GDS Associates, Inc. ENGINEERS & CONSULTANTS HELPING PRODUCERS SAVE ENERGY AND FINANCE IMPROVEMENTS WITH ON-FARM ENERGY AUDITS

Transcription

1 GDS Associates, Inc. ENGINEERS & CONSULTANTS HELPING PRODUCERS SAVE ENERGY AND FINANCE IMPROVEMENTS WITH ON-FARM ENERGY AUDITS

2 AGENDA Part I. Energy Programs and GDS Involvement Why have a farm energy audit Energy programs NRCS CAP s AgEMP Farmstead Energy Improvement Part 2. GDS Ag Energy Services Our Role as TSP s and qualifications Benefits of an on-farm energy audit Types of energy audits Overview of recommendations Conclusions 2

3 WHY HAVE A FARM ENERGY AUDIT? Improve farm s bottom line Reduce expenses, overhead Know which equipment is using the most energy Establish pollutant and greenhouse gas reduction goals Take advantage of grant/incentive programs. An energy audit may be a requirement 3

4 FINDING FINANCIAL ASSISTANCE Utility and State Programs Can be driven by state laws Prescriptive and/or Custom incentives Programs typically specific to individual utility Typically only for electric and/or natural gas savings not LP, fuel oil, biomass, etc. 4

5 FINDING FINANCIAL ASSISTANCE (CONT.) Utility and State Programs Some state and utility programs also cover cost of audit State of Hawaii about 75% of audit cost MSU about 75% of audit cost Consumers Energy $500 incentive for qualifying audit Colorado Energy Office full cost of energy audit Check with state or utility to see what is available 5

6 FINDING FINANCIAL ASSISTANCE (CONT.) Federal Programs USDA REAP NRCS EQIP (CAP 128) Agriculture Energy Management Plans (AgEMP) 2008 WI Pilot states piloted 2010 available as an option to all states 2012 available for all states 6

7 USDA-REAP: RURAL ENERGY FOR AMERICA PROGRAM 25% of project costs as grants and/or low interest loans Energy efficiency and renewable energy projects Existing operations and new construction Audit required for loan and grant applications Cost of audit can be written into the grant amount Audit is specific to equipment under application Must meet ASABE S612 standards Must be conducted by qualified individual 7

8 NRCS-EQIP: ENVIRONMENTAL QUALITY INCENTIVES PROGRAM Funding for Agricultural Energy Management Plans (AgEMP) CAP 128 All types of existing operations Livestock (dairy, poultry, swine, etc.) Greenhouse Grain Drying Irrigation Systems All energy types (electric, natural gas, LP, fuel oil, biomass, etc.) Payments standardized in 2012 Available in all states 8

9 EQIP - DOES NOT INCLUDE RENEWABLES 9

10 ON-FARM ENERGY AUDIT PROCESS OPTION 1 1. Producer signs up with the NRCS for CAP 128 (or work with state or utility program for funding) 2. Producer finds out if they are funded 3. Producer receives an on-farm energy audit from a qualified auditor or Technical Service Provider (TSP) NRCS keeps a listing of qualified TSPs for all CAPs Producer pays the TSP Producer gets paid by the NRCS Other programs keep lists of qualified auditors 10

11 ON-FARM ENERGY AUDIT PROCESS OPTION 2 1. Find qualified energy auditor to do an on-farm energy audit 2. Pay out of pocket for the energy audit 3. Apply for funding for improvement recommendations through federal, state, or utility programs 4. Good option for producers looking to upgrade equipment sooner than later 11

12 EQIP ENERGY EFFICIENCY IMPROVEMENT PAYMENT RATES Vary by state could cover up to 75% of project costs in some instances Some Examples: LED lighting High efficiency exhaust fans HVLS fans Greenhouse thermal curtains Plate coolers Irrigation Water Management Variable frequency drives (VFD s) High efficiency water heaters High efficiency space heating Attic inlets Grain Dryers Drip irrigation 12

13 EQIP CAP 128 Requires an ASABE S612 Tier 2 energy audit w/ Conservation Plan w/document of implemented measures w/criteria requirements Must be completed by a registered TSP Audits will be reviewed by state NRCS Engineers as well as National HQ 13

14 NRCS EQIP CONSERVATION PRACTICE IMPROVEMENT PROCESS After qualified energy audit 1. Producer applies through NRCS - EQIP for a payment for specific energy efficiency improvement. 2. Producer finds out if they are funded for the improvement. 3. If funded, producer installs improvement and receives payment from NRCS. 14

15 OTHER ENERGY EFFICIENCY IMPROVEMENT INCENTIVES Vary by state or utility program May cover 10-30% of project cost Includes prescriptive and/or custom incentives Prescriptive incentives typically simple application Custom typically require pre-approval Typically only offer incentives for electric and/or natural gas energy efficiency projects 15

16 16 QUESTIONS ON PART 1?

