COMMENTS ENERGY-EFFICIENCY AND DSM RULES FOR PENNSYLVANIA’S ALTERNATIVE ENERGY PORTFOLIO STANDARD SUBMITTED BY CITIZENS FOR PENNSYLVANIA’S FUTURE (PennFuture) April 1, 2005 PENNFUTURE’S COMMENTS ON ENERGY-EFFICIENCY AND DSM RULES FOR PENNSYLVANIA’S ALTERNATIVE ENERGY PORTFOLIO STANDARD Introduction and overview Citizens for Pennsylvania’s Future (“PennFuture”) submits these comments on rules for implementing the energy-efficiency provisions of the Commonwealth’s Alternative Energy Portfolio Standard (“AEPS”). First we present a set of objectives and principles to guide rules for qualifying and counting energy-efficiency credits. Then we propose a conceptual framework for establishing and implementing the energy-efficiency rules. Next we recommend specific categories of efficiency technologies that would qualify under the rules. We provide a draft Technical Reference Manual to codify the energyefficiency rules in an appendix. In addition to a skeletal format for the entire TRM, the appendix contains specific quantitative rules for a subset of all the qualifying technologies we recommend, along with sample calculations. We address rules for loadshifting and other load management and demand-response technologies separately. Finally, we address Staff’s questions regarding tracking efficiency credits. Objectives and principles PennFuture recommends that the DSM rules seek to achieve the following objectives: Achieve significant energy savings, since efficiency is the cleanest and cheapest available resource. Maximize the dollar value of economic benefits to the Commonwealth. Reduce pollutant emissions. Provide for an equitable distribution of benefits across customer classes Accordingly, we further recommend that the efficiency rules be designed according to the following principles: Only qualify efficiency that is greater than common practice in the marketplace. Stimulate lasting changes in market behavior. Be easily understood and straightforward to implement at low transaction costs. Capture untapped efficiency potential. .Provide an opportunity for residential, commercial and industrial customers to benefit directly Conceptual approach Based on the forgoing objectives and principles, PennFuture recommends the following conceptual approach to efficiency rulemaking under the AEPS. The efficiency rules should be designed to target efficiency technologies newly installed in Pennsylvania in 2 key end uses and markets in all major customer sectors. The highest priority should be for high-value, low-cost “lost-opportunity” savings potential in new construction, end-of-life equipment turnover and new purchases. These market applications offer some of the most cost-effective and durable efficiency savings potential. To minimize administration and transaction costs, we recommend minimum-size savings blocks of 500 MWh per year. PennFuture recommends that the rules qualify and track savings based on typical minimum efficiency requirements and savings protocols used in nearby jurisdictions with aggressive and successful electric DSM programs. Minimum requirements should be set high enough above common or “baseline” market practice to ensure that real savings materialize beyond what would have transpired in the marketplace, but not so high that they unduly restrict actual savings. We recommend New Jersey as the primary source for these protocols, since its utilities have been implementing advanced DSM programs in key “lost-opportunity” markets that we recommend the rules cover in Pennsylvania. Where appropriate, we recommend that New Jersey protocols be supplemented with those from initiatives elsewhere in the region (such as those in New York and the Northeast Energy Efficiency Partnerships).1 The rules should be tailored for Pennsylvania to reflect expectations regarding the Commonwealth’s market conditions (e.g., hours of use), its building efficiency code, as well as federal equipment standards. The rules should consist of “deemed” savings requirements and protocols to count savings in targeted end uses and markets. Rules should include measure life-expectancy and free-ridership rates (to account for savings that would have occurred absent the AEPS). Savings depreciation would be reflected in measure-life assumptions built into the rules. These deemed savings rules should be based on prior analysis, evaluation, and field experience. The Commission should codify and issue the rules in the form of a Technical Reference Manual (TRM). PennFuture recommends that the rules be adopted in at least two stages. For the first phase, the rules should apply only to those technologies that are easy to calculate, simple to administer and simple for people in the market to adopt. Once this system is in place, the next phase can allow custom measures which involve calculations that are not so easy to prescribe, as well as possible expansion to the initial list. Accordingly, PennFuture recommends that rules in this first stage cover the limited set of efficiency technologies defined below and partially contained in the draft TRM appendix. This more limited set of rules allows Pennsylvania to gain experience with the system without overburdening it. In future stages, the Commission should update and consider expanding this initial set of rules. The Commission should update the TRM rules biennially to reflect changes in market conditions such as baseline equipment efficiencies and minimum efficiency requirements. The next stage of rulemaking could include customized commercial or industrial projects, which would require an engineering study New Jersey’s savings protocols are posted at