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ESA Energy Systems Associates, Inc.1 The Elements of an Effective Energy Management Program: Why Start It In the First Place?

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Presentation on theme: "ESA Energy Systems Associates, Inc.1 The Elements of an Effective Energy Management Program: Why Start It In the First Place?"— Presentation transcript:

1 ESA Energy Systems Associates, Inc.1 The Elements of an Effective Energy Management Program: Why Start It In the First Place?

2 ESA Energy Systems Associates, Inc.2

3 3 Example: Region 13 Energy Cost Data ($)

4 ESA Energy Systems Associates, Inc.4 Example: Region 13 Energy Cost Data (Annual Percentage Increase)

5 ESA Energy Systems Associates, Inc.5

6 6 Data from Texas Schools School Districts in climate areas 4 & 5 (1500 to 2500 CDD) [Previous map areas] Avg kWh/student Avg $/student 2,613 $194.57 Range: Range: 1,778 to 4,210 $132.45 to $313.63

7 ESA Energy Systems Associates, Inc.7 Data from Texas Schools (cont’d) So, what’s the point? If the districts with above average energy cost/student could simply become “average”: Cost Savings per district would be ~ 38%

8 ESA Energy Systems Associates, Inc.8 In TEXAS: There are > 1000 School Districts (public K-12 th Grade) Annual Utility Cost: > $1,000,000,000

9 ESA Energy Systems Associates, Inc.9 What If--- School districts with better than average $/student didn’t change a thing, But, School districts with > average $/student decided to shoot for average Savings Potential: $380,000,000/Yr

10 ESA Energy Systems Associates, Inc.10 Recent University Studies: Stanford University; UCLA; Cornell University; Rocky Mountain Institute A correlation of recent study results places M&O as the prime cost saving opportunity in schools around the country. Predicted savings potential range:  50%-60% of potential savings in existing buildings available through Maintenance and Operations improvements  M&O offers as much as 80% of the total energy savings potential available in buildings less than 5 years old

11 ESA Energy Systems Associates, Inc.11 A - FUEL PRICES are on the rise [ALL of them: diesel, natural gas, electricity…] B - No Fuel, No School C - Utilities have become the 2 nd largest expense for schools across the nation A + B + C = A Change In Our Investment Portfolio Efficiency = The BEST Investment in Town

12 ESA Energy Systems Associates, Inc.12 When Do We Begin Working On The Solution?

13 ESA Energy Systems Associates, Inc.13 Setting Up the Program The questions of the day : “Is the cost of energy high enough now to entice your administrators to divert some of their attention toward a solution?” If so, then “What’s the Best Solution ?”¹ ¹ ( Which Being Interpreted Means): “How can we reduce our utility cost and redirect our money back into the educational process?”

14 ESA Energy Systems Associates, Inc.14 The Answer Is Not Multiple Choice! Solution: Energy Management The Best Answer The Only Answer

15 ESA Energy Systems Associates, Inc.15 A View From the Top Energy Management MUST Be Viewed As A Top Level Administrative Priority The new Energy Manager’s 1 st job is to get Commitment from the Top. If you don’t have it, get it---and fast!

16 ESA Energy Systems Associates, Inc.16 Energy Manager’s Responsibilities Create Energy Plan & Policy Serve as Utility Negotiations Coordinator Generate/Update /Implement a Master Plan Prepare Both Annual & Project Budgets Create Program for Individual Facilities Institute and Oversee: Commissioning Help Create Efficiency Specifications Energy Efficiency Rewards Standardize Savings & Verification Procedure Produce and/or Supervise Annual Audits Help Balance Efficiency and Safety [e.g., IAQ] Find Technical & Financial Resources [Grants/Rebates] Create Energy Reporting Procedure Help Create P.M. Program Chair Energy Committee Inform and Discuss: COMMUNICATE

17 ESA Energy Systems Associates, Inc.17 Doesn’t sit in the Boiler Room turning valves and admiring boiler flame color … –There are controls that do that today – [They are cheaper than you, and probably more effective!] Doesn’t sit in front of a Computer Monitor all day changing schedules and revising temperature setpoints… –User friendly programs abound today that make this task too easy for someone with an Energy Manager’s pay-scale! Today’s Energy Manager

18 ESA Energy Systems Associates, Inc.18 From this list of responsibilities shown previously, it is essential that the well-rounded Energy Manager be: Technically Capable Skilled in Basic Analytical & Business Math Concepts A Team Player Energetic and Persistent A Good Communicator Energy Manager Qualifications

19 ESA Energy Systems Associates, Inc.19 We are discovering that possibly the most important of all qualifications of the Energy Manager are not technically oriented! It’s a “given” that you are technically capable--- Now, get over it and get on with the program! The Key Skills of today’s Energy Manager are: –Evaluation Skills –Program Management Skills –Communication Skills But More and More…

