Getting Greener Low Costs Way to Improving Energy Efficiency in Your Business

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Getting Greener Low Costs Way to Improving
Energy Efficiency in Your Business

• Steve Kiesner
• Director, National Customer Markets
• Edison Electric Institute
• Smart Green Conference
• July 18, 2008

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Energy Landscape

• Supply margins are declining and demand is
  increasing
• Need significant infrastructure investment but
  costs increasing rapidly
• 750 -900 Billion Exceeds current capitalization
  
• Major baseload generation and transmission is
  needed asap
• No longer a declining cost industry
• Fuel, infrastructure components
• Global industrialization and competition
• Increasing concerns about the environment
• Need to accelerate development and deployment of
  new technologies
• Energy efficiency is viable option
• Low hanging fruit for Climate Change

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Demand Projected To Increase 30 by 2030
Billon kiloWatthours
Sources U.S. Department of Energy, Energy
Information Administration, Annual Energy Review
2006 and Annual Energy Outlook 2008 Early
Release Electricity demand projections based on
expected growth between 2006-2030
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Some Causes for Rising Demand

• Increasing population 11.18 in 10 years
• Increased economic growth 50.1 in 8 years
• Increased number of homes with central A/C 49
  in 9 years
• Plug-in loads
• Average US household owns 26 consumer electronics
  products
• What do you have in your business plugged that
  wasnt there 10 years ago?
• Commercial facilities are much bigger and have
  more energy intensive

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Find the Low Hanging Fruit Get
Started Know Where You are Consuming
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Get StartedKnow Where Your Electricity is Being
Consumed

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Get StartedKnow Where Your Energy is Being
Consumed

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Get StartedKnow Where Your Energy is Being
Consumed

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Find the Low Hanging Fruit Review Operations,
Maintenance, and Procedures
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Understand Your Energy UsePay close attention to
the habits and procedures of Staff

• HVAC
• Monitor outside air temperature
• Are you heating and cooling at the same time?
• Can I control my HVAC system by time of use?
• Whats on that doesnt need to be? Whats
  leaking? Whats open?
• LIGHTING
• Check Lighting Levels Are you over-lit? (check
  IES guidelines)
• Check when they are being used
• Use automated lighting controls (photocells,
  timers, dimmers, motion detectors)
• Refrigeration
• Are my grills clear of products, storage items?
• I am over-cooling?
• Are my temperature and pressure settings lower
  than necessary?
• Are my condenser coils in a cool place?

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Observe Your Operations (2)Pay close attention
to the habits and procedures of Staff

• Food Preparation Areas
• Are my food warmers/cooking equipment on only
  when necessary?
• Do I have to preheat cooking equipment all the
  time?
• Are my cooling fans directed towards workers and
  not the cooking equipment?
• Can I stagger turn-on times for equipment to
  avoid a demand spike?
• Can I cook some foods during off-peak periods?
• Is my water temp too high? (check local codes for
  acceptable sanitation level )
• Is my refrigerator far enough away from the
  cooking equipment?
• Are my refrigerator temps higher than necessary
  (check local codes)?
• Can I locate my refrigerator condenser coils in
  cooler place?

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Observe Your Operations (3)Pay close attention
to the habits and procedures of Staff

• Office and Miscellaneous Equipment
• Are copiers, registers, coffee machines, space
  heaters, computers left on?
• Are they Energy Star?
• How can we follow the 3 Rs of sustainability?
  Reduce. Reuse. Recycle. Reduce waste? Reuse
  furniture? Flooring? Recycle paper, plastics,
  glass and aluminum?
• Laundry
• Can I wash and dry during off peak hours?
• Are we laundering full loads?
• Are we keeping the door to keep conditioned air
  out of laundry area?
• Are our dryers levels for best operation?
• Are we keeping lint filters in dryers and exhaust
  hoods clean?
• Can we use heated water less, only in wash cycle?
• Should we purchase newer, moisture sensing
  dryers?

