Energy Study. Commercial Custom Design Program Retrofit Projects. November 2014

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1 Energy Study Commercial Custom Design Program Retrofit Projects November 2014

2 Table of contents 1.0 Energy Study Guide Introduction Eligibility requirements General requirements Energy Study Proposal Application Project kickoff Proposal submission Energy Study Report Title page Key contacts information Executive summary Existing building/facility description Energy use analysis Energy conservation measures Recommended bundle of energy conservation measures Cost estimates Suggested description of mechanical systems

3 1.0 Energy Study Guide 1.1 Introduction This guide has been written to assist consultants with the preparation of an Energy Study Proposal and a subsequent Energy Study Report. To qualify for consideration, energy studies must be prepared by a consultant included in FortisBC s approved Consultant List. Participation in the program requires that two separate documents be submitted, reviewed and approved in sequence: The Energy Study Proposal: The purpose of the Energy Study Proposal is to define the scope and cost of the study and provide a pre-feasibility overview of potential energy conservation measures and options. The Energy Study Report: The purpose of the Energy Study Report is to present the detailed analysis of the proposed energy conservation measures and the forecasted savings and costs in a useful format. To be eligible for Energy Study Funding, the Energy Study Proposal must be approved by FortisBC. 1.2 Eligibility requirements For an energy conservation project to be eligible for consideration, there must be a lower cost, less efficient alternative (e.g. the Base Case) to compare the energy conservation project to. If the project costs less than the Base Case, then the project will not be eligible for incentive consideration under the program. Refer to Section of the Energy Study Report for more details For natural gas conservation projects: The facility must be located in the FortisBC service territories of the Lower Mainland, Fraser Valley, Squamish, Whistler, Interior of B.C., Vancouver Island and the Sunshine Coast. Projects must have the potential to save at least 1,200 GJ of natural gas per year while providing the same level of services to be eligible to participate in the program. Projects must achieve gas savings via measures aimed at space heating, ventilation, domestic hot water heating, commercial cooking, laundry or pool heating. Measures targeted at industrial process loads 1 are not eligible. The last energy study completed for the facility must be no less than three years old. All proposed equipment must be new. Projects using rebuilt or reconditioned equipment are not eligible. Proposed Energy Conservation Measures must be proven technologies which are commercially and readily available in the market with a reasonable adoption rate. Energy Conservation Measures intended to demonstrate a technology to increase market adoption in B.C. and/or for research and development are not eligible under the program. 1 Industrial process loads use natural gas as an input to a manufacturing/transformative process where raw materials are transformed into finished goods (industrial production) with the use of machines, tools and labour for the purpose of resale. Process loads do not include space heating or domestic hot water for the purpose of maintaining human comfort or sanitation. 2

4 1.3 General requirements Grammar and style: The proposal and report should be grammatically correct. The language should be clear, concise and understandable by all readers Engineering calculation methods: a) All energy savings must be calculated and presented as site energy (e.g. the amount of energy consumed by the facility as reflected on the utility bills). b) All engineering calculations must be performed using an Excel spreadsheet with values used to determine the baseline and proposed conditions. c) Natural gas energy savings must be quoted in gigajoules per year (GJ/yr). Electrical energy savings must be quoted in kilowatt-hours per year (kwh/yr). Electrical demand savings must be quoted in kilowatts (kw). Gas and electricity cost savings must be quoted in dollars per year ($/yr). Other energy units (Btu, m 3 or kwh equivalents) may also be used as long as GJ and kwh are also stated. d) All weather sensitive energy conservation measures utilize degree day, bin temperature data or hourly weather data for the nearest weather station to normalize the savings calculations Documentation: a) All engineering analysis/calculations and supporting documentation associated with the energy study MUST BE PROVIDED in a fully annotated and accessible Excel spreadsheet. The Excel spreadsheet must be in an unprotected format (e.g. cells with formulas showing calculations). All calculations must be transparent and traceable for technical review. Failure to provide these in an unprotected format will lead to invalidation of the energy study. b) All assumptions, inputs and outputs of the engineering analysis/calculations for each individual energy conservation measure must be documented in the calculation spreadsheet and the Energy Study Report. The values, units and rationale for all relevant assumptions should be clearly stated. Energy saving estimates must be reasonable when compared against simplified calculation methods. c) Supporting energy usage histories, equipment performance data, load calculations and detailed cost estimates that are used in the calculations and estimates must be documented in the detailed calculations spreadsheet and the Energy Study Report. d) Field measurement results, meter readings, data logging results and equipment performance data sheets, cost estimate quotations, etc. must be included in an appendix. Electronic spreadsheet files shall also be provided. e) Refer to the Energy Study Report section below for more detail Mathematical accuracy and consistency: All calculations should be checked for mathematical accuracy and values should be consistent when repeated more than once Illustrations: Tables, charts and other diagrams should be properly labeled. Duplication of similar information in varying forms is not generally necessary. Energy conversion factors: Electricity Natural gas Other 1 HP = kw 1 GJ = kwh 1 m 3 = ft 3 1 kw = 3,412 Btu/hr 1 GJ = 26 m 3 of natural gas 1 boiler HP** = 33,480 Btu 1 GJ = 947,817 Btu 1 boiler HP** = 34.5 lb/hr 1 GJ = therms 1 GJ = 0.05 tons CO 2 e 1 m 3 = 35,310 Btu* * Based on 1,000 Btu per ft³. ** From and at 100 C (212 F). 3

