January, 2008
Jan. 23, 2008
Legal challenge to DOE efficiency standards
New York City, three states and environmental advocates charged in federal court last week that weak efficiency standards for home heating systems will strap consumers with higher energy costs.
The law suit challenges federal efficiency standards adopted in November by the Department of Energy (DOE) for residential furnaces and boilers.
“Without increased fuel efficiency, consumers nationwide will unnecessarily spend potentially millions more in home heating costs, while their furnaces and boilers spew millions more tons of harmful carbon dioxide (CO2),” said Richard Blumenthal, attorney general for Connecticut, which filed the lawsuit with Massachusetts, New York, New York City, and the Natural Resources Defense Council.
The challengers contend that tougher efficiency standards translate into significant economic benefits, especially in northern states where high energy costs create a quick payback for efficient – but more expensive – heating units.
Renters are particularly hard hit by weak efficiency standards because landlords tend to install lower-end heating units. As a result, renters pay higher heating bills than they would if they had more efficient units, according to Earthjustice, the non-profit public interest law firm that filed the legal challenge in the 2nd Circuit of the U.S. Court of Appeals.
Earthjustice says that the new DOE standards for gas-fired furnaces - the most common home heating units– increase efficiency only 2%, from 78 to 80 %. Adopting a 90 % efficiency standard would save consumers $11 billion over 24 years and prevent 141 million tons of CO2 emissions, according to the organization.
"DOE chose to implement a standard so weak it is simply meaningless," says Tim Ballo, an Earthjustice attorney. "The vast majority of products on the market already meet the standard DOE has adopted. This is a blink-and-you'll-miss-it efficiency increase."
Bundled bids fail in Maine
Maine state regulators say they have given up on trying to get competitive power suppliers and energy service companies to team up and offer “bundled” bids to serve utility customers.
In a recent report to state lawmakers, the Maine Public Utilities Commission said it asked the companies twice last year to collaborate and offer a least-cost mix of supply and demand resources. But the commission received no takers either time.
The poor showing “revealed an inability or unwillingness” of power suppliers and energy service companies to work together “in an innovative manner.” Had the companies joined forces, they could have reduced some of the business risk they face by bidding separately, according to the commission.
Maine plans to return to its old approach of seeking separate bids for supply and demand resources.
“The Report on Standard Offer Procurement for the Residential and Small Commercial Classes” is available at: http://www.maine.gov/mpuc/staying_informed/legislative/2006legislation/2007-2008ReportstoLegislature.htm.
BPA beats its regional conservation goals
The Bonneville Power Administration (BPA) exceeded its regional conservation goal of 52 MW, yielding 58.5 average MW of energy efficiency at an average cost of about $1.5 million per MW.
Conservation meets about 50% of regional load growth in BPA’s service area, says Katie Pruder, spokeswoman for the federal power marketing agency.
“Not doing energy efficiency is much more costly than the alternative, in so many ways,” she says. The $1.5 million-per-MW figure reflects a range of costs for different measures. “That is our goal, and it is cost-effective, by any standard,” she says.
The 58.5 MW would power about 50,000 homes, she says.
To achieve the savings, BPA signed contracts with member utilities, and they facilitated the EE programs. “We pay the utility, and the utility pays their end-user,” she explains.
About one-third of the energy efficiency came from encouraging the use of compact fluorescent bulbs in homes and businesses, she says. BPA partnered with the Northwest Energy Efficiency Alliance to provide coupons that reduced the cost of the bulbs. Consumers got the bulbs at some stores for as little as 99 cents.
BPA will increase its conservation goal in 2010 to 60 average MW. Its Energy Smart Design program—which aims to incorporate energy efficiency into new buildings during the design phase--will help meet that goal. A prototype “Energy Smart” office building in Vancouver, Wash. includes intelligent lighting controls and fixtures that maximize use of natural light; coated exterior windows with special shades that bring in light, but help reduce infiltration of extra heat or cold; and a high-tech heating, ventilating and air-conditioning system with extra thermostat zones.
ASHRAE book guides schools in efficient design
A newly published building design guide shows schools how to use off-the-shelf technology to cut energy bills, an expense that accounts for 16 % of their controllable costs.
