The document provides an overview and updates for California's energy planning guide for schools, including that Assembly Bill 920 now requires utilities to compensate schools for net surplus energy generation, the California Solar Initiative non-residential incentive budget has been expended in some territories, and Senate Bill 585 allows additional funding for the solar program to fully fund non-residential portions. The guide also notes that effective January 2011, California's High Performance Incentive grants were revised to significantly increase incentive amounts for projects meeting energy efficiency criteria.

1. Guide
updates
June 2011 energy planning Guide:
What’s New?
aB920
Assembly 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 is
expected to be retroactively applied after the decision is approved. The progress of this decision can be found
at 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 kilowatts
in the CCSE territory are not ensured a CSI incentive at this time. Applicants may continue to submit their
reservation requests and CCSE will include your application on the CSI Non-Residential Project Waitlist based
on the time and date it was received. Consequently, CCSE cannot guarantee that unreserved Non-Residential
photovoltaic (PV) or Commercial electricity-displacing solar water heating (SWH) projects will receive CSI
incentives in the future. Current waitlist can be found at https://energycenter.org/index.php/incentive-
programs/california-solar-initiative/non-residential.
sB585
Senate Bill 585 (SB585) amends the California Solar Initiative (CSI) statute to allow the 10-year program to
collect additional funds above the current $2.167 billion current cap in order to fully fund the non-residential
portion of the solar program. The bill would address the funding shortfall of approximately $200 million
needed to fully attain the California Public Utilities Commission (CPUC) authorized goals for the program.
High performance incentive (Hpi) Grants
Effective 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- CHPS
Criteria. The HPBIG awards $250,000 for modernization projects meeting the minimum threshold of 20 HPI
points and $150,000 for new construction projects meeting the minimum threshold of 27 HPI points. The
HPBIG was created as a onetime per school site incentive to apply for HPI Grant funding.
1

2. taBle of
CoNteNts
Chapter 1 - introduction.....................................................................4
Chapter 2 - strategic energy planning............................................6
Chapter 3 - project development and Management.................17
Chapter 4 - energy efficiency strategies and Measures............20
Chapter 5 - distributed energy Resources...................................26
Chapter 6 - legal project Considerations.....................................34
Chapter 7 - financing Mechanisms................................................38
Chapter 8 - extra factoids................................................................43
2

3. CHapteR
1
introduction
San Diego schools, along with schools throughout In parallel with the AB32 mandates, California Energy
the nation, spend a significant amount of each year’s Commission (CEC) 2008 Building Efficiency Standards
operating budget on energy costs. While generally finalized in May of 2009 are effective as of January
representing only 2 to 4 % of district budgets, energy 1st, 2010. These standards supplant the CEC 2005
costs tally up to $8 billion a year nationwide for schools1. standards and build more technical detail and rigor
Fortunately, 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 Governments
their annual energy costs. The purpose of this energy (SANDAG) proposed to use 2007 consumption levels
planning guide is to provide San Diego region school (18,648 GWh) as a baseline from which to achieve a
business officials and facility managers with an easy 22% reduction in consumption by 20202. San Diego
reference document that identifies common (and not schools will play a definitive role in achieving the many
so common) strategies for developing energy saving energy related goals currently being established in
projects and energy management plans. California.
Starting in 2010, California Assembly Bill 32 (AB32) In order to address these objectives, we must
mandates that government buildings, utilities and comprehensively incorporate the four key
major manufacturers must know and verify how components of a thoughtful energy plan in order to
much their facilities contribute to carbon emissions. make implementation effective and achievable:
AB32 empowers the California Air Resources Board • Public Policy Initiatives / Mandates
to develop metrics and reporting mechanisms that • Energy Management Benchmarking
will steer California toward reducing Green House • Third-Party Feasibility Assessments
Gas emissions to 1990 levels by 2020. Although not • Financial Structures, Rebates and Incentives
specifically named, schools should be aware of this
sweeping legislation, as it will dramatically affect
building energy efficiency code and simply because it
is wise to begin planning now for how to bring school
facilities 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. overview
This guide is structured to provide school business
officials with an easy to follow reference tool
written in plain language with bite-sized concepts.
The sections are broken out into discrete actions
as outlined in the AB32 legislation for developing
measures ranging anywhere from a cohesive, district-
wide energy strategy to a specific site and project.
The document is peppered with relevant energy
factoids, linked references and contains quick-links
to navigate around the document as it is read. As
companions to this Energy Planning Guide, a variety
of supporting documents are available for download
and use including:
• Questions to Ask Your Contractor
• Energy Saving Tips
• Energy Project Request for Proposal
• School Board Resolutions
• Reference Link Pool
• School Based Case Studies
If you see something we’ve missed, please contact
us at eas@energycenter.org and alert us to the
information you would like to see included and we’ll
review it during the monthly update process.
The distinct sections are broken out to describe
protocols ranging anywhere from a cohesive, district-
wide energy strategy to a specific site and project.
Key References
We encourage you to review these documents as we
have 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
2
strategic energy planning
The main objective of this chapter is to identify a value of energy savings opportunities. As energy
planning framework that focuses on short and long costs escalate, the list of economically viable energy
term objectives by understanding historical energy efficiency and distributed generation technologies
costs 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 over
planning Horizons the life of the technology, but might
Every energy plan should address The California Department be worth considering later, when it
immediate needs/objectives, while will save you $200,000.
keeping future needs/objectives in of Education estimates that
perspective. Therefore each plan The current energy pricing as well
California schools spend
must consider short, medium and as the percent change in historical
long 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 due
The short term (<5 years) planning
addresses the most immediate to a modernization project. For
needs and can be supported by example, a solar power purchase
current 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 annually
proposal brought forward by a vendor? Planning and based on some defined “escalator” that is relative to
analysis done on short term objectives will generally historical utility rate escalation. The following graph
yield 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 Diegan
technology performance and market conditions. entities (which schools fall under) since 1982.
Medium term (>5 and ≤10 years) planning establishes
forward looking goals for larger scale modernization
(such as new building construction/expansion)
and helps to establish medium-view sustainability
objectives achieved over time.
long term (>10 years) goals typically aim to define
achievable reduction objectives, but are very rarely
tied to actual project planning. Long term goals reflect
where a district wants to go, but do not necessarily
define how to get there and in many ways are the
work statement for the energy plan. Additionally, the
long term vision may be influenced by or may mirror
statewide and/or nationwide legislative requirements
such as aB32. CEC price trend for commercial SDG&E customers
Historical energy Costs
The cost of energy is a key indicator that directly affects
both the operational budget spending as well as the
5

6. Although the late eighties experienced a period metering contract to provide an inspection report
of declining energy costs, rates have consistently to the electrical corporation, unless the electrical
increased since 1990. Although prices declined generating facility and meter have been installed or
sharply 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 Job
average percent change in pricing year over year, we training, Career technical education, and dropout
see very different pictures depending on the length prevention program (sB675)
of the term we are analyzing: sB 675 (Clean technology and Renewable energy
i. short term (last 5 years): +12.5% Job training, Career technical education, and
ii. 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 the
public policy implications Superintendent of Public Instruction for expenditure
Many projects are dependent upon public policy in the form of local grants to be allocated pursuant to
initiatives that help create an environment that is the existing provisions for creating and maintaining
conducive to the development of energy projects. This partnership academies; require a grantee to implement
includes incentive programs, utility rate design and or maintain a partnership academy that focuses on
performance requirements. The following measures employment in clean technology businesses and
may impact energy projects in 2010 and beyond. renewable energy businesses and provides skilled
workforces for the products and services for energy
san diego County solar and Wind energy or water conservation, or both, renewable energy,
ordinances pollution reduction, or other technologies; require
The Solar Energy Ordinance (POD 09-006) codifies the California Energy Commission, in consultation
current processes with regard to Solar Energy Systems with the State Department of Education, to develop
and also allows for less than 10 acres of photovoltaic guidelines, that would be exempted from the
solar panels with an Administrative Permit rather than Administrative Procedure Act, to ensure that programs
the current requirement of a Major Use Permit. The receiving grants reflect current state energy policies
minor wind set of ordinance (POD 10-007) changes and priorities as well as provide skills and education
removed outdated references to old state code and linked to the needs of relevant industries; authorize
allows for up to 5 (rather than the previous 2) smaller- a school district to apply for planning grants for
sized 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 to
aB510 requires that the standard contract or tariff pay the costs incurred in the administration of this
for net energy metering be offered on a first-come- program; require the State Department of Education
first-served basis until the time that the total rated in consultation with the California Energy Commission
generating capacity used by eligible customer- to provide a report to the Legislature that includes a
generators exceeds 5% of the electric utility’s aggregate description of the curriculum and substance of the
customer peak demand. The bill would require an programs funded by grants awarded pursuant to
electrical corporation to include a provision in the these provisions, and specified data; and provide
net energy metering contract or tariff requiring that that the bill’s provisions would become inoperative
any customer with an existing electrical generating on June 30, 2016, and, as of January 1, 2017, would
facility and meter who enters into a new net energy repeal these provisions.
