Danfoss 2008 EnVisioneering Insights

MAKING MODERN LIVING POSSIBLE Danfoss 2008 EnVisioneering Insights SM An In-Depth Look at Advanced Energy Strategy and Technology ENGINEERING + ENERGY EFFICIENCY + ENVIRONMENT = ENVISIONEERING 2007 Symposia Series : The Year in Review About Danfoss and EnVisioneering SM Danfoss is one of the world’s leading manufacturers of electronic and mechanical components and control systems for refrigeration and air-conditioning, heating and motion controls. We operate in more than 100 countries and employ 21,400 people. Our innovative, reliable products are backed by local sales and support to help our customers solve their greatest challenges. As a world leader in components and solutions, Danfoss meets our customers’ challenges through “EnVisioneering.” This approach expresses our views on engineering innovation, energy efficiency, environmental responsibility and sustainable business growth that create strong customer partnerships. This vision is realized through a global production, sales and service network. Through EnVisioneering, Danfoss is Making Modern Living Possible. Danfoss “EnVisioneering” represents our commitment to: • Engineered solutions to improve performance and profitability • Energy efficiency to meet higher standards and lower operating costs • Environmental sustainability to provide a financial and social payback • Engaged partnerships to foster trust, reliability and technological superiority For more information about Danfoss, visit www/danfoss.com/north_america. For more information about EnVisioneering, visit www.envisioneering.danfoss.com. There, you will find the latest product information, updates on the EnVisioneering Symposia Series and details on the three focus areas that uniquely define EnVisioneering: Engineering, Energy Efficiency and the Environment. EnVisioneering Symp Discussion of Global SM From Washington, DC, to Long Beach, CA… from building efficiency, life-cycle costing and utility incentives to energy education and awareness … from local and state issues to national and international energy challenges—the 2007 Danfoss EnVisioneering Symposia Series offered something for everyone with a considerable stake in the global energy situation. professional backgrounds—all with a vested interest in energy issues. And, we began to discuss solutions that will move the HVAC&R industry, and allied industries, forward.” Danfoss hosted three symposia events in 2007, each with its own distinct theme: Symposium 4— “Energy Efficiency Investment and the Emerging Global Cost Paradigm,” held in April at the Hotel Washington in Washington, DC. Symposium 5— “Making Dollars and Sense of Energy Efficiency: A Focus on Conservation,” conducted in June at the Westin in Long Beach, CA. Symposium 6— “Breaking Through: Creating an Informed Energy Efficiency Technology Marketplace,” held in October, also at the Hotel Washington. So, what have we learned about the global energy challenge in the past two years? Following are 10 “learnings,” takeaways and outcomes from the six symposia events: When Danfoss launched the EnVisioneering Symposia Series in 2006, its goals were twofold: 1. To create an ongoing dialogue among industry, the policy community and thought leaders in research and development. 2. To explore the 21st century energy and environmental challenges facing people around the world. “I believe we not only created the dialogue, but we also advanced the discussion in 2007,” said John Galyen, president of Danfoss Refrigeration & AirConditioning, North America, who has hosted all six symposia events. “We brought together experts from a variety of 1. The global energy challenge is so complex that it’s difficult for any one person, business or industry segment to wrap its arms around all the variables. Even the so-called experts can’t provide clear direction because the variables are constantly changing. ENGINEERING + ENERGY EFFICIENCY + ENVIRONMENT = ENVISIONEERING 2 www.envisioneering.danfoss.com 3 mposia Series Advances Energy, Environmental Issues 2. The EnVisioneering Symposia Series is one of the few places where energy stakeholders have a unique opportunity to meet and exchange ideas, information and insights. energy regime is being exposed to new, significant and highly dispersed threats and risks—and the situation is not likely to get any easier. 8. There is a significant difference between energy conservation and energy efficiency. For example, if we slow demand for electricity, we are essentially “conserving” energy. Meanwhile, we can improve energy “efficiency” by implementing new technologies that better utilize electricity, natural gas and other fuel sources. 3. There are a relatively small number of passionate leaders on the global energy front. These leaders must continue to push for change and drive solutions. 4. The federal government “But the good thing is, we’re making progress,” Galyen said. “We’re putting the larger, global issues on the table. We’re opening dialogues that were previously closed. We’re advancing the discussion, analyzing solutions and beginning to measure outcomes.” 2007 EnVisioneering Symposia speakers included Glenn Barrett of Supervalu (far left), Mark Bernstein of the University of Southern California (below left) and Kent Peterson of ASHRAE (bottom). Attendees (right) included John Suzukida of Lanex Consulting, Art Murnan of Trane and John Galyen of Danfoss Refrigeration & Air-Conditioning, North America. must take a leadership role in driving home change and preventing a patchwork landscape. For example, there needs to be a uniform call 9. Energy is not only a national to the HVAC&R industry issue, it’s a global issue. regarding the rules and In fact, the impact of the regulations that govern global energy situation on energy efficiency. the HVAC&R industry is 5. Energy efficiency is the shortsignificant. The rising cost term play. There are plenty of raw materials and labor, of things our industry can for instance, will further do right now to save energy— burden energy efficiency from reducing energy technologies that were consumption to eliminating already struggling with waste to enhancing recycling first-cost-driven demand. efforts. Moreover, an abundance of energy-efficient 10. There is no silver bullet, no single answer, to national technologies already exist. and global energy issues. 