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ENERGY CONSERVATION:

ENERGY CONSERVATION MML Conference : October 23, 2008 Presentation By: Joanne Throwe Environmental Finance Center

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Conversions & Terms kW : kilowatt EPC : Energy Performance Contracting program ESCO : Energy Service Company http://www.1wp.com/go/usenergymanagement/files/kilowatt_meter.jpg

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“Deep” Insight/Inspirational Quote “[energy conservation] efforts by municipalities are incredibly important because cities consume approximately 75 percent of the world’s energy and, for the first time in our history, the majority of people on the planet live in cities.” -from “Energy Management and Conservation: Municipal Best Practices” (2007) by Sen. Gary Hart (Wirth Chair Professor, Wirth Chair in Environmental and Community Development Policy University of CO) and Sam Mamet (Executive Director, Colorado Municipal League)

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EXISTING OPPORTUNITIES & RESOURCES IN MARYLAND

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-Governor Martin O’Malley’s initiative to reduce energy consumption by 15% by 2015 -Consists of 7 steps, including: Energy Performance Contracting (EPC) program State Agency Loan Program (SALP) Jane E. Lawton Conservation Loan Program (JELLP) require energy efficient buildings -website has list of estimated savings ( http://www.energy.state.md.us/facts/empower/index.asp ) 1. EmPOWER Maryland http://www.energy.state.md.us/

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Energy Performance Contracting (EPC) Summary: agencies hire ESCOs to develop, install, and finance projects designed to improve the energy efficiency and maintenance costs for facilities -an EPC is an agreement between a local government and an ESCO in which the ESCO identifies and evaluates energy-saving opportunities and recommends improvements -the ESCO pays for upfront capital costs

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State Agency Loan Program (SALP) Summary: zero interest revolving loan program for typical projects that include energy efficient lighting, controls, heating, ventilation and air conditioning -loans for cost-effective energy efficiency improvements in State facilities -$1 million in new loans are awarded each fiscal year -zero interest with a 1% administration fee -repayments are made from the agency's fuel and utility budget, based on the avoided energy costs of the project

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Jane E. Lawton Conservation Loan Program (JELLP) Summary: low interest revolving loans to local governments and nonprofit organizations to install energy efficient improvements -applicable sectors: Commercial, Industrial, Nonprofit, Schools, Local Government, Hospitals -max amount: $600,000 -terms: average interest rate is around 3%; payback of seven years or less -program budget: $1.5 million per fiscal year

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Require all new buildings over 20,000 square feet to be more energy efficient Require Energy Efficient Buildings According to the US Green Building Council, the average upfront additional cost of constructing to the LEED Gold certification standard is 2.2% and is typically recovered through energy savings within 3 years http://205.153.241.230/issues/emergejan2007/leedplaque2.jpg

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2. Maryland Energy Administration (MEA) Incentives http://www.energystar.gov/ia/products/lighting/cal/images/1020.JPG

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$0.03/gallon tax credit for individuals and corporations that purchase Bio-Heating Oil for the purpose of space and water heating up to $500 list of distributors: BIO-HEATING OIL TAX CREDIT http://energy.maryland.gov/incentives/transportation/biodiesel/distributors.asp

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-up to $1,000 for eligible systems -for space heating & cooling and water heating -must use 25%–50% less electricity than conventional heating or cooling systems GEOTHERMAL HEAT PUMP GRANT PROGRAM

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- cost of solar water heating system: $6,000-$8,000 -provides funding for a portion of the costs to install qualifying solar energy systems -up to $2,500 per kW (up to $10,000 for photovoltaic property) -up to $3,000 for solar water heating systems SOLAR ENERGY GRANT PROGRAM

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- started September 2006 -wind measuring devices are loaned to landowners -prerequisites: -diameter of 60 feet of open space around the base of the tower location for 30-m towers; and 110 feet for 50-m towers STATE ANEMOMETER LOAN PROGRAM http://www.smg.gov.mo/dm/equip/ws.jpg

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-small scale wind energy systems -at least 1 kW for residential properties and 1.5 kW for non-residential properties -eligible: individuals, businesses, local governments -$2500/kW (max $10,000) WINDSWEPT GRANT PROGRAM http://www.homeenergysavingtips.co.uk/images/wind_turbine.jpg

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A wards for projects in 3 categories: -biofuels (including renewable liquid or gaseous fuels) -electric transportation -consumer behavior modification -max award $100,000/application -minimum award: $2,000 TRANSPORTATION GRANTS

