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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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
San Diego County Office Of Education ENERGY PLANNING GUIDE
San Diego County Office Of Education ENERGY PLANNING GUIDE
San Diego County Office Of Education ENERGY PLANNING GUIDE
San Diego County Office Of Education ENERGY PLANNING GUIDE
San Diego County Office Of Education ENERGY PLANNING GUIDE
San Diego County Office Of Education ENERGY PLANNING GUIDE
San Diego County Office Of Education ENERGY PLANNING GUIDE
San Diego County Office Of Education ENERGY PLANNING GUIDE
San Diego County Office Of Education ENERGY PLANNING GUIDE
San Diego County Office Of Education ENERGY PLANNING GUIDE
San Diego County Office Of Education ENERGY PLANNING GUIDE
San Diego County Office Of Education ENERGY PLANNING GUIDE
San Diego County Office Of Education ENERGY PLANNING GUIDE
San Diego County Office Of Education ENERGY PLANNING GUIDE
San Diego County Office Of Education ENERGY PLANNING GUIDE
San Diego County Office Of Education ENERGY PLANNING GUIDE
San Diego County Office Of Education ENERGY PLANNING GUIDE
San Diego County Office Of Education ENERGY PLANNING GUIDE
San Diego County Office Of Education ENERGY PLANNING GUIDE
San Diego County Office Of Education ENERGY PLANNING GUIDE
San Diego County Office Of Education ENERGY PLANNING GUIDE
San Diego County Office Of Education ENERGY PLANNING GUIDE
San Diego County Office Of Education ENERGY PLANNING GUIDE

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San Diego County Office Of Education ENERGY PLANNING GUIDE

  • 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