http://www.bpu.state.nj.us/wwwroot/cleanEnergy/EO04080894_20041223.pdf 1 3 and/or a monitoring and verification protocol to validate claimed savings. The costs of such additional analysis could be borne by the project proponent by requiring a filing fee. Qualifying efficiency technologies The following is a list of technologies recommended for the first phase of the AEPS rules. The appendix to this document contains a partial set of specific quantitive rules for calculating credits for each category, along with sample savings calculations for specific technology efficiency levels. Residential efficiency technologies The AEPS rules would cover three categories of “lost opportunity” residential efficiency: central air-conditioners; compact fluorescent lamps and fixtures; and Energy Star appliances. Central AC Compact fluorescent lamps and fixtures Energy Star Appliances Clothes Washers Energy Star Refrigerators Energy Star Dish Washers Commercial/Industrial efficiency technologies The AEPS rules should cover nonresidential heating, cooling, ventilation and airconditioning (HVAC); lighting; and motors. Below we list the recommended types and size ranges for the efficiency rules for each category. HVAC 1) Unitary/split systems a) capacity < 5.4 tons b) 5.4 tons < capacity < 11.25 tons c) 11.25 tons < capacity < 20 tons d) 20 tons < capacity < 30 tons 2) Air-to-air heat pump systems a) capacity < 5.4 tons b) 5.4 tons < capacity < 11.25 tons c) 11.25 tons < capacity < 20 tons d) 20 tons < capacity < 30 tons 3) Water-source heat pumps <= 30 tons 4 4) Chillers a) Air Cooled Chillers <=150 tons b) Air Cooled Chillers >150 tons to <300 tons c) Water Cooled Chillers >=30 tons to <70 tons d) Water Cooled Chillers >=70 tons to <150 tons e) Water Cooled Centrifugal Chillers >=150 tons to < 300 tons f) Water Cooled Screw Chillers >=150 tons to < 300 tons g) Water Cooled Chillers >=300 tons to <=1000 tons Lighting 1) New construction: Lighting Power Density at least 20% less than code 2) Existing buildings: Super-T8 technology a) 4-lamp fixtures b) 3-lamp fixtures c) 2-lamp fixtures d) 1-lamp fixtures Motors (Three phase induction, 1-200 HP) 1) Totally-enclosed fan-cooled (TEFC) a) 1200 RPM b) 1800 RPM c) 3600 RPM 2) Open drip-proof (ODP) a) 1200 RPM b) 1800 RPM c) 3600 RPM Load shifting and demand response DSM from load shifting and demand response needs to be measured in the kWh shifted from the pre-defined peak period to the off-peak period. Only a net savings of kWh will likely provide environmental benefits. There needs to be a determination in advance of the environmental benefits or costs of kWh shifts from peak to off-peak periods. PennFuture recommends that the Commission establish marginal emission factors for each period using long-range production simulation for PJM. On the basis of this analysis, the rules should assign fractional credit to each kWh shifted based on the ratio of emission factors in the off-peak period to emission factors in the on-peak period. Project proponents could then determine the net emissions impacts caused from shifting from one period to another. Environmental savings could be negative if the shift is from gas-fired combined cycle on-peak to coalbased generation off-peak. 5 Answers to Staff questions Tracking: 1. Please define, describe, and give examples of the various categories of energy efficiency, such as core measures, metered measures, and custom measures. Since the core energy efficiency measures apply to all customer classes, then various energy savings and peak demand reduction applications will exist. For example, residential applications may consist of appliance rebates, commercial applications may consist of lighting controls, and industrial applications may be some form of rates. Please provide a suggested list of core efficiency measures for each customer class. Answer: PennFuture’s recommended approach contains eligible measures for each customer class. We recommend counting kWh of electric energy only. No rebates or rate adjustments are contemplated to encourage qualifying technologies. 2. Please define cost-effective energy efficiency programs. Does it include avoided electricity generation costs? Answer: All the recommended qualifying technologies have been found to be costeffective in neighboring jurisdictions (e.g., New Jersey), based primarily on avoided generation costs (but also including avoided transmission and distribution capacity costs). PennFuture expects that the same would be true in Pennsylvania. 3. Should and how can avoided consumption be measured associated with the implementation of energy efficiency programs? For example, if a small business implements energy efficiency programs, and subsequently expands its business, then how is the avoided consumption measured? Answer: PennFuture’s recommended rules allow calculation of consumption changes based on adoption of a select group of energy-efficiency technologies. Applicants would have to calculate savings ex-ante; no ex-post adjustments would be allowed. 4. The Energy Star Program sponsored by DOE was discussed as a possible standard for appliances and application energy efficiency protocol. How can this standard be used for our purposes? Answer: The Energy Star performance standards would be applicable to new appliances and high-efficiency lighting. 5. How can energy efficiency programs provide equal opportunity for participation by all customer classes and to be neutral with regard to energy source? Answer: This can be done by adopting rules for a set of technologies with applicability across residential, commercial, and industrial classes, as recommended by PennFuture’s comments. 