“The Advanced Energy Design Guide for K-12 School Buildings” instructs building designers how to use best practices to cut energy use by at least 30 %, according to the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE), which wrote the book in partnership with the American Institute of Architects, the Illuminating Engineering Society of North America, the U.S. Green Building Council and the U.S. Department of Energy.
Paul Torcellini, chair of the committee that wrote the book, says many schools still spend more money on energy than they do on educational supplies.
ASHRAE and its partners are sending more than 14,000 free copies of the publication to school districts nationwide. The book is available for free in electronic form at www.ashrae.org/freeaedg.
Bidding opportunities
Southern California Edison (SCE) and other California utilities on Jan 24 will issue one in a series of energy efficiency RFPs.
“We have put together a statewide solicitation portal. Each utility has part of the RFP,” says Bill Grimm, manager of competitive solicitations for SCE. Each utility has a “room,” and a series of “flights,” he says. “We created the flight idea to separate all the due dates of these proposals.”
RFPs are for the 2009-2011 period. The California Public Utilities Commission
approves EE programs in three-year cycles.
The upcoming RFP—Flight 4—will involve 21 programs, he says. The programs include industrial retro-commissioning, programs for mobile homes, school retrofits, and dairy energy management programs.
To learn more about how to respond to the California RFPs, go to https://www.pepma-ca.com/ Potential bidders must first register before learning more about the RFPs.
ISO New England. Seeks forward capacity annually. Accepts bids from both supply and demand side resources. First auction February 4-8, 2008. Information: http://www.iso-ne.com/support/faq/fwd_cap_mkt/gen/index.html
The New York State Energy Research and Development
Authority (NYSERDA). Seeks firms to devise energy efficiency awareness &
strategy programs. $3.1 million in funding available. Deadline Feb. 7, 2008. RFP
#1076. Contact: Gregory Lampman,
GGL@NYSERDA.ORG,
http://www.nyserda.org/Funding/funding.asp?i=2
Puget Sound Energy. Seeks 438 MW of electric energy efficiency and fuel
conversion by 2027. Requires most of the energy savings, about 329 MW, by 2017.
Offers due Feb. 29, 2008. Contact:
EES@pse.com,
http://www.pse.com/energyEnvironment/energysupply/Pages/pse2008RFP.aspx
NYSERDA. Seeks proposals to develop, demonstrate or commercialize new energy-efficient technologies for use in industrial processes for manufacturing and agriculture. $5.5 million in funding available. Deadlines March 5, July 2 and Nov. 5, 2008. Program Opportunity Notice (PON) #1190. Contact: Miriam Pye, MEP@NYSERDA.ORG, http://www.nyserda.org/Funding/funding.asp?i=2
Would you like to alert our readers to your request for proposals or upcoming auction? Please email realenergywriters@comcast.net
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Jan. 17, 2008
Energy Trust of Oregon program seen as national model
The Energy Trust of Oregon—funded by “public purpose” funds from Oregon utilities—in 2006 met or exceeded performance measures set by the Oregon Public Utility Commission and was on track to meet them in 2007, according to the Oregon PUC (OPUC).
The nonprofit Energy Trust began operation in March 2002 after the 1999 Oregon Legislature established a 3% public purposes charge to fund renewable energy and energy conservation. The program has attracted attention from other states interested in establishing similar programs or learning about its efforts, according to the OPUC.
“Since our 2002 inception, programs have cumulatively saved 145.33 average megawatts of electricity,” says the Trust’s third quarter 2007 report. When the Trust adds savings from self-directed industrial projects, the total represents 55% of the Trust’s 300 average-MW goal for 2012.
Since the Trust’s inception, natural gas efficiency programs have saved more than 5.5 million annual therms, which represents 29% of the Trust’s goal for 2012 of 19 million therms, according to the report.
During the third quarter of 2007, electric efficiency expenditures were 11% below budget. Projects completed during the quarter were expected to save about 14 average MW at a cost of about 1.3 cents/kWh, which is below the 2 cents/kWh performance measure set by the OPUC, according to the report.
While the Trust’s efforts have been praised by environmental groups, the OPUC has received letters from a few ratepayers expressing concerns about the money the Trust spends on marketing and Energy Trust branding, according to the OPUC.