6. Innovation will be required to There are simply too many address the mid- and long-term variables, too many special challenges of energy efficiency. interests, too many rules and If we obsessively innovate regulations, and too many today, we will plant the seeds possible solutions to sprout new energy-efficient to make sense of it all. technologies 10, 20 or even 30 Stay tuned for more lively years from now. discussion, solutions and outcomes from the 2008 Danfoss 7. Energy is, and probably EnVisioneering Symposia Series always will be, a national (see related story, pages 10–11). security concern. The global Codes, Standards & Legislation New Codes, Standards and Legislation Drive Energy-Related Initiatives As the world comes to grips with global climate change and issues related to engineering, energy efficiency and the environment, there is certainly no shortage of energy-related initiatives on the global, national, state, city and legislative fronts. Much has changed in the past year. This issue of EnVisioneering Insights is intended to provide you with a snapshot of the key codes, Organization Initiative Name Brief Description Application standards and legislation driving improvements in engineering innovation, energy efficiency and environmental sustainability. The snapshot is meant to inform, educate and enlighten—and direct you to additional resources, including the EnVisioneering web site: www.envisioneering.danfoss.com. ■ Status More Info International Initiatives Alliance for Climate Protection Public education and understanding about the global climate crisis Founded by former U.S. Vice President Al Gore, the alliance strives to persuade people about the importance, urgency and feasibility of adopting and implementing effective, comprehensive solutions to the climate crisis. The alliance’s goals are fourfold: 1. Move the U.S. past a “tipping point” on the major issues surrounding global climate change. 2. Create a critical mass of public opinion to support U.S. participation in an international effort to enact a new, greenhouse-gas reduction treaty. 3. Generate overwhelming support for new American leadership in international efforts to solve the climate crisis. 4. Persuade stakeholders to quickly and meaningfully reduce their own global warming pollution, or “carbon footprint.” The report has wide-ranging implications. While it adds scientific credibility to the concept of global climate change, it will also likely spur countries, legislators and the world’s people to take decisive action. The alliance is partially funded through profits from Gore’s Oscarwinning film, “An Inconvenient Truth.” In December, Gore accepted the 2007 Nobel Peace Prize for his efforts to raise awareness about the global climate crisis. http://www.climateprotect.org Intergovernmental Panel on Climate Change Fourth assessment report on global climate change The report made many conclusions. Among the most significant: Warming of the climate system is unequivocal, as is now evident from increases in global average air and ocean temperatures, widespread melting of snow and ice, and rising global average sea water. Eleven of the last 12 years (1995-2006) rank among the 12 warmest years in the instrumental record of global surface temperatures. The temperature increase is widespread over the globe, and is greater at higher northern latitudes. Land regions have warmed faster than the oceans. The “Montreal Protocol on Substances that Deplete the Ozone Layer” is an international treaty designed to protect the ozone layer by phasing out the production of a number of substances believed to be responsible for ozone depletion. HCFC refrigerants are among those substances. The fourth assessment report was approved Nov. 17, 2007 in Valencia, Spain. www.ipcc.ch Montreal Protocol Agreement on production and consumption of HCFC refrigerants HCFC refrigerants, most notably R-22, are widely used in air-conditioning and refrigeration systems. During the 19th meeting of the United Nations to the Montreal Protocol, held in September, the following was determined: Developed (non-Article 5) countries agreed to reduce production and consumption of HCFCs by 75 percent by 2010 and by 90 percent by 2015, with final phaseout set for 2020. In addition, developed (Article 5) countries agreed to reduce production and consumption of HCFCs by 1 percent by 2010, by 35 percent by 2020 and by 67.5 percent by 2025, with final phaseout scheduled for 2030. The partners met Oct. 15, 2007 in New Delhi, India, to officially welcome Canada into the organization and recognize the partnership’s successes. The partners agreed on a flagship portfolio of 18 projects and activities that best exemplify the partnership’s achievements. http://www.unep.org/ themes/ozone/?page=home U.S. Department of State Asia-Pacific Partnership on Clean Development and Climate The Asia-Pacific Partnership is a public-private partnership involving the U.S., Australia, Canada, China, India, Japan and the Republic of Korea. Those seven countries represent more than half of the world’s population and more than half of the world’s economy and energy use. The partners are committed to “enhance cooperation to meet both our increased energy needs and associated challenges, including those relating to air pollution, energy security and greenhouse gas intensities.” Focus areas include energy efficiency, clean coal, natural gas, bioenergy, methane capture/use, civilian nuclear power, geothermal, agriculture/forestry, rural/village energy systems, advanced transportation, hydro/wind/solar power and building/home construction/operation. www.asiapacificpartnership.org 