REQUEST FOR CONCEPT PAPERS

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1 REQUEST FOR CONCEPT PAPERS ISSUED BY: For The Environmental and Economic Concept Paper Due: Monday August 17, 2015 at 3:00 pm CDT Issued: July 13,

2 1.0 INTRODUCTION AND BACKGROUND The Program Administrator for Focus on Energy s Environmental and Economic Research and Development Program (EERD) has issued this for research projects to create new knowledge in the areas of energy efficiency and renewable energy program design and delivery in Wisconsin. The two-page Concept Papers will be evaluated and used as the basis to invite full proposals for research projects in the 2015 funding cycle. 1.1 About Focus on Energy Focus on Energy is funded by the state's investor-owned energy utilities, as required under Wis. Stat (2)(a), and participating municipal and electric cooperative utilities. Focus on Energy has been in existence since Focus on Energy works with eligible Wisconsin residents and businesses to install cost-effective energy efficiency and renewable energy projects. Focus on Energy information, resources, and financial incentives help to implement projects that would otherwise not be completed, or to complete projects sooner than scheduled. Its efforts help Wisconsin residents and businesses manage rising energy costs, control the state s growing demand for electricity and natural gas, promote in-state economic development, and protect our environment. Focus on Energy aims to: Reduce the amount of energy used per unit of production in Wisconsin, while improving energy reliability. Enhance economic development and make Wisconsin firms more competitive. Reduce the environmental impacts of energy use. Expand the ability of markets to deliver energy efficient and renewable energy goods and services to consumers and businesses. Deliver quantified financial returns on public investments in energy improvement. More information on Focus on Energy can be found at About the Environmental and Economic Research and Development Program Focus on Energy s EERD Program allows Wisconsin to further its efforts towards reducing energy consumption, costs, and environmental impacts. Since 2002, more than 55 EERD grants have been awarded to research projects related to the environmental and economic impact of energy use. Going forward, EERD will focus more specifically on research that benefits the design and delivery of Focus on Energy programs. More information on EERD can be found at RESEARCH TOPICS EERD is seeking two-page Concept Papers for research projects that inform program design and implementation of energy efficiency and renewable energy programs in Wisconsin. EERD has identified research topics for 2015 (listed in Appendix A) and welcomes Concept Papers addressing these topics and other research topics in the areas of energy efficiency and renewable energy program design or delivery in Wisconsin. 2

3 Research Topics The 2015 Research Topics can be found in Appendix A. As noted in Section 2.0, Focus on Energy will accept Concept Papers addressing both these topics and other topics that are relevant to energy efficiency and renewable energy program design or delivery in Wisconsin. Your Concept Paper should indicate which of the research questions it addresses or that you are proposing research on an alternate topic. The research questions for 2015 were chosen to inform Focus on Energy programs; provide a balance of research between sectors, technologies, and strategies; and address new, Wisconsin-specific questions that have not been dealt with extensively in the literature. If proposing an alternate topic, state clearly how that research is new, Wisconsin-specific, and how results will be directly applied to the design and delivery of Focus on Energy programs. 2.2 Exclusions Proposals will not be accepted for fossil fuel generation research, transportation sector topics, or technology prototyping, development or demonstration. EERD research projects are not meant to duplicate evaluation, measurement, and verification (EM&V) of Focus on Energy programs. However, Focus on Energy evaluation reports are available for researcher reference at RESEARCH TIMELINE Concept Papers should describe research projects that aim to produce results in about 12 months to enable impact on program implementation in the near-term. Research contracts awarded through the EERD 2015 funding cycle will terminate no later than December 31, FUNDING INFORMATION A total of $300,000 is available for research projects in this 2015 funding cycle. These funds are anticipated to be awarded across four (4) to six (6) research projects. 5.0 ELIGIBILITY Any organization with a research project relevant to Wisconsin that fits within program guidelines can apply for a grant from the EERD program. This includes state, federal, and local government agencies; academic institutions; non-profit organizations; and private sector research organizations. Regardless of applicant, proposed projects must focus on energy efficiency and renewable energy specifically in the state of Wisconsin. A single organization may submit multiple Concept Papers provided they cover substantially different topic areas. 3