5 2.0 Energy Study Proposal The purpose of the Energy Study Proposal is to clearly define the scope and cost of the study and provide a pre-feasibility analysis of the potential energy conservation measures and options. It should provide a brief description of the building, equipment and/or system to be studied, how the project proposes to reduce natural gas consumption, any pre-study estimates of energy and cost savings and, most importantly, the cost of the proposed energy study. The following steps are required for submitting an Energy Study Proposal: 2.1 Application Contact a FortisBC program representative to discuss your project at a high level. If the program appears to be a good fit for the project, the FortisBC program representative will submit an application on your behalf. 2.2 Project kickoff meeting The FortisBC technical team will review the information submitted in the application. If the project appears eligible to participate in the program, a project kickoff meeting will be scheduled. The project kickoff meeting may occur in person or over the phone. During this meeting, a FortisBC program representative will review the project with the customer and consultant to ensure a good understanding of program requirements and deliverables. This kickoff meeting also provides the opportunity to confirm the project is suitable for the program. 2.3 Proposal submission After the kick off meeting, if the potential energy conservation project meets the eligibility requirements, prepare an Energy Study Proposal and submit to FortisBC. The Energy Study Proposal must be submitted using the Commercial Custom Design Program Energy Study Proposal template. FortisBC does not provide guidance on pricing for the Energy Study, but expects fees to be reasonable and based on fair market value for the required services. A copy of the Energy Study Proposal template will be forwarded to the participant and the participant s consultant following the kickoff meeting. The template must be filled out in its entirety and returned to FortisBC at the earliest possible convenience. A copy of a written proposal may also be provided, though it is not strictly required. Proposals should be submitted to: customdesign@fortisbc.com Mail Energy Efficiency & Conservation FortisBC Energy Inc Fraser Highway Surrey, B.C. V4N 0E8 4

6 3.0 Energy Study Report The Energy Study Report should include details pertaining to all the applicable items/sections as described below. While FortisBC does not necessarily want to impose a standard format on all firms, it does wish to ensure the various items are covered and the study is completed in accordance with at least an ASHRAE Level 2 Energy Audit. 3.1 Title page The title page shall include, but is not limited to, the following: a) Energy Study Report title b) customer name, building name and building address c) engineering firm/consultant s name and names of the study s author(s) d) report completion date 3.2 Key contacts information Customer information a) customer name (individual or firm) b) contact person c) contact information: office address (postal and courier) telephone number, mobile number fax number (optional) address Approved consultant information a) consultant name (including the firm and/or responsible individual) b) contact information: office address telephone number, mobile number fax number (optional) address 5

7 3.3 Executive summary An executive summary must be provided at the start of the report. It should be brief, and yet describe the current situation, the proposed plan of action and any other important points required to provide a high level understanding of the project at a glance. The executive summary shall include, but is not limited to, the following a) building name and location, including a brief description of the building studied, building type, use and size b) a brief background and description of the equipment and/or system(s) studied and reason(s) for study. c) a summary table for all energy conserving measures (ECMs), identified by the energy study, as depicted below: ECM Description Energy savings Cost savings Capital cost Natural gas (GJ/yr) Electricity (kw/yr) Electricity demand (kwh/yr) Natural gas ($/yr) Electricity ($/yr) Base Case ($) ECMs ($) Estimated measure life (years) Simple payback (years) NPV or IRR ($/ yr or %) 1 Heat recovery 5,000-10,000-1 $45, $(600.00) $300, $500, DDC controls upgrade 1,000 20,000 2 $9, $1, $- $20, d) a summary table for the bundle of ECMs recommended for implementation (This bundle might be based on discussions with the customer, economic feasibility, and/or consultant s recommendation. Note: bundled energy and cost savings shall be adjusted to account for cross impacts and to avoid double counting.) e) where other fuel/energy sources (e.g. fuel oil, propane, biomass, solar thermal, etc.) are impacted, any increase or decrease in consumption must also be included in the tables above 3.4 Existing facility/building description The Energy Study Report shall provide a general overview of the existing building(s), including but not limited to: a) FortisBC account and premise number(s) b) most recent utility rates for all fuel types (e.g. electricity, natural gas and other energy sources) c) Facility/building general information: building and construction type age (include dates for major renovation and additions) and general physical condition total floor area, number of floors and space use and layout (sketches optional). Total heated (conditioned) and unheated (unconditioned) floor area occupancy patterns and schedules. Provide current and projected if a change is anticipated within three years. Primary tenant(s), number of occupants or residential units, if applicable description of any existing mechanical, electrical and/or building envelope systems that may be impacted by ECMs. 6