6

7. Climate Change/Greenhouse Gas Reduction • Excess generation applied to Benefiting Accounts
aB 32 – In 2006, the Legislature passed and will be valued at the generation-only component
Governor Schwarzenegger signed AB 32, the Global of the time-of-use rate
Warming Solutions Act of 2006, which set the 2020 • A Generating Account customer can take service
greenhouse gas emissions reduction goal into law. under either a NEM tariff or a RES-BCT tariff, but
It directed the California Air Resources Board (ARB not both
or Board) to begin developing discrete early actions, • The utilities may charge a one-time set up fee per
effective as of January 1, 2010, to reduce greenhouse account of up to $500. The utilities may charge a
gases while also preparing a scoping plan to identify monthly billing charge to the generating account
how best to reach the 2020 limit. The reduction of no more than $30 per month per month
measures to meet the 2020 target are • Generating Accounts, as well
to be adopted by the start of 20113. as Benefiting Accounts, are allowed
to participate in CPP (Critical Peak
efficiency performance standards Pricing) service
California state energy Code (Title • SDG&E shall modify its RES-
24) – Compliance at 15% above title BCT tariff to allow customers to take
24 is desired. service under Schedule DG-R
Green Building action plan for state • Benefiting Account must receive
facilities – All employees and all service under a TOU schedule
State entities under the Governor’s • Electricity exported by the local
jurisdiction shall immediately and government may not be sold
expeditiously take all practical • Remaining credits are carried
and cost-effective measures to over to the next month, but expire
implement the goals of the Green at the end of 12 months
Building Action Plan specific to • Local government must give
facilities owned, funded or leased 60 days advance notice before
by the State4. operation, within 30 days utility must
file an advice letter with the CPUC,
utility Rate design CPUC must respond within 30 days
aB 2466 – Authorizes a local government entity • Renewable Energy Credits (RECs) associated with
to receive a credit on their electric bill for power energy remain property of the generators
generated from a renewable energy facility owned by • Statewide, there is a limit of 250 MW
that entity that generates more energy than required • A Generating Account customer can take service
to serve the site where the facility is located. under either a NEM tariff or a RES-BCT tariff, but
not both
Renewable energy self-Generation Bill Credit • Local government is responsible for metering and
transfer (Res-BCt) – Public Utilities Code 2830, interconnection
established by AB 2466 (Laird, 2008), requires utilities • CPUC is responsible for preventing RES-BCT from
to establish a tariff which allows local government shifting costs to bundled service customers
entities to generate electricity at a primary account • IOU is responsible for maintaining transmission
and transfer any excess credits to another ‘benefiting’ and distribution infrastructure and billing
account so long as both facilities are owned or
operated by the same local government. Any ‘Local aB 1969 (Ca feed-in tariff) – Allows for the sale of
government’, defined as a city and or county, political excess energy to SDG&E for a price point established
subdivision, school district, or UC or CSU campus may by the CPUC called the Market Price Referent
participate 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 November
The dominant generation technology is a combined- of 2010, Collaborative for High Performance Schools
cycle 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 jointly
aB 920 – Assembly Bill 920 (AB 920) requires for CHPS Verified recognition and Proposition 1D
investor-owned utilities (IOU) to compensate Net High Performance Incentive Grant funding. In the
Energy Metering (NEM) customers for any net CHPS Verified program, accountability rests on the
surplus generation as of Jan. 1, 2011. Currently, the design team, school district, CHPS, DSA (for design
California Public Utilities Commission (CPUC) has not review) and a 3rd-party reviewer (for construction
yet approved a ruling on what the dollar value per review) to ensure that the high performance features
kilowatt-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 significantly
The progress of this decision can be found at http:// increased the incentive amounts. A High Performance
docs.cpuc.ca.gov/published/proceedings/A1003017. Base Incentive Grant (HPBIG) is now available for
htm. Although the details still need to be worked projects utilizing the 2009 CA- CHPS Criteria. The
out the current proposed method of determining HPBIG awards $250,000 for modernization projects
the amount of compensation will be based on the meeting the minimum threshold of 20 HPI points
Commission-adopted Market Price Referent (MPR), and $150,000 for new construction projects meeting
adjusted by time of delivery factors. The resulting net the minimum threshold of 27 HPI points. The HPBIG
surplus compensation rate in the current proposed was created as a onetime per school site incentive to
decision ranges from 10.8 to 12.7 cents per kilowatt apply for HPI Grant funding. As of March 2011, there
hour. This rate includes payment for the renewable is about $900 million in Prop 1D spending authority
attributes of the net surplus generation6. remaining for modernization projects, $300 million in
state bond authority for new construction, and $70
The 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.7
state funding and incentive programs
High performance incentive (Hpi) Grant – California Bright schools program (All publicly funded K–12
voters approved a $100 million high performance school districts and nonprofit K–12 schools are eligible
school 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 school
on the basis of a project’s High Performance operations keep going up. One way to save money
Rating Criteria” (HPRC) score. The funding is part is by reducing your energy costs. The Bright Schools
of a larger $7.3 billion package to upgrade public Program offers services to help find ways for you to
schools, including kindergarten through twelfth become more energy wise8.
grade. The high performance incentives will fund
new construction and modernization projects that The Energy Commission is temporarily suspending
promote the efficient use of water, natural resources technical assistance provided under the Bright School
and energy, and also provide superior indoor air Program (BSP). Due to workload constraints associated
quality, 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 offered
eligible for incentives for meeting the Proposition 1D to BSP applicants as of December 3, 2009. Typically,
High Performance school regulations. Eligible school
projects will be awarded incentives through the Office
of Public School Construction (OPSC) first-come,
8

9. the technical assistance program has provided energy CPUC to develop the underlying methodologies and
audits to K-12 schools to identify energy saving future program design.
recommendations or reviews of energy proposals
and 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 by
emerging Renewables program (Eligible CCSE) is expended; all un-confirmed Non-Residential
technologies include small wind turbines with a rated kilowatts in the CCSE territory are not ensured a
output of 50 kilowatts (kW) or less and fuel cells that CSI incentive at this time. Applicants may continue
use a chemical process to convert renewable fuels to submit their reservation requests and CCSE will
into electricity.) – The California Energy Commission’s include your application on the CSI Non-Residential
Emerging Renewables Program provides rebates to Project Waitlist based on the time and date it was
consumers who install qualifying renewable energy received. Consequently, CCSE cannot guarantee
systems (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 water
vary according to the system size, technology and heating (SWH) projects will receive CSI incentives in
installation method10. the future.12
California solar initiative (Eligible technologies CCSE will diligently track due dates of previously
include, photovoltaics and other solar electric reserved projects and maintain their progress through
generating technologies. Other solar electric the application process. If these projects do not meet
generating technologies are categorized as either the designated timelines, they will drop out of the CSI
electric displacing or electric generating. Electric Program, and the reserved funds will be reallocated
displacing: Solar space & process heating and solar to the wait listed projects in the order received13.