6 Evaluation: 6. Can other states’ evaluation methodologies be utilized? If so, what states should be considered? What areas of these state evaluation standards need modification in order to fit Pennsylvania’s needs? Please explain the modifications. Answer: Yes. Primarily New Jersey and New York. It may be possible to adopt existing protocols, only changing them to update market conditions. 7. How should depreciation be incorporated into the net energy savings evaluation? Answer: PennFuture recommends that depreciation be captured via measure-life assumptions. 8. Will any of the evaluation techniques require sampling? If so, what is the acceptable confidence interval and sampling error? Answer: No. 9. What should be the form of the final net energy savings document that the Commission drafts? Should it be a manual or evaluation guidelines? Please describe the pros/cons of each approach. For example, would general net savings evaluation guidelines serve the same purpose as a manual but provide greater flexibility than a manual? Also, if you support a manual, then how detailed should it be – i.e. should every type of savings measure be listed and a protocol for each drafted? Answer: Evaluation guidelines would indeed provide more flexibility but would be much more burdensome and costly to administer and implement in the marketplace. We recommend a manual covering savings from every type of qualifying efficiency technology. 7 APPENDIX TO COMMENTS ENERGY-EFFICIENCY AND DSM RULES FOR PENNSYLVANIA’S ALTERNATIVE ENERGY PORTFOLIO STANDARD TECHNICAL REFERENCE MANUAL April 1, 2005 8 EXAMPLE SAVINGS CALCULATIONS RESIDENTIAL TECHNOLOGIES Central Air Conditioner Current typical central air-conditioner (CAC) market Federal standard as of January 1, 2006 (EPAct) (baseline) Recommended threshold for credit – ENERGY STAR Estimated savings credit for a SEER 15 installation Estimated savings credit per CAC if SEER 14 plus documented proper sizing, charge, flow through Manual J and site measurements1 Estimated incremental cost of upgrade from SEER 13 to SEER 152 Estimated incremental cost of correct sizing, charge and air flow2 Recommended change in usage calculation1 SEER 11 SEER 13 SEER 14 250 kWh 510 kWh $122 $244 kWh = ((tons 12,000)/1000) (1/SEERbas - 1/SEEReffi) ) FLH (300*SEER 13) / (SEER for efficient unit) Recommended credit for proper sizing, charge and air flow1 0% 3 Free-rider rate 18 years Measure life3 [1] Based on reduction from 3 tons to 2.5 tons, and reduction from 750 load hours to 600 load hours [2] Based on the LIPA Cool Homes Program. [3] from Efficiency Vermont Technical Reference Manual Compact Fluorescent Lamps Baseline wattage purchased1 Assumed wattage replaced2 Assumed avg hrs/day use3 Estimated annual kWh savings credit Estimated incremental cost of upgrade Recommended savings calculation 15 60 3.2 52.5 $7.50 kWh = (Wattsbas Wattseffi)/ (1000 HOURS) 6% 6 years 20 75 3.2 64.2 $9.00 kWh = (Wattsbas Wattseffi)/ (1000 HOURS) 6% 6 years 25 75 3.2 58.4 $10.00 kWh = (Wattsbas Wattseffi)/ (1000 HOURS) 6% 6 years 30 100 3.2 81.7 $12.50 kWh = (Wattsbas Wattseffi)/ (1000 HOURS) 6% 6 years Free-rider rate3 Measure life4 [1] Based on typical CFL wattages [2] Based on typical lumen equivalent substitutions [3] from light logger study update to Impact Evaluation of the Massachusetts, Rhode Island, and Vermont 2003 Residential Lighting Programs by Nexus Market Research, Inc. and RLW Analytics, Inc., October 1, 2004 [4] based on presumed 6,000 hour lamp life although many lamps have a rated 10,000 hour life 9 Compact Fluorescent Fixtures Baseline wattage purchased1 Assumed wattage replaced2 Assumed avg hrs/day use3 Estimated annual kWh savings credit Estimated incremental cost of upgrade Recommended savings calculation 15 60 2.0 32.8 $35 kWh = (Wattsbas Wattseffi)/ (1000 HOURS) 6% 20 years 20 75 2.0 40.1 $35 kWh = (Wattsbas Wattseffi)/ (1000 HOURS) 6% 20 years 25 75 2.0 36.5 $35 kWh = (Wattsbas Wattseffi)/ (1000 HOURS) 6% 20 years 30 100 2.0 51.1 $35 kWh = (Wattsbas Wattseffi)/ (1000 HOURS) 6% 20 years Free-rider rate3 Measure life4 [1] Based on typical CFL wattages [2] Based on typical lumen equivalent substitutions [3] from light logger study update to Impact Evaluation of the Massachusetts, Rhode Island, and Vermont 2003 Residential Lighting Programs by Nexus Market Research, Inc. and RLW Analytics, Inc., October 1, 2004 [4] based on presumed 40,000 hour ballast life adjusted for replacements due to remodeling, etc. Energy Star Clothes Washers Baseline1 Recommended threshold for credit – ENERGY STAR2 Estimated savings credit3 Estimated incremental cost of upgrade4 Recommended change in usage calculation5 MEF 1.14 MEF 1.73 329 kWh $270 kWh = ((volume./MEFbas) x 379) ((volume./MEFeffi) x 379) 5% 14 Free-rider rate4 Measure life4 [1] Minimum 1.04 MEF adjusted for average sales MEF [2] Minimum 1.42 ENERGY STAR MEF adjusted for average ENERGY STAR MEF [3] Includes estimated weighted average electric water heating and dryer savings [4] From Efficiency Vermont Technical Reference Manual [5] Weighted average volume calculated to be 2.9 cu.ft. from AHAM data; weighted average 379 cycles per year from December 2000 DOE Technical Support Document for Clothes Washers Energy Star Refrigerators Baseline1 Recommended threshold for credit – ENERGY STAR2 Estimated savings credit Estimated incremental cost of upgrade3 Recommended change in usage calculation4 Free-rider rate3 Measure life3 [1] value varies based on adjusted volume [2] 15% higher efficiency than minimum federal standard [3] From Efficiency Vermont Technical Reference Manual [4] assumed typical 5,000 operating hours