EnergyConservation by niusheng



MML Conference: October 23, 2008
Presentation By: Joanne Throwe
Environmental Finance Center
Conversions & Terms

      kW: kilowatt

EPC: Energy Performance
  Contracting program

 ESCO: Energy Service

        “Deep” Insight/Inspirational Quote

 “[energy conservation] efforts by municipalities are incredibly
important because cities consume approximately 75 percent of
   the world’s energy and, for the first time in our history, the
         majority of people on the planet live in cities.”

-from “Energy Management and Conservation: Municipal Best
                     Practices” (2007)
   by Sen. Gary Hart (Wirth Chair Professor, Wirth Chair in
Environmental and Community Development Policy University
    of CO) and Sam Mamet (Executive Director, Colorado
                     Municipal League)



1. EmPOWER Maryland

-Governor Martin O’Malley’s initiative to reduce
energy consumption by 15% by 2015

-Consists of 7 steps, including:
Energy Performance Contracting (EPC) program
State Agency Loan Program (SALP)
Jane E. Lawton Conservation Loan Program
require energy efficient buildings

-website has list of estimated savings
    Energy Performance Contracting (EPC)

Summary: agencies hire ESCOs to develop, install, and
finance projects designed to improve the energy efficiency
and maintenance costs for facilities

-an EPC is an agreement between a local government and
an ESCO in which the ESCO identifies and evaluates
energy-saving opportunities and recommends improvements

-the ESCO pays for upfront capital costs
State Agency Loan Program (SALP)

Summary: zero interest revolving loan program for
typical projects that include energy efficient lighting,
controls, heating, ventilation and air conditioning

-loans for cost-effective energy efficiency
improvements in State facilities

-$1 million in new loans are awarded each fiscal year

-zero interest with a 1% administration fee

-repayments are made from the agency's fuel and
utility budget, based on the avoided energy costs of
the project
   Jane E. Lawton Conservation Loan Program (JELLP)

Summary: low interest revolving loans to local governments
and nonprofit organizations to install energy efficient

-applicable sectors: Commercial, Industrial, Nonprofit,
Schools, Local Government, Hospitals

-max amount: $600,000

-terms: average interest rate is around 3%; payback of
seven years or less

-program budget: $1.5 million per fiscal year
         Require Energy Efficient Buildings

  Require all new buildings over 20,000 square feet
              to be more energy efficient

According to the US Green Building
    Council, the average upfront
additional cost of constructing to the
LEED Gold certification standard is
   2.2% and is typically recovered
  through energy savings within 3
2. Maryland Energy Administration (MEA) Incentives


     $0.03/gallon tax credit

     for individuals and corporations that purchase Bio-
     Heating Oil for the purpose of space and water heating

     up to $500

     list of distributors:

-up to $1,000 for eligible systems

-for space heating & cooling and water heating

-must use 25%–50% less electricity than
conventional heating or cooling systems

-cost   of solar water heating system: $6,000-$8,000

-provides funding for a portion of the costs to
install qualifying solar energy systems

-up to $2,500 per kW (up to $10,000 for
photovoltaic property)

-up to $3,000 for solar water heating systems

-started   September 2006

-wind measuring devices are loaned to landowners


       -diameter of 60 feet of open space around the
base of the tower location for 30-m towers; and 110
feet for 50-m towers

-small scale wind energy systems

-at least 1 kW for residential properties and 1.5
kW for non-residential properties

-eligible: individuals, businesses, local

-$2500/kW (max $10,000)


Awards   for projects in 3 categories:

-biofuels (including renewable liquid or gaseous fuels)

-electric transportation

-consumer behavior modification

-max award $100,000/application

-minimum award: $2,000

- 0.85 cents per kW hour for electricity generated
from qualified resources

-0.50 cents per kW hour if co-firing a qualified
resource with coal

--annual tax credits cannot exceed 1/5 of the initial
credit certificate

                                               Federal Tax Credits

                                               for Energy Efficiency
1. For Consumers

Home Improvements

Efficient Cars

Solar Energy Systems

Fuel Cells
                2. For Home Builders

    $2,000 tax credit for energy efficient homes that
     achieve 50% energy savings for heating and

  $1,000 tax credit for energy
 efficient homes that achieve
30% energy savings for heating
           and cooling

           3. For Commercial Buildings

           -tax deduction of up to $1.80 per square foot for
           commercial buildings that save at least 50% of the
           heating and cooling energy

           -partial deductions of up to $.60 per square foot
           for measures affecting any one of three building
                              -the building envelope
                              -lighting, or heating
                              -cooling systems

Case Studies
           1. Examples of Alternative Energy Solutions in MD

                                 Small-Scale Wind Energy Systems

                                 Energy from Municipal Solid Waste

Small-Scale Wind Energy Systems

Eastern Neck Wildlife Refuge (Kent County) wind
demonstration project

-March 2002: 10kW wind turbine installed to
provide on-site electric power to the administration

-Not enough wind year round

-Hybrid system using wind and solar

-Measures avian interaction with wind turbine
                               Energy from Municipal Solid Waste

                                                                Prince George’s County uses
                                                             landfill gas from the Brown Station
                                                             Landfill to provide heat, hot water,
                                                                and electricity for the County
                                                                       Detention Center

     at Montgomery County’s Resource
    Recovery Center, electricity and steam
      is generated by burning municipal
                 solid waste

