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HomeMy WebLinkAboutMINUTES - 02102004 - SD2 TO: BOARD OF SUPERVISORS •f ^,< CONTRA FROM: John Sweeten, County Administratort •x�,, ° . '- Y COSTA .. ,. .. COUNTY DATE: February 10, 2004 Qi V SUBJECT: STRATEGIC ENERGY PIAN FOR COUNTY FACI'LITI'ES SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATION(S): 1. ACCEPT the findings and recommendations of the Strategic Energy Plan for County facilities, produced by the firm AEPC Group, LLC, in consultation with the County General Services Department and County Administrator's Office; 2. ACKNOWLEDGE that the County currently spends $9.5 M annually on electricity and natural gas necessary to operate County facilities; 3. CONSIDER that the County can reduce annual energy costs by an estimated$1.2 M through implementation of efficiency measures recommended in the Strategic Energy Plan; 4. ACKNOWLEDGE that implementation of the recommended energy efficiency measures will have an initial cost to the County of approximately$4.5 M; 5. RECOGNIZE that this cost will be offset by$3.5 M the County will receive through January 1,2007 from the legal settlement with.the Williams Company and that such funds are restricted under the terms of the settlement for use on energy efficiency improvements; 6. CONSIDER that the remaining$1.0 M cost of the recommended improvements will be more than offset over time from energy savings achieved through implementation of such measures; 7. AUTHORIZE the Director of General Services, or designee, to implement the recommendations of the Strategic Energy Plan; 8. DIRECT the County Administrator, or designee, to proceed with developing a financing plan necessary to fund the recommended energy efficiency measures. CONTINUED ON ATTACHMENT: X_YES SIGNATURE: s RECOMMENDATION OF COUNTY ADMINISTRATOR_REC MENDATION OF BOARD C MITTEE —APPROVE _OTHER SIGNATURES ACTION OF BOAXb N F SM14RY 10, 2 APPROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY T14AT THIS IS A X UNANIMOUS(ABSENT NICE ) TRITE AND CORRECT COPY OF AN AYES: NOES. ACTION TAKEN AND ENTERED ABSENT: ABSTAIN: ON MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. Contact:Jason Crapo,335-1021 ATTESTED_Egg= 10. 2004 JOHN SWEETEN,CLERK OF THE BOARD OF SUPERVISORS cc: CAO,Capital Facilities and Debt Management AND COUNTY ADMINISTRATOR General Services,Capital Project Management BY DEPUTY - FINANCIAL IMPACT: Contra Costa County spends$9.5 million annually on electricity and natural gas to provide heating, cooling, ventilation,hot water, lighting and other conditions necessary to operate County facilities. Implementation of the energy efficiency measures recommended in the Centra Costa County Strategic Energy Plan will reduce the County's annual energy casts by an estimated$1.2 million,or 12%of total. AEPC estimates that implementation of these measures will have an estimated initial cost to the County of$4.5 million. :Many of the recommended measures can be implemented within the next several months,resulting in energy savings to the County beginning in FY 04-05. Other projects will require a second level of analysis to verify estimated project costs and resulting energy savings. Assuming initial estimates are confirmed,these projects will be implemented over the course of the next two fiscal years. The proposed financing plan calls for the recommended energy efficiency measures to be financed:over 10 years. Through FY 09-10,debt service will be fully offset by Williams Settlement funds, allowing the County to realize the full annual savings of$1.2 million upon implementation. From FY 10-11 through FY 14-15, energy savings will be offset by$540,000 in annual debt service,resulting in a net savings of$660,400. Beyond FY 14-15, debt service will be repaid and the County will receive the full savings of its investment for the remaining useful life of the improvements. The table below summarizes the cash flows and energy savings to the County under the proposed financing plan: Table 1 Contra Costa County Energy Efficiency Improvement Program- Proposed Financing Plan and Cash Flows Total Debt Pay-As-You- Balance Net Energy Year Revenue (l) Service 2 Go Costs 3 Of Funds Savin s 4 FY 02-03 1,000,000 1,000,00 FY 03-04 520,000 200,000 1,320,000 FY 04-05 526,400 270,000 200,000 1,376,400 450,000 FY 05-06 27,528 540,000 200,000 663,928 950,000 FY 06-07 1,513,279 540,000 1,637,207 1,200,000 FY 07-08 32,74. 540,000 1,129,951 1,200,000 FY 08-09 22,599 540,000 612,550 1,200,000 FY 09-10 12,251 540,000 84,801 1,200,000 FY 10-11 1,696 540,000 746,497 FY 11-12 540,000 660,000 FY 12-13 540,000 660,000 FY 13-14 540,000 660,000 FY 14-15 270,000 930,000 FY 15-16 1,200,000 FY 16-17 1,200,004' FY 17-18 1,200,000 FY 18-19 1,200,000 FY 19-20 1,200,000 FY 20-21 1,200,000 FY 21-22 1,200,000 Total $3,656,497 $5,400,000 $600,000 $18,256,497 (1) Williams Settlement funds plus interest earned at 2% annually. (2) $4.26 million financed over 10 years at 4.5%. (3) Cash-funded improvements, consultants and project management. (4) Assumes three-year implementation schedule. .......................................................................................................................................................................... .............................................................. BACKGROUNDREASON(S) FOR RECOMMENDATION(S): On December 17, 2002,the Contra Costa County Board of Supervisors accepted the terms of a settlement agreement with the Williams Company related to their business practices during the recent California energy crisis. The agreement includes a series of payments to the County between December 31, 2002 and January 1, 2007 totaling$3.5 million. The funds are restricted by terms of the settlement"to activities that promote alternative energy production or improved energy efficiency." Following resolution of the settlement agreement, County staff began a planning process for use of the settlement funds. The County General Services Department conducted an RFP for an energy consultant to develop a Strategic Energy Plan(SEP) for the County. After receiving nearly twenty proposals and interviewing six highly qualified firms, staff recommended the energy engineering firm AEPC Group, LLC of San Ramon, California to provide consulting services to the County in development of the SEP. On June 10, 2003 the Board of Supervisors approved a contract with AEPC to provide such services. In developing the SEP,AEPC Group surveyed the County's 34 largest facilities,representing nearly 60%of the County's annual energy consumption. In this survey,AEPC confirmed that the County has implemented a large number of energy efficiency projects in its facilities over the past decade,which have significantly reduced energy consumption. However, AEPC also found that the County has the opportunity to implement a number of additional improvements that can save the County an estimated $1.2 million in annual energy costs. The energy efficiency improvements recommended in the SEP fall into four categories, as summarized below: 1. Energy Efficiency Projects: • Install computerized controls on the heating,ventilating and air conditioning(HVAC) systems in a larger number of the County's facilities so that temperature can be more precisely regulated and energy consumption can be optimized; a Implement lighting standards for County facilities and install automated sensors to maintain appropriate lighting levels and to reduce electricity use when natural light penetration from windows is high; a Remove older, inefficient equipment and replace with newer and more efficient equipment that capitalizes on recent technological advances. 2. Supply Side Opportunities: • Implement"cogeneration"projects at the County's major 24-hour facilities utilizing natural gas-powered generators to produce electricity and utilize waste heat from such electricity generation to heat hot water for these facilities. • Participate in one of the State-sponsored"demand response"programs, whereby the County would receive a payment in exchange for agreeing to reduce energy consumption by approximately 5%at times when statewide energy demand is high. 3. Organizational Advancement: o Consolidate energy management activities under a single employee in the General Services Department to be hired on a contract basis as the County Energy Manager; a Enhance staff training to take full advantage of automated control systems. 4. New Construction and Facility Renewal: a Apply new energy efficient technologies when they become commercially viable and economically feasible; • Install latest energy efficient technologies when remodeling existing facilities. { f�kr 4{ 3qr i T. {{�F•+ K i4 E C 'ss' f F -s,i -+. E a per } i J x ' ' Y°r 5 ryt.Sy ''•''�;.°v�� f'°��'�-rte � " ��' - . F s yr a- kd Contra Costa County Strategic Energy Plan TABLE OF CONTENTS Executive Summary... .. .. . . . . . . . . . . .. . ..... . . . ..1 SECTION I Introduction. . .. . . .. .. . . . . .... . . .. . .. . . .. . .. . .. ....10 SECTION 2 The County's Energy Context. . . .. .. . . . . . . . ..12 SECTION 3 Strategies. .. ... . . . .. ... . . . . .. . . . .... ... . .. . ... . . . . .24 Strategy 1 — Energy Efficiency Projects...................27 Strategy 2 — Supply Side Opportunities..................36 Strategy 3 — Organizational Advancement...............43 Strategy 4-- New Construction and Renewal...........46 SECTION 4 Economic Summary.. . . . . . . . . . . . . . . . . .. . . . ... . .50 SECTION 5 Summary and Recommendations. . . . .... . .53 APPENDIX I County Data APPENDIX II Other Information .1s3` Gryu,D,LLC_ Januar}:22, 2004 ngS,GN•CONS?RUCTION-MANAGEtAENT Contra Costa County Strategic Energy Plan Executive Summary OVERVIEW Similar to other government entities in California,Contra Costa County is presently experiencing a challenging fiscal environment. Decreasingenergy costs through energy efficiency improvement measures is one way the County can reduce spending without sacrificing public services. A recent legal settlement between the Williams Company and several California jurisdictions, including Contra Costa County, has afforded an opportunity to evaluate potential investments in energy efficiency and alternative energy generation in County operated facilities. In response to this opportunity,the County is now developing its energy cost reduction program such that energy efficiency and alternative generation become an integral and strategic aspect of its annual capital planning and facility operations processes. This program capitalizes upon opportunities for the County to reduce`energy consumption,decrease operating costs,and minimize impacts to the environment,while maintaining the County's leadership in the area of energy efficiency,alternative energy generation and organizational advancements. The purpose of this Strategic Energy Plan(SEP) is to evaluate and recommend strategies that will provide Contra Costa County with a proactive and comprehensive energy management program, AEPC Group, Inc., supported by Cogent Energy, Inc.,produced the Plan,with valuable assistance from the General Services Department and the County Administrator's Office. With authorization from the Board of Supervisors, AEPC was hired by the General Services Department to evaluate County facilities and to explore savings opportunities. The AEPC/Cogent team was chosen based upon their unique combination of energy engineering analytical skills,engineering design, locality and ability to identify and address the complex issues and opportunities facing Contra Costa.County. Contra Costa County is to be commended for its'successful,on-going energy cost reduction program. Started several years ago,many countywide initiatives have been implemented including employee awareness and incentive programs,and energy efficiency and generation projects. Because of these past initiatives,the County has reduced its annual energy costs(CY 2002)by an estimated $1,739,000 or 18%at current energy prices. Examples of Contra Costa County's initiatives include: - Selecting a single source provider(Alerton)for an Energy Management Control Systems(EMCS)and promoting its use throughout the County - Dedicating the necessary resources to achieve and maintain energy savings by having a full-time EMCS specialist on staff to facilitate the installation, operation and staff training of these building automation systems - Spending additional funds to install these computerized controls down to the zone level (although this level of control entails a marginal cost,the County realizes its operational and financial benefits) - Mandating space temperatures of 76°F for comfort cooling and 67°E for comfort heating - Embracing and achieving a solid working knowledge of the Alerton EMCS The County currently spends$9.5 million annually in electricity and natural gas.The SEP's strategies represent an opportunity for the County to achieve an annual cast reduction of$1,170,000 or 12% of current energy costs. C .EPC _ _--YrOupt_I�L.0_ DESIGN C01'>Tfl ll:'TION FP.AN4�ENENi P, Contra Costa County Strategic Energy Plan This scenario assumes that all SEP recommendations are implemented at an approximate expenditure of$5.4 million in capital costs. It also provides the County with an overall net present value(NPV)of$6.9 million in savings assuming a 20-year amortization of costs. Although the California energy market remains uncertain,one fact holds true: reducing energy usage will always be the best hedge against price uncertainty. The Strategic Energy Plan was developed to become the backbone of the County's short and long-term energy planning process and is consistent with,and complements,the visions, objectives and efforts to reduce energy consumption initiated by the County in recent years.The Plan's recommended strategies fall into four categories: I. Energy Efficiency Projects 2. Supply Side Opportunities(including energy generation) 3. Organizational Advancement 4. New Construction and Facility Renewal Successful implementation of the Plan is predicated upon the following: First,the SEP's general strategies and specific tactical recommendations must be embraced,by County staff and became part of the County's planning and operatingprocesses. Addressing the County's energy infrastructure issues comprehensively and effectively will require updating the Plan at least annually so that it becomes an integral part of the County's overall facility and budgetary planning process. Second,this document is intended to inform the County of the potential benefits and impacts of adopting the recommended Strategies. Some of the document's specific project recommendations are preliminary in nature,and should not be implemented without a more detailed level of analyses. — Third,the County will need to continue to develop supportive policies;operating procedures,and funding strategies that are championed,monitored and controlled by senior management. Implementing the tactics recommended in the four Strategies,coupled with adaption of new management guidelines,will enable the County to; — Significantly reduce energy consumption — Implement financially beneficial distributed generation projects — Renew existing,aging infrastructure Specific recommendations for each of the four key strategies are highlighted below. STRATEGY ONE— ENERGY EFFICIENCY PROJECTS While the County has exhibited a `continuous improvement'mindset with regards to pursuing energy efficiency over the past decade,significant potential remains to reduce energy costs of its heating,ventilating and air conditioning(HVAQ equipment and lighting systems. HVAC and Control.Systems Recommendations Building HVAC and control systems offer distinct opportunities for reducing energy consumption and cost. These'opportunities`generally fall in several categories, including: _.A.E..P Group,_LLC_ v<�.G�, '�.17ti5TRi3'.