4 6.0 SUBMISSION REQUIREMENTS 6.1 Submission Concept Papers must be sent electronically to and received no later than 3:00pm CDT on Monday August 17, Concept Papers received by this time will be considered final, and revisions will not be accepted. Submission s should be smaller than 4.5 megabytes (MB). Hard copy or faxed Concept Papers will not be accepted. Applicants will receive confirmation that their applications have been received by response. Applicants are encouraged to submit well in advance of the deadline to allow time to resolve any transmission issues. Applicants will receive a confirmation when their proposal has been received. 6.2 Distribution List Prospective applicants who would like to be added to the EERD distribution list to receive updates to this Request should send an to eerd@focusonenergy.com. 6.3 Website This Request and all addendums will be available in the Request section of the Focus on Energy web site Request Withdrawal Focus on Energy reserves the sole and absolute right to withdraw this Request at any time before the duly authorized execution of the contract/purchase order with applicants for any reason including, but not limited to, action by the Public Service Commission (PSC) of Wisconsin that modifies or withdraws the Program. In its sole and absolute discretion, Focus on Energy may or may not invite proposals based on submitted Concept Papers and may invite proposals from researchers with other than the most cost-effective Concept Papers. Focus on Energy will not assume any liability, under any circumstances, to any applicant submitting a proposal in response to this Request. 6.5 Concept Paper Preparation Cost Applicant accepts any and all costs and expenses incurred prior to the duly authorized execution to the contract/purchase order and will not seek any of these costs and expenses from Focus on Energy. 6.6 Concept Papers Not Confidential Focus on Energy does not guarantee that Concept Papers will be kept confidential, including either the Concept Paper submitted in response to this Request or any contract/purchase order arising from the solicitation. In addition, Focus on Energy may submit Concept Papers to Wisconsin Statewide Energy Efficiency and Renewable Administration (SEERA) or the PSC for review. Furthermore, Focus on Energy, the Focus on Energy Program Administrator and its subcontractors, and the PSC will assume no liability to an applicant or other party as a result of any public disclosure of any Concept Paper, proposal, or the resulting contract/purchase order. 4

5 6.7 Program Conflicts Provisions Individuals or organizations currently undertaking the following Focus on Energy roles are not eligible to submit a Concept Paper under this Request: Program Administrator, Independent Evaluator, Compliance Agent, Program Implementer, or Fiscal Agent to Focus on Energy in either a prime or subcontracting capacity. Entities that have contracts with the Focus on Energy Program Administrator, Evaluator, Fiscal Agent, Program Implementers, Compliance Agent, SEERA or the PSC for Focus on Energy work are not eligible to bid on this Request. 7.0 CONCEPT PAPER INSTRUCTIONS 7.1 Concept Paper Format Concept Papers should follow the format below and provide sufficient and succinct information to allow initial assessment of the proposed research and qualifications of the proposer. Concept Papers shall not exceed two pages in length. Your submission should also include a conflict of interest disclosure page as described below, so each submission should total three pages in length. Submissions shall be a single PDF or Microsoft Word file with at least one inch margins and 11 point font. 7.2 Concept Paper Contents I. General Information II. Project title Proposing organization Mailing address Contact person (name, title, phone number, address) Research question addressed Proposed budget amount in dollars Proposed project duration (projects should complete by December 31, 2016) Principal investigator (name and title) Additional key investigators (names and titles) Proposed Research Project Describe your proposed research project. Include information on your research approach, methods, anticipated results, and deliverables. Explain how the proposed research will benefit the Focus on Energy program. Proposers are encouraged to use more of the allowed two pages describing their proposed project and its relevance to Focus on Energy rather than documenting proposer qualifications extensively. Proposers are required to disclose if the proposed project is part of a larger project. If that is the case, that larger project needs to be described and funders of the larger project should be listed. III. Qualifications and Experience Describe the qualifications and experience of the team as they apply to the research proposed. 5

6 IV. Conflict of Interest Disclosure Page All applicants shall disclose any and all contractual or financial relationships with Focus on Energy Program Administrator, Fiscal Agents, Program Implementers, Compliance Agents, SEERA members, and/or PSC staff. If an applicant currently has a contract with the Focus on Energy Program Administrator, Evaluator, Fiscal Agent, Program Implementers, Compliance Agent, SEERA or the PSC, applicant shall indicate the contract purpose, dollar value of the contract and duration of the contract. As set forth in Section 6.7 above, entities who have contracts with the Focus on Energy Program Administrator, Evaluator, Fiscal Agent, Program Implementers, Compliance Agent, SEERA or the PSC for Focus on Energy work are not eligible to bid on this Request. The conflict of interest disclosure should be the only information on the third page of your submission. Failure to accurately respond will result in immediate rejection of the Concept Paper. If no such relationships exist, applicant shall provide an affirmative response indicating no relationship exists. 8.0 PROPOSAL INVITATION CRITERIA Concept Papers will be reviewed by an EERD selection committee who will then put forth a recommended set of invitations for proposals to the Public Service Commission of Wisconsin for final approval. Selection criteria and weights are: Relevance to Focus on Energy Goals: Research concept has demonstrated benefit to design or delivery of Focus on Energy programs. (40 points) Research Approach: Research design and methods are sound and achievable. (30 points) Applicant Experience and Capabilities: Applicant and key staff demonstrate past skill, competence and experience in implementing research programs with similar breadth, technical skill set, and scope. (20 points) Cost: Costs are reasonable relative to scope of proposed research approach and outcomes. (10 points) 9.0 SCHEDULE Request Released: July 13, 2015 Concept Papers Due: August 17, 2015 Full Proposals Invited: September 7, 2015 (Anticipated) 6

