Retro-Commissioning Draft Impact Evaluation Plan

Transcription

1 Prepared by SBW Consulting, Inc. PWP, Inc. For the California Public Utilities Commission December 19, 2007

2 TABLE OF CONTENTS EXECUTIVE SUMMARY PROGRAMS EVALUATED EVALUATOR CONTACT INFORMATION INTRODUCTION AND OVERVIEW OF THE EVALUATION APPROACH Overview of the Evaluation Effort Goal of the Evaluation Sample Design Site Specific Evaluation Methods Evaluation products Researchable Issues Evaluation Protocols Applicable DESCRIPTION OF PROGRAMS AND EVALUATION ORGANIZATION General Overview of Type of Programs Included in the Plan Program-Specific Program Descriptions and Summary Program Theories PGE2056 Monitoring-Based Persistence Commissioning (MBPCx) PGE2070 Data Center Cooling Controls Program (DCCCP) PGE2071 Hospitality Energy Efficiency Program (HEEP) PGE2072 Hospital Pilot Program (HPP) PGE2090 Airflow/Fume Hood Control Systems Re-Commissioning PGE2091 Services and Incentives PGE2094 Macy s Comprehensive Energy Management Program (MCEMP) SCE2508 (RCx) SCG3528 Joint SCE Program SDGE3027 Program (RCx) Evaluation Type and Rigor Assignments VERIFICATION PLAN EVALUATION METHODOLOGY: TASKS, STEPS AND ACTIVITIES Baseline Assessment Gross Energy (kwh and Therm) Assessment Protocol-guided direct impact methodology Protocol-guided indirect impact methodology Spillover methodology SBW Consulting, Inc. 2 December 19, 2007

3 Program-Level Gross Impacts Effective Useful Life Gross Peak Demand (kw) Assessment Up-Dating Energy Savings Goals Overall Measurement and Verification (M&V) Plan Independent Evaluator Developed Definitions of Participant and Non-Participant Net-To-Gross (Net of Free-Riders) Assessment Participant Spillover Reliability, Bias and Uncertainty Sampling Plan Data Requests EVALUATION COORDINATION EFFORTS The CPUC s Market Effects Evaluation DEER Up-Date Data Needs Inter-Contract Group Coordination Early Feedback to IOUs Feedback on Key Verification and Evaluation Findings Feedback on Data Collection Approach and Instrumentation EVALUATION TIMELINE EVALUATION WORKPLAN AND BUDGET Workplan Conduct Project Initiation Meetings and Conduct Initial Data Collection Develop Final Evaluation Plan Develop Detailed Procedures and Handbook Develop Program Database Sample Selection Conduct Pretests and Finalize Data Collection Instrument Data Collection Review of Ex-Ante Savings Estimates Ex Post Gross and Net Savings Estimates Project-specific Reports Program-Level Estimates of Gross and Net Savings Evaluation Report Budget SBW Consulting, Inc. 3 December 19, 2007

4 Appendix A: Key Terms Appendix B: Project-Specific Evaluation Plan Template Appendix C: Project-Specific Evaluation Report Template SBW Consulting, Inc. 4 December 19, 2007

5 EXECUTIVE SUMMARY This plan describes how we will evaluate kwh, kw and therm impacts of the Retro- Commissioning (RCx) programs. Collectively, the four IOUs and their contractors are operating ten RCx programs that strive to improve the energy performance of existing plant and equipment for participating customers. They all assist participants via investigations (audits or performance assessments) that identify opportunities for improving the operations or maintenance of existing assets, and provide incentives to reduce the barriers to adopting the program s recommendations. Many provide other forms of educational and training support for the participants. In some cases, these programs also identify opportunities for conventional retrofit technologies, such as high efficiency chillers or new control systems, and either provide incentives directly to motivate adoption or refer customers to other efficiency programs. A number of the programs serve small specialized markets such as Data Centers or target specific end uses, such as fume hoods. One program from each IOU serves a broad market and deals broadly with the energy end uses found at participating sites The total estimated budget for this evaluation, less contingency, is $2,370,101. The following programs will be covered by this evaluation: Monitoring-Based Persistence Commissioning (PGE2056) is a third party program operated by Enovity that combines RCx services (audits and implementation support) with ongoing monitoring to improve savings persistence for a wide variety of improvements implemented by large public and private sector facilities. Data Centers (PGE2070) is a third party program operated by QuEST that intends to improve energy efficiency at up to 40 data center and server farm facilities. The program helps customers implement cooling system energy efficiency improvements by providing audits, installation services and staff training. Hospitality Energy Efficiency Program (PGE2071) is a third party program operated by QuEST that intends to improve energy efficiency for approximately 35 hotel properties. The program provides audits, engineering and design support, and third party financing. In addition, the program will evaluate demand response opportunities. Hospitals Pilot (PGE2072) is a third party program operated by QuEST. The program plans to serve approximately 12 hospitals with detailed analysis of their energy systems, identification of efficiency measures, assistance with implementing these measures and operator training. In addition, the program will evaluate demand response opportunities. Airflow and Fume Hood Control Systems Re-Commissioning (PGE2090) is a third party program operated by Newmatic Engineering (NE). The program intends to optimize energy efficiency for laboratory fume hoods through audits, implementation support, and monitoring and verification services Retrocommissioning Services and Incentives Program (PGE2091) is a third party program operated by Portland Energy Conservation, Inc. (PECI). The program targets its SBW Consulting, Inc. 5 December 19, 2007