`.'CtQrM1'=M?GEart�nt N Contra Costa County Strategic Energy Plan f 4,' t� Expanded use of direct digital control systems(DDC)and maximizing benefit of existing controls — Expanded implementation of variable speed drives on air handling and pumping systems Modification;or replacement of inefficient existing equipment and/or systems Approximately 75%of net energy reduction potential exists at facilities that operate continuously,such as the Contra Costa Regional Medical Center(CCRMQ and Martinez:Detention Facility. The targeted savings from HVAC related measures over a 2-year timeframe is shown in Exhibit 1.1. f xhi6it.i=.1—Sw"mary of HVAC and Control Investmenfs and Savings Potential, by Year Total Peak Total E4?ctric Electric Total Total Gas Total Gas Electric & Energy Demand ric Co Energy Cost Gas Cost 11ple Cost 2004 1,246,570 69 $ 151,3071 1911075 $ 139,860 $ 293,878 $1,385,140 4.7 2005 3#13 125 13 47,7391 3,626, 3.204 54 215 418 186 7.7 Total 1,548,696 82 $ 199,0461 193,701 $ 143,068 $ 348,093 $ 1,803,326 5.2 Implementing these HVAC projects will require a phased approach, including: — Investment grade audits on select projects — Identifying all funding and rebate opportunities -- Selecting design and implementation resources and schedules Ligaiing System Recommendations:Building lighting systems offer a significant potential for saving energy. Advanced lighting measures considered in this plan include: -- Develop and implement a plan to attain 0,6 watts/sq.ft. lighting energy density in common areas at all County facilities — Develop and implement a daylight harvesting program — Replace 32W T8 lamps with 28W T8 lamps during the course of normal group relamping activity The targeted'savings from implementing these treasures over a three year timeframe is shown in Exhibit 1.2 ExNA t 1.2-Summary ofLiglydno Dwe, »encs and SaWngs Potendal,by Year Peak Electric Electric Total Gas T o ta 1 '13 a s Electric & emawf !Electric Cost! Energy cost Gas,Cost I Energy savings Savings Savings Savings savings 1 saviligs 11 otal Project Payback 2004 1,542,577 138 $ 221,599 0 $ - $ 221,058 $ 571,464 2.6 2005 1,479,557 138 $ 211,926 0 $ - $ 211,926 ' $ 584,140 2.8 2006 415,364 138 52 743 €3 - 52 743 $ 78 326 1.5 Total 3,437,498 414 $ 485,727 4 $ - $ 485,727 $ 1,233,929 2.5 AEP ,Grc�u LLC 3 v y h- !@N.;'pNCTa.CTON ✓P NAGEMENT ......................................... ................................. ................................ ...........................-...... Contra Costa County Strategic Energy Plan Implementing these lighting projects will require a phased approach,including — Identify 'best-in-class' lamps,ballasts and control technologies. — Implement test sites to verify technology selections. — Develop a design template to provide standard guidelines for each building and technology. — Identify all funding and rebate opportunities. — Develop an implementation schedule based on self funding projects and projects that occur as normal maintenance activity. STRATEGY Two-SUPPLY SIDE OPPORTUNITIES Electricity supply side opportunities are currently limited to either purchasing electricity from PG&E or generating electricity on-site. The County's ability to purchase electricity from alternative suppliers remains in doubt in the near term due to the regulatory climate in California's energy markets. Because of limited purchasing opportunities,the SEP advocates a focus on developing County-managed power generating options(such as cogeneration)and implementing load management strategies(such as thermal energy storage and participation in demand response programs). For example,cogeneration systems at West County Detention Facility,the CCRMC,and Martinez Detention Facility,provide good economic potential,as summarized in Exhibit 1.3. Exhibit 13—SUMMary Of Cogeneration rJ?VVStWe17tF and Savings Potential Project Cost $657,003 $186,697 $533,736 $1,377,436 Incentive($1,000/kW to 30% Const. Cost) $197,114 $80,013 $150,000 $427,127 Adjusted Project Cost $459,889 $106,684 $383,736 $950,310 Payback with incentAes(in Years) 3.0 4.0 5.5 1 3.8 Payback without incentives(in Years) 4.2 7.0 7.6 5.5 In addition to cogeneration projects,the County can reduce utility costs through other supply side measures such as implementing a Demand Response Program. Demand Response(DR)refers to an energy management practice whereby facility operators to reduce their energy usage if requested to do so by a utility or other energy agency. The facility operator typically receives a financial reward for this activity,either in the form of a more favorable rate structure,or a fixed payment for participation coupled with a discrete payment each time they are asked to reduce consumption. Contra Costa County has an excellent opportunity to participate in demand response programs for several reasons: It has a substantial electric load and presents a valuable market for parties that develop and market DR programs. The County currently requires 17 MW at summer peak,and therefore has the ability to deliver a one MW reduction without causing discomfort to facility occupants. Comfort issues can be minimized because a one MW load reduction can come from small incremental reductions from numerous facilities, versus large reductions from a small number of facilities AEP Group, 4 ----------- ..................... t Contra Costa County'Strategic Energy Pian — The County has an excellent facility controls infrastructure that could be leveraged to effectively curtail load at multiple facilities from a single control location. This makes the logistics of complying with a demand response program easy to implement There are currently two demand response programs available to the County. -- The Demand Bidding Program(DBP): This is a voluntary,web-based demand and energy bidding program that offers incentives for reducing energy consumption and demand during specific DBP event periods — California Power Authority Demand Reserves Partnership(DRP): The California Power Authority (CPA)administers this program under contract with the California Department of Water Resources (DV ). DRP participants are given a'reservation payment in return for a commitment to shed pre- designated amounts of load when called upon The Demand Reserves Partnership program is an established program while the Demand Bidding Program is a pilot project administered by PG&E that has only recently been implemented. This report advocates that both programs be fully researched and implemented where feasible. STRATEGY THREE-ORGANIZATIONAL ADVANCEMENT The County has the ability to further reduce costs and improve operations by undertaking new organizational initiatives focused on energy management. These initiatives should be coordinated by an Energy Manager within the County's General Services Department. Consolidate Energy Management Function Under One Position: The function of managing energy consumption within County facilities is currently divided among several individuals each responsible for a particular aspect of energy management. Consolidating these roles under a single contract or permanent employee dedicated to energy management would result in a more comprehensive and coordinated approach and allow the County to take full advantage of numerous energy saving opportunities. There are currently several energy programs operated by various State agencies that offer the County opportunities for energy savings. These include: — Statewide programs sponsored by the California Public Utilities Commission and administered by PG&E to fund energy efficiency and distributed generation projects — EPA Energy Star building certification programs — California Power Authority bonding and demand response capacity reserve program -- Local programs sponsored by the California Public Utilities Commission for a wide variety of opportunities ranging from Building Operator Certification programs to vending machine efficiency initiatives At present,there is no position in the County to monitor these programs on an ongoing basis. At risk is that relevant funding and training opportunities may go unnoticed.Creating and filling the position of a County Energy Manager provides a means to focus on these various energy saving opportunities. Also, it will be critical to the success of many of the recommendations of this report to promote training and communication within the County's organization structure. For example, in both the common area lighting and the daylight harvesting efforts described above, it is imperative that employees understand the intent of the energy management strategy,and facilitate its application. _AEC Groff LLC G-SSf,-.N.r.ON:`RU�1'tn nM1,i at74��t�E»7 Contra Costa County Strategic Energy Flan ',gym��t�► In addition,there is a need for ongoing promotion and recognition of energy saving efforts throughout the County. If employee efforts to save energy are not recognized and rewarded,such efforts will decrease and energy consumption will rise. Finally, as the energy market in California continues to evolve in the coming years,the County will need to stay informed of changes in the market and opportunities that present themselves for energy purchasing. The Energy Manager would be the County's internal energy expert and help position the County to take advantage of new opportunities in California's dynamic energy market. Expand Staff Training and Certification: The energy systems in over 1.5 million square feet of County facility space are currently managed through digital control systems. This is an increase of over I million square feet in the past decade. These control systems are now capable of providing additional energy management functions, such as load shedding. Maintenance staff training and certification is critical in maintaining and expanding this capability. The SEP recommends that funds derived from participation in demand response programs be used to further the professional development of the County personnel who support and maintain these building systems. At risk is the potential for decreased effectiveness of controls systems,diminished capacity when personnel changes occur,and limited ability to use the system to capture additional opportunities,such as demand response. Establish a Building System and Equipment Tracking System. At present,the County has no formal lifecycle tracking and budgeting format for energy-related building systems. The risk is that opportunities to replace old, inefficient equipment may be missed,and budgeting in a,`triage' mode may not allow for adequate lifecycle analysis'and appropriate funding for replacement equipment. STRATEGY FOUR— NEW CONSTRUCTION AND FACILITY RENEWAL New construction and facility renewal projects in County facilities offer limited energy savings potential due to budget constraints and a limited number of new construction projects. Tangible gains can be made through continuing existing policies and practices including: — Continuing to place emphasis on high-efficiency,design standards,especially pertaining to air conditioning system on new installations in East County — Energy-efficient equipment purchasing policies — Explore and implementing a commissioning process on atrial basis on a new construction project. — Apply new and emerging energy technologies,as they become commercially available and economically beneficial — Develop a comprehensive energy policy for new leased facilities — An incremental funding increase of$508,004 for energy infrastructure in planned new construction. This would save an estimated$72,600 annually in energy,cost at full build-out. These estimates assume a 20°10 increase over Title 24 for nein buildings,which leads to an approximate seven-year payback at current energy costs. 6 A _.__._ _QIquP LLC AIan.^,»G•.r NT �.___..... .....:....,...,..w...x..�.fin :s::n mw: x: ,.,rf :..;...,.+w..:..< mwx.;.+?nvsSG...?H.'.:w+ ++:nx:...•. Contra Costa County Strategic Energy Plan SEP IMPLEMENTATION IMPACTS Exhibit 1.4 summarizes the financial impacts of Strategies 1,2 and 4. Due to the difficulty in quantifying recommendations made in Strategy 3,Organizational Advancement,only qualitative benefits are presented within this Plan,though:financial gains will certainly be realized. For Strategy 4,New Construction and Facility Renewal,the planned energy infrastructure investment by the County is shown in Column 2. Column 3 indicates the additional incremental investment recommended for implementation of the given Strategy. The projected energy and expenditure impacts of the Strategy implementation are then economically assessed relative to the incremental investment in the energy infrastructure,and financial benefits are provided,including Net Present Value(NPV)and by the simple payback period. Exhlbft 1.4— Total rmpacis by,S&ategryy Avo/ded roe rgy �1"narrrcfa/im flcatlans Ixfcrenrental Demand tAflflWon tltlffiad'o> Avoided Payback Plannvd E.Z E 1: (*W) (Mh) (7hwms) Enorgy Cost Pierfod SYrategles In &"&nt InImslm t NPV Yea nergv Efficiency Protects $ - $ 3,037,256 496 4,982,440 193,701 $830,540 $5,395,494 3.7 Supply Side opportunities $ - $ 1,462,851 - - (250,913) $266,46 $1,293,981 5. New Construction $ 10,075,000 $ 508,504 116 479,699 12,650 $72,643 $186,247 7. TtJ'& $ 10,07$,000 $ 5,005,611 $12 6,461,739 (44,5$2) $ 1,18.9,$54 $ 6,875,723 4.3 (t)rhase numbers are Inclusive of machanlcal and olectrkaal energy InNastructure only Exhibit 1.5 provides a ten-year protection of County energy costs from 2004 to 2014. The i4Business-as- usual"line provides an indication of likely energy costs based on County growth projections and energy prices in the absence of the recommended Strategies. The declining energy expenditures of the"business as usual"case are primarily due to anticipated PG&E electricity rate reductions. It is critical to note that the electricity pricing projections used in this report are the most recent available from the California Public Utilities Commission(CPUC). This CPUC report indicates that electricity prices may fall as the energy problems encountered by the State in 2001 abate. While electricity in the State of California is now a regulated market and prices can be projectedaccurately over a 1 to 2 year horizon, it should be remembered that energy remains among the most volatile commodities, and prices could move up as unforeseen events occur. AE PC GrouP,LLC 7 p_S*N.:-O\STF�U^,T DN Contra Costa County Strategic Energy Plan As discussed in detail in Section 3, `County Overview',Exhibit 1.5 provides>a ten-year projection of County electricity demand from 2004 to 2414. The"Business-as-usual"line assumes that electricity demand will increase based on County's facilities growth projections: Exhibit i.3—Prcr.ect+ed Elec&ic Do"an+d and SEP Irrrpac& 19,000 Baseline "Business-as-usual" Electric Demand 18,000 ; i maima 17,000 Projected Demand after SEP Implementation 16,000 2004 2005 2006 2007 2008 2049 2010 2011 2012 2013 2014 The SEP process has identified significant potential avoided costs that can be reinvested in critical facility initiatives—such as replacing and upgrading utilities infrastructure,promoting energy efficiency, improving facility operations,meeting the requirements of anticipated growth and protecting the environment.The benefits include accomplishing the following: — Upgrade the County energy infrastructure and reduce the operational costs associated with maintaining the existing infrastructure — Support ongoing County participation in development of sustainable design standards consistent with the California High Performance Schools(CHPS)design standards program — Improve the physical environment of the facilities to better support the County's vision, goals and objectives — Increase the reliability of the infrastructure and the ability to support more efficiently the public goals of the County — Further enable the County to be a leader in the promotion of energy efficiency and the application of energy policies being promoted by the State of California Public Utilities Commission(CPUC),the California Energy Commission(CEC),and the California Power Authority(CPA) — Enhance the relationship between the County and the community it serves, while minimizing the impact of the County on the environment AE $ GroupL LLC pcc,�r ..