In October, the American Council for an Energy Efficient Economy, Washington, D.C., recognized the Energy Trust’s New Buildings program as an “exemplary program.” The recognition was part of a national awards program to honor America’s leading energy efficiency programs.
Portland General Electric (PGE), one of the Oregon utilities that takes part in the Trust’s efforts, expects that energy efficiency will yield 85 average MW between 2008 and 2012, according to PGE’s draft Integrated Resource Plan (IRP). PGE estimates that with additional funding from PGE, the company can achieve an additional 45 average MW of cost-effective energy efficiency. “This represents 25% of PGE’s forecasted net load growth of 179 MWa for the same period,” says the IRP.
PGE predicts that demand response programs could yield 138 MW of firm capacity during winter months and 148 MW of firm capacity during summer months by 2012. “An RFP (Request for Proposals) would likely be required to learn precisely how much firm capacity could be acquired through demand-side resources,” says the IRP.
In its IRP, PGE noted that customer surveys revealed customers prefer energy efficiency over most other resources. “Wind and energy efficiency were the most preferred resources for all customers classes, while coal and nuclear were the least preferred,” PGE said. “In general, surveyed customers suggested that renewable resources and conservation should supply 50% to 65% of our incremental energy needs.”
The customer surveys were based on information gathered during focus groups, Internet-and telephone-based surveys, and interviews with large customers
Industry needs to help “muddled” consumers understand efficiency
Consumers continue to be “muddled” about green and energy-efficient technologies, appreciating their benefits, but also viewing them as ugly, costly and difficult, according to a recent survey.
As a result, the clean energy industry faces a “green gap,” says EcoAlign, the strategic marketing agency that prepared the Jan. 14, 2008 report “EcoPinion: Customer Perceptions of Green Technology.”
The findings emerged from the company’s interviews during December 2007 with 1000 households, selected to match the U.S. population by age, gender, region and ethnicity.
Forty-six percent of consumers interviewed had adopted some form of green technology. The percentage jumps significantly among the 55+ age group, according to the report.
Consumers who had not adopted some form of green technology
tended to describe the technologies in a negative fashion -- ugly, expensive,
and difficult to understand and maintain. The 46% who had adopted green tech
were significantly more positive, said the report.
In addition, the report found that consumers in the 55+ age group were more likely to be using green technologies, less likely to be concerned if their neighbors install green technologies and more likely to view green technologies in a positive manner.
Opinions varied based on where consumers lived. Western state households were more likely to express worry about small wind turbines, solar panels and recycled materials. Wind turbines also evoked concern in the Northeast, were wind farms often face a strong not-in-my-backyard sentiment. Consumers in the Midwest tended to be least alarmed overall, especially about energy efficient windows and insulation.
The report offered several suggestions to help the industry overcome the “green gap.” First, companies must invest the necessary money in market research, the report said. Second, the industry should articulate better the benefits of green technologies. And finally, the industry needs to pay more attention to how green technologies look and feel to the customer.
“As Kermit the Frog sang, it’s not easy being green,” said Andrea Fabbri, COO and chief marketing officer. “Vendors of green products and services have a lot of work to do to educate and promote their value proposition.”
EcoAlign is an affiliate of DEFG, a Washington, D.C. consulting and financial services firm focused on innovative energy technologies. The report is available at: http://www.ecoalign.com/
Maryland proposes sweeping plan to increase efficiency, green energy
In keeping with a goal to decrease energy consumption 15% by 2015, Maryland energy planners this week unveiled a broad range of new green programs and incentives.
The plan pursues a host of efficiency and renewable energy programs and policy changes, which state officials hope will ease rising electricity rates and prepare the state for upcoming greenhouse gas restrictions.
“There is no ‘silver bullet’ that will enable Maryland to solve these problems overnight,” said the report by the Maryland Energy Administration (MEA). “This plan should be viewed as ‘silver buckshot’ -- a series of measures that cumulatively will promote affordable, reliable and clean energy for Maryland.”
The state agency proposes that Maryland create a strategic investment fund to spur more efficiency and renewable energy. The fund would provide consumer incentives and financial backing for clean technology industries. Funding would come from revenue generated through the sale of carbon allowances under the Regional Greenhouse Gas Initiative. The carbon cap-and-trade program is scheduled to begin in the Northeast and Mid-Atlantic states next year.
