existing buildings partner orientation for... · 2015-05-29 · what is the pay for performance...

Existing Buildings Partner Orientation

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Agenda

• Program Introduction & Overview• Energy Reduction Plan Development• Lunch (12:00)• Post-Retrofit Activities • Building Simulation• Combined Heat and Power / Fuel Cells• Q&A Session

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Program Introduction

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Players

New Jersey Board of Public Utilities (BPU)

Office of Clean Energy (OCE)Overall Program Management

TRCProgram design, management and reporting

Partners Energy efficiency market players

ParticipantsOwners, developers, managers

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Who is NJ BPU?

New Jersey Board of Public Utilities

• In 2003, the New Jersey Board of Public Utilities established the Office of Clean Energy (OCE) - Oversight and delivery of energy efficiency programs

• New Jersey's Clean Energy Program (NJ CEP)- Combination of renewable, residential and C&I incentive based

programs to deliver energy reductions in attainment of NJ Energy Master Plan

- Funded through Societal Benefits Charge

Who is TRC?

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• Commercial & Industrial Market Manager for the NJ Office of Clean Energy– Marketing of programs– Intake and qualification of applications– Incentive determination (prescriptive/custom) and payment– Field verifications/inspections– Engineering reviews– Customer support (engineering level project support)– Contractor/partner management

NJ Clean Energy C&I Programs

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• Benchmarking (no-cost) • SmartStart (prescriptive & custom) both retrofit and new

const.• Local Government Energy Audit Program (LGEA)• Direct Install (DI)• Large Energy Users Program (LEUP)• Pay for Performance (P4P)

– Existing Buildings– New Construction

• Combined Heat and Power & Fuel Cells (CHP/FC)• Federal SEP funds (non-IOU)

NJ Clean Energy C&I Programs

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• Programs budgets are established for 12 months beginning July 1st through June 30th

– Fiscal year 2015 runs from July 1, 2014- June 30, 2015

• Final program filings (details) can be found here: http://www.njcleanenergy.com/filings

What is the Pay for Performance Program?

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• Comprehensively addresses energy efficiency needs of the Commercial and Industrial (C&I) sector

• Provides incentives based on a whole-building approachto energy savings

• Leverages existing market players (engineering firms, architects, contractors, etc.) for program delivery

• Ties together traditional one-off measures with other energy saving opportunities

• Raises the bar, the more you save the more we pay

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Partners, Customers and TRC

• Program Participants must work with Partner• Partners can bring Participants into the Program • NJCEP website provides Partner List to interested

Participants• Partners will:

- Continue to develop and strengthen market-based relationships- Act as the building owner’s energy professional- Promote the Program- Grow their business

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Goals

• Generate deep, verifiable energy savings• Promote a whole building approach & ENERGY STAR®

Label• Reduce system peak demand• Address all energy saving measures within a building • Ease of participation, make the Program process painless• Develop and reward whole building work scopes• Pay for Performance!

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How the Program WorksStep-by-Step Overview for Partners

Program Guidelines Section 2

Overview

Submittal and Approval of P4P Application

Development of ERP by Partner

Review & Approval of ERP

by TRC

Implementation of All

Recommended Measures

Post Construction Verification of

Savings

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Step 1 - Establish Eligibility

• Existing commercial, industrial, or certain multifamily building

• Located in New Jersey• Pays Societal Benefits Charge

– Customer of one of the 7 investor-owned electric and/or gas utilities

• Annual peak demand of 100kW or greater*• Meets scope of work requirements

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* 100kW requirement does not apply to the following customer classes:– Hospitals– Non-profits 501(c)(3)– Public Universities/Colleges– Local Governmental entities (including K-12)– Affordable-rate multifamily housing (“affordable” is defined as

low income, subsidized, HUD, etc.)

• Direct-metered multifamily may assume no more than 2kW per tenant

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• Comprehensive work scope– Must identify 15%* annual source energy savings

– 15% may not come from a single measure

– At least 50% of energy savings from electricity, natural gas (if other non-IOU fuels present)

– No more than 50% of energy savings from lighting measures

– Minimum 10% IRR

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*High Energy Intensity User: Manufacturing and/or processing loads equal to or greater than 50% of the total metered energy use.

– manufacturing, pharmaceutical, chemical, refinery, packaging, food/beverage, data center, transportation, mining/mineral, paper/pulp, biotechnology, water treatment etc.

• May apply for exception to 15% savings, instead project must deliver minimum of:– 100,000 kWh– 350 MMBTU or – 4% of total facility consumption, whichever is greater.

• Exceptions must be pre-approved by Market Manager prior to ERP submittal (during application submittal).

