the goals of the Green at the end of 12 monthsBuilding Action Plan specific to • Local government must givefacilities owned, funded or leased 60 days advance notice beforeby the State4. operation, within 30 days utility must file an advice letter with the CPUC,utility Rate design CPUC must respond within 30 daysaB 2466 – Authorizes a local government entity • Renewable Energy Credits (RECs) associated withto receive a credit on their electric bill for power energy remain property of the generatorsgenerated from a renewable energy facility owned by • Statewide, there is a limit of 250 MWthat entity that generates more energy than required • A Generating Account customer can take serviceto serve the site where the facility is located. under either a NEM tariff or a RES-BCT tariff, but not bothRenewable energy self-Generation Bill Credit • Local government is responsible for metering andtransfer (Res-BCt) – Public Utilities Code 2830, interconnectionestablished by AB 2466 (Laird, 2008), requires utilities • CPUC is responsible for preventing RES-BCT fromto establish a tariff which allows local government shifting costs to bundled service customersentities to generate electricity at a primary account • IOU is responsible for maintaining transmissionand transfer any excess credits to another ‘benefiting’ and distribution infrastructure and billingaccount so long as both facilities are owned oroperated by the same local government. Any ‘Local aB 1969 (Ca feed-in tariff) – Allows for the sale ofgovernment’, defined as a city and or county, political excess energy to SDG&E for a price point establishedsubdivision, school district, or UC or CSU campus may by the CPUC called the Market Price Referentparticipate in RES-BCT5. (MPR). The MPR is set based on grid technology• Systems limited to 1 MW capacity per generating account 7
  • 8. distribution and retail costs to generate that energy. first-serve until the funding runs out. In NovemberThe dominant generation technology is a combined- of 2010, Collaborative for High Performance Schoolscycle gas turbine, which does not support renewable (CHPS) and the Division of the State Architect (DSA)technology implementation such as solar. entered into a Memorandum of Understanding (MOU) that allows a school district to apply jointlyaB 920 – Assembly Bill 920 (AB 920) requires for CHPS Verified recognition and Proposition 1Dinvestor-owned utilities (IOU) to compensate Net High Performance Incentive Grant funding. In theEnergy Metering (NEM) customers for any net CHPS Verified program, accountability rests on thesurplus generation as of Jan. 1, 2011. Currently, the design team, school district, CHPS, DSA (for designCalifornia Public Utilities Commission (CPUC) has not review) and a 3rd-party reviewer (for constructionyet approved a ruling on what the dollar value per review) to ensure that the high performance featureskilowatt-hour to be paid will be, but is expected to be are implemented as intended. Effective January 25,retroactively applied after the decision is approved. 2011, revisions to the HPI regulations significantlyThe progress of this decision can be found at http:// increased the incentive amounts. A High Performancedocs.cpuc.ca.gov/published/proceedings/A1003017. Base Incentive Grant (HPBIG) is now available forhtm. Although the details still need to be worked projects utilizing the 2009 CA- CHPS Criteria. Theout the current proposed method of determining HPBIG awards $250,000 for modernization projectsthe amount of compensation will be based on the meeting the minimum threshold of 20 HPI pointsCommission-adopted Market Price Referent (MPR), and $150,000 for new construction projects meetingadjusted by time of delivery factors. The resulting net the minimum threshold of 27 HPI points. The HPBIGsurplus compensation rate in the current proposed was created as a onetime per school site incentive todecision ranges from 10.8 to 12.7 cents per kilowatt apply for HPI Grant funding. As of March 2011, therehour. This rate includes payment for the renewable is about $900 million in Prop 1D spending authorityattributes of the net surplus generation6. remaining for modernization projects, $300 million in state bond authority for new construction, and $70The ownership of any Renewable Energy Credits million left in high performance incentives. For the(RECs) associated with this excess generation will current information on the remaining bond authority,transfer to the utility upon the sale to the utility. go to http://www.bondaccountability.opsc.dgs. ca.gov/bondac/proposition/proposition1D.asp.7state funding and incentive programsHigh performance incentive (Hpi) Grant – California Bright schools program (All publicly funded K–12voters approved a $100 million high performance school districts and nonprofit K–12 schools are eligibleschool incentive package under Proposition 1D for assistance from the Bright Schools Program.) –in November 2006. Incentive grants are awarded As school budgets are shrinking, costs for schoolon the basis of a project’s High Performance operations keep going up. One way to save moneyRating Criteria” (HPRC) score. The funding is part is by reducing your energy costs. The Bright Schoolsof a larger $7.3 billion package to upgrade public Program offers services to help find ways for you toschools, including kindergarten through twelfth become more energy wise8.grade. The high performance incentives will fundnew construction and modernization projects that The Energy Commission is temporarily suspendingpromote the efficient use of water, natural resources technical assistance provided under the Bright Schooland energy, and also provide superior indoor air Program (BSP). Due to workload constraints associatedquality, acoustics, and lighting. School projects with American Recovery and Reinvestment Act (ARRA)that are eligible for California state funding are also funds, technical assistance is no longer being offeredeligible for incentives for meeting the Proposition 1D to BSP applicants as of December 3, 2009. Typically,High Performance school regulations. Eligible schoolprojects will be awarded incentives through the Officeof Public School Construction (OPSC) first-come, 8
  • 9. the technical assistance program has provided energy CPUC to develop the underlying methodologies andaudits to K-12 schools to identify energy saving future program design.recommendations or reviews of energy proposalsand designs. Technical assistance will continue to be Update - Currently, The California Solar Initiative’s (CSI)conducted for ARRA related activities9. Non-Residential incentive budget in San Diego Gas and Electric (SDG&E) service territory (administered byemerging Renewables program (Eligible CCSE) is expended; all un-confirmed Non-Residentialtechnologies include small wind turbines with a rated kilowatts in the CCSE territory are not ensured aoutput of 50 kilowatts (kW) or less and fuel cells that CSI incentive at this time. Applicants may continueuse a chemical process to convert renewable fuels to submit their reservation requests and CCSE willinto electricity.) – The California Energy Commission’s include your application on the CSI Non-ResidentialEmerging Renewables Program provides rebates to Project Waitlist based on the time and date it wasconsumers who install qualifying renewable energy received. Consequently, CCSE cannot guaranteesystems (small wind or fuel cell electricity systems) that unreserved Non-Residential photovoltaic (PV)on their property. Your financial incentive may or Commercial electricity-displacing solar watervary according to the system size, technology and heating (SWH) projects will receive CSI incentives ininstallation method10. the future.12California solar initiative (Eligible technologies CCSE will diligently track due dates of previouslyinclude, photovoltaics and other solar electric reserved projects and maintain their progress throughgenerating technologies. Other solar electric the application process. If these projects do not meetgenerating technologies are categorized as either the designated timelines, they will drop out of the CSIelectric displacing or electric generating. Electric Program, and the reserved funds will be reallocateddisplacing: Solar space & process heating and solar to the wait listed projects in the order received13.driven cooling (e.g., absorption and adsorptionchillers and desiccant systems); Electric generating: sB585 Senate Bill 585 (SB585) amends the CaliforniaDish Stirling, Solar Trough, Dish and Lens and Solar Initiative (CSI) statute to allow the 10-yearConcentrating Solar). The CSI Program offers program to collect additional funds above the currentincentives for both photovoltaics (PV), as well as $2.167 billion current cap in order to fully fund theother solar electric generating technologies that non-residential portion of the solar program. The billeither generate electricity or displace electricity would address the funding shortfall of approximatelyusage. Currently, other solar electric generating $200 million needed to fully attain the Californiatechnologies are only eligible Public Utilities Commission (CPUC)for production based incentives. The true cost of a school authorized goals for the program.Incentives for other solar generation The additional funding will helptechnologies that displace electricity includes much more than attain approximately 400 MW ofare capped at $100.8 million . The 11 non-residential solar through the the cost to design andCalifornia Public Utilities Commission CSI. If passed as-is, SB585 would(CPUC) plans to offer $100 million in build it, long-term costs allow the CPUC to immediatelyincentives over the next ten years amend the budget and effectivelyfor solar thermal technologies under must also be included. open the “wait-list” portions of thethe California Solar Initiative. State CSI program14.law (Senate Bill 1) limits CaliforniaSolar Initiative incentives to electric-displacingtechnologies, such as absorption cooling. Currently,CSI program administrators are working with the 9
  • 10. self Generation incentive program (sGip) (Eligible by 25%). The applicant must demonstratetechnologies include Renewables Level 2 Incentive: to the Building Division that the projectFuel Cells operating on renewable fuels, wind exceeds the Title 24 minimum standardsturbines and advanced energy storage coupled by submitting compliance documentationwith renewable eligible self generation technology done on a computer program approvedand four hour discharge at rated capacity; Non- by the California Energy Commission. TheRenewables Level 3 Incentive: Fuel Cells operating on County of San Diego has a Green Buildingnon-renewable fuels and advanced energy storage Incentive Program designed to promotecoupled with non-renewable eligible self generation the use of resource efficient constructiontechnology and four hour discharge at rated capacity). materials, water conservation and energyOnly self-generation equipment installed on the Host efficiency in new and remodeled residentialCustomer’s side of the Electric Utility meter is eligible. and commercial buildings. The program offersSelf-Generation refers to distributed generation incentives of reduced plan check turnaroundtechnologies installed on the customer’s side of the time, no fees for the building permit and planutility meter. Equipment must be sized to serve all or check of residential photovoltaic systems anda portion of the electrical load at the Site . Through 15 a 7.5% reduction in plan check and buildingthe SGIP, the California Center for Sustainable Energy permit fees for projects meeting programprovides incentives for up to 5 megawatts (MW) of requirements16.distributed generation equipment. Qualifying “self-generation” equipment must be certified to operate federal funding and incentivesin parallel with the electrical grid and meet other american Recovery and Reinvestment act (aRRa) –criteria established by the CPUC. Facilities and Energy Funding OpportunitiesGreen Building incentive program (Projects must federal tax Grant program – The American Recoverycomply with one of the conservation measures listed.) and Reinvestment Act of 2009 (H.R. 1) created 1. Natural Resource Conservation: straw bale a renewable energy grant program that will be construction or recycled content material administered by the U.S. Department of Treasury. This (recycled content material requirements cash grant may be taken in lieu of the federal business must either show 20% or more of the primary energy investment tax credit (ITC). In July 2009 the materials being used in the building system Department of Treasury issued documents detailing and contain 20% or more post-consumer guidelines for the grants, terms and conditions and recycled content, or show that at least one a sample application. There is an online application primary building material (such as roofing) is process, and applications are currently being 50% or more post-consumer recycled content, accepted. See the US Department of Treasury [any reused materials will be found to satisfy program web site for more information, including the 20% post-consumer recycled content answers to frequently asked questions. Grants are requirement]); available to eligible property placed in service in 2. Water Conservation: the installation of a 2009 or 2010, or placed in service by the specified graywater system (Graywater is the wastewater credit termination date, if construction began in produced from bathtubs, showers and clothes 2009 or 2010. The guidelines include a “safe harbor” washers. In order to conserve water, it can provision that sets the beginning of construction at be used for irrigation through subsurface the point where the applicant has incurred or paid at distribution systems.); least 5% of the total cost of the property, excluding 3. Energy Efficiency: Energy use below CEC land and certain preliminary planning activities. standards (residential projects that exceed Generally, construction begins when “physical work the minimum Title 24 standards by 15% and commercial projects that exceed the standards 10
