Saving Money ThroughEnergy Efficiency

An Overview of Energy Policy Actand the Utility Company Incentive

Programs

Eric W. Sank, P.E., RCDD.

Design Collaborative, Inc.

October 25, 2012

2005In an attempt to combat growing energy problems, Congress passes The Energy Policy Act, providing tax incentives and loan guarantees for energy production of various types.

3 Areas- Lighting- Building Envelope- HVACMaximum Deduction- $.60/ft2

($1.80/ft2

total for all 3) Renovated Area Up to Total Material Cost

2 Methods to Qualify1. Building-wide Energy Model - largest deduction, more complicated to certify

2. Interim Lighting Method - simpler to calculate, better suited for lighting retrofits

Building-Wide Energy Model

- ASHRAE/IESNA Standard 90.1- Requires software modeling of building energy usage

Compliance

- ASHRAE/IESNA Standard 90.1

Interim Lighting Method- Out with the old…

Requirements

- Consumption & Building Type

EPACT Deduction- How do I qualify?40%

>25%PRO-RATED

ASHRAE 90.1 Table 9.3.1.1Lighting Power Densities Using The Building Area MethodBuilding Area Type Building Area Type

1989 1999 2001 2004 1989 1999 2001 2004Automotive Facility 0.96 1.5 1.5 0.9 Multi-Family 1.15 1 1 0.7Convention Center 2.07 1.4 1.4 1.2 Museum 2.07 1.6 1.6 1.1Court House 1.44 1.4 1.4 1.2 Office 1.26 1.3 1.3 1Dining: Bar Lounge/Leisure 1.37 1.5 1.5 1.3 Parking Garage 1.03 0.3 0.3 0.3Dining: Cafeteria/Fast Food 1.37 1.8 1.8 1.4 Penitentiary 1.44 1.2 1.2 1Dining: Family 1.37 1.9 1.9 1.6 Performing Arts Theatre 2.07 1.5 1.5 1.6Dormitory 1.15 1.5 1.5 1 Police/Fire Station 1.44 1.3 1.3 1Exercise Center 2.07 1.4 1.4 1 Post Office 1.44 1.6 1.6 1.1Gymnasium 2.07 1.7 1.7 1.1 Religious Building 2.07 2.2 2.2 1.3Healthcare Clinic 1.44 1.6 1.6 1 Retail 2.25 1.9 1.9 1.5Hospital 1.44 1.6 1.6 1.2 School/University 1.29 1.5 1.5 1.2Hotel 1.15 1.7 1.7 1 Sports Arena 2.07 1.5 1.5 1.1Library 1.29 1.5 1.5 1.3 Town Hall 1.44 1.4 1.4 1.1Manufacturing Facility 0.96 2.2 2.2 1.3 Transportation 2.07 1.2 1.2 1Motel 1.15 2 2 1 Warehouse 1.03 1.2 1.2 0.8Motion Picture Theater 2.07 1.6 1.6 1.2 Workshop 0.96 1.7 1.7 1.4

Lighting Power Density (W/sq ft) Lighting Power Density (W/sq ft)

EPACT Deduction- How do I qualify?

Lighting Controls

- ASHRAE 90.1 (2001) - Bi-Level Switching

Additional Savings Methods

- Rebates/incentives through local power company- Fixed rebates or custom incentive packages

Utility Co. Incentives

Restaurant & Grocery Audit Program- Free audit of refrigeration system- Incentives for:

Automatic door closersLED case lightingMotion sensor on case lightingNight covers

Utility Co. Incentives

Commercial & Industrial Incentives- Custom program, tailored to individual customers- Retrofit only, new construction does not qualify- Must save at least 100,000 kwh/yr- Rebate of $.05 per kwh saved

Utility Co. Incentives

Commercial & Industrial Rebates- Administered by 3rd party (Energizing Indiana) for several utilities throughout the state—I&M, Duke, NIPSCO, & others- 3 Rebate areas: Lighting, HVAC, & Food Service Equip.

Lighting - replace T12 or HID light fixtures - no LED rebates (yet)

HVAC - min. efficiency of HVAC equipment, add VFDs

to motorsFood Service – Replace with energy star

equipment-New construction qualifies for rebate

Baseline is minimum design that meets building &

energy codes

Additional Savings Methods

Utility Co. Incentives

Emergency Demand Respond Rider- Customer agrees to reduce demand at critical times and receives monthly payment from I&M- Minimum 250 kva reduction- Benefit for customers with generator backup- $2.50/kw/month

Utility Co. Incentives

HVAC Rooftop Tune-Up- Incentivesfor adding economizer, CO2 sensors, multi-stage cooling

Certification & Documentation

- Site Visit- Calculations- Fixtures- Saving

Example- 200’x 200’ Warehouse- Existing 400 watt Metal Halide Hi-Bays @ 25’ O.C.

64 qty @ 456 watts/ea = 29,184 watts26.1 footcandles, .73 watts/sq ft.29,184 w @ 7.6¢/kwh @ 14 hrs/day =

$31.05/day or $11,333.00/yr

Example- Replace 1 for 1 With 6-lamp T5HO Fluorescent Hi-Bays + Dual Level

Switching + Instant On + Less Lumen Loss + Longer Lamp Life

64 qty @ 361 w/ea = 23,104 watts34.0 footcandles, .58 watts/sq ft.23,104 w @ 7.6¢/kwh @ 14 hrs/day =

$22.67/day or $8,273.00/yr

Example- Replace 1 for 1 with (6) T5HO Fluorescent Hi-Bays + Switching + Instant On + Lumen Loss + Lamp Life

64 qty @ 361 w/ea = 23,104 w & 34.0 f.c.23,104 w @ 7.6¢/kwh @ 14 hrs/day =

$22.67/day or $8,273.00/yr

$3,060/yr SAVINGS OF

SAVINGS- 24 hour operation savings$5,245/yr- Reducing the number of new fixtures to maintain current light levels leads to…

@14 hrs/day $5,541/yr@24 hrs/day $9,500/yr

TAX SAVINGS/TOTAL COSTMaterial costs (assume in-house labor) -$11520Tax Savings Max. Allowable – 40,000 ft2 × $.60$24,000 Actual Cost $11,520 Allowable Deduction$11,520 Typical Corporate Tax Rate 30% Tax Savings $3,456 I&M Rebate $51/fixture x 64 $3,264 Total Initial Savings +$6,720

TOTAL COST $4,800

1 FOR 1 REPLACEMENT@ 14/day operation, payback = 1.6 yrs@ 24/day operation, payback = .9 yrs

W/ EXISTING F.C. LEVELS (30% Fixture Qty Reduction)

@ 14/day operation, payback = .6 yrs@ 24/day operation, payback = .4 yrs

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Saving Money ThroughEnergy Efficiency

An Overview of Energy Policy Actand the Utility Company Incentive

Programs

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