driven cooling (e.g., absorption and adsorption
chillers and desiccant systems); Electric generating: sB585 Senate Bill 585 (SB585) amends the California
Dish Stirling, Solar Trough, Dish and Lens and Solar Initiative (CSI) statute to allow the 10-year
Concentrating Solar). The CSI Program offers program to collect additional funds above the current
incentives for both photovoltaics (PV), as well as $2.167 billion current cap in order to fully fund the
other solar electric generating technologies that non-residential portion of the solar program. The bill
either generate electricity or displace electricity would address the funding shortfall of approximately
usage. Currently, other solar electric generating $200 million needed to fully attain the California
technologies 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 help
technologies that displace electricity includes much more than attain approximately 400 MW of
are capped at $100.8 million . The
11
non-residential solar through the
the cost to design and
California 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 immediately
incentives over the next ten years amend the budget and effectively
for solar thermal technologies under must also be included. open the “wait-list” portions of the
the California Solar Initiative. State CSI program14.
law (Senate Bill 1) limits California
Solar Initiative incentives to electric-displacing
technologies, 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 demonstrate
technologies include Renewables Level 2 Incentive: to the Building Division that the project
Fuel Cells operating on renewable fuels, wind exceeds the Title 24 minimum standards
turbines and advanced energy storage coupled by submitting compliance documentation
with renewable eligible self generation technology done on a computer program approved
and four hour discharge at rated capacity; Non- by the California Energy Commission. The
Renewables Level 3 Incentive: Fuel Cells operating on County of San Diego has a Green Building
non-renewable fuels and advanced energy storage Incentive Program designed to promote
coupled with non-renewable eligible self generation the use of resource efficient construction
technology and four hour discharge at rated capacity). materials, water conservation and energy
Only self-generation equipment installed on the Host efficiency in new and remodeled residential
Customer’s side of the Electric Utility meter is eligible. and commercial buildings. The program offers
Self-Generation refers to distributed generation incentives of reduced plan check turnaround
technologies installed on the customer’s side of the time, no fees for the building permit and plan
utility meter. Equipment must be sized to serve all or check of residential photovoltaic systems and
a portion of the electrical load at the Site . Through
15
a 7.5% reduction in plan check and building
the SGIP, the California Center for Sustainable Energy permit fees for projects meeting program
provides incentives for up to 5 megawatts (MW) of requirements16.
distributed generation equipment. Qualifying “self-
generation” equipment must be certified to operate federal funding and incentives
in parallel with the electrical grid and meet other american Recovery and Reinvestment act (aRRa) –
criteria established by the CPUC. Facilities and Energy Funding Opportunities
Green Building incentive program (Projects must federal tax Grant program – The American Recovery
comply 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 controls
that 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 Digital
profits, qualified energy tax credit bond lenders, and Control (DDC) conversion; 2) Constant Volume Air
cooperative 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 chiller
Qualified energy Conservation Bonds (QeCB) systems; 5) Demand Control Ventilation; 6) Chilled
Water and hot water loop outside air reset; 7) Premium
Build america Bonds (BaB) efficiency motors retrofits; 8) Condensing boilers.
Controls: 1) Installation of Energy Management
Clean Renewable energy Bonds (CReB): Eligible System; 2) Installation of SCADA system; 3) Vending
technologies include wind, closed-loop biomass, machine controllers; 4) CO sensors for parking
open-loop biomass, geothermal, solar, small irrigation garages fans) 19
power, landfill gas, trash combustion, hydropower or 1. Energy Conservation Assistance Account
a marine and hydrokinetic renewable energy facility Program (ECAA) low interest loans: Currently
under § 45(d) over-subscribed.
2. Production Tax Credit (PTC). Companies
In March 2010 Congress enacted H.R. 2847 (Sec. that generate wind, solar, geothermal and
301) permitting “New” CREB issuers may make an “closed-loop” bio energy (using dedicated
irrevocable 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-hour
Treasury equivalent to and in lieu of the amount of (kWh) benefit for the first ten years of a
the non-refundable tax credit which would otherwise renewable energy facility’s operation. Other
be provided to the bondholder. This option only technologies, such as “open-loop” biomass
applies to “New” CREBs issued after the March 18, (using farm and forest wastes rather than
2010 enactment of the law. In April 2010 the IRS dedicated energy crops), incremental
issued Notice 2010-35 providing guidance on the hydropower, small irrigation systems, landfill
direct payment option18. gas and municipal solid waste (MSW),
receive a lesser value tax credit of 1.0 cent
state energy program: Eligibility includes energy per kWh 20
efficiency and on-site solar electric or other on site 3. Business Solar Investment Tax Credit (IR Code
renewable energy generation improvements §48): The bill extends the 30% ITC for solar
energy property for eight years through
energy efficiency and Conservation Block December 31, 2016. The bill allows the ITC to
Grant: According to state law, all eligible be used to offset both regular and alternative
projects must focus on energy efficiency and minimum tax (AMT) and waives the public
must be cost-effective. Typically, the most cost- utility exception of current law (i.e., permits
effective projects include, but are not limited to: utilities to directly invest in solar facilities
lighting: 1) T-12 lamps and magnetic ballasts to and claim the ITC). The five-year accelerated
T-8 lamps and electronic ballasts conversion; 2) T-8 depreciation allowance for solar property is
lamps (32 watt) to T-8 lamps (28 watt) conversion; permanent and unaffected by passage of
3) HID and Incandescent street lighting to induction the eight-year extension of the solar ITC21.
or LED street lighting conversion; 4) HID lighting for
parking garages or lots to induction or LED lighting
conversion; 5) Incandescent or fluorescent exit signs
to LED exit signs; 6) Incandescent lamps to fluorescent
11

12. energy Costs and Rates
The value of energy is established based on each energy versus demand. Utility tariffs have two
utility’s cost to produce and deliver that energy primary cost components, Generation/Energy and
during different times of the day. In the case of Delivery/Demand). For the electric industry, energy
Investor-Owned Utilities, they analyze how much is the quantity of electricity supplied or used
they expect to spend in the future to provide power (consumed) by an individual customer, average
to utility customers, then they define the rates and customer, group of customers or class of service. It
justification to the Public Utilities Commission (PUC), is the product of power (in watts) and the amount
and, finally, the PUC accepts or rejects the tariff. This of time for which the power was used. Demand is
process can play out multiple times a year as the the rate at which electric energy is used at a given
cost 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 to
of a customer’s energy project. For this reason, it very a car’s odometer and demand is similar to a car’s
important to understand how applicable utility rate speedometer.
structures can affect the total utility bill and what that
means for your energy project. figure 3: time of use
figure 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 be
maximum demand value achieved during the month billed at the CPP-D Period rates.”
of operation. For example, if the maximum demand
reached by the customer was 100kW, the cost would “The customer shall be responsible for paying a
be 100kW x Demand Rate = $ monthly Capacity Reservation Charge (CRC) for
12-months, as set forth in the Rates section, for
Critical peak pricing (Cpp) is a new complex utility each kW of reserved capacity.” 22
rate structure available to commercial customers.