  • 11. of a significant nature” begins. It is important to note lamps retrofit; 7) Installation of lighting controlsthat only tax-paying entities are eligible for this grant. such as occupancy sensors, dimming, photocell, etc.Federal, state and local government bodies, non- Mechanical: 1) Pneumatic controls to Direct Digitalprofits, qualified energy tax credit bond lenders, and Control (DDC) conversion; 2) Constant Volume Aircooperative electric companies are not eligible to Handlers to Variable Air Volume Controls conversion;receive this grant17. 3) Variable Frequency Drives installations on pumps and motors; 4) Upgrades on heat pumps and chillerQualified energy Conservation Bonds (QeCB) systems; 5) Demand Control Ventilation; 6) Chilled Water and hot water loop outside air reset; 7) PremiumBuild america Bonds (BaB) efficiency motors retrofits; 8) Condensing boilers. Controls: 1) Installation of Energy ManagementClean Renewable energy Bonds (CReB): Eligible System; 2) Installation of SCADA system; 3) Vendingtechnologies include wind, closed-loop biomass, machine controllers; 4) CO sensors for parkingopen-loop biomass, geothermal, solar, small irrigation garages fans) 19power, landfill gas, trash combustion, hydropower or 1. Energy Conservation Assistance Accounta marine and hydrokinetic renewable energy facility Program (ECAA) low interest loans: Currentlyunder § 45(d) over-subscribed. 2. Production Tax Credit (PTC). CompaniesIn March 2010 Congress enacted H.R. 2847 (Sec. that generate wind, solar, geothermal and301) permitting “New” CREB issuers may make an “closed-loop” bio energy (using dedicatedirrevocable election to receive a direct payment -- energy crops) are eligible for the PTC,a refundable tax credit -- from the Department of which provides a 2.1-cent per kilowatt-hourTreasury equivalent to and in lieu of the amount of (kWh) benefit for the first ten years of athe non-refundable tax credit which would otherwise renewable energy facility’s operation. Otherbe provided to the bondholder. This option only technologies, such as “open-loop” biomassapplies to “New” CREBs issued after the March 18, (using farm and forest wastes rather than2010 enactment of the law. In April 2010 the IRS dedicated energy crops), incrementalissued Notice 2010-35 providing guidance on the hydropower, small irrigation systems, landfilldirect payment option18. gas and municipal solid waste (MSW), receive a lesser value tax credit of 1.0 centstate energy program: Eligibility includes energy per kWh 20efficiency and on-site solar electric or other on site 3. Business Solar Investment Tax Credit (IR Coderenewable energy generation improvements §48): The bill extends the 30% ITC for solar energy property for eight years throughenergy efficiency and Conservation Block December 31, 2016. The bill allows the ITC toGrant: According to state law, all eligible be used to offset both regular and alternativeprojects must focus on energy efficiency and minimum tax (AMT) and waives the publicmust be cost-effective. Typically, the most cost- utility exception of current law (i.e., permitseffective projects include, but are not limited to: utilities to directly invest in solar facilitieslighting: 1) T-12 lamps and magnetic ballasts to and claim the ITC). The five-year acceleratedT-8 lamps and electronic ballasts conversion; 2) T-8 depreciation allowance for solar property islamps (32 watt) to T-8 lamps (28 watt) conversion; permanent and unaffected by passage of3) HID and Incandescent street lighting to induction the eight-year extension of the solar ITC21.or LED street lighting conversion; 4) HID lighting forparking garages or lots to induction or LED lightingconversion; 5) Incandescent or fluorescent exit signsto LED exit signs; 6) Incandescent lamps to fluorescent 11
  • 12. energy Costs and RatesThe value of energy is established based on each energy versus demand. Utility tariffs have twoutility’s cost to produce and deliver that energy primary cost components, Generation/Energy andduring different times of the day. In the case of Delivery/Demand). For the electric industry, energyInvestor-Owned Utilities, they analyze how much is the quantity of electricity supplied or usedthey expect to spend in the future to provide power (consumed) by an individual customer, averageto utility customers, then they define the rates and customer, group of customers or class of service. Itjustification to the Public Utilities Commission (PUC), is the product of power (in watts) and the amountand, finally, the PUC accepts or rejects the tariff. This of time for which the power was used. Demand isprocess can play out multiple times a year as the the rate at which electric energy is used at a givencost to produce energy shifts due to world events, instant or averaged over a designated time interval.which may result in significant changes to the value In the examples shown above, energy is similar toof a customer’s energy project. For this reason, it very a car’s odometer and demand is similar to a car’simportant to understand how applicable utility rate speedometer.structures can affect the total utility bill and what thatmeans for your energy project. figure 3: time of usefigure 1: energy vs. demand (http:// www.think-energy.net/KWvsKWH.htm) (http://www.think-energy.net/KWvsKWH.htm)figure 2: energy vs. demand energy is billed out in dollars per total kilowatt-hours consumed and for most commercial customers at different rates depending on the Time-of-Use (TOU). For example, if the customer used 100kWh, 200kWh, and 500kWh during the On, Semi and Off-Peak periods over the course of a month, the bill would be: (100kWh x On-Peak Rate) + (200kWh x Semi-Peak Rate) + (500kWh x Off-Peak Rate) = Total Consumption $ (http://www.think-energy.net/KWvsKWH.htm) 12
  • 13. demand is generally billed out based on the under the customer’s capacity reservation will bemaximum demand value achieved during the month billed at the CPP-D Period rates.”of operation. For example, if the maximum demandreached by the customer was 100kW, the cost would “The customer shall be responsible for paying abe 100kW x Demand Rate = $ monthly Capacity Reservation Charge (CRC) for 12-months, as set forth in the Rates section, forCritical peak pricing (Cpp) is a new complex utility each kW of reserved capacity.” 22rate structure available to commercial customers.This new tariff can provide customers that have That last section is important because it states thatpredictable load needs, who are able to reduce customers will be paying for the insurance policy fordemand when called upon to do so, savings upwards every month of the year, even though CPP eventsof 15% on their current utility costs compared with only happen during the summer season and may notthe AL-TOU tariff. These customers must be willing happen at all. To put these costs in reference, a facilityto forgo the risk mitigation mechanism known as with a 100kW capacity level during the peak periodthe Capacity Reservation. However, the actual CPP of the day would have to spend $639 per month inutility costs compared with the standard commercial order to not incur the additional $1/kWh for energytariff (AL-TOU) are highly unpredictable due to a consumed during a CPP event. That’s an additionaldependence on the occurrence or non-occurrence of $8,000 a year spent on a mechanism designed toCPP events. insure against high energy costs. Customers do have the option to elect for any capacity reserve amountThe uncertainty of how many CPP events the including zero, but for customers who use largeutility experiences during the summer season will volumes of energy during summer peak periods, onedetermine the value of the CPP tariff for subscribing CPP day and no capacity reserve can result in verycustomers. In the case of SDG&E, the CPP tariff allows high energy costs for that month.SDG&E to call an event between 0 and 18 times a year,expecting to average around 9 days a year. While on Again, for frame of reference, a customer that averagesthe CPP tariff, the customer must establish a minimum a monthly maximum demand of 422 kW consumesneeded capacity reservation (CR) such that during an average of 30,000 kWh during the peak periodsa CPP event, if the customer is unable to reduce of each month at a peak price of $0.122/kWh duringdemand below the CR, that customer will experience non-event days for an average monthly peak periodhigher cost energy for every kilowatt-hour consumed energy cost of $3,660 during the summer season.while above that CR. Here’s the official definition: That breaks down to consuming approximately 1,250 “Capacity Reservation: Customers shall be provided with the option to self-select and reserve a level of generation capacity, specified in kW, that would protect that portion of their load from the CPP-D Period rates applicable during a CPP Event. Customers electing to reserve capacity for multiple meters shall be required to submit a separate reservation level for each meter. All usage during a CPP Event that is protected under the customer’s capacity reservation will be billed at the Non-CPP Event Day On-Peak period rate for CPP Events occurring on weekdays and the Off-Peak period rate for CPP Events occurring on Saturdays. All usage during a CPP Event that is not protected 13
  • 14. kWh during each peak period day of the month solar does not inherently offset demand charges, the(11AM-6PM, Monday - Saturday except Holidays), only way to reduce demand cost is to use demandor about $152 a day in peak period energy charges. limiting measures, or, in the case where limitingLet’s now assume the CR is set to zero and a CPP demand is not an option, changing to a tariff withday is called. That customer must now pay $1.107/ lower demand costs.kWh for every kWh consumed during the CPP event(peak period only), which in this example will result utility Bill Cost Composition. An electrical utility bill isin $1,377 of energy charges for that day instead of composed of a number of different charges. Demand,the $152, increasing the monthly peak period energy Consumption and other fixed fees and taxes. Thecharges from $3,660 to $4,885. Considering that CPP primary components of the bill are the Demand andevents are designed to motivate customers to shed Consumption charges. As demand charges composeload during the energy hungry periods when the more of the utility bill, onsite energy generationtemperature is high and many homes and businesses systems become less effective at offsetting a largeare consuming significant volumes of energy for the portion of the total bill because on site generationpurposes of cooling, it reasonable to assume that systems do not offset demand usage. In order towhen there is cause for one CCP event, there may be offset these demand charges, a combination of onsitecause for more. generation and a tariff with reduced demand rates is the most beneficial.tariff strategies 1. Maximizing Savings – In order toutility Billing (tou vs Non-tou). PIER research created an maximize savings, a combination ofUtility companies use different rate onsite generation and an electricity easy benchmarking processstructures when billing a customer tariff with reduced demand ratesfor their energy and demand use. to determine how well is the most beneficial. With thisUnderstanding these structures new tariff, the amount of annualcan be beneficial in choosing which each building in a school savings increases in a linear fashionapplicable tariff would be best district is performing. offsetting up to 100% of energyfor a specific site, especially when charges. Therefore, the maximuminstalling on site generation. There savings attainable is with a systemare Time of Use (TOU) rates and flat that produces 100% of the energybilling rates. In a TOU rate, energy consumption and/ costs along with an onsite generation “friendly”or demand electricity prices vary by specified time tariff. Unless one can accurately ensure the energyperiods of the day. In a time-of-use rate structure, usage of the building will not vary too muchhigher prices are charged during utility peak-load overtime, it is unwise to offset 100% of energytimes. Such rates can provide an incentive for costs as changes in energy usage and systemconsumers to curb power use during peak time. product can result in negative effects. 2. Maximizing Payback – Maximizing paybackIf demand is not a specifically called out component requires maximizing the value of kilowatt-hoursof a utility rate (only being billed on kilowatt-hour produced by the onsite generation system ($consumption), the demand component of usage savings/kWh production). This can only be doneis built into the $/kWh price for each period. For a with a combination of onsite generation and atariff that does not have TOU rates, the demand costs tariff change. Depending on the bill composition,are typically based on one price and the maximum the $/kWh as a function of system productiondemand usage measured over all 15-minute intervals can either increase or decrease with a largerduring that billing period. sized system. In the case where the value of system production decreases with increased size,TOU energy rates offer the best value for offset costsfrom solar, since PV system production is at its peakwhen energy costs are highest from the utility. Since 14
  • 15. installing a system that will produce the minimum for improvement as well as highlight facilities with amount of solar required by the new tariff will best practices. It is often viewed as the first step to yield the largest $/kWh value, which lowers the developing a cohesive and targeted energy plan. payback and initial project costs. However, if the There are a variety of tools available to accomplish $/kWh increases with increased system size, then the task of tracking and comparing consumptions installing the largest system (up to offsetting across multiple facilities. The Energy Star Portfolio 100% of energy charges) will yield the highest $/ Manager is viewed as the industry standard and many kWh value and the lowest payback. In summary, new incentive and funding opportunities will require maximizing the value of the energy produced will Energy Star Benchmarking in order to participate, result in the fastest payback. therefore, we encourage the use of the Energy Star toolkit. Most engineering consultants should beaccessing Your energy Consumption data aware of or knowledgeable in using benchmarkingThe absolute first step to understanding your tools, and the Energy Star toolkit is considered theconsumption is to obtain access to your consumption standard by which other tools are compared.data from the local utility. Energy consultants willneed this data to target the systems for savings and Creating an energy planalso as inputs for the school benchmarking. For The resource document titled, “Planning for Energyschool meters using the standard commercial utility Efficiency,” by California’s Coalition for Affordabletariff AL-TOU, detailed consumption data is available School Housing does a fantastic job of outlining thethrough a variety of channels: various elements of a district wide Energy Plan and1. direct from the utility account manager – Many school board resolution. They also include a Sample utilities have account managers that work as Plan that any district can adopt to their own needs direct contacts for large customers. These account and we encourage you to make use of this resource. managers will work with utility customers to help them understand tariffs, obtain consumption data and run “what if” scenarios for changing tariffs.2. downloadable from energy Waves – SDG&E provides a quick portal where all customers (residential and commercial) can quickly enter in their account information to receive consumption and billing data for the most recent 18-months.3. downloadable from kWickView – For customers with a time-of-use meter (anyone on AL-TOU or CPP has a TOU meter) that is tracking and monitoring 15-minute interval data. The web portal also has some basic analysis tools that will allow you to make portfolio consumption comparisons and to download the data in both aggregated and 15-minute interval formats. Meters on the non-TOU A rate are only available through Energy Waves.BenchmarkingBenchmarking the energy consumption of a facilityagainst similarly functioning facilities is an excellentenergy management method that will result in abetter understanding of how energy is used by eachfacility and district that may help to identify areas 15
