Saving Money Through Energy-Efficient Improvements

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SB1149 Qualified Auditor Workshop October 29,
2002
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Workshop Agenda

• Introduction of Office of Energy staff
• Overview of 1149
• Audits the good, the bad, and the ugly
• Q A
• SID Database

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SB 1149 History

• 1999 Legislative Session
• Effective date March 1, 2002
• Large users may purchase power on the open market
• Power purchasing options for customers
• Collection of 3 Public Purpose Fund

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Public Purpose Funds

• Energy Conservation and Energy Efficiency
  Improvements
• Renewable Resource Development

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Distribution of Public Purpose Funds

• Energy conservation - 56.7
• Renewable resource development- 17.1
• Low-income weatherization - 11.7
• Low- income housing - 4.5
• Schools - 10 (estimated 6 million/year for 10
  years)

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Industrial Customers

• Large users (over 1 average megawatt) can self
  direct conservation renewable funds
• If no conservation opportunities exist, can be
  credited with 54 of charge
• Administrative Rule for self direction
• http//www.energy.state.or.us/sb1149/Business/self
  -direct.htm
• RFQ for industrial auditors on OOE website

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Administrators

• Conservation Renewables
• Energy Trust of Oregon
• http//www.energytrust.org/
• Industrial self direction
• Oregon Office of Energy
• Low income / weatherization
• Housing Community Services Dept.
• http//www.hcs.state.or.us/
• Schools
• 17 Education Service Districts
• Oregon Office of Energy

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Education Service Districts

• Northwest ESD Clackamas ESD
• Multnomah ESD North Central ESD
• Lake ESD Wallowa (Region18)
• Willamette ESD Consortium
• Linn-Benton-Lincoln ESD Region 9
• Lane ESD
  Crook/Deschutes
• Douglas ESD Umatilla-Morrow
• South Coast ESD Yamhill
• Jackson ESD Jefferson

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Schools Program Overview
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Process to Develop Guidelines

• Education Service Districts School Districts
• Superintendents
• Business Managers
• Facilities Managers
• Organizations
• OAESD OASBO
• COSA OSFMA
• OOE OPUC

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SB1149 Requirements

• Eligible facilities - PGE PacifiCorp
• Funding based on ADMw
• All eligible school district facilities must be
  audited prior to implementation
• Audit within 3 years
• All audits must be fully implemented
• Funding for
• Energy efficiency improvements
• Energy education
• Purchasing green power and renewables

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Goals for Schools Program

• Wise use of funding
• Flexible program to meet varied needs
• Intelligent audits
• Quality, meaningful, directed
• Utilize existing audits
• Implementation of energy efficiency measures
• Leveraged funding
• BETC, SELP, utility incentives bond funds
• Performance contracting

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Participant Players and Roles
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Participant Players and Roles

• OOE
• ESDs
• School Districts
• Auditors
• Commissioning Agents

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OOE Role

• Program oversight for consistency statewide
• Verify eligibility of facilities annually
• Issuing RFPs
• Auditors
• Commissioning
• Update qualified auditor list
• Audit waiver approval
• Data collection and database management
• Training programs for ESD and SDs

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OOE Role

• Quality control of audits
• To compare data gathered from on-site survey to
  report assumptions, calculations, and
  recommendations
• Review audit report
• Check calculation methodology
• Check if non-energy issues are addressed or
  ignored (i.e., IAQ)
• Site visit
• QC review for each vendor at each audit level
  plus random reviews

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OOE Role

• General technical assistance
• Specific technical assistance on request
• Reporting
• Annual - PUC
• Biennial - legislature
• Quarterly - ESD and/or SD
• Coordinate with the Energy Trust of Oregon

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ESD Role

• Verify eligibility of facilities annually
• Receipt of public purpose funds
• Reimburse eligible SD costs
• Coordinate with Oregon Office of Energy
• Provide assistance (in some cases)
• Special cases - WESD, Beaverton SD

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Clarification of WESD and OOE roles

• WESD services
• Turnkey services
• Review of all audits (no on site reviews)
• Their needs/requirements may differ from OOE
• Any communications from WESD from an OOE employee
  should be regarded as WESD point-of-view
• OOE services to WESD
• Sub-contractor for audit reviews and general
  program development

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SB1149/ESD Coverage
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School District Role

• Verify eligibility of facilities annually
• Annual reporting of EUI data (into SID)
• Hire auditors
• Obtain additional financing BETC partners
• Prioritize EEMs
• Implement EEMs
• Report completed measures to SID

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Auditor Role

• Audits
• Specifications
• Project verification
• SD or ESD dependent
• (e.g., EUI data entry)
• Billing/invoice per school basis
• Marketing (optional)

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Commissioning Agent Role

• Design review
• Punchlist/functional testing
• Marketing (optional)
• RFP is currently on OOE website

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Audit Reports and Expectations
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Audit Format

• Audits must be stand alone
• Audits are NOT a design document
• If engineering is necessary, say so (and include
  cost in analysis)
• But, provide some basic information (e.g., new
  boiler should be X HP)