per year 10 Minimum federal standard ENERGY STAR standard 85.5 kWh $30 kWh = (Wattsbas - Wattseffi)/ (1000 HOURS) 33% 17 Energy Star Dish Washer Baseline1 Recommended threshold for credit – ENERGY STAR2 Estimated savings credit Estimated incremental cost of upgrade3 Recommended change in usage calculation4 Minimum federal standard ENERGY STAR standard 68.6 kWh $27 kWh = (113.3 x electric water heating frequency) 0% 13 Free-rider rate3 Measure life3 [1] 0.46 energy factor [2] 0.58 energy factor [3] From Efficiency Vermont Technical Reference Manual [4] assumes typical 264 cycles per year, 0.5 gal reduced water consumption per cycle and 43.6% electric water heating frequency as cited in Efficiency Vermont Technical Reference Manual Energy Star Homes Baseline Recommended threshold for credit Estimated savings credit Estimated incremental cost of upgrade Recommended change in usage calculation1 Free-rider rate Measure life kWh $ kWh = Note: Energy Star Homes has been replaced by Energy Star Appliances. The ratings for Energy Star Homes focus on fossil fuel savings more than electrical savings, so that there is not direct correlation between a better rating and electrical consumption. With the addition of the appliances, along with the central air conditioning and CFL lighting, the majority of a new home’s electrical usage is addressed. 11 COMMERCIAL AND INDUSTRIAL TECHNOLOGIES <5.4 Ton Unitary/Split HVAC Systems (5 ton example) Current typical unitary HVAC market Federal standard as of January 1, 2006 (EPAct) (baseline) Recommended threshold for credit (CoolChoice) Estimated savings credit per Unitary HVAC if install SEER 13 Estimated incremental cost of upgrade from EPAct (SEER 12) to CoolChoice (SEER 13)1 Recommended change in usage calculation2 Free-rider rate SEER 11 SEER 12 SEER 13 385 kWh $115/ton kWh = ((tons 12,000)/1000) (1/SEERbas - 1/SEEReffi ) FLH 5% Measure life 15 years [1] Based on CoolChoice Program costs = 80% of incremental cost [2] Based on 1000 annual full load operating hours (FLH), from Optimal Energy ≥5.4 to <11.25 Ton Unitary/Split HVAC Systems (10 ton example) Baseline (Penn. Code, IECC 2003) EER 10.1 Recommended threshold for credit (CoolChoice) EER 11 Estimated savings credit per Unitary HVAC if install EER 972 kWh 11 Estimated incremental cost of upgrade from EPAct (EER $91/ton 1 10.1) to CoolChoice (EER 11) kWh = ((tons 12,000)/1000) (1/EERbas Recommended change in usage calculation2 - 1/EEReffi ) FLH Free-rider rate 5% Measure life 15 years [1] Based on CoolChoice Program costs = 80% of incremental cost [2] Based on 1000 annual full load operating hours (FLH), from Optimal Energy ≥11.25 to <20 Ton Unitary/Split HVAC Systems (15 ton example) Baseline (Penn. Code, IECC 2003) EER 9.3 Recommended threshold for credit (CoolChoice) EER 10.8 Estimated savings credit per Unitary HVAC if install EER 2,688 kWh 11 Estimated incremental cost of upgrade from (EER 9.3) to $99/ton CoolChoice (EER 10.8)1 kWh = ((tons 12,000)/1000) (1/EERbas Recommended change in usage calculation2 - 1/EEReffi ) FLH Free-rider rate 5% Measure life 15 years [1] Based on CoolChoice Program costs = 80% of incremental cost [2] Based on 1000 annual full load operating hours (FLH), from Optimal Energy 12 ≥20 to <30 Ton Unitary/Split HVAC Systems (25 ton example) Baseline (Penn. Code, IECC 2003) EER 9.0 Recommended threshold for credit (CoolChoice) EER 10.0 Estimated savings credit per Unitary HVAC if install EER 3,333 kWh 10 Estimated incremental cost of upgrade from (EER 9.0) to $99/ton CoolChoice (EER 10.0)1 kWh = ((tons 12,000)/1000) (1/EERbas Recommended change in usage calculation2 - 1/EEReffi ) FLH Free-rider rate 5% Measure life 15 years [1] Based on CoolChoice Program costs = 80% of incremental cost [2] Based on 1000 annual full load operating hours (FLH), from Optimal Energy <5.4 Ton Air-to-Air Heat Pump Systems (5 ton example) Current typical unitary HVAC market Federal standard as of January 1, 2006 (EPAct) (baseline) Recommended threshold for credit (CoolChoice) Estimated savings credit per Unitary HVAC if install SEER 13 Estimated incremental cost of upgrade from EPAct (SEER 12) to CoolChoice (SEER 13)1 Recommended change in usage calculation2 Free-rider rate Measure life SEER 11 SEER 12 HSPF 6.8 SEER 13 HSPF 7.8 385 kWh cooling 1,821 kWh heating $115/ton kWhcool = ((tons 12,000)/1000) (1/SEERbas - 1/SEEReffi ) FLHcool kWhheat = ((tons 12,000)/1000) (1/HSPFbas - 1/HSPFeffi ) FLHheat 5% 15 years [1] Based on CoolChoice Program costs = 80% of incremental cost [2] Based on 1000 annual cooling full load operating hours (FLH) and 1610 heating FLH, from Optimal Energy ≥5.4 to <11.25 Ton Air-to-Air Heat Pump Systems Baseline (Penn. Code, IECC 2003) Recommended threshold for credit (CoolChoice) Estimated savings credit per Unitary HVAC if install EER 11 Estimated incremental cost of upgrade from EPAct (EER 10.1) to CoolChoice (EER 11)1 Recommended change in usage calculation2 (10 ton example) EER 10.1 EER 11 972 kWh cooling 1,137 kWh heating $91/ton kWhcool = ((tons 12,000)/1000) (1/EERbas - 1/EEReffi ) FLHcool kWhheat = ((tons 12,000)/1000) (1/EERbas - 1/EEReffi ) FLHheat Free-rider rate 5% Measure life 15 years [1] Based on CoolChoice Program costs = 80% of incremental cost [2] Based on 1000 annual cooling full load operating hours (FLH) and 1170 heating FLH, from Optimal Energy 13 ≥11.25 to <20 Ton Air-to-Air Heat Pump Systems Baseline (Penn. Code, IECC 2003) Recommended threshold for credit (CoolChoice) Estimated savings credit per Unitary HVAC if install EER 11 Estimated incremental cost of upgrade from (EER 9.3) to CoolChoice (EER 10.8)1 Recommended change in usage calculation2 (15 ton example) EER 9.3 EER 10.8 2,688 kWh cooling 3,145 kWh heating $99/ton kWhcool = ((tons 12,000)/1000) (1/EERbas - 1/EEReffi ) FLHcool kWhheat = ((tons 12,000)/1000) (1/EERbas - 1/EEReffi ) FLHheat Free-rider rate 5% Measure life 15 years [1] Based on CoolChoice Program costs = 80% of incremental cost [2] Based on 1000 annual cooling full load operating hours (FLH) and 1170 heating FLH, from Optimal Energy ≥20 to <30 Ton Air-to-Air Heat Pump Systems Baseline (Penn. Code, IECC 2003) Recommended threshold for credit (CoolChoice) Estimated savings credit per Unitary HVAC if install EER 10 Estimated incremental cost of upgrade from (EER 9.0) to CoolChoice (EER 10.0)1 Recommended change in usage calculation2 (25 ton example) EER 9.0 EER 10.0 3,333 kWh cooling 3,900 kWh heating $99/ton kWhcool = ((tons 12,000)/1000) (1/EERbas - 1/EEReffi ) FLHcool kWhheat = ((tons 12,000)/1000) (1/EERbas - 1/EEReffi ) FLHheat Free-rider rate 5% Measure life 15 years [1] Based on CoolChoice Program costs = 80% of incremental cost [2] Based on 1000 annual cooling full load operating hours (FLH) and 1170 heating FLH, from Optimal Energy ≤30 Ton Water Source Heat Pumps (10 ton example) Baseline (Penn. Code, IECC 2003) Recommended threshold for credit (CoolChoice) Estimated savings credit per Unitary HVAC if install EER Estimated incremental cost of upgrade from (EER 12.0) to CoolChoice (EER 14.0)1 Recommended change in usage calculation2 EER 12.0 EER 14.0 2,857 kWh cooling 4,700 kWh heating $101/ton kWhcool = ((tons 12,000)/1000) (1/EERbas - 1/EEReffi ) FLHcool kWhheat = ((tons 12,000)/1000) (1/EERbas - 1/EEReffi ) FLHheat Free-rider rate 5% Measure life 15 years [1] Based on CoolChoice Program costs = 80% of incremental cost [2] Based on 1000 annual cooling full load operating hours (FLH) and 1645 heating FLH, from Optimal Energy 14 ≤150 Ton Air Cooled Chiller (100 ton example) Baseline (Penn. Code, IECC 2003) 9.6 EER Recommended threshold for credit 10.2 EER Estimated savings credit per chiller for 10.2 EER 8,824 kWh Estimated incremental cost of upgrade $40/ton 2 kWh = ((tons 12,000)/1000) (1/EERbas Recommended change in usage calculation - 1/EEReffi ) FLH Free-rider rate 5% Measure life 25 years [1] Optimal Energy estimate from proprietary data [2] Based on 1200 annual full load operating hours (FLH), from Optimal Energy >150 to <300 Ton Air Cooled Chiller (200 ton Baseline (Penn. Code, IECC 2003) Recommended threshold for credit Estimated savings credit per chiller for 10.2 EER Estimated incremental cost of upgrade Recommended change in usage calculation2 example) 8.5 EER 10.2 EER 55,180 kWh $27/ton kWh = ((tons 12,000)/1000) (1/EERbas - 1/EEReffi ) FLH 5% 25 years Free-rider rate Measure life [1] Optimal Energy estimate from proprietary data [2] Based on 1200 annual full load operating hours (FLH), from Optimal Energy >30 to <70 Ton Water Cooled Chiller (50 Baseline (Penn. Code, IECC 2003) Recommended threshold for credit Estimated savings credit per chiller for 0.75 kW/ton Estimated incremental cost of upgrade Recommended change in usage calculation2 ton example) 0.79 peak kW/ton 0.75 peak kW/ton 2,407 kWh $33/ton kWh = (tons (kW/tonbas – kW/toneffi) FLH 5% 25 years Free-rider rate Measure life [1] Optimal Energy estimate from proprietary data [2] Based on 1200 annual full load operating hours (FLH), from Optimal Energy >70 to <150 Ton Water Cooled Positive Displacement Chiller (100 ton example) Baseline (Penn. Code, IECC 2003) 0.84 peak kW/ton Recommended threshold for credit 0.74 peak kW/ton Estimated savings credit per chiller for 0.74 kW/ton 11,657 kWh Estimated incremental cost of upgrade $33/ton kWh = ((tons (kW/tonbas – kW/toneffi) Recommended change in usage calculation2 FLH Free-rider rate 5% Measure life 25 years [1] Optimal Energy estimate from proprietary data [2] Based on 1200 annual full load operating hours (FLH), from Optimal Energy 15 >70 to <150 Ton Water Cooled Centrifugal Baseline (Penn. Code, IECC 2003) Recommended threshold for credit Estimated savings credit per chiller for 0.65 kW/ton Estimated incremental cost of upgrade Recommended change in usage calculation2 Chiller (100 ton example) 0.70 peak kW/ton 0.65 peak kW/ton 6,384 kWh $33/ton kWh = ((tons (kW/tonbas – kW/toneffi) FLH 5% 25 years Free-rider rate Measure life [1] Optimal Energy estimate from proprietary data [2] Based on 1200 annual full load operating hours (FLH), from Optimal Energy >150 to <300 Ton Water Cooled Centrifugal Baseline (Penn. Code, IECC 2003) Recommended threshold for credit Estimated savings credit per chiller for 0.51 kW/ton Estimated incremental cost of upgrade Recommended change in usage calculation2 Chiller (200 ton example) 0.63 IPLV kW/ton 0.51 IPLV kW/ton 29,643 kWh $27/ton kWh = ((tons (kW/tonbas – kW/toneffi) FLH 5% 25 years Free-rider rate Measure life [1] Optimal Energy estimate from proprietary data [2] Based on 1200 annual full load operating hours (FLH), from Optimal Energy >150 to <300 Ton Water Cooled Screw Chiller Baseline (Penn. Code, IECC 2003) Recommended threshold for credit Estimated savings credit per chiller for 0.51 kW/ton Estimated incremental cost of upgrade Recommended change in usage calculation2 (200 ton example) 0.71 IPLV kW/ton 0.51 IPLV kW/ton 48,073 kWh $27/ton kWh = ((tons (kW/tonbas – kW/toneffi) FLH 5% 25 years Free-rider rate Measure life [1] Optimal Energy estimate from proprietary data [2] Based on 1200 annual full load operating hours (FLH), from Optimal Energy >300 to ≤1000 Ton Water Cooled Chiller (500 ton example) Baseline (Penn. Code, IECC 2003) 0.58 IPLV kW/ton Recommended threshold for credit 0.51 IPLV kW/ton Estimated savings