6 services to buildings that have a high potential for savings. Services include audits, implementation support and training. Macy s Comprehensive Energy Management (PGE2094) is a third party program operated by QuEST to deliver energy efficiency services to approximately nine Macy s retail stores. The program provides audits, implementation support, staff training and plans for periodic maintenance. Retro-commissioning (SCE2508) is a local program operated by SCE designed to serve buildings. PECI is the primary contractor, responsible for day-to-day program operations. The program targets buildings with high potential for savings. Services include audits, implementation support and operator training. Recommended retrofit measures are referred to other utility programs. Retro-commissioning Partnership with Southern California Edison (SCG3528) is a local program operated by SCG which works through SCE2508. The program provides funding for gas efficiency improvements implemented by SCG customers that are participating in the SCE program. Retro-commissioning Program (SDGE3027) is a local program operated by SDG&E. PECI is the primary contractor responsible for day-to-day program operations. The program targets buildings with high potential for savings. Services include audits, implementation support and operator training. Recommended retrofit measures are referred to other utility programs. To estimate gross impacts for each of these programs, we will study a stratified random sample drawn from each program s list of participants. In total a sample size of 84 is proposed out of an expected population of 382 projects, across all ten programs. Projects will be sampled as they reach the stage where the program has developed estimates of the likely savings, but prior to work commencing on improvements. This will allow us to collect data both before and after improvements are implemented. Project-specific Measurement and Verification (M&V) plans will be prepared for each participant that will specify the pre and post data to be collected via on-site inspections, operator interviews, and key parameter data logging from customer control systems or special metering installed by the evaluation team. The plan for each project will also specify the engineering methods to be used in estimating gross savings for each of the measures that comprise the project. Gross impacts will be estimated by implementing the data collection and analysis described in the M&V plans. Indirect (measures recommended by the program but implemented without an incentive) and spillover (measures implemented as a result of education or training provided by the program, but not specifically recommended by the program) measures will also be covered by these project-specific M&V plans. In addition, there will be a sample for estimating net impacts, via self-report methods. This sample will conform to the Protocols requirement for 300 sample points or a census. As none of these programs is expected to exceed 300 projects, this sample will be a census for all programs. Detailed telephone or in-person interviews will be conducted with decision-makers, building SBW Consulting, Inc. 6 December 19, 2007

7 operators, and vendors associated with each project to provide the data needed to estimate net savings. Impact evaluations serve many purposes including improving the programs, supporting the costeffectiveness analyses, providing data for future programs and strategic planning, and helping to determine share-holder incentives/penalties in California. With finite resources, this plan has been developed to reflect the highest priority uses of evaluation, which involve providing adjustments to the gross savings claimed by the utilities, the net savings after accounting for freeridership (through self-reported surveys), and information essential to valuing the savings, such as the annual load shapes of the savings. In addition to the primary goal of program level evaluation, the evaluation may also provide supporting data for (1) a study of incremental costs, (2) a series of Market Effects studies, (3) participant spillover, (4) potential inputs to measure life studies, and (5) other efforts as needed and requested to support the shareholder incentive process. Because many of the above priorities are best met by producing data at the measure or end use level, our contract group will focus the limited evaluation resources on detailed project-specific field data collection and analysis. The following table summarizes the data collection approach that is currently planned for this contact group. Table ES 1: Measure Level Efforts Programs with Key Measures Measure / End-use Sector/ Area Sample Sizes Measurement Techniques Energy Measurement for 8760/DEER kw Retrocommissioning (RCx) PGE2056 PGE2070 PGE2071 PGE2072 PGE2090 PGE2091 PGE2094 SCE2508 SCG3528 SDGE3027 HVAC and other Key Energy Systems Non Residential 84 participants Project-Specific M&V plans with pre and post data collected as needed from on-site inspections, operator interviews and key parameter data logging via customer control systems or special metering installed by evaluation team. Project-Specific engineering models used to estimate load shape and kw impacts of RCx measures. SBW Consulting, Inc. 7 December 19, 2007