4 www.envisioneering.danfoss.com 5 Organization Initiative Name Brief Description Application Status More Info International Initiatives (cont.) William J. Clinton Foundation Clinton Climate Initiative (CCI) Launched in August 2006, CCI applies the foundation’s business-oriented approach to the fight against climate change in practical, measurable and significant ways. CCI is working with the C40 Large Cities Climate Leadership Group to develop and implement a range of actions that will accelerate reductions in greenhouse gas emissions. In addition, CCI is organizing a purchasing consortium that will help cities buy energy-efficient technologies at lower prices and create a measurement and information tool to assist cities in taking an inventory of energy use, thereby directing future activities. CCI will continue to share best practices and develop programs to help cities reduce energy consumption and use cleaner energy. www.clintonfoundation. org North American Initiatives Consortium for Energy Efficiency (CEE) CEE, which serves the U.S. and Canada, offers separate initiatives for commercial and residential air conditioners and heat pumps Both initiatives outline specifications that are equal to or higher than specs established under the U.S. EPA’s ENERGY STAR program. The High-Efficiency Commercial Central AC & Heat Pumps initiative began using Tier 2 as its minimum performance level in July 2002. In 2007, the CEE changed Tier 2 to Tier 1, under which equipment is 22% more efficient than the federal standard. The High-Efficiency Residential Central AC & Heat Pumps initiative uses Tier 2. For split systems, the minimum specs are: 15 SEER, 12.5 EER and 8.5 HSPF. For packaged equipment, the minimum specs are: 14 SEER, 12 EER and 8 HSPF. In 2007, the CEE adopted a specification of energy-efficient installation practices for residential and light-commercial HVAC systems. The CEE periodically reviews and updates specifications based on market conditions. www.cee1.org European Initiatives European Union (EU) Agreement on production and consumption of HCFC refrigerants The EU has agreed to stop using R-22 refrigerants in existing systems by Dec. 31, 2014. Service on existing systems will be restricted to recycled R-22 on Dec. 31, 2009. Currently, R-22 is prohibited from use in all new cooling, air-conditioning and heat pump systems. HCFC refrigerants, most notably R-22, are widely used in air-conditioning and refrigeration systems. The EU offers two refrigerants as R-22 substitutes. Forane FX 100 requires one oil draining, and it must be replaced by a POE lubricant. ISCEON MO59/R417A, MO29/R422D and MO79/R422A are compatible with traditional and new lubricants, mineral oil, alkyl benzene and polyol ester. In most cases with ISCEON, a lubricant changeout isn’t required during a retrofit. There are minimal issues with all four R-22 substitutes. For example, Forane FX 100 has a slightly higher global warming potential (1,830) than R-22 (1,700). The RoHS Directive and related regulations became effective July 1, 2006. http://www.eea.europa. eu/ European Union (EU) RoHS Directive The RoHS Directive bans placing on the EU market any newly manufactured electrical and electronic equipment containing more than agreed-to levels of lead, cadmium, mercury, hexavalent chromium, polybrominated biphenyl (PBB) and polybrominated diphenyl ether (PBDE) flame retardants. Similar to the RoHS Directive, the WEEE Directive focuses on the recycling of electrical and electronic equipment. The WEEE Directive complements the EU’s measures on landfill and waste incineration. The policy firmly commits the EU to a low consumption economy based on more secure, more competitive and more sustainable energy. Priority energy objectives involve ensuring the smooth functioning of the internal market in energy, security of strategic supply, concrete reductions in greenhouse gas emissions caused by the production or consumption of energy, and the EU’s ability to speak with a single voice on the international stage. The RoHS Directive applies to equipment and components supporting the HVACR and allied industries. http://www.rohs.gov.uk/ European Union (EU) Waste Electrical and Electronic Equipment (WEEE) Directive The WEEE Directive applies to equipment and components supporting the HVACR and allied industries. The WEEE Directive went into effect in February 2003. http://ec.europa. eu/environment/waste/ weee_index.htm European Union (EU) An Energy Policy for Europe The policy will affect numerous stakeholders, including HVACR equipment manufacturers, energy producers, suppliers, users and consumers. In March 2007, the EU’s Heads of State and Government adopted a comprehensive energy action plan, which includes the new policy. http://europa.eu Organization U.S. Initiatives American Institute of Architects (AIA) Initiative Name Brief Description Application Status More Info Codes, Standards & Legislation High-Performance Building Tax Incentives The AIA supports federal, state and local legislation and tax incentives that encourage and aid the construction of high-performance buildings. At the federal level, the Energy Policy Act of 2005 established a tax deduction for expenses related to the design and installation of energy-efficient commercial building systems. Standard 55-2004 specifies the combinations of indoor space environment and personal factors that will produce thermal environmental conditions acceptable to 80 percent or more of the occupants. A building owner may claim a tax deduction for expenditures made as part of a building designed to reduce the total annual energy used in its operation. Building owners can claim a tax deduction of up to $1.80/square foot for installing systems that reduce total energy and power costs by 50% or more. Specifically, the standard addresses environmental factors such as temperature, thermal radiation, humidity and air speed, as well as personal factors like activity and clothing. The standard also covers requirements for unitary