The plan also calls for developing financial tools to encourage clean energy and efficiency businesses to locate in the state. It would institute energy savings targets, with performance rewards for utilities that achieve the goals. The MEA envisions utilities creating more Energy Star rebate programs, incentives for home energy improvements and window air conditioner and refrigerator exchanges.
In home sale transactions, sellers would be required to disclose a household’s previous year’s energy consumption at the time of listing. Similar disclosure would be required for commercial buildings. The plan also ramps up efficiency requirements and green energy use by state buildings.
A Green Workforce Development Task Force would seek ways to foster the state’s transition to a carbon-based economy and a clean energy incubator would be created to support growth of clean energy businesses in the state.
The report also called for the state to institute decoupling of utility rates. This delinks utility sales from revenues, so that utilities are not discouraged from pursuing efficiency for financial reasons. Without decoupling, utility profits drop when customers use less energy.
Gov. Martin O’Malley is expected to put forward legislation in the near future that would enact many of the plans provisions. The plan is available at http://www.energy.state.md.us/.
February Forum aims to help data centers improve energy efficiency
The Green Grid, a Portland, Ore.-based group aimed at improving energy efficiency in data centers and business computing, will hold its first technical forum Feb. 5-6 at the Parc 55 Hotel in San Francisco.
The aim of the forum is to discuss ways to reduce escalating data center power and cooling costs, according to a press release from the Green Grid.
Technical forum topics will include building rating and codes, global perspectives in energy efficiency; rating systems for data centers, and utility incentive and rebate initiatives. A seminar will discuss the “Green Grid data center metrics,” which enable data center operators to estimate the energy efficiency of their data centers, compare the results to other data centers and identify potential energy efficiency improvements.
Speakers include representatives from ADP, Enterprise Rent-A-Car, the American Society of Heating, Refrigerating and Air-Conditioning Engineers, the Department of Energy, the Environmental Protection Agency and Pacific Gas & Electric.
To learn more, click on http://www.thegreengrid.org/events/technical_forum/
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Jan 10, 2008
HP sets goal to increase computer energy efficiency
HP pledged to reduce the energy consumption of its personal computers 25% by 2010 in an announcement made at the 2008 Consumer Electronics Show in Las Vegas this week.
The computer manufacturer was among 2,700 exhibitors at the event held by the Consumer Electronics Association Jan. 7-10.
HP plans to reach its goal through a variety of strategies. Among other things, it will install efficient power supplies, chips and software that measure, manage and reduce power use in its notebook and desktop computers.
The information technology giant already offers more than two dozen products rated gold or silver by the Electronic Product Environmental Assessment Tool (EPEAT). The EPEAT system helps shoppers evaluate, compare and select desktop computers, notebooks and monitors based on the products' environmental attributes.
EPEAT rates electronic products according to three tiers of environmental performance: Bronze, Silver and Gold. New HP business products meeting the most rigorous, Gold status include the HP Compaq 2510p and HP Compaq 2710p Business Notebook series PCs and all models of the HP Compaq dc7800, dc5750 and dc5700 Business Desktop PC families.
"HP for decades has been integrating environmentally responsible components and processes across the entire product lifecycle," said Todd Bradley, executive vice president, Personal Systems Group, HP. "We are dedicated to meeting our energy consumption goal of 25% reduction by 2010, and these additional EPEAT-Gold registrations exemplify how HP leads the IT market in reducing the environmental impact of its products and business processes."
Study Shows Homeowner Use of “Smart Grid” Technologies Can Cut Peak Demand by 15% and Avoid Investments in New Infrastructure
If all U.S. utility customers used “smart grid” technologies to cut peak loads, the U.S. could avoid building about $70 billion in new generation, transmission and distribution systems over a 20-year period, concluded a 1-year study by the Department of Energy’s Pacific Northwest National Laboratory (PNNL), Richland, Wash.
The savings would result if all U.S. customers embraced the technologies at the same level as those who took part in the PNNL study, according to a fact sheet from PNNL. The savings could be passed on to ratepayers, PNNL said.
During the PNNL’s one-year Olympic Penninsula Project, 112 homeowners received new electric meters, as well as thermostats, water heaters and dryers. Using specialized software, the homeowners were able to customize the settings on these devices so that they could automatically respond to changing electricity prices in five-minute intervals, according to a PNNL press release. Electricity prices would increase during peak periods of demand, and would decrease during non-peak periods.