-,ONSTAl{CT'ON n nRf=�M=NT .{{X;4......ti...... NY.:+nnM1�v4e+% KK{�Sv^.`.{hmu'n.+ « .:... .�::. ::.. f//.x,WM'+++1 .v u.. :::: ..:...... .....nw.yux .... ::v. '3 Contra Costa County Strategic Energy Plan — Saving electricity through conservation reduces the amount of pollution that results from the generation of electricity. Exhibit 1.6 shows the amount of greenhouse gas that could be avoided annually through reduced generation if all of the energy savings recommended in this report are achieved. The greenhouse gas reductions noted in Exhibit 1.7 have the same positive environmental impact as removing the annual pollution from nearly 300 automobiles- permanently. Exhibit 1.6—Ammal Greenhouse Emissions Reduced through SEP Baseline Summary 6,903,638 Pounds rrf CO2 5,134,034 Grains of Nox 3,932,452 Grams of Sox REBATES AND INCENTIVES There are several programs funded through the CPUC that provide financial incentives for energy conservation projects, including: -- Standard Performance Contracting{SPC}—This program provides performance based incentives for projects that are larger, and considered custom in that they require skilled design teams to implement. Controls projects and chiller replacements are examples of projects that would qualify for SPC funding. — Express Efficiency—Express efficiency is design for smaller projects,which do not require extensive engineering,and are considered `off the shelf type installation. Variable speed drives and many lighting projects are considered good candidates for the Express Efficiency program. The County should aggressively pursue incentive funds to offset County capital requirements. 9 _- _ _ —_GrouE,LLC pc5'Q.�>::(N,TPUCTION ,MAW,3FM':N' Contra Costa County Strategic Energy Plan rw ori i irrrn irrr�+..rirrr�w_ i a in.rsrrwir.rsr�r SECTION l Introduction The Strategic Energy Plan(SEP)is the result of a collaborative effort between Contra Costa County (County)and AEPC with the intent to develop and document an ongoing and;far-reaching program to minimize energy costs through energy efficiency improvements,organizational advancements,and distributed generation opportunities. The SEP provides: – An analysis of current County energy demand,consumption patterns and costs – An assessment of the County's existing energy infrastructure – The development of Strategies that identify efficiency and supply reduction opportunities – A roadmap for implementing energy upgrade projects The Strategic Energy Plan is organized as follows: Executive Summary Section 1--Introduction Section 2--County Overview - Provides a summary of the County's current situation regarding energy utilization, demand, growth and capital planning. - Includes a summary of the energy utilization assessment performed for the County including energy usage,demand and costs,and disaggregation of total energy consumption into end uses. - Includes projected County growth estimates and the energy utilization and cost impacts due to this growth. Section 3—Strategies - Elaborates upon the four Strategies recommended in the SEP,as well as the strategic benefits and energy impacts they produce. - Each Strategy section begins with an overview that introduces its major components, and discusses the general approach that has been taken in the strategy's assessment. - County Assessment briefly discusses the current County situation and/or conditions relative to the Strategy. - Strategy Benefits& Impacts outlines and discusses the expected financial and qualitative benefits the County would realize by implementing the recommended Strategy. Section 4—Economic Summary - Presents the results of a 20-year cash flow analysis performed on the four Strategies considered in the Plan. Section 5—Summary and Recommendations - Summarizes the Strategies and their benefits - Provides recommendations for implementing and sustaining an SEP process. EP Gran LLL: 4 o=_sisn . 'Q STS IC- ........... ..............-........ ............. Y, Contra Costa County Strategic Energy Plan Ti'01 Appendix I---County Data Provides field audit data and calculation documentation for the County buildings under consideration and a data summary that was submitted to the County.The field audit documentation will not be provided to other persons included on the distribution list for this SEP,only the summary Exhibits. Appendix 11--Other Information Includes general information that supplements other sections of the SEP,as applicable. AEPCGroui),LLC Contra Costa County Strategic Energy Plan SE TIoN 2 The County's Energy Context INTRODUCTION This section seeks to provide an understanding the environment in which the County finds itself as it develops its strategic energy plan. The recommended energy management strategies in Section 3 are based on the assessment of the County's current energy context presented here. The County's energy context is shaped by three key factors: 1)the County's own energy needs,2)the State of California's energy policies,and 3)the private energy market. The analysis presented in this section leads to the fallowing findings in these three critical areas: - The County's Demand,fvr energy will Continue to Grow. Increasing demand for energy will be driven by two underlying conditions:the continued growth of the County's population and the trend towards greater electricity use in existing facilities to power energy-consuming devices. - The State of California's Energy Policies Offer Financial Opportunities. While still a work in progress,the State of California is developing energy policies to encourage improved energy efficiency and reduced energy demand. These policies have already lead to financial incentive programs that can benefit the County in implementation of its strategic energy pian. -- energy Prices Retrain Volatile. While the settlement of'PG&E's bankruptcy case may result in a near-term decrease in electricity,natural gas prices are likely to increase. However,the private market for energy in California remains highly dynamic and uncertain. THE COUNTY'S ENERGY NEEDS Even before the recent California energy crisis of 2001,Contra Costa County was undertaking efforts to improve efficiency and cut energy costs in its facilities. However,demographic and building-use trends suggest that without further energy reduction efforts,the County will experience an increased demand for energy driven by the following factors: -- Population Growth Will Lead to Growth in Facilities. As the County's population continues to grow,the demand for services will grow as well, suggesting a continuation of the 20 year trend towards increased facility space under County management. Increased space will result in increased energy demand. -- Rapid Growth in East County. Population growth is most rapid in the eastern region of the County, suggesting that growth in County facilities will be most concentratedin this region. Facilities located in the East County have a greater need for air conditioning than facilities located in West County areas,and therefore consume more energy. - Increased Energy Demand in Existing Facilities. In addition to energy demand associated with growth in occupied square footage over time,the County should anticipate increased energy demand in its existing facilities associated with the broad business trend towards increased use of energy-consuming devices in the workplace,such as computers,printers and new devices yet to be foreseen designed to increase worker productivity. EPC Group,LLC t 2 GECIG�•«£\>TFi�C?SJR MP.EVpCi£\tcNT .................................... ............................... .......................................... ......................... Contra Costa County Strategic Energy Plan PAST ENERGYMANAGEmENTAcHlEvEmEws In 1994 the County completed lighting retrofits in 12 major buildings in downtown Martinez, and projects at 17 other smaller facilities County wide. These projects,costing$590,000,earned the County over $124,000 in rebates from PG&E. Annual savings were estimated at$120,000, and 790,955 kWh. On March 6,2001,the County Board of Supervisors adopted the County's Energy Reduction Plan designed to reduce energy usage by 8%. This plan involved the following 4 strategies. — Major facility retrofits — Traffic signal retrofits — Low cost/low tech retrofits — No cost/operational standards Following the adoption of this plan,the County completed a number of significant HVAC retrofits, many of which included installing direct digital controls(DDC)and replacing old and inefficient machinery. DDC uses microprocessor-based technology to control energy consuming equipment more efficiently. Savings delivered by these projects were reported to range between 15%to 35%per building,with a total annual estimated savings of 2.1 million kWh(2.1 GWh). Other projects under consideration are proposed to save another 1.1 MWh annually. On August 7, 2001.the County Board of Supervisors agreed that staying abreast of emerging energy technologies was important,and that these technologies should be implemented whenever appropriate. The above list of highlighted projects and accomplishments provides an indication of the County's commitment to energy efficiency through over a decade of project planning and implementation. However,note that many smaller projects have not been highlighted and the total savings achieved may be understated. For example, additional savings have been achieved by County employees carefully controlling lights. Many employees conscientiously shut off lights when not needed,or reduce light levels where sunlight is available. As noted on page 65, it is estimated that aggressive lighting practices by County employees has saved over 7,683,000 kWh annually. 0 vEwEw of Co uNTY FAuLmEs Contra Costa County's total household population of 930,000(as of January 1, 2000)is expected to increase 1.3%per year to over 1,110,000 by 2015 for a total increase of nearly 20%.1 As of July 2002,the County maintained 4,433,424 gross square feet(GSF)of conditioned building space in 495 buildings. Exhibit 2.1 provides a summary of changes for select years from 1993, and indicates an average annual growth of 125,289 GSF per year, or 2.8%of current total GSF. 'Contra Costa Subrezional Study Areas' Association of Bay Area Governments,Projections 2002. AEPCGroup,LLC 13 STR'JCTipN MAt,14�, .......... ............y....... 4 } Contra Costa County Strategic Energy Plan r ExhiNt 2.1 County Gross Square feet of Condtioned Spare Change from Gross Scloarc, previous Year Feet year 1993 3,180,534 NA 1994 3,231,395 1.6% 1997 __3,399,433 1.7% 1999 3,856,508 6.7% 2000 3,964,046 2.8% 2001 ___4,087,718 3.1% 2003 4,433,424 4.2% In addition to changes in occupied space, Contra Costa County has a diversity of climates, which also influences energy demand. Facilities located in West County,near Richmond,require minimal air conditioning,whereas facilities located in East County will operate air conditioning equipment frequently during the summer. However, heating requirements do not vary significantly within the County. As noted earlier,new growth in the East County will be significantly more energy intensive than existing West County facilities due to higher air conditioning requirements. Exhibit 2.2 provides an indication of climate zone diversity within the County. Exh/bit 2.2—County Climate Zones Climate Zone 3 Y r �t 1lVESTtimate Zane 12 ~ CENTRAL FAST tz � .flOf�Sipd TRIYALLEY .:::... 1 Contra Costa County The future growth in energy demand driven by population growth and an increasing demand for services will require the County to undertake proactive energy management measures in order to contain energy costs. E1._s Croom,LLC 14 DESIGN.-CNSTRIJCT ON- 1,AN4GEMENT __ ................_ _ ......... ......... ......... ......... ......... ......... ......... ......... ......... ...._.... ................ . ......... ......... ......... + ' Contra Costa County Strategic Energy Plan CALIFORNIA STATE ENERGY CONTEXT The recent energy crisis in California resulted in renewed efforts by the State to develop its energy policies. Two influential State documents created by the California Public Utilities Commission can provide insight into how the County can further develop and implement its energy plan: 1. The California Energy Action Plan 2. 2003 Integrated Energy Policy Report A copy of the California Energy Action is provided in Appendix II. A brief discussion of the Action Plan and its implications follow below,and a discussion of the 2003 Integrated Energy Policy Report is found in the Executive Summary. The California Energy Action Plan. In May 2003,the State adopted an action plan to ensure cost- effective and environmentally sound energy for California's consumers and taxpayers. The state's plan outlines six specific means,through which specific policies, strategies,and actions will be implemented. The plan's goals are: 1. Meet California's energy growth needs while optimizing energy conservation and resource efficiency and reducing per capita electricity demand. 2. Ensure reliable,affordable, and high quality power supply for all who need it in all regions of the State by building sufficient new generation. 3. Accelerate the State's goal for renewable resource generation to 2010. 4. Upgrade and expand the electricity transmission and distribution infrastructure and reduce the time before needed facilities are brought on line. 5. Promote customer and utility-owned distributed generation. 