20 ESA Energy Systems Associates, Inc.20 Let’s Begin with COMMUNICATION It ALL Begins with a POLICY Where there is no Policy, there is no Real Authority… RULE: No Policy --- No Effective Program The Policy Should Communicate: –That rising utility and maintenance costs are a concern –That a trained representative is needed to manage energy related issues –That Authorities are authorizing the E.M. position –That certain Energy Management Goal’s will be Obtained –That a Plan will be Prepared and it will be Implemented –That Incentive/Reward Ideas will be considered

21 ESA Energy Systems Associates, Inc.21 Create the Best Possible Energy Program COMMUNICATION’S Goal: Create the Best Possible Energy Program  Visible : It must Be Seen * If people don’t see it, it isn’t important  Relevant : It must Meet a Need * Support comes from those who know “Why”  Responsive : It must Support, not hinder * They work with you when you work with them!

22 ESA Energy Systems Associates, Inc.22 Publicize, Promote & Reward Build A Team : The Handwriting is on the wall: If you’re a Loner, find another job! Frequent Memos and Articles Use your imagination...just get the message out! Specific Events Example – “Energy Awareness Day” Administrative Commitment “If we can save $, we will reward $ !!!”

23 ESA Energy Systems Associates, Inc.23 Now Let’s EVALUATE Learn the Energy Using Patterns for each of your facilities Tabulate the data Investigate obvious problem areas Work with Administrators and Key Personnel to set specific Goals for specific Facilities, Operations & Processes ….. [Never Generalize!]

24 ESA Energy Systems Associates, Inc.24 CONTINUOUS ASSESSMENT WHAT: –Work with the Maintenance Director and Facilities Engineer to discover where the energy goes… “What” is consuming your energy; “When” is it consumed; “How Much” is it using? –Which items need to be replaced? How soon? In what Order of Priority? At what cost? HOW: –Annual Facility Surveys –Commissioning / Re-Commissioning / Retro-Commissioning

25 ESA Energy Systems Associates, Inc.25 ANNUAL AUDITS Annual checks to see where the money needs to go helps the Administration make wise decisions and minimizes Emergency Replacement projects Continuation of the Energy Management Department depends on this Key Task!

26 ESA Energy Systems Associates, Inc.26 MASTER PLANS Typically: –Equipment Replacement Projects occur as a result of Equipment Failure –Emergency Equipment Replacement Projects occur as a result of Planning Failure MASTER PLAN [Definition] : “ A CONCISE, well thought out plan for the Systematic Replacement of the facility’s primary energy consuming equipment.”

27 ESA Energy Systems Associates, Inc.27 REMEMBER Life Cycle Costing : O&M Is Still The Leader!

28 ESA Energy Systems Associates, Inc.28 Recent Studies on Operation Conclusion : The building condition with the most influence on student learning was air conditioning. [UCLA’s Institute for Democracy, Education and Access; “School Facility Conditions.”] In a recent study of temperature and productivity, it was discovered that there is a range between 72°F and 77°F at which people are most productive. [ASHRAE Transactions 111(2):680-686] Texas Dept of Health “Voluntary IAQ Guidelines” recommend classroom temperature between: Summer: 72 ° – 76 ° F Winter: 70 ° – 75 ° F Students in a room set at 72°F scored 14% better than those in a 61°F room, and 18% better than those in a 81°F room. [Council of Educational Facility Planners International; “Room Temperature and Its Impact On Student Test Scores.”] What are your room setpoint temperatures?

29 ESA Energy Systems Associates, Inc.29 PREVENTIVE MAINTENANCE Possibly the most under-rated aspect of any Energy Management Program. Where proper P.M. exists, the lowest energy costs/sf are normally discovered. With P.M., maintenance costs more than Administrators WANTED to spend that year, but less than they EXPECTED to spend that decade!

30 ESA Energy Systems Associates, Inc.30 Verify the Savings Summarizes & Reports Utility Cost and Consumption Savings Obtained from Installed Energy Efficiency Projects. How? –Analyze utility consumption and cost both before and after project installation. –Selects the most appropriate verification procedure. –Reports savings on a monthly and annual basis. –Compares variations in kWh, kW, Mcf, and Total Cost in light of the non-controllables (weather, rates, etc.).