8 1. PROGRAMS EVALUATED This plan describes how the following programs will be evaluated. Table 1: Programs to be Evaluated Utility Program ID Program Name PGE PGE2056 Monitoring-Based Persistence Commissioning PGE PGE2070 Data Centers PGE PGE2071 Hospitality Energy Efficiency Program PGE PGE2072 Hospitals Pilot PGE PGE2090 Airflow and Fume Hood Control Systems Re-Commissioning PGE PGE2091 Retrocommissioning Services and Incentives Program PGE PGE2094 Macy s Comprehensive Energy Management SCE SCE2508 Retro-commissioning SCG SCG3528 Retro-commissioning Partnership with Southern California Edison SDGE SDGE3027 Retro-commissioning Program 2. EVALUATOR CONTACT INFORMATION Following is contact information for the key staff that assisted in developing this plan. Table 2: Key Evaluation Planning Staff Firm Topic Area Lead Staff Phone Number SBW Overall research design Michael mbaker@sbwconsulting.com Baker Gross savings analysis Bing Tso btso@sbwconsulting.com PWP Sampling and program Phil philwillems@comcast.net estimates Willems Net-to-gross Phil philwillems@comcast.net Willems Spillover Phil philwillems@comcast.net Willems Itron Uncertainty Mike Rufo Mike.rufo@itron.com 3. INTRODUCTION AND OVERVIEW OF THE EVALUATION APPROACH 3.1. Overview of the Evaluation Effort Goal of the Evaluation This plan describes how we will evaluate kwh, kw and therm impacts of the Retro- Commissioning (RCx) programs. RCx is the expert and systematic evaluation of HVAC, lighting and some process systems with an emphasis on low-cost solutions easily implemented in the SBW Consulting, Inc. 8 December 19, 2007

9 course of the RCx process. Collectively, the four IOUs are operating ten RCx programs that strive to improve the energy performance of existing plant and equipment for participating customers. These RCx programs all assist participants via investigations (audits or performance assessments) that identify opportunities for improving the operations or maintenance of existing assets, and provide incentives to reduce the barriers to adopting the program s recommendations. Many provide other forms of educational and training support for the participants. In some cases, these programs also identify opportunities for conventional retrofit technologies, such as high efficiency chillers or new control systems, and either provide incentives directly to motivate adoption or refer customers to other efficiency programs. A number of the programs serve small specialized markets such as Data Centers or target specific end uses, such as fume hoods. One program from each IOU serves a broad market and deals broadly with the energy end uses found at participating sites Sample Design To estimate gross impacts, we propose to select stratified random samples of participants, with stratification based on our best estimate of likely savings from each project, which will represent separately each of the ten programs. In total a sample size of 84 is proposed out of an expected population of 382 projects. Projects will be sampled as they reach the stage where the program has developed estimates of the likely savings, but prior to work commencing on improvements. This will allow for both pre and post improvement data collection. In addition, there will be a sample for estimating net impacts. This sample will conform to the Protocols requirement for 300 sample points or a census. As none of these programs is expected to exceed 300 projects, this sample will be a census for all programs Site Specific Evaluation Methods Baseline. These programs provide customized treatment for each sampled project. For each project, we will review available baseline data provided by the program. As necessary, we will collect additional baseline data, from visual inspection of affected systems, one-time measurements, short-term trend logging (customer control system trend logs or special metering), manufacturers specifications, and self-reports from building operators and tenants. Gross Savings. A site-specific M&V plan will be prepared for all measures (direct, indirect and spillover) associated with each of the sampled RCx projects. These plans will document the data collection and analysis methods used by the IOU in preparing the ex ante savings (kwh, kw and therms) estimates. The plan will also document the data collection and analysis methods that will be used by the evaluation team to prepare the ex post savings (kwh, kw and therms) savings estimates. These plans will be implemented, resulting in ex post savings estimates for each project. Net Savings. We will implement three levels of free-ridership analysis. The most detailed level of analysis, Standard Very Large Project NTG, will be applied to the largest projects in the gross impact sample. Standard NTG with a less detailed level of data collection and analysis will be applied to all remaining projects in the Gross Impact sample. The least detailed analysis, Basic NTG, which is the level of rigor specified for all the programs in this contract group, will be applied to all remaining projects (those that are not in the gross impact sample, as the net impact sample is larger than the gross impact sample). SBW Consulting, Inc. 9 December 19, 2007