8 3.5 Energy use analysis The Energy Study Report shall provide an energy consumption history for all fuel types, including but not limited to: a) Normalized monthly baseline consumptions, demand and cost of all energy sources potentially affected by the energy conservation measures studied for a typical year (e.g. only a normalized natural gas baseline is required in cases where ECMs solely provide natural gas savings). The normalized baseline must be based on historical billing data (e.g. at least three years including the most recent calendar year) and weather-corrected (e.g. heating-degree days and cooling-degree days from the nearest weather station). b) An estimated natural gas end-use breakdown (e.g. natural gas end-use includes space heating and domestic hot water, etc. c) If the thermal load at the project site is satisfied by using multiple types of fuels (e.g. hybrid of natural gas and biomass or propane, etc.), a breakdown of thermal energy by the different fuel types must be provided. Note: natural gas must be one of the fuel types for satisfying the thermal load; project sites that use natural gas solely for standby or back-up purpose are not eligible. 3.6 Energy conservation measures The Energy Study Report must fully describe each of the ECMs studied. For each ECM, the following must be included: Base Case system description Each ECM must be evaluated against a Base Case, and this Base Case must be clearly described as follows: a) The Base Case is defined as the loads that would occur under standard operating conditions and under standard practice for equipment specification and operation. If the energy conservation measure (ECM) is replacing existing, low-efficiency equipment in good condition, then the Base Case is the equipment/ condition currently in place. If the ECM is replacing end-of-life equipment requiring necessary upgrades or replacement, then the Base Case is defined as the equipment and operation that would have been specified in accordance with current energy efficiency codes and regulations. The current codes and regulations are: BC Energy Efficiency Act BC Energy Efficiency Standards Regulations NRCan Minimum Energy Performance Standards any other regional/municipal regulated and applicable code as well as energy efficiency requirement (e.g. Vancouver Building Bylaw) b) If the particular equipment/system is not confined by or mandated to meet the energy efficiency requirements per any current codes and standards, common industry practices may be considered. The ECM is defined as the higher capital cost, more efficient option than the Base Case. c) If the ECM is a lower cost option than the Base Case, then the project will not be eligible for consideration or incentives under the program Recommended energy conservation measure description Describe each of the proposed ECMs. The study must consider the effects of all ECMs individually on the consumption, demand and cost of all energy sources and utilities. This shall include electricity, natural gas, propane, fuel oil, wood, coal, biomass, water, sewer and any others. Any increases or decreases in consumption of any other utilities or energy sources by incorporating each ECM shall be evaluated and broken out where applicable. The description of the ECMs should include the following: List and briefly describe each ECM in general terms and the work required to accomplish implementation. Provide a list of equipment quantities, makes, models, capacities and efficiencies. Clearly indicate the affected area within the facility/building. Provide the estimated service life of each ECM. 7