  • 16. CHapteR 3project development and ManagementProject scoping is often established by installation approach to designing the various building systemscontractors as part of the free bid development for efficiency and creating system synergies aroundto a prospective client. The more prudent process intended results, such as designing a roof to maximizeof determining the site needs and project scope the available square footage for the installation ofis to conduct a pre-project feasibility assessment solar. Retrofit projects are generally constrained byeither utilizing in-house experts or qualified, the existing facility footprint and infrastructure layoutindependent third-party engineering consultants such that the new system must seamlessly integratethat will not financially benefit from into the old design. In many ways, the retrofit projectthe installation of the project. The is defined by the technical andresulting study should identify not Throughout California, economic constraints of existingonly the potential for energy cost systems; whereas new constructionsavings, but also should layout the local government requires must contemplate how to designmanufacturer agnostic project scope permits for residential and the infrastructure systems to easilyassociated with those savings. accommodate the desired building commercial solar projects functions, such as maximizing Third Party Assessments are a daylighting by designing the facility (there are more than 550 way for a client to insure the such that each room has easy access scope of the project is based on local jurisdictions). to installing skylights. the site need, not the product line being sold by a vendor. Additionally, the benefits of a retrofit project are typically related to improving uponAlthough most contractors/vendors do not overtly historical consumption patterns and costs. Newintend to mislead their clients, they do typically have a construction projects make assumptions as to howvested interest in expansion of the project scope and each system will be utilized, but the actual economicmay bolster their savings information and benefits to benefits may not be fully understood until after themake the project appear more attractive. Having a facility is in operation and use patterns are defined.third party perform a separate rates analysis, annual Therefore the economic basis for specific systems willsavings calculation and system payback provide generally be more accurate for a retrofit project thanthe client with an alternate opinion from which to a new construction project.compare vendor proposals in order to assist in thedecision making process. This helps the project owner developing an Rfpbecome objectively informed about the potential A Request for Proposal (RFP) is essentially a way to tellproject scope and benefits. In the case of solar Power prospective vendors what work you want done, howPurchase Agreements (PPA), third party assessments you want them to do it and when the bids and workcan determine what the facility owner can afford to are due. An RFP also helps you to create a structure topay to a PPA provider for the electricity produced by organize your needs and timeline.the system. The content of the RFP should contain a statementproject planning New Construction versus Retrofit of work that provides details of the site needs;The approach to planning a new construction project desired results; background material on the project;versus conducting a facility retrofit starts with theproject intent. Planning a new construction projectis complex to develop, but allows for a more holistic 16
  • 17. a schedule that specifies when activities should identifying Qualified Contractorsbe completed and deliverables are due; specifics Projects are commonly identified and initiated byon vendor responsibilities; details on the bidding; contractors and vendors looking to do the workproposal evaluation method and selection process; for the client. While this is an easy approach for theand details on payment amounts and methods. A client, as the contractor provides cost estimates andsample solar RFP developed by UCSD around a power performance expectations, it lacks the diversity andpurchase agreement can be viewed here. Additionally, due diligence a comprehensive bid process offersthe Energy Services Coalition has the client. By developing the worksome good resource documentation A school installing a scope independent of the installingon RFPs for energy performance contractor and then putting thecontracts for energy efficiency. 250kW PV system within work out for bid, a client is more the city of San Diego may likely to receive a variety of solutionsGoals and objectives – Goals and and pricing aimed at meetingobjectives refer to the anticipated see permitting fees up to the goal, not necessarily aimedproject outcomes. Goals and at selling a product. However, as $1,200.objectives should be stated clearly with any bid, identifying qualifiedand include quantifiable targets. contractors can be tricky, but is critical to getting quality, actionableJustification/technical Merit – What is the importance bids. CCSE maintains a list of licensed contractors byof the project and why is it needed? Where is it service type that is routinely managed to eliminatelocated? What is the context of the project in terms of contractors with formal complaints against them oraccomplishments? Is the action tied to or identified who are non-licensed.in an existing plan? What is the basis for the activity(extent to which the project is based on analysis andidentification of limiting factors).experience – Applicants must show capacity toimplement the scope and scale of the proposed workand the ability to successfully complete the projectwithin the proposed budget and timeline.Budget/Cost effectiveness – The budget descriptionshould detail all funds requested and all matchingfunds and in-kind contributions and follow the budgetformat provided. It should also include informationon whether matching funds and other contributionsare pending or secured. CCSE Vendor Listevaluation of project proposal - The Department of http://energycenter.org/index.php/resource-center/State Architecture RFP evaluation criteria included vendor-listthe following categories: Solar Contractors1. Certification of the Stipulated Sum as prerequisite http://www.gosolarcalifornia.ca.gov/database/ to further evaluation of the proposal; search-new.php2. Designated Subcontractors; SWH Eligible Contractors3. Design and Construction Management Plan; http://energycenter.org/index.php/incentive -4. Small Business/DVBE Utilization Plan; programs/solar-water-heating-pilot-program/5. Building Systems Description; and eligible-contractors-list6. Quality Enhancements23. 17
  • 18. Managing the project timelineProject timelines are typically determined by site Joint purchase agreements (Jpa)need and construction lead times, but more recently, Joint purchase agreements leverage multiple projectsmust synergize with project financing and incentive and multiple site owners in order to receive reducedtimeline requirements as well. Many energy projects contract pricing based on economies of scale. Forare now eligible for lucrative tax incentives and state example, a solar project developer may be able torebates that define the maximum time available achieve reduced hardware costs for a single contractto complete the project. For example, the 30% that is requesting five MW of solar versus five discretedepreciation tax rebate available to solar generation contracts looking for one MW of solar each. On thesystem owners sunsets at the end of 2010, therefore energy efficiency side, planning for lighting retrofitsthe project timeline must take that into consideration under a JPA will result in lower equipment costs andwhen determining the project viability over time. Many competitive labor rates due to the size of the potentialincentive programs also have project completion contracts. The difficulty with a JPA is refining the clienttimelines and deliverable dates that must be satisfied needs such that there is enough commonality in thein order to maintain incentive eligibility. project scope to result in project cost reductions. Regional school districts are good candidates forAdditionally, some retrofit projects will inherently this type of activity because the parallel needs anddisrupt daily operations, so consideration must be similar operating conditions should simplify themade, such as planning work during off-hours or in JPA scope enough to warrant cost reductions; Andphases, so as not to create disturbances to normal daily supervising agencies such as the San Diego Countybusiness operations. For example, lighting retrofits Superintendent of Schools is well suited to supportfrequently require work to be performed during this activity.off-hours, but can be planned and accomplishedin phases by area, so as not to leave any occupants Validating post-project impact (Continuouswithout light or accessibility to building areas. Commissioning) Confirming the resulting impact of the installed project on energy usage and utility costs can be tricky and sometimes difficult to quantify, if this process was not considered prior to construction. In the case of energy efficiency, it is incredibly valuable to include discrete system load monitoring by installing low cost metering solutions that will directly monitor and report the energy consumption associated with that system. Most incentive programs will require some form of post-project validation or metering in order to receive the incentives. 18
  • 19. CHapteR 4energy efficiency strategies and MeasuresThe adoption of increasingly energy efficienttechnologies, energy management systemsand operational best practices create recurringenvironmental and economic benefits for the facilityand its community. Energy efficiency improvementsare widely accepted as the first and most effectiveway to reduce utility energy consumption costs andcan dramatically reduce the costs of a DG projectby reducing the amount of capacity needed fromthe DG system. Many energy related state incentiveprograms require some form of energy efficiency auditand evaluation in order to improve the value of theprogram objectives and are driven by the CaliforniaEnergy Commission’s reports on ImplementingCalifornia’s Loading Order For Electricity Resourcesand the Long-Term Energy Efficiency Strategic Plan. In some cases, the benefits of an energy efficiency upgrade may be neutralized by not adhering toTo reiterate what was mentioned in Chapter 2, a key intended operational criteria, thereby defeating theconcept that is being repeated in many new state and purpose of the project. Such is the case when thefederal energy efficiency programs is benchmarking. facility has a zonal HVAC system, but personnel optNew programs will require participating entities to use costly plug-in electric space heaters instead ofto benchmark their buildings using the Energy coordinating with facilities maintenance to properlyStar Benchmarking system. This provides a way adjust the zonal controls.to compare each facility’s energy consumptionagainst the average consumption of similar type In all cases, the operations protocol surroundingand use facilities. This comparison creates a better each building system should be pre-defined by theunderstanding as to what is “common” use and system manufacturer and/or the system engineerhighlights where there may be distinct opportunities based on the project scope and targeted savingsto save energy. opportunities. The operations protocols should be readily available to facility operators along with highfacility operations and Maintenance quality operational training and education. EnergyBy effectively operating, monitoring and managing monitoring systems greatly improve the operationalfacility energy use, schools can reduce energy costs feedback loop to facility managers, creating a way toby up to 20%24. The operation of a facility primarily quantify the impact of specific operational changes.consists of marrying site specific behavioral energy Having an annual re-commissioning schedule forconsumption with cost effective use conditions to building systems provides a way to recalibrate theprovide both a comfortable and efficient educational operational conditions to adjust for constantlyenvironment. The act of maintaining those systems changing energy consumption patterns and buildinghelps prevent deterioration of effective use and system capabilities, which in turn optimizes theprevents operational disturbances caused by system project payback over the life of the system.failures. 19
  • 20. As a part of the every completed energy project, automatic and consistent feedback on events annual review of the financial impact associated and system disturbances/failures. Installing an with that project is imperative to understanding EMS related to demand response initiatives can the continued value of each system as it relates pay for the EMS system outright many times over to the intended financial outcome. The method through utility incentive programs such as the TATI for this analysis should be considered as part of program and can satisfy eligibility requirements operational protocols and determined during the for alternative utility rates that reduce energy installation of the project. costs for demand response compliant customers.The following are high quality measures for Retrofitting existing facilitiesmonitoring and managing energy usage. Frequently, the structural “bones” of a facility are1. sub-Metering – In certain situations, it may not maintained while the internal systems are modified or be practical for a utility to individually meter each replaced until the cost to modify or replace the internal tenant or building, nor is that cost effective for the systems exceeds the costs to construct a new structure end-user, since most commercial utility tariffs bill altogether. For schools, there is a mountain of data that demand charges based on the highest demand supports a systematic approach to energy efficiency value in each month. Therefore, sub-metering retrofits based on operational characteristics and cost is an effective way to monitor consumption for effective technology upgrades. For example, lighting discrete portions of the site energy use. The utility retrofits have excellent payback periods because company reads only the master meter(s) of the proper lighting is needed throughout the facility and site and it is the duty of the owner to monitor and the technology improvements are consistently and manage the sub-metering data. For schools, this dramatically reducing lighting energy consumption. can help to identify and target specific areas of target systems high energy consumption. lighting2. energy Management Compact Fluorescent and systems (eMs) – The term LED Lighting (Task Lighting) Energy Management – One of the easiest energy System generally refers to savings measures to a computer system which implement for lighting is to is designed specifically for replace any incandescent the automated control and task lighting bulbs with monitoring of the heating, compact fluorescent ventilation and lighting lighting(CFL). These CFL needs of a building or bulbs can be swapped out group of buildings such for incandescent without as university campuses, having to buy new fixtures office buildings or or ballasts in most cases. For factories. Most of these recessed lighting, special energy management CFL bulbs will need to be systems also provide purchased because of the facilities with the ability increased heat associated to electronically collect and with the enclosed recessed read electricity, gas and water meters25. The data space. Light emitting diodes (LED) are viewed as obtained from these can then be used to produce the next generation of lighting technology since trend analysis and annual consumption forecasts. They also support the management of energy usage in the building or facilities and provide 20
