1. Introduction to An ASHRAE Professional Development Course Cutting Utility Costs through Strategic Energy Management Draft 01/21/06 1

2. Introduction to An ASHRAE Professional Development Course Strategic Energy Management: Cost Savings, Environmental Stewardship, and More! Draft 01/21/06 2

3. Introduction to An ASHRAE Professional Development Course Cost Savings and Environmental Stewardship through Strategic Energy Management Draft 01/21/06 3

4. Introduction to An ASHRAE Professional Development Course Strategic Energy Management: Cost Savings and Environmental Stewardship Draft 01/21/06 4

5. An On-line course, presented in 2-hour segments: BENEFITS OF ENERGY MANAGEMENT / GETTING STARTED ENERGY MANAGEMENT FLOW CHART ENERGY MANAGER JOB DESCRIPTION OVERCOMING BARRIERS ESTABLISH COMMUNICATIONS UNDERSTANDING AND ORGANIZING UTILITY BILLS DEVELOPING AND ANALYZING PROFILES BENCHMARKING AND SETTING TARGETS PURCHASING ENERGY OFF-PEAK OPTIONS ENERGY AUDITS IMPLEMENTING ECM’S CONTINUOUS MONITORING – REPORT SUCCESS Energy Management 5

6. Today’s Agenda Impact of Energy Management What is Energy Management? Simple Resources for Getting Started Resources at work Examples of success 6

7. Hydroelectric Solar Etc. Energy SourcesEnergy Consumption 7

8. Energy Management Buildings consume 38.5% of US energy A 33% reduction will save 13% of US energy 4 times the environmental impact of renewable energy! 8

9. Energy Management Systematic approach to energy conservation Assess needs Prioritize resources Take action Potential Cost Effective Savings: 10% - 30% A MANAGEMENT PROCESS!! 9

10. Energy Management 101 10

11. Energy Management 101 20 Story Office Building  200,000 S.F.  5 years old, no energy conservation  Complex, energy intensive HVAC systems  No building automation system Actions by Facility Manager  Read meters daily  Obtain previous day’s weather data  Harass/Compliment Building Engineer daily Result after 1 year:  Energy Use Reduced One-Third! 11

12. Bottom-Line Energy Management Regular Monitoring Benchmarking Accountability 12

13. Energy Star Guidelines for Energy Management http://www.energystar.gov Guidelines for Energy Management 13

14. ASHRAE Energy Management 14

15. Establish a Utility Database 15

16. A Useful Utility Database Facility name, address Climate Zone Function(s) Gross area Metered use by specific dates Energy Cost Calculate Indices ECI EUI 16

17. Indices ECI: Energy Cost Index = $/SF/yr EUI: Energy Utilization Index = kBTU/SF/yr (Annual kWH X 3.413) =_____kBTU + (Annual Therms X 100) =_____kBTU Total Annual Energy =_____kBTU EUI = Total Annual Energy ÷ SF = kBTU/SF/yr Example: Lowell Hall @ UW, 1996 (1,209,319 kWH X 3.413) = 4,127,000 kBTU + (83,642 Therms X 100) = 8,364,200 kBTU Total Annual Energy = 12,491,200 kBTU EUI = 12,491,200 kBTU ÷ 117,600 S.F. = 106.2 kBTU/SF/yr 17

18. 18

19. Zone 4 19

20. Zone 4 20

21. Zone 4 21

22. Zone 4 Preliminary Savings Analysis 22

23. ASHRAE Energy Management 23

24. Utility Profiles Annual Profile of Monthly Data Daily Profile of 15 minute Data 24

25. Madison Church Annual Profile of Monthly Data 25

26. Madison Church Annual Profile of Monthly Data 26

27. Madison Bank 27

28. Annual Profile of Monthly Data Madison Bank 28

29. Honolulu Office Building 29

30. Daily Profile of 15 Minute Data Honolulu Office Building 30

31. ASHRAE Energy Management 31

32. Benchmarking Energy Intensity of Office Buildings 1 Worst Performers Best Performers Number of Buildings 25 50 75 100 EPA Rating & Energy Intensity (kBtu/ft 2 -year) 121.1 29.9165.786.0 339.4  Normalized EUI varies widely  Age and equipment not significant drivers of EUI 1 Worst Performers Best Performers Number of Buildings 25 50 75 100 EPA Rating & Energy Intensity (kBtu/ft 2 -year) 121.1 29.9165.786.0 339.4 32

