Focus on EnergyBusiness Programs Update

WIEG Annual Business Meeting

Point Beach Nuclear Power PlantJune 24, 2009

Tim Dantoin

Industrial Program

920-435-5718

dantoint@saic.com

Focus on Energy

Program Mission

Accelerate energy efficiency in Wisconsin by supporting projects that

otherwise would not be completed

Why Focus on Energy?

• Approx 2/3 of each energy $1 leaves Wisconsin

• Efficient businesses are more competitive

• Wisconsin’s home owners & businesses save more than $239m annually with Focus programs

• Preparing for a “carbon constrained” economy

Focus on EnergyPrograms

•Residential (single and multi-family)

•Renewable Energy

•Business• Schools & Government• Commercial• Industrial• Agricultural

Target SectorsPulp & PaperFood ProcessingMetal CastingPlasticsWaste & Wastewater

Industrial Energy In Wisconsin

Electricity24,329 GWh

Natural gas1.4 Trillion therms

Industrial market35% of total energy

Industry Electricity Nat. Gas

Pulp & Paper 30% 18%

Food & Dairy 13% 18%

Metal Casting 10% 12%

Chemicals 5% 10%

Printing 4% 2%

Glass 1% 5%

Other Industrial 37% 35%

Focus on EnergyIndustrial Program

Over 2,000 industrial

facilities have participated

Technical• Facility-wide assessments• System assessments• Project-specific assessments• Industrial Best Practices• Emerging Technologies• Facilitated Energy Management• Training & Awareness

Financial• Prescriptive Incentives• Custom Incentives• Study Grants• Service Grants• Renewable • New Construction• Special Incentives• Special Promotions

Focus on EnergyAssistance

www.focusonenergy.com/Incentives/Business

Prescriptive Grants

• HVAC• Chillers• VFD

• Compressed Air• Food Service• Specialty Measures

• Fixed incentive rate per unit (e.g. $50 per Hp)

• Incentive paid after project completion

• Does not require involvement of Focus EA

• Lighting• Motors• Boiler Combustion

Incentive Rate Depends on Technology

Tier 1($0.04 per kWh + $125 per kW or $0.40 per therm)

Tier 2 ($0.06 per kWh + $200 per kW or $0.60 per therm)

Criteria No. 1Under 4 Yrs w/o Grant

Criteria No. 2Over 1.5 Yrs with Grant

Criteria No. 3Grant < 30%

of Project Cost

Criteria No. 4Grant > 10%

of Project Cost

Max Grant => $250,000

Custom Grants

“Window ofOpportunity”

Grant must be approved before project begins

Study Grants

• Assistance for quantifying potential savings opportunities

• Must work with a Focus advisor

• Must be approved prior to undertaking the study

• Metering projects may qualify

• Up to 50% of study cost

• No more than 10% of the potential energy savings

• Maximum of $7,500

• Will consider larger grants for larger studies

Service Grants

• Burner Tune Up• Steam Trap Repair

• Intended to jump-start routine maintenance

• Fixed incentive rate up to % of service cost

• Incentive paid after service completion

• Does not require involvement of Focus EA

• Chiller Tune Up• Compressed Air Leaks

Service Grants• Burner Tune Up

• Lesser of 1) $100 x No. of Burners or 2) 50% of Service

• Steam Traps Repair• Lesser of 1) $50 x No. of Traps Repaired / Replaced or 2) 50% of

Service

• Chiller Tune Up• Lessor of 1) $2 per ton (<500 tons) or $1 per ton (>500 tons), 2) 50%

of Service, or 3) $1,500

• Compressed Air Leak Detection• 50% of detection service up to $500 < System 250 hp < $1,000• Remaining 50% for leak repair

Renewable for Business

• Biomass Combustion

• Biomass Digestion

• Solar Electric

• Solar Water Heating

• Distributed Wind

Renewable• Site Assessments – gauges site suitability

• Feasibility Studies Grants – more in depth consideration of savings and costs

• Development Grants – support for larger systems

• Installation Incentives• Cash Back Rewards• Implementation Grants

New Construction

• Help customers incorporate energy efficiency into new buildings, additions or major renovations

• System Incentives• Similar to Prescriptive Grants for existing facilities

• Design Incentives• Pre-approval required

• $2,000 for Daylighting

• $2,000 for Geotherma Systems

• $3,000 for Building Energy Simulation

Special IncentivesIncentive options that offer flexibility for businesses

• “RFP” programs: businesses can “bid” on incentives needed to complete a project

• Started in Industrial Sector, now available in Commercial, Schools/Government and Ag sectors

• Financial needs must be documented and winning proposals are selected on competitive basis

Special IncentivesIncentive options that offer flexibility for businesses

• “Retrocommissioning (RCx): currently in the commercial sector; offers incentives to “tuneup”buildings and ensure all systems are operating efficiently

• Buildings can reduce energy use up to 30%• Pilot effort underway in Schools/Gov sector; will likely be

offered to a wider audience after this is completed• Industrial team taking a systems optimization approach,

targeting specific systems instead of whole building; first system is expected to be compressed air.