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Define the Project: • Single, detached commercial and/or industrial building with its own

utility accounts. • Multiple buildings may be treated as a single project. ALL the

following conditions must apply:– There are two or more buildings that are located on adjacent properties.– Buildings are owned by a single entity.– AND one of the following:

• Buildings are master-metered• Buildings are served by a common heating and/or cooling plant.• Buildings share walls and/or are connected via a physical structure.

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Multifamily: • Must be 4 stories or more • OR less than 4 stories with central meter(s) serving more

than 1 building• Multifamily garden-style complex must be treated as a

single project.

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See Program Guidelines, Section 2 for more information and guidance on eligibility

Step 2 – Submit Application

• Submit Completed P4P Application to TRC– Signed application– Participant’s W9– 12 months of most recent utility bills– Brief description of facility/project

• Assigned to TRC Case Manager

• GET APPROVED! (~2 weeks)

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P4P Application and Participation Agreement

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Who is the Case Manager?

Point of contact once the Application has been approved

Submit to Case Manager:• All project-related questions• All project-related documents

– Energy Reduction Plan – Incentive Requests– etc….

Step 3 – Develop ERP

• Develop Energy Reduction Plan– Templates/tools provided– 15% energy reduction target

• Submit ERP to Case Manager for review, pre-inspection, and approval– Within 6 months of Application approval

• Request Incentive #1

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ERP Review Schedule

• ERP Rev0 averages 3 weeks in review.

• Subsequent Revisions average 1-2 weeks.• ERPs with Incentives ≤$500,000 are approved by TRC

and potentially AEG (QC consultant) ---adds 2weeks.

• ERPs with Incentives >$500,000 are approved by TRC, AEG, and BPU. (BPU meets monthly to review projects)---adds 4+ weeks depending on BPU schedule.

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Incentive #1 – Energy Reduction Plan

Incentive Amount $0.10 Per square foot

Minimum Incentive $5,000

Maximum Incentive $50,000 Or 50% of facility annual energy cost

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Incentive #1 – Energy Reduction Plan

• Requested upon completion and approval of ERP by Case Manager

• Payment contingent upon implementation of work scope – Installation Agreement

• Reduced by 50% for Participants who have received incentives from LGEA Program

Step 4 – Installation

• Installation should not begin until ERP is approved and incentives committed. – Exception: Once pre-inspection is completed can begin work at

your own risk.

• Install all recommended measures in the approved ERP– Within 12 months of ERP approval; Extensions may be available.

• All measures inspected and approved by Partner • Project review and post-inspection upon submission of

Installation Report and approval by Case Manager


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Incentive #2 – Measure Installation

Minimum Performance Target of 15%

Electric Incentives

Based on 15% savings $0.09

per projected kWh savingsFor each % over 15% add $0.005

Maximum Incentive $0.11

GasIncentives


per projected Therm savingsFor each % over 15% add $0.05


Incentive #2 – Measure Installation

• May not exceed 25% of total project cost

• Incentives paid for gas and electric savings only (investor-owned utilities)

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Step 5 – Post Construction Benchmarking

• Complete Post-Construction Benchmarking Report– One-year post installation utility bills

– Extension available if 15% savings not met

• Receive approval of Benchmarking Report by Case Manager


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Incentive #3 – Post Construction Benchmarking

Minimum Performance Target of 15%

Electric Incentives


per actual kWh savingsFor each % over 15% add $0.005


GasIncentives


per actual Therm savingsFor each % over 15% add $0.05


• May not exceed 25% of total project cost• Requested upon approval of Post-Construction

Benchmarking Report• Incentive adjusted based on actual savings (true-up)

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Incentive #3 –Post Construction Benchmarking

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P4P Incentives

Incentive Caps

Incentives will be capped at the lesser of:• 50% of total project cost (combined Incentives #2 and #3)

– Lesser of estimated cost (ERP) or actual cost (Installation Report)

• $1 million per electric and gas account – Not to exceed $2 million per project

• $4 million per Entity in any one fiscal year – $5 million cap with CHP

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Sample Incentive Calculation

Project Data• Size: 300,000 sqft. • Project Cost: $500,000• Estimated Savings: 19%• Actual Savings: 19%

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Incentive #1300,000 sqft. x $0.10 = $30,000Incentive minimum = $5,000Incentive maximum = $50,000 or 50% of facility annual

energy cost

Committed Incentive = $30,000

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Incentive #219% Projected Energy Reduction (from ERP)