10 Evaluation products The protocol-guided direct and indirect project-specific evaluations will provide an estimate of gross savings for each sample project. Our free-rider 1 data collection and analysis will also provide an estimate of net to gross ratio for each project, and subsequently an estimate of net savings. Overall kwh, kw and therm savings both net and gross will be estimated for the population of participants in each program and by utility using appropriate sample estimation methods. These findings, along with a full description of our methodology will be documented and presented to the CPUC Researchable Issues This evaluation is designed to address several research issues, as described below. Gross savings realized by RCx programs. This evaluation will produce estimates of gross savings 2 achieved from the programs in the RCx contract group that are consistent with the California Evaluation Protocols and the International Performance Measurement and Verification Protocol (IPMVP). The sample of projects that are analyzed in this evaluation will be carefully selected to be representative of the program populations so that the evaluation will produce accurate program level estimates of gross savings. The gross impact estimates for sampled projects will be based on field inspections and preretrofit and post-retrofit measurements so that they accurately reflect the gross savings achieved. The estimation of gross savings is a high priority issue to be addressed by the evaluation. The effects of free-ridership on the net savings from RCx programs. This evaluation will also produce estimates of net savings 3 achieved from the programs in the RCx contract group that are consistent with the California Evaluation Protocols and reflect the recent efforts of the MECT lead cross-contract workgroup on this topic. The estimation of net savings is a high priority issue to be addressed by the evaluation. The cost-effectiveness of RCx programs. The accurate estimates of gross and net savings will provide valuable inputs to the calculation of program cost-effectiveness (Total Resource Cost). Separate savings estimates will be produced for each of the programs, so that cost-effectiveness can be assessed by the IOUs at the individual program level. In addition, this evaluation will include a study of RCx Effective Useful Life (Section 6.2.5) that will further improve the estimates of cost-effectiveness. The value of the results from this impact evaluation in supporting other efforts of interest to the CPUC, such as DEER database development and the market effects evaluation. The primary purpose of this evaluation is to produce program level estimates of gross and net savings. However, within reasonable limits, the evaluation can also 1 A program participant who would have implemented the recommended program measure or practice in the absence of the incentives, audits or technical assistance offered as part of the program being evaluated. 2 The change in energy consumption and peak demand that results directly from program-related actions taken by program participants, regardless of why they participated. The change in energy consumption is calculated as the difference between annual energy consumption with the installed program measure and baseline energy consumption. 3 The change in energy consumption and peak demand that accounts for program influenced free-ridership. It is calculated by applying the net-to-gross ratio to the gross savings. SBW Consulting, Inc. 10 December 19, 2007

11 support other activities of interest to the CPUC. For example, the results might be used in forming normalized estimates of RCx impacts for various types of buildings that could be incorporated into the DEER database. Similar site-specific NTGR (net to gross ratio) data and other important site level data could be made available to the market effects evaluation contractor to support the needs of that evaluation, or used in revising the default NTGR table used by the CPUC and the IOUs in planning new programs. This is a lower priority issue for the evaluation. The presence of spillover from programs of this type and the significance of the savings generated from spillover measures. The scope of this evaluation includes an explicit analysis of energy and peak demand savings from spillover 4 measures. For spillover measures with significant savings the evaluation will produce gross savings estimates that are compliant with the California Evaluation Protocols and the International Performance Measurement and Verification Protocol (IPMVP). This information will be useful input to an assessment of the spillover effect across the portfolios of the IOUs Evaluation Protocols Applicable The MECT/CPUC specified the evaluation type and rigor levels for these RCx programs either in the RFP or in subsequent guidance. Rigor levels were assigned for energy savings, demand savings, Net-to-Gross (NTG) and Indirect impacts. As shown in Table 4, we propose some changes be made to the assigned evaluation types and rigor levels. First, we propose that all programs be assigned the protocol-guided direct impact evaluation type. This evaluation type is appropriate because these programs implement complex, controlsintensive changes to complex buildings and systems. Custom engineering analysis of savings is required to understand the impact of the program on participating facilities. Such projects do not lend themselves to a simplified verification-guided analysis. Second, we propose that all gross kwh savings estimates have enhanced rigor. Accurate estimation of RCx savings require measured data from pre and post configurations of affected systems. This is fundamentally consistent with IPMVP Option B and thus is consistent with enhanced gross savings impact rigor. Most of the RCx programs had been assigned basic kw rigor. We proposed that these be changed to enhanced to be consistent with the treatment of gross kwh savings. We believe this is appropriate as it is consistent with their expected treatment with Option B. Net rigor was set to basic. RCx tends to target large savings per project and to be conducted in the context of large and complex organizations and facilities. The cross-cutting workgroup dealing with large non-residential NTG issues has recently developed a new NTG rigor 4 Any non-rebated measure implemented during the program cycle that the customer attributes to participation in the program (including audits, education, and training) but that was not specifically recommended. The scope of spillover is determined by the knowledge and influence of the decision maker. Spillover applies to measures installed at the same site as direct or indirect measures and at other facilities of the customer located in the IOU service areas. SBW Consulting, Inc. 11 December 19, 2007

