The document outlines updates to California's energy policies and programs, including requirements for utilities to compensate customers for net surplus generation, funding shortfalls in the non-residential solar initiative, allowing additional collection for the 10-year solar program, and increased incentive amounts for high-performance schools. It also provides an overview of strategic energy planning concepts like benchmarking historical energy costs, assessing public policy implications, and setting short, medium, and long-term goals.
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
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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.
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