  • 21. they generally consume ¼ the energy of a typical much higher frequencies (20KHz and up) thanCFL, but the technology cost proposition still the standard 60 Hz at which magnetic ballastslimits use to niche or demonstration projects. operate lamps. Electronic ballasts generally provide significantly less power consumption with only a slight reduction in light output compared with using magnetic ballasts. There Turn off lights when not in are some electronic ballasts with higher ballast factors (as high as 1.2) that produce more light use—lighting accounts for than magnetic ballasts, but as with all things, nearly 50% of the electric cost is a factor. bill in most schools. Induction lamps operate similar to fluorescent lighting with the exception that they are void of contact electrodes. Induction lamps conductFluorescent and Induction Lighting (Classrooms the energy to the gas using an electro-magneticand Hallways) – The most common lighting field, which in turn extends the life of the bulbfound in classrooms and hallways are linear significantly while reducing energy consumptionfluorescent lighting. Fluorescent bulbs illuminate as much as 40% compared with similarlywhen the mercury in a gas filled lamp is excited specified fluorescent bulbs. Induction lighting isby electricity; resulting in the emission of UV generally costlier than fluorescent lighting butradiation that in turn is converted into visible as costs come down, induction lighting appearswhite light by the phosphor coating on the bulb. to be the next generation of effective lightingThe phosphor coating determines the color solutions.qualities of the light. Fluorescent lamps useelectrodes to strike the arc and initiate the flowof current through the lamp, which excites the Energy comprisesgas fill. approximately 80% to 90%Each time voltage is supplied by the ballast and of the annual cost, andthe arc is struck, the electrodes degrade a little, between 65% and 85%eventually causing the lamp to fail. T12 lamps andmagnetic ballasts are high energy consuming of the life cycle cost of alighting and should be replaced with electronicballasts and T8 lamps whenever possible. T8 lighting system.lamps require electronic ballasts specificallydesigned to operate lamps at a lower current thanT12 lamps. Whenever T12 lamps are replaced High Bay Lighting (Gymnasiums) – In high baywith T8 lamps, the ballast must also be replaced. areas such as gymnasiums where natural daylightElectronic ballasts offer lots of advantages over is sometimes limited, switching lighting typesmagnetic ballasts such as no flicker, less heat, can be incredibly cost effective. The lightingmuch less noise and the ability to operate as most common in gymnasium areas today is highmany as four lamps to a single ballast. Some bay metal halide. Induction lighting is quicklyoffer dimming, soft start, rapid start, instant start becoming the best alternative to metal halideand programmable start. Programmable start lighting. Induction lamps are ideally suitedballasts are used in conjunction with motion for high-ceiling applications where the lampssensors or dimming photosensors.Electronic ballasts operate fluorescent lamps at 21
  • 22. are difficult, costly or hazardous to access. Theincreased costs occurs in the induction systemsthemselves – which could be 2-3 times morethan metal halide systems, and also in newfixtures, which can inflate payback periods andreduce return on investment. It is also possiblewith high-bay induction lighting to get upwardsof a 30% reduction in capital and operatingcosts immediately from the reduced number offixtures made possible by the higher light output.Apply that over ten years, plus replacement andmaintenance costs, and suddenly it makes a lotof sense to consider induction lighting systems.Over the long term period induction lighting is can get by on daylighting alone, so a commonthe best high-bay alternative, but for a short term compromise is the use of multiple levels of lightsolution, high output T-5 fluorescent fixtures activation switching. The perimeter offices of amay also be an effective solution26. building with outside exposures can have some lamps in each fluorescent ceiling fixture on oneAccent, Parking and other Ancillary Lighting – control switch and the balance of the lamps onInduction lighting is an effective solution for another, allowing for the stepping up of lightoverhead parking area lighting. Cove lighting, output based on external light availability. Forpathway lights and other accent lighting are example, three lamp fixtures permit four levelsgood niche applications for LEDs. LEDs work of lighting: off, one, two and three lamps. In largeespecially well in conditions where it is cold, such open offices, exterior hallways or classroomsas exterior path lights for night time illumination. with perimeter daylighting, the outermost rowIf exterior lighting loads are metered separately of lights can be controlled separately; supplyingfrom building loads, there may be unique savings lighting only when a photosensor indicatesopportunities related to tariff utilization and the daylight is inadequate. The additionaldistributed generation. cost for controlled lighting can be recouped through the resulting savings andDaylighting - Using external light occupant’s comfort associated Using Energy Starto illuminate an interior space is with daylighting. Exterior lightingexcellent opportunity to reduce equipment can save 50% (building, parking and pathwayenergy consumption in areas lights) should be put on timers or on energy costs. photosensors to reduce exteriorwhere accesses to externalwalls and the roof are possible. lighting during day light periods27.There are retrofit technologies that supportthe introduction of external lighting to interior Heating, Ventilation and air-Conditioning (HVaC) –spaces through roof and wall penetrations. It is critically important that retrofitted packaged units need to be properly sized for the intended applicationLighting Controls – Synergizing with energy instead of simply replacing the unit with a similarlymanagement systems, lighting controls help sized unit. The standard operations of a facility mayreduce operating costs by controlling the amount change compared with the original designed use,of artificial light in unoccupied or naturally therefore a system replacement should take theday lit areas. For areas with skylight or large current operating use into consideration. A commonsouth facing windows, continually dimmingphotosensors can be used to take advantage ofand maximize the natural daylight. Few offices 22
  • 23. theme addressed throughout this document holds fans and pumps – For the schools with large HVACtrue for HVAC systems as well: abide by or exceed title equipment that serves large buildings with multiple24 code for any HVAC ductwork retrofit. zones, installing variable frequency drives (VFDs) Cooling – A majority of schools in San Diego on the motors of the fans and pumps can reduce County have Roof Top Units (RTUs) as their primary energy costs by running the fan at a graduated source of heating/cooling. RTUs offer individual output based on air flow need. Adding control zone conditioning, where extending or replacing sequencing to optimize the operation of the pumps a centralized HVAC system is cost prohibitive. and fans can further increase energy savings. Older units may need replacing if their Seasonal Energy Efficiency Ratio (SEER) is significantly Minimize plug load use –Unplugging appliances lower than their modern counterparts. Newer over extended break periods, providing timed units offered by some manufacturers (Carrier, operation power strips and implementing Trane, York, etc) offer SEER ratings of about 15 operational plans to make sure computers, monitors SEER. The higher the SEER rating, the better the and other daily use systems are turned off each efficiency and, therefore, energy savings. night will minimize the cost of always-on plug- loads. Plug loads should be Energy Star rated. Heating – Most of the space heating for San Diego County schools is provided by the same Building envelope - Increasing wall insulation RTUs mentioned above. The domestic hot thickness or replacing insulation with higher R value, water system can save energy by switching replacing windows with dual pane or low energy from the traditional storing of heated water windows and instructing staff to lower blinds and in insulated tanks to “tankless” or on-demand close curtains in the summer saves energy. Closing hot water heaters. Though tankless units cost curtains or blinds will reduce the radiant contribution more than most conventional water heaters, of the light and also reduce the conduction of thermal they’re cheaper to operate because energy isn’t energy (heat) through the window. An air space is required to maintain a large tank of hot water created between the blinds and the window that, 24 hours a day. As with any heater, natural gas since air is an outstanding insulator, increases the is preferred over electric as the heat source resistance to heat flow. Utilizing vestibules can be an due to lower emissions and energy costs effective energy saving measure. compared with standard utility grid electricity. A double set of doors reduces a major portion of theRefrigeration – Schools do not have large refrigeration building load attributed to the envelope, exfiltrationloads, however replacing large commercial and infiltration. The double set of vestibule doorsrefrigerators and freezers with newer more efficient greatly reduces the flow of air through an entrance.energy star rated commercial refrigerators is an option Automatic operation prevents a clear passage for airfor reducing refrigeration load. A new ENERGY STAR flow, since one set of doors is always closed. Also, thespecification for commercial refrigerators and freezers volume of air trapped between the portals acts as abecomes effective January 1, 2010. On average, buffer to the transfer of heat through the vestibule.ENERGY STAR qualified products covered under When there is no traffic, the trapped volume, or air,this new specification will be more than 30% more is an effective insulator that increases the thermalenergy efficient than standard options. To encourage resistance of the passageway.customers to buy energy efficient products, ENERGYSTAR partners occasionally sponsor special offers, such The critical exposures of a building in the northernas sales tax exemptions or credits, or rebates on qualified hemisphere are those facing south and west. Theyproducts. Partners also occasionally sponsor recycling receive the most direct sunlight in the summer andincentives for the proper disposal of old products. account for a majority of the building’s summer 23
  • 24. heating load. Trees can shade the walls and even the schools, grocery stores, hotels and hospitals. Thisroof of small structures. Deciduous trees, in addition, interactive energy management tool allows you towill lose their leaves in the winter to expose the track and assess energy and water consumptionbuilding to the warming sunlight28. across your entire portfolio of buildings in a secure online environment. The LEED for ExistingWeather-stripping doors can reduce the amount Buildings Rating System helps building ownersof outside air infiltration as well as prevent and operators measure operations, improvementsconditioned air from leaking out of the building. and maintenance on a consistent scale, with theConsider retrofitting your roof insulation to a goal of maximizing operational efficiency, whilerigid R-30 (zone 7) panel or adding insulation minimizing environmental impacts. LEED for Existingup to a R-39 (zone 10) value to your attic. Buildings addresses whole-building cleaning and maintenance issues (including chemical use),Kitchen appliances - The single most intensive recycling programs, exterior maintenance programsuser of electricity in an institutional facility, such as and systems upgrades. It can be applied both toa school or hospital, is the kitchen. This is especially existing buildings seeking LEED certification for thetrue of a kitchen in which most of the appliances are first time and to projects previously certified underelectric. An expensive but potentially worthwhile LEED for New Construction, Schools or Core & Shell30.project is to convert an all electric kitchen to gasappliances that are cleaner, more efficient and energy star and leed New Construction Guidelinescheaper to operate. There are many incentives – The LEED for New Construction Rating System isavailable for Energy Star rated appliances29. designed to guide and distinguish high-performance commercial and institutional projects, includingenergy star and leed Benchmarking for existing office buildings, high-rise residential buildings,Buildings – The EPA has made benchmarking easier government buildings, recreational facilities,by providing a national energy performance rating manufacturing plants and laboratories31. Prerequisitessystem, currently available for office buildings, K-12 and credits in the LEED 2009 for New Construction and Major Renovations addresses 7 topics: Sustainable Sites (SS), Water Efficiency (WE), Energy and Atmosphere (EA), Materials and Resources (MR), Indoor Environmental Quality (IEQ), Innovation in Design (ID) and Regional Priority (RP). LEED 2009 for New Construction and Major Renovations certifications are awarded according to the following scale: Certified 40–49 points, Silver 50–59 points, Gold 60–79 points, Platinum 80 points and above32. 24
  • 25. CHapteR 5distributed energy ResourcesDistributed energy resources (DER) provide energy The high, up-front capital costs of most DER projectsconsumers with a way to become more self-sufficient constitute the greatest barrier to widespreadin their power needs while at the same time improving technology adoption, which, in-turn, has lead toenergy reliability and cost savings on the formulation of various projecttheir utility electric bill. The district estimates financing models. Specifically, the solar industry brought the concept ofThe term “distributed energy potential savings of up to a power purchase agreement (PPA)resources” encompasses power to the DER market in order to capturegeneration and storage technology $3 million a year if all of the the federal tax credit on projectsapplications for electricity at district’s school roofs were where the end-user is a nontaxabledistribution voltage levels designed entity. While reducing barriers toto address on-site energy needs. In made solar. adoption, revolutionary financingterms of energy generation capacity, models may be less understood by20 megawatts and below are the end-user resulting in higher-considered to be “distributed.” risk transactions and increased uncertainty in the economic payout to the end-user, which is unchartedSince 2001, the California ratepayer-funded Self- territory.Generation Incentive Program (SGIP) has providedrebates for projects installing eligible distributed The following sections highlight the key parametersgeneration (DG) technologies for systems that offset for consideration when exploring a new DER project.some or all on-site energy needs. Prior to 2001,generating your own energy meant you fit a small solar photovoltaics (pV)niche market of high-volume consumers that needed Photovoltaics (PV) literally means “light-electricity”firm power backup in the event of grid-power failure and is the process of converting sunlight intoor a way to offset high-priced peak period utility electricity. The term “photo” comes from the Greekcosts. word “phos” or light, and “volt” was derived from Volta (1745-1827), a pioneer in the study of electricity.Today, DER technologies provide a viable way fora much larger audience of energy consumers to PV is maximized by facing south and/or west andreduce their annual electricity bill by generating grid- generally requires large tracts of open space withparallel power under a net energy metering (NEM) minimal shade obstructions (trees, buildings, high-agreement with the utility. Advanced energy storage terrain, etc) throughout the year.(AES) will be the cornerstone of California’s futuresmart-grid in that the technology became eligible for The following technologies are available and are theincentives through the SGIP in 2008, and the CPUC prevalent means of chemically generating electricityplans to continue to provide AES incentive funding from solar photons.through the life of the program. To the renewableenergy industry, AES is seen as the holy grail of Crystalline – Historically, crystalline silicontechnologies that would change renewable power (c-Si) has been used as the light-absorbingfrom being dependent upon the availability of the semiconductor in most solar cells and haswind and sun to generating clean energy that is firmand dispatchable. 25