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- 0.85 cents per kW hour for electricity generated from qualified resources 0.50 cents per kW hour if co-firing a qualified resource with coal -annual tax credits cannot exceed 1/5 of the initial credit certificate CLEAN ENERGY PRODUCTION TAX CREDIT

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Federal Tax Credits for Energy Efficiency http://www.dodoskido.com/images/EVcredit.gif

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Home Improvements Efficient Cars Solar Energy Systems Fuel Cells 1. For Consumers

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$2,000 tax credit for energy efficient homes that achieve 50% energy savings for heating and cooling 2. For Home Builders $1,000 tax credit for energy efficient homes that achieve 30% energy savings for heating and cooling http://www.mdhomeperformance.org/Images/images/house-leaks-with-text-780.jpg

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-tax deduction of up to $1.80 per square foot for commercial buildings that save at least 50% of the heating and cooling energy -partial deductions of up to $.60 per square foot for measures affecting any one of three building systems: -the building envelope -lighting, or heating -cooling systems 3. For Commercial Buildings http://www.sustainablecampus.cornell.edu/getinvolved/images/green%20building%20drawing.gif

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Case Studies http://www.chinadaily.com.cn/world/images/attachement/jpg/site1/20080328/0013729e4abe0956eb5b49.jpg http://www.howlingsow.com/mainwebsite_html/art_images/thought_bubble.gif http://www.whytraveltofrance.com/images/fullspectrumlightbulbs.jpg

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1. Examples of Alternative Energy Solutions in MD Small-Scale Wind Energy Systems Energy from Municipal Solid Waste http://www.nationaleminentdomain.com/windfarm.jpg http://www.nodumpconecuhcounty.com/assets/landfills/large_landfill.jpg http://cache.daylife.com/imageserve/0dEWfLcgSs3wa/340x.jpg

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Small-Scale Wind Energy Systems Eastern Neck Wildlife Refuge (Kent County) wind demonstration project -March 2002: 10kW wind turbine installed to provide on-site electric power to the administration building -Not enough wind year round -Hybrid system using wind and solar -Measures avian interaction with wind turbine

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Energy from Municipal Solid Waste at Montgomery County’s Resource Recovery Center, electricity and steam is generated by burning municipal solid waste Prince George’s County uses landfill gas from the Brown Station Landfill to provide heat, hot water, and electricity for the County Detention Center http://www.curtisengine.com/images/projects/prince_georges/the_big_orange.jpg http://www.montgomerycountymd.gov/swstmpl.asp?url=/content/dep/solidwaste/facilities/rrf.asp

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2. Examples of Municipalities Conserving Energy http://electroniclink.net/blogs/wp-content/uploads/2008/01/esc_energy.jpg http://www.alaskacoinexchange.com/Stamps%2013/13c%20Energy%20Conservation.jpg

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June 2007: replaced light bulbs in all City buildings with energy efficient bulbs -initiated a program to provide residents with free energy efficient light bulbs for their homes -1/3 of the 300 hundred homeowners in Central City have participated in the program -over 2,100 bulbs given out in first month Central City, CO “One light bulb at a time” http://psdblog.worldbank.org/photos/uncategorized/2008/05/08/light_bulb.jpeg http://ownercommunity.homeaway.com/Resources/Image/Blog/light%20bulb.jpg

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Installed meters on 4 municipal buildings to measure and record power demand -put in place a different power rate structure tailored to the specific electrical power demand times of the City -change the operating time of the City’s electrical engines and heaters to more “off peak” times -expected savings: -first year: $20,000 -second year: $40,000-$50,000 -third year on: $60,000 annually Durango, CO http://www.byramlabs.com/images/hi-res/els-alpha.png

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- City decided to find an ESCO to perform an energy audit and to perform energy and cost savings upgrades on campus buildings -recommendations from energy audit: upgrades in lighting ballasts, bulbs, and fixtures Estimated costs savings from these upgrades: $7,000 annually Average approximate pay back of 5 years Evans, CO: EPC example

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-Comprehensive energy audit with electrical upgrades performed Recommendations: -all City traffic lights were replaced with LED lights -lighting retrofit program initiated in all mun. buildings -some boilers and chillers were replaced -initial projected estimates showed Arvada could save $800,000 over 10 years -combined actual measured savings plus estimated operational savings from first year: $145,000 Arvada, CO: another EPC example