400,000 kWh x $0.11 = $44,000 [$0.09 + (4 x $0.005) = $0.11]50,000 Therm x $1.10 = $55,000 [$0.90 + (4 x $0.05) = $1.10]

$99,000

Maximum Incentive = $500,000 x 25% = $125,000 Committed Incentive = $99,000

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Incentive #3 19% Actual Energy Reduction (As-Built)

400,000 kWh x $0.11 = $44,000 [$0.09 + (4 x $0.005) = $0.11]50,000 Therm x $1.10 = $55,000 [$0.90 + (4 x $0.05) = $1.10]

$99,000

Maximum Incentive = $500,000 x 25% = $125,000 Committed Incentive = $99,000

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Total IncentivesIncentive #1 = $30,000Incentive #2 = $99,000Incentive #3 = $99,000

$228,000

46% of Project Cost is paid for by incentives

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• Not all details covered in orientation, review Program Guidelines v4.0

• Guidelines are manual for “all things P4P”:– General Requirements & Eligibility – Document Submission & Incentive Request Process– Energy Reduction Plan Development– Metering & Simulation Guidelines– Installation Guidelines– Post-Construction Benchmarking Guidelines– Supporting References

Program Guidelines

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• ERP Excel Tables – primary submittal document– Model Calibration Tool – calibrate energy model– Portfolio Manager – create energy baseline benchmark

• ERP Word Template – document for final report

• Installation Report – summarizes installation of measures

• Savings Verification Tool – quantifies actual savings

Tools and Templates

Questions

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Energy Reduction Plan OverviewProgram Guidelines - Section 3

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Energy Reduction Plan

• “Roadmap” for comprehensive energy improvements.

• ERP contains information on: – Baseline Energy Consumption & Existing Equipment– Recommended Measure & Savings Projections– Building Simulation & Metering– Financing Plan– Implementation Schedule– EPA’s Portfolio Manager benchmarking – Estimated Incentives

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Energy Reduction Plan

• Submitted at onset of project (6 mo. after application approval)

• Comprehensive work scope– Must identify 15% annual source energy savings

– 15% may not come from a single measure

– At least 50% of energy savings from electricity, natural gas (if other non-IOU fuels present), or min 100,000 kWh or 2,000 therms

– No more than 50% of energy savings from lighting measures

– Minimum 10% IRR

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Objectives

• Create consistency among projects and Partners

• Building assessment conducted/supervised by CEM or equivalent

• Follow industry standards (AEE, ASHRAE, EPA ENERGY STAR Buildings Program)

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ERP Development

Several elements required to complete ERP: • ERP Excel Tables – Primary submittal document• ERP Word Template –Final report • Model Calibration Tool – Calibrate energy model• Portfolio Manager – Create baseline energy benchmark• Modeling Software – Not provided

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Steps to Develop ERP

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Steps to Develop ERP

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ERP – Final Comments

• ERP templates and tools must be used in all projects• ERP must match the model and site conditions• Recommend internal review of ERPs before they are

submitted

Questions

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Energy Auditing RequirementsProgram Guidelines - Section 3

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Facility Audit

• Utility Bill Collection • Benchmarking• Existing Conditions• Pre-metering• Measure Evaluation

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Utility Bill Collection

• Must be collected for ALL accounts/meters and fuels at facility for baseline period. Sub-metered data may also be collected for model calibration.

• Cover 12 consecutive months of data • No older than 2 years from ERP submittal• Actual utility invoices or utility summaries.

Internal utility tracking software not acceptable.

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Direct Metered Multifamily

• Collect minimum 10% representative sampling of tenant utility data. Extrapolate and add to commercial utility data.

• Alternative methods described in Program Guidelines. May require prior approval from Market Manager– Example: Calculating usage based on previous similar

sites normalized for square footage

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BenchmarkingEPA Portfolio Manager

www.energystar.gov/benchmark

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What is EPA Portfolio Manager?

• Online property management and energy assessment tool

• Created by the US EPA under the ENERGY STAR Buildings Program

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What is EPA Portfolio Manager?

• Enables you to:– Track energy consumption– Rate individual facility energy performance– Analyze efficiency of building improvements– Prioritize investments– Receive EPA recognition for superior energy

performance

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Using EPA Portfolio Manager

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EPA Portfolio Manager in P4P

• Required in P4P• Secondary reference for energy savings• Potential for ENERGY STAR Certification• PM’s reports included in ERP (Appendix A)

– Statement of Energy Performance (SEP) – ENERGY STAR Data Verification Checklist – Score Card (if applicable; not all building types

receive scores)

Sharing Portfolio Manager

• If you have shared with TRC before, then our name should already be on your contacts as “Solutions, TRC”.

