NYC Clean Heat CIVITAS Presentation. April 22, 2013

Transcription

1 NYC Clean Heat CIVITAS Presentation April 22, 2013

2 PlaNYC: A Greener Greater New York Air Quality Achieve the cleanest air of any big U.S. city Energy Reduce energy consumption and make our energy systems cleaner and more reliable Climate Change Reduce our greenhouse gas emissions by more than 30% 2

3 The Need to Eliminate Heavy Oil Eliminating No. 6 and 4 heavy heating oil is one of the highest impact strategies we can undertake to make New York City s air quality the cleanest of any major U.S. City Quantifying the Influence of Heavy Oil In the Department of Health conducted the NYC Community Air Survey at 150 monitoring sites citywide Fine particulate matter (PM 2.5) levels were 30% higher, on average, in parts of the City with the highest densities of heavy oil use compared to the lowest densities Annual Health Impacts from PM 2.5 Over 3,000 deaths 2,000 hospitalizations for lung and heart conditions 6,000 ER visits for asthma in children and adults 3

4 Heating Oil Regulations In April of 2011, DEP finalized regulations that will eliminate heavy oil use in two phases to balance near-term health benefits with cost minimization for buildings Phase 1 As of July 1, 2012, DEP no longer approves Certificates of Operation for No. 6 oil As these permits must be renewed every three years, No. 6 oil will be completely eliminated by 2015 Phase 2 All buildings must convert to cleanest fuels by 2030 or when replacing boiler/burner whichever happens sooner 4

5 NYC Clean Heat: Free Resources for Buildings Technical Assistance NYC Clean Heat staff is available to guide buildings through the conversion process NYC Clean Heat is working closely with the utilities and industry leaders to help buildings save money and convert to the cleanest fuels Financial Assistance NYC Clean Heat connects fuel switching projects to financing platforms to assist with construction costs. Website Visit nyc.gov/cleanheat to learn more about health impacts of heavy oil, clean conversion options, the conversion process, when your building must convert, and more Contact us Call 311 and ask for NYC Clean Heat 5

6 Available Heating Fuels NYC Clean Heat is fuel neutral program. Buildings have the option of switching to a number of cleaner burning fuels. Cleaner Burning Fuels Ultra-low sulfur No. 2 fuel oil (Clean 2) Biodiesel blends (B5, B20, etc.) Natural Gas Steam Other alternatives (geothermal, cogeneration, etc.) Heavy Fuel Oil No. 6 No. 4 6

7 Assess your current system What does your current system look like? An engineer or contractor will help you answer the following questions: Has the boiler and or burner exceeded its useful life? What is the condition of the boiler? What is the condition of the burner? Is the burner capable of burning Clean 2 fuel oil and or natural gas? What is the condition of the fuel oil storage tank? Is it buried, sitting on dirt, on saddles, in a vault? Is your chimney properly lined? 7

8 Steps to Switching: Natural Gas While all projects are unique, here are the steps that every natural gas conversion will have to undertake. Expect 6-9 months between planning and construction Natural Gas 1. Contact NYC Clean Heat 2. Determine Conversion Costs 3. Calculate Operating Savings and Pay-Back 4. Submit an application package to your utility National Grid All Projects Consider efficiency measures Solicit and select a contractor Permitting DEP and DOB DEC (tanks) Construction Con Edison 8

9 Natural Gas in NYC In October 2012, Con Edison launched the Area Growth Zone plan for gas development in Manhattan and the Bronx December 14, 2012 C5: Upper East Side B4: Midtown C3: Kingsbridge Armory/ Bedford Park NI: Pelham Parkway January 11, 2013 F: Central Harlem D4: Upper West Side B1: South Riverdale I: Mott Haven February 8, 2013 J1: Inwood D1: Morris Heights F4: Claremont Park/Highbridge J: Hunts Point 9

10 Steps to Switching: Ultra-Low Sulfur No. 2 (ULS 2) Oil to oil conversions generally require less coordination to complete. Expect 4-6 weeks between planning and construction Heating Oil: ULS 2 All Projects 1. Contact NYC Clean Heat 2. Determine Conversion Costs 1. Shop for a supplier 2. Consider biofuel 3. Skip the No Understand operating costs Consider efficiency measures Solicit and select a contractor Permitting DEP and DOB DEC (tanks) Construction 1. Boiler Maintenance 2. Energy Efficiency Measures 3. Tax Credits Go to to find a biodiesel supplier near you 10

11 Considering a ULS 2 Conversion There s more to think about besides price per gallon. All commodity prices change over time, but increasing system efficiency will always save money. Switching to ULS 2: Lower soot buildup results in higher system efficiency and reduced maintenance Save money by burning fewer gallons The Clean Heat team can help you compare fuel efficiencies Cost benefits Biodiesel tax incentives in NY State Many buildings find that the overall heating systems costs go down or break even after switching to ULS 2 Convenience Skip No. 4: If you convert to No. 4, you may end up having to do the conversion again in a short period of time 11

12 Your Neighborhood The Upper East Side has one of the highest concentrations of buildings burning heavy heating oil in the City There are 551 buildings in the Upper East Side that are still burning No. 6 or No. 4 heavy heating oil Of the 551, 117 are among the top 1,000 highest polluting buildings in the City (highlighted in purple) 48 of the highest polluting buildings have already converted to the cleanest available fuels Go to our Spot the Soot map to look up the buildings in your neighborhood Organize with your neighbors to convert to cleaner heating fuels together Discounted group heating oil rates available from local suppliers 12

13 Available Financing Direct Lending NYCEEC originates and funds loans directly to building owners or provides credit enhancement to commercial lenders for standalone retrofit or conversion financing. Loans can be unsecured or partially unsecured. $10MJPM Hess closed and $33M DB Community Clean Heat Fund in progress. Mortgage Based Products NYCEEC credit enhances a mortgage lender. Working with FNMA on energy efficiency and conversion mortgages and finalized $18M HDC Energy Retrofit Loan Program. 13

14 Available Financing Energy Efficiency NYCEEC is committed to catalyzing an energy efficiency and fuel conversion financing market in support of the Greener, Greater Buildings Plan and new legislation (LL 43, LL 84 Benchmarking and LL 87 Audit and Retro Commissioning) Check to see when your building is required to comply with LL 87 audit and retro commissioning deadline. The last digit of the Tax Block # of the 10 digit BBL determines your year of compliance. Early compliance of LL 87 is urged in order to take advantage of the savings from the energy efficiency measures implemented as a result of the audit and conversion. (Increase in cashflow from reduced operating expenses!!) Securing the professionals to conduct the audit and retro commissioning studies, compiling the data and implementing the measures can take more than 9 months. Completing a gas conversion can also take upwards of 9 months so bundling the costs into a combined scope of work is most effective. Arranging for a refinance to incorporate the bundled fuel conversion and energy efficiency measures is key. Contact your mortgage provider for assistance or check the Clean Heat website. 14

15 NYC Clean Heat Call 311 and ask for Clean Heat Website nyc.gov/cleanheat