airconditioners, air-conditioning units, heat pumps and other HVAC equipment. Standard 62.1 is intended for regulatory application to new buildings, additions to existing buildings and those changes to existing buildings that are identified in the standard. Standard 62.2 requires source-control measures that exhaust pollutants from specific rooms before the pollutants enter the rest of the household. Both standards also cover requirements for unitary air-conditioners, airconditioning units, heat pumps and other HVAC equipment. Written to allow easy incorporation into specifications for new buildings and renovations, the standard lays out minimum requirements for a building’s envelope, electrical power systems and equipment, lighting, heating, ventilating and airconditioning, service, water heating and energy management. The standard applies to the building envelope, heating equipment and systems, air-conditioning equipment and systems, domestic water-heating equipment and systems, and provisions for overall building design alternatives and trade-offs. The Getting to Fifty database provides a central, online location for information on buildings that have successfully met or exceeded high-performance levels. In addition, Getting to Fifty provides detailed examples of how you can improve lighting efficiency in a variety of building types. Electric utilities are working with DOE and their industry allies, including those in the HVACR industry, to reduce “power sector carbon intensity” by 3–5% this decade. AIA is urging Congress to make the tax deduction permanent or at least extend it beyond the current deadline (Jan. 1, 2009). http://www.aia.org/ adv_commercialbuilding_ taxdeduction ASHRAE Standard 55 — Thermal Environmental Conditions for Human Occupancy Standard 55 is not currently under revision, but ASHRAE often revises standards based on market conditions. www.ashrae.org. Search Standard 55. ASHRAE Standard 62.1— Ventilation for Acceptable Indoor Air Quality, and Standard 62.2— Ventilation and Acceptable Indoor Air Quality in LowRise Residential Buildings Standard 62.1-2004 specifies minimum ventilation rates and indoor air quality that will be acceptable to human occupants and are intended to minimize the potential for adverse health effects. Standard 62.2-2004 defines the roles of and minimum requirements for mechanical and natural ventilation systems and the building envelope intended to provide acceptable IAQ in low-rise residential buildings. It is the only nationally recognized IAQ standard developed solely for residences. As the latest version of ASHRAE’s ever-evolving energy code, Standard 90.1 is the basis for some state energy codes governing the design of new buildings and major renovations. Standards 62.1 and 62.2 aren’t currently under revision, but ASHRAE often revises standards based on market conditions. www.ashrae.org. Search Standards 62.1 and 62.2. ASHRAE Standard 90.1-2007 — Energy Standard for Buildings Except Low-Rise Residential Buildings Standard 90.1-2007 is not currently under revision, but ASHRAE often revises standards based on market conditions. www.ashrae.org. Search Standard 90.1. ASHRAE Standard 90.22007 — EnergyEfficient Design of Low-Rise Residential Buildings The new standard provides minimum energy efficiency requirements for the design and construction of new residential dwelling units and their systems, new portions of residential dwelling units and their systems, and new systems and equipment in existing dwelling units. Launched in 2006, Getting to Fifty is a new resource that helps designers, architects, owners and contractors achieve their goals of truly highperformance buildings. (“Fifty” refers to using 50% less energy in commercial buildings.) Adopted in 2007, the standard supersedes Standard 90.2-2004. www.ashrae.org. Search Standard 90.2 New Buildings Institute (NBI) Getting to Fifty In the past year, the NBI has added staff and initiated new strategies to support its mission. For example, the NBI is working with the U.S. Green Building Council to improve the energy efficiency aspects of LEEDcertified buildings. www.gettingtofifty.org Edison Electric Institute (EEI) Power Partners Power Partners is a voluntary initiative under which the electric power sector will substantially reduce, avoid or capture CO2 emissions. The initiative was founded in 2003 between EEI and the U.S. Department of Energy. In addition to Power Partners, EEI member companies have undertaken initiatives in areas such as natural gas and clean coal technology generation; additional nuclear power generation; new renewables, energy efficiency and demand-side management programs; methane recovery projects; and international partnerships. The federal mandate went into effect January 23, 2006. Manufacturers continue to exceed the standard on high-performance equipment. www.eei.org U.S. Department of Energy (DOE) 13 SEER Standard 13 SEER (Seasonal Energy Efficiency Ratio) is the federally mandated minimum efficiency for all residential air conditioners and heat pumps manufactured since January 23, 2006. 13 SEER applies to all central cooling systems. The standard represents a 30% increase in efficiency over the previous standard of 10 SEER. The HVAC industry has been in transition to higher-efficiency equipment for several years, but this standard has still required significant changes in product design and manufacturing, as well as specific protocols in equipment installation to ensure that efficiency levels are met and can be maintained for the useful life of the equipment. http://www.energy.gov/ news/1308.htm 6 www.envisioneering.danfoss.com Organization Initiative Name Brief Description Application Status More Info 7 U.S. Initiatives (cont.) U.S. Department of Energy (DOE) Advanced Energy Initiative Launched by President Bush in January 2006, the Advanced Energy Initiative recommends a 22 percent increase in cleanenergy research. It calls for more investment in zero-transmission coal-fired plants, revolutionary solar