• If sharing with TRC for the first time, you will need to add us as a contact first by searching for username “TRCSOLUTIONS”.

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Existing Conditions

• Lighting Survey• Mechanical Survey• Building envelope• Plug and misc. loads• Occupants and schedules

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Existing Conditions

• Operator/Occupant interviews– Operating problems– Special conditions– Deviation from intended operation of equipment– Preventative Maintenance practices– Current energy efficiency practices

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Existing Conditions

• Baseline Facility Variables– Occupancy– Hours of operation – Production volumes– Types of tenants– Etc.

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• Required - Option D, Calibrated Simulation, as defined by the IPMVP

• Option A & B used to help develop an energy baseline for the building simulation when:1. Equipment cannot be directly modeled in the simulation software,

especially if it will be replaced or affected by scope of work (e.g. process equipment, water fixtures, appliances, etc.)

2. Modeling inputs that are out of the ordinary or unusual (e.g. very high or very low indoor air temperatures)

3. Has unknown or variable loads (meter end-uses for which the least amount of data is available)

Pre-Installation Metering

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• ERP must detail:– Description of metering method and schedule– How data was used to support savings calculations and/or model

inputs– Description of any variables/assumptions that may differ between

pre and post retrofit periods – Description of metering method and schedule for post retrofit

period, if applicable

• Simulation inputs not directly metered must use appropriate conservative assumptions

Pre-Installation Metering

Additional information to be presented in building modeling section

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Examples of measures that may be evaluated:• Lighting: Retrofit or new fixtures, occupancy sensors, daylighting• HVAC and DHW Measures: High efficiency boilers, chillers, and

water heaters, solar water heaters, motors and pumps, insulate hot surfaces, controls, EMS/BMS

• Envelope: Air sealing, improved insulation, windows, doors, cool roofs

• Refrigeration: Mechanical subcoolers, Evaporator controls • Other: Plug loads, transformers, energy efficient appliances and

office equipment, low-flow water fixtures

Measure Evaluation

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Non-Eligible Measure

• On-site renewable energy generating equipment (e.g. PV panels, wind turbines, etc.)

• CHP or fuel cells • Retro-commissioning

– Improvements uncovered due to RCx may be eligible, but the process of RCx itself is not

• Sub-metering• Monitoring equipment• Power factor correction equipment• Permafrost/refrigerant additives• Non-permanent measure (e.g. removal of misc. plug loads)• Emerging technologies without third-party verification • O&M measures unless granted prior approval by

Market Manager

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Minimum Performance Standards

• Measures must meet or exceed:– Minimum Performance Standards

(Program Guidelines, Appendix A)

– ASHRAE 90.1 2007 prescriptive requirements, or – Local code, whichever is more stringent

• Must comply with Measure Lifetimes per NJCEPProtocols (Program Guidelines, Appendix B)

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Examples of Minimum Performance Standards

• The minimum water-cooled chiller efficiency level is 0.75 kW/ton. Air-cooled chillers must have an efficiency of at least 1.20 kW/ton

• Gas boilers must have 85% or greater AFUE

• CFL fixtures must be new and ENERGY STAR qualified. LED fixtures must DLC qualified

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Individual measures aggregated into a proposed work scope will often interact with each other and impact energy savings.

Measure Interactivity

Savings attributable to a package are usually less than the sum of the savings of each measure alone

Interactive effects will be taken into account in the building simulation+

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• ENERGY STAR Quantity Quotes service • Previous contacts to help itemize local prices of labor

and materials• Contractors and vendors • R.S. Means handbook or other industry standard cost

guide. • Bulk pricing initiatives

Cost Estimation Resources

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• Include associated demolition, construction, finishing work and other “hidden costs.”

• Unless in-house labor is proposed, assume all installations will be performed by an outside contractor

• Design, analysis and construction management costs must be included in the cost of associated measures.

• Construction Management and Partner Fees to be included in the overall project cost.

Cost Estimation

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Partner must ensure that all performance assumptions made in the simulation and

reflected in the ERP are translated into bid and construction documents

Questions

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Financing PlanProgram Guidelines - Section 3.5

Financing Plan Objective

• Clearly present how project is to be funded– Estimated total construction cost including cost of proposed

measures– Partner Fees

– Pay for Performance Program Incentives

• Verify that incentives do not exceed caps• Verify project is not “double-dipping” (measures cannot

be funded through multiple SBC programs)

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Implementation PlanProgram Guidelines - Section 3.6

Implementation Plan Objective

• Clearly present energy efficiency work scope timeline– Timeline for approvals– Bid document preparation – Installation schedule

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Implementation Plan

• Implementation of measures should not begin until ERP is approved and funding is committed.