12 designated Standard Very Large. We recommend that this be used for all RCx projects in our gross saving sample with large savings, as it allow us to tell the full story behind each organization s decision to proceed with RCx recommendations and the role that the programs play in the causing the work to occur. For the rest of the impact sample we will apply Standard rigor to NTG, while for that portion of the NTG sample that is not part of the gross savings sample we propose that NTG basic rigor be applied in order to control the cost of these evaluations while still complying with the NTG sampling guidelines in the protocols. 4. DESCRIPTION OF PROGRAMS AND EVALUATION ORGANIZATION 4.1. General Overview of Type of Programs Included in the Plan This impact evaluation is being conducted for the ten RCx programs that were grouped by the MECT/CPUC under the contract group called. Each of the four IOUs offer one or more of these programs. These programs range from small 3 rd party programs dealing with very specific market segments and technologies, e.g, specific control strategies at Data Centers, to those which address many types of performance problems for a broad range of non-residential buildings and are operated as IOU Local Programs. As shown in Table 3, budgets range from less than one million dollars to near 12 million dollars. Even though these programs as a group are a small portion of the overall IOU portfolio budgets, they represent a dramatic increase in level of commitment in California to RCx programs. In fact, given the dramatic increase in spending represented by these programs and the highly specialized nature of the engineering skills needed to complete successful RCx programs, there is a legitimate concern that there may not be sufficient engineering talent available to deliver high quality services to all of the participants. This is primarily a question to be addressed by the IOU s process evaluations, however, if proven true; the effects of such a talent shortage may be experienced directly in reduced gross and net impacts of the programs. Further, RCx as a separate and distinct engineering practice specialty is a relatively new concept, having only taken hold in the last five years. This is especially true for the form of RCx promoted by these programs which is focused on energy savings as opposed to the broader, more well established practice of whole building commissioning that seeks to rectify all substantial deficiencies in building performance regardless of whether they have energy impacts. Again, the question of whether these RCx services are being provided in a fashion consistent with a well established engineering specialty is a question to be addressed by the IOU process evaluations, but as we explore the energy impacts of these programs we will be looking for any factors that explain poor results, and this may be among them Program-Specific Program Descriptions and Summary Program Theories This section provides a brief description of each of the programs in the contract group. The table below summarizes the three-year budget and savings goals for each of these programs, and the progress toward these goals from the IOU s September Monthly Report. In general, at this time, most of the IOU program managers feel the programs are on track with their respective implementation plans, even though all except one have not yet completed and paid for any projects. Based on our prior experience with similar programs it is not unusual for SBW Consulting, Inc. 12 December 19, 2007

13 project implementation to take a substantial period of time following the RCx investigation and the delivery of recommendations to participating customers. This is consistent with a finding that few or no project completions have yet occurred, especially if some of these programs did not start until late in In general, these RCx programs strive to improve the energy performance of existing plant and equipment for participating customers. However, most of them conduct investigations (audit or performance assessments) that identify opportunities for improving the operations or maintenance of existing assets, and in addition, they identify opportunities for replacing or adding new equipment, i.e., capital measures. In some cases, capital measures, such as the installation of variable speed motor drives are required if the building is to implement new strategies for controlling important systems. These rightly belong within the definition of RCx activities. Other capital improvements, for example more efficient motors or new lighting fixtures, rightly belong in the domain of more conventional retrofit programs (programs that provide incentives to reduce the cost of adding or replacing equipment). These RCx programs take different approaches to handling non-rcx capital improvements. In some cases, to reduce the transaction costs for the participants the program helps them implement all identified measures. In other cases, the participant is referred to another retrofit program. To the extent possible, we will attempt to isolate the impact of these non-rcx measures in our impact analysis for each of these programs. Table 3: September Status of Programs Spent / Installed as of 3-Year Budget and Net Savings September 2007 ID Program Name $ kw MWh Therm $ kw kwh Therm PGE2056 Monitoring-Based Persistence Commissioning 1,623, ,320 96,000 22% 0% 0% 0% PGE2070 Data Centers 1,800, ,384-25% 0% 0% 0% PGE2071 Hospitality Energy 2,772,521 1,965 9,689-12% 0% 0% 0% Efficiency Program PGE2072 Hospitals Pilot 2,352, , ,000 21% 0% 0% 0% PGE2090 Airflow and Fume 3,150,000 1,370 12, ,000 15% 0% 0% 0% Hood Control Systems Re-Commissioning PGE2091 Retrocommissioning 7,890,750 5,500 28, ,590 13% 0% 0% 0% Services and Incentives Program PGE2094 Macy s 2,578, ,271 61,600 2% 0% 0% 0% Comprehensive Energy Management SCE2508 Retro-commissioning 11,626,203 9,600 39,040-18% 3% 3% NA SCG3528 Retro-commissioning 147, ,000 1% NA NA 0% Partnership with SCE SDGE3027 Retro-commissioning Program 3,184,267 2,496 2, ,168 19% 0% 0% 0% All All 37,125,235 24, ,134,577 1,456,358 16% 1% 1% 0% SBW Consulting, Inc. 13 December 19, 2007