and wind technologies, and clean, safe nuclear energy. It also calls for new technologies to better power automobiles, including hybrid and electric cars. DOE is focusing on five pathways to transform energy: conservation, wind, nuclear, bioenergy and fusion. The U.S. is capable of producing 1 billion dry tons of biomass annually—enough for 60 billion gallons of ethanol, or 30 percent of today’s transportation fuel usage. In addition, the U.S., European Union, Japan, Russia, China, Korea and India have agreed to develop an International Thermal Energy Reactor for commercial fusion energy. DOE has determined that energy efficiency standards for residential non-weatherized and weatherized gas furnaces, mobile home gas furnaces, oil-fired furnaces, and gas- and oil-fired boilers are technologically feasible and economically justified. The standards will reduce greenhouse gas emissions by 7.8 million tons of carbon dioxide. In November 2007, DOE announced it will invest $21.7 million in nextgeneration photovoltaic technology to help accelerate the widespread use of advanced solar power. DOE selected 25 projects, to be implemented by 15 universities and six companies. ENERGY STAR applies to more than 35 product categories, including heating and cooling equipment, for residential, commercial and industrial use. The new standards will take effect in 2015. www.energy.gov DOE continues to pursue the five pathways to transform energy. www.science.doe.gov U.S. Department of Energy (DOE) Energy Efficiency Standards for Residential Furnaces and Boilers In December 2007, DOE increased the energy efficiency standards for residential furnaces and boilers. The standards, which will become effective in 2015, will save some 0.25 quadrillion BTUs of energy over a 24-year period (2015-2038). U.S. Department of Energy (DOE) Solar America Initiative The initiative aims to diversify America’s energy resources by spurring widespread commercialization and deployment of clean, solar energy technologies, providing long-term economic, environmental and security benefits. Established in 1992, ENERGY STAR is a joint program between the U.S. EPA and Department of Energy that helps save money and protect the environment through energyefficient products and practices. GreenChill is an EPA cooperative alliance with the supermarket industry and other stakeholders to promote the adoption of technologies, strategies and practices that reduce emissions of ozone-depleting substances and greenhouse gases, and increase refrigeration system energy efficiency. Produced in conjunction with the Air-Conditioning & Refrigeration Institute (ARI), the guide covers the responsible use of refrigerants, especially fluorocarbons. By minimizing refrigerant emissions, manufacturers not only conserve refrigerant supply, but they also contribute to both climate and ozone protection. The LEED Green Building Rating System™ is a nationally recognized benchmark for the design, construction and operation of highperformance green buildings. The photovoltaic technology initiative is subject to final project negotiations and congressional appropriations. www.energy.gov U.S. Environmental Protection Agency (EPA) ENERGY STAR EPA will continue to expand the ENERGY STAR program because of its environmental and economic benefits. www.energystar.gov U.S. Environmental Protection Agency (EPA) GreenChill Advanced Refrigeration Partnership The partnership focuses on refrigeration systems and equipment that use refrigerants such as HCFC-22, which will be phased out Jan. 1, 2010. The partnership meets regularly to promote supermarkets’ adoption of alternative refrigeration technologies and reduce the total impact of supermarkets on ozone depletion and global warming. http://epa.gov/ozone/ downloads/GreenChillFlyer.pdf U.S. Environmental Protection Agency (EPA) Responsible Use Guide for Minimizing Fluorocarbon Emissions in Manufacturing Facilities The guide applies to refrigerant recovery and storage; operational practices for manufacturing, laboratories and plant airconditioning systems; handling of wastes containing fluorocarbons; and the relocation of finished equipment from manufacturing plants to installation or warehousing facilities. The guide was developed following a 2005 survey of HVACR industry manufacturers. http://www.epa.gov/docs/ ozone/snap/refrigerants/ARI_ ResponsibleUseGuide.pdf U.S. Green Building Council (USGBC) Leadership in Energy and Environmental Design (LEED) LEED can be applied to every building type and phase of a building lifecycle. LEED gives building owners and operators tools to have a measurable impact on their buildings’ performance. LEED-certified buildings: are leading the transformation of the built environment; are built as designed and perform as expected; have lower operating costs and increased asset value; are healthy and comfortable for their occupants; reduce waste sent to landfills; conserve energy and water; reduce harmful greenhouse gas emissions; qualify for tax rebates, zoning allowances and other incentives in hundreds of cities; and demonstrate an owner’s commitment to environmental stewardship and social responsibility. Composed of best practices using a “whole house” approach, the guidelines will be supplemented by learning programs, as well as print and electronic resources for building professionals and homeowners. The USGBC continues to revise the LEED Green Building Rating System based on market conditions. www.usgbc.org U.S. Green Building Council (USGBC), American Society of Interior Designers Foundation (ASID) REGREEN Program Launched in November 2007, the program provides guidelines for green, residential remodeling of existing homes. It’s the first program of its type in the U.S. Final guidelines will be released at “Interiors ‘08: The ASID Conference on Design,” to be held in March in New Orleans. www.greenhomeguide.org Organization Canadian Initiatives Office of Energy Efficiency (OEE) Initiative Name Brief Description Application Status More