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- In 2006 Honeywell performed an energy audit of the city’s municipal buildings -In 2008 the city joined the EPA Municipal Energy Challenge (reduce energy use in municipal buildings by 10% -New England program) Estimated annual savings from this reduction: $9,383 Brattleboro, Vermont

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-the city engaged 25 businesses to make the 10% reduction pledged -energy efficiency improvements: -lighting retrofits -boiler controls -envelope and heating plant improvements -the improvements helped Municipal Center perform better than 88% of its counterparts nationwide -the Municipal Center is eligible for an Energy Star -town fleets converted to 80/20 biodiesel Brattleboro, VT : Outcomes

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3. Outside the Box: California’s “Flex Your Power” Program http://www.californiastatewebsite.com/images/CaliforniaStateCountyMap.jpg

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-CA’s statewide energy efficiency marketing and outreach campaign started in 2001 -partnership of CA utilities, residents, businesses, institutions, government agencies and nonprofit organizations -received an ENERGY STAR Award for excellence Flex Your Power… background http://www.fypower.org/images/logo.gif

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-U rgent call for business, residents, and governments to voluntarily reduce electricity use to prevent Stage 1 Electrical Emergencies - Flex Alert Network : comprised of businesses, governments, and organizations who have agreed to send out Flex Alert notifications when they are needed Flex Alerts

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1. Turn off all unnecessary lights, computers and appliances 2. Postpone using major appliances until after 7 p.m 3. Turn air conditioning thermostat to 78° F or higher 3 Flex Alert Measures: http://www.lcra.org/newsletter/currents/conserveissue/images/ac.jpg

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-Reduce possibility of a brownout or blackout -Reduce your energy bill -Reduce the need for new power plants -Diminish the need to pay out-of-state generators for peak power Benefits of Flex Alerts

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The Point: Fast, Easy, Cheap, Simple way to reduce energy consumption -uses rates, incentives and other strategies to help better manage electricity use during periods of high peak demand -with a goal of reducing peak demand by 5%, California leads the way in US Demand Response programs Demand Response Programs

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1. Eligibility : Typically based on a customer's peak electricity demand, measured in kWs 2. Program triggers : such as extreme weather, or electrical emergencies 3. Binding vs. Voluntary programs 4. Incentives Demand Response Program variables

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some examples: -turn off decorative lighting & fountains -turn off nonessential lighting -delay dishwashing & laundry processing -raise cooling thermostat settings -reduce use of multiple escalators/elevators Non-Residential Demand Response Tips Chart http://www.fypower.org/pdf/demandresponsetips.pdf

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-track "real time" energy use, noting when an end-user consumes more or less electricity -during high-energy use periods, large energy users (such as industrial customers using 200 kW and over) are charged more for their electricity use Smart Meters/Advanced Metering Systems

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Energy Saving Tips For Residents http://www.fypower.org/res/tools/energy_tips.html ► recommendations are organized by cost: No-Cost, Low-Cost, and Good Investment some examples: -turn water heater down to 120° or the "Normal" setting when home, and to the lowest setting when away (water heating accounts for about 13% of home energy costs) -wash clothes in cold water (about 90% of the energy use in a washing machine goes to water heating)

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Energy Efficient Appliances http://www.evo.com/media/0/4669/image_in.jpg

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earning the “Energy Star” means a product meets strict US Department of Energy & EPA energy efficiency guidelines Energy Star Appliances http://johnlmclane.com/yahoo_site_admin/assets/images/EnergyStarLogo_orignal.29062643_std.gif

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In the Kitchen - dishwashers : -save $90 over its lifetime in utility costs -use at least 41% less energy than the federal minimum standard for energy consumption - refrigerators: -use 20% less energy than the federal minimum standard - freezers: -use 10% less energy than the federal minimum standard

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Heating/Cooling - room AC : -use 10% less energy than conventional models - central AC: -14% more efficient than conventional models - boilers: -use 6% less energy than conventional models - programmable thermostats: -save $180 dollars a year

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- washing machines: -save $550 over its lifetime in utility costs - TVs: -use 30% less energy than standard units - light bulbs: -use 75% less energy than standard light bulbs -produce 75% less heat -last 10 times longer - printers & scanners: -25% more efficient than conventional models Other Appliances

Thank you:

Thank you Joanne Throwe University of Maryland Environmental Finance Center [email protected] 301/405-5036 www.efc.umd.edu

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