An ERP must be approved by the program and an approval letter sent to the customer in order for incentives #2 and #3 to be committed. Upon receipt of an ERP, all project facilities must be pre‐inspected. Measures installed prior to pre‐inspection of the

facility shall not be included as part of the ERP scope of work and will not be eligible for incentives. Measure installation undertaken prior to ERP approval, but after pre inspection, is done at the customer’s own risk. In the event that an ERP is rejected by

the program, the customer will not receive any incentives.

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Everything discussed up to this point pertains to

ERP development

Lunch

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Post-Installation ActivitiesProgram Guidelines – Section 5

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Partner Responsibilities

• Verify all measures installed as per the approved ERP

• Verify measures operating as planned/modeled

• Submit Incentive #2 Request, including completed Installation Report and supporting invoices

• Continue to monitor measures and utility bills during post-retrofit period

• Post Inspection will be conducted by TRC at this time.

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Installation Report

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Installation Report

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Changes to Scope of Work

• Required action depends on magnitude and timing of changes – Does change affect overall savings by more than 10%?

– Is measure being completely removed or added?

– Is new measure already installed?

– Does new scope of work still meet savings thresholds?

Reference Section 5 of Program Guidelines for details

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Post-Construction Benchmarking ReportProgram Guidelines - Section 6

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Post-Construction Benchmarking

• Collect 12 months of retrofit utility bills

• Use Savings Verification Tool to calculate actual monthly energy savings

• Submit to Case Manager: – Savings Verification Tool– Portfolio Manager Post-retrofit Benchmark– Post-retrofit Utility Bills (including Utility Tool)– Request for Incentive #3

• Savings Verification Tool normalizes for weather– Assumes all other variables remain constant – Must obtain permission from Market Manager to

adjust baseline (baseline facility variables)

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Questions

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Building Modeling

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Program Guidelines - Section 4

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Calibrated Simulation

A Building Energy Model, Calibrated to Utility Bills, is used to Determine Interactive Energy Savings

for Proposed P4P Work Scopes

Get to Know the Simulation Section of the Guidelines

1. Gather Utility Data2. Gather Baseline Data from Site Visit/Drawings3. Create Baseline Model4. Calibrate Baseline Model to Utility Bills5. Include Baseline Assumptions in ERP6. Enter Measures into Model7. Include Measure Results & Assumptions in ERP

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Simulation Overview

Approved Simulation Tools

• Compliant with ASHRAE 90.1 Section 11 or Appendix G

• Approval for use in LEED and Commercial Building Tax Deduction Program may serve as proxy to demonstrate compliance

• Examples of allowed tools: – eQUEST, Trane Trace, HAP, EnergyPlus, DOE 2.1E

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Approved Simulation Tools

• eQUEST Wizard mode not permitted• TRACE 700 must use Full Year (8760) analysis• TREAT may only be used with prior approval by

Market Manager• Refrigeration facilities must use appropriate

software (e.g. eQUEST Refrigeration, TRACE’s refrigeration capabilities, etc.)

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External Calculations

• If simulation tool cannot model measure savings, external calculations may be used such as custom spreadsheets– resulting savings may then be subtracted from the usage

projected by model– spreadsheets may also be used to support simulation inputs.

• Spreadsheet calculations alone will not be accepted• Vendor-supplied and proprietary tools that were not /

cannot be peer-reviewed cannot be used as external calculations to estimate savings

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RETScreen good option for external calculations

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• Gather building data including:– Architectural/mechanical drawings– Dimensions, construction type – Condition of building envelope and equipment– Name plate data for HVAC and other equipment – Operating schedules– Measurement/metering to support model inputs

Step 1 – Baseline Data Collection

Key Operating Conditions/Variables

• Affect Energy Use/Demand– Computer Stations in Office Building– Guests in a Hotel– Volume of Items Produced in Manufacturing Facility– Meals Served in Restaurant

• Must be Documented for Baseline and Post-Retrofit Period

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Useful Resources

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IPM&V CHAPTER 3: Principles of M&V

• Accurate M&V reports should be as accurate as the M&V budget will allow. M&V costs should normally be small relative to the monetary value of the savings being evaluated. M&V expenditures should also be consistent with the financial implications of over- or under-reporting of a project’s performance. Accuracy tradeoffs should be accompanied by increased conservativeness in any estimates and judgments.

• Complete The reporting of energy savings should consider all effects of a project. M&V activities should use measurements to quantify the significant effects, while estimating all others.