Info Codes, Standards & Legislation Amendment 10 to Canada’s Energy Efficiency Regulations Registered Aug. 28, 2007, the amendment lays out 11 separate provisions, including proposed regulations for residential gas furnaces, gas unit heaters and dehumidifiers. As part of the amendment, the OEE wants to increase the Annual Fuel Utilization Efficiency (AFUE) standard to 90%. Consumers who install a 90% AFUE furnace would save $40 to $230 in annual energy costs. The amendment must meet regulatory and governmental approvals. http://oee.nrcan.gc.ca/ english/index.cfm U.S. State Initiatives Alliance to Save Energy (ASE) State Energy Efficiency Policy Index Every state is doing something to promote energy efficiency through laws and regulations. ASE’s web site provides policy pages in areas such as appliance standards, energy efficiency funds, transportation initiatives, building codes, public benefits funds, legislation, cap and trade programs, and tax incentives. In addition to the state policy pages, ASE’s web site offers state-by-state tips to help consumers save money on their energy bills year-round. State laws and regulations are constantly changing, but you can stay current by subscribing to ASE’s State Energy Efficiency Policy Bulletin. This monthly electronic newsletter tracks legislative and regulatory energy efficiency policies, features a guest column highlighting energy efficiency innovations in the states, and includes an update on building code activity from the Responsible Energy Codes Alliance. The proposal was issued by Commissioner Dian Grueneich of the California Public Utilities Commission and Kim Malcolm, an administrative law judge in California. http://www.ase.org/content/ article/detail/2356 California Energy Commission (CEC) Zero Net Energy Proposal The proposal has three programmatic initiatives: 1. All new residential construction in California will be net-zero energy by 2020. 2. All new commercial construction in California will be net-zero energy by 2030. 3. The HVAC industry will be reshaped to ensure optimal equipment performance. (Net-zero energy means buildings will use no more energy over the course of a year than they produce through solar power or other energy production technologies.) Revised in October 2005, the Energy Efficiency Standards for Residential and Non-residential Buildings were established in 1978 in response to a legislative mandate to reduce California’s energy consumption. The standards are updated periodically to allow consideration and possible incorporation of new energy efficiency technologies and methods. Every state, as well as the District of Columbia, offers financial incentives to improve energy efficiency. Many state utilities provide incentives in the form of rebates, grants and loans. In Minnesota alone, there are 72 different utility rebate programs. Washington and California aren’t far behind, with 62 and 60 utility rebate programs, respectively. The summit, hosted by Gov. Charlie Crist in July 2007, highlighted the state’s initiatives to reduce greenhouse gas emissions, increase solar energy use and reduce carbon dioxide emissions. If adopted, the proposal will have far-reaching implications for equipment manufacturers, distributors, contractors, utilities, building owners and homeowners, to name just a few stakeholders. www.energy.ca.gov California Energy Commission (CEC) Title 24—Building Energy Efficiency Standards The standards affect the design of the building envelope and HVAC, water-heating and lighting systems. The non-residential application covers hotels, motels and high-rise residential buildings (those higher than three stories), while the residential application addresses low-rise buildings (three stories or fewer). The financial incentives cut across a variety of markets: residential, commercial, industrial, institutional, agricultural and non-profit. The incentives apply to numerous energy-efficient technologies, from heat pumps and air-conditioners to lighting, controls, motors and variable-speed drives. Florida will develop a carbon scorecard for all state agencies and make state buildings and vehicles more energy efficient. The state will also establish a 21-member Governor’s Action Team on Energy and Climate Change that will work to strengthen existing public-private partnerships and voluntary participation. What’s more, FPL Group, one of the nation’s largest electric utilities, will build a 300-megawatt solar-energy facility in Florida. The new standards go into effect in 2009. www.energy.ca.gov/title24/ Database of State Incentives for Renewable Energy (DSIRE) Financial Incentives for Energy Efficiency New financial incentives are being developed almost daily nationwide. Check the DSIRE web site for the most current information. http://www.dsireusa. org/summarytables/FinEE. cfm?&CurrentPageID=7&EE =1&RE=1 State of Florida Serve to Preserve Summit on Global Climate Change Initiatives are under way across the state. http://www.myflorida.com City Initiatives Austin, TX Austin Energy Green Building Program and Power Saver Program The green building program offers consulting, resources and education to help consumers and building owners build an environmentally sound home and workplace. The Power Saver program benefits consumers whose homes are more than 10 years old. As part of the green building program, homeowners can take advantage of a “Green by Design” workshop, while building professionals can rate projects based on energy efficiency. The Power Saver program offers a “Home Performance with Energy Star Rebate,” which covers up to 20 percent of the cost of certain improvements—up to $1,575. Austin Energy claims to operate “the nation’s most successful utility-sponsored sustainable building program.” http://www.austinenergy.com 8 B www.envisioneering.danfoss.com www.envisioneering.danfoss.com Organization Initiative Name Brief Description Application Status More Info 9 City Initiatives (cont.) Chicago, IL Climate change programs The city, in conjunction