  • 26. proven convenient because it yields stable solar specifically designed for rooftop installations. cells with good efficiencies of about 11-16% using process technology developed from the traditional modules – A traditional PV module huge knowledge base of the microelectronics consists of a number of interconnected solar cells industry. Two types of crystalline silicon are (typically 36 connected in series) encapsulated used in the industry, monocrystalline and into a single, long-lasting, stable unit The two multicrystalline33. key functions of encapsulation are to prevent mechanical damage to the solar cells and to thin-film solar cells – The high cost of crystalline prevent water or water vapor from corroding the silicon (c-Si) wafers (40-50% of the cost of a electrical contacts35. finished module) has led the industry to look at cheaper materials to make solar cells. Thin-film Cylindrical – Employs cylindrical modules technologies are all complex. Some thin-film that capture sunlight across a 360-degree materials show degradation of performance photovoltaic surface capable of converting over time with stabilized efficiencies 15-35% direct, diffuse and reflected sunlight into lower than initial values. Thin films are also less electricity. These are lightweight and the panels efficient (production modules range from 5 to allow wind to blow through them. These factors 8%) than c-Si cells, but even so, thin films are enable the installation of PV on a broader range potentially cheaper than c-Si because of their of rooftops without anchoring or ballasts36. lower material costs and larger substrate sizes34. Concentrated pV cells – Solar cells usually operate more efficiently under concentrated light. This has led to the development of a range of approaches using mirrors or lenses to focus light on to specially designed cells and use heat sinks, or active cooling of the cells, to dissipate the large amount of heat that is generated. Unlike conventional flat-plate PV arrays, concentrator systems require direct sunlight (clear skies) and will not operate under cloudy conditions. They generally follow the sun’s path through the sky during the day using single-axis tracking. To adjust to the sun’s varying height in the sky through the seasons, two-axis tracking is sometimes used37. The decisions regarding where the PV will be installedOne of the confusing aspects of the solar market is and how to secure the PV system in place are anythingthe ever-growing number of ways photovoltaics can but trivial. In most cases, the size and layout of the sitebe applied on a project. PV manufacturers have taken will determine the applicable installation method bythe above conversion methods and designed a bevy restricting the area available for solar. The followingof applications to install PV at a facility. This is because is a short summary of the various mounting methodseach project is unique and has unique conditions and their advantages/disadvantages.under which the project must conform to in order tobe successful. For example, an older building may notbe able to support the roof load of a standard moduleinstallation and therefore must consider a ground-mount solution or alternatively, cylindrical modules 26
  • 27. fixed systems (most common) are positioned to Ground-mounted systems commonly involve agenerate the most annual energy possible from a steel or aluminum frame, often one that could befixed azimuth and tilt angle. These systems can be adopted for building use, attached to a concretedesigned to maximize total energy production at foundation. This system can provide easy accessa space-constrained site by making sure to avoid to the modules and is generally an affordableseasonal shade objects while packing in the solution that can take advantage of open areas.modules at high density. This method maximizes In areas with high wind considerations, ground- mounted (nonpole) options are ideal. Several Solar thermal, wind and areas have restrictions on ground-mounted photovoltaic systems – in California, solar panel photovoltaic applications are installation permits can be denied on aesthetic exciting technologies that grounds (among others)39. can be used to teach students Building integrated PV is just that, PV integrated into the material components of the facility about science, ecology and architecture. Building integrated PV tends to the environment. be focused on more than just producing the lowest-cost energy and therefore has a price per kilowatt that is higher than less integratedkilowatt-hour production per available area. solutions. Some examples are roof- integrated tile panels and bifacial solar windows that allowtracking systems follow the daily path of the sun natural light through spaces between the PVin order to maximize kilowatt-hours produced cells.per kilowatt of solar installed. In essence, atracking system gets more kilowatt-hours out pedestrian shade structures are used toof each kilowatt of capacity than a fixed system. maximize space with a pedestrian purpose suchTracking systems can improve the electrical as parking, walkways or other outdoor activityproduction efficiency of the installed kilowatts spaces. This application holds more value inof solar by as much as 20% over fixed systems. areas of the country where insolation is higherHowever, tracking systems are space hogs due to such as in the Southwest. The basic concept is athe need to design each tracker such that it doesnot cause shading on one of its neighboringtrackers. It is for this reason that trackers aresuited for systems where space is not a concernsuch as utility scale projects.Roof-mounted solar power systems are solarmodules (solar panels) that are integrated into,or mounted on top of, the structure of a roof.Usually, the best location for solar modules is asouth-facing roof, but roofs that face east or westmay also be acceptable. Flat roofs also work wellfor solar power systems because solar modulescan be mounted flat on the roof facing straightup or fixed on frames tilted toward the south atan optimal angle38. 27
  • 28. structure is installed that will allow the PV system 1. Direct gain: Materials that absorb and store to be mounted on an elevated platform that the sun’s heat can be built into the sunlit will also provide shade for cars and pedestrians floors and walls. The floors and walls will then beneath the solar canopy. Shade structures are heat up during the day and slowly release often used with sites that have large parking or heat at night, when the heat is needed most. paved areas and minimal roof space. 2. Sunspaces: A sunspace (which is much like a greenhouse) is built on the south side of a building. As sunlight passes through glass orsolar thermal (see previous section for update) other glazing, it warms the sunspace. ProperSolar thermal technologies capture heat energy from ventilation allows the heat to circulate intothe sun to drive turbine generators, heat domestic the buildingwater and power space conditioning units such 3. Trombe walls: A trombe wall is a very thick,as absorption chillers. Due to added cost and large south-facing wall, which is painted black andscale of the required generation equipment needed made of a material that absorbs a lot of heat.to generate power from solar thermal capture, A pane of glass or plastic glazing, installedsolar thermal power generation is primarily a utility a few inches in front of the wall, helps holdscale application. Solar water heating and space in the heat. The wall heats up slowly duringconditioning are well suited for facility applications the day. Then as it cools gradually during thebecause of flexible scalability. night, it gives off its heat inside the building40. solar hot water (active and passive) – One of the most cost-effective ways to include renewable technologies into a building is by incorporating solar hot water. Solar water heaters use the sun to heat either water or a heat-transfer fluid in the collector41. Heated water is then held in the storage tank ready for use, with a conventional system providing additional heating as necessary. Solar water heating systems can be either active or passive, but the most common are active systems. Active systems rely on pumps to move the liquid between the collector and the storage tank, while passive systems rely on gravity and the tendency for water to naturally circulate as it is heated42. solar cooling – Space cooling can beSolar thermal applications are suited for large open accomplished using thermally activated coolingarea with minimal shade trees or other obstructions systems (TACS) driven by solar energy. Becausesuch as rooftops. of a high initial cost, TACS are not widespread. The two systems currently in operation are solar passive solar heating – Many of the passive absorption systems and solar desiccant systems. solar heating design features also provide Solar absorption systems use thermal energy to daylighting. Of course, too much solar heating evaporate a refrigerant fluid to cool the air. In and daylighting can be a problem during the hot contrast, solar desiccant systems use thermal summer months. Fortunately, there are many energy to regenerate desiccants that dry the air, design features that help keep passive solar buildings cool in the summer. 28
  • 29. thereby cooling the air. These systems also work then used to run a generator or alternator towell with evaporative coolers (also called swamp produce electricity.coolers) in more humid climates43 3. Power tower systems: A power tower system uses a large field of flat, sun-tracking mirrorssolar ventilation (used to preheat air) – Many known as heliostats to focus and concentratelarge buildings need ventilated air to maintain sunlight onto a receiver on top of a tower. Aindoor air quality. In cold climates, heating this heat-transfer fluid heated in the receiver isair can use large amounts of energy. But a solar used to generate steam, which, in turn, isventilation system can preheat the air, saving used in a conventional turbine generator toboth energy and money. This type of system produce electricity. Some power towers usetypically uses a transpired collector, which water/steam as the heat-transfer fluid. Otherconsists of a thin, black metal panel mounted advanced designs are experimenting withon a south-facing wall to absorb the sun’s heat. molten nitrate salt because of its superiorAir passes through the many heat-transfer and energy-storagesmall holes in the panel. A capabilities. The energy-storagespace behind the perforated A grid neutral environment capability, or thermal storage, allowswall allows the air streams from the system to continue to dispatchthe holes to mix together. The could save $21.5 million electricity during cloudy weather orheated air is then sucked out per year and as much as at night45.from the top of the space intothe ventilation system44. 30 thousand tons of CO2 Cogeneration The term “cogeneration”, also known emissions each year.Concentrating solar – A new as combined heat and power (CHP),generation of power plants that simply means that a generationuse the sun as a heat source are concentrating system is producing both usable heat and electricity.solar power systems. There are three main types Until recently, that term was synonymous withof concentrating solar power systems. internal combustion engines and large gas turbine1. Linear concentrator: Linear concentrator systems. However, other technologies such as systems collect the sun’s energy using long, microturbines and fuel cells are now commercially rectangular, curved (U-shaped) mirrors. The available that also fit the cogeneration concept. Solar mirrors are tilted toward the sun, focusing thermal power generation could also be considered sunlight on tubes (or receivers) that run the cogeneration if the scale of the systems was such that length of the mirrors. The reflected sunlight some of the captured heat energy were usable by the heats a fluid flowing through the tubes. facility. The hot fluid then is used to boil water in a conventional steam-turbine generator to Cogeneration is typically suited for sites with a produce electricity. large consistent thermal load (water heating, food2. Dish/engine: A dish/engine system uses a processing, manufacturing, etc) that also have a mirrored dish similar to a very large satellite consistent electrical base load greater than the dish. The dish-shaped surface directs and generation system capacity (i.e. a base-load of 75 kW concentrates sunlight onto a thermal for a 60kW microturbine). receiver, which absorbs and collects the heat and transfers it to the engine generator. The Microturbines – Microturbines are small most common type of heat engine used combustion turbines, approximately the size today in dish/engine systems is the Stirling of a refrigerator, with outputs of 25-500 kW. engine. This system uses the fluid heated by the receiver to move pistons and create mechanical power. The mechanical power is 29
  • 30. Microturbines offer a number of potential steam turbines – Steam turbines are one ofadvantages over other technologies for small- the most versatile and oldest prime-moverscale power generation. These include their technologies still in general production.small number of moving parts, compact size, Conventional steam turbine power plantslight weight, greater efficiency, lower emissions, generate most of the electricity produced in thelower electricity costs and ability to use waste United States. The capacity of steam turbines canfuels. They can be located on sites with space range from 50 kW to several hundred MWs butlimitations for the production of power, and are typically suited to very large-scale systems.waste heat recovery can be used to achieve Steam turbines normally generate electricity asefficiencies of greater than 80%. Because of a byproduct of heat (steam) generation. A steamtheir compact size, relatively low capital costs, turbine is captive to a separate heat source andlow operations and maintenance costs and does not directly convert fuel to electric energy.automatic electronic control, microturbines are The energy is transferred from the boiler to theexpected to capture a significant share of the turbine through high-pressure steam that indistributed generation market46. turn powers the turbine and generator. This separation of functions enables steam turbines to operate with an enormous variety of fuels, from natural gas to solid waste, including all types of coal, wood, wood waste and agricultural byproducts (sugar cane bagasse, fruit pits and rice hulls). In CHP applications, steam at lower pressure is extracted from the steam turbine and used directly or is converted to other forms of thermal energy48. Combined steam and gas turbine cycle – Uses a gas turbine to both produce electricity and generate steam using the heat from the exhaust of the gas turbine to drive a steam turbine that will also produce electricity.Gas turbines – Gas turbines are availablein sizes ranging from 500 kilowatts (kW) to Reciprocating engines – Reciprocating internal250 megawatts (MW). Gas turbines produce combustion engines are a widespread and well-high-quality exhaust heat that can be used known technology. Reciprocating engines arein CHP configurations to reach overall system available for power generation applications inefficiencies (electricity and useful thermal sizes ranging from a few kilowatts to over 5 MW.energy) of 70 to 80%. Gas turbines are one of Current generation natural gas engines offerthe cleanest means of generating electricity, low first cost, fast start-up, proven reliabilitywith emissions of oxides of nitrogen (NOX) from when properly maintained, excellent load-some large turbines in the single-digit parts per following characteristics and significant heatmillion (ppm range, either with catalytic exhaust recovery potential. Waste heat recovered fromcleanup or lean pre-mixed combustion. Because the hot engine exhaust and from the engineof their relatively high efficiency and reliance cooling systems produces either hot water oron natural gas as the primary fuel, gas turbines low pressure steam for CHP applications. Overallemit substantially less carbon dioxide (CO2) per CHP system efficiencies (electricity and usefulkilowatt-hour (kWh) generated than any otherfossil technology in general commercial use47. 30
