1. Center for Energy and Environment Cost Effectiveness Determination & Benefits and Resources Russ Landry, PE, LEED® AP Center for Energy and Environment 212 North 3rd Ave, Suite 560 Minneapolis, MN 55401 612-335-5858 www.mncee.org November 12, 2010

2. Center for Energy and Environment November 12, 2010 Cost-Effectiveness for SB2030 Projects SB2030 Legislation Standard “…cost-effective based upon established practices used in evaluating utility conservation improvement programs [CIP programs].” Complicated set of CIP program cost- effectiveness calculations How to be Sure Your Project is Cost- Effective?

3. Center for Energy and Environment November 12, 2010 Ensuring Cost-Effective SB2030 Projects SB2030 Program Team Review for Omission of Common Cost-Effective Measures Approve Variance Where Appropriate Project Design & Development Team Design Energy Efficient Building with Reasonable Cost-Effective Upgrades If SB2030 not Achieved for Bonded Project, Use Cost-Effectiveness Variance Procedure SB2030 Program Team Set standard at Generally Achievable Level Defined Simplified Cost-Effectiveness Calculations for Projects

4. Center for Energy and Environment November 12, 2010 SB2030 Program Team Development of Cost-Effectivenss Safeguards Confirmed Standards Can be Achieved Cost- Effectively for a Variety of Projects Simplified Project Cost-Effectiveness Calc Performed Analysis of Wide Variety of Assumptions & CIP Cost-Effectiveness Tests Defined Simplified Variance Eligibility at a Conservative Level  Does Not Force “Non-Cost Effective” Upgrades  Allows Variances for Some “Cost-Effective” Upgrades Work with Project Teams Throughout Design  Reality Check on Cost-Effectiveness of Measures  To Avoid Surprises

5. Center for Energy and Environment November 12, 2010 Project Team Variance Procedures for State Bonded Projects If Design to Achieve SB2030 Standard is Suspected of Not Being Cost-Effective, Look at Questionable Upgrades Building energy simulations for savings Project-specific cost estimates from: -Contrator(s)-Project engineer -Project architect-Third-party estimator Apply for Variance Where Upgrade Simple Paybacks are >15 Years (Before Rebates) Follow calculation procedures defined in downloadable Calculation of Cost-Effectiveness for Variance Application (E1C) Submit documentation via the tracking tool

6. Center for Energy and Environment November 12, 2010 Questions on SB2030 Cost-Effectiveness Safeguards?? SB2030 Program Team Review for Omission of Common Cost-Effective Measures Approve Variance Where Appropriate Project Design & Development Team Design Energy Efficient Building with Reasonable Cost-Effective Upgrades If SB2030 not Achieved for Bonded Project, Use Cost-Effectiveness Variance Procedure SB2030 Program Team Set standard at Generally Achievable Level Defined Simplified Cost-Effectiveness Calculations for Projects

7. Center for Energy and Environment November 12, 2010 Benefits and Resources for SB2030 Project Teams Developer Questions How do we reach SB2030 Standard? How do we pay for added design fees? How do we pay for higher captial costs? How do simulations get done?

8. Center for Energy and Environment November 12, 2010 Benefits & Resources for SB2030 Project Teams SB2030 Program Team  Limited 3 rd Party Check on Design Approach with Building Strategy Checklist (E1D)  Coordination with Utility Program Support Utility CIP Program Support  Design Assistance Programs  Incentives for Installation of Upgrades

9. Center for Energy and Environment November 12, 2010 Current Utility Program Support Design Assistance Programs Assistance with Simulations  Full service or financial support for your consultant  Evaluate design alternatives early on  Document final design performance Support for Added Design Costs Financial Incentives for Improvements Prescriptive for Specific Measures Based on Energy/Demand Savings Calculated for a Specific Project

10. Center for Energy and Environment November 12, 2010 Potential Future Utility Program Support Simplified Small Building Approach Optional prescriptive approach Simplified energy performance calculators as alternative to full simulations Bonus Rebates Tied to Achievement of SB2030 Standards Support for Commissioning and/or Ongoing Building Operations

11. Center for Energy and Environment November 12, 2010 Getting Utility Support for a Project Get in Touch with Local Utilities to Ask What standard programs do they have? What additional custom services and rebates can they provide? Why not more? SB2030 Program Team Can Help Coordinate and Encourage Utility Support Lead team contact:Russ Landry of CEE rlandry@mncee.org 612-335-5863 rlandry@mncee.org