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Audit Format

• OOE Format _at_ www.energy.state.or.us
• Dont have to download to use
• All information in format is required
• Should be similar in nature and organization
• Minimum should include
• EEM Summary
• Individual EEM/OMs
• Clear calculations

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Calculations

• OOE must be able to follow
• All calculations must be presented
• State assumptions appropriately
• If using rules of thumb, state them
• Based on my experience is not an acceptable
  thumb rule

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Calculations

• Audit Level 1
• Nomographs
• Appropriate rules of thumb
• Simple spreadsheets
• Interactive effects exist between specific EEMs
• Audit Level 2
• Bin analysis
• Detailed spreadsheets
• More sophisticated calculations
• Should include interactive effects

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Calculations

• Audit Level 3
• Complex spreadsheets
• Must include hourly analysis
• Must include interactive effects

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Disclosure within report

• Engineering design is required before
  implementing this EEM
• May include some warning (e.g., water heater must
  be sized to satisfy athletic shower load)
• If noise levels will change (increase), say so in
  the report
• If energy use will increase, say so
• Point out indoor air quality issues

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Disclosure (cont)

• Identify any safety issues
• Include identification of known or potential PCB
  ballasts
• Life of existing equipment
• Justify your statements
• Need more than is beyond its useful life

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OM Savings

• OM savings are not real, unless
• School must SEE any claimed savings
• Contracted service that can be cancelled
• In house savings would require that school reduce
  staff as a result of the measure

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Hours of Operation

• Question hours provided by schools
• Hours often include more than school
• OOE Defaults
• Elementary - 2,000 hours
• Middle - 2,200 hours
• High School - 3,200 hours

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Lighting

• Use IES for guidance
• Recognize the school staff does not like underlit
  areas
• Lockers in halls need light
• Many areas are used by students for other than
  traditional purposes (hallways are study areas)
• OOE Recommends
• 50 footcandles for general classrooms
• Must measure fc for all audit levels

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Project Costs

• Requires justification
• Based on my experience is not an acceptable
  method of cost estimating
• Identify your source
• R.S. Means
• Estimating Software
• Recent similar project (but include a brief
  description of the similar project with dates)
• Contractor estimates

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Energy Efficiency Measures (EEMs)

• OOE has provided a list in SID
• We have tried to develop a complete list
• Cant anticipate everything
• If we missed a common EEM, notify OOE. We can
  add to the list
• If a single use item, add as Other in SID
• Include a list of rejected EEMs, if appropriate

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Rates

• Report should include the rate schedule that the
  school is using (or will use in the near future)
• Use the appropriate cost in calculations
• Not the average cost

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Things OOE will be watching

• Existing fc levels must be provided
• Lighting changes
• If you remove lamps/delamp, you must include
  appropriate information on
• Proposed lumen levels
• If you are changing technology
• Provide adequate documentation to explain the new
  technology

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Generic Red Flags

• Any EEM with odd paybacks
• Inappropriate EEMs (new boiler rather than stack
  damper)
• Inappropriate design temperatures
• Inappropriate weather data (see OOE website for
  weather data)
• Claiming savings based on manufacturers savings
  estimates
• Baseline adjustments
• Dangling EEMs

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OOE Attention List

• Existing lumen levels
• Boiler combustion efficiency test (mandatory for
  level II and III audits)
• Heating oil consumption (minimum 2 years)
• Hours of operation
• Condition/operation of outside air dampers
• Questionable assumptions
• Unjustified delamping

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Termination of Agreement to Agree

• Negligence
• Non-professionalism
• Not fixing audit errors
• Other reasons as they occur
• Non-responsive
• Repeating same errors

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Requiring further evaluation

• Acceptable statements of EEMs requiring further
  evaluation include
• In general EEMs that are beyond the scope of the
  level of audit being performed
• Level 1 audit which includes evaluation of
  chiller controls
• Complex control strategies
• Others as applicable

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Not requiring further evaluation

• EEMs requiring further evaluation should not
  include
• Lighting
• Timeclocks / simple DDC

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EEM Requirements

• Must reduce energy use
• Fuel switching can be done if total energy use is
  reduced (saves BTUs)
• Projects (set of EEMs at a school) must have ?
  10 year simple payback
• In audit report, list EEMs with gt10 year simple
  payback

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Engineering economics

• Simple payback is measure of success
• Life cycle cost not required, but can be
  beneficial
• Life of new equipment must be stated
• District cannot buy down projects

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Feedback from Schools

• Not enough OMs are identified
• Level I audit is not sufficient (not enough
  information)

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Feedback from OOE

• Red flags and disclosures are ignored
• E.g., savings based on my experience are not
  allowed
• Need existing fc levels
• Do not include costs of security system features
  in cost of DDC system
• Please enter audits into SID when finalized by
  SD or ESD

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Your Turn

• Questions
• Feedback
• Concerns

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OREGON OFFICE OF ENERGY 503-378-4040 or
1-800-221.8035 (in Oregon) www.energy.state.or.us
sb1149.sch_at_state.or.us