Special IncentivesIncentive options that offer flexibility for businesses

• Staffing Grants: initiative that funds the staff time required to get energy efficiency projects implemented

• Must submit proposals with project lists to be completed

• Applications reviewed on proposed energy savings of project, need for funding and life of the project savings

• Competitive review of proposals

• Efficiency projects may be eligible for implementation incentives as usual

Special PromotionsBonus incentives to engage market as needed

Thus far in 2009

• PC Network Energy Management

• Lighting: T12 “bounty”, high bay fluorescent, sensors

• Change-A-Light CFL promotion

• Commercial Refrigeration System Tune-Up

• Variable Frequency Drives

• Chiller Tune-Up

Technical• Facility-wide assessments• System assessments• Project-specific assessments• Industrial Best Practices• Emerging Technologies• Facilitated Energy Management• Training & Awareness

Financial• Prescriptive Incentives• Custom Incentives• Study Grants• Service Grants• New Construction• Renewable• Special Incentives• Special Promotions

Focus on EnergyAssistance

Best Practice Technologies

• Off-the-shelf, market-proven technologies

• Little or no perceived technological risk

• Focus incentives promote deployment

Common Industrial BP’s

Lighting

- Upgrade to T8 Fluor.

- Occupancy Sensors

Compressed Air- Repair Leaks- Reduce Pressure- Eliminate Inappr. Use- VSD Compressors- Waste Heat Reuse

Pumps & Fans- Right-size Motors- Variable Speed Control

Ventilation- Air Balance- Reduce Vol. of O.A.- System Controls

BP Sector Guidebooks

• Pulp & Paper (pulping rotors)

• Dairy Processing (floating head pressure)

• Plastics Industry (ceramic barrel heaters)

• Water & Wastewater (fine bubble diffusion)

• Metal Casting (reduce scrap)

Process Specific Opportunities

www.focusonenergy.com/Business/Industrial-Business/Guidebooks/default.aspx

Emerging Technologies

• Technologies that have not been adopted in Wisconsin

• Real or perceived technical risk

• Eligible for FOCUS incentives as well

• Investment or shared savings available through CleanTech Partners (CTP)

…in Theory

• Management Commitment…

• Energy Champion…

• Energy Policy…

• Energy Team…

• Measure & Monitor…

• Report & Communicate…

• Set Energy Savings Goal…

• Implement Projects…

…in Practice

…Management Concern

…Another “Hat” for Someone

…Nice Words – No Teeth

…Another &*#@ Meeting ! !

…No Payback on Sub-Meters

…Monthly Actual vs. Budget

…Based on What ?

…No Support

Facilitated Energy Management

Facility ProfileEnergy in Business Context

ElectricityPropane

NaturalGas

No.2 Oil

Total Btu’s

3.14%% Increase in Profits with 5%

Reduction in Energy Costs

62.75%Energy as % of Profits

$3,450,000Annual Profits

6.46%Energy as % TF Costs

$33,500,000Total Facility Costs

14.43%Energy as % Oper. Costs

$15,000,000Operating Costs

$2,164,782Total Energy Cost

(Annualized)

2006Business Indicators

$0.52Water $ p Lbs Resin

$5.29Tot Energy $ p Lbs Resin

0.339Gas MMBtu p Lbs Resin

$2.53Gas $ p Lbs Resin

0.180Electric MMBtu p Lbs Resin

$2.76Electric $ p Lbs Resin

408,858Lbs Resin

(Annualized)

2006Key Performance Indicators

Equipment Use ProfileEstimating Energy Uses

ElectricalMMBtu

Chiller #1Chiller #2Chiller #3LightingComp AirOfficeOther

e.g. “Free Cooling” Project

Save 2.5%

Opportunity ProfileBest Practices & Emerging Technologies

Chiller #1Chiller #2Chiller #3LightingComp AirOfficeOther

ElectricalMMBtu

Base Load

Variable Load

Production Level or Heating D.D.

Total Energy

Use

KPI & Energy Tracking

y = mx + b

m = energy per variable unit

b = base load

R2 = correlation coefficient

Continual Improvement

Briefings & Reports for

Senior Management

Briefings & Reports for

Senior Management

Facilitated Energy Management

Prioritized List of Energy Projects

Prioritized List of Energy Projects

Energy Management

Plan

Energy Management

Plan

EffectiveEnergy Team

EffectiveEnergy Team

It All Starts Here

• Leader usually has personal convictions on enviro. & energy

• Develop clear action plans that are regularly updated

• Address both technical and management aspects of energy

• Act as opportunities arise

• Measure existing conditions & impact of change

• Engage other employees as needed

• Focus on continual improvement

• Have effective meetings

Effective Energy Teams

Contact Information

Tim DantoinEnergy Advisor

Focus on Energy920-435-5718

dantoint@saic.com

www.focusonenergy.org