Energy Efficiency Best Practices and Lessons Learned

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Energy Efficiency Best Practices and Lessons
Learned

• Presented by Scott Albert
• GDS Associates, Inc.
• July 11, 2008

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Overview

• General Results of Energy Efficiency Best
  Practices studies
• Top ranking energy efficiency programs
• The value of demonstration or glamorous
  projects
• Case study in value- Taking an SUV off the road
  and putting in a Hybrid

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Energy Efficiency Best Practices,Results of
Studies

• State and local governments are playing
  increasingly important roles in Energy Efficiency
  Programs
• States now spend three times as much as the
  federal government on energy efficiency programs
• However, according to the American Council for an
  Energy Efficient Economy (ACEEE) 2006 State
  Scorecard, Virginia energy efficiency policies
  ranked 38th out of 50 states and Washington D.C.
  
• There is considerable room for local governments
  to encourage and implement efficiency programs

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Study Results, continued

• Energy costs can account for as much as 10 of a
  governments annual operating budget
• Taking leadership in implementing energy
  efficiency not only decreases operating and
  maintenance costs, but also encourages economic
  development
• ACEEEs 2006 rankings gave Virginia State
  government a score of 0 out of a possible of 3
  for Leadership by Example

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Common Barriers to Implementation according to
ACEEE

• Limited knowledge of the existence of measures or
  experiences in other states implementing programs
  and measures
• Insufficient funding or lack of innovative
  financing mechanisms to fund programs
• Limited support and staff availability to manage
  and implement efficiency programs

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Assessing the Strength of Energy Efficiency
Programs

• Spending on Utility and Public Benefits Energy
  Efficiency Programs
• Energy Efficiency Resource Standards
• Combined Heat and Power
• Building Energy Codes
• Transportation Policies
• Appliance and Equipment Efficiency Standards
• Tax Incentives
• State Lead by Example and Research and Development

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Top Ranking Energy Efficiency Programs New York

• Green and Clean State Buildings and Vehicles
  program sets targets for reducing energy
  consumption in new and existing state buildings,
  and requires the purchase of Energy Star products
  when possible.
• New state agency buildings must be at least 20
  more efficient than the state code, and 20 of
  their annual electrical needs must be met with
  renewable resources by 2010.
• Many of the largest state agencies and
  authorities are already close to meeting their
  2010/2011 targets of a 35 energy reduction

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Top Ranking Energy Efficiency Programs California

• State agencies must reduce their energy
  consumption by 20 from 2003 levels by 2015
  through distributed generation and energy
  efficiency measures
• All new and renovated state facilities must meet
  LEED Silver requirements, and all leased office
  spaces must be Energy Star rated

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Top Ranking Energy Efficiency Programs New
Hampshire

• State agencies must reduce energy use by 10
• State facility construction and renovation must
  exceed state energy code by 20 and purchased
  equipment must have an Energy Star rating
• All state vehicles must have a minimum fuel
  economy of 27.5 MPG, vs. the national average of
  24.6 MPG.

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The Value of Demonstration or Glamorous Projects

• Actual realized cost savings and societal
  environmental benefits from the project
• Show that it is in fact possible and
  cost-effective to consider energy efficiency
  while on a strict budget
• Bring publicity to cost savings and environmental
  benefits of energy efficiency
• Encourage the public to hold themselves to
  similar standards

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Example Bronx Library, New York, N.Y.

• New York Citys first municipal building to
  achieve LEED certification, certified LEED Silver
  in July, 2007.
• The facility serves more than 15 million visitors
  and 21 million online visitors every year.
• Energy Efficiency measures from lighting to
  heating and cooling reduce energy costs by 20
• 90 of construction and demolition waste was
  recycled instead of going to a landfill
• 80 of the wood used in the library was certified
  to Forest Stewardship Council standards.

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Example California EPA Headquarters,
Sacramento, CA

• The very first certified LEED Platinum building
• The 950,000 sq. ft. office high rise is 34 more
  efficient than code requires
• The 500,000 invested in energy efficiency
  improvements yield savings of 610,000 per year,
  paying for itself and yielding huge returns even
  within the first year
• Energy efficiency improvements include high
  efficiency HVAC, photovoltaic roof panels, and
  heat exchangers to reduce cycling of the chilling
  equipment

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Taking an SUV off the Road and Putting in a
Hybrid Whats the Value?
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Cost and Emissions savings case study 15 MPG SUV
vs. 50 MPG HYBRID

• As gas reaches over 4 per gallon, and Hybrid
  Electric Vehicles have become more affordable,
  there are many compelling reasons to switch to a
  hybrid.
• Annual Savings Assume average driver goes 10,000
  miles per year
• Yearly gas usage with an SUV
• 10,000 miles / (15 miles/gallon)667 gallons
• Yearly gas usage with a Hybrid
• 10,000 miles / (50 miles/gallon)200 gallons
• 467 gallons saved 1,867 dollars in savings per
  year!
• Emissions reductions
• 467 gallons x 19.4 pounds CO2 per gallon of
  gasoline
• 9060 lbs. of CO2 reduction per year!

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Results of National Energy Efficiency Best
Practices Study

• This study was completed in December 2004, and
  collected information on energy efficiency
  program best practices for programs implemented
  across the US.
• The complete study is available at
  www.eebestpractices.com

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National Energy Efficiency Best Practices Study -
Design (1)

• Articulate a program theory that clearly states
  the target for the program, program timing and
  the strategic approach whether resource
  acquisition, market transformation or equity
• Link strategic approach to policy objectives and
  constraints
• Assess the best opportunities for cost effective
  energy savings

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National Energy Efficiency Best Practices Study -
Participation (2)

• Use a simplified process for vendors to
  participate
• Optimize data collection requirements
• Make customer eligibility easy for contractors to
  determine
• Use electronic processing of applications
• Use high incentive levels, as appropriate, in
  segments and for program designs that require
  high penetration rates to be cost-effective
• Reduce or eliminate incentives for measures
  already having high penetration rates
• Set base rebate levels appropriately throughout
  the program year instead of over-relying on
  short-term promotions
• Offer zero-percent or low-cost financing to
  offset high cost of capital for small businesses

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National Energy Efficiency Best Practices Study
-Marketing (3)

• Leverage utility credibility to help vendors sell
  the program
• Use door-to-door marketing by a turnkey vendor to
  achieve a high penetration rate, especially among
  small commercial customers
• For prescriptive programs, combine a moderate
  mass marketing effort with a process of strongly
  motivating and leveraging contractor marketing
  for prescriptive programs
• Leverage partnerships with cities and
  community-based organizations

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National Energy Efficiency Best Practices Study -
Evaluation (4)

• Perform annual evaluations for high-priority
  issues that are relevant and unique to each
  individual program year
• Conduct inspections to ensure equipment is
  installed and operating
• Ensure that program tracking databases are
  correctly calculating program energy savings
  impacts annually
• Perform detailed impact and process evaluations
  routinely
• Evaluate operating hours for high efficiency
  equipment
• Perform market assessments routinely, though not
  necessarily annually
• Involve program staff in the evaluation process
  and create a culture whereby evaluation findings
  are valued and integrated into program management
• Present actionable findings to program staff at
  the conclusion of study

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Summary

• In the past, Virginia has not been a leader with
  utility sponsored energy efficiency programs
• There are many market barriers that prevent
  adoption of energy efficiency measures
• Best practices studies are available that show
  how to design, implement and evaluate cost
  effective energy efficiency programs
• The 2007 Virginia Energy Plan lays a foundation
  for increased reliance on energy efficiency
  programs
• Virginia is poised to become a leader in the
  energy efficiency industry!