• Conservative Where judgments are made about uncertain quantities, M&V procedures should be designed to under-estimate savings.

• Consistent The reporting of a project’s energy effectiveness should be consistent between different types of energy efficiency projects; different energy management professionals for any one project; different periods of time for the same project; and energy efficiency projects and new energy supply projects.

• Relevant The determination of savings should measure the performance parameters of concern, or least well known, while other less critical or predictable parameters may be estimated.

• Transparent All M&V activities should be clearly and fully disclosed.

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Step 2 – Create Baseline Model

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Simulation Requirements

• Baseline and measures must be created in same program, using same weather and rate structure

• Baseline Model Inputs = Existing Conditions – All end-use component connected to building

meter(s) must be modeled – Observed or measured on-site– Documented in the ERP

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Model must capture thermal zones, as per ASHRAE 90.1 Appendix G or Section 11 (Energy Cost Budget Method).

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Step 3 – Calibrate Baseline Model

Adjust baseline model to ensure that modeled consumption closely represents the actual utility bills.

– ALL energy uses (Electric, Gas, Oil, etc)– For ALL meters in building– Cover most recent 12 consecutive months (as a

general rule)

Utility Bill Example

Mixed use building with retail spaces on the first floor and apartments on floors 2-8. Electricity:Meter A: Master-meter for all loads on floors 2-8 (residential portion) Meters B1-B100: Sub-meters that measure consumption in each apartmentMeter C: Meter for common spaces on floors 2-8Meter D1-D5: Meters for individual commercial tenants on 1st floor

Natural Gas:Meter E: Gas used for space and service hot water boilers, entire buildingMeter F: Gas used for cooking and clothes driers on floors 2-8

1. Collect utility bills for Meters A, C, D, E and F 2. Calculate the actual pre-retrofit energy consumption as follows:

Actual kWh = Meter A + Meter C + Sum(Meter D1+D2+D3+D4+D5) Actual Therm = Meter E + Meter F

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Allowed Adjustments to Utility Bills

Irregular Deliveries

Original Data Adjusted Data

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Outliers

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Estimated Bills

Calibrate Baseline Model

• Enter Utility Bills into Calibration Tool• Enter Modeled Energy Use into Tool

– Compare Model Outputs to Utility Bills and Spot Measurements.

• If Model is not Calibrated:– Review/Refine Model Inputs– Review Utility Bills– Iterative Process

Do Not Move On Until Model Passes Calibration Tests

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P4P Model Calibration Tool: Input

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P4P Model Calibration Tool: Etracker Results

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P4P Model Calibration Tool - Results

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Calibration Accuracy

Mean Bias Error • Measures how close the annual energy use predicted by the

weather-normalized model corresponds to the actual pre-retrofit bills (<5%)

Coefficient of Variation• Measures variation in consumption during each bill period

between the model and actual billing data (15%-30%).

Uncertainty• Measures how well the regression model fits the utility bills

(50%).

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Calibration Techniques

1. Review usage profile of electricity bills • Peak during summer months associated with cooling• Lower consumption during spring/fall months• Peak during winter, may be associated with electric heat, longer

fan / pump runtime for heating, longer lighting runtime hours.

2. Is the usage profile consistent with the findings of energy audit?

3. Are there seasonal variations in usage?

4. Are there unexpected / unexplainable drops or peaks in monthly usage values?

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Calibration Techniques

5. Compare Usage Profile of Electricity Bills to Model Predictions6. Compare Usage During Spring/Fall Months when Heating/Cooling

Loads are Low• Adjust Lighting, Equipment, and Service Hot Water Heating

7. Compare Usage During Heating and Cooling Months• Adjust Model Inputs

8. Repeat For Fuel #2• Adjust Usage during Spring/Fall Months

• Calibrate Consumption during Heating/Cooling Season.9. Use Model Calibration Tool to Verify Acceptable Calibration

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Step 4 – Documentation in ERP

• Input & Output reports for Calibrated Baseline, including a breakdown of energy use by:

– Lights– Internal Equipment Loads– Service Water Heating Equipment– Space Heating Equipment– Space Cooling / Heat Rejection Equipment– Fans– Other HVAC Equipment (pumps, etc.)

• Output Reports showing amount of time any loads are not met (limit per Section G3.1.2.2 of ASHRAE 90.1-2007 Appendix G)

• Explanation of Error Messages from Simulation Outputs (if any)

See Section 4.2 of Guidelines

Reports submitted as separate files; one file for baseline and

one for each subsequent measure

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Step 5 –Simulating Measure-Level Savings


• Measure must be modeled incrementally (e.g. parametric runs, alternatives, etc.)