with the Clinton Foundation, recently announced two climate change programs aimed at helping Chicago homeowners and owners of commercial buildings to modernize their buildings to reduce energy use. The city’s Merchandise Mart will be the first commercial building to participate in the Clinton Foundation’s Energy Efficiency Building Retrofit Program. Chicago is one of the first cities to implement the program. The Chicago implementation is unique because it extends the retrofit program beyond commercial buildings to make residential properties of more than 25 units eligible for city funds. The Chicago implementation builds off existing city programs, which — as part of the Preservation Compact initiated by the Chicago-based MacArthur Foundation — are retrofitting affordable housing developments of between four and 25 units. http://egov.cityofchicago.org Key Legislation Air-conditioning, Heating and Refrigeration Institute Cool and Efficient Buildings Act (U.S. House Bill 1888) Introduced by U.S. Rep. Peter Hoekstra (R-Mich.) in March 2005, this bill seeks to amend the federal tax code, providing a shorter depreciation period for commercial HVACR equipment. The current period is 39 years; AHRI wants to reduce it to 20 years. The bill also encourages energy conservation. The current 39-year tax depreciation period is substantially longer than the normal 15- to 20-year life of commercial HVAC&R equipment. This creates a disincentive to replace older, inefficient equipment (possibly still using CFC refrigerants) with newer, more energy-efficient equipment. Equipment includes commercial air-conditioners (chillers and rooftop units) and commercial refrigeration systems. The law will have wide-ranging implications for the HVAC&R industry, especially with regard to the energy efficiency of appliances and buildings. Political leaders described the legislation as “groundbreaking” and “a historic turning point in energy policy.” AHRI believes the bill’s passage would help upgrade the nation’s HVAC&R equipment and promote energy efficiency and savings. http://www.ari.org/ MemberPortal/policy/ efficiency/ Air-conditioning, Heating and Refrigeration Institute New federal energy law In December 2007, President Bush signed into law the first comprehensive energy bill since 1975. The law boosts automobile fuel economy by 40 percent, to 35 miles per gallon by 2020. The law also requires a six-fold increase in ethanol use, to 36 billion gallons a year by 2022, and mandates new energy efficiency standards for appliances, lighting, and commercial and government buildings. The first-ever standards would dramatically affect the design of new equipment beginning Jan. 1, 2009. The automotive, HVAC&R and related industries are making changes to adapt to the new law. www.ari.org Air-conditioning, Heating and Refrigeration Institute, American Council for an EnergyEfficient Economy Federal energy efficiency standards for commercial walk-in freezers The standards will cover coolers and freezers that have an enclosed, walk-in storage space of less than 3,000 square feet and that are refrigerated to temperatures above, at or below 32 degrees F, respectively. The standards would exclude products that are designed and marketed exclusively for medical, scientific or research purposes. For consumers, the tax credits apply to home energy efficiency improvements, including windows, insulation, doors, roofs, and heating and air-conditioning equipment. Consumers can receive a tax credit of up to $500 per improvement. Businesses are eligible for tax credits for buying hybrid vehicles, for constructing energy-efficient buildings and for improving the energy efficiency of commercial buildings. The tax credit amount varies, depending on the improvement. Executive Order 13123 applies to standard buildings and facilities (e.g., office buildings, retail stores, schools, churches, multi- and single-family residences), as well as industrial, laboratory, research and other energy-intensive buildings. For example, industrial, laboratory, research and other energy-intensive buildings must reduce energy consumption by 25 percent by 2010. The Executive Order also states that 2.5 percent of all federal facilities’ electricity consumption must come from renewable energy sources. The U.S. House and Senate must iron out different versions of the legislation before it can be enacted. www.ari.org; www.aceee.org U.S. Department of Energy (DOE) Energy Policy Act of 2005 Signed by President Bush in 2005, the act offers consumers and businesses federal tax credits for purchasing fuel-efficient hybridelectric vehicles and energy-efficient appliances and products. Home tax credits applied to improvements made between January 1, 2006 and December 31, 2007. However, some tax credits were extended beyond 2007. In addition to federal tax credits, consumers may be eligible for state tax incentives or rebates. www.energy.gov/ taxbreaks.htm U.S. Department of Energy (DOE) Executive Order 13123: Greening the Government through Efficient Energy Management Signed by President Clinton in June 1999, Executive Order 13123 calls for federal agencies to improve the energy efficiency of their buildings, promote the use of renewable energy and reduce greenhouse gas emissions associated with energy use in their buildings, among other energy-related requirements. Federal agencies are still required to comply with Executive Order 13123. http://www1.eere.energy. gov/femp/pdfs/eo13123.pdf Danfoss Adds Series of Regional, Micro Symposia to 2008 EnVisioneering Symposia Lineup Regional Events Will Focus on Topics Especially Relevant to Specialists, Key Players in Select Industries For the past two years, Danfoss has convened some of the most influential stakeholders in the global energy efficiency challenge. In 2006 and 2007, the stakeholders met a total of six times to exchange ideas, information and insights—and began to craft solutions—as part of the Danfoss EnVisioneering Symposia Series. In 2008, Danfoss will once