This new tariff can provide customers that have That last section is important because it states that
predictable load needs, who are able to reduce customers will be paying for the insurance policy for
demand when called upon to do so, savings upwards every month of the year, even though CPP events
of 15% on their current utility costs compared with only happen during the summer season and may not
the AL-TOU tariff. These customers must be willing happen at all. To put these costs in reference, a facility
to forgo the risk mitigation mechanism known as with a 100kW capacity level during the peak period
the Capacity Reservation. However, the actual CPP of the day would have to spend $639 per month in
utility costs compared with the standard commercial order to not incur the additional $1/kWh for energy
tariff (AL-TOU) are highly unpredictable due to a consumed during a CPP event. That’s an additional
dependence on the occurrence or non-occurrence of $8,000 a year spent on a mechanism designed to
CPP events. insure against high energy costs. Customers do have
the option to elect for any capacity reserve amount
The uncertainty of how many CPP events the including zero, but for customers who use large
utility experiences during the summer season will volumes of energy during summer peak periods, one
determine the value of the CPP tariff for subscribing CPP day and no capacity reserve can result in very
customers. 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 averages
the CPP tariff, the customer must establish a minimum a monthly maximum demand of 422 kW consumes
needed capacity reservation (CR) such that during an average of 30,000 kWh during the peak periods
a CPP event, if the customer is unable to reduce of each month at a peak price of $0.122/kWh during
demand below the CR, that customer will experience non-event days for an average monthly peak period
higher 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 demand
or about $152 a day in peak period energy charges. limiting measures, or, in the case where limiting
Let’s now assume the CR is set to zero and a CPP demand is not an option, changing to a tariff with
day 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 is
in $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. The
charges from $3,660 to $4,885. Considering that CPP primary components of the bill are the Demand and
events are designed to motivate customers to shed Consumption charges. As demand charges compose
load during the energy hungry periods when the more of the utility bill, onsite energy generation
temperature is high and many homes and businesses systems become less effective at offsetting a large
are consuming significant volumes of energy for the portion of the total bill because on site generation
purposes of cooling, it reasonable to assume that systems do not offset demand usage. In order to
when there is cause for one CCP event, there may be offset these demand charges, a combination of onsite
cause for more. generation and a tariff with reduced demand rates is
the most beneficial.
tariff strategies 1. Maximizing Savings – In order to
utility Billing (tou vs Non-tou). PIER research created an maximize savings, a combination of
Utility companies use different rate onsite generation and an electricity
easy benchmarking process
structures when billing a customer tariff with reduced demand rates
for their energy and demand use. to determine how well is the most beneficial. With this
Understanding these structures new tariff, the amount of annual
can be beneficial in choosing which each building in a school savings increases in a linear fashion
applicable tariff would be best district is performing. offsetting up to 100% of energy
for a specific site, especially when charges. Therefore, the maximum
installing on site generation. There savings attainable is with a system
are Time of Use (TOU) rates and flat that produces 100% of the energy
billing 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 energy
periods of the day. In a time-of-use rate structure, usage of the building will not vary too much
higher prices are charged during utility peak-load overtime, it is unwise to offset 100% of energy
times. Such rates can provide an incentive for costs as changes in energy usage and system
consumers to curb power use during peak time. product can result in negative effects.
2. Maximizing Payback – Maximizing payback
If demand is not a specifically called out component requires maximizing the value of kilowatt-hours
of 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 done
is built into the $/kWh price for each period. For a with a combination of onsite generation and a
tariff 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 production
demand usage measured over all 15-minute intervals can either increase or decrease with a larger
during 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 costs
from solar, since PV system production is at its peak
when 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 be
accessing Your energy Consumption data aware of or knowledgeable in using benchmarking
The absolute first step to understanding your tools, and the Energy Star toolkit is considered the
consumption is to obtain access to your consumption standard by which other tools are compared.
data from the local utility. Energy consultants will
need this data to target the systems for savings and Creating an energy plan
also as inputs for the school benchmarking. For The resource document titled, “Planning for Energy
school meters using the standard commercial utility Efficiency,” by California’s Coalition for Affordable
tariff AL-TOU, detailed consumption data is available School Housing does a fantastic job of outlining the
through a variety of channels: various elements of a district wide Energy Plan and
1. 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.
Benchmarking
Benchmarking the energy consumption of a facility
against similarly functioning facilities is an excellent
energy management method that will result in a
better understanding of how energy is used by each
facility and district that may help to identify areas
15

16. CHapteR
3
project development and Management
Project scoping is often established by installation approach to designing the various building systems
contractors as part of the free bid development for efficiency and creating system synergies around
to a prospective client. The more prudent process intended results, such as designing a roof to maximize
of determining the site needs and project scope the available square footage for the installation of
is to conduct a pre-project feasibility assessment solar. Retrofit projects are generally constrained by
either utilizing in-house experts or qualified, the existing facility footprint and infrastructure layout
independent third-party engineering consultants such that the new system must seamlessly integrate
that will not financially benefit from into the old design. In many ways, the retrofit project
the installation of the project. The is defined by the technical and
resulting study should identify not Throughout California, economic constraints of existing
only the potential for energy cost systems; whereas new construction
savings, but also should layout the local government requires must contemplate how to design
manufacturer agnostic project scope permits for residential and the infrastructure systems to easily
associated 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 upon
Although most contractors/vendors do not overtly historical consumption patterns and costs. New
intend to mislead their clients, they do typically have a construction projects make assumptions as to how
vested interest in expansion of the project scope and each system will be utilized, but the actual economic
may bolster their savings information and benefits to benefits may not be fully understood until after the
make 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 will
savings calculation and system payback provide generally be more accurate for a retrofit project than
the client with an alternate opinion from which to a new construction project.
compare vendor proposals in order to assist in the
decision making process. This helps the project owner developing an Rfp
become objectively informed about the potential A Request for Proposal (RFP) is essentially a way to tell
project scope and benefits. In the case of solar Power prospective vendors what work you want done, how
Purchase Agreements (PPA), third party assessments you want them to do it and when the bids and work
can determine what the facility owner can afford to are due. An RFP also helps you to create a structure to
pay to a PPA provider for the electricity produced by organize your needs and timeline.
the system.
The content of the RFP should contain a statement
project 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 the
project intent. Planning a new construction project
is complex to develop, but allows for a more holistic
16

17. a schedule that specifies when activities should identifying Qualified Contractors
be completed and deliverables are due; specifics Projects are commonly identified and initiated by
on vendor responsibilities; details on the bidding; contractors and vendors looking to do the work
proposal evaluation method and selection process; for the client. While this is an easy approach for the
and details on payment amounts and methods. A client, as the contractor provides cost estimates and
sample solar RFP developed by UCSD around a power performance expectations, it lacks the diversity and
purchase agreement can be viewed here. Additionally, due diligence a comprehensive bid process offers
the Energy Services Coalition has the client. By developing the work
some good resource documentation A school installing a scope independent of the installing
on RFPs for energy performance contractor and then putting the
contracts 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 solutions
Goals and objectives – Goals and and pricing aimed at meeting
objectives refer to the anticipated see permitting fees up to the goal, not necessarily aimed
project outcomes. Goals and at selling a product. However, as
$1,200.
objectives should be stated clearly with any bid, identifying qualified
and include quantifiable targets. contractors can be tricky, but is
critical to getting quality, actionable
Justification/technical Merit – What is the importance bids. CCSE maintains a list of licensed contractors by
of the project and why is it needed? Where is it service type that is routinely managed to eliminate
located? What is the context of the project in terms of contractors with formal complaints against them or
accomplishments? 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 and
identification of limiting factors).
experience – Applicants must show capacity to
implement the scope and scale of the proposed work
and the ability to successfully complete the project
within the proposed budget and timeline.