The homeowners set the controls to reduce electricity usage during peak periods. The software automatically lowered thermostats of shut off the heating element of water heaters.
"We're not talking about traditional demand response where consumers have little or no control," said Rob Pratt, PNNL program manager for the GridWise program in a press release. "We're talking about putting the power into the hands of the consumers, who can customize their energy use to save money or maximize comfort. They can check the financial implications of their decisions at any time, and adjust or override their settings whenever they choose."
During the one-year study, the participants reduced peak power use by 15% by responding to real-time prices, PNNL said.
During the study, customers could choose from a variety of contract options, including some that provided for real-time prices that changed as often as every five minutes. Customers could choose whether to implement the energy-saving measures to save money or forego them in favor of comfort, according to a PNNL fact sheet.
On average, participants cut their fuel bills by 10%, according to the fact sheet.
"The project demonstrated that utility-dispatched demand response can alleviate the need to build expensive new infrastructure to address constraints on the distribution or transmission system during times of peak demand,” the PNNL fact sheet said.
City of Portland Slows Effort on Aggressive Green Building Standards
In response to feedback from homebuilders, realtors and others, Portland’s Office of Sustainable Development (OSD) is taking a go-slower approach to implementing a program that would effectively tax building owners for new buildings that failed to meet given levels of efficiency.
Originally, OSD expected to craft a draft ordinance by January. However, it now plans to solicit public input and produce an ordinance for the city council in three to six months, says Cynthia Fuhrman, spokeswoman for OSD.
“Some homebuilders have been upset. The realtors and homebuilders want input. Also, the Portland Bureau of Development was working on a similar initiative, We want to see where the two might converge,” she says.
Under the initial proposal, announced at a Chicago conference last month, builders of new homes and commercial buildings would have three options. They could meet the state’s existing code and pay a fee to the city. If their buildings exceed the code’s energy efficiency requirements by 30%, they would pay no fee and qualify for incentives from the state and local non-profit agencies. If they exceed the code by 45%, they receive a cash rebate from the city and other incentives.
Owners of existing homes and commercial buildings would be required to disclose to potential buyers or tenants energy and storm water performance statistics.
The rules would take effect in 2010.
State News
Connecticut
The Connecticut Energy Advisory Board will begin holding hearings Jan. 22 on an extensive study of the conservation efforts by the state’s two major electric utilities.
Among other things, the draft study evaluates the three major ways states typically manage their efficiency funds. In Connecticut, utilities manage the funds. Other states use a single, state-wide energy services provider or a non-profit organization. The report finds benefits and drawbacks to all three approaches. However, the study concludes that using a non-profit administrator could save Connecticut $5 million annually.
At least three Northeastern states have switched away from having utilities administer efficiency funds. Instead, government agencies administer the funds. They are Maine, New York and Vermont.
The full report is available at: http://www.ctenergy.org/pdf/DraftConsStudy.pdf
Massachusetts
The Massachusetts Senate approved a comprehensive energy bill Jan. 9 aimed at significantly boosting use of energy efficiency and renewable power (S2457).
Among other things, the bill requires that utilities pursue all cost-effective energy efficiency before the state builds new power plants.
Called “An Act to Generate Renewable Energy and Efficiency Now,” the bill also requires that the state help local communities create plans to reduce greenhouse gases and leverage maximum state and federal funding to put the programs in place. Communities can stiffen building codes to reduce their environmental footprint, given that they provide financial assistance to building owners to meet the new standards.
The legislation sets out rules for state agencies to solicit energy management service contracts to improve building efficiency. And it requires that home inspectors score houses based on their energy efficiency when they conduct inspections customarily done when a home is sold.
In addition, the legislation paves the way for more use of combined heat and power in the state by requiring that a percentage of a utility’s power come from the technology. The percentage has yet to be established.
A similar bill passed the House in November. The legislation now goes before a conference committee where House and Senate lawmakers will work out differences.
Gov. Deval Patrick , who has made pursuit of clean energy a key policy goal, is expected to sign the legislation. The Senate bill is available at http://www.mass.gov/legis/bills/senate/185/st02pdf/st02457.pdf