17 17 Part 2. GDS Ag Energy Services

18 AGRICULTURAL ENERGY AUDITS ARE THE FIRST STEP GDS Associates provides agricultural energy audits which allow producers to be eligible to apply for federal (USDA and NRCS), state, and utility grant funding. 18

19 GDS A TECHNICAL SERVICE PROVIDER 19

20 GDS CERTIFIED FARM ENERGY AUDITORS What does that mean? Have staff certified through Michigan State University (MSU) to conduct On-Farm Energy Audits Dairy Greenhouse Grain Drying Irrigation 20

21 WHEN DO ENERGY AUDITS MAKE SENSE? Anytime! At the right cost Dairy herd larger than hobby farm Heated greenhouse in cold climate Cooled greenhouse in hot climate Producer is concerned about high utility bills Farm is looking to upgrade equipment or expand facility Production has increased over time, but facilities haven t changed 21

22 BENEFITS OF AN ENERGY AUDIT Big picture of energy use Find equipment using large amounts of energy Allows for opportunities to save energy Saving energy leads to saving money Helps farms bottom line Helps find big bang for buck projects Ranking of energy savings opportunities Beyond specific producer concerns 22

23 ASABE TIER 2 REPORT Detailed evaluation and report of farm enterprise energy use Considers all major activities and components Background in energy calculations needed to understand how to gather appropriate data and calculate energy savings Standards do not make calculations uniform Excludes farm residence 23

24 ASABE TIER 2 REPORT (CONT.) Also includes: o Record of Decision o Business incentive information o State and Federal assistance program information 24

25 POP QUIZ True or False: An agriculture producer will always receive 100% funding for an On-Farm Energy Audit False: Must be approved for funding The cost of an audit is determined by the energy auditor NRCS, state and utility payment rates are set amounts There may be a difference between the auditor cost and energy audit payment rate 25

26 VALUE OF AN ON-FARM ENERGY AUDIT Energy consciousness Goal of an audit is to implement projects Implementation may requires partnerships with: Other Federal agencies State agencies Local governments Private industry Utility companies 26

27 COST OF ON-FARM ENERGY AUDIT On-line calculator tools are free Phone interviews for incentive programs are typically free On-site audit State and utility programs often audit is free or low cost ASABE Tier 2 range from $1000 to over $5000 Depends on type of enterprise, acreage, herd size Average $2000-$

28 ILLINOIS EQIP PAYMENT RATES FOR Controller - Multiple Function Automatic Controller System Each $3, Controller - Variable Speed Drive for >1 to <10 HP Motor Horsepower $ Controller - Variable Speed Drive for 10 to <50 HP Motor Horsepower $ Grain Dryer Bushel per Hour $70.65 Heating - Building 1,000 BTU/Hour $9.48 Heating - Radiant Systems 1,000 BTU/Hour $9.20 Motor - <= 1 HP Electric Motor Upgrade Horsepower $ Motor - > 1 to <10 HP Electric Motor Upgrade Horsepower $ Motor - >= 50 HP Electric Motor Upgrade Horsepower $62.47 Motor <50 HP Electric Motor Upgrade Horsepower $ Refrigeration - Compressor Heat Recovery System Each $2, Refrigeration - Plate Cooler Each $3, Ventilation - Exhaust Each $1, Controller - Single Function Automatic Controller System Each $1, Lighting - Outdoor/High Bay Each $ Building Envelope - Attic Insulation Square Foot $0.62 Building Envelope - Greenhouse Screens Square Foot $1.50 Building Envelope - Wall Insulation Square Foot $1.73

29 ON-FARM ENERGY AUDITS CONCLUSIONS Does not include renewable energy audit Could lead to project funding opportunities otherwise not available without audit USDA - REAP NRCS - EQIP Utility/State (if they require energy audit) Could lead to great energy and cost savings for a farm 29

30 30 QUESTIONS?

31 FOR MORE INFORMATION, CONTACT: Bethany Reinholtz, CEM, CWEP

32 GDS Associates, Inc. ENGINEERS & CONSULTANTS