Budget/Cost effectiveness – The budget description
should detail all funds requested and all matching
funds and in-kind contributions and follow the budget
format provided. It should also include information
on whether matching funds and other contributions
are pending or secured.
CCSE Vendor List
evaluation of project proposal - The Department of http://energycenter.org/index.php/resource-center/
State Architecture RFP evaluation criteria included vendor-list
the following categories: Solar Contractors
1. Certification of the Stipulated Sum as prerequisite http://www.gosolarcalifornia.ca.gov/database/
to further evaluation of the proposal; search-new.php
2. Designated Subcontractors; SWH Eligible Contractors
3. 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-list
6. Quality Enhancements23.
17

18. Managing the project timeline
Project timelines are typically determined by site Joint purchase agreements (Jpa)
need and construction lead times, but more recently, Joint purchase agreements leverage multiple projects
must synergize with project financing and incentive and multiple site owners in order to receive reduced
timeline requirements as well. Many energy projects contract pricing based on economies of scale. For
are now eligible for lucrative tax incentives and state example, a solar project developer may be able to
rebates that define the maximum time available achieve reduced hardware costs for a single contract
to complete the project. For example, the 30% that is requesting five MW of solar versus five discrete
depreciation tax rebate available to solar generation contracts looking for one MW of solar each. On the
system owners sunsets at the end of 2010, therefore energy efficiency side, planning for lighting retrofits
the project timeline must take that into consideration under a JPA will result in lower equipment costs and
when determining the project viability over time. Many competitive labor rates due to the size of the potential
incentive programs also have project completion contracts. The difficulty with a JPA is refining the client
timelines and deliverable dates that must be satisfied needs such that there is enough commonality in the
in order to maintain incentive eligibility. project scope to result in project cost reductions.
Regional school districts are good candidates for
Additionally, some retrofit projects will inherently this type of activity because the parallel needs and
disrupt daily operations, so consideration must be similar operating conditions should simplify the
made, such as planning work during off-hours or in JPA scope enough to warrant cost reductions; And
phases, so as not to create disturbances to normal daily supervising agencies such as the San Diego County
business operations. For example, lighting retrofits Superintendent of Schools is well suited to support
frequently require work to be performed during this activity.
off-hours, but can be planned and accomplished
in phases by area, so as not to leave any occupants Validating post-project impact (Continuous
without 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
4
energy efficiency strategies and Measures
The adoption of increasingly energy efficient
technologies, energy management systems
and operational best practices create recurring
environmental and economic benefits for the facility
and its community. Energy efficiency improvements
are widely accepted as the first and most effective
way to reduce utility energy consumption costs and
can dramatically reduce the costs of a DG project
by reducing the amount of capacity needed from
the DG system. Many energy related state incentive
programs require some form of energy efficiency audit
and evaluation in order to improve the value of the
program objectives and are driven by the California
Energy Commission’s reports on Implementing
California’s Loading Order For Electricity Resources
and the Long-Term Energy Efficiency Strategic Plan. In some cases, the benefits of an energy efficiency
upgrade may be neutralized by not adhering to
To reiterate what was mentioned in Chapter 2, a key intended operational criteria, thereby defeating the
concept that is being repeated in many new state and purpose of the project. Such is the case when the
federal energy efficiency programs is benchmarking. facility has a zonal HVAC system, but personnel opt
New programs will require participating entities to use costly plug-in electric space heaters instead of
to benchmark their buildings using the Energy coordinating with facilities maintenance to properly
Star Benchmarking system. This provides a way adjust the zonal controls.
to compare each facility’s energy consumption
against the average consumption of similar type In all cases, the operations protocol surrounding
and use facilities. This comparison creates a better each building system should be pre-defined by the
understanding as to what is “common” use and system manufacturer and/or the system engineer
highlights where there may be distinct opportunities based on the project scope and targeted savings
to save energy. opportunities. The operations protocols should be
readily available to facility operators along with high
facility operations and Maintenance quality operational training and education. Energy
By effectively operating, monitoring and managing monitoring systems greatly improve the operational
facility energy use, schools can reduce energy costs feedback loop to facility managers, creating a way to
by 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 for
consumption with cost effective use conditions to building systems provides a way to recalibrate the
provide both a comfortable and efficient educational operational conditions to adjust for constantly
environment. The act of maintaining those systems changing energy consumption patterns and building
helps prevent deterioration of effective use and system capabilities, which in turn optimizes the
prevents 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 facilities
monitoring and managing energy usage. Frequently, the structural “bones” of a facility are
1. 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. lighting
2. 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) than
CFL, but the technology cost proposition still the standard 60 Hz at which magnetic ballasts
limits 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 conduct
Fluorescent and Induction Lighting (Classrooms the energy to the gas using an electro-magnetic
and Hallways) – The most common lighting field, which in turn extends the life of the bulb
found in classrooms and hallways are linear significantly while reducing energy consumption
fluorescent lighting. Fluorescent bulbs illuminate as much as 40% compared with similarly
when the mercury in a gas filled lamp is excited specified fluorescent bulbs. Induction lighting is
by electricity; resulting in the emission of UV generally costlier than fluorescent lighting but
radiation that in turn is converted into visible as costs come down, induction lighting appears
white light by the phosphor coating on the bulb. to be the next generation of effective lighting
The phosphor coating determines the color solutions.
qualities of the light. Fluorescent lamps use
electrodes to strike the arc and initiate the flow
of current through the lamp, which excites the Energy comprises
gas fill. approximately 80% to 90%
Each time voltage is supplied by the ballast and of the annual cost, and
the arc is struck, the electrodes degrade a little,
between 65% and 85%
eventually causing the lamp to fail. T12 lamps and
magnetic ballasts are high energy consuming of the life cycle cost of a
lighting and should be replaced with electronic
ballasts and T8 lamps whenever possible. T8 lighting system.
lamps require electronic ballasts specifically
designed to operate lamps at a lower current than
T12 lamps. Whenever T12 lamps are replaced High Bay Lighting (Gymnasiums) – In high bay
with T8 lamps, the ballast must also be replaced. areas such as gymnasiums where natural daylight
Electronic ballasts offer lots of advantages over is sometimes limited, switching lighting types
magnetic ballasts such as no flicker, less heat, can be incredibly cost effective. The lighting
much less noise and the ability to operate as most common in gymnasium areas today is high
many as four lamps to a single ballast. Some bay metal halide. Induction lighting is quickly
offer dimming, soft start, rapid start, instant start becoming the best alternative to metal halide
and programmable start. Programmable start lighting. Induction lamps are ideally suited
ballasts are used in conjunction with motion for high-ceiling applications where the lamps
sensors or dimming photosensors.
Electronic ballasts operate fluorescent lamps at
21

22. are difficult, costly or hazardous to access. The
increased costs occurs in the induction systems
themselves – which could be 2-3 times more
than metal halide systems, and also in new
fixtures, which can inflate payback periods and
reduce return on investment. It is also possible
with high-bay induction lighting to get upwards
of a 30% reduction in capital and operating
costs immediately from the reduced number of
fixtures made possible by the higher light output.
Apply that over ten years, plus replacement and
maintenance costs, and suddenly it makes a lot
of sense to consider induction lighting systems.