6. Ensure a reliable supply of reasonably priced natural gas. The County,as discussed below,can influence several of these goals: Meet California's energy growth needs while optimizing energy conservation and resource efficiency and reducing per capita electricity demand. The County should interpret this as signifying the state's continued support for energy efficiency, including providing financial incentives for proven energy efficiency technologies. It also implies an opportunity to access funds and programs that encourage innovation in both developing technologies and energy management programs such as demand response, or other similar programs that are currently under development. Accelerate the State's goal for renewable resource generation to 2014. To date,the County has installed solar photovoltaic generating systems that produce 228 kW of electricity supplies roughly 0.8% of electricity consumed by County facilities(note,while these systems are nominally rated at 306kW, a review of actual output data indicate that the system peak production does not exceed 228kW). ;While this capacity is small when compared to total County demand, it is a start and State policies will continue to support investment in renewable systems. It is expected that the capital cost of installing renewable generating technologies(solar, wind generation,etc.)will fall and these systems will become increasingly more financially attractive. The institutional knowledge and skills developed by the County through the current solar installations will become increasingly important as this market develops. Group,LLC 15 D_$IGN 'ONSTFUCTIpS' •MAN AGEI1_NT ......... ... :.v: s' Contra Costa County.Strategic Energy Plan Promote customer and utility-owned distributed generation. Presently,the vast majority of electricity consumed in the State(and by the County)is provided by large,centrally located electricity generating plants,which supply this,energy over long transmission and distribution systems. This system is inherently inefficient because waste heat produced by the generation sites is not utilized,and considerable energy is lost transmitting and distributing this energy to the point of use, often many hundreds of miles away. Distributed generation involves small electricity generating plants located at or very near the point of use. This system of delivering energy is significantly more efficient because waste heat can be used in space or process heating applications and there are virtually no transmission losses. The County has several excellent cogeneration opportunities which are discussed in Strategy 2. Although the current electricity market appears stable, Californians still pay,on average,the fifth highest rates in the nation. Under average conditions,the State Iseleetr city generation system has adequate supplies to meet demand for at least the next six years.However,hot weather,coupled with other factors, could reduce reserves to very low levels as early as 2006. The Energy Commission believes that assuring adequate electricity resources should be a cornerstone of energy policies in California. If the State is to meet growing electricity demand with preferred resources,California must use an integrated process that takes into account demand and supply variations,efficiency gains,dependence on natural gas,and local reliability problems(e.g.,those experienced in San Francisco and San Diego). The process must also account for expansions and upgrades of the bulk transmission system;strategies for retiring or modernizing older,less-efficient natural gas-fired power plants;and the benefits to the electric system of allowing consumers to choose their own electricity suppliers and develop,their own supply through distributed generation including cogeneration. Further,the State is taking steps to reduce electricity demand by implementing new efficiency standards and programs and dynamic pricing,and aggressively developing renewable energy resources, as required under California's Renewables Portfolio Standard, ENERGY PRICES AND COUNTY CEHST PROJECTION To understand the County's annual energy consumption, electricity and natural gas bills for calendar year (CY)2002 were reviewed for 35 sites. This represents 56%of annual County energy expenditures, and 53%of total facility square footage. In addition, information on electricity production from the County's solar photovoltaic installations was considered in analyzing the County's annual electricity profile. This data was then used to develop net electrical and gas consumption estimates for all County facilities. Because there were no extraordinary events in 200 in terms of either facility activity or weather,this report considers that 2002 provides a good base year from which to project both energy usage and energy pricing scenarios. 16 ; AEP Group,LLC GES CCN• COw'S7RUCppv ..ViaN4CErviEvr ...... ......... ......... _ _ ......... ......... .... ................__ __ .................................................................. ....................... += Contra Costa County Strategic Energy Plan ""7 fit Electricity Electricity is served by Pacific Oras and Electric(PG&E)to each facility managed by the County. There are approximately 150 separately metered accounts serving these facilities. Approximately 29%of the electricity consumedby County facilities is purchased through time of use(TOU)rates(PG&E tariffs E- 19'and E20)with the remaining 71%o is purchased on non-TOU rates Ai and A10. Exhibit 2.3 below provides a summary of energy usage and costs by rate structure. Exhibit 2.3 Electrical Data by Rate Type A!uivai Annual coimty PG&E Rate Square Foot PeFuen.t ot Cost U-sa(j(l I Ds Time of Usel E19 E201 299al 37°/ $2.341 16.77 St?.439 Non Time of Usel Al,A10 71% 63%1 $1.831 11,80 $0.458 Average >: .. . $2.081 44.1 PG&E billings reviewed included all large facilities(all E19 and E20 TOU rates),and roughly 33%of smaller accounts(AI and A10 rates). Output from the County's two solar generating sites was also reviewed. The County's monthly electricity demand,consumption,and annual cost are presented in Exhibit 2.4 for CY 2002. Facilities with TOU rates are generally larger buildings with long operating hours, such as hospitals and detention facilities. Average time of use rates tend to be lower than non- TOU rates because the average price includes off-peak prices(late night and early morning)when energy is less expensive. The higher average cost per kWh for non time-of-use rates reflects primarily the fact that these rates apply to smaller facilities which do not operate at night. Since these facilities do not run at night(when off-peak power is less costly),high priced on-peak power used during the day accounts for a greater percentage of power used,resulting in a higher average cost per kWh. Exhibit 2.4-Eiectrccai Data Summary XY 2002) Grid Purchased Electricity Self Generated Electricity easetlne mactricai Data Month Peak kW Total kWh Peak kW Total kWh Peak kW Total kWh Jan 12,124 4,230,654 170 20,000 12,294 4,250,654 Fab 12,121 4,320,114 179 20,101 12,300 4,340,215 Mar 13,298 4,440,481 198 26,190 13,495 4,466,670 Apr 13,858 4,250,468 225 29,078 14,084 4,279,546 May 16,484 4,497,322 228 41,667 16,713 4,538,989 Jun 16,172 4,820,944 217 45,756 16,389 4,866,699 Jul 17,033 5,328,272 206 46,835 17,239 5,375,147 Aug 16,746 5,115,312 217 45,756 16,963 5,161,068 Sep 16,125 5,289,815 206 41,667 16,330 5,331,481 Oct 15,966 4,824,262 228 29,078 16,194 4,853,341 Nov 16,074 4,424,452 225 26,190 16,299 4,450,641 Dec 12,860 4,270,124 198 20,101 13,058 4,290,225 Totals 17,033 55,812,221 228 392,417 17,239 56,204,637 Total 17,033 55,812,221 228 392,417 Total Cost $8,502,988 Average$&Wh $0.1513 As noted in Exhibit 2.4, approximately 1.5%of the County's net electricity demand and 0.8%of its annual electric energy consumption is provided by renewable(solar)sources. � I 17 s li Group,LLC f>�5 SIJ .:Oti57 JCT�\" lA�'AC�M�N o r r, y Contra Costa County Strategic Energy Plan f=t�.3Ter�.st Exhibits 2.5 and 2.6 below show monthly electric peals demand,and monthly consumption and average cost/kWh for CY 2002. Exhibit 2 5—Baseline Peak Demand Prafrle('CY 200 2) 20,000 15,000 16,040 — --� i 14,000 12,400 10,000 5,000 6,000 1 4,000 1 2,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec L a Metered ■Generation i ❑Baseline Exhibit 2.S-Elmtrfcal Usage'&Average Energy Unit Cost(CY2002 j 6,000,000 $0.2000 $0.1800 5,00t1,000 $0.1600 4,000,000 $0.1400 or $0.1200 3,000,000 $0.1000 $0.0800 2,000,000 $0.0600 1,000,000 $0.0400 � $0.0200 0 $- Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec I 90 Metered&Generated ®Baseline — —Avg $.kWh AEP C Group,LLC g D<SIGN.CONSTRUC1,0N •MANA;`_M5N' �0, Contra Costa County Strategic Energy Plan Electricity Surcharge In June of 2001,the CPUC formally adopted a two-part surcharge applicable to all entities that receive electricity from investor-owned utilities operating in the State of California. Because the County receives electrical service from PG&E,this surcharge applies to all County facilities. This surcharge,adopted by the CPUC's Decision 01.05.064, is being imposed for an indefinite period and has two components: 1. Fixed surcharge of I cent/kilowatt-hour(kWh)on all kWh consumed 2. Variable surcharge averaging 3.5 cents/kWh on all kWh consumed. This surcharge is an attempt to offset the cost of wholesale electricity and to pay for debt incurred by the State during the 2001 electricity crisis. The impact of this surcharge has been to raise electricity rates by approximately 40% This resulted in over$3.1 million in additional charges on the County's CY 2002 electricity spend. While there is no rescission date for this surcharge,negotiations are currently underway between the CPUC and PG&E to phase this charge out. Exhibit 2.7 provides the current proposal between PG&E and the CPUC to phase this surcharge out over a period of years. This proposal is considered to be the most likely scenario to resolve this issue. The;'CPUCtPG&E deflator' is used in this report to project future prices for electricity. The `Average Cost/kWh'presents a projection(of the nominal, average cost of power for larger facilities, such as the Main Detention Facility and CCC Regional Medical Hospital (CCCRMC). Prices for electricity to smaller facilities on A 10 and AI rates are anticipated to follow a similar trend. Exhibit 2.7--Electricity Price Trend Projection 2009 20 0 12 CI513C f FCsE'de#rdta 0.0% 3 2°!0 -3.21%.1 .3:3°10 3.:Flr 3°Io -3.3°Ic 3,d�'Ju 3.3°/0 3.4°Io Average Cost IkWhI $0.1391 $01351 $0.1321 $0.128 $0.124 su201 $0.1171 $0.1131 $0.1101 $0,107 Electricity bills are made up of 7 primary types of charges: surcharge,electricity(commodity), distribution,competitive transition charges(CTC),transmission,taxes and other charges. Exhibit 2.8 shows how these charges affected the County's C'Y 2002 spend on electricity. All electricity-related charges are related to PG&E rates, Exhibit 2.8— Electricity ON CornpotrentF(CY2O02) Electricity CostComponentsU 0.5% f i r'ty� sr . a Surcharge fl 37.4% !EEectricity �i } A CI Distribution ct t.4 �wk� v O CTC mfi lTransmission .:' Other Charges LoCEC Tax and Decommissioning c c !33.4% _E,;,PC GToup,LLC 19 1� _ DES�Gu.CONSTRi CTICh; ................................................. Contra Costa County Strategic Energy Plan K Wl tw� Natural Gas Each facility managed by the County has a separate gas meter,and as a result,there are two hundred natural gas accounts, Gas is delivered by Pacific Gas and Electric but is purchased through a combination of long-term contracts and spot market purchases with the intent to achieve the lowest possible price while hedging future price risk. The Association of Bay Area Governments(ABAG)manages both the long-tenn contracts and spot price purchases. This purchasing structures involves the following three components: 1. Purchase a three year, fixed price contract for approximately 50%of gas requirements. 2. Purchase I year,"participating"fixed price contract for approximately 20%of requirements. 3. Purchase the remaining gas required(30%) on the spot market with pricing based on a floating NYMEX index. Although a study to evaluate this structure is outside the scope of this document,it is generally accepted that gas prices are extremely volatile, and that structured contracts are price neutral in the long run. For CY 2002,the county paid an average of$0.77 cents per therm,near market average. Exhibit 2.9 below provides a monthly summary of natural gas consumed by County facilities for CY 2002. Whilepricesin 2002 were above the historic average,2002 provides a good baseline year from which to project future a because no significant events occurred in this year which influenced gas consumption beyond normal consumption levels. Projecting future prices for energy is extremely difficult and the California Energy Commission produces a biennial report2 which considers many factors influencing the development,transportation and distribution of natural gas in California. This report indicates that natural gas prices will increase at an estimated average annual rate of 2.25%. It should be noted that this is an average,and that natural gas is one of the most volatile of commodities. It is not unheard of to have year-to-year price changes of 40%. Ekliffilt 2.9-Natural Sas Data Summary(CY 2002) list Natural Gas(MMetu) County Totals Baseline Fuel Data Month Non-core Core usage(mmatu) cost WSW Cost Jan 15,257 0 15,257 87,965 15,257 87,965 Feb 16,940 0 16,940 107,727 16,940 107,727 Mar 12,774 0 12,774 98,464 12,774 98,464 Apr 11,236 0 11,236 87,486 11,236 87,486 May 10,002 0 10,002 101,362 10,002 101,362 Jun 7,866 0 7,866 78,777 7,866 78,777 Sul 7,494 0 7,494 67,998 7,494 67,998 Aug 6,871 0 6,871 56,147 6,871 56,147 Sep 6,908 0 61908 56,081 6,908 56,081 Oct 6,927 0 6,927 56,242 6,927 56,242 Nov 8,710 0 8,710 65,159 8,710 65,159 Dec 12,837 0 12,837 95,689 12,837 95,689 123,821 $ 950,096 TOTAL 123,821 0 123,821 $ 959,096 Avg$/MMBtu$ 7,7458 2 'Preliminary Natural Gas Market Assessment' Prepared in Support of the Electricity and Natural Gas Report under the Integrated Energy Policy Report Proceeding,Docket#02-IEP-01. A PC 20 Group,LL(_- Contra Costa County Strategic Energy Plan Exhibit 2.10 profiles monthly natural gas usage and average cost per million Btu(MMBtu)for GY 2002. Therm costs can be obtained by dividing MMBtu by 10. Exhibit Z10– Natrrral'4Gas/Fuel Usage Prorile>&Average Entergy Unit Cost(CYZ002) 18,000 _"-_' $12.00 16,000 14,000 $10.00 M M 12,444 JJ `,:.,� $8.44 $ B l t 10,000 M u $6.00 M 8,000 B t 6,000-- $4.00 u 4,000 ' 2,000 $2.00 i 4 $e Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Metered Fuel Usag Baseline— Average t4MMetu Natural gas bills are made up of two primary types of charges; commodity and transportation. Exhibit 2.11 shows how these charges affected the CY 2002 spend on natural gas. Transportation charges are related to PG&E delivery of natural gas to facilities,while the commodity charges represent the purchasing agreement with ABAG. Exhibit 2.11–Natural Gas Bill Cw"ponents(CY2092) � ----- — Natrual Gas Cott Components --- - _ 230%', pp4 a,�fr w + �Commadtty ■Trans pottWion ai 21 t"1E C Group,LLC 7�Sr,M• CGiN STR'�C7�N iAan;��E�rE SIT ...... ......... :....... ..:,...... .,...... ...... ,,.