• EEM model inputs must be based on solid data (e.g. specs, site measurements) or conservative assumptions

• Only parameters associated with measures can vary between baseline and post-retrofit model

• Operating assumptions must not change unless affected by a measure, including:– Heating temperature set-points– Lighting runtime hours, etc.

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Measure-Level Savings

• Rank measures and add one at a time to baseline model• Order in which measures are added may be based on

– Cost-effectiveness – Proposed sequence of implementation

• Must use parametric runs (eQuests), Alternatives function (Trace), or equivalent.

• Derive incremental savings for each measure

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Measure-level Savings

Step 1 • Add the highest ranking measure (M1) to the Baseline • Calculate usage of Baseline with Measure #1

Step 2• M1 Savings = (Baseline) – (Baseline + M1)

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Measure-level Savings

Step 3• Add Measure #2 to (Baseline + M1) model to obtain the

(Baseline+M1+M2)

Step 4• M2 Savings =(Baseline+M1) – (Baseline+M1+M2)

Step 5• Repeat with remaining measures

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Measure Granularity

• Distinct energy efficiency measures should not be combined, for example:– Lighting fixture improvements– Lighting controls– Boiler improvements– Wall insulation – Air-sealing – Pipe insulation

• Defined by available measures in drop-down list of ERPExcel Tables

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Measure Specific Modeling Requirements

• Program Guidelines, Section 4.6.3 provides modeling requirements (must be followed) for common EEMs, including:

– Lighting fixtures– Lighting controls– Daylighting controls– Air-sealing measures– Envelope insulation – Window improvements – Boiler improvements– Piping insulation– Programmable thermostats

– Plug and Process Loads (transformers, computers/ monitors, vending machine controls)

– Low-flow fixtures– Fuel Conversions– Dual-fuel measures– Measure increase energy use

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Measure Specific Modeling Requirements

Example- Boiler Measures:• Exiting boiler efficiency may only be de-rated per formula:

EFF = Eff.original*(1-M)age• Condensing boilers’ return water temperature must be verified on

site. If unknown 180°F supply and 160°F return must be assumed.

Example- Lighting Occupancy Sensors:• Must be modeled by adjusting either installed lighting wattage or

fixture runtime hours by percent reduction provided in Guidelines (0-40% depending on device and building type).

See Section 4.6.3 of Guidelines for additional information

Step 6 – Document in ERP: Post-Retrofit Model

• List energy-related features included in design – Document all features and inputs that differ between baseline

and post-retrofit models

• Input/Output Reports

• Output Reports showing the amount of time any loads are not met

• Explanation of Error Messages (if any)

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See Section 4.2

Questions

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Combined Heat and Power& Fuel Cells

Overview

• Stand alone program• “Bonus” incentive for projects participating in Pay for

Performance• Systems 1 MW and less handled by TRC• Systems over 1 MW handled directly by BPU staff

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Incentives

Eligible Technology Size

(Installed Rated Capacity)

Incentive ($/Watt)(2)

P4P Bonus(3) ($/Watt)

(cap $250,000)

% of Total Cost Cap

per project

$ Cap per project

Combined Heat & Power Powered by non-renewable fuel source – Gas Internal Combustion Engine – Gas Combustion Turbine – Microturbine

≤500 kW $2.00

$0.25

30-40%(4) $2 million >500 kW – 1 MW $1.00

>1 MW – 3 MW(1) $0.55 30% $3 million

>3 MW(1) $0.35

Fuel Cells Powered by non-renewable fuel source. Incentives available for systems both with and without waste heat recovery.

≤1 MW w. waste heat $4.00 60% $2 million

≤1 MW $3.00

>1 MW w. waste heat $2.00 45% $3 million

>1 MW $1.50

Heat Recovery(5) Powered by non-renewable fuel source. Heat recovery or other mechanical recovery from existing equipment utilizing new electric generation equipment (e.g. steam turbine)

≤1 MW $1.00 30% $2 million

>1 MW $0.50 30% $3 million

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Footnotes(1) Incentives for CHP systems greater than 1 MW are tiered. For example, a 4 MW CHP system would

receive $0.55/watt for the first 3 MW and $0.35/watt for the last 1 MW. No other incentives are tiered.

(2) In the past, utilities have offered incentives towards CHP and Fuel Cell technologies ranging from $0 to $1,000,000. Although no utility incentives are currently available, should they become available at a later time NJCEP incentives will subsidize utility incentives to bring the combined incentive up to the $/Watt amount shown in the table above, up to the maximum caps listed, to ensure a consistent incentive is paid throughout New Jersey.