Over the long term period induction lighting is can get by on daylighting alone, so a common
the best high-bay alternative, but for a short term compromise is the use of multiple levels of light
solution, high output T-5 fluorescent fixtures activation switching. The perimeter offices of a
may also be an effective solution26. building with outside exposures can have some
lamps in each fluorescent ceiling fixture on one
Accent, Parking and other Ancillary Lighting – control switch and the balance of the lamps on
Induction lighting is an effective solution for another, allowing for the stepping up of light
overhead parking area lighting. Cove lighting, output based on external light availability. For
pathway lights and other accent lighting are example, three lamp fixtures permit four levels
good niche applications for LEDs. LEDs work of lighting: off, one, two and three lamps. In large
especially well in conditions where it is cold, such open offices, exterior hallways or classrooms
as exterior path lights for night time illumination. with perimeter daylighting, the outermost row
If exterior lighting loads are metered separately of lights can be controlled separately; supplying
from building loads, there may be unique savings lighting only when a photosensor indicates
opportunities related to tariff utilization and the daylight is inadequate. The additional
distributed generation. cost for controlled lighting can be recouped
through the resulting savings and
Daylighting - Using external light occupant’s comfort associated
Using Energy Star
to illuminate an interior space is with daylighting. Exterior lighting
excellent opportunity to reduce equipment can save 50% (building, parking and pathway
energy consumption in areas lights) should be put on timers or
on energy costs. photosensors to reduce exterior
where accesses to external
walls and the roof are possible. lighting during day light periods27.
There are retrofit technologies that support
the 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 application
Lighting Controls – Synergizing with energy instead of simply replacing the unit with a similarly
management systems, lighting controls help sized unit. The standard operations of a facility may
reduce 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 the
day lit areas. For areas with skylight or large current operating use into consideration. A common
south facing windows, continually dimming
photosensors can be used to take advantage of
and maximize the natural daylight. Few offices
22

23. theme addressed throughout this document holds fans and pumps – For the schools with large HVAC
true for HVAC systems as well: abide by or exceed title equipment that serves large buildings with multiple
24 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 the
Refrigeration – Schools do not have large refrigeration building load attributed to the envelope, exfiltration
loads, however replacing large commercial and infiltration. The double set of vestibule doors
refrigerators 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 air
for reducing refrigeration load. A new ENERGY STAR flow, since one set of doors is always closed. Also, the
specification for commercial refrigerators and freezers volume of air trapped between the portals acts as a
becomes 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 thermal
energy efficient than standard options. To encourage resistance of the passageway.
customers to buy energy efficient products, ENERGY
STAR partners occasionally sponsor special offers, such The critical exposures of a building in the northern
as sales tax exemptions or credits, or rebates on qualified hemisphere are those facing south and west. They
products. Partners also occasionally sponsor recycling receive the most direct sunlight in the summer and
incentives 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. This
roof of small structures. Deciduous trees, in addition, interactive energy management tool allows you to
will lose their leaves in the winter to expose the track and assess energy and water consumption
building to the warming sunlight28. across your entire portfolio of buildings in a
secure online environment. The LEED for Existing
Weather-stripping doors can reduce the amount Buildings Rating System helps building owners
of outside air infiltration as well as prevent and operators measure operations, improvements
conditioned air from leaking out of the building. and maintenance on a consistent scale, with the
Consider retrofitting your roof insulation to a goal of maximizing operational efficiency, while
rigid R-30 (zone 7) panel or adding insulation minimizing environmental impacts. LEED for Existing
up 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 programs
user of electricity in an institutional facility, such as and systems upgrades. It can be applied both to
a school or hospital, is the kitchen. This is especially existing buildings seeking LEED certification for the
true of a kitchen in which most of the appliances are first time and to projects previously certified under
electric. An expensive but potentially worthwhile LEED for New Construction, Schools or Core & Shell30.
project is to convert an all electric kitchen to gas
appliances that are cleaner, more efficient and energy star and leed New Construction Guidelines
cheaper to operate. There are many incentives – The LEED for New Construction Rating System is
available for Energy Star rated appliances29. designed to guide and distinguish high-performance
commercial and institutional projects, including
energy 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. Prerequisites
system, 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
5
distributed energy Resources
Distributed energy resources (DER) provide energy The high, up-front capital costs of most DER projects
consumers with a way to become more self-sufficient constitute the greatest barrier to widespread
in their power needs while at the same time improving technology adoption, which, in-turn, has lead to
energy reliability and cost savings on the formulation of various project
their utility electric bill. The district estimates financing models. Specifically, the
solar industry brought the concept of
The term “distributed energy potential savings of up to a power purchase agreement (PPA)
resources” encompasses power to the DER market in order to capture
generation and storage technology $3 million a year if all of the
the federal tax credit on projects
applications for electricity at district’s school roofs were where the end-user is a nontaxable
distribution voltage levels designed entity. While reducing barriers to
to address on-site energy needs. In made solar. adoption, revolutionary financing
terms of energy generation capacity, models may be less understood by
20 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 uncharted
Since 2001, the California ratepayer-funded Self- territory.
Generation Incentive Program (SGIP) has provided
rebates for projects installing eligible distributed The following sections highlight the key parameters
generation (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 into
or a way to offset high-priced peak period utility electricity. The term “photo” comes from the Greek
costs. 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 for
a much larger audience of energy consumers to PV is maximized by facing south and/or west and
reduce their annual electricity bill by generating grid- generally requires large tracts of open space with
parallel 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 future
smart-grid in that the technology became eligible for The following technologies are available and are the
incentives through the SGIP in 2008, and the CPUC prevalent means of chemically generating electricity
plans to continue to provide AES incentive funding from solar photons.
through the life of the program. To the renewable
energy industry, AES is seen as the holy grail of Crystalline – Historically, crystalline silicon
technologies that would change renewable power (c-Si) has been used as the light-absorbing
from being dependent upon the availability of the semiconductor in most solar cells and has
wind and sun to generating clean energy that is firm
and 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 installed
One of the confusing aspects of the solar market is and how to secure the PV system in place are anything
the ever-growing number of ways photovoltaics can but trivial. In most cases, the size and layout of the site
be applied on a project. PV manufacturers have taken will determine the applicable installation method by
the above conversion methods and designed a bevy restricting the area available for solar. The following
of applications to install PV at a facility. This is because is a short summary of the various mounting methods
each project is unique and has unique conditions and their advantages/disadvantages.
under which the project must conform to in order to
be successful. For example, an older building may not
be able to support the roof load of a standard module
installation 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 a
generate the most annual energy possible from a steel or aluminum frame, often one that could be
fixed azimuth and tilt angle. These systems can be adopted for building use, attached to a concrete
designed to maximize total energy production at foundation. This system can provide easy access
a space-constrained site by making sure to avoid to the modules and is generally an affordable
seasonal 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 integrated
kilowatt-hour production per available area. solutions. Some examples are roof- integrated
tile panels and bifacial solar windows that allow
tracking systems follow the daily path of the sun natural light through spaces between the PV
in order to maximize kilowatt-hours produced cells.
per kilowatt of solar installed. In essence, a
tracking system gets more kilowatt-hours out pedestrian shade structures are used to
of each kilowatt of capacity than a fixed system. maximize space with a pedestrian purpose such
Tracking systems can improve the electrical as parking, walkways or other outdoor activity
production efficiency of the installed kilowatts spaces. This application holds more value in
of solar by as much as 20% over fixed systems. areas of the country where insolation is higher
However, tracking systems are space hogs due to such as in the Southwest. The basic concept is a
the need to design each tracker such that it does
not cause shading on one of its neighboring
trackers. It is for this reason that trackers are
suited for systems where space is not a concern
such as utility scale projects.
Roof-mounted solar power systems are solar
modules (solar panels) that are integrated into,
or mounted on top of, the structure of a roof.
