Existing Buildings Partner Orientation. Presenters. Kelly Bryan, NH P4P Pipeline Manager. Heather Healey, Senior Energy Engineer

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1 Existing Buildings Partner Orientation 1 Presenters Tom Rooney, Vice President Kelly Bryan, NH P4P Pipeline Manager Heather Healey, Senior Energy Engineer Maria Karpman, Technical and Modeling consultant 2 1

2 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 3 Program Introduction 4 2

3 Players New Jersey Board of Public Utilities (BPU) Office of Clean Energy (OCE) Overall Program Management TRC Program design, management and reporting Partners Energy efficiency market players Participants Owners, developers, managers 5 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 6 3

4 Who is TRC? 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 7 NJ Clean Energy C&I Programs 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) 8 4

5 NJ Clean Energy C&I Programs Programs budgets are established for 12 months beginning July 1 st through June 30 th Fiscal year 2014 runs from July 1, June 30, 2014 Final program filings (details) can be found here: 9 What is the Pay for Performance Program? Comprehensively addresses energy efficiency needs of the Commercial and Industrial (C&I) sector Provides incentives based on a whole-building approach to 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 10 5

6 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 11 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! 12 6

7 How the Program Works Step-by-Step Overview for Partners Program Guidelines Section 2 13 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 14 7

8 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 15 Step 1 - Establish Eligibility * 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 16 8

9 Step 1 - Establish Eligibility 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 17 Step 1 - Establish Eligibility *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). 18 9

10 Step 1 - Establish Eligibility 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. 19 Step 1 - Establish Eligibility 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. See Program Guidelines, Section 2 for more information and guidance on eligibility 20 10

11 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) 21 P4P Application and Participation Agreement 22 11

12 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. 23 Step 3 Develop ERP Develop Energy Reduction Plan Templates/tools provided 15% energy reduction target Submit ERP to Case Manager for review, preinspection, and approval Within 6 months of Application approval Request Incentive #

13 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. 25 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 26 13

14 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 27 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 Request Incentive #

15 Incentive #2 Measure Installation Minimum Performance Target of 15% Electric Incentives Gas Incentives Based on 15% savings $0.09 For each % over 15% add $0.005 Maximum Incentive $0.11 Based on 15% savings $0.90 For each % over 15% add $0.05 Maximum Incentive $1.25 per projected kwh savings per projected Therm savings 29 Incentive #2 Measure Installation May not exceed 25% of total project cost Incentives paid for gas and electric savings only (investor-owned utilities) 30 15

16 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 Request Incentive #3 31 Incentive #3 Post Construction Benchmarking Minimum Performance Target of 15% Electric Incentives Based on 15% savings $0.09 For each % over 15% add $0.005 Maximum Incentive $0.11 Based on 15% savings $0.90 per actual kwh savings Gas Incentives For each % over 15% add $0.05 Maximum Incentive $1.25 per actual Therm savings 32 16

17 Incentive #3 Post Construction Benchmarking May not exceed 25% of total project cost Requested upon approval of Post-Construction Benchmarking Report Incentive adjusted based on actual savings (true-up) 33 P4P Incentives 34 17

18 Incentive Caps Incentives will be capped at the lesser of: 50% of total project cost (combined Incentives #2 and #3) $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 35 Sample Incentive Calculation Project Data Size: 300,000 sqft. Project Cost: $500,000 Estimated Savings: 19% Actual Savings: 19% 36 18

19 Sample Incentive Calculation Incentive #1 300,000 sqft. x $0.10 = $30,000 Incentive minimum = $5,000 Incentive maximum = $50,000 or 50% of facility annual energy cost Committed Incentive = $30, Sample Incentive Calculation Incentive #2 19% Projected Energy Reduction (from ERP) 400,000 kwh x $0.11 = $44,000 [$ (4 x $0.005) = $0.11] 50,000 Therm x $1.10 = $55,000 [$ (4 x $0.05) = $1.10] $99,000 Maximum Incentive = $500,000 x 25% = $125,000 Committed Incentive = $99,

20 Sample Incentive Calculation Incentive #3 19% Actual Energy Reduction (As-Built) 400,000 kwh x $0.11 = $44,000 [$ (4 x $0.005) = $0.11] 50,000 Therm x $1.10 = $55,000 [$ (4 x $0.05) = $1.10] $99,000 Maximum Incentive = $500,000 x 25% = $125,000 Committed Incentive = $99, Sample Incentive Calculation Total Incentives Incentive #1 = $30,000 Incentive #2 = $99,000 Incentive #3 = $99,000 $228,000 46% of Project Cost is paid for by incentives 40 20

21 Program Guidelines 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 41 Tools and Templates 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 42 21

22 Questions 43 Energy Reduction Plan Overview Program Guidelines - Section

23 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 45 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) No more than 50% of energy savings from lighting measures Minimum 10% IRR 46 23

24 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) 47 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 48 24

25 Steps to Develop ERP 49 Steps to Develop ERP 50 25

26 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 51 Questions 52 26

27 Energy Auditing Requirements Program Guidelines - Section 3 53 Utility Bill Collection Benchmarking Existing Conditions Pre-metering Measure Evaluation Facility Audit 54 27

28 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. 55 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 56 28

29 57 Benchmarking EPA Portfolio Manager

30 What is EPA Portfolio Manager? Online property management and energy assessment tool Created by the US EPA under the ENERGY STAR Buildings Program 59 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 60 30

31 Using EPA Portfolio Manager 61 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) 62 31

32 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. 63 Existing Conditions Lighting Survey Mechanical Survey Building envelope Plug and misc. loads Occupants and schedules 64 32

