ENERGY SMART Saving Money Investing in Infrastructure Building Resilience

Transcription

1 ENERGY SMART Saving Money Investing in Infrastructure Building Resilience September 15, 2017 by Elizabeth Ackerman, DCO Energy Gary Finger, Ombudsman NJ Board of Public Utilities

2 First Step: AWARENESS What is the Societal Benefits Charge (SBC)? What does NJ s Clean Energy Program (NJCEP) do? What is ESIP? What is the value of a negawatt (EE)? What about generation (RE, DR, microgrids)? What resources are available?

3 Second Step: ENERGY AUDIT How much energy is being consumed kwh, BTU, kw How energy is being purchased Provides a baseline and benchmark of energy usage Inventory/age of existing equipment level of efficiency Identifies cost-effective Energy Conservation Measures (ECMs) Opportunities for on-site generation?

4 Third Step: ENERGY EFFICIENCY REDUCE WHAT YOU CONSUME BEFORE YOU GENERATE Negawatt is the most cost-effective kwh Ample incentives available Reduces size and cost of generation Collateral benefits: increased comfort, reduced emissions, increased productivity, job creation

5 Step 4: DISTRIBUTED GENERATION NOW SIZE GENERATION FOR REDUCED LOAD Solar PV (+ Battery Storage) Combined Heat and Power (CHP)/Fuel Cells Micro-grids Collateral benefits: resilience, energy independence + security, revenue streams

6 Step 5: INCENTIVES NJ s Clean Energy Program (NJCEP) Energy Savings Improvement Program (ESIP) Solar Renewable Energy Credit (SREC) Power Purchase Agreement (PPA) Demand Response, Frequency Regulation Market

7 INCENTIVE PROGRAMS

8 NJ CLEAN ENERGY PROGRAM Administered by the New Jersey Board of Public Utilities Funded from Societal Benefits Charge on utility bill Program Goals: Save energy and lower operating cost Protect environment and lower emissions Transform the market: technology, environment, financial

9 EE PROGRAM PORTFOLIO ELIGIBLE SECTORS PROGRAMS Commercial, Industrial, Government, Non-Profit, Institutional and Multifamily Audits Local Government Energy Audit Benchmarking study Equipment Rebates SmartStart Direct Install Local Gov t; Small Business Large Energy Users Sandy Relief Plan Whole Buildings Pay for Performance Existing Buildings Pay for Performance New Construction Energy Generation: Combined Heat and Power (CHP) and Fuel Cells

10 LOCAL GOVERNMENT ENERGY AUDIT (LGEA)

11 LGEA OVERVIEW Local governments under Local Public Contracts Law AVAILABLE TO Local governments under Local Public School Contracts Law County colleges under County College Contracts Law NJ State Colleges or State Universities 501(c)(3) Non-profit Agencies INCENTIVE The program subsidizes 100% of the audit cost, subject to an annual incentive cap of $100,000 per entity, per fiscal year.

12 LGEA: HOW IT WORKS TRC Solutions (Program Manager) provides ASHRAE level II audit, using an on-line application process Analysis of building(s) energy use: how much, by which equipment, how purchased, on-site generation Produces a list of recommended, cost-effective energy conservation measures (ECMs) Incentive cap increased for entities involved in ESIP project

13 WHAT IS BENCHMARKING? Is 60 MPG high or low for this automobile? Is 90 kbtu/sf/yr high or low for this building? Fuel Efficiency: MPG Energy Performance Source: 1 to 100

14 WHY BENCHMARK? Understand energy usage and costs First step for ENERGY STAR certification Identify under-performing facilities Assess effectiveness of operations Assist in goals, targets and timelines Set investment priorities Verify and document pre and post project energy use

15 NJ SMARTSTART BUILDINGS

16 SMARTSTART OVERVIEW Two types of incentives for installing high efficiency equipment: Prescriptive Incentives Custom Incentives Available to all Commercial, Industrial, Agricultural, Government, Non-Profit and Institutional customers Includes New Construction, Rehab and Retrofit projects Project pre-approval required Incentives up to $500,000 per electric account and $500,000 per natural gas account.

17 SMARTSTART: INCENTIVES Prescriptive Incentives Project Categories: New Construction Renovation Remodeling Equipment Replacement Specific incentives and individual applications for Lighting, HVAC, VFDs, Refrigeration, Controls and more.