credit per chiller for 0.51 kW/ton 39,836 kWh Estimated incremental cost of upgrade $8/ton kWh = ((tons (kW/tonbas – kW/toneffi) Recommended change in usage calculation2 FLH Free-rider rate 5% Measure life 25 years [1] Optimal Energy estimate from proprietary data [2] Based on 1200 annual full load operating hours (FLH), from Optimal Energy 16 Motor 1200 RPM, Open Drip Proof (ODP), (1 HP example) Current typical motor market Federal standard as of January 1, 2006 (EPAct) (baseline)1 Recommended threshold for credit Estimated savings credit per motor if install MotorUp minimum Estimated incremental cost of upgrade from EPAct (80.0%) to MotorUp (82.5%)2 Recommended change in usage calculation3 80.0% 80.0% 82.5% 95 kWh $69 kWh = (kWbase – kWeffic) HOURS kW = HP 0.746 (1/efficiency) LF Free-rider rate 10% Measure life 15 years [1] See the tables by motor type, speed and HP of baseline efficiencies, minimum qualifying efficiencies, and incremental costs that follow these examples. [2] Based on MotorUp Program incentive costs = 65% of incremental cost [3] Based on 4,500 annual operating hours; LF = default load factor of 0.75, from Efficiency Vermont 2004 Technical Reference Manual Motor 1800 RPM, Open Drip Proof (ODP), (10 HP example) Current typical motor market Federal standard as of January 1, 2006 (EPAct) (baseline)1 Recommended threshold for credit Estimated savings credit per motor if install MotorUp minimum Estimated incremental cost of upgrade from EPAct (89.5%) to MotorUp (91.7%)2 Recommended change in usage calculation3 89.5% 89.5% 91.7% 675 kWh $138 kWh = (kWbase – kWeffic) HOURS kW = HP 0.746 (1/efficiency) LF Free-rider rate 10% Measure life 15 years [1] See the tables by motor type, speed and HP of baseline efficiencies, minimum qualifying efficiencies, and incremental costs that follow these examples. [2] Based on MotorUp Program incentive costs = 65% of incremental cost [3] Based on 4,500 annual operating hours; LF = default load factor of 0.75, from Efficiency Vermont 2004 Technical Reference Manual 17 Motor 3600 RPM, Open Drip Proof (ODP), (100 HP example) Current typical motor market Federal standard as of January 1, 2006 (EPAct) (baseline)1 Recommended threshold for credit Estimated savings credit per motor if install MotorUp minimum Estimated incremental cost of upgrade from EPAct (93.0%) to MotorUp (95.0%)2 Recommended change in usage calculation3 93.0% 93.0% 95.0% 5,699 kWh $554 kWh = (kWbase – kWeffic) HOURS kW = HP 0.746 (1/efficiency) LF Free-rider rate 10% Measure life 15 years [1] See the tables by motor type, speed and HP of baseline efficiencies, minimum qualifying efficiencies, and incremental costs that follow these examples. [2] Based on MotorUp Program incentive costs = 65% of incremental cost [3] Based on 4,500 annual operating hours; LF = default load factor of 0.75, from Efficiency Vermont 2004 Technical Reference Manual Motor 1200 RPM, Totally Enclosed Fan Cooled (TEFC), (1 HP example) Current typical motor market Federal standard as of January 1, 2006 (EPAct) (baseline)1 Recommended threshold for credit Estimated savings credit per motor if install MotorUp minimum Estimated incremental cost of upgrade from EPAct (80.0%) to MotorUp (82.5%)2 Recommended change in usage calculation3 80% 80% 82.5% 95 kWh $77 kWh = (kWbase – kWeffic) HOURS kW = HP 0.746 (1/efficiency) LF Free-rider rate 10% Measure life 15 years [1] See the tables by motor type, speed and HP of baseline efficiencies, minimum qualifying efficiencies, and incremental costs that follow these examples. [2] Based on MotorUp Program incentive costs = 65% of incremental cost [3] Based on 4,500 annual operating hours; LF = default load factor of 0.75, from Efficiency Vermont 2004 Technical Reference Manual 18 Motor 1800 RPM, Totally Enclosed Fan Cooled (TEFC), (10 HP example) Current typical motor market Federal standard as of January 1, 2006 (EPAct) (baseline)1 Recommended threshold for credit Estimated savings credit per motor if install MotorUp minimum Estimated incremental cost of upgrade from EPAct (89.5%) to MotorUp (91.7%)2 Recommended change in usage calculation3 89.5% 89.5% 91.7% 675 kWh $154 kWh = (kWbase – kWeffic) HOURS kW = HP 0.746 (1/efficiency) LF Free-rider rate 10% Measure life 15 years [1] See the tables by motor type, speed and HP of baseline efficiencies, minimum qualifying efficiencies, and incremental costs that follow these examples. [2] Based on MotorUp Program incentive costs = 65% of incremental cost [3] Based on 4,500 annual operating hours; LF = default load factor of 0.75, from Efficiency Vermont 2004 Technical Reference Manual Motor 3600 RPM, Totally Enclosed Fan Cooled (TEFC), (100 HP example) Current typical motor market Federal standard as of January 1, 2006 (EPAct) (baseline)1 Recommended threshold for credit Estimated savings credit per motor if install MotorUp minimum Estimated incremental cost of upgrade from EPAct (93.6%) to MotorUp (95.4%)2 Recommended change in usage calculation3 93.6% 93.6% 95.4% 5,075 kWh $615 kWh = (kWbase – kWeffic) HOURS kW = HP 0.746 (1/efficiency) LF Free-rider rate 10% Measure life 15 years [1] See the tables by motor type, speed and HP of baseline efficiencies, minimum qualifying efficiencies, and incremental costs that follow these examples. [2] Based on MotorUp Program incentive costs = 65% of incremental cost [3] Based on 4,500 annual operating hours; LF = default load factor of 0.75, from Efficiency Vermont 2004 Technical Reference Manual 19 Motor Baseline Efficiencies Table Open Drip Proof (ODP) Speed (RPM) Size HP 1 1.5 2 3 5 7.5 10 15 20 25 30 40 50 60 75 100 125 150 200 Totally Enclosed Fan-Cooled (TEFC) Speed (RPM) 1200 1800 3600 1200 1800 3600 80.0% 84.0% 85.5% 86.5% 87.5% 88.5% 90.2% 90.2% 91.0% 91.7% 92.4% 93.0% 93.0% 93.6% 93.6% 94.1% 94.1% 94.5% 94.5% 82.5% 84.0% 84.0% 86.5% 87.5% 88.5% 89.5% 91.0% 91.0% 91.7% 92.4% 93.0% 93.0% 93.6% 94.1% 94.1% 94.5% 95.0% 95.0% 75.5% 82.5% 84.0% 84.0% 85.5% 87.5% 88.5% 89.5% 90.2% 91.0% 91.0% 91.7% 92.4% 93.0% 93.0% 93.0% 93.6% 93.6% 94.5% 80.0% 85.5% 86.5% 87.5% 87.5% 89.5% 89.5% 90.2% 90.2% 91.7% 91.7% 93.0% 93.0% 93.6% 93.6% 94.1% 94.1% 95.0% 95.0% 82.5% 84.0% 84.0% 87.5% 87.5% 89.5% 89.5% 91.0% 91.0% 92.4% 92.4% 93.0% 93.0% 93.6% 94.1% 94.5% 94.5% 95.0% 95.0% 75.5% 82.5% 84.0% 85.5% 87.5% 88.5% 89.5% 90.2% 90.2% 91.0% 91.0% 91.7% 92.4% 93.0% 93.0% 93.6% 94.5% 94.5% 95.0% 20 Motor Minimum Qualifying Efficiencies Table Open Drip Proof (ODP) Totally Enclosed Fan-Cooled (TEFC) Speed (RPM) Speed (RPM) Size HP 1 1.5 2 3 5 7.5 10 15 20 25 30 40 50 60 75 100 125 150 200 1200 1800 3600 1200 1800 3600 82.5% 86.5% 87.5% 88.5% 89.5% 90.2% 91.7% 91.7% 92.4% 93.0% 93.6% 94.1% 94.1% 94.5% 94.5% 95.0% 95.0% 95.4% 95.4% 85.5 86.5% 86.5% 89.5% 89.5% 91.0% 91.7% 93.0% 93.0% 93.6% 94.1% 94.1% 94.5% 95.0% 95.0% 95.4% 95.4% 95.8% 95.8% 77.0 84.0% 85.5% 88.5% 86.5% 88.5% 89.5% 90.2% 91.0% 91.7% 91.7% 92.4% 93.0% 93.6% 93.6% 93.6% 94.1% 94.1% 95.0% 82.5% 87.5% 88.5% 89.5% 89.5% 91.0% 91.0% 91.7% 91.7% 93.0% 93.0% 94.1% 94.1% 94.5% 95.5% 95.0% 95.0% 95.8% 95.8% 85.5% 86.5% 86.5% 89.5% 89.8% 91.7% 91.7% 92.4% 93.0% 93.6% 93.6% 94.1% 94.5% 95.0% 95.4% 95.4% 95.4% 95.8% 96.2% 77.0% 84.0% 85.5% 86.5% 88.5% 89.5% 90.2% 91.0% 91.0% 91.7% 91.7% 92.4% 93.0% 93.6% 93.6% 94.1% 95.0% 95.0% 95.4% 21 Motor Incremental Cost Table Open DripTotally Enclosed Proof (ODP) Fan-Cooled Size (TEFC) HP Incremental Incremental Cost Cost 1 $69 $77 1.5 $69 $77 2 $83 $92 3 $83 $92 5 $83 $92 7.5 $125 $138 10 $138 $154 15 $160 $177 20 $174 $192 25 $180 $200 30 $208 $231 40 $249 $277 50 $305 $338 60 $360 $400 75 $415 $462 100 $554 $615 125 $831 $923 150 $969 $1,077 200 $1,454 $1,077 22 Commercial Lighting - New Construction 20% Lighting Power Density (LPD) Reduction (20,000 sq. ft. Office Building example) Current typical new construction lighting market LPD – PA Energy Code (baseline) Assumed PA Energy Code upgrade as of April 1, 2007 Recommended threshold for credit 2003 IECC (ASHRAE/IESNA 90.1-2001) 2006 IECC (ASHRAE/IESNA 90.1-2004) Estimated savings credit if installed LPD is 20% less than PA energy code, plus site inspection documents installed LPD Estimated incremental cost of upgrade to achieve LPD 20% < PA Energy Code – 2003 IECC (ASHRAE/IESNA 90.1-2001)1 Recommended change in usage calculation2 $3,200 @ $0.80/sq. ft. per Watts/sq. ft. reduction Lighting Power Density (LPD) 20% < 2003 IECC (ASHRAE/IESNA 90.1-2001) 15,828 kWh (1.0 W/sq. ft. baseline) kWh = ((W/sq. ft.base – W/sq. ft.effic)/1000) HOURS WHF Free-rider rate 2% Measure life 20 years [1] $80/sq. ft. cost from professional judgment and based on review of cost studies. [2] Based on 3,435 annual operating hours, From Efficiency Vermont 2004 Technical Reference Manual (see table of default lighting hours by building type below) WHF = Waste heat factor for energy to account for cooling savings from efficient lighting. For a cooled space, the value is 1.15 (calculated as 1 + 0.38 / 2.5). Based on 0.29 ASHRAE Lighting waste heat cooling factor for Pittsburgh and 2.5 C.O.P. typical cooling system efficiency. For an uncooled space, the value is one. The default for this measure is a cooled space. Factor from “Calculating lighting and HVAC interactions”, Table 1, ASHRAE Journal November 1993. Commercial Lighting - New Construction 20% Lighting Power Density (LPD) Reduction (50,000 sq. ft. Retail example) Current typical new construction lighting market LPD – PA Energy Code (baseline) Assumed PA Energy Code upgrade as of April 1, 2007 Recommended threshold for credit 2003 IECC (ASHRAE/IESNA 90.1-2001) 2006 IECC (ASHRAE/IESNA 90.1-2004) Estimated savings credit if installed LPD is 20% less than PA energy code, plus site inspection documents installed LPD Estimated incremental cost of upgrade to achieve LPD 20% < PA Energy Code – 2003 IECC (ASHRAE/IESNA 90.1-2001)1 Recommended change in usage calculation2 $12,000 @ $0.80/sq. ft. per Watts/sq. ft. reduction Lighting Power Density (LPD) 20% < 2003 IECC (ASHRAE/IESNA 90.1-2001) 52,923 kWh (1.5 W/sq. ft. baseline) kWh = ((W/sq. ft.base – W/sq. ft.effic)/1000) HOURS WHF Free-rider rate 2% Measure life 20 years [1] $80/sq. ft. cost from professional judgment and based on review of cost studies. [2] Based on 3,068 annual operating hours, From Efficiency Vermont 2004 Technical Reference Manual. (see table of default lighting hours by building type below) WHF = Waste heat factor for energy to account for cooling savings from efficient lighting. For a cooled space, the value is 1.15 (calculated as 1 + 0.38 / 2.5). Based on 0.29 ASHRAE Lighting waste heat cooling factor for Pittsburgh and 2.5 C.O.P. typical cooling system efficiency. For an uncooled space, the value is one. The default for this measure is a cooled space. Factor from “Calculating lighting and HVAC interactions”, Table 1, ASHRAE Journal November 1993. 