9 Describe any non-energy benefits, such as reduced greenhouse gas emissions, reduced water usage, improved comfort, smaller mechanical room and so on). These should be quantified when possible. Note: ECMs with only non-energy benefits or unquantifiable savings shall not be included in the study and are not eligible for consideration in the program. Where such may be required for clarity, include a basic single line schematic drawing showing each ECM along with their corresponding base case option(s). A risk analysis briefly describing the potential obstacles to the realization of the energy savings. Describe and quantify the potential impact on the projected energy savings. Discuss the likelihood that the obstacles identified will materialize and outline a proposed contingency plan aimed at minimizing the potential impacts. Note: potential changes to equipment specifications to suit site conditions, lead times or other need not be identified here. Any such change must be reported during project implementation and any implementation incentive(s) will be adjusted accordingly. All of the ECMs identified in the kickoff meeting should be addressed. If certain ECMs are determined as not feasible, the rationale must be provided in the Energy Study Energy and cost savings estimate Provide the estimated energy and cost savings for each of the proposed ECMs. To determine the energy savings, first determine the energy consumption of the Base Case, followed by the consumption after the implementation of the proposed ECM. The energy savings shall be the difference between these two results. The energy and cost savings estimate for each ECM should include the following: pre- and post-retrofit annual energy savings per ECM (GJ/yr for natural gas, kwh/yr for electrical consumption, kw for electrical demand and GJ/yr for other fuel type savings) Note: Energy consumption and savings estimates must be based on normalized consumption using applicable weather data from the nearest weather station, and typical equipment/systems operating schedules. annual dollar savings per ECM, based on the current utility rates Note: Cost savings may be determined by applying the customers utility rates to the energy savings. Refer to Section 8 for additional information on cost estimates. where possible, provide the estimated annual maintenance cost savings associated with each ECM and associated Base Case equivalent greenhouse gas (GHG) reduction in tons of CO 2 e estimated simple payback of each ECM net present value (NPV) for each ECM with customer supplied discount rates or Internal Rate of Return (IRR) if no discount rate is provided The Energy Study Report must also provide a description of the energy analysis methodology/approach, calculations and major assumptions used to determine the energy savings estimate. Note: the study must consider the combined and interactive effects of all ECMs in terms of consumption, demand and cost of all energy sources and utilities. Double counting of energy savings is not acceptable. Note: the supporting documentation and engineering calculations for each ECM must adhere to the general requirements of documentation under Section Recommended bundle of energy conservation measures In general, not all of the studied ECMs may be recommended for implementation. In such a case, the Energy Study Report shall provide a bundle of recommended ECMs. This bundle represents the specific ECMs that the consultant believes in his/her professional opinion, the customer should implement. Note: the bundle of recommended ECMs might be selected through a discussion between the consultant and customer. The recommendation for bundles of ECMs shall include the following: a list of the specific ECMs included in the recommended bundle the rationale for the composition for each recommended bundle a summary of the estimated energy and cost savings, capital costs, measure life and either the Simple Payback, NPV or IRR for each recommended ECM bundle (This should be provided in a tabular format as described in Section 3.3.) 8

10 3.8 Cost estimates The full scope of work to implement the ECM might include, but is not limited to: i. equipment ii. labour iii. design and engineering iv. facility specific costs (e.g. costs associated with infection control, etc.) Contingency, GST, spare parts and warranty plans are NOT eligible under the Program and should not be included in the capital cost estimate. All costs shall be itemized. The capital cost estimate is required for all analyzed ECMs and their associated Base Case option regardless of whether or not ECMs are included in the recommended bundle. Include any increases or decreases in costs associated with other related systems (e.g. decreases in pump size when replacing old boilers). The incremental project cost, which is the difference between the ECM and the corresponding Base Case cost and shall be shown separately for each ECM. Include any available copies of written quotes from suppliers and contractors to justify equipment, installation and engineering project costs. Note: If the estimated capital cost (NOT incremental cost) of any ECM is in excess of $100,000 and if the total estimated capital cost of the bundle of recommended ECMs is in excess of $250,000, then the capital cost estimate for the full scope of work to implement the ECMs must be performed by a third party, Professional Quantity Surveyor or a General Contractor. A detailed capital cost estimate, such as the Professional Quantity Survey, or a report or quotation by the general contractor shall be attached in the appendix. 3.9 Suggested description of mechanical systems The descriptions of the Base Case and ECMs shall include details on any/all of the following building systems, as applicable (for equipment/system that will be affected by the ECMs proposed in this study): HVAC system The HVAC system description for both the Base Case and the energy efficient case should include, but not limited to:: types of systems and areas of the building served inventory of equipment including: - makes and models - heating and cooling capacities - equipment efficiency ratings normalized baseline heating and/or cooling energy consumption (include in read/write Excel electronic format seasonal usage schedules and sequences of operation length of service life Domestic hot water system The water heating system description for both the Base Case and the energy efficient case should include, but not limited to: types of systems and areas of the building served inventory of equipment including: - makes and models - heating capacities - equipment efficiency ratings baseline energy consumption, or estimated DHW load if baseline is not available sequences of operation length of service life 9

11 3.9.3 Control equipment The control system description for both the Base Case and the energy efficient case should include, but not limited to: equipment inventory equipment application DDC system points (only if installing new DDC system is part of a ECM proposed) sequence of operation and control strategy Other mechanical systems (kitchen facilities, swimming pools, laundry, etc.) The mechanical system description for both the Base Case and the energy efficient case should include, but not limited to: types of systems and areas of the building served inventory of equipment including: - makes and models - heating and cooling capacities - equipment efficiency ratings normalized baseline energy consumption (include in read/write Excel electronic format) seasonal usage schedules and sequences of operation length of service life Questions or comments? Energy Efficiency and Conservation FortisBC Energy Inc Fraser Highway Surrey, B.C. V4N 0E8 Call customdesign@fortisbc.com FortisBC Energy Inc., FortisBC Energy (Vancouver Island) Inc., FortisBC Energy (Whistler) Inc., and FortisBC Inc. do business as FortisBC. The companies are indirect, wholly owned subsidiaries of Fortis Inc. FortisBC uses the FortisBC name and logo under license from Fortis Inc. ( /2014)

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