18 SMARTSTART: INCENTIVES Custom Incentives Designed for new or innovative technologies proven to be cost-effective and not listed as prescriptive Incentives paid for approved projects at the lesser of three values: 50% of project cost Buy down to one year payback, OR $0.16/kWh, $1.60/ therm saved in first year Projects must have a minimum first year energy savings of 75,000 kwh or 1,500 therms to be eligible.

19 DIRECT INSTALL

20 DIRECT INSTALL OVERVIEW A turn-key, retrofit program to replace outdated and inefficient equipment Lighting, HVAC, Water, Refrigeration Open to Local Governments, small- and mid-sized Commercial and Industrial facilities with a peak electric demand 200 kw Provides incentives of 70% of the installed cost Incentives are paid directly to the contractor Customer only pays remaining 30% of installed cost $125,000 project cap $250,000 per entity cap per year

21 DIRECT INSTALL: BENEFITS Turnkey process: State-approved contractors conduct audit, complete all paperwork, install equipment Minimal capital outlay: Cost to entity limited by generous incentives and paid when work is completed and approved by NJCEP Fast turnaround time: Average length of time for project completion = 3-6 months Ongoing savings: Projects provide energy savings year after year

22 MIDDLESEX COUNTY EXTENSION SERVICES County Park Building Lighting & HVAC retrofit Total Project Cost: $79,505 Incentive: $55,654 Annual Savings: $11,604 Payback Period: 2.1 Years

23 ROXBURY TOWNSHIP PUBLIC SCHOOLS Public Elementary School Lighting & HVAC retrofit Total Project Cost: $119,740 Incentive: $83,818 Annual Savings: $16,229 Payback Period: 2.2 Years

24 HAMILTON TOWNSHIP FIRE DISTRICT #2 Municipal Fire Station Lighting & HVAC retrofit Total Project Cost: $125,664 Incentive: $87,965 Annual Savings: $12,961 Payback Period: 2.9 Years

25 PAY FOR PERFORMANCE P4P

26 P4P OVERVIEW Comprehensive, whole-building approach to saving energy in existing or new facilities Goal: reduce consumption by 15% or more Incentives up to $2 million per project, assuming both gas and electric improvements are made; $4 million annual entity cap Incentives paid in three installments at milestones Requires Customer to work with State-approved participating Partner

27 P4P OVERVIEW Existing Buildings: Large Commercial, Industrial Institutional and certain multifamily with an annual peak demand in excess of 100kW New Construction: Projects with over 50,000 square feet of planned conditioned space Eligibility requirements flexible for hospitals, 501(c)(3) non-profits, local government buildings, affordable multi-family housing and public universities and colleges

28 P4P: HOW IT WORKS Projects must create an Energy Reduction Plan Prior 12 month energy use baseline for existing buildings Current energy code baseline for new construction projects Incentive Milestone #1 of up to $50,000 Implementation of Project Must finish construction or renovation to qualify New Construction projects must submit an As-Built Energy Reduction Plan to address any changes during construction Incentive Milestone #2 paid to customer

29 P4P: FINAL PAYMENT To Qualify for Final Payment: For existing buildings, after 12 month of consecutive energy billing submit a post-construction report Complete commissioning and a Commissioning Report of new construction projects Final Incentive Milestone #3 paid to customer

30 P4P BENEFITS Helps businesses to stay competitive: > 40% of new non-residential buildings are built to green standards More cities are mandating energy performance disclosure of commercial buildings annually Increases the value of the building: ENERGY STAR and LEED labeled buildings receive higher prices and have increased occupancy over standard buildings Reduces operations and maintenance costs

31 NEWARK PUBLIC SCHOOLS

32 OLD BRIDGE TOWNSHIP

33 DG PROGRAMS ELIGIBLE SECTORS Commercial, Industrial, Government, Non-Profit, Institutional and Multifamily Energy Generation: Combined Heat and Power (CHP) and Fuel Cells PROGRAMS

34 COMBINED HEAT & POWER AND FUEL CELLS

35 CHP/FC OVERVIEW On-site power generation with recovery and productive use of waste heat Two paths for incentives: CHP and Fuel Cell systems fueled by non-renewable sources Biopower systems for technologies fueled by biomass, which is handled through the renewable energy program

36 CHP/FC OVERVIEW Incentives range from $0.35-$4.00/watt Cap of $2-$3 million depending on technology and size Incentives paid in three phases: 30% at equipment purchase 60% at installation completion 10% at performance verification