  • 31. thermal energy) of 70 to 80% are routinely Vertical axis wind turbines – In the past few achieved with natural gas engine systems. The years, a number of new manufacturers have emissions signature of natural gas SI engines in come out with radical turbine designs intended particular has improved significantly in the last to make wind turbines easier to install and decade through better design and control of better for tightly packed suburban and urban the combustion process and through the use of environments. Most of these turbines are exhaust catalysts. Advanced lean-burn natural vertical axis wind turbines, or VAWTs. The key gas engines are available that produce NOX advantages are that they can be quieter, are levels as low as 50 ppmv @ 15% O2 (dry basis)49. more amenable to the swirling wind conditions found in urban environments and can have a fuel cells – A fuel cell is an electrochemical energy smaller overall footprint (both tower width and conversion device that converts hydrogen and height). However, the turbines are less efficient oxygen into electricity and heat. It is very much because a portion of each turbine is always like a battery that can be recharged while power spinning into the wind51. For schools located in is drawn from it. Instead of recharging using more urban or suburban areas, these would be electricity, however, a fuel cell uses hydrogen the better choice. and oxygen50. Smaller CHP units located in a building or home and using waste heat from Horizontal axis wind turbines – A wind turbine generating electricity will be more efficient than in which the axis of the rotor’s rotation is parallel generating electricity at a central plant where to the wind stream and the ground. All grid- losses are high and the waste heat cannot be connected commercial wind turbines today are used. built with a propeller-type rotor on a horizontal axis (i.e. a horizontal main shaft)52. These horizontal axis wind turbines are best suited for schools in remote areas with good laminar wind resource. alternative fuels It is important to note that the key component that determines the environmental benefits of the above technologies is the fuel source. Some of the technologies can utilize alternative fuel types in order to improve the environmental benefits of operation. However, because the goal is to run these systems as close to continuously as possible, the alternative fuel source must be readily available and therefore requires either an inexhaustible supply on site (i.e.Wind waste water treatment facility, landfill, dairy farm) orUnfortunately for San Diego, most of our wind a fuel wheeling contract with an entity that has anresource is located off-shore or in high terrain of east inexhaustible supply. The second method isn’t trulycounty and is therefore not a popular technology for using the actual biogas, but instead is qualifying thatthe region. The Self-Generation Incentive Program for every therm of utility-fed natural gas used by theoffers incentives for the installation of wind turbines, system, the supplier is injecting an equal amount ofbut in nine years of incentives, we have yet to see any biogas therms into the system.San Diego wind project receive an incentive becausethe projects don’t pan out economically. 31
  • 32. Biogas – Biogas typically refers to a gas produced If at the end of the 12-month billing cycle the by the biological breakdown of organic matter amount of energy credits exceeds the amount in the absence of oxygen. Biogas originates from owed to the utility company, then the difference biogenic material and is a type of biofuel53. of credits are lost. By offsetting only 75% of the energy costs, it allows for future energy Biomass – Biomass, a renewable energy source, efficiency or other energy-saving measures and is biological material derived from living, or any unforeseen increase in system production recently living, organisms such as wood, waste from varying photovoltaic technology. and alcohol fuels. Biomass is commonly plant matter grown to generate electricity or produce evaluate the project needs for the entire life heat54. of the product in order to identify the related needs of the installation site. There are a numbersystem sizing and siting Considerations of site-related items to consider when installingThe following topics identify important, high-level a DER system. The life of these systems are oftenconcepts to keep in mind when conducting DER 10-20+ years and any long-term plans for thefeasibility assessments. installation site will need to be considered prior to installing the system to avoid unforeseen offsetting energy costs, not energy load, will life cycle costs in the future. For example, if the protect against over sizing a system based on system is to be installed on a roof, the age and kWh consumption/production. This is important quality of the roof at the time of installation because some commercial cost savings are will need to be addressed. If the roof is old and based on the variable pricing of a time-of-use needs replacing during the life of the system, utility (TOU) rate. Therefore, energy consumed/ then there will be additional costs associated produced during peak periods is worth more with temporarily moving and then reinstalling money than energy consumed/produced during the DER system. Any future construction that off-peak periods. may occur that may block or shade a PV system will need to be considered. If there are plans solar with on-site generation tariffs – Often with for future expansion or renovations, the system the installation of solar it is beneficial to switch sizing needs to consider these future plans to an energy tariff specifically designed for on- in order to make sure the scoped system still site generation, such as SDG&E’s DG-R tariff. With benefits the site after the change. such tariffs, the cost of demand usage is reduced and the cost of energy consumption is increased As with all projects, we encourage the use of an compared to a standard TOU-demand metered independent third-party engineering consultant commercial rate. Because of how energy is billed to help you define the site needs and constraining on this new tariff, more kilowatt-hour output is criteria before requesting proposals from contractors. needed in order to realize the same energy cost savings from remaining on the original tariff with photovoltaics. offsetting 75% energy costs – Offsetting only a portion instead of all energy costs can reduce the risk associated with increased system production and/or the decrease in electricity usage when on a net energy metering (NEM) tariff. With NEM, any excess energy produced by the system is credited at the same rate as you would have paid for it if you were using that energy from the grid. 32
  • 33. CHapteR 6legal project ConsiderationsMost capital improvement energy efficiency sole sourcingprojects generally trigger many of the same legal Pursuant to Section 3400 of the Public Contractand contracting issues as a renewable energy Code (http://law.onecle.com/california/public-project; therefore we will focus on the constraining contract/3400.html), school districts may soleelements of a renewable energy project with the source a renewable energy project upon a findingunderstanding that we are capturing the general of the governing board of one of the following:project considerations as well. This guide is not * In order that a field test or experiment may beintended to be an all-inclusive summary of all made to determine the product’s suitability forlegal considerations that may be triggered by a future use.project. Instead, this chapter is meant to provide * In order to match other products in use on aschool districts with a high-level overview of legal particular public improvement either completedconsiderations and should be utilized as a starting or in the course of completion.point for discussing your project with your district’s * In order to obtain a necessary item that is onlylegal counsel. This chapter is organized into the available from one source.following subsections which may also be utilizedas an informal checklist by districts to verify that Board findings for energy services Contractingparticular legal issues triggered by the project have To rely upon Government Code Section 4217 et seqbeen considered and addressed. to informally procure a renewable energy project,procurement Method (competitive bid, request forproposals or sole source) Competitive bid Districts must competitively bid (http://www.cde. ca.gov/fg/ac/co/bidthreshold122009.asp) • Equipment purchases above $78,500 • Construction projects in excess of $15,000 Request for proposals Districts should be aware that alternative procurement requirements apply to some renewable energy projects. Pursuant to the government code, districts are not required the governing board of a school district must make to formally, competitively bid “energy services certain findings that the renewable energy project: contracts” but may instead utilize an informal (1) anticipated cost to the entity for electrical energy competitive process, such as issuing a request services will be less than the anticipated marginal for proposals. (Gov. Code § 4217.10 et seq ; cost to the public entity of electrical or other energy see http://law.justia.com/california/codes/ that would have been consumed by the public gov/4217.10-4217.18.html .) Districts should entity; and (2) the difference, if any, between the fair consult their legal counsel to determine whether the proposed contract structure falls within the auspices of an “energy services contract.” 33
  • 34. market value for the license, grant of an easement or the benefits associated with a self-generationlease to the real property, is anticipated to be offset system require a specific amount of energyby below-market energy purchases or other benefits to be generated by the system in order toprovided under the proposed agreement. The maximize the NEM savings. Any variation frommeeting at which such findings must be made must that production number may result in reducedbe noticed at least two weeks prior to the meeting. savings value that will impact the financial standing of the project. Therefore, it is prudentpower purchase agreements for the consuming entity to establish maximumThe “Customer’s Guide to Renewable Energy and minimum production levels with specialPower Purchase Agreements” published by the terms/fees associated with nonperformance.Rahus Institute, serves as a good starting point to 4. Options to Purchase – this is an attractive optionunderstanding the Power Purchase Agreement (PPA) for entities wishing to own the system but notstructure. before taking advantage of the various tax and incentive benefits through a PPA provider.Many of the terms in a PPA contract are flexible and Bonds can be used to purchase the system at fairdriven by customer wants. Here’s a list of negotiable market value typically starting in year seven ofterms to consider when defining a PPA contract. operations.1. Renewable Energy Credit Ownership – the California environmental Quality act customer can decide to keep or give up the The California Environmental Quality Act (CEQA) renewable energy credits associated with a renewable energy project.2. Price Escalator – the price escalator is based on the expected utility cost increases over the life of the project. This is typically an average increase over the contract term. Three percent is a conservative escalator that is consistent with utility company projections that align with inflation. Some PPA providers may suggest higher escalators in the neighborhood of 5-7% based on mid- or short-term analysis of historical utility rates, however, since the contract is generally for 20 years, this is a misleading way to view the utility rate escalation. Some providers may offer a utility rate related escalator such as “3% below average annual utility rate,” This applies to renewable energy projects as there is model affords the customer less risk associated no categorical exemption, as of yet, specifically for with the escalator, but introduces new risk by renewable energy projects. Districts considering placing a heavy burden on the PPA provider to a renewable energy project should undertake the cover the financing spread should the prices CEQA review process early to assure contractors that decrease substantially. This, in turn, puts the the project will not be delayed and the federal and PPA provider at risk for long-term viability and state rebates inadvertently lost. could result in the PPA provider going bankrupt should the burden be too much to fund. A fixed escalator based on the year-one price is preferred as long as the rate conforms to conservative utility rate escalation expectations (3%).3. Over/Under Production Guarantees – many of 34
  • 35. due diligence – project sizing production is actually economically sustainable.Although this occurs less often now than in the past, In addition to the size of the renewable energyit is our experience that unscrupulous contractors project, school districts should also be aware thatwill attempt to persuade our public agency clients the applicable tariff structure under which a meterto install the largest renewable energy project that falls could impact the economic benefits receivedqualifies for the state rebate, regardless of the actual from a renewable energy project and, again, weenergy appetite of the district. Prior to 2010, unless recommend that our clients research the appropriatea customer contracted with its utility for a feed- tariff structure for the meter with the renewablein tariff, excess energy produced by a renewable energy project to ensure the maximum economicenergy project that was not consumed at the site benefits are realized for the project.of production through net-metering or applied toother meters owned by the client under Assembly site Constraints (leases, easements, rights-of-way,Bill 2466, was lost to the utility. As discussed in more etc.)detail below, the recent passage of a law (Assembly Districts should consider the following regarding aBill 920) requires the utilities to pay customers for proposed project site.“surplus” energy fed into the grid and not utilized 1. Is the site subject to the terms and conditions ofthrough net-metering. However, even with new a lease?laws regarding net-metering and feed-in tariffs, 2. If the site is leased, is the lessor’s consentwe still recommend that our clients conduct their required to install the project?own due diligence to properly size the renewable 3. Is the site subject to an easement or right-of-energy project to ensure that an oversized system way?that produces energy not consumed at the site of 4. Is the site potentially subject to a neighbor’s trees or new construction such that an easement is necessary? 5. Is the site susceptible to vandalism or theft such that additional security measures are required? fingerprinting of Consultants and Contractors Education Code Sections 45125.1 and Section 45125.2 require entities that contract with school districts to conduct criminal background checks on their employees and certify to the school district governing board that none of its employees who will come in contact will students have been convicted of specified crimes. prevailing Wages Prevailing wages are triggered if public monies are paid into the project, either directly, through the payment for grading work at the site or the procurement of insurance for the project, or indirectly through the waiver of otherwise applicable fees. Prevailing wages may not be applicable to an energy project constructed under a Power Purchase Agreement. Districts should verify the applicability of prevailing wages to an energy project with their legal counsel. 35