     2. Examples of Municipalities
                   Conserving Energy

                          Central City, CO “One light bulb at a time”

                   June 2007: replaced light bulbs in all City buildings
                   with energy efficient bulbs

                   -initiated a program to provide residents with free
                   energy efficient light bulbs for their homes

                   -1/3 of the 300 hundred homeowners in Central City
                   have participated in the program

                   -over 2,100 bulbs given out in first month
    Durango, CO

Installed meters on 4 municipal buildings
 to measure and record power demand

-put in place a different power rate structure tailored to the
specific electrical power demand times of the City

-change the operating time of the City’s electrical engines
and heaters to more “off peak” times

-expected savings:
      -first year: $20,000
      -second year: $40,000-$50,000
      -third year on: $60,000 annually

   Evans, CO: EPC example

-Citydecided to find an ESCO to perform an energy audit
and to perform energy and cost savings upgrades on
campus buildings

-recommendations from energy audit:
      upgrades in lighting ballasts, bulbs, and fixtures

Estimated costs savings from these upgrades: $7,000

        Average approximate pay back of 5 years
    Arvada, CO: another EPC example

-Comprehensive energy audit with electrical upgrades

     -all City traffic lights were replaced with LED lights
     -lighting retrofit program initiated in all mun. buildings
     -some boilers and chillers were replaced

-initial projected estimates showed Arvada could save
$800,000 over 10 years

-combined actual measured savings plus estimated
operational savings from first year: $145,000
            Brattleboro, Vermont

-In 2006 Honeywell performed an energy audit of the
city’s municipal buildings

-In 2008 the city joined the EPA Municipal Energy
Challenge (reduce energy use in municipal buildings
by 10% -New England program)

Estimated annual savings from this reduction: $9,383
    Brattleboro, VT : Outcomes
-the city engaged 25 businesses to make the 10% reduction

-energy efficiency improvements:
      -lighting retrofits
      -boiler controls
      -envelope and heating plant improvements

-the improvements helped Municipal Center perform better
than 88% of its counterparts nationwide

-the Municipal Center is eligible for an Energy Star
-town fleets converted to 80/20 biodiesel
                                                                   3. Outside the Box:
                                                                    “Flex Your Power”

Flex Your Power… background

-CA’s statewide energy efficiency marketing and
outreach campaign started in 2001

-partnership of CA utilities, residents, businesses,
institutions, government agencies and nonprofit

-received an ENERGY STAR Award for excellence
Flex Alerts

-Urgent call for business, residents, and
governments to voluntarily reduce electricity use to
prevent Stage 1 Electrical Emergencies

-Flex Alert Network: comprised of businesses,
governments, and organizations who have agreed
to send out Flex Alert notifications when they are

       3 Flex Alert Measures:

  1. Turn off all unnecessary lights,
       computers and appliances
 2. Postpone using major appliances
             until after 7 p.m
3. Turn air conditioning thermostat to
             78° F or higher
Benefits of Flex Alerts

-Reduce possibility of a brownout or blackout

-Reduce your energy bill

-Reduce the need for new power plants

-Diminish the need to pay out-of-state generators
 for peak power
Demand Response Programs

The Point: Fast, Easy, Cheap, Simple way to
reduce energy consumption

-uses rates, incentives and other strategies to help
better manage electricity use during periods of
high peak demand

-with a goal of reducing peak demand by 5%,
California leads the way in US Demand Response
    Demand Response Program variables

1. Eligibility: Typically based on a customer's peak
electricity demand, measured in kWs

2. Program triggers: such as extreme weather, or
electrical emergencies

3. Binding vs. Voluntary programs

4. Incentives
Non-Residential Demand Response Tips Chart

some examples:

      -turn off decorative lighting & fountains

      -turn off nonessential lighting

      -delay dishwashing & laundry processing

      -raise cooling thermostat settings

      -reduce use of multiple escalators/elevators
Smart Meters/Advanced Metering Systems

-track "real time" energy use, noting when an end-user
 consumes more or less electricity

-during high-energy use periods, large energy users
 (such as industrial customers using 200 kW and over)
 are charged more for their electricity use
Energy Saving Tips

For Residents
►recommendations are organized by cost: No-Cost, Low-Cost,
and Good Investment

some examples:

-turn water heater down to 120° or the "Normal" setting when
home, and to the lowest setting when away
(water heating accounts for about 13% of home energy costs)

-wash clothes in cold water
(about 90% of the energy use in a washing machine goes to
water heating)
Energy Efficient Appliances

                     Energy Star Appliances

earning the “Energy Star” means a product meets
  strict US Department of Energy & EPA energy
                           efficiency guidelines
In the Kitchen

        -save $90 over its lifetime in utility costs
      -use at least 41% less energy than the federal
minimum standard for energy consumption

       -use 20% less energy than the federal minimum

       -use 10% less energy than the federal minimum

-room AC:
        -use 10% less energy than conventional models

-central AC:
        -14% more efficient than conventional models

        -use 6% less energy than conventional models

-programmable thermostats:
        -save $180 dollars a year
Other Appliances

-washing machines:
        -save $550 over its lifetime in utility costs

        -use 30% less energy than standard units

-light bulbs:
        -use 75% less energy than standard light bulbs
        -produce 75% less heat
        -last 10 times longer
-printers & scanners:
        -25% more efficient than conventional models

            Joanne Throwe
            University of Maryland
            Environmental Finance Center

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