7 Appendix A - Potential EERD Research Topics Identified by Focus on Energy MEDIUM TO HIGH PRIORITY RESEARCH TOPICS 1. Combustion Safety of a Naturally Vented Water Heater after Air Sealing Measures Problem: Naturally vented residential water heaters often fail to meet the BPI and/or ResNET combustion safety protocol after air sealing. This limits participation in the Home Performance program by potentially forcing participants to purchase a power vent water heater and/or can also affect the energy savings available to be claimed by Focus because the home cannot be sealed to the optimum level. Potential research items: a. Proposers should provide test data on a sampling of residential water heaters. Does data exist or will the proposer need to test water heaters in homes to access risk of back-drafting? b. Determine how savings can be estimated when closing a flue if a water heater is removed and replaced with power vent. c. Study and provide recommendations on alternate ways to ensure safety other than replacing the naturally-vented water heater. d. Assess current industry testing methods and alternate tests to determine if they assess safety risks adequately. If / when there is a combustion safety failure, what are the risks to the occupant? What are the resulting carbon monoxide levels over time from the resulting failed unit? What are acceptable levels of carbon monoxide? e. Summarize how other energy efficiency programs address this issue. 2. Electrically Efficient Well Pumps Problem: There are over 800,000 private wells in WI, used by about 25 percent of households. The energy saving potential and measure cost effectiveness of replacing existing well pumps with high efficiency pumps is not known by Focus. 7

8 Potential research items: Proposers should propose a potential study on this measure. a. Determine if high efficiency pumps are available and applicable for Wisconsin residential applications. The program Implementer would like a summary of the manufacturers, models and efficiency levels of well pumps that are currently available in the marketplace. Who are the typical contractors that install them? Are these installed by electricians or the companies that drill the wells? b. Determine baseline operation time and energy use by existing residential well pumps. A sampling or wide range of residential households should be included in the study. c. Estimate potential energy savings and measure cost-effectiveness for customers and Focus, including the incremental cost of high efficiency models. d. What is the EUL of this measure? e. Could this measure also be used for non-residential measures? 3. Ductless/ Mini-Split Heat Pumps Problem: Ductless and Mini-split Heat pumps offer a high efficiency heating and cooling system that can save significant energy over electric resistance heat and window air conditioners in residential and commercial buildings. It is not known by Focus if systems installed in Wisconsin homes and commercial buildings are presently replacing inefficient systems or simply adding load. Potential research items: a. Determine the percentage of systems presently installed in Wisconsin homes and commercial buildings that replaced inefficient heating and/or cooling systems. b. Propose methods to identify and target homes with electric heat and/or homes presently using window air conditioners. c. Propose methods to identify and target commercial buildings using window air conditioners d. Determine if savings is truly reflective of HSPF and SEER rating or if WI climate inhibits operation or reduces overall efficiency e. Determine savings potential over multiple project types (Residential, Multi Family, large commercial) 8