  • 36. Bonds (payment, performance, completion 7-05, Chapter 13. The overall panel array must beThe definition of what constitutes a “public work” or restrained. The panels must be seismically restrained“public project” varies between the civil code, the from falling off the roof or excessive movements onlabor code and the public contract code. Depending the roof. Individual panels need not be restrainedon the contracting method used, a district’s energy independently if the panels are connected with anproject may or may not also constitute a “public interlocking mechanism that is capable of holdingwork” or “public project.” As such, an analysis the panels together in the horizontal and verticalneeds to be made under each statutory scheme to directions and must be designed to resist sliding andascertain whether such laws as prevailing wages, pop-up resulting from lateral and vertical seismiccertified payroll, worker’s compensation certification, forces and displacements per CBC Section 1613Ahours of labor and apprenticeship standards apply and ASCE Standard 7-05, Chapter 13. All projectsor a payment (labor and materialmen’s) bond is involving installation of photovoltaic or solarrequired. Again, a district should consult with its thermal systems shall have a California licensed orlegal counsel to determine the applicability of bond registered architect or structural engineer in generalrequirements and to determine whether the district responsible charge per Title 24, Part 1, Sectiondesires to require a performance or other bond, such 4-316. Renewable energy systems shall meet theas a completion bond, to minimize risk of contractor requirements of the 2007 California Electrical Codenonperformance on the project. (CEC). All systems shall be grounded in accordance with the 2007 CEC, Article 250. Electrical cables anddivision of the state architect materials shall meet the criteria for weather-proofThe Division of the State Architect - Structural Safety locations per the 2007 CEC, Article 310. Photovoltaic(DSA-SS) reviews the anchorage of solar energy systems shall comply with the requirements of 2007panels, manufacturer’s support frames and related CEC, Article 690.equipment to the building structure or foundation.The DSA pre-check approval process may be found City or County Building or Zoning Requirementsby clicking here. Small renewable energy projects Pursuant to government code section 53091, schoolconstructed on existing school buildings may be district renewable energy projects are exempt fromexempt from DSA review if the total cost of the city and county building and zoning ordinances.project is less than approximately $36,000 (as thisamount may be adjusted annually).Regardless of costs, renewable energy systemsinstalled on or supported by free-standing structures(whether standing alone or attached to existingbuildings) are not exempted from DSA review.The wind design requirements are given in CBCSection 1609A. The design shall consider the effectsof partially enclosed structure configuration (ifpresented) and discontinuities at panel free edgesand corners. Regarding ballasted solar panels, thepanels shall be designed and installed to resistwind loads prescribed in CBC, Section 1609A. Theminimum design wind force shall be a net pressureof 10 lb/ft2 acting in either direction normal to the (Special thanks to Sophie Akins at Best Best & Krieger)panels per ASCE 7, Section 6.1.4.2. Wind tunnel testreports for wind (uplift) are required to verify thedesign. The seismic anchorage design requirementsare given in CBC Section 1613A and ASCE Standard 36
  • 37. CHapteR 7financing MechanismsAll energy projects ultimately boil down to thefinancial impacts on a consumer’s energy resourcebudget over the life of the project. These financialimpacts depend on projected cost reductions inutility costs compared with the total project costs andrisks borne by the consumer. In the earlier sectionsof this document, we discuss the various elementsthat will impact direct cost reductions to the utilitybill, whereas the next section deals primarily withidentifying and procuring financial backing to installthe project.self-funding through energy savingsThis is a common method for funding facility orbuilding energy improvements where the financingis paid for through the projected savings of thoseimprovements resulting in net neutral or net positivecash flow starting in year one. In many cases, avariety of improvements can be bundled together tocapture as many improvements as possible while stillmaintaining a neutral or positive cash flow for the life Energy Savings Bid and select Utility Third-of the improvements. Net positive savings due to high- Party Programs.value projects can also be used to create a self-funding 2. The customer must have had an active SDG&Ebudget for future construction improvements. account for the past two years for the same business.There are a variety of structures for developing a self- 3. The customer’s SDG&E account must be infunded project. The following are a few examples of good standing.the most common methods. 4. Owners of multifamily units who do not live on the premises may qualify for financing sdG&e on-Bill financing (energy efficiency through the Multifamily Rebate program55. only) – The On-Bill Financing (OBF) Program helps qualified commercial and taxpayer-funded energy performance contracting (epC) – EPC is a customers pay for energy-efficient business turnkey service, sometimes compared to design/ improvements through their SDG&E® bill. OBF build construction contracting that provides works in conjunction with the SDG&E rebate customers with a comprehensive set of energy- and incentive programs to provide an interest- efficiency, renewable-energy and distributed- free financing option for customers eligible generation measures and often is accompanied to participate in such rebate and incentive with guarantees that the savings produced by a programs. Customers who are eligible for OBF project will be sufficient to finance the full cost of must meet the following criteria: the project. A typical EPC project is delivered by 1. Participation in one of the following programs: Small Business Super Saver, Express Efficiency, Standard Performance Contract, 37
  • 38. an Energy Service Company (ESCO) and consists government or a tax-exempt institution sells real of the following elements: property to private investors and simultaneously 1. Turnkey service – The ESCO provides all of the leases it back. services required to design and implement a comprehensive project at the customer The local government or tax-exempt institution facility, from the initial energy audit through gets cash payment from the investors and long-term Monitoring and Verification (M&V) an opportunity to lease back the facility at a of project savings. reduced rate reflecting the owner’s tax benefits. 2. Comprehensive measures – The ESCO tailors Sale-leasebacks provide municipalities with a a comprehensive set of measures to fit means of raising funds that may be less costly the needs of a particular facility and can than issuing general obligation bonds. The include energy efficiency, renewables, lower costs result from the returns that the distributed generation, municipality receives from investing water conservation and the payment made by the private sustainable materials and One of the cheapest ways investors plus the portion of tax operations. benefits that private investors will to outsource solar power 3. Project financing – The pass on to the municipality in the ESCO arranges for long- usually involves a finance form of lower rental fees. Sale- term project financing leasebacks have another advantage that is provided by a third- company that funds the as current law places limits on a party financing company. project and a solar power municipality’s ability to issue tax- Financing is typically in the exempt bonds and invest the form of an operating lease integrator that installs and proceeds in higher-yielding taxable or municipal lease. maintains the solar array. securities. But no limits are placed on 4. Project savings guarantee investment of the proceeds from the – The ESCO provides a sale of property. In choosing a sale- guarantee that the savings produced by the leaseback over general obligation financing, project will be sufficient to cover the cost of a state or locality can, in effect, get around the project financing for the life of the project . 56 arbitrage provisions in current law57.external ownership financing Models power purchase agreement model (distributedIn addition to the standard self-ownership models, generation) – Under the PPA model, the PPAthere are a variety of unique models that aim to take provider would independently secure fundingadvantage of federal tax benefits unavailable to a for the project, own the project, maintain andtax-exempt entity under a self-ownership model. In monitor the energy production and sell themost cases, the model requires the tax-exempt entity electricity to the host at a contractual price forto bear some additional level of risk associated with the term of the contract58.a mid- to long-term contractual agreement with theentity who will own the system. Below are a couple This structure allows the customer to benefitof examples of some common external ownership from any savings, tax credits and incentivesmodels. available for an onsite energy generating system without the up-front capitol costs. Additionally, sale/lease-back – Local governments and the PPA will operate and maintain the system for nontaxable entities can use a financing the life of the contract because the PPA provider mechanism known as a sale-leaseback, which owns the system. enables them to benefit from tax deductions normally available only to the private sector. Under sale-leaseback agreements, a local 38
  • 39. Some PPAs depend heavily on the existence of that the utility rate increase per year is greaterthe investment tax credits. PPAs rely on financing than or equal to the percentage increase perpartners with a tax appetite who can benefit year from the PPA provider.from the federal tax credit. With the passageof the American Recovery and Reinvestment Legal counsel experienced in PPA contractAct of 2009, the solar investment tax credit negotiations process is highly recommended andcan be combined with tax-exempt financing, legal considerations regarding a PPA are discussedsignificantly reducing the capital required to in Chapter 6.develop a solar project59. potential risks with a ppa – The largest risks for a host customer involved with a PPA agreement involve the over- or underproduction of the generation system compared with site energy needs and the price per kilowatt-hour to the PPA provider. If no contractual precautions are taken addressing the potential for the system to over or under produce, the customer could end up paying more for energy generation than they would have with the utility company. In most contracts, all production generated by the system must be paid for by the customer to the PPA provider. Therefore, any production in excess of the customer’s needs reduces the overall financial benefit of the project to the customer because the customer is now paying for electricity that is not reducing their electric bill. AB 920 is implementing a feed-in style payment mechanism whereby customers can recoup some value due to overproduction by “selling” it to the utility, but nowhere near the value generated through NEM. Under production can hinder savings and payback periods and impact short-, medium-, or long-term energy plans. Another large risk is notMoreover, through 2010, in certain circumstances, in the production itself but in the price paid for thisthe federal government will provide a 30% cash production. The life of some generation systems is 20+grant in lieu of an investment tax credit during years, and attempting to estimate annual utility ratesyear one. The term of a PPA generally lasts over this time based on historical precedent cannotbetween 5 and 25 years. It is also common for the factor in anomaly events like the California energyhost customer to have the option to purchase crisis of 2001. If at any time during the contract periodthe generating equipment from the PPA provider the customer pays more to the PPA provider than theyafter the tax benefits have been fully realized. would to the utility company, it is an immediate loss inMost contracts give the host the option to renew savings. The determination of what price a customerthe contract with different terms, or allow them can afford to pay to the PPA provider is a complexto request that the equipment be removed. calculation requiring detailed modeling of the utility rates against the site load profile. It is suggested thatA typical PPA contract is structured such that a third-party assessment, validation and feasibility beyear-one price is established with some annual done to determine this price.price escalator that is linked to the expectedutility rate increases for the price per kilowatt-hour. In this scenario, the customer is betting 39
  • 40. What is in the price? – Inherit in the price paid per costs, reduce reliance on fossil fuel-fed power plantskilowatt-hour to the PPA provider by the customer and create a sustainable energy future by using solarare construction and installation costs; monitoring, technology63.operations and maintenance costs; any rebates,incentives or tax credits the PPA provider mayreceive and pass on to the customer; and any capitalimprovements being wrapped into the project, suchas shade structures or a new roof.utility incentives and RebatesThere is a wide variety of rebate and incentiveprograms offered by SDG&E, the State of California andthe federal government suited specifically to schoolenergy projects. The following list is comprehensivefor the San Diego region.demand Response programs – Demand response Csi-thermal program – A new California statewideprograms provide incentives for homes and solar water heating rebate program, called CSI-businesses to reduce or shift their use of electricity Thermal, will begin accepting applications on Mayduring critical times, such as hot summer days60. 1, 2010, and is expected to run through December 2017. A 30% federal tax credit is also available ontechnical assistance and technology incentives the installed cost of the system less the rebate64. See(tati) program – By identifying load reduction previous update.potential and subsidizing the enabling technologies,customer participation in the TATI program helps energy efficiency Business incentives (formerlySDG&E maintain electric reliability during periods of the standard performance Contract program) –high demand61. This program offers incentive payments for energy efficiency projects involving the installation of new,self-Generation incentive program (sGip) – Self- high-efficiency equipment or systems. A projectgeneration refers to distributed may consist of the retrofit ofgeneration technologies installed existing equipment/systems or Federal, State and localon the customer’s side of the utility the installation of equipmentmeter. The electricity generated financing and incentive associated with new/ addedby the system provides a portion load. Some projects may requireor all of the customer’s entire program information for a measured-savings approach.electric load. Through the SGIP, the schools can be found at by Incentives are paid based onCalifornia Center for Sustainable the quantity of kilowatt-hourEnergy provides incentives for up clicking here. (kWh) or therms saved resultingto 5 megawatts (MW) of distributed from the installation of the newgeneration equipment62. equipment or system. Customers eligible for the incentives program are definedCalifornia solar initiative (Csi) – In 2006, the State as any commercial, industrial and agriculturalof California set a goal of creating 3,000 megawatts customers who pay the public goods charge and/or(MW) of new, solar facilities by 2017. Through the demand-side management surcharge, regardless ofCalifornia Solar Initiative (CSI), the California Public size or project scope. The equipment must exceedUtilities Commission (CPUC) is providing $2.1 billion government standards, must operate at least fiveover the next 10 years to help existing businesses,public agencies and homeowners lower their energy 40