•.....,. ........................... ...c.......twx ...:..::: :.: Contra Costa County Strategic Energy Plan IRVwr TEN-YEAR PROJECTED"BusiNESS-AS-USUAL` ENERGY USAGE AND COSTS A"Business-as-Usual"(BAU)projection involves predicting future energy usage and costs based on a non-intervention view;that is, a scenario that assumes no additional steps are taken to reduce energy usage or change unit costs. In establishing a BAU baseline from which energy reduction and energy management strategies can be measured, it is important to identify what market and organizational changes will occur overtime that will affect energy cost and energy usage. Energy cost drivers tend to be identified at the macro level(i.e.,fuel shortages, surcharges,etc.)and expressed in terms of unit percentage changes per year(e.g.,percentage increase per year in$/kWh,etc.). These projected percentage unit price changes have been discussed in previous sections and are restated below in Exhibit 2.12. Exhlbit Z12—Natural Sas/Fuel Usage Profile&Average Energy Unit Cost Year 2004 2005 1 2006 1 2007 1 2008 1 2009 2010 1 2011 2012 1 Electridi7y 1 -3.24l0 -3.2% -3.3% -3.3% -3.3% 3.3%' 3.4b% 3.3% -3.4% Natural Gas 2.3% 2.3°l0 1 2.3% 2.3%1 2.3%1 2.3%1 2.3%1 2.3% 2.3°!0 Predicting usage changes involves identifying new electricity demand,usually from new construction, but also from the changing nature of energy consumption in existing facilities(referred to as load creep). Future use projections may also consider how loads might reduce through the elimination or consolidation of facilities. These impacts are discussed further in the following section and in Strategy 4, New Construction and Facilities Renewal. Future Planning The rate of growth of County services is expected to be less than it had been during the 1990s due to slower population growth and declining State and Federal revenues. However,growth in facilities is expected to continue to grow at a rate of I%to 2%annually over the next ten years. In addition,the County should anticipate energy consumption to increase 0.5%to 1%annually due to"load creep,"the process by which working space becomes more energy intensive as the nature of work changes to incorporate more energy-consuming devices. Exhibit 2.13 provides the information and assumptions used to project County energy growth over the next ten years as a result of proposed capital projects and estimated population growth rates. The growth projections presented in Exhibit 2.13 represent current capital spending trends and should be considered a very conservative view. As the California economy improves,these growth numbers could be substantially higher. Exhibit 2.13—Energy Usage Growth Estimates Projected Energy Mfiza tionConsequence Total Planned Energy Total - Energy category investment Infrastructu kW kWh Therm (MMBtu ExpendIfure R'equlred subset(1) rmpacts(2) New Construction $ 67,166,66 $ 10,075,00( 830 1,193,342 90,850 13,158 $ 106,02 Load Creep(incl.FTE) N/A N/A 862 3,091,25 2,476 10,798 $ 486,84 TOTAL NEW REQUIREMENTS 1 $ 67,166,66A $ 10,075,0 1,691 4,254,5 93,326 23,956 $ 592,56 fl)These numbam ars Inclusive of mechanical and electrical enamy infrastructure only f2)This Is based on the current average rates for Electricity and Natural Gas AE1 C Group,LLC 22L- OESiGi.- O\STPi�CTIpN •MpNA6EMEI T Contra Costa County Strategic Energy Plan Exhibit 2.13 indicates that over the next decade, approximately$67 million will be spent on new construction, including$10 million on energy infrastructure. This growth will add .83 MW of new electric load to the County,while load creep is expected to add roughly .86 MW of additional demand. Load creep is the process by whichworking space becomes more energy intensive as the nature of work changes. For example,the growing use of technology(PC's, laptops, laser printer,copiers,etc.)is a prime source of new plug loads. The net effect of these two increases will be an additional $592,000 spent annually for electricity and gas. Summary of Issues As this section has argued,current trends suggest that the County will experience continued growth in demand for energy to operate its facilities over the next decade. While growth will not be as rapid as the past decade,the County's increasing population and the trend towards greater energy consumption in existing facilities will drive increased energy demand at a rate of,between 1%to 2%annually throughout this decade. This relatively mild growth in energy demand may not,However,be a good proxy for dhe cost of energy. The fact remains that energy is, and will remain, one of the most volatile commodities and indications are that this price volatility will increasingly be felt be energy users,such as the County. For example,the market for natural gas is deregulated and for the past several years consumers have experienced price variances of nearly 100%within a 12 month period. The market for electricity is more difficult to predict. While prices for electricity are projected to decline in the next several years it is by no means assured and prices could easily increase. Because the County's demand for electricity is expected to increase at a minimum of I%per year, if prices for electricity increase there is potential for significant and negative cost impacts. The best hedge against price volatility for natural gas and electricity has been,and will always remain,conservation because a kilowatt hour of electricity or atherm of natural gas conserved represents zero price risk. The County has the opportunity to reduce energy unit consumption by over 10%and reducing annual energy expenditures by nearly 12%. The energy conservation projects that achieve these savings are financially attractive under a range of inflationary and deflationary energy pricing scenarios. These projects are discussed in Section 3-Strategies. AEP Group,LLC 23 = - - nes,c;n..coas`��urno� .Maa �er✓,Er;r •:.......xw.enti'..tx:v�.a+'�:K�o>x .xuc: ,., .:...... ::..... ....... ..... :. ;.,,. .:.:� .:;. Contra Costa County Strategic Energy Plan SECTIoN 3 Strategies OVERVIEW This Strategic Energy Plan was developed within the context of the County's energy goals and objectives, organizational structure, and the energy environment in California. The energy efficiency recommendations made in this report are applicable primarily to building comfort systems(heating, ventilating, air conditioning,and lighting), and therefore apply to all buildings operated by the County, from detention centers to general administrative facilities. PROPOSED STRATEGIC APPROACH The Plan proposes four key Strategies for implementation that will provide Contra Costa County with a comprehensive and proactive energy management program. This program will provide opportunities for the County to reduce energy consumption,decrease operating costs,and minimize impacts to the environment,while maintaining the County's leadership in the area of energy efficiency and alternative energy generation. The Strategic Energy Plan was developed to become the backbone of the County's short and long--term energy planning process and is consistent with, and complements,the visions, objectives and efforts to reduce energy consumption initiated by the County in recent years. The Plan's recommended strategies fall into four categories: — Energy Efficiency Projects Supply Side Opportunities — Organizational Advancement — New Construction and Facility Renewal Successful implementation of the Plan is predicated upon the following: -- First,the SEP's general strategies and specific tactical recommendations must be embraced by County staff and become part of the County's planning and operating processes. Addressing the County's energy infrastructure issues comprehensively and effectively will require updating the Plan at least annually so that it becomes an integral part of the County's overall facility and budgetary planning process. — Second,this document is intended to inform the County of the potential benefits and impacts of adopting the recommended Strategies. The document's specific project recommendations are preliminary in nature,and should not be implemented without feasibility level analyses. Third,the County will need to continue to develop supportive policies,operating procedures,and funding strategies that are championed,monitored and controlled by Senior Management. AEP Group LLC 24 7_S16N• CCNTR;iCTION - V4NA3EM=NT Contra Costa County Strategic Energy Plan f1.1fri4c''�^' t Implementing the tactics recommended in the four Strategies,coupled with adoption of new management guidelines,will enable the County to: — Significantly reduce energy consumption -- Implement financially beneficial distributed generation,projects — Renew existing,aging infrastructure Because energy usage will be a critical issue for California over the next decade,this section also includes details on projectedCounty expansion and the energy utilization and expenditure impacts relative to this infrastructure growth. Exhibit 3.1 summarizes the financial impacts of Strategies 1,2 and 4. Strategy 1,Energy Efficiency Projects,beginning on page 27 identifies energy conservation measures at numerous County facilities that, if fully implemented,would reduce the County's annual energy spending by over$800,000 based on an incremental energy infrastructure(E.I.)investment of'$3.0 million. Strategy 2, Supply Side Opportunities,beginning on page 36 identifies options for reducing the County's annual energy spend through onsite generation(Cogeneration)of electricity and employing consumption strategies to reduce energy costs during peak price periods. Strategy 4,New Construction. beginning on page 46 discusses how$500,000 in additional incremental investment in energy infrastructure can save over$72,000 annually in energy costs for projects defined in the County Quarterly Facilities Projects report,April, 2003. Exhibit 3.1=Summary of Energy and Cost impacts for Strategies 1, .2, and 4 Avoided fiber W llnanda/I %aHons gecommen Electric Electr% NG Sinil A& 1nerementel Demand tltllizatlon ttdllzatton Avoided Payback Planned E.r E.I. (kw) (kWh) (Therms) Energy Cost Per/od Strategies Invest-meat I Invashnent Nom° ye rs nerlxy Efficiency Protects $ $ 3,037,256 496 4,982,644 193,701 $830,5 $5,395,494 3. Supply Side Opportunities $ $ 1,462,851 - - (250,913) $266,46 $1,293,981 5. New Construction $ 10,075,000 $ 508,504 116 479,699 12,650 $72,64 $186,24 7. TOTAL $ 10,075,000 $ 6,{108,69'1 6'12 5,46'1,733 (44,550 $ 1,159,654 5 6,875,733 4.3 (1)These numbers are inclusive of mechanical and electrical energy Infrastructure only STUDY METHODOLOGY The SEP was developed through three research methods: I. Extensive review of historic energy data,County facility records,and State and County policies 2. Site surveys of County facilities to identify specific energy conservation opportunities 3. Modeling of energy conservation projects to identify which projects are valid as self funding energy efficiency projects,and which projects should be recommended for inclusion in broader normal facility renewal planning efforts ('� - - A EPCGr��LLC25, LIES GN,'-0NSTRUCTIDm -&AaWAC—M-NT Contra Costa County Strategic Energy Plan Exhibit 3.2 provides a list of facilities that were surveyed for the development of this report. This list constitutes only 8%of total buildings operated by the County,but comprises almost 49%of total square feet and 58%of annual electricity cost. Exhibit 3.2-Summmy of Fadli>ties Audited 100©1/1tARD 172.300 209;970 51 PINE ST 120,778 95,529 5 COURT ST 36,242 32,870 800 FERRY ST 27,500 22,662 CC REG MED CTR 210,0001 427,228 2500 ALHAMBRA 144,3861 128,537 50 DOUGLAS DR MTCE 90,782 104,380 30 DOUGLAS DR 36,305 100,035 595 CENTER AVE 42,048 87,887 597 CENTER AVE 50,021 54,435 40 DOUGLAS DR 34;554 47,535 30 MUIR RD 40,574 40,152 10 DOUGLAS DR 29,776 31,551 202 GLACIER 77,589 142,537 2530 ARNOLD DR 112,904 123,624 1960 MU R 20,000 48,498 40 GLACIER 8,500 33,788 1980 MUIR 23,3901 31,283 2475 WATERBIRD WAY 19,680 23,237 2366 STANWELL CIR 21,355 21,618 255 GLACIER DR 33,281 21,197 5555 GIANT ROAD 749,897 342 173,397 100 38TH ST 884 93,045 1275 HALL AVE 000 78,114 1305 MACDONAALD 43,756 151 LINKS PAULING DR 41,295 41,482 847-BBROOKSIDE 18,995 30,828 242513ISSO LANE 25,035 25,254 847-C BROOKSIDE 7,500 22,383 2311 LOVERIDGE RD 130,900 140,471' MARSH CREEK DF 67,507 84;682 4545 DELTA FAIR SL 52,600 55,234 OAYRF 27,9801 50,777 4549 DELTA FAIR BL 38,4001 43,656 TOTAL2,202,460 1 2;711,412 While energy efficiency opportunities were not found in all facilities studied, Strategies 1,2,and 4 provide detailed information on what opportunities exist,and the energy and financial implications of these projects. AEFCGroup,LL,C 26 DESIGN-;:pNSTRUCTIGN •tv ANAC,EMINT tE:S�rq� Contra Costa County Strategic Energy Plan s Strategy One - Energy Efficiency Projects OVERVIEW The County has focused on reducing energy costs for well over a decade. Numerous successes in developing funding and implementing energy efficiency projects have highlighted this effort. Throughout this period,the primary focus has been, and continues to be on two primary areas: 1. Reducing energy consumption 2. Reducing the"per unit cost"of energy The SEP represents a preliminary audit to identify and present energy cost reduction opportunities. Each energy project was identified during a facility site visit and was evaluated based on potential energy impacts, operation and maintenance impacts,avoided energy costs, implementation cost, simple payback period and net present value. Generally,this assessment focused on County buildings greater than 20,000 square feet and those projects that have simple payback periods of 10 years or less and useful lives greater than the payback period. Occasionally,exceptions are made that allow payback periods of longer than 10 years if the recommended project was consistent with existing County initiatives, such as expanding the use of digital controls on building systems,or if it was felt that further engineering work was required to clarify the energy implications of recommended project. The process of identifying opportunities to reduce energy use begins with an understanding of how energy is consumed. The vast majority of energy consumed by the County is used to provide light to indoor spaces, and condition the air environment within these buildings to make them comfortable for occupants. Exhibit 3.3 provides a general view of how energy use is used within County facilities by system,such as lighting,cooling,etc.. While this energy use distribution will vary from building to building, and also day to day and season to season depending on the weather, in general 31%of energy purchased by the county is consumed by building lighting systems. /bit 3.3—Facility Electrical Energy Use Distribution Similarly, mechanical systems (Pumping, air distribution, cooling towers,and cooling on Exhibit 3.3) Cather Loads that condition the air within a facility 9% o Plug Loads _Lighting consume nearly 5010 of the energy ° purchased by the County. For this fi{ 31 i° reason Strategy 1 focuses on Building ,y f Mechanical Systems and Building Lighting Systems. Plug loads; such { t' as computers and office equipment, ding account for roughly 9%of energy 17% consumed are not analyzed but are the " Pumping subject of energy efficient purchasing Cooling Towers policies discussed in Strategy 4. 4% Air Distribution 25% AEPC _ 27 Graup,L.LC _c51�N �.O VSTR ti^,7 i.