(3) Any facility successfully participating in Pay for Performance prior to applying for CHP or Fuel Cell incentives will be eligible for an additional $0.25 per Watt from NJCEP, not to exceed $250,000. This amount is in addition to the “$ cap per project” listed above. The “% of project cost” caps listed above will be maintained.

(4) The maximum incentive will be limited to 30% of total project. This cap will be increased to 40% where a cooling application is used or included with the CHP system (e.g. absorption chiller).

(5) Projects installing CHP, fuel cell, and heat recovery generation will be eligible for incentives shown above, not to exceed the lesser of % per project cap or $ per project cap of the CHP/FC.

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Procedure

• Complete and submit CHP/FC Application (Excel-based) per instructions– CHP/FC does not factor into 15% savings of P4P

• TRC and/or BPU reviews submittal and issues a CHP/FC Incentive commitment. – Pre-inspection completed

• Install and commission project within 18 months of CHP/FC approval– Post-inspection completed; invoices reviewed

• Measure performance over 12 month period

Purchase Installation Acceptance of 12

months post-installation data

30% 60% 10%

Equipment Requirements

Equipment Must Be:• Natural gas or hydrogen fueled (fuel cells), as well as mixed natural gas/biogas• New, commercially available, and permanently installed (incremental expansions of existing

systems also qualify)• Installed on the customer side of the meter• Electric only fuel cells must be sized for ≤100% historical consumption/peak demand• Meet minimum 65% LHV annual system efficiency (50% for electric only Fuel Cells)• Must operate minimum of 5,000 annual full load equivalent hours (3,500 for eligible critical

facilities)• 10 year all-inclusive warranty or service contract

The Following are Not Eligible:• Prior installations• Portable and emergency backup power systems• Used, refurbished, temporary, pilot, or demonstration equipment• Systems that use diesel fuel, other types of oil or coal for continuous operation.• 100% biogas---redirect to Renewable Energy Program

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See CHP /FC Application for more information on eligibility and technical requirements

Other Evaluation Criteria

• Environmental performance• Projected system startup date• Annual system utilization• Alignment with general program goals• Project clarity• Operation as an emergency management center or

critical facility

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Sample Calculation

600 kW Nat Gas Engine w/heat recovery and absorption cooling

• Total Installed Cost = $1,200,000• Requested Incentive - 600,000 x $1.00/Watt =

$600,000• Incentive Cap - $1,200,000 x .40 = $480,000• Final Incentive - $480,000

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Sample Calculation

4 MW Nat Gas Engine w/heat recovery for HH & DHW

• Total Installed Cost = $5,000,000• Requested Incentive

– First 3,000,000 x $0.55/Watt = $1,650,000– Second 1,000,000 x $0.35/Watt = $350,000

Final Incentive = $2,000,000• Incentive Cap - $5,000,000 x .30 = $1,500,000• Final Incentive - $1,500,000

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Questions

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Building Performance w/ ENERGY STAR

• National program

• NJ Clean Energy program a participant

• Benchmarking and Pay for Performance means to participate

• Additional publicity available for early participants

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See Section 7 of Program Guidelines

Partner Benefits

Expand your business– Qualified leads– Marketing support – Sales literature and Mass

Media– Listed at www.njcleanenergy.com/ssb– No Partner, no project, no incentive

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Next Steps

• Bring in Projects

• TRC holds a monthly Partner conference call– 4th Wednesday of every month

• 888-330-1716 • Access Code: 4502707

– Updates and changes to Program– Questions & Technical discussions– Feedback loop with our Partners– Ideas about improving the Program

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Additional Notes

• Designate one P4P Contact Person within your organization– Control all submissions– Participate in conference calls– Collect questions and inquiries for clarification

• Establish shared P4P folder to maintain most recent documents and templates

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Additional Notes

• Download most recent ERP documents from Partner Portal:

– http://www.njcleanenergy.com/p4p-portal-login– Current password: tRP47px

• Keep an eye out for emails from “P4P” – Email questions to [email protected]

• Join LinkedIn Group: search for “NJ Pay for Performance Partner Network”

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Additional Notes

• Dial-into Energy Efficiency Committee meetings:– Email [email protected] with “CEC Committee

Participation- Energy Efficiency Committee” in subject line and include your name, company or other affiliation, and address to get listserv updates.

– Minutes from monthly EE Committee meetings: http://www.njcleanenergy.com/main/event-listings/clean-energy-council-committees/energy-efficiency-committee-meeting/energy-effic

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Thank you!

Final Q&A

existing buildings partner orientation for... · 2015-05-29 · what is the pay for performance...

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