14 There are characteristics common to all large commercial-type buildings that provide the basis for the ten RCx programs. All building systems exhibit degraded performance over time, often undetected. Equipment fails or significantly degrades, control sequences and settings are temporarily changed then forgotten, maintenance is deferred or problems with original design and/or installation exist undetected for years. RCx is the expert and systematic evaluation of HVAC, lighting and some process systems with an emphasis on low-cost solutions easily implemented in the course of the RCx process. Further details about the specific operation and theory of these ten programs is provided below PGE2056 Monitoring-Based Persistence Commissioning (MBPCx) MBPCx is a third party program operated by Enovity that combines traditional RCx activities with ongoing monitoring to improve savings persistence. The program begins with 70 potential sites and after a two-stage screening process, ultimately completes approximately 13 projects. Project sites may include a wide variety of large public and private sector facilities, all with good potential for reducing energy use. MBPCx initially focuses on low-cost improvements and optimization of the building systems. A detailed engineering study quantifies savings attributed to fixes done in the investigation phase, recommends additional operation and maintenance improvements and capital retrofit measures. Enovity, at the customer s discretion, can proceed with installation of capital measures, providing turnkey service. Additional program benefits include building operator training, improvements in system documentation and system monitoring. Long-term monitoring capability is achieved through a diagnostic and tracking software system, PACRAT. This software program increases long-term savings persistence through data mining, analysis and reporting features utilizing the infrastructure provided by the existing building automation system. PACRAT identifies control strategies not performing optimally and equipment performance anomalies. Program theory: In addition to the General RCx program theory (above) the MBPCx program adds the benefit of maintaining the accrued energy savings over time through the installation of the PACRAT monitoring and feedback system. Progress to date toward goals: The PGE narrative for Q reports the program is on target to achieve savings goals PGE2070 Data Center Cooling Controls Program (DCCCP) DCCCP is a third party program operated by QuEST. The project will improve energy efficiency at up to 40 data center and server farm facilities. The program begins with a comprehensive auditing process. Based on audit results and recommendations, cooling system energy efficiency retrofits can be implemented to, for example, increase the precision of cooling system controls through addition of wireless temperature sensors or to add speed control to cooling unit fans. There is an emphasis on implementing measures which will not disrupt facility operations. QuEST, at the customer s discretion, can provide turnkey service from auditing through installation and staff training. Program funds are used to buy measure costs down to a one year payback SBW Consulting, Inc. 14 December 19, 2007

15 Program theory: Data centers are energy intensive, 24/7 operations that present significant opportunities for energy efficiency improvements. Parts of PG&E s service territory are a targetrich environment for data centers and server farms. Marketing efforts are leveraged by concentrating on organizations with multiple facilities. The program design anticipates known barriers to marketing energy efficiency services to this sector by offering full turnkey services including EEM design, bid specifications, installation and construction management as it suits the customer s needs. Progress to date toward goals: The PGE narrative for Q reports the program is on target to achieve savings goals PGE2071 Hospitality Energy Efficiency Program (HEEP) HEEP is a third party program operated by QuEST to improve energy efficiency at hotel properties and plans to serve approximately 35 buildings. The program begins with a comprehensive audit of building HVAC systems, identification of low-cost energy efficiency measures and deferred maintenance items which must be completed prior to moving to the next phase. Engineering and Design Activities are the next step, where RCx activities are conducted with low-cost measures immediately implemented by QuEST, a list is developed of additional RCx activities with cost and savings estimates and an EEM list is developed with detailed financial analysis and specifications. Third party financing is available to help mitigate any remaining financial barriers. Demand response opportunities are addressed with estimated savings and costs. Measures are selected by the owner for the Implementation stage. QuEST can provide full turnkey service for final implementation or assist the owner and their contractor through project completion and inspection. Program theory: The marketing effort is focused on large chains that manage their own properties and is designed to address and overcome known barriers to working with hospitality sector, e.g., limited staff availability, stiff competition for limited budget dollars and, occasionally, diffuse management/owner structures which complicate the decision-making process. Early adopters will receive public recognition for their efforts, hopefully generating interest among other owners. Progress to date toward goals: The PGE narrative for Q reports the program is falling short of expectations resulting from lack of interest by the larger hotel chains PGE2072 Hospital Pilot Program (HPP) HPP is a third party program operated by QuEST. The program plans to serve approximately 12 hospitals. HHP is implemented in four phases. Phase I includes analysis of facility energy use, building systems inspection and identification of low-cost energy efficiency measures (EEMs). Deferred maintenance items identified in the inspection must be completed by the owner prior to moving to the second phase. Additional areas for investigation and specific EEMs are detailed for follow up in Phase II. Phase II is a targeted investigation of promising areas identified in the first phase for the development of a detailed EEM list including itemized cost-benefit analysis. The third phase, Implementation, is a joint effort with facility staff and QuEST personnel to complete RCx activities and install EEMs. The fourth phase, the Hand-off, involves a final asbuilt calculation of measure savings, documentation and staff training to help maintain measure SBW Consulting, Inc. 15 December 19, 2007