(Jh+ +vIRN4�c MINT ...................... tarru:tt::x, :txusu. .:..::... .............................. Contra Costa County Strategic Energy Plan r FINDINGS AND RECOMMENDATIONS ASSESSMENT OF BUILDING MECHANICAL SYSTEMS An assessment was made of the following systems, including the identification and evaluation of opportunities: — Central energy conversion systems including chilled water, steam,hot water,domestic hot water, electrical generation and/or back-up power.Overall,these systems are highly efficient. — Distribution systems including electrical substations and distribution,chilled water, steam,hot water,and domestic hot water. — Energy communication,controls, and energy management systems at a building level(facility- wide capabilities are addressed in Strategy One) The County is commended for its proactive stance relative to energy efficiency. Examples of Contra Costa County's initiatives include: — Alerton was selected as the primary supplier of Energy Management Control Systems (FMCS)and is promoting its use throughout the County. Standardizing on a single vendor is in the County's best interest from an in-house maintenance and support perspective. This is evident in the non-Alerton FMCS systems,found in a few facilities, where on-site operators have limited access to,and inadequate knowledge of,the control system. — The County has dedicated the resources necessary to achieve and maintain energy savings by having a dedicated control systems specialist on staff.This person facilitates installation and operation and provides training to other staff of computerized control systems on County sites. This position, and particularly the dedication of the person selected for this position, has a significant impact on the energy consumption and the maintenance of the achieved energy saving that has and will continue to be achieved from the installation of these computerized control systems. — Controls installed down to the zone level. Although this level of control entails a marginal cost,the county realizes its operational and financial benefits. It is particularly attractive today, as costs for these controls have decreased similar to other microprocessor-based products. All too often DDC zone controls are sacrificed to maintain construction budgets. However, a relatively small cost reduction is realized while significant energy savings potential is lost.DDC zone control allows for: (1)more advanced energy saving control functions,(2)more precise space temperature control that saves additional energy, and(3)a tamper-proof, reliable method of maintaining mandated space temperatures. In addition, DDC controls, particularly those applied at the zone level,provide documentation on a system's functional performance and adds significantly to preventative and reactive maintenance efforts. These benefit's significance, though difficult to quantify, are often underestimated. AEPCGroum LLC 28 DESIGN•CONSTRUCT,ON<MANAGEMENT ......... ......... ....... .. _ .. __.... _..... . _ .... ......... ......... ......... ......... ......... ......... __ _ __ ....._ .. .... ......... ......... ......... ........ . ........._. .. ............. f Contra Costa County Strategic Energy Plan The County has mandated space temperatures of 760F for comfort cooling and 67°F for comfort heating. These temperature setpoints provide significant energy saving. However,this mandate is only effectively enforced where DDC zone controls are installed. All other zone control technologies are under the control of the occupants and space temperatures can be changed soon after being set by facility HVAC engineers. The County mandate of the space temperature set points,though, does help with the enforcement of these limits. Exceptions to the 76°F/67°F space temperature mandate are medical spaces, laboratory spaces and inmate sleeping spaces. — Maintenance staff have embraced the Alerton computerized control system and have achieved a good working knowledge through consistent use and frequent training,. County personnel were witnessed to use the Alerton system for both troubleshooting and as a preventative maintenance tool.A high degree of capability across the entire HVAC building engineering staff has been achieved with regard to the Alerton control system. Unfortunately,the same cannot be said of other installed computerized control systems. These other systems were not provided with on-site graphical user interfaces,typically do not control zone level devices, and are not as well supported by the contractors that installed the system. This situation justifies the continued sole sourcing of the proprietary Alerton system for all new and retrofit installations as funds permit. Mechanical System Energy Conservation Recommendations The following pages provide a general discussion on the various building mechanical system energy conservation measures(ECMs)and strategies summarized in Exhibit 3.4. Details about these recommendations can be found in Appendix 1. Exhlblt 3.4—Mechanical SystemConservation Potential,By Technology Group Total Peak Total Total Electric Electric Electric Total Gas Total Gas Energy Energy Demand Cost Energy Cost Cost Energy Conservation Savings Savings Savings Savings Savings Savings Total Project Payback Technology Group (kWh/yr) (M) ($tyr) (thermstyr) ($/yr) ($/yr) Cost($) {Years} Air Handler ECMs 841,353 8 $ 95,942 187,541 $ 134,446 $ 230,387 $ 1,153,676 5.0 Chiller Plant and Pumping EOMs 344,499 66 $ 48,690 0 $ $ 54,673 $ 217,383 4,0 Boiler PlantECMs 21,349 0 $ 2,863 0 $ $ 2,863 $ 24,943 8.7 Control ECMs 341,495 8 $ 51,551 6,160 $ 5;346 $ 56,898 $ 407,324 7.2 Total 1,548,696 82 $199,046 193,701 $139,792 $ 344,821 $1,803,326 5.2 Chi/,ler Plant and �hi/ler Part i`-'upiing Ct liXs Chiller plants are a collection of technologies that provide air conditioning to a building. Sometimes this is accomplished by generating cold water which in turn is used to cool the air in a building. Other chiller plant technologies consist of systems that use special refrigerants to provide cold air to a building. These systems run all year, even in the winter because the heat generated within a building by people and machines must be removed to keep a building comfortable. These systems consume roughly 24%of the annual energy purchased by the County. The field analysis of County building revealed the energy could be saved through upgrading and or replacing select building systems to include; ly AE29 L"_La_Grot��_LLC oes�N.cao;laucrio= .NANaeE -N1 _.... .. ........ .,a:.....•awe. -.::::::: ... ..:....:::::::::::::::::::::::::::::::::::....o:...:.,:::...:::::.......v::::::::::::::::. ::::. .. Contra Costa County Strategic Energy Plan -- Optimized:Condenser Water Pumping — Optimized Cooling Tower Operation - Installation of Tower Free Cooling -- Installation of VFD on Centrifugal Chiller — Trimming Condenser Water Pumps' Impellers — Installing VFD Chilled Water Pumping — Installing VFD on Cooling Tower Fans Boiler Plant ECMs Boiler plants represent a broad range of equipment that consumes natural gas to provide hot water to heat a building,and also to provide hat water for domestic use, such as kitchens and restroom. Because the climate in Contra Costa County is generally mild,gas usage and costs are relatively low compared to electricity usage,representing less than 12%of county energy expenditures. Field analysis of County building did reveal that energy could be saved through upgrading and or replacing select building systems to include; — Valving-Off a'Non-Operated Boiler --- Replacing Select Boilers -- Removing Space Heating Loads Where Not Needed Air Handler ECMs .Air handler ECMs are found in the mechanical systems that circulate air throughout a building. Air handler systems are generally comprised of large fans that both push and pull air throughout a building, allowing both the temperature and air quality within a facility to be controlled. These systems run at all times when a building is occupied, and consume roughly 25%of the annual energy purchased by the County. The field analysis of County building revealed the energy could be saved through upgrading and or replacing select building air handler systems to include; — Variable frequency drives(VFD)controls of economizer power exhaust Installing indirect evaporative pre-cooling with heat recovery — Installing air-to-air heat recovery coils — Reset cooling coils on select air handling units(AHUs) — Fixing indirect/direct evaporative cooling system — Installing direct evaporative cooling system — Replacing multizone rooftop units(RTUs)with variable air volume(VAV)AHUs — Installing VFDs on VAV fans — Converting constant volume(CV)single zone units to VAV — Installing time-of-day controls — Installing economizers on various AHUs -- Installing barometric relief on built-up AHUs — Adding VFDs to purge fans _AEPCGrow IIC 30 LIS::ihl.C'JNSTR'J.^.TOhI MAIi4t;�M.�NT 'v Contra Costa County Strategic Energy Plan ;. Energy Management Vontrol Systems ECMs The County has excelled at installing advanced building energy management systems. This trend is likely to continue given the skills acquired by County personnel and favorable cost trends from manufacturers of building controls systems. The field analysis of County building revealed the energy Mild be saved through upgrading and or replacing select control systems to include, - Optimizing various existing control systems - Adding direct digital controls(DDC)to select buildings - Retrofitting existing obsolete DDC controls systems to new Alerton systems -- Installing PC Monitor Controls The benefits of implementing the mechanical system energy conservation measures will be realized by specific buildings and departments,as shown in Exhibit 3.5. Exhibit 3.5-Potential(Technically)HVAC ECUs by Facility Peak Departmont Agricultural 2366 Stanwell 27,130 $ 4,494 91d $ 77W-r5,284 5,284 $646D0 12.2 Community Services 847 B Brookside 10,360 $ 1,470 $ 1,470 $ 8,260 5.6 ENSD 151 Linus Paulin 40,447 $ 5,689 $ 5,689» $45,700 8.0 EHSD 4545 Delta Fair 11,007 $ 1,853 $ 1,853 $ 9,661 5.2 General Services 2475 Waterbird 24,228 $ 3,440 506 $ 471 $ 3,911 $35,360 9.0 Health CCRMC 686,963 42 74,755 188;505 138,512 215,977 1,057,367 4.9 Health Los Medanos Health Cntr 53,170 2 8,312 -937 -773 7,539 38,838 5.2 Health 595 Center 8,771 -1 $ 1,231 $ 1,231 $ 3,070 2.5 Health 597 Center 8,892 -1 $ 1,595 $ 1,535 $ 3,469 2.2 Mixed 50 Do las 8,771 -1 $ 1,232 $ 1,231 $ 3,070 2.5 Minced 10€Douglas 8,892 -1 $ 1,595 $ 1,595 $ 3,469 2.2 Mixed 2425 Sisso $1,495 8 13,513 2,124 1,877 15,391 129,204 8.4 Mixed 651 Pine 26,798 9 $ 4,929 $ 4,929 $ 9,660 2.0 Probation 202 Glacier 221,061 01 29,263 2,620 2,208 31,491' 141,061 4.5 Probation Orin AlanYouth Recovery Fac. 42,063 $ 6,786 $ 6,786 $46,240 6.8 Public Defender 800 Ferry 16,023 $ 2,350 $ 2,350 $27,500 11.7 Public Works 255 Glacier 10,008 $ 1,458 85 $ 66 $ 1,524 $ 9,141 6.0 Sheriff .Juvenile Hall 21,349 $ 2,863 $ 2,863 $24,943 8.7 Sheriff Martinez Detention Center 100,198 25 15,129 0 0 15,129 50,000 3.3 Sheriff West County Detention 120,766 0 14,180 -112 -87 14,093 26;694 1.9 Sheriff 1960 Muir 20,303 -2 2,891 0 0 6,164 66,022 10.7 Total 1,548,696 82 199,046 193,701 143,065 348,093 1,803,325 5.2 31 AEPC Gree LLC C)tStG! �OhcTR��TtQ'...PJIAE,G�MCNT :.... :...,: .....:.. ,:...... ::..., .,.;.,.V.;.v ::.: ... .:.�: :::. Contra Costa County Strategic Energy Plan ASSESSMENT OF BUILDING LIGHTING SYSTEMS Approximately 98%of County interior fluorescent troffer lighting uses 32 watt, T8 lamp technology,and over 95%of incandescent fixtures("'cans")have been retrofit with compact fluorescent technology. Light switching technology is over 90%manual,with one to four control zones per room,depending on room size. Photocells or time clocks control exterior lighting exclusively. Fieldwork consisted primarily of measuring energy densities resulting from lighting systems in various types of interior';;space classifications,as shown in Exhibit 3.6 below. For example,common areas (hallways,copy rooms,etc.)are typically designed at 1.54 watts/sq ft if all of the light fixtures that support the average common area are operating. When observed, it was noted that some lights were not operating and the resultant average energy density for this type area was 1.20 watts/sq ft. E:rNNt 3.6—Swnmrary fighting Fieldwork Actual Eshmated Area ofarea Density Density(Wsiq Design County daylight Area' Surveyed twistj ft) ft) Density GSF harvesting Common 35°l0 1.54 1 1.20 78141 15410 1 33% Administrative 27% 1.34 1 w03 77% 350% 1 32% Operations 35% 1.44 0.65 45% 40416 20% Enclosed office 3% 1.08 1 0.36 33% 10% 1 24% From this analysis,the following observations form the basis for our lighting recommendations — Common areas tend to have the highest design and operating lighting densities. Lighting these areas typically consumes 1.2 watts/sq ft and the lights run longer hours. — Common and administrative areas tendto have the best daylight harvesting potential and operations and enclosed office space offer less potential. Exhibit 3.4 above provides estimates of daylight harvesting potential by area type. — County staff is generally conscientious about turning off work area lights when an area is vacant: for example,67% of surveyed vacant offices had lights turned off. Additional savings are achievable through the installation of occupancy sensors. — There is virtually no use of task lighting in any administrative or general operations work area. Lighting ,system Recommendations From the analysis presented in Exhibit 3.5, it is concluded that three EOMs for lighting are applicable to facilities on a countywide basis; 1. Reduce the energy density of common area lighting to a uniform level of 0.6 Wauslsqft 2. Install daylighting controls on the interior perimeter. 3. Install 28 watt T8 lamps in place of 32 watt T8 lamps when relamping a facility. _.EPti, crottp,LLC 32 �'e5�� Cpu$'.PU:TIG'i MAIAGE�s E�;% z /i' ' Contra Costa County Strategic Energy Plan Exhibit 3.7 below provides a summary of the costs/savings potential for these recommendations, and each measure is discussed in further detail in the following pages. ExIMblit 3.7—Summary of lghdrtg Conservation C05fs and Savings Electric Annual Annoa! DC-Inand Electric Savings Energy cost Appiicablc Asca 1 County Sq Ft (kW) �i Savings (�.Wh)l Savings Cost Common area ii`hurt o odards 642,68 13 8 1,156,824 $172,367 $479,479 Implement daylight harveiting. 823,695 0 1,030,4 28 $153,534 $5171Qt3 Install 28W T8 lam s 2 818 156 415 1,246,0%3 $160,M $237,351 rotal 4 284 537 415 3.432.344 $485>727 1 2.33 930 Reduce the Energy Density of Common Area Lighting to a Uniform Level of 0.6 wattslsq,ft Common areas within a facility include hallways,copier and break rooms,storage areas,etc. Hallways make up the majority of common areas. Our survey revealed a wide variation in common area lighting levels,and the resultant energy consumption,both within a facility and between facilities. The recommendation to reduce common area lighting energy use by 50%requires a blend of new'equipment, and management effort by facility occupants. For example, in some areas,a new fixture may be required, while in other areas the targeted savings can be achieved by simply using an existing switching circuit. Our target of 0.6 watts/sq ft is based on analysis of similar common areas being operated at full light load vs. a reduction through manual circuit switching or delamping: Exhibit 3,8 provides a summary of potential savings based on an estimated 642,000 sq, ft.of applicable County common area. BrIMbit.3 8—Summary of Cominon Area lighdng gnavy Savings Potential Annual i Electric Current load Targeted Annual Energy Annlr'131 C105 Net County Cornmorl at 1.2 W/sq ft load at 0.6 Operating potentiai Savings at $0.149 /kWh 642,680 771,216 385,608 3,000 1,156,824 1 $972,367 Install Daylighting Controls on Interior Perimeter Space `Daylight harvesting' is the technique of lighting a facility using natural light instead of electric light. The technique is applicable where skylights are present, and along the interior perimeter of facility where windows are present. Daylight harvesting can be achieved in a number of ways,from simply shutting off lights where adequate daylight is present,to installing controls that automatically disn or turn of lights when a sensor detects adequate `ambient' light. It is estimated that 863,695 sq. ft. of County space is amenable to various daylight harvesting techniques and technologies. Exhibit 3.9 below provides a summary of countywide savings potential. 