  • 41. years and must not overlap other incentive programs program. Eligible products include steam cookersoffered by the utility. Pre-inspections are required for and combination ovens for food service, pipe andall projects. Applicants are eligible to receive up to tank insulation, high-bay lighting fixtures, compact50% of the cost for each project for calculated (SPC) and linear fluorescent fixtures and anti-sweat heatermeasures, not to exceed $350,000 per project site. controls. Equipment must meet the requirementsMeasures involving cogeneration or fuel-switching as stated in the terms and conditions on the rebateprojects are not eligible. (NOTE: SDGE offered higher forms. All equipment must be new. Used or rebuiltincentives for select energy efficiency improvements equipment is not eligible for rebate. (NOTE: Thein 2009 and may do so in 201065.) 2009-2011 Energy Efficiency Programs have not yet been approved by the California Public Utilitiesenergy efficiency Business Rebates program Commission (CPUC). In order to maintain program(formerly the express efficiency program) – This availability, the CPUC has issued a bridge fundingprogram is a nonresidential rebate program designed decision that authorizes SDG&E to continue theto help customers add or retrofit existing equipment programs following the same guidelines. Customerswith high-efficiency equipment.The program provides may participate in Express Efficiency using the 2006-cash rebates to eligible business customers for 2008 program rules, incentive levels and applications.energy-efficient lighting, refrigeration, food service, Bridge funding will end no later than December 31,natural gas and other technologies. Rebates can help 2009 66.)offset the overall cost of installed equipment. energy savings Bid program – Receive cashCustomers may qualify for rebates up to $350,000 per incentives by installing qualified new, high-efficiencymeter, per fuel, per year. Customers eligible for the equipment. You design your own energy-savingrebates program are defined as any medium or large project and propose the incentive amount necessarycommercial, industrial or agricultural business that to implement the project. SDG&E’s Energy Savings Bidhas a valid electric or natural gas SDG&E® account Program provides financial rewards for nonresidentialwith a monthly electric demand of 100 kW and higher customers who install qualifying new, high-efficiencyand/or an average monthly natural gas usage above equipment that generates 500,000 kilowatt-hours4,166 therms. in energy savings per year. (NOTE: The deadline for installation and operation of energy efficiencyFuel switching and new construction do not projects under the Energy Savings Bid Program hasqualify. Over 140 measures qualify for the rebates been extended from December 31, 2009 to March 31, 201067.) ® 41
  • 42. CHapteR 8extra factoids• Consider creating a weekly “energy monitor” - someone who’s job it is to make sure lights are out when there’s no one in a room or to make sure that machines are turned off when not being used. (http://www. energyquest.ca.gov/saving_energy/index.html)• Save 50% on energy costs by using Energy Star computers, monitors, printers, fax machines, copiers and other equipment. (Visit www.energystar.gov for more information.) (http://ase.org/content/article/ detail/625)• Get the entire school involved. Energy savings add up when the entire school joins together in conservation efforts. Schools with effective conservation programs have reported reductions of as much as 25% in utility bills. (http://ase.org/content/article/detail/625)• a rule of thumb: Consider setting thermostats at 68 degrees for heating and 78 degrees for cooling. Using fans can make people feel degrees cooler, at much less cost than air conditioning. (http://ase.org/content/ article/detail/625)• Turn off lights when not in use—lighting accounts for nearly 50% of the electric bill in most schools. (http:// ase.org/content/article/detail/625) Source: National Renewable Energy Laboratory, U.S. Department of Energy• City of San Diego is 3rd in the EPA’s On-site generation Top Partner Rankings within the United States and across individual industry sectors with 69,043,000kWh of on site green power usage annually from various sources. 42
  • 43. • Pool covers can save as much as 50 to 70% in energy, 30 to 50% in make-up water, and 35 to 60% in chemicals.• Energy efficiency O&M programs can save up to 20% on energy bills without a major initial investment. (School Energy Guidebook pdf )• Top performing ENERGY STAR labeled schools cost forty cents per square foot less to operate than the average performers.• Energy comprises approximately 80% to 90% of the annual cost, and between 65% and 85% of the life cycle cost of a lighting system. (School Energy Guidebook pdf )• The initial equipment and installation costs of lamps and ballasts represent only 4% to 6% of the annual cost of operating a lighting system. Labor to clean and change lamps and ballasts represents 8 to 12%. The rest, 82 to 88%, is electricity cost to operate the system. A regular maintenance program can reduce lumen depreciation as much as 25 to 50%. (School Energy Guidebook pdf )• Water evaporation accounts for approximately 70% of energy lost for indoor and outdoor pools. (School Energy Guidebook pdf )• Energy control devices for vending machines average a savings of 47% with a payback of less than 3 years. (School Energy Guidebook pdf )• Education buildings account for 13% of commercial energy consumption in the United States. (http://tonto.eia.doe.gov/kids/energy.cfm?page=us_energy_commercial-basics)• Programmable thermostats can help to minimize operating hours of the heating and cooling systems in low occupancy areas like the cafeteria. (http://www.coolcalifornia.org/article/save-energy-schools)• About 15% of energy use in schools is dedicated to office equipment, refrigeration, computers, and other appliances. (http://www.coolcalifornia. org/ar ticle/save - energy-schools) (http://www.coolcalifornia.org/article/ high-performance-schools)• A recent study found that students progressed 20% faster on math tests and 26% faster on reading tests than students in classrooms with little daylight. (http://www.coolcalifornia. org/article/high-performance-schools)• Renewable energy systems reduce a school’s overall operating expenses and play a significant role in preserving the environment. (http://www.eric.ed.gov/ ERICDocs/data/ericdocs2sql/content_ storage_01/0000019b/80/16/dd/fa.pdf )• Solar thermal, wind, and photovoltaic applications are exciting technologies that can be used to teach students about science, ecology, and the environment. (http://www.eric.ed.gov/ERICDocs/data/ ericdocs2sql/content_storage_01/0000019b/80/16/dd/fa.pdf ) 43
  • 44. BiBlioGRapHYendnotes1 Department of Energy, “School Operations and Maintenance: BEST PRACTICES FOR CONTROLLING ENERGYCOSTS” (Washington, D.C. 2004), p iv.2 SANDAG, “DRAFT Regional Energy Strategy” (San Diego, 2009), p 14.3 California Environmental Protection Agency Air Resources Board, “Assembly Bill 32: Global warmingSolutions Act,” AB 32 Overview, 4 Oct. 2010, <http://www.arb.ca.gov/cc/ab32/ab32.htm>.4 State of California, “Detailed direction that accompanies Governor’s Executive Order S-20-01,” GreenBuilding Action Plan, 26 Jul. 2007, 4 Oct. 2010,<http://www.documents.dgs.ca.gov/green/GreenBuildingActionPlan.pdf>.5 Fitch, Julie, “Resolution E-4283,“ CPUC Public Agenda 3252, 22 Apr. 2010, 4 Oct. 2010, Slides 31-32, <http://www.cpuc.ca.gov/NR/rdonlyres/3E84CBDA-9651-4392-9223-750F792683C3/0/PowerPoint_42210.PPT>.6 California Public Utilities Commission, “ALTERNATE PROPOSED DECISION OF PRESIDENT PEEVEY,” DECISIONADOPTING NET SURPLUS COMPENSATION RATE PURSUANT TO ASSEMBLY BILL 920, 5 Apr. 2011, <http://docs.cpuc.ca.gov/efile/ALT/133100.pdf>.7 Collaborative for High Performance Schools, “HPI-CHPS Verified Program in California,” 2010, 6 Jun.2011,<http://www.chps.net/dev/Drupal/node/687>.8 California Energy Commission, “The Bright Schools Program,” 5 Jan. 2010, 4 Oct. 2010, <http://www.energy.ca.gov/efficiency/brightschools/>.9 California Energy Commission, “Notice of Temporary Suspension of Technical Assistance Program,” BrightSchool Program, 10 Dec. 2009. California Energy Commission, “Emergnig Renewable Program Rebates,” Consumer Energy Center, 2007, 410Oct. 2010, <http://www.consumerenergycenter.org/erprebate/program.html>. California Public Utilities Commission, “Other Solar Technologies,” California Solar Initiative, 26 Jun. 2009, 411Oct. 2010, <http://www.cpuc.ca.gov/PUC/energy/Solar/othersolar.htm>.12 “California Solar Initiative: Non-Residential,” 2010, 8 Jun. 2011, <https://energycenter.org/index.php/incentive-programs/california-solar-initiative/non-residential>.13 California Center for Sustainable Energy, “CCSE Non-Residential Interim Wait List Process,” 10 Feb. 2011, 8Jun. 2011, <https://energycenter.org/index.php/incentive-programs/self-generation-incentive-program/sgip-documents/doc_download/668-csi-non-residential-wait-list-process>.14 Edward Randolph to The Public Utilities Commission, memorandum regarding SB 585 (Kehoe) – Energy: 44
  • 45. Solar Energy Systems: Funding. As amended: March 29, 2011, 6 Apr. 2011, from Office of Governmental Affairs.15 Self Generation Incentive Program Handbook, (5 May 2010), p 7.16 County of San Diego, “Green Building Incentive Program,” 4 Oct. 2010, <http://www.sdcounty.ca.gov/dplu/greenbuildings.html>.17 Database of State Incentives for Renewables and Efficiency, “U.S. Department of Treasury - RenewableEnergy Grants,” Federal Incentives/Policies for Renewables & Efficiency, 31 Mar. 2010, 4 Oct. 2010, <http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US53F&>.18 Database of State Incentives for Renewables and Efficiency, “Clean Renewable Energy Bonds (CREBs),”Federal Incentives/Policies for Renewables & Efficiency, 23 Sep. 2010, 4 Oct. 2010, <http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US45F&re=1&ee=0>.19 California Energy Commission, Block Grant Guidelines, (7 Oct. 2009), pp 7-8.20 Union of Concerned Scientists, “Production Tax Credit for Renewable Energy,” Clean Energy, 22 Apr. 2009, 4Oct. 2010, <http://www.ucsusa.org/clean_energy/solutions/big_picture_solutions/production-tax-credit-for.html>.21 Solar Energy Industries Association, The Solar Investment Tax Credit Frequently Asked Questions, 4 Oct.2010 <http://www.seia.org/galleries/pdf/ITC_Frequently_Asked_Questions_10_9_08.pdf>.22 San Diego Gas and Electric, ELECTRIC COMMODITY COST CRITICAL PEAK PRICING DEFAULT, (Oct. 2009) pp5-6. REQUEST FOR PROPOSALS FOR COMMUNITY-BASED HABITAT RESTORATION PROJECTS IN OREGON AND23WASHINGTON, EcoTrust, 2007, pp 3-4.24 School Operations and Maintenance: BEST PRACTICES FOR CONTROLLING ENERGY COSTS A Guidebook forK-12 School System Business Officers and Facilities Managers, (Aug. 2004).25 “Energy Management System,” 25 Sep. 2010, 4 Oct. 2010, <http://en.wikipedia.org/wiki/Energy_management_system>.26 Energy Partnership, “Induction Light FAQs,” 2008, 4 Oct. 2010, <http://www.energy-partnership.com/induction.php>.27 Energy Savings Now, “Tips & Tricks: The Building Envelope,” 2000, 4 Oct. 2010, <http://energysavingnow.com/tips/envelope.shtml>.28 Energy Savings Now.29 Energy Savings Now. 45
  • 46. 30 US Green Building Council, “LEED for Existing Buildings,” 2010, 4 Oct. 2010, <http://www.usgbc.org/DisplayPage.aspx?CMSPageID=221>.31 US Green Building Council, “LEED for New Construction,” 2010, 4 Oct. 2010, <http://www.usgbc.org/DisplayPage.aspx?CMSPageID=220 >.32 US Green Building Council, LEED 2009 for New Construction and Major Renovations, (Nov. 2008), p xiii.33 SolarBuzz, “Solar Cell Technologies,” 2010, 4 Oct. 2010, <http://www.solarbuzz.com/technologies.htm>.34 SolarBuzz.35 PVEducation, “Module Structure,” 4 Oct. 2010, <http://www.pveducation.org/pvcdrom/modules/modules-structure>.36 Solyndra, “Photovoltaic Systems for Commercial Rooftops,” 2010, 4 Oc.t 2010, <http://www.solyndra.com/Products/PV-Systems>.37 Solar Buzz. “Roof mounted Solar Power Systems,” The Encyclopedia of Alternative Energy and Sustainable Living, 5 Oct.382010, <http://www.daviddarling.info/encyclopedia/R/AE_roof-mounted_solar_power_system.html>.39 Karp, Zaher, “What is Ground Mounted Photovoltaic?,” 6 July 2009, 4 Oct. 2010, <http://www.energyboom.com/solar/what-is-ground-mounted-photovoltaic>.40 National Renewable Energy Laboratory, “Passive Solar,” 29 Sep. 2009, 5 Oct. 2010, <http://www.nrel.gov/learning/re_passive_solar.html>.41 US Department of Eenrgy: Energy Efficiency & Renewable Energy, “Solar Water Heaters,” Energy Basics, 13 Jul2010, 5 Oct 2010, <http://www.eere.energy.gov/basics/buildings/water_heaters_solar.html>.42 National Renewable Energy Laboratory, “Solar Hot Water,” 29 Sep 2009, 5 Oct 2010, <http://www.nrel.gov/learning/re_solar_hot_water.html>.43 National Renewable Energy Laboratory, “Solar Process Heat,” 29 Sep 2009, 5 Oct 2010, <http://www.nrel.gov/learning/re_solar_process.html>.44 National Renewable Energy Laboratory, “Solar Process Heat.”45 National Renewable Energy Laboratory, “Concentrating Solar,” 25 Aug 2010, 5 Oct 2010, <http://www.nrel.gov/learning/re_csp.html>. Capenhart, Barney L., PhD, CEM, “Microturbines,” 31 Aug 2010, 5 Oct 2010, <http://www.wbdg.org/resources/46microturbines.php>.47 “Basics of CHP,” 2005, 5 Oct 2010, <http://www.northeastchp.org/nac/CHP/basics.htm>. 46
  • 47. 48 “Basics of CHP,” 2005.49 “Basics of CHP,” 2005.50 “Basics of CHP,” 2005.51 Pelletier, Jason, “Wind Power for Every Rooftop?,” 13 Jan 2009, 5 Oct 2010, <http://www.lowimpactliving.com/blog/2009/01/13/home-wind-power-options/>. “Horizontal-axis Wind Turbine (HAWT),” The Encyclopedia of Alternative and Sustainable Living, 5 Oct 2010,52<http://www.daviddarling.info/encyclopedia/H/AE_horizontal-axis_wind_turbine.html>.53 “Biogas,” Wikipedia: The Free Encyclopedia, 4 Oct 2010, 5 Oct 2010, <http://en.wikipedia.org/wiki/Biogas>.54 “Biomass,”Wikipedia: The Free Encyclopedia, 4 Oct 2010, 5 Oct 2010, <http://en.wikipedia.org/wiki/Biomass>.55 Guide to On-Bill Financing, San Diego Gas and Electric, 2010. Introduction to Energy Performance Contracting, ICF International National Association of Energy Services56Companies, Oct 2007.57 Verdier, James M., “Statement before the Committee on Ways and Means U.S. House of Representatives,” 8Jun 1983.58 “Utility Scale Solar and Wind Development,” Green Ox Energy Systems, 2009, 5 Oct 2010, <http://www.greenoxenergy.com/consulting.html>.59 “Utility Scale Solar and Wind Development,” Green Ox Energy Systems, 2009.60 “Demand Response Programs,” San Diego Gas and Electric, 2010, 5 Oct 2010, <http://www.sdge.com/aboutus/longterm/longtermDemandResponse.shtml>.61 Technical Assistance and Technology Incentives, San Diego Gas and Electric, 2010.62 “Self-Generation Incentive Program,” 2010, 5 Oct 2010, <http://energycenter.org/index.php/incentive-programs/self-generation-incentive-program>.63 “California Solar Initiative,” 2010, 5 Oct 2010, <http://energycenter.org/index.php/incentive-programs/california-solar-initiative>.64 “CSI-Thermal Program (Solar water Heating),” 2010, 5 Oct 2010, <http://energycenter.org/index.php/incentive-programs/solar-water-heating>.65 Energy Efficiency Business Incentives, San Diego Gas and Electric, 2010.66 Energy Efficiency Business Incentives, San Diego Gas and Electric, 2010.67 Energy Savings Bid Program, San Diego Gas and Electric, 2010. 47