9 4. Analysis of Advantages and Disadvantages of Sub-metering at facilities in the Large Energy Users Program Problem: Sub-metering and the subsequent customer response have shown to be an effective way to harvest marginal energy savings, even after energy efficient technologies have been installed. The savings depend upon how much current operations of existing equipment can actually be affected by controls. Many Focus customers have already completed major energy efficiency projects and are seeking ways to not only increase their savings but to hard-wire operations and behaviors that will enable long-term benefits. Large Energy User Program customers include industrial facilities, healthcare and some large universities and school districts. Potential research items: a. Under what circumstances is sub-metering for energy efficiency monitoring and control most useful? b. What are the benefits/costs of permanent sub-metering? c. How does having sub-metering, including a real-time dashboard showing energy usage associated with equipment run-times, help the customer adjust operations and behavior to save additional energy? d. What is the lifetime of the energy savings? e. What amount of hard-wiring may be necessary to ensure persistence? f. What physical features and/or customer acceptance characteristics must be present to minimize Program risk in supporting a sub-metering incentive? g. What are the most appropriate technologies available to customers that enable effective sub-metering, data collection, dashboards, KPI tracking, etc.? 5. Value of a Natural Gas Leak Survey Incentive for the Large Energy Users Program Problem: It is unknown if valid and reliable energy saving are available to Focus for offering incentives for leak surveys at facilities that use large amounts of natural gas in their processes, based on results from a Gas Leak Quantification and Detection Survey completed for Ardagh Group (formerly St. Gobain Container). This study showed leakage of about two percent of total natural gas usage. Metal casters, heat treaters, and glass manufacturers may be good candidates for this type of study. There are about 90 metal casters and heat treaters served by Large Energy Users Program. 9

10 The value of the survey and customer willingness to cost-share is unknown. The survey is performed with an ultrasonic leak detector similar to those used in compressed air leak detection. The survey and report may cost between $9,000 and $10,000. Customers may be difficult to convince due to the cost and that high ventilation levels and competing indicators (hissing from compressed air leaks, etc.) may make it difficult for the customer to detect leaks on their own. Potential research items: a. What are the benefits/costs of offering a Natural Gas Leak Survey incentive to the customer and the Focus program? b. What is the market potential and which facilities should be targeted for a survey? c. What is a realistic potential for natural gas savings? d. What is an appropriate lifetime of the savings? MEDIUM PRIORITY RESEARCH TOPICS 6. Residential Heat Pump Water Heaters Problem: The energy savings potential and market potential for residential heat pump water heaters as a replacement for electric water heaters is unknown by Focus. Potential research items: a. Develop prescriptive savings measure (accounting for effects of dehumidification on home, reduced AC runtime/increased furnace runtime in winter) b. Provide a summary of the existing distribution channels for this technology. c. Determine potential for adoption in WI households and businesses. d. Develop incremental cost estimate e. Determine net to gross of delivery models (upstream retail, contractor-installed, downstream retail) f. Develop criteria for Qualified Product List g. Determine potential of increased floor space requirements of larger tanks (more manufacturer s insulation) restricting installation. 10

11 Comment: This measure would be most applicable to tanks 55 gallons and under when new minimum EF standards require a EF for electric tanks larger than 55 gallons. 7. Targeting Early Replacement of Low-efficiency (85% or less) Residential Furnaces Problem: The Focus on Energy baseline for residential furnaces is now a 92 percent efficiency furnace. This makes it less cost effective for Focus to offer incentives for new residential furnaces. It is unknown if there is a large enough number of homes with low-efficiency residential furnaces that could be cost-effectively targeted. Potential research items: a. Estimate of the number and types of low-efficiency furnaces that are currently in use in WI. Need market information to determine if there are still enough units in use to justify the creation of a new program / measure. b. Are there certain demographics or geographic areas of the state where these units are more likely to be found? c. What are the barriers associated with replacing these units with more efficient NG furnaces? Why haven t they been replaced? d. What program implementation tactics could overcome identified barriers? e. What are the estimated installation costs associated with the different categories of low-efficiency residential furnaces? f. How would a deemed savings model associated with the early replacement of these units be designed? Need to be able to claim the full savings associated with replacement of the existing unit and replacing it with a 95% (or higher) AFUE furnace. g. What level of incentive is needed to make Trade Allies and customers take action? h. Provide a summary of other energy efficiency programs early replacement offerings LOW TO MEDIUM PRIORITY RESEARCH TOPICS 8. Identifying Houses with Vermiculite Insulation 11

12 Problem: Focus does not have data on the number and types of houses with vermiculite insulation, which are not eligible to participate in Home Performance or the Residential Rewards Attic insulation. These homes must remove the existing vermiculite before they can participate in the Focus on Energy programs so that if a blower door test is done, the risk disturbing the vermiculite and introducing dust and particles into the living quarters is eliminated. Potential Research items: a. Estimate the number of houses in WI that have vermiculite insulation. b. Estimate the average costs for removal. c. Gather data on geographic areas in WI that have a high percentage of vermiculite. d. What are the common home characteristics for houses that have this type of insulation? e. Are there any industry / federal funding sources for customers to access to help offset remediation costs? 12

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