31 ESA Energy Systems Associates, Inc.31 An Energy Manager Must Know Indoor Air Quality

32 ESA Energy Systems Associates, Inc.32 IAQ “The Personal Factor” HVAC ContaminantsHVAC Contaminants VOC’s from the HVAC system Man Made Mineral Fibers Biological from coils, insulation and filters Cooling Towers Laboratory or Boiler Exhaust Keep buildings at Slightly Positive Pressure

33 ESA Energy Systems Associates, Inc.33 Office Contaminants Carbonless Copy Paper Copy Machines Printers Video Display Terminals Floor Covering “Carpet and Vinyl Problems”

34 ESA Energy Systems Associates, Inc.34 EnergyManager Must Learn: CONSTRUCTION Energy Manager Must Learn: CONSTRUCTION Building Codes International Energy Conservation Code ASHRAE 90.1 [Energy Efficiency] ASHRAE 62[Indoor Air Quality] ASHRAE 55[Comfort Standards] GREEN Design: LEED, CHPS, Sustainable

35 ESA Energy Systems Associates, Inc.35 Design/Construction Tasks Pre-Design: –Establish & Communicate Efficiency Goals –Help Develop Construction Criteria –Investigate Rebate/Incentive Opportunities –Help Select Test & Balance Firm –Help Select Architect –Help Select MEP Engineer –Prioritize Options Using Efficiency As Guideline –Pursue Option for Commissioning

36 ESA Energy Systems Associates, Inc.36 Design Phase Tasks Attend Coordination Meetings Work with Architect & Engineer Review All Plans & Specifications Make Efficiency Improvement Recommendations

37 ESA Energy Systems Associates, Inc.37 Construction Phase Tasks Review Submittals Make Frequent Site Surveys & Inspections Attend Construction Meetings Evaluate Proposed Revisions for Impact On Operating Efficiency Attend Final Inspection and Witness Functional Testing of ALL Systems

38 ESA Energy Systems Associates, Inc.38 Post-Construction Tasks Communicate System Operation To Occupants –How it will work –How it will be operated –The impact of “abuse” Life Cycle Costs –Report On Success Life Cycle Costs

39 ESA Energy Systems Associates, Inc.39 Finally, Energy Managers Manage Negotiate Rates with Utility Suppliers Prepare Budgets for the EM Department & for Efficiency Related Installations Balance Energy Needs with Safety Issues Research Project Funding Sources Chair the Company Energy Committee Interact with Construction, Maintenance, Custodial, Finance and Staff………

40 ESA Energy Systems Associates, Inc.40 With All Due Respect This is not a Part-Time Job It isn’t a position for those on their way out It cannot be relegated as the Jr. High Coach’s “off period” work task In many areas of this country, energy costs have risen by 23% over the last 36 months!

41 ESA Energy Systems Associates, Inc.41 THE COST TO SUCCEED Money will have to be spent to change: –ATTITUDES: “I’ll run this equipment the way I want after you’re gone!” –KNOWLEDGE: “I’m no computer nerd! Don’t expect me to be able to run that controller!” –EQUIPMENT: “We just keep on buying the “low bid” stuff and I just keep spending my life working on it!”

42 ESA Energy Systems Associates, Inc.42 Ask Yourself : ?How good is our EM Department at Communicating the Program, the Goals and the Accomplishments? ?Do we really know our systems and operating tactics; have we accurately Evaluated our consumers? ?How can we improve our Management skills so energy management is as much a part of the fabric of our organization as Maintenance, Custodial, Security and Purchasing? THERE’S MORE TO DISCUSS…

43 ESA Energy Systems Associates, Inc.43 ENERGY MANAGER SALARY OK, how do we pay for this Energy Management position (or Department)? The ENERGY MANAGER salary can be justified by assigning values to the various tasks in this discussion…let’s back track…

44 ESA Energy Systems Associates, Inc.44 Average Cost of Electricity Typical Electric Rate Used for Schools: Clients consuming > 15,000 kWh Peak Demand from 50-1,000 kW Typical Breakdown: T&D Charges = 40% of Bill REP Charges = 60% of Bill The Amount You Save: Consumption $/kWh = $0.08/kWh Demand $/kW = $8.50/kW

45 ESA Energy Systems Associates, Inc.45 ENERGY MANAGER SALARY (cont’d) Assumptions & Rates: $0.08/kWh; $8.50/kW; $9/mcf; ~$120,000/Year Utility Bill per Campus Predicted Savings/Year: General Rule: HVAC Operation ~ $ 6,000 1 Hr/Day less Runtime 1 Billing Error/Yr ~ $ 500 Yes, It Happens Ancillary Equip On/Off ~ $ 1,800 Examples: DSM: Booster Heater, Kilns, Electric DHW Energy: Ceiling Fans, Under Desk Heaters, Gym Lights, RR Exhaust Fans (at night)

46 ESA Energy Systems Associates, Inc.46 ENERGY MANAGER SALARY (cont’d) HVAC Temp Setpoint ~$ 3,600 1°F = 1½% Savings DHW Time/Temp Set ~$ 1,440 7 kW at 120°F and off after 1:00 PM Exterior Lighting ~$ 500 Operable Photocell 3 Vending Machines ~$ 660 Occupancy Sensors Watt Watcher~$ 1,000Student Involvement Savings obtained through Energy Manager Responsibilities = $15,500/Year per Campus Most School Districts with 5 to 6 campuses would break even

47 ---Coming Soon--- TEMA Texas Energy Manager’s Association –Will begin for Public Schools in 2009 –Other Public, Commercial and Industrial branches currently under consideration

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