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36 Existing Conditions Operator/Occupant interviews Operating problems Special conditions Deviation from intended operation of equipment Preventative Maintenance practices Current energy efficiency practices 71 Existing Conditions Baseline Facility Variables Occupancy Hours of operation Production volumes Types of tenants Etc

37 73 Pre-Installation Metering 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) 74 37

38 Pre-Installation Metering 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 Additional information to be presented in building modeling section 75 Measure Evaluation 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 76 38

39 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 77 Minimum Performance Standards Measures must meet or exceed: Minimum Performance Standards (Program Guidelines, Appendix A) ASHRAE prescriptive requirements, or Local code, whichever is more stringent Must comply with Measure Lifetimes per NJCEP Protocols (Program Guidelines, Appendix B) 78 39

40 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

41 Measure Interactivity Individual measures aggregated into a proposed work scope will often interact with each other and impact energy savings. 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 81 Cost Estimation Resources 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 82 41

42 Cost Estimation 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

43 Partner must ensure that all performance assumptions made in the simulation and reflected in the ERP are translated into bid and construction documents 85 Questions 86 43

44 Financing Plan Program Guidelines - Section 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) 88 44

45 89 Implementation Plan Program Guidelines - Section

46 Implementation Plan Objective Clearly present energy efficiency work scope timeline Timeline for approvals Bid document preparation Installation schedule

47 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. 93 Everything discussed up to this point pertains to ERP development

48 Lunch 95 Post-Installation Activities Program Guidelines Section

49 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. 97 Installation Report 98 49

50 Installation Report 99 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

51 Post-Construction Benchmarking Report Program Guidelines - Section 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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53 105 Questions

54 Building Modeling Program Guidelines - Section 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

55 Simulation Overview 1. Gather Baseline Data from Site Visit/Drawings 2. Create Baseline Model 3. Calibrate Baseline Model 4. Include Baseline Assumptions in ERP 5. Enter Measures into Model 6. Include Measure Results & Assumptions in ERP 109 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

56 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) 111 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 RETScreen good option for external calculations

57 Step 1 Baseline Data Collection 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 113 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

58 Useful Resources 115 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

59 Step 2 Create Baseline Model 117 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

60 Simulation Requirements Model must capture thermal zones, as per ASHRAE 90.1 Appendix G or Section 11 (Energy Cost Budget Method). 119 Step 3 Calibrate Baseline Model Collect utility bills (should be completed already) All energy use (Electric, Gas, Oil, etc) For all meters in building Cover most recent 12 consecutive months

61 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 apartment Meter C: Meter for common spaces on floors 2-8 Meter D1-D5: Meters for individual commercial tenants on 1st floor Natural Gas: Meter E: Gas used for space and service hot water boilers, entire building Meter F: Gas used for cooking and clothes driers on floors 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 121 Allowed Adjustments to Utility Bills Irregular Deliveries Original Data Adjusted Data

62 Allowed Adjustments to Utility Bills Outliers 123 Allowed Adjustments to Utility Bills Estimated Bills

63 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 125 Do Not Move On Until Model Passes Calibration Tests P4P Model Calibration Tool: Input

64 P4P Model Calibration Tool: Etracker Results 127 P4P Model Calibration Tool - Results

65 Calibration Accuracy Mean Bias Error Measures how close the annual energy use predicted by the weather-normalized model corresponds to the actual preretrofit 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%). 129 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?

66 Calibration Techniques 5. Compare Usage Profile of Electricity Bills to Model Predictions 6. 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 131 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 G of ASHRAE Appendix G) Explanation of Error Messages from Simulation Outputs (if any) See Section 4.2 of Guidelines

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68 Step 5 Simulating Measure-Level Savings 135 Simulation Requirements 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

69 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 137 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)

70 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

71 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 ERP Excel Tables 141 Measure Specific Modeling Requirements Program Guidelines, Section 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

72 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 of Guidelines for additional information 143 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) See Section

73 Questions 145 Combined Heat and Power & Fuel Cells

74 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 147 Eligible Technology Incentives Size (Installed Rated Capacity) Incentive ($/Watt) (2) (3) P4P Bonus ($/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 >500 kw 1 MW $1.00 >1 MW 3 MW (1) $0.55 >3 MW (1) $ % (4) $2 million 30% $3 million Fuel Cells Powered by non-renewable fuel source. Incentives available for systems both with and without waste heat recovery. 1 MW w. waste heat $ MW $3.00 >1 MW w. waste heat $2.00 >1 MW $1.50 $ % $2 million 45% $3 million Heat Recovery (5) Powered by non-renewable fuel source. 1 MW $ % $2 million Heat recovery or other mechanical recovery from existing equipment utilizing new electric generation equipment (e.g. >1 MW $ % $3 million steam 148 turbine) 74

75 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. 149 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 postinstallation data 30% 60% 10%

76 Equipment Requirements Equipment Must Be: Natural gas or hydrogen fueled (fuel cells) 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 See CHP /FC Application for The Following are Not Eligible: more information on eligibility and technical requirements 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. 151 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

77 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, 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,

78 Questions 155 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 See Section 7 of Program Guidelines

79 Partner Benefits Expand your business Qualified leads Marketing support Sales literature and Mass Media Listed at No Partner, no project, no incentive 157 Bring in Projects Next Steps TRC holds a monthly Partner conference call 4 th Wednesday of every month Access Code: Updates and changes to Program Questions & Technical discussions Feedback loop with our Partners Ideas about improving the Program

80 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 159 Additional Notes Download most recent ERP documents from Partner Portal: Current password: trp47px Keep an eye out for s from P4P questions to Join LinkedIn Group: search for NJ Pay for Performance Partner Network

81 Additional Notes Dial-into Energy Efficiency Committee meetings: 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: Thank you! Final Q&A