16 savings persistence. The program also features a component where demand response opportunities are evaluated. Program theory: Hospitals are energy intensive facilities presenting significant opportunities for energy conservation. Marketing activities are leveraged by targeting organizations with multiple facilities. HPP offers a comprehensive array of services to best meet the variety of needs presented by individual facilities. To allocate program resources most efficiently, owners must demonstrate commitment by correcting all maintenance deficiencies noted in the Phase I inspection before proceeding to subsequent phases. Progress to date toward goals: The PGE narrative for Q reports the program is on target to achieve savings goals PGE2090 Airflow/Fume Hood Control Systems Re-Commissioning The program is marketed under the title Lab-RCx. It is a third party program operated by Newmatic Engineering (NE). The program is a comprehensive suite of engineered options to optimize energy efficiency in laboratories through RCx activities focusing on controls (constant air volume to variable volume), installation of usage-based controls, air change rate reductions and static pressure setpoint reductions. A detailed audit will be conducted in participating labs, resulting in a list of RCx activities and capital EEMs, estimated savings, costs and incentives. The owner will select the measures for implementation. NE, or another installation contractor, will proceed with the implementation phase. NE will provide quality assurance support, inspection, monitoring and verification services. Program theory: Laboratories use a great deal of single-pass outside air, often requiring heating and/or cooling, which presents big opportunities for energy efficiency improvements. Lab administrators tend to be focused on the activities within the lab and are frequently unaware of best practices which reduce energy use. The program seeks to establish a long-term awareness in the laboratory-operating community of the benefits of bringing specialized technical expertise into the facility to conduct RCx. Progress to date toward goals: The PGE narrative for Q reports the program is on target to achieve savings goals PGE2091 Services and Incentives This is a third party program operated by Portland Energy Conservation Inc. (PECI). The program strategy includes a careful screening process to assure that selected buildings have a high potential for realizable savings. The owner selects a RCx service provider from a prescreened list. The RCx provider conducts a comprehensive onsite investigation and analysis of building equipment and operations, identifying deficiencies and operational improvement opportunities. The results are summarized in a report with estimated cost, savings and incentives. PECI reviews the findings with the owner. The owner approves the final implementation list and selects a contractor. The contractor may be the RCx provider, another contractor or in-house staff. The RCx provider provides a final report summarizing all improvements to the facility. Documentation and training are provided for all implemented measures. SBW Consulting, Inc. 16 December 19, 2007

17 Program theory: The program is designed to overcome a common barrier to participation, which is the reluctance to engage with an unfamiliar service with an undefined outcome. PECI addresses this barrier through multiple marketing channels, e.g. in-person, professional organizations, conferences, phone, on-line, and frequent ongoing communication with the owners through the term of the project. Progress to date toward goals: The PGE narrative for Q reports the program is on target to achieve savings goals PGE2094 Macy s Comprehensive Energy Management Program (MCEMP) MCEMP is a third party program operated by QuEST to deliver comprehensive energy efficiency services to approximately nine Macy s retail stores in the PG&E service territory. The program begins with an Initial Analysis Phase, an audit followed by the delivery of a preliminary report detailing RCx and retrofit measures, along with identification of deferred maintenance items requiring correction before proceeding. Upon approval by Macy s staff, QuEST will proceed to the Detailed Investigation Phase, where a comprehensive energy study on the items approved by Macy s is completed. The study details RCx and capital retrofit measures with associated costs, savings and incentives. Project implementation commences with RCx activities and retrofit installation, as directed by the customer. QuEST provides technical support to Macy s staff through implementation by a third-party contractor, or provides construction services themselves. Staff training and periodic maintenance plans are provided at the end of the program to help maintain savings persistence. Program theory - This program builds on Macy s successful participation in earlier PG&E programs. The program is designed to overcome common market barriers with retail facilities, i.e., limited operations staff and budgets and lack of awareness of best practices in energy efficient operation and maintenance. The program takes an incremental approach to RCx and EEM development, requiring customer engagement and sign-off at each phase to ensure their commitment and to make the best use of program funds. Progress to date toward goals: The PGE narrative for Q reports the program is on target to achieve savings goals SCE2508 (RCx) This local program operated by SCE is designed to serve buildings. PECI is the primary contractor for SCE and is responsible for day-to-day program operations. The program strategy includes a careful screening process to assure that selected buildings have a high potential for realizable savings and that the building owners and operators have the motivation that will contribute to the success of the project. The owner selects a RCx service provider from a pre-qualified list and contracts directly with them. Incentive payments are made to the owner with the exception of the investigation scope and bid payment. After the investigation scope and bid, a customer with non-functioning equipment is required to make repairs necessary to allow the RCx services to be performed. The RCx provider then completes the investigation, helps the facility staff select measures for implementation, provides technical support for the owner and sets up an energy performance tracking system. Documentation and monitoring requirements SBW Consulting, Inc. 17 December 19, 2007

