Development of Utilities Conservation Programs and Cost Effective Analysis

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Development of Utilities Conservation Programs
and Cost Effective Analysis
June 15, 2009

• Sheldon Strom
  Russ Landry, PE, LEED AP
• Executive Director Mechanical
  Engineer
• Center for Energy and Environment212 North 3rd
  Ave, Suite 560Minneapolis, MN 55401
• 612-335-5858
• www.mncee.org

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Excerpts from SB 2030 Legislation216B.241 Subd.
9 Cost Effectiveness

• A performance standard must not be established
  or increased absent a conclusive engineering
  analysis that it is cost-effective based upon
  established practices used in evaluating utility
  conservation improvement programs.

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Cost Effectiveness Analysis for SB 2030Recently
Compiled Results

• Key Observations
• Savings in ballpark of SB2030 can be
  cost-effective for a variety of buildings,
  although less so for some
• No clear patterns of reduced cost-effectiveness
  as savings increases
• Utility programs could make SB2030 standards more
  cost-effective to building owners ( still
  cost-effective to utilities) with larger
  incentives

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Excerpts from SB 2030 Legislation216B.241 Subd.
9 CIP Programs

• (e) The commissioner shall require utilities to
  develop and implement conservation improvement
  programs that are expressly designed to achieve
  energy efficiency goals consistent with the
  Sustainable Building 2030 performance standards.
  These programs must include offerings of design
  assistance and modeling, financial incentives,
  and the verification of the proper installation
  of energy-efficient design components in new and
  substantially reconstructed buildings.

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CIP Program Design Support

• Major goals/challenges for CIP programs related
  to SB 2030 standard
• Creating incentives for reaching SB2030 standards
  within existing design assist-ance programs
• Building comprehensive design assistance programs
  for additional service territories
• Establishing comprehensive effective CIP
  program(s) for small buildings

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Ideas for Possible CIP Program Elements

• For large buildings, create or enhance
  comprehensive design assistance
• Bonus incentive for SB2030 buildings (e.g.
  gt/kWh)
• Incentives for meeting whole building
  prescriptive approach for small building
  (SB2030 Steering Committee will evaluate options
  further)
• Incentives to offset increased design team fees
  for participating projects
• Bonus incentives based on measured energy use
• Incentives for commissioning
• Incentives for operator training
• Partnerships between utilities

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Next Steps Related to CIP Programs

• Research development of small building program
  template
• Work with utilities on new strategies and pilot
  programs
• Submit supportive CIP plan comments
• Cooperate with utilities on filings
  modifica-tions for 2010 beyond
• How can our team help utilities?