Energy Audits and the Need For Energy Management

Energy Audits and the Need For Energy Management

 

We are facing three major problems that are national priorities for most of North America. To obtain an energy efficient economy we need to:

  1. Improve Environmental Quality by reducing global warming and acid rain.
  2. Increase our Economic Competitiveness by reducing costs and creating jobs.
  3. Develop Energy Security by reducing oil imports and balance of payments.

 

TQM & Energy Management

 

Total Quality Management is an integrated approach to operating a facility.  Energy cost control should be part of the overall TQM program.

 

TQM is based on the principle that front-line employees should have authority to make changes and other decisions at the lowest operating levels of a facility.  Energy management is a natural part of TQM which means that employees should have energy management training to enable them to make the correct energy decisions.

 

Energy Management is the use of engineering and economic principles to control the cost of energy in buildings and industries.  Most of the savings are generated from improvements in energy efficiency while some savings can be realized from changing the patterns of energy use and possibly shifting energy sources.

 

Energy Cost Savings are based on three main methods with percent of savings

  1. No-cost actions and maintenance equals 5 to 15 % savings
  2. Low-cost or short pay back actions equal 15 to 30 % savings.
  3. Higher-cost or longer pay back actions equals 30 to 50 % savings.

 

Energy Codes and Standards

 

Energy Policy Act  1992

  1. States must establish more stringent building energy codes
  2. Established minimum efficiency standards for commercial size HVAC equipment, electric motors and lamps.
  3. Requested private sector to establish standards for windows, office equipment, and luminaires ( if not DOE would do it)
  4. Allowed federal agencies to sign long term performance contracts – up to 25 years long
  5. Required Federal agencies to install by Jan 1, 2005 all energy and water conservation measures with payback periods of less than 10 years.

 

Energy Policy Act of 2005

  1. First piece of national energy legislation since EPACT92. Signed Aug 8, 2005 by the President and effective Jan 1, 2006.
  2. Major thrust is energy production
  3. Significant impact on Federal Energy Management

Federal Energy Management was important because:

  1. Largest energy uses in US
    1. 1.6% of US energy use
    2. About $10 billlion energy budget.
  2. Largest Product User – $6 billion fir energy using products, vehicles and equipment.
  3. Federal sector leads by example.
  4. Source of data is Alliance to Save Energy – Joe Loper

 

Goals for Energy Managers

 

  1. Annual energy reduction goal of 2 % from FY 2006 – FY 2015
  2. Baseline changed from 2001 to 2003
  3. Savings retained by agency
  4. Electric metering required in all Federal Buildings by 2012
  5. Energy Star and FEMP- recommended products procurement requirement
  6. Energy efficient specs required in procurement bids and evaluations
  7. Energy efficient products in Federal catalogs; Energy Star or FEMP-recommended products by GSA and Defense Logistics Agency
  8. ESPCs reauthorized through Sept 30, 2016

 

ESPCs

The federal government spends billions of dollars on energy costs each year, and financing large-scale projects can be prohibitively expensive for a federal agency. Congress authorized Energy Savings Performance Contracts (ESPCs) to encourage federal agencies to become more energy-efficient and to reduce their energy costs. ESPCs enable agencies to improve energy efficiency—reducing energy use and costs—through private investments.

An ESPC is an agreement between a federal facility and an Energy Services Company (ESCO). The ESCO designs a project to increase the energy efficiency at a facility. The ESCO then purchases and installs the necessary equipment, such as new energy-efficient windows, automated controls, and updated heating, ventilation, and air conditioning equipment. In exchange for not having to pay for the equipment, the federal agency promises to pay the company a share of the savings resulting from the energy efficiency improvements. The ESCO is responsible for maintaining the equipment, as well as measuring the energy consumption and savings.

Tax Provisions for Conservation and Energy Efficiency

  1. Residential – solar photovoltaic and hot water heating systems
  2. Commercial – highly efficient buildings
  3. New Homes – highly efficient new homes
  4. Improvements to existing homes including high efficiency air conditioners and equipment.
  5. Residential fuel cell systems
  6. Fuel cell and microturbines used in a business.

There is an important difference between a tax deduction and a tax credit. A tax deduction is subtracted from income before total tax liability is computed.  The tax credit is three or more times advantageous to the taxpayer than the deduction.

 

What’s the difference between energy codes, energy standards, and a model energy code?

Energy codes – specify how buildings must be constructed or perform and are written in mandatory, enforceable language.  States or local governments adopt and enforce energy codes for their jurisdictions.  Residential and commercial energy codes typically include requirements for these types of systems:

·       building envelope,

·       mechanical,

·       service water heating, and

·       lighting and electrical power.

Energy standards  – describe how buildings should be constructed to save energy cost-effectively.  They are not mandatory, but serve as national recommendations with some variation for regional climate.  States and local governments frequently use energy standards as the technical basis for developing their energy codes.  Some energy standards are written in mandatory, enforceable language, making it easy for jurisdictions to incorporate the provisions of the energy standards directly into their laws or regulations.  Residential and commercial energy standards typically include requirements for these types of systems:

·       building envelope,

·       mechanical,

·       service water heating, and

·       lighting and electrical power.

The International Code Council (ICC) publishes and maintains the International Energy Conservation Code (IECC), which is a model energy code that makes allowances for different climate zones.  Because it is written in mandatory, enforceable language, states and local jurisdictions can easily adopt the model as their energy code.  Before adopting the IECC, state and local governments often make changes to reflect regional building practices.

 

What organizations are involved in the development of energy codes and standards?

There are several stakeholder groups involved in the development of energy codes and standards, but the major players include: the Department of Energy (DOE), the International Code Council (ICC), the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE), and the National Fire Protection Association (NFPA).

Summary

·       Energy codes specify how buildings must be constructed or perform.

·       Energy standards describe how buildings should be constructed to save energy cost-effectively.

·       Residential and commercial energy codes and standards typically include building envelope, mechanical, service water heating, and lighting and electrical power requirements.

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