33 ��-�yy AEP Group,_LLC, 7ESGR-N(,3N$TRUCT+Otv A4a:a4GE,1Eu'. xrsaaocwatagaocaa>�.... '_' . ': Contra Costa County Strategic Energy Plan ribit 3.9--Srxmmary oftN!ytfght Harvesting Light;t gEhergy Sovings Prr f a/ Annual common NA NA NA NA NA NA Administrative 1,499,586 477,455 391,955 1800 705,518 $105,122 operations 1,713,812 346,240 180,505 1800 324,910 $4$,412 Enclosedoffice NA NA NA NA NA NA Total 4,284,5311 823.695 372,400 1800 1,030,428 $183,534 Install 28 wart T8 Lamps in Place of 32 watt T8 Lamps when Relamping a.Facility. In recent years,both,Sylvania Lighting and General Electric Lighting have introduced a 28-watt lamp that may be a viable replacement for the 32-watt lamps currently being used by the County. While only offering 4 watts(nominal)in savings per lamp,the net number of lamps being operated by the County makes the savings very attractive. Our recommendation is to use 28-watt lamps as a standard during the normal course of relamping a facility. This generally occurs every 3 years, so a complete conversion of all County facilities could conceivably occur within 3 years of approval of the new lamp technology. It is estimated that 2,818,000 sq. ft.of County space is amenable to this lamp technology. Exhibit 3.10 below provides a summary of countywide savings potential. Exhfbit3.10-Srrmtnary of 28 W TBlamp&&WS%gvirtgrsPobw ral Sq N Comity Sq N"nibel,of watts saved MA'h at 3000 fron's 28W!a np Area lan. Common NA< NA SIA NA' NA'> NA Administrative 24 1,022,131 42,698 149 446,326 $57,503 Operations 22 1,367,572 61,486 215 645,604 $82,806 Enclosed office' 30 428;453 14,492 51 152,163 $19,517 Tectal 24F 2,8118,1561 118,67514,151 1,246,0931 $159,826 BENEFITS AND IMPACTS Exhibit 3.11 depicts the projected annual implementation cost of this Strategy, and the resulting annual avoided energy costs. The bar graph refers to the left abscissa,and is a summary of annual Strategy implementation costs. The line graph refers to the right abscissa, and is an annual projection of the baseline and post-Strategy energy expenditures. The area between the lines reflects the avoided energy costs that can be expected from implementing this Strategy. AEPC Grow LI.C_ 34 !)ESGf =fJN$7fi U,^T',ON VIIN4GEMENT ► Contra Costa County Strategic Energy Plan Exhlbrt 3.11-•Energy 2rrfras&irCWM.tnemwntal1mrdwt"Ont&Redawon in Enevy Bveftditvrrss j 0Energy Expenditure Awided(Available Capital) .,-::�Projected Energy Expenditures after Strategy ORecommended E.L Capital Expenditure $3,000 _ -- $11,000 ,-. $2,500 "! ` $10,0()0 "Business-as-usual"Baseline Energy;Expenditures `s $2,000 L i $9,()00 a c $1,500 $1,000 r Projected Energy Expenditures after SEP Implementation $500 $ `0()E3 ' Uj $_ $6,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Exhibit 3.12provides of the expected energy cost savings and projected installation costs for the ;:mechanical and lighting system conservation measures identified in Strategy 1. Exhibit 3.22-Summary of Energy Cost Savings and Installation Cosies,by Major System Annual Enerpy Cost Implementation Simple Savings Cost Payback=�" Nlechancial Stem $344 821 $� 32r"S Sr2 Li ltlitt g tern 85 727 E1,233,9301 2.5 Total $830,548 $3,037,2561 3.7 Potential InCentives and Sources There are several programs offered by PG&E that provide financial incentives for ECM projects, including: - Standard Performance Contracting(SPC)-This program provides performance based incentives for projects that are larger, and considered custom in that they require skilled design teams to implement. Controls projects and chiller replacements are examples of projects that would qualify for SPC funding. - Express Efficiency-Express efficiency is design for smaller projects,which do not require extensive engineering,and are considered 'off the shelf' type installation. Variable speed drives and many lighting projects are considered good candidates for the Express Efficiency program. Because projects presented in the SEP are diverse and require further analysis and engineering,this report presents a conservative view and does not estimate rebate potential on the recommended energy efficiency projects. E Grow LLC 35 .Gw.:1bn-TRJCTION as ENa(p.EPA��:T ..;h;v. ..; ..... ::.:.. ......... :.:..,,. ....... ....... ..... Contra Costa County Strategic Energy Plan Strategy 2 — Supply-Side Opportunities OVERVIEW As energy markets grow increasingly competitive and complex,tremendous changes will take place that will affect the management and procurement of energy and energy-related assets. This will provide energy users the ability to actively manage energy as a strategic resource by doing the following. — Implement and use comprehensive and integrated control systems. — Monitor energy utilization('including at the building level). — Develop comprehensive energy strategies through the collection and analysis of detailed energy information. — Enact monitoring and verification(M&V)measures to ensure proposed savings and operational goals are met. Each of these capabilities are an integral part of an Energy Management flan that can enable the County to be successful in managing electric loads and utilization,and minimizing future unit energy costs. Strategy Two provides a framework for a potential ongoing Energy Management Plan,revolving around the following key areas: — Cogeneration — Thermal Energy Storage — Demand Response Programs -- Renewable Energy Supply Sources — Purchasing Opportunities Each of these strategy components is discussed below, followed by an analysis of the County's opportunities. Cogeneration systems reduce a facility's total energy cost by producing electricity through the combustion of natural gas in an engine driven generator. Engine jacket heat is recovered to make domestic and space heating hot water as required. The smaller systems that would be applicable for these facilities would not be capable of generating steam efficiently. For these size cogeneration systems, approximately 32%of the natural gas consumed results in the production of electricity and 43%results in the production of hot water. This leads to an overall system efficiency of 75%. Maintenance costs are an important consideration and are included in the payback analysis,as are allowances for equipment failures. Of highest importance in evaluating cogeneration systems is matching the production of heat and electricity with the site needs on a time-of-use basis. During on-peak and mid..-peak hours,the value of displaced electricity can support the operation of the cogeneration system without utilizing heat recovery. However,during off-peak hours,the cogeneration system is unloaded and operated to produce only as much heat as is required by the facility. In general,the highest return on investment occurs when larger machines are installed and these machines operate at high loads with a high percentage of reclaimed heat utilization. -AEPC Group;LLC 36 DES'3N- :ONTPOr7!Ani .VPNAGEb"ENT ' Contra Costa County Strategic Energy Plan Thermal Energy Storage(TES)systems are designed to shift energy usage from expensive, on-peak rates periods to less expensive off-peak rate periods. Cuff--peak rates are usually in effect from 5:00 PM until 6:00 AM during summer months from May through October. With a TES system,existing building chilled water generating systems(chillers)are used to produce ice at night,using relatively cheap power. This ice is then used to cool the building during the day,while the chillers remain idle. Chillers demand high levels of power and the savings provided by running these chillers at night as opposed to running them during the day provides the economic justification for TES systems. `Demand response'refers to an energy management practice that allows facility operators to reduce their energy usage if requested to do so by a utility or other energy agency. The facility operator typically receives a financial reward for this activity,either in the fortn of a more favorable rate structure,or a discrete reward each time they are asked to reduce consumption. Facility operators that participate in demand response programs typically must have enabling technology in place. This technology usually consists of an electric metering and control infrastructure that allows the operator to accurately comply with curtailment requests,and allows the curtailing entity(e.g.,the utility)to verify that energy consumption was indeed reduced, Renewable energy supply systems refer to a broad range of technologies that do not consume fossil fuels in the generation of electricity. These technologiesprimarilyinclude,,but are not limited to,solar (photovoltaic)systems and wind powered generators. Purchasing opportunities refers to the ability of an energy consumer to purchase energy from alternative suppliers at a rate more favorable than they receive from their current supplier. This strategy component is heavily dependant on the regulatory environment and constraints in which the end user operates, and is difficult to evaluate in the current California energy market. The market for electricity is currently in a state of flux and is likely to remain there for the near future. However, natural gas is fully deregulated, and end-users have opportunities with numerous suppliers. FINDINGS AND RECOMMENDATIONS Cogeneration Systems The County has three viable opportunities for installing cogeneration systems: 1. Contra Costa Regional Medical Center—Main Hospital 2. Martinez Detention Center— 1000 Ward Street 3. West County Justice Center The Main Hospital of the Contra Costa Regional Medical Center provides the best opportunity among County facilities. We estimate that,potentially,a 260 kW cogeneration system can be effectively utilized as integration to the existing hot water distribution system is easily accomplished. At the Martinez Detention Center we assumed only 60%of the current hot water load will be available due to a current project to install low-flow showers and time-operated domestic hot water valves. Due to this reduction in potential facility heat load,it is estimated that a 100 kW cogeneration machine can be effectively utilized. This unit will tie into the space heat loop directly and the domestic hot dater circuit through two heat exchangers. This will permit the existing large domestic and laundry storage tanks to be heated to 130°F and used as thermal energy storage systems. - AEPC Groui), 37LLC. oes�cn�, otisrflucron�•:.�r,�acenne�t Contra Costa County Strategic Energy Plan YI�YY�IY�YYYYtlY10•iYS111YYill�ll IYY�YIII�YYYl�IS1111Y�/ISMIY�lllll�lY�Y�IYI I��YY The West County Justice Center is best served by three 50 kW machines. As most of the space heating equipment is met by gas fired heaters(generally located on the roof),three machines are proposed to reduce piping installation costs. Even in this configuration,one of the three units will require piping between several pods.Analysis for this project is included,though the economics are not as attractive as the other three sites. These are preliminary analysis and the actual payback may change significantly based on thermal and electric profiles developed through a more exhaustive analysis. It is imperative that a feasibility level study be conducted at each of these sites prior to implementation of these measures. Exhibit 3.13 provides a summary of the costs and savings potential at each of the cogeneration candidate sites. FX171bit 3.13--Cogenerr7l9►on Projec& Ir kW rating 260 100 so 410 Total Electric Energy Savings (kWh/yr): 2,119,797 498,657 1,051,726 3,670,180 Summer Peak Electric Demand Savings (kW): 1,500 375 goo 2,775 Total Electric Cost Savings($lyr): $250,839 $59,343 $140,328 $450,509 Total Gas Energy Savings (ftrmslyr): 136,702 26,373 59,287 222,362 Total Gas Cost Savings $ $100,448 1 $18,707 $43,348 $162,503 Gross Energy Savings $351,287 $78,050 $183;676 $613,012 Total Cogen Gas Consumption (therms/yr): -267,247 -62,867 -143,161 -473,27+ Total Cogen Gas Consumption Cost($/yr): -$156,284 -$35,163 -$83,200 -$274,647 Total Excess Electric Energy Savings (kWh/yr): 0 0 26,480 26,480 Total Excess Electric Cost Savings($tyr): $0 $0 $0 $0 Standby Char s j$(_ : -$7,956 '$3,060 -$4,590 -$15.606 Gross Energy costs -$172,196 -$41,283 -$92,380 -$305,859 Net energy cost savings($/yr): $179,091 $36,766 $91,296 $307,153 Total Annual Maintenance Costs $ r : -$24,075 -$9;973 -$21,035 -$55,083 Net Annual Energy Savings $955,015 $26,793 $70,262 $252,f170 Project Cost($): $657,003 $186,697 $533,736 $1,377,436 Net Annual Energy Savings $1551 015 $26,793 $70,262 $252,070 Payback 4.2 7.0 7.6 55 1 Glroup, LLC_ 38 _ L)E$IGNI.CONS'RIJCTIOKI .M',NAGEMENT y i r u Contra Costa County Strategic Enemy Plan r Instal an Ice Storage Thermal Energy Storage System This measure considers installing a 1,040-ton-hour ice storage system at the Regional Medical Center in Martinez. Ice was chosen because of space considerations and existing plant configuration. The existing screw chiller can charge this capacity storage type system by from 10:00 PM to 8:00 AM. Thermal Energy Storage(TES)provides energy savings by generating cooling capacity at night(when electricity is less expensive),and using this stored cooling to displace chiller usage during periods(noon to 6 PM) when electricity cost are high.A larger system could be designed that utilizes the weekends to further create cooling,though this alternative provides an increase in controls complexity and installation cost that might not be justified. The system proposed is a partial storage system and will only displace 175 tons of on-peak cooling capacity. Demand Response `Demand response] (DR)refers to an energy management practice that allows facility operators to reduce their energy usage if requested to do so by a utility or other energy agency. The facility operator typically receives a financial reward for this activity, either in the form of a more favorable rate structure,or a discrete reward each time they are asked to reduce consumption_ Facility operators that participate in demand response programs typically must have enabling technology in place. This technology usually consists of an electric metering and control infrastructure that allows the operator to accurately comply with curtailment requests,and allows the curtailing entity(e.g..,the utility)to verify that energy consumption was indeed reduced. Contra Costa County has an excellent opportunity to participate in demand response programs for several reasons: — It has a substantial electric load and presents a valuable market for parties that develop and market DR programs. Programs typically seek entities that can deliver 1 MW of curtailment capacity. The County currently requires 17 MW at summer peak, and so it has the ability to deliver a 1 MW reduction without causing discomfort to facility occupants. Comfort issues can be minimized because a 1 MW load reduction can come from small incremental reductions from numerous facilities,versus large reductions from a small number of facilities, — The County has an excellent facility controls infrastructure that could be leveraged to effectively curtail load at multiple facilities from a single control location. This makes the logistics of complying with a demand response program easy to implement. There are currently two programs available to the County: The Demand Bidding Program (DBP) This is a voluntary,web-based demand and energy, bidding program that offers incentives for reducing energy consumption and demand during specific DBP event periods. The program is available year round to bundled service customers with demands greater than 200 kW and can commit to reduce at least 100 kW per hour during a DBP event period. This program may benefit larger businesses with demand greater than 200 kW who have the flexibility of reducing or eliminating power usage not critical to their main operations or processes. 