again host the EnVisioneering Symposia Series, but this time with a new twist. Danfoss will add a series of regional, “micro” symposiums to its lineup of national, “macro” events. The regional events will bring together specialists and key players in select industries, and focus on topics that are especially relevant to those industries. “Danfoss is taking the program to an even higher level, with a series of micro symposiums designed to give stakeholders unique ideas and solutions to address energy efficiency challenges on their terms, ” said John Galyen, president of Danfoss Refrigeration and Air-Conditioning, North America. The theme for the 2008 EnVisioneering Symposia Series is “Breakpoint: Energy Efficiency at a Crossroads. It will explore ” the energy efficiency challenge from 30,000 feet and ground level, seeking out the experience, best practices, insights and discoveries that can help decision-makers meet the demands of the energyefficient built environment. 10 www.envisioneering.danfoss.com 11 Save These Dates for 2008 Symposia Events 2008 marks the third consecutive year in which Danfoss will host the EnVisioneering Symposia Series. Two national, “macro” events have already been determined, while several regional, “micro” events are in the planning stages. Below is a tentative schedule—please save these dates: National Symposium 7— “Is the Tide Turning? The Future of Energy and Energy Efficiency Strategy,” April 4, Washington, DC. This macro event will address whether the world has reached a tipping point on energy and efficiency strategy. National Symposium 8— “The Challenge of Innovation: What the Private Sector Needs to Create a 21st Century, Energy-Efficient Built Environment,” November 7, Carlsbad, CA. To be held in conjunction with the Air-conditioning, Heating and Refrigeration Institute’s annual meeting, this symposium will address how energy efficiency technology is creating novel possibilities—and positive returns on investment—in the built environment. For continuing updates on the 2008 EnVisioneering Symposia Series, please visit www.envisioneering.danfoss.com/symposium. As in the past, the 2008 EnVisioneering Symposia Series will tackle a variety of tough questions, such as: ■ What is working in critical vertical markets—food and restaurants, hotel and office buildings, data centers, hospitals and education? What slows technology deployment in those markets, and how can obstacles be disarmed? Are product- or systems-based deployment strategies more effective in energy efficiency, first cost and return on investment? Can “green” buildings drive deployment or is a more strict energy focus required? What are the right metrics, do they vary, and how can standards be set? How will technological uncertainties (e.g., refrigerants) and environmental shifts (e.g., drought and water shortages) impact the business-energy equation? Why will leaders in industry and finance navigate new routes to advanced energy efficiency? ■ ■ ■ ■ ■ ■ “Our hope for the 2008 EnVisioneering Symposia Series is that all stakeholders will continue to play a significant role in our discussions and help drive energy efficiency solutions,” Galyen concluded. Presorted Standard US Postage PAID TImonium, MD Permit No. 90 2 0 0 8 C A L E N D A R O F E V E N T S SM H O W T O C O N TAC T DA N F O S S BALTIMORE, MD 7941 Corporate Drive, Baltimore, MD 21236 410-931-8250 / Fax: 410-931-8256 www.danfoss.com/North_America ■ Refrigeration & Air–Conditioning ■ Industrial & Heating Controls GLENS FALLS, NY 15 Pruyn’s Island Drive, Glens Falls, NY 12801 800-833-2040 / Fax: 800-314-3155 E-Mail: flomatic@flomatic.com www.danfossflomatic.com ■ Water Controls LOVES PARK, IL 4401 N. Bell School Road, Loves Park, IL 61111 815-639-8600 / Fax: 815-639-8000 www.namc.danfoss.com ■ Drives; Industrial Sales MILWAUKEE, WI 8800 W. Bradley Road, Milwaukee, WI 53224 414-355-8800 / Fax: 414-355-6117 www.namc.danfoss.com www.na.water.danfoss.com ■ Graham HVAC ■ Water & Wastewater ■ Nessie Water Hydraulics MISSISSAUGA, ONT 6711 Mississauga Rd., Suite 410, Mississauga, Ontario L5N 2W3 905-285-2050 / Fax: 905-285-2055 www.na.heating.danfoss.com ■ Heating Controls ■ Motion Controls MOUNTAINSIDE, NJ Danfoss Hago, Inc., 1120 Globe Ave., Mountainside, NJ 07092 908-232-8687 / Fax: 908-232-7246 www.hagonozzle.com ■ Components for Oil Burners SOMERSET, NJ 31 Schoolhouse Road, Somerset, NJ 08873-1212 732-469-8770 / Fax: 732-469-8773 www.danfoss.com/drives/us ■ Gearmotors TALLAHASSEE, FL Danfoss Turbocor 1769 Paul Dirac Drive, Tallahassee, FL 32310 850-504-4800 www.turbocor.com ■ Oil-Free Compressors for Refrigeration and Air-Conditioning Please mention that you read about the event in Danfoss EnVisioneering Insights January 2008 AHR—Air-conditioning, Heating and Refrigeration Expo January 22–24, 2008 Javits Convention Center New York, NY www.ahrexpo.com Johnstone Supply Annual Meeting and Trade Show September 19–21, 2008 Chicago, IL www.johnstonesupply.com March 2008 ConExpo/International Fluid Power Expo March 11–15, 2008 Las Vegas Convention Center Las Vegas, NV www.conexpoconagg.com RETA—Refrigerating Engineers and Technicians Association September 24–26, 2008 Hershey Lodge and Convention Center Hershey, PA www.reta.com IIAR—International Institute of Ammonia Refrigeration March 16–19, 2008 Broadmoor Hotel Colorado Springs, CO www.iiar.org October 2008 HARDI—Heating, Air-conditioning and Refrigeration Distributors International October 25–28, 2008 JW Marriott Desert Ridge Resort and Spa Phoenix, AZ www.hardinet.org CMX/CIPHEX March 27–29, 2008 Metro Toronto Convention Centre Toronto, Canada www.cmxciphexshow.com November 2008 IHACI—Institute of Heating and Air-Conditioning Industries November 19, 2008 Pasadena Convention Center Pasadena, CA www.ihaci.org September 2008 Comfortech September 10–13, 2008 Georgia World Congress Center Atlanta, GA www.hvaccomfortech.com RSES Annual Conference September 16–20, 2008 Hilton Hotel Indianapolis, IN www.rses.org www.envisioneering.danfoss.com