Usually, the best location for solar modules is a
south-facing roof, but roofs that face east or west
may also be acceptable. Flat roofs also work well
for solar power systems because solar modules
can be mounted flat on the roof facing straight
up or fixed on frames tilted toward the south at
an 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 or
solar thermal (see previous section for update) other glazing, it warms the sunspace. Proper
Solar thermal technologies capture heat energy from ventilation allows the heat to circulate into
the sun to drive turbine generators, heat domestic the building
water 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 and
scale 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, installed
solar thermal power generation is primarily a utility a few inches in front of the wall, helps hold
scale application. Solar water heating and space in the heat. The wall heats up slowly during
conditioning are well suited for facility applications the day. Then as it cools gradually during the
because 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 be
Solar thermal applications are suited for large open accomplished using thermally activated cooling
area with minimal shade trees or other obstructions systems (TACS) driven by solar energy. Because
such 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 to
well 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 mirrors
solar ventilation (used to preheat air) – Many known as heliostats to focus and concentrate
large buildings need ventilated air to maintain sunlight onto a receiver on top of a tower. A
indoor air quality. In cold climates, heating this heat-transfer fluid heated in the receiver is
air can use large amounts of energy. But a solar used to generate steam, which, in turn, is
ventilation system can preheat the air, saving used in a conventional turbine generator to
both energy and money. This type of system produce electricity. Some power towers use
typically uses a transpired collector, which water/steam as the heat-transfer fluid. Other
consists of a thin, black metal panel mounted advanced designs are experimenting with
on a south-facing wall to absorb the sun’s heat. molten nitrate salt because of its superior
Air passes through the many heat-transfer and energy-storage
small holes in the panel. A capabilities. The energy-storage
space behind the perforated A grid neutral environment capability, or thermal storage, allows
wall allows the air streams from the system to continue to dispatch
the holes to mix together. The could save $21.5 million electricity during cloudy weather or
heated air is then sucked out per year and as much as at night45.
from the top of the space into
the 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 generation
use 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 with
of concentrating solar power systems. internal combustion engines and large gas turbine
1. 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, food
2. 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 of
advantages over other technologies for small- the most versatile and oldest prime-mover
scale power generation. These include their technologies still in general production.
small number of moving parts, compact size, Conventional steam turbine power plants
light weight, greater efficiency, lower emissions, generate most of the electricity produced in the
lower electricity costs and ability to use waste United States. The capacity of steam turbines can
fuels. They can be located on sites with space range from 50 kW to several hundred MWs but
limitations 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 as
efficiencies of greater than 80%. Because of a byproduct of heat (steam) generation. A steam
their compact size, relatively low capital costs, turbine is captive to a separate heat source and
low 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 the
expected to capture a significant share of the turbine through high-pressure steam that in
distributed 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 available
in sizes ranging from 500 kilowatts (kW) to Reciprocating engines – Reciprocating internal
250 megawatts (MW). Gas turbines produce combustion engines are a widespread and well-
high-quality exhaust heat that can be used known technology. Reciprocating engines are
in CHP configurations to reach overall system available for power generation applications in
efficiencies (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 offer
the cleanest means of generating electricity, low first cost, fast start-up, proven reliability
with 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 heat
million (ppm range, either with catalytic exhaust recovery potential. Waste heat recovered from
cleanup or lean pre-mixed combustion. Because the hot engine exhaust and from the engine
of their relatively high efficiency and reliance cooling systems produces either hot water or
on natural gas as the primary fuel, gas turbines low pressure steam for CHP applications. Overall
emit substantially less carbon dioxide (CO2) per CHP system efficiencies (electricity and useful
kilowatt-hour (kWh) generated than any other
fossil 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) or
Unfortunately for San Diego, most of our wind a fuel wheeling contract with an entity that has an
resource is located off-shore or in high terrain of east inexhaustible supply. The second method isn’t truly
county and is therefore not a popular technology for using the actual biogas, but instead is qualifying that
the region. The Self-Generation Incentive Program for every therm of utility-fed natural gas used by the
offers incentives for the installation of wind turbines, system, the supplier is injecting an equal amount of
but in nine years of incentives, we have yet to see any biogas therms into the system.
San Diego wind project receive an incentive because
the 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 number
system sizing and siting Considerations of site-related items to consider when installing
The following topics identify important, high-level a DER system. The life of these systems are often
concepts to keep in mind when conducting DER 10-20+ years and any long-term plans for the
feasibility 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
6
legal project Considerations
Most capital improvement energy efficiency sole sourcing
projects generally trigger many of the same legal Pursuant to Section 3400 of the Public Contract
and 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 sole
elements of a renewable energy project with the source a renewable energy project upon a finding
understanding 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 be
intended to be an all-inclusive summary of all made to determine the product’s suitability for
legal 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 a
school districts with a high-level overview of legal particular public improvement either completed
considerations 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 only
legal counsel. This chapter is organized into the available from one source.
following subsections which may also be utilized
as an informal checklist by districts to verify that Board findings for energy services Contracting
particular legal issues triggered by the project have To rely upon Government Code Section 4217 et seq
been considered and addressed. to informally procure a renewable energy project,
procurement Method (competitive bid, request for
proposals 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-generation
lease to the real property, is anticipated to be offset system require a specific amount of energy
by below-market energy purchases or other benefits to be generated by the system in order to
provided under the proposed agreement. The maximize the NEM savings. Any variation from
meeting at which such findings must be made must that production number may result in reduced
be noticed at least two weeks prior to the meeting. savings value that will impact the financial
standing of the project. Therefore, it is prudent
power purchase agreements for the consuming entity to establish maximum
The “Customer’s Guide to Renewable Energy and minimum production levels with special
Power 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 option
understanding the Power Purchase Agreement (PPA) for entities wishing to own the system but not
structure. 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 fair
driven by customer wants. Here’s a list of negotiable market value typically starting in year seven of
terms 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 energy
it is our experience that unscrupulous contractors project, school districts should also be aware that
will attempt to persuade our public agency clients the applicable tariff structure under which a meter
to install the largest renewable energy project that falls could impact the economic benefits received
qualifies for the state rebate, regardless of the actual from a renewable energy project and, again, we
energy appetite of the district. Prior to 2010, unless recommend that our clients research the appropriate
a customer contracted with its utility for a feed- tariff structure for the meter with the renewable
in tariff, excess energy produced by a renewable energy project to ensure the maximum economic
energy project that was not consumed at the site benefits are realized for the project.
of production through net-metering or applied to
other 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 a
Bill 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 of
through 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 consent
we 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 be
The 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 on
labor code and the public contract code. Depending the roof. Individual panels need not be restrained
on the contracting method used, a district’s energy independently if the panels are connected with an
project may or may not also constitute a “public interlocking mechanism that is capable of holding
work” or “public project.” As such, an analysis the panels together in the horizontal and vertical
needs to be made under each statutory scheme to directions and must be designed to resist sliding and
ascertain whether such laws as prevailing wages, pop-up resulting from lateral and vertical seismic
certified payroll, worker’s compensation certification, forces and displacements per CBC Section 1613A
hours of labor and apprenticeship standards apply and ASCE Standard 7-05, Chapter 13. All projects
or a payment (labor and materialmen’s) bond is involving installation of photovoltaic or solar
required. Again, a district should consult with its thermal systems shall have a California licensed or
legal counsel to determine the applicability of bond registered architect or structural engineer in general
requirements and to determine whether the district responsible charge per Title 24, Part 1, Section
desires to require a performance or other bond, such 4-316. Renewable energy systems shall meet the
as a completion bond, to minimize risk of contractor requirements of the 2007 California Electrical Code
nonperformance on the project. (CEC). All systems shall be grounded in accordance
with the 2007 CEC, Article 250. Electrical cables and
division of the state architect materials shall meet the criteria for weather-proof
The 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 2007
panels, 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 Requirements
by clicking here. Small renewable energy projects Pursuant to government code section 53091, school
constructed on existing school buildings may be district renewable energy projects are exempt from
exempt from DSA review if the total cost of the city and county building and zoning ordinances.
project is less than approximately $36,000 (as this
amount may be adjusted annually).
Regardless of costs, renewable energy systems
installed on or supported by free-standing structures
(whether standing alone or attached to existing
buildings) are not exempted from DSA review.