37 CHP/FC BENEFITS Lower cost: reduces overall electricity purchases from utility Less risk: company s energy prices more stable over time More reliable: may reduce disruptions from electric grid Less waste: utilizes heat that would otherwise be wasted More sustainable: on-site generation results in less greenhouse gas emissions

38 OCEAN COUNTY COLLEGE

39 OLD BRIDGE TOWNSHIP

40 JERSEY SHORE UNIVERSITY MEDICAL CENTER Hospital and Critical Care Facility CHP Equipment Total Project Cost: $3,888,805 Incentive: $1,000,000 Annual Savings: $2,892,703 Payback Period: 1 Year

41 RESILIENCE Ability to restore power quickly in the event of a grid power outage Requires Distributed Generation (DG) and ability to island i.e. isolate the facility from larger grid NJBPU Town Center MicroGrid grant program Powering Critical Facilities within close proximity 13 Projects $175,000 each for feasibility studies

42 SOLAR OVERVIEW Solar Renewable Energy Credits (SRECs) Entity owns system Each MW generated creates 1 SREC SRECs traded annually Net Metering Entity owns system Sell excess energy back to grid on monthly basis 12 month True-up : sell back to grid at wholesale price

43 SOLAR OVERVIEW Power Purchase Agreement (PPA) Rent-your-roof Guaranteed cost (4/kWh)of electricity for contract term Most common form of solar PV development

44 SOLAR BENEFITS Lower cost: reduces overall electricity purchases from utility Sometimes roof replacement is included in PPA Can provide revenue stream More sustainable: on-site generation results in less greenhouse gas emissions

45 REVENUE STREAMS Demand Response (DR) Entity paid by PJM for energy not consumed during peak hours (kw) Paid whether PJM calls an event or not Ideal for schools greatest demand hours during summer cooling season when schools have limited occupancy Frequency Regulation Market (FRM) Requires battery storage Sell energy back to grid at steady, predictable current Reduces impact on the grid of intermittency of RE

46 ESIP OVERVIEW Funding mechanism that allows public entities to pay for capital improvements (energy infrastructure) with operational savings realized by upgrading inefficient equipment Funds all hard costs (installed ECMs) and soft costs (audit, engineering design, bonding costs, 3 rd -Party review of ESP) required to implement project Typical ESIP term is years Turn-key process that delivers comprehensive energy analysis and solutions and maximizes all available incentives Guaranteed savings when working with an Energy Services Company (ESCO)

47 ESIP: TYPICAL ECMs Retro-commissioning (RCx) Lighting and Controls (in + out) Water Conservation Building Automation System (BAS) HVAC Chillers Boilers Roof Top Units (RTUs) Air Handling Units (AHUs) Motors Pumps Air sealing Insulation New windows New roof Kitchen equipment All available incentives Revenue Streams Commissioning Staff Training Energy Guarantee Energy Curriculum (schools)* *ESIP legislation allows 15% of the total cost of project to be directed to non-energy measures as long as energy savings can support them.

48 ESIP PROCESS 1. Conduct Investment Grade Audit (IGA) 2. Develop Energy Savings Plan (ESP) 3. Third-party review of ESP 4. Obtain BPU approval of ESP 5. Secure Funding 6. Produce Engineering Design/Specifications 7. Competitively bid all ECMs 8.Construct 9. Commission

49 ESIP: IMPLEMENTATION MODELS ESCO Model Uses public bidding or competitive contracting process to award a contract to a DPMC-certified ESCO to provide turn-key services ESCO conducts audit, develops the ESP, produces engineering design/specifications, bids the ECMs and manages the construction ESCO must give a guarantee of savings opportunity to government entity Contract award is for most advantageous, price and other factors considered process or lowest responsible bidder.

50 ESIP: IMPLEMENTATION MODELS Do-It-Yourself (DIY) Model Hire an energy consultant to develop your Energy Savings Plan Subcontract engineering design/specifications Bid the ECMs Manage construction in-house or hire professionals to provide that service Rely on built-in verification process to assure savings NO ENERGY SAVINGS GUARANTEE

51 ESIP: IMPLEMENTATION MODELS Hybrid Model ESCO + DIY Hire an Architect or Mechanical Engineer to manage your ESCO project AoR/EoR hires an ESCO as subcontractor to its professional contract ESCO conducts IGA; develops ESP AoR/EoR provides 3 rd -party review of ESP ESCO produces engineering design/specifications, bids the ECMs and manages construction ESCO can provide energy savings guarantee - contracted directly with entity