23 Interior Lighting Operating Hours by Building Type Building Type Office Restaurant Retail Grocery/Supermarket Warehouse Elemen./Second. School College Health Hospital Hotel/Motel Manufacturing Annual Hours 3,435 4,156 3,068 4,612 2,388 2,080 5,010 3,392 4,532 2,697 5,913 Source: From Impact Evaluation of Orange & Rockland’s Small Commercial Lighting Program, 1993. Commercial Lighting – Existing Buildings 4-Lamp Fluorescent Lighting Fixture (Office Building example) Current typical existing lighting market (baseline) Federal standard as of January 1, 2006 Recommended threshold for credit Estimated savings credit for installing High Performance (Super) T8 Lamp/Low Power Ballast System Estimated incremental cost of upgrade from Standard T8 System to High Performance (Super) T8 System1 Recommended change in usage calculation2 Standard T8 Lamp/Ballast System Energy Savings T12 (34 Watt) Lamps and Energy Efficient Magnetic Ballast High Performance (Super) T8 Lamp/Low Power Ballast System 79 kWh (per fixture) $28 (per fixture) kWh = ((Wattsbase – Wattseffic)/1000) HOURS WHF Free-rider rate 0% Measure life 15 years [1] From Efficiency Vermont 2004 Technical Reference Manual [2] Based on 3,435 annual operating hours, Efficiency Vermont 2004 Technical Reference Manual. (see table of default lighting hours by building type above) WHF= Waste heat factor for energy to account for cooling savings from efficient lighting. For indoors, the value is 1.15 (calculated as 1 + 0.38 / 2.5). Based on 0.38 ASHRAE Lighting waste heat cooling factor for Pittsburgh and 2.5 C.O.P. typical cooling system efficiency. For outdoors, the value is one. Factor from “Calculating lighting and HVAC interactions”, Table 1, ASHRAE Journal November 1993 24 Commercial Lighting – Existing Buildings 3-Lamp Fluorescent Lighting Fixture (Office Building example) Current typical existing lighting market (baseline) Federal standard as of January 1, 2006 Recommended threshold for credit Estimated savings credit for installing High Performance (Super) T8 Lamp/Low Power Ballast System Estimated incremental cost of upgrade from Standard T8 System to High Performance (Super) T8 System1 Recommended change in usage calculation2 Standard T8 Lamp/Ballast System Energy Savings T12 (34 Watt) Lamps and Energy Efficient Magnetic Ballast High Performance (Super) T8 Lamp/Low Power Ballast System 63 kWh (per fixture) $25 (per fixture) kWh = ((Wattsbase – Wattseffic)/1000) HOURS WHF Free-rider rate 0% Measure life 15 years [1] From Efficiency Vermont 2004 Technical Reference Manual [2] Based on 3,435 annual operating hours, Efficiency Vermont 2004 Technical Reference Manual. (see table of default lighting hours by building type above) WHF= Waste heat factor for energy to account for cooling savings from efficient lighting. For indoors, the value is 1.15 (calculated as 1 + 0.38 / 2.5). Based on 0.38 ASHRAE Lighting waste heat cooling factor for Pittsburgh and 2.5 C.O.P. typical cooling system efficiency. For outdoors, the value is one. Factor from “Calculating lighting and HVAC interactions”, Table 1, ASHRAE Journal November 1993 Commercial Lighting – Existing Buildings 2-Lamp Fluorescent Lighting Fixture (Office Building example) Current typical existing lighting market (baseline) Federal standard as of January 1, 2006 Recommended threshold for credit Estimated savings credit for installing High Performance (Super) T8 Lamp/Low Power Ballast System Estimated incremental cost of upgrade from Standard T8 System to High Performance (Super) T8 System1 Recommended change in usage calculation2 Standard T8 Lamp/Ballast System Energy Savings T12 (34 Watt) Lamps and Energy Efficient Magnetic Ballast High Performance (Super) T8 Lamp/Low Power Ballast System 40 kWh (per fixture) $23 (per fixture) kWh = ((Wattsbase – Wattseffic)/1000) HOURS WHF Free-rider rate 0% Measure life 15 years [1] From Efficiency Vermont 2004 Technical Reference Manual [2] Based on 3,435 annual operating hours, Efficiency Vermont 2004 Technical Reference Manual. (see table of default lighting hours by building type above) WHF= Waste heat factor for energy to account for cooling savings from efficient lighting. For indoors, the value is 1.15 (calculated as 1 + 0.38 / 2.5). Based on 0.38 ASHRAE Lighting waste heat cooling factor for Pittsburgh and 2.5 C.O.P. typical cooling system efficiency. For outdoors, the value is one. Factor from “Calculating lighting and HVAC interactions”, Table 1, ASHRAE Journal November 1993 Note: This is an example of one fixture. Additional examples will be developed for 1, 2, and 3-lamp fixtures. 25 Commercial Lighting – Existing Buildings 1-Lamp Fluorescent Lighting Fixture (Office Building example) Current typical existing lighting market (baseline) Federal standard as of January 1, 2006 Recommended threshold for credit Estimated savings credit for installing High Performance (Super) T8 Lamp/Low Power Ballast System Estimated incremental cost of upgrade from Standard T8 System to High Performance (Super) T8 System1 Recommended change in usage calculation2 Standard T8 Lamp/Ballast System Energy Savings T12 (34 Watt) Lamps and Energy Efficient Magnetic Ballast High Performance (Super) T8 Lamp/Low Power Ballast System 28 kWh (per fixture) $20 (per fixture) kWh = ((Wattsbase – Wattseffic)/1000) HOURS WHF Free-rider rate 0% Measure life 15 years [1] From Efficiency Vermont 2004 Technical Reference Manual [2] Based on 3,435 annual operating hours, Efficiency Vermont 2004 Technical Reference Manual. (see table of default lighting hours by building type above) WHF= Waste heat factor for energy to account for cooling savings from efficient lighting. For indoors, the value is 1.15 (calculated as 1 + 0.38 / 2.5). Based on 0.38 ASHRAE Lighting waste heat cooling factor for Pittsburgh and 2.5 C.O.P. typical cooling system efficiency. For outdoors, the value is one. Factor from “Calculating lighting and HVAC interactions”, Table 1, ASHRAE Journal November 1993 Note: This is an example of one fixture. Additional examples will be developed for 1, 2, and 3-lamp fixtures. 26
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