BUILDINGS

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BUILDINGS FACILITIES

• For GHG Stakeholders
• December 9, 2004

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BF FOCI

• Conserving fossil fuels
• Efficiency in new buildings

• Appliance standards
• Promoting on-site CHP (aka cogen.)

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1. CONSERVING FOSSIL FUELS

• Background factors
• Progress so far
• Policy options under review (to complement
  voluntary actions)
• Dedicated funding options
• Next steps

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BACKGROUND FACTORS

• GAS OIL dominate RI home heating, also
  important in nonresidential markets
• HIGHER gas and oil prices
• EFFICIENT and advanced gas AND oilheat
  technologies
• WEATHERIZATION opportunities remain
• GAS DSM in MA but not RI
• NORA now promotes oilheat RD, training, PR

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PROGRESSSO FAR

• Energy Office stepped up to plate with new
  programs
• Incentives for Energy Star oil/propane appliances
  (NECo budget, very limited)
• Small CI Program (piggybacks on NECo program,
  going up to 200 kW)
• ESCo/performance contracting program (4 ESCOs
  selected, workshop on PC held for target
  faciliites)
• New England Gas proposing to extend GasNet
  programs to RI details not finalized.
• PPL got biodiesel program grant

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OPTIONS UNDER REVIEW

• Federal grant (DOE state energy program -- renew?
  EPA small grant -- renew?)
• NORA grants -- discussion with OHIRI
• Increase gas DSM funding--requires PUC action or
  legislation
• Establish dedicated funding for oil gas
  EE--requires legislation

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DEDICATED FUNDING OPTIONS

• NECo collects on electricity sales, passes to
  State for programs
• Like RCS in past, renewables now
• Levy on usage or sales of oil or oil/gas
• All building sector usage (see draft legislation)
• Just residential (partial lift of residential
  heating fuel sales tax exemption)
• Carveout from commercial sales tax
• Just to supplement lower-income weatherization
  program (VT approach)

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ILLUSTRATIVE DRAFT LEGISLATION

• Surcharge on fossil fuel usage
• Dedicated fund for oil/gas energy efficiency and
  renewables (like biodiesel)
• Illustrative funding level
• Natural gas -- 0.009/therm
• Propane -- 0.008/gallon
• Fuel oil-distillate (heating oil) --
  0.012/gallon
• Fuel oil-residual -- 0.013/gallon

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NEXT STEPS

• Feedback from SAG to Buildings Facilities
  working group?

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2. NEWBUILDINGS

• State building code
• Energy environmental performance standards for
  new public schools
• Next steps?

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3. APPLIANCE STANDARDS

• NEEPs legislation
• Building code option
• Next steps?

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4. PROMOTING ON-SITE C.H.P.

• Focus on cogenerating electricity and thermal
  energy on-site
• CHP uses thermal energy from heat normally wasted
  in electricity generation
• Result energy and environmental benefits
• Also, potential reliability benefits
• Cost and maintenance issues must be
  addressed

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C.H.P. UTILITY RATES

• Electric utility backup/standby power rates
• Recent settlement
• Gas utility promotional rates for gas
• Must apply for off-tariff rate, with
  justification justification

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KINDS OFINCENTIVES

• Education capacity building
• Technical assistance re scoping studies
• Project financing
• Project incentives
• Tax credits

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EXAMPLE PROGRAMS

• MA gas utilities technical assistance --eg Bay
  State Gas, 50 of cost for engineer for scoping
  study, up to 7500 (plus existing DSM incentives
  only)
• NJ Office of Clean Energy CHP incentives
• CHP system gt60 efficient
• Add-on generation capability -- 0.50/W, up to
  30 of project cost
• New microturbine/ICE/gas turbine based -- 1/W,
  up to 30 of project cost
• Fuel cell based -- 2.50/W, up to 40 of cost

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NEXT STEPS

• Feedback from SAG to Buildings Facilities
  working group?