52 ESIP: NJBPU OVERSIGHT RFP to hire ESCO must be approved by the BPU (template RFP available) LGEA is basis of RFP to hire ESCO Mandatory pre-proposal conference for interested, DPMC-certified ESCO s BPU will receive, at a minimum, a CD or Flash Drive copy of each phase of the proposal and contract process BPU must approve ESP *NJCEP incentives are reviewed and approved in writing by the Program Manager, not BPU staff

53 ESIP: PROGRAM PROGRESS Projected Guaranteed Actual Percentage Entity Annual Savings Annual Savings Difference Barnegat School District $317, $359, % Mercer VoTech $1,015, $1,126, % Millville School District $616, $803, % Salem County VoTech $529, $623, % Wyckoff School District $368, $403, % Kearny Township $100, $122, % Bridgewater/Raritan RSD $592, $593, % Hanover Twp School Dist. $212, $218, % Phillipsburg $442, $521, % Franklin Twp $99, $103, % Somerset Hills $345, $352, % Manalapan $67, $78, % Newark Housing Authority $4,212, $9,411, % $8,918, $14,719, %

54 COUNTY OF OCEAN

55 ATLANTIC CITY

56 OLD BRIDGE TOWNSHIP

57 A D V O C A C Y

58 STREETLIGHTING IN YOUR COMMUNITY

59 STREETLIGHT OVERVIEW 565 municipalities in New Jersey Over 8 million ratepayers in the State Ratepayers (or taxpayers?) pay more than $110 million annually to light our streets There are just over 745,492 street lights in New Jersey Street lighting is paid for in nearly all cases by local government This is a budget item that is ultimately reflected in your property tax bill.

60 NATIONAL STREETLIGHTING STATUS USDOE: 20% of all energy consumed in US used is for lighting Between million street lights in U.S. Primary technology used is High Pressure Sodium Retrofitting all street lights with new LED technology will reduce the energy used by 24%. Added benefit: Reported reduction in crime by 12%

61 STREETLIGHTS IN NEW JERSEY Municipalities can save over $55 million annually utilities provided a tariff for streetlights tariff This represents between 1 ½% - 2% on a municipalities annual budget Atlantic City Electric (ACE) is the only investor-owned utility to provide the tariff The Board cannot force the Electric Distribution Companies (EDCs) to introduce a tariff for LED street lighting

62 STREETLIGHT COSTS IN NEW JERSEY Newark - $8.6 million annually Jersey City - $4.0 million annually Camden - $1.9 million annually Cherry Hill - $870,000 annually Haddonfield - $111,000 annually

63 STREETLIGHT COSTS IN NEW JERSEY Barnegat 144 street lights $19,672 Beach Haven 490 street lights $84,094 Harvey Cedars 176 street lights $35,018 Long Beach 1351 street lights $236,349 Ship Bottom 332 street lights $86,323 Surf City 217 street lights $35,705 Absecon 2022 street lights $127,413 Stafford Twp 3727 street lights $412,965

64 STREETLIGHT SMART Any municipally-owned streetlighting can be retrofitted now. Review the capital costs and determine the payback for your county and municipalities. NJ s Clean Energy Program provides incentives to convert to LEDs. Consider ESIP to carry the funding. If you are located in ACE s territory, upgrade to LEDs to take advantage of significant and ongoing savings.

65 STREETLIGHT SMART The Office of Clean Energy provides LED incentives up to $150 per light, including cobra head street lighting. Working with the street lighting tariffs submitted by Atlantic City Electric (ACE), under their SPL Rate schedule (Street and Private Lighting) a town can take advantage of improved lighting quality and slightly lower monthly costs. Under ACE s CSL Rate Schedule (CSL) when a town fronts the capital cost of the lighting the annual municipal lighting rates drops by over 65%.

66 ADVOCATE for building ordinance that requires all new paving and construction projects to upgrade to LED streetlighting technology. Parking lot lit with metal halide Same parking lot with LEDs Reduction in crime impacts public safety budgets

67 LOS ANGELOS after street light conversion Significant Green House Gas reductions Significant reduction in light pollution

68 RESOURCES Gary Finger, Ombudsman Elizabeth Ackerman, Architect NJ s Clean Energy Program Energy Savings Improvement Program (ESIP) Pay for Performance (P4P) Partners 16%20Partner%20List/P4P%20EB_NC%20Approved%20Partners% 20Master% %20Clean.pdf State-qualified ESCOs Sustainable Jersey