33. Local Database Honolulu Office Buildings 33

34. EnergyStar Target Finder http://www.energystar.gov/index.cfm?c=target_finder 34

35. Target Page in Portfolio Manager http://www.energystar.gov/benchmark 35

36. ASHRAE Energy Management 36

37. Two Types of Action Discretionary Facility Operation Energy Audits and Capital Improvements 37

38. ASHRAE Energy Management 38

39. Discretionary Facility Operation 39

40. Discretionary Facility Operation 20 Story Office Building  200,000 S.F.  5 years old, no energy conservation  Complex, energy intensive HVAC systems  No building automation system Actions by Facility Manager  Read meters daily  Obtain previous day’s weather data  Harass/Compliment Building Engineer daily Result after 1 year:  Energy Use Reduced One-Third! 40

41. Discretionary Opportunities Match running time to activities Lower hot water and hot air temperatures Raise chilled water and cold air temperatures Lower fan pressure in ducts Lower pump pressure in piping Experiment with all setpoints 41

42. Disincentives for the building engineer Risk of occupant discomfort Risk of equipment failure Experimentation can be terrifying 42

43. Incentives for the building engineer Regular monitoring by the manager Managerial encouragement to experiment Occasional, brief discomfort is OK Teamwork 43

44. ASHRAE Energy Management 44

45. Conduct Energy Audits 45

46. 46

47. “Typical” Office Building End Use 47

48. Honolulu Office Building Actual End Use 48

49. ASHRAE Energy Management 49

50. Examples of Success 50

51. Downtown Chicago Energy Star Building 51

52. Typical Monday Honolulu Office Building Before 52

53. Honolulu Office Building After 53

54. Annual Profile of Monthly Data Madison Bank 54

55. Madison Insurance Company 55

56. Madison Insurance Company 4.1 Million kWh per year provides electricity for 586 new homes! 56

57. Madison Insurance Company 57

58. Mercury Marine Energizes for Payback Jerry Eaton, Energy Manager Accountability (begins at home) FDL Campus (8 plants) Energy Council Individual Plant Energy Wardens Cost Effective Projects Corporate Wide Standard Lighting Reduce Energy Improve Visual Acuity Reduce Maintenance Reduce Overall Inventory Corporate Wide Compressed Air $1.8 Million Investment $875,000 Annual Savings 58

59. Mercury Marine cont… Reinvest savings in additional projects Daily monitoring of facilities and equipment Developed Custom Monitoring Protocol Continues To Adjust Compressed Air by looking for ways to reduce air usage –improved nozzles –air blowers vs. compressed air – actively pursue and fix leaks – Reduced 2 PSI last week in three plants 59

60. Mercury Marine cont… Results 5 years: 22 MW reduced to 19.8 MW Even though Mercury continues to increase market share they’re still able to reduce energy costs 3% each year Energy Management Improves Corporate Bottom Line! 60

61. ASHRAE Energy Management 61

62. Energy Star Guidelines for Energy Management http://www.energystar.gov Guidelines for Energy Management 62

63. Hydroelectric Solar Etc. Energy Management can be considered the largest readily available “source” of energy Energy Management provides the biggest and fastest way to reduce greenhouse gas emissions 63

64. References Energy Management: 1999 ASHRAE Handbook Chapter 34 http://www.energystar.gov Guidelines for Energy Management Computerized Building Energy Simulation Waltz, James P. Fairmont Press, Lilburn, GA, 2000. Benchmarking: http://www.energystar.gov Target Finder (/index.cfm?c=target_finder.bus_target_finder) Portfolio Manager (/benchmark) Energy Audits: Procedures for Commercial Building Energy Audits ASHRAE, Atlanta, GA, 2004. 64