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Ensure Maintenance

• Refrigeration
• Check for proper fan motor operation
• Clean coils, replace worn seals, defrost
  regularly
• Redirect any HVAC outlets discharging into
  refrigerated fixtures
• Keep in mind that commercial refrigeration
  systems are much more efficient than just ten
  years ago. Look for EnergyStar
• Lighting
• Clean lamps for maximum illumination
• Group re-lamp
• Replace/repair broken fixtures CFL, LED lighting
• Change exit signs over to LED, consider changing
  your store sign as well.

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Ensure Maintenance (2)

• HVAC
• Check for ductwork leaks and seal them if
  necessary
• Check condition of windows and doors (Tax
  Deduction expires this year)
• Clean filters and allow free air-flow to grills
• Seal unused building openings
• Weather strip doors and windows, caulk cracks
• Clean boilers and condenser coils
• Food Service
• Clean and polish heat reflectors
• Clean burners and check regularly
• Recalibrate boiler thermostats
• Repair leaky faucets

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Establish Procedures (1)

• HVAC
• Dont heat/cool in low traffic areas or
  unoccupied areas
• Adjust building temperature by season, lower in
  winter higher in summer.
• Utilize
• Weather strip doors and windows, caulk cracks
• Cover and lock thermostats and ventilation
  controls to prevent unauthorized adjustments
• Clean boilers and condenser coils
• Food Service
• Clean burners and check regularly
• Recalibrate boiler thermostats
• Repair leaky faucets

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Establish Procedures (2)

• Refrigeration
• Follow manufacturers recommendations for shelf
  position
• Dont overstock
• Do not let refrigerated items sit and warm-up
  during delivery or re-stocking
• Food Service
• Establish a start-up policy to avoid demand
  charges
• Cook food in large volumes if possible
• Minimize use of rangetops, griddles, and broilers
  by using ovens, steamers, fryers, and microwave
• Load and unload ovens quickly
• Shut off exhaust hoods when not in use
• Run dishwasher in full loads
• Dont overload refrigerators
• Cool items on counter before refrigerating

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Establish Procedures (3)

• Office/Miscellaneous/General
• Strictly enforce computer, copier, etc. shut-off
• Let associates know what energy means to the
  bottomline and environment
• Involve them in the efficiency process
• Behavioral Program at JC Penneys saved the
  company 5 in energy costs!!!!
• Ownership
• Empowerment
• Recognition
• Rewards
• Sustaining

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Monday-Thursday First Shift-530AM to 230
PM Second Shift-330PM to midnight
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Take Advantage of Tax Incentives

• Options for federal tax incentives in 2008
• Commercial Building Tax Deduction
• 0.60 / square foot (subsystem), 1.80/sf whole
  bldg
• Real Property
• Small Business Section 179
• 250,000 (first year write off), up to 800,000
• All Business 50 Bonus Depreciation
• (both for personal property)

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Steve Kiesner202-508-5414skiesner_at_eei.orgwww.ee
i.org/na
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Appendix
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New / Updated Tax Incentives (1)

• Economic Stimulus Act of 2008 (HR 5140)
• Signed by President Bush February 13, 2008.
• Includes personal tax incentives (600 per person
  max, 1200 per couple, 300 per child)
• Two Business tax incentives of note.

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New / Updated Tax Incentives (2a)

• Small Business Section 179 Tax Deduction
  (equipment falls under this)
• Pre 2007 law 2007 Values were
• Expense 112,000, phaseout starts at 450,000
• Econ Stimulus Act of 2008 2008 (only) Values
• Expense 250,000, phaseout starts at 800,000

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New / Updated Tax Incentives (2b)

• 50 Bonus Depreciation, for any size business
• Only for equipment placed in service between
  January 1, 2008 and December 31, 2008
• For tangible personal property like Sect. 179

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Tax Incentives (2c)

• Dont forget the Commercial Building Tax
  Deduction from EPACT 2005!
• For real property (any component of a building,
  such as lighting, HVAC, and envelope)
• Started August 2005, runs to December 31, 2008.
• 1.80 per square foot, or 0.60 per square foot
  for any sub-system (ltg, HVACWH, envelope)