18 and staff RCx training ensure the program delivers persistence of savings in a cost-effective manner. Recommended retrofit measures are referred to applicable utility programs. Program theory: The program seeks to address and overcome a number of significant market barriers to customer participation in RCx programs through targeted marketing, frequently through existing business relationships. The program is supported by a web page with marketing materials, program requirements and protocols, case studies and RCx resources for owners and operators. Persistence of savings is a key goal of the program. Best practice tracking systems and monitoring and verification methodologies are implemented. Documentation and monitoring requirements ensure the program delivers persistence of savings in a cost-effective manner. Progress to date toward goals: The SCE narrative for Q reports the program is falling short of expectations due to numerous marketing and implementation challenges. The narrative provided a detailed list defining problems and potential solutions SCG3528 Joint SCE Program This is a local program operated by SCG which works through SCE s RCx program. Please refer to program description SCE2508 (RCx). SCE customers with SCG natural gas will receive funding support for natural gas related RCx efforts. Program theory: SCG has leveraged the resources of SCE s RCx program to provide a comprehensive RCx service to their joint customers. The relatively modest budget reflects this is a pilot-like effort to test the viability of the approach in the program cycle. Progress to date toward goals: The SCG narrative for Q reports the program is on target to achieve savings goals SDGE3027 Program (RCx) This is a local program operated by SDG&E. PECI is the primary contractor for SDG&E and is responsible for day-to-day program operations. The program strategy includes a screening process to assure that selected buildings have a high potential for realizable savings and demand response potential. The program selects a RCx service provider with skills best matching the customer s facility and sets the incentive for the investigation phase. The provider develops a scope of work which is the basis for the contract between the provider and the program. The customer is required to repair non-functioning equipment and perform maintenance activities necessary to performance of the RCx services. The RCx provider conducts the investigation and documents the results, including a cost-benefit analysis by measure. The report is submitted to the program for review and incentive calculation for measures selected for implementation. Selected RCx measures center on operational improvements with short paybacks. Major retrofit and demand response opportunities are referred to the appropriate utility programs for implementation. The RCx provider will oversee the implementation phase and verify postproject savings. At the owner s discretion, the measures may be implemented by in-house staff, another contactor, the RCx provider or a combination of these. Program theory: The program incorporates flexibility into the design to accommodate individual customer requirements. New approaches can be incorporated to continuously improve program SBW Consulting, Inc. 18 December 19, 2007

19 performance. Maintaining the energy savings over time is a key program goal. Strategies employed to ensure long-term savings persistence are a combination of documentation, training and system/building performance tracking to support ongoing measurement and verification. Progress to date toward goals: The SDGE (via PECI) narrative for Q reports the program is falling short of expectations but anticipates being on track by the end of Q Evaluation Type and Rigor Assignments Table 4 shows our proposed evaluation type and rigor assignments for each of the RCx programs. This table also notes the RCx programs that have been added to this group since the RFP and for which we have proposed changes. First, we propose that all programs be assigned the protocol-guided direct impact evaluation type. This evaluation type is appropriate because these programs implement complex, controlsintensive changes to complex buildings and systems. Custom engineering analysis of savings is required to understand the impact of the program on participating facilities. Such projects do not lend themselves to a simplified verification-guided analysis. Second, we proposed that all gross energy savings estimates have enhanced rigor. Accurate estimation of RCx energy savings require measured data from pre and post configurations of affected systems. This is fundamentally consistent with IPMVP Option B and thus is consistent with enhanced gross energy savings impact rigor. Most of the RCx programs had been assigned basic demand rigor. We propose that this be changed to enhanced Rigor, consistent with their expected treatment with Option B. Although Option B will be applied to all RCx projects, we propose to apply it in a cost-effective and strategic fashion. The level of detail in the pre and post investigation will vary depending on the expected size of the savings from the various specific actions recommended by the program to each participant. RCx programs are unusual, as they can provide many specific recommendations to a participant. Some of these may involve expensive and complex interventions for large systems within a building. Others may be important, but minor and immediate repairs, e.g., replacing filters for a critical fan or changing the position of a pressure rake or temperature sensor. We will group actions into significant measure groups that are amenable to impact modeling. Across these measure groups we will apply our engineering resources in a strategic fashion so that we minimize the overall uncertainty in our estimate of the impact on each participant. This may mean for some minor measure groups that we will do little more than inspect and verify that the changes have occurred and largely accept the program s estimate of the small savings that have accrued. For the measure groups with large savings, we will devote significant measurement and analytic resources to the examination of both pre and post performance and the resultant savings. Programs assigned an energy impact Rigor of enhanced are expected to achieve 90/10 level of precision as specified in the sampling protocols. However, given the number of RCx programs and the budget assigned to this contract group, it will not be possible to reach this level of sampling precision. To achieve 90/10, it would be necessary to reduce dramatically the engineering effort devoted to each sampled project. This would inevitably lead to much high SBW Consulting, Inc. 19 December 19, 2007