The wind design requirements are given in CBC
Section 1609A. The design shall consider the effects
of partially enclosed structure configuration (if
presented) and discontinuities at panel free edges
and corners. Regarding ballasted solar panels, the
panels shall be designed and installed to resist
wind loads prescribed in CBC, Section 1609A. The
minimum design wind force shall be a net pressure
of 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 test
reports for wind (uplift) are required to verify the
design. The seismic anchorage design requirements
are given in CBC Section 1613A and ASCE Standard
36

37. CHapteR
7
financing Mechanisms
All energy projects ultimately boil down to the
financial impacts on a consumer’s energy resource
budget over the life of the project. These financial
impacts depend on projected cost reductions in
utility costs compared with the total project costs and
risks borne by the consumer. In the earlier sections
of this document, we discuss the various elements
that will impact direct cost reductions to the utility
bill, whereas the next section deals primarily with
identifying and procuring financial backing to install
the project.
self-funding through energy savings
This is a common method for funding facility or
building energy improvements where the financing
is paid for through the projected savings of those
improvements resulting in net neutral or net positive
cash flow starting in year one. In many cases, a
variety of improvements can be bundled together to
capture as many improvements as possible while still
maintaining 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&E
budget 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 in
funded 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 (distributed
In addition to the standard self-ownership models, generation) – Under the PPA model, the PPA
there are a variety of unique models that aim to take provider would independently secure funding
advantage of federal tax benefits unavailable to a for the project, own the project, maintain and
tax-exempt entity under a self-ownership model. In monitor the energy production and sell the
most cases, the model requires the tax-exempt entity electricity to the host at a contractual price for
to bear some additional level of risk associated with the term of the contract58.
a mid- to long-term contractual agreement with the
entity who will own the system. Below are a couple This structure allows the customer to benefit
of examples of some common external ownership from any savings, tax credits and incentives
models. 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 greater
the investment tax credits. PPAs rely on financing than or equal to the percentage increase per
partners with a tax appetite who can benefit year from the PPA provider.
from the federal tax credit. With the passage
of the American Recovery and Reinvestment Legal counsel experienced in PPA contract
Act of 2009, the solar investment tax credit negotiations process is highly recommended and
can be combined with tax-exempt financing, legal considerations regarding a PPA are discussed
significantly 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 not
Moreover, through 2010, in certain circumstances, in the production itself but in the price paid for this
the 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 rates
year one. The term of a PPA generally lasts over this time based on historical precedent cannot
between 5 and 25 years. It is also common for the factor in anomaly events like the California energy
host customer to have the option to purchase crisis of 2001. If at any time during the contract period
the generating equipment from the PPA provider the customer pays more to the PPA provider than they
after the tax benefits have been fully realized. would to the utility company, it is an immediate loss in
Most contracts give the host the option to renew savings. The determination of what price a customer
the contract with different terms, or allow them can afford to pay to the PPA provider is a complex
to request that the equipment be removed. calculation requiring detailed modeling of the utility
rates against the site load profile. It is suggested that
A typical PPA contract is structured such that a third-party assessment, validation and feasibility be
year-one price is established with some annual done to determine this price.
price escalator that is linked to the expected
utility 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 plants
kilowatt-hour to the PPA provider by the customer and create a sustainable energy future by using solar
are construction and installation costs; monitoring, technology63.
operations and maintenance costs; any rebates,
incentives or tax credits the PPA provider may
receive and pass on to the customer; and any capital
improvements being wrapped into the project, such
as shade structures or a new roof.
utility incentives and Rebates
There is a wide variety of rebate and incentive
programs offered by SDG&E, the State of California and
the federal government suited specifically to school
energy projects. The following list is comprehensive
for the San Diego region.
demand Response programs – Demand response Csi-thermal program – A new California statewide
programs 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 May
during 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 on
technical 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 (formerly
SDG&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 project
generation refers to distributed may consist of the retrofit of
generation technologies installed existing equipment/systems or
Federal, State and local
on the customer’s side of the utility the installation of equipment
meter. The electricity generated financing and incentive associated with new/ added
by the system provides a portion load. Some projects may require
or 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 on
California Center for Sustainable the quantity of kilowatt-hour
Energy provides incentives for up clicking here. (kWh) or therms saved resulting
to 5 megawatts (MW) of distributed from the installation of the new
generation equipment62. equipment or system. Customers
eligible for the incentives program are defined
California solar initiative (Csi) – In 2006, the State as any commercial, industrial and agricultural
of 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 of
California Solar Initiative (CSI), the California Public size or project scope. The equipment must exceed
Utilities Commission (CPUC) is providing $2.1 billion government standards, must operate at least five
over 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 cookers
offered by the utility. Pre-inspections are required for and combination ovens for food service, pipe and
all projects. Applicants are eligible to receive up to tank insulation, high-bay lighting fixtures, compact
50% of the cost for each project for calculated (SPC) and linear fluorescent fixtures and anti-sweat heater
measures, not to exceed $350,000 per project site. controls. Equipment must meet the requirements
Measures involving cogeneration or fuel-switching as stated in the terms and conditions on the rebate
projects are not eligible. (NOTE: SDGE offered higher forms. All equipment must be new. Used or rebuilt
incentives for select energy efficiency improvements equipment is not eligible for rebate. (NOTE: The
in 2009 and may do so in 201065.) 2009-2011 Energy Efficiency Programs have not
yet been approved by the California Public Utilities
energy efficiency Business Rebates program Commission (CPUC). In order to maintain program
(formerly the express efficiency program) – This availability, the CPUC has issued a bridge funding
program is a nonresidential rebate program designed decision that authorizes SDG&E to continue the
to help customers add or retrofit existing equipment programs following the same guidelines. Customers
with 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 cash
Customers may qualify for rebates up to $350,000 per incentives by installing qualified new, high-efficiency
meter, per fuel, per year. Customers eligible for the equipment. You design your own energy-saving
rebates program are defined as any medium or large project and propose the incentive amount necessary
commercial, industrial or agricultural business that to implement the project. SDG&E’s Energy Savings Bid
has a valid electric or natural gas SDG&E® account Program provides financial rewards for nonresidential
with a monthly electric demand of 100 kW and higher customers who install qualifying new, high-efficiency
and/or an average monthly natural gas usage above equipment that generates 500,000 kilowatt-hours
4,166 therms. in energy savings per year. (NOTE: The deadline
for installation and operation of energy efficiency
Fuel switching and new construction do not projects under the Energy Savings Bid Program has
qualify. Over 140 measures qualify for the rebates been extended from December 31, 2009 to March 31,
201067.)
®
41

42. CHapteR
8
extra 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. BiBlioGRapHY
endnotes
1
Department of Energy, “School Operations and Maintenance: BEST PRACTICES FOR CONTROLLING ENERGY
COSTS” (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 warming
Solutions 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,” Green
Building 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,” DECISION
ADOPTING 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,” Bright
School Program, 10 Dec. 2009.
California Energy Commission, “Emergnig Renewable Program Rebates,” Consumer Energy Center, 2007, 4
10
Oct. 2010, <http://www.consumerenergycenter.org/erprebate/program.html>.
California Public Utilities Commission, “Other Solar Technologies,” California Solar Initiative, 26 Jun. 2009, 4
11
Oct. 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, 8
Jun. 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 - Renewable
Energy 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, 4
Oct. 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) pp
5-6.
REQUEST FOR PROPOSALS FOR COMMUNITY-BASED HABITAT RESTORATION PROJECTS IN OREGON AND
23
WASHINGTON, EcoTrust, 2007, pp 3-4.
24
School Operations and Maintenance: BEST PRACTICES FOR CONTROLLING ENERGY COSTS A Guidebook for
K-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
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