39 ; AEP Group,LLC ` Contra Costa County Strategic Energy Plan California Power Authority Demand Reserves Partnership(DRP) The California Dower Authority(CPA)administers this program under contract with the California Department of Water Resources(DWR). DRP participants are given a reservation payment in return for a commitment to shed pre-designated amounts of load when called upon. Similar to Investor Owned Utilities(IOU)interruptible programs,there are limits on the frequency and an annual cap on the total number of hours load can be curtailed. Unlike IOU programs, several private contractors conduct settlement and participant recruitment activities. The DRP offers limited risk with relatively high rewards. The program includes the following elements: — A Day Ahead Call Option that pays$46,640 per year per 1 MW of curtailment -- Program value is divided between summer months(June to September)and non-summer months (October to May) — Payment of 8 cents per kilowatt if a curtailment event is called — Curtailment events can occur in 2,4,or 8-hour increments,with a maximum duration of 24 hours per month — Participants can bid for extra curtailment opportunities beyond I MW for additional incentives — Customers are notified by 3 p.m.,the day before a curtailment event via pager,cell phone,e-mail or fax — Contracts can be structured with no out-of-pocket casts — If a customer cannot respond to all curtailment requests or under performs,program penalties are subtracted from the amount paid to customer at the end of the month It is recommended that the County pursue participation in one of the demand response programs as part of the SEP implementation plan. Renewable Energy Supply Sources The County currently operates two photovoltaic electrical generation sites. The first is located at 1000 Ward and the second at 50 Douglas. These sites produce a peak of 228 kW which generates approximately 0.8%of total annual countywide consumption. Exhibit 3.14 summarizes recent output data. The data in Exhibit 3.14 was provided by the manufacturer of the system and reflects the best available infortnation on the systems performance at the time this report was developed. Exhibit 3.17 is not intended to for comparison with performance specifications presented during system design and installation. Exltibit 3.14—Summary ofRecent Photovoltaic System Per-ormance 1000 Ward sit Dou tas Count Total ota to — Total Site Energy Site Peak Energy Site Peak Total Energy Total Power Late&Time jkWhj Power IM kWh Power kiN kWh kW 21112003 12,024 106 8,077 73 20,101 179 31112003 12-11129- 115 14,060 83 26,190 198 41112003 14,737 1 135 i 14,341 90 29,078 225 5/112003 23,064 137 18,603 91 41,667 228 61112003 @6, 61 132 18,795 85 45,756 217 71112003 51 125 18 584 81 46,835 206 166 92,460 209,626 40 Group,LLC Des<ai . otisreu -on . aNaceNcvi ................. ..................... Contra Costa County Strategic Energy Plan ARV A' As with all energy equipment,this report recommends that the photovoltaic systems at 50 Douglas and 1.004 Ward be periodically checked and re-commissioned to maintain optimal operation. The cost of installing solar photovoltaic systems is expected to drop as the technology develops and becomes more widely available, Based on unobstructed and available roof space, and favorable orientation, potential future photovoltaic expansion sites include: — Summit Center on Arnold(place on canopy top and/or install as a new awning) — 595 and 597 Center — Hall St — Pleasant Hill Library — 100 38th Richmond Potential photovoltaic generating sites were assessed based on net roof area available. Expansion of the County's photovoltaic generation capacity at this time is not economically feasible for the following because: — The current cost of electricity generated with the County's photovoltaic systems is$0.188/kWh, higher than the County's current PGE average summer peak rate of$0.149/kWh,based on 50% peak and 50%part peak rates applicable to solar generating schedule. — Our trend indicates that, in the near term,electricity prices may drop as surcharges are removed and PG&E settles on new proposed tariff structures within the State. This further weakens the economic justification for expanding the use of solar generation. Wind energy remains a developing market was not reviewed as part of this report. Purchasing Opportunities Purchasing options for electricity are currently limited by the status of deregulation of electricity markets in California. At the present time,there are no options to the County for acquiring electricity on the wholesale or retail markets beyond those offered by PG&E. The market for'natural gas has been,and will continue to remain deregulated. This offers potential for reducing energy unit costs;however,the net annual consumption of natural gas by the County is small and may not be attractive to natural gas marketers. The County's current association with larger buyer groups,such as ABAG remains the best option to structure favorable commodities contracts. It is important to note that the installation of cogeneration facilities,as noted in Strategy 3, will require significant amounts of natural gas as a primary fuel in generating electricity. This may require the County to revisit its gas purchasing arrangements. Natural gas for cogeneration systems is frequently priced differently than natural gas for heating, and additional savings may be gained by establishing favorable contracts in support of cogeneration. AEP C 41 .......... .......... ............. : Contra Costa County Strategic Energy Plan S T4s. BENEFITS AND IMPACTS Exhibit 3.15 provides a summary of Strategy 2 project implementation costs and resulting avoided annual energy costs. Exhibit 3.15-Fsdmofed Protect Cotes and Energy Cost Savings Regional Medical Center Cost Savings Payback Regional Medical Center 222eneration $ 657,003 $ 156,095 4.2 Regional Medical Center Thermal Energy Storage $ 85,415 $ 14,393 5.9 Main Detention FacilityCogeneration $ 186,697 $ 26,793 7.0 West County Detention Facility Cogeneration $ 533,736 $ 70,262 7.6 Total $ 1,462,851 3 2W,463_[_ 5.5 Potential Incentives and Sources The Self-Generation Incentive Program provides financial incentives to customers who install certain kinds and sizes,up to 1.5 MW, of"clean"on-site distributed generation, These facilities must be certified to operate in parallel with the electrical system grid(not back-up generation)and meet other criteria established by the California Public Utilities Commission. These cogeneration systems qualify as Level 3-N, internal combustion engines operating on non- renewable fuel. This incentive provides$1.00/watt($1,000/kW)up to 30%of net construction costs. Exhibit 3.16 below provides an indication of potential impact to cogeneration projects from these incentives Exhibit 3.16—Cogeneration Projects Including Irimandve Fungals Facility conter Oefestioi; Detention Summary 1: Project Cost($}: $057,003 $186,697 $533,736 $1,377,436 Incentive $1,000/kW to 30%Const.Cost $ $197,114 $80,013 $150,000 $427,127 Adjusted Project Cost $45.9,8189 $106,684 $383,736 $950,310 Pa ck with knent"s 3.0 4.0 5.5; 3,8 Pa ckvAhout btcenMes 4,2 7.0 7.6 5.5 ,'CP 42 -_ Group,LLC DE8-GN. CONSTRUCTION! ,MANAGEMENT ....................................... ..................- ....................................... ............................. . ................. Contra Costa County Strategic Energy Plan Strategy 3 — Organizational Advancement OVERVIEW Organizational advancement involves continuing development of County personnel and systems that are critical in advancing energy efficiency,and in sustaining gains that have been made through past management efforts. The topics presented in this section represent policy recommendations, but do not include a financial analysis beyond identifying value at risk,where applicable. The County also has the ability to reduce costs and improve operations through Organizational Advancement. This Strategy focuses on four Areas: Creating an energy manager position in the General Services Department Cross Training of technical staff and continuing education Implementing a Preventative Maintenance Program to track equipment age and condition Instituting an employee energy training and recognition program FINDINGS AND RECOMMENDATIONS The County has the ability to further reduce costs and improve operations by undertaking organizational initiatives that facilitate the county in achieving its energy goals. This strategy focuses on five tactical areas: Create Energy Allanager Position Several resources exist to help the County achieve its goal of assessing,designing,and implementing energy efficiency strategies. These include: - Statewide programs sponsored by the California Public Utilities Commission and administered by PG&E to fund energy efficiency and distributed generation projects - EPA Energy Star building certification programs - California Power Authority bonding and demand response capacity reserve program - Local programs sponsored by the California Public Utilities Commission for a wide variety of opportunities ranging from Building Operator Certification programs to vending machine efficiency initiatives At present,there is no entity at the County to monitor these programs on an ongoing basis. At risk is that relevant funding and training opportunities may go unnoticed. By creating and filling the position of a County Energy Manager, a means to focus on energy infrastructure issues and maximize available utility, state and federal funding will be achieved. In addition,the County's 2001 Energy Action Plan identified two levels of energy contacts within County facilities: - Site contacts who manage energy consumption and reporting efforts at the individual site - Department contacts who coordinate departmental efforts AEPC Grour).,LLC_ 43 ........................................ ........................... A Fa Contra Costa County Strategic Energy Pian It will be critical to the success of many of the recommended energy conservation measures to promote training and communication. For example,in both the common area lighting and the daylight harvesting efforts described above,it is imperative that employees understand the intent of the energy management strategy,and facilitate its application. The reporting structure identified in the County's 2001 Energy Action Plan,augmented with an Energy Manager to oversee and coordinate both site and department level personnel,will be a valuable resource in these type efforts. Staff Training and Certification The energy systems in over 1.5 million square feet of County facility space are currently managed through digital control systems. This is an increase of over 1 million square feet in the past decade. These control systems are now capable of providing additional energy management functions, such as demand response and load shedding. Maintenance staff training and certification is critical in maintaining and expanding this capability. The SEP'recommends that funds derived from participation in the California Power Authority Demand Reserve Partnership program be used to expand the County's controls interconnection project,and to fund development of the County personnel who support and maintain these building systems. At risk is the potential for decreased effectiveness'of controls systems, diminished capacity when personnel changes occur, and limited ability to use the system to capture additional opportunities,such as demand response. EquipmentAge and Condition Tracking System, At present,the County has no formal lifecycle tracking and budgeting format for energy related building systems. The risk is that opportunities to replace old, inefficient equipment may be missed,and budgeting in a `triage' mode may not allow for adequate lifecycle analysis and appropriate funding for replacement equipment. County Emplo eee Energy Training Recognition Program Employees have contributed to the County's success in reducing energy costs by shutting off lights when not needed. This behavior needs to be rewarded and reinforced or there is a risk that participation in these efforts will decrease over time. At risk in failing to maintain and further develop this capability is that energy use will increase over time. Exhibit 3.17 provides an analysis of estimated savings due to employees turning off lights. Exhibit 3,17—Impact oflndividuai County Employee Illitieffves tri Operate Lights Efflcient/y than WV Cammnn 542;880 9.54 1.20 219 6,1100 1;319,819: $195460 Administrative 1,499,566 9.34 1.03 466 3,000 1 3R7,258 $208,191 Operations 1,713,812 9.44 0.65. 1,349 3,000 4,046605 $602,944 Enclosed office 428 453 1.48 0.36 309 3 000 927,847 $138 249 Total: 4,284,531 2,343 15,00(3 7,683,521 $1,144,845 C Group,LLC 44 Al %? DESIGN SON STAiJ C?:ON M41•iACcIviEM f� Contra Costa County Strategic Energy Plan For example, lighting systems in administrative areas typically have an energy design of 1.34 watts/sq. ft. It was observed that many administrative areas had,some lights turned off. This was not the result of an automatic control system, but rather the initiative of office occupants to turnout lights, If this activity is consistent,the net annual impact is reduction of 1,397,258 kWh annually and a annual cost savings of $208,191. At present, it is not known if the value of this activity is known to County employees,and how this behavior will be encouraged and sustained. Participation in Existing State and Federal Program Numerous State and Federal agencies are available to help the County achieve its goals. These resources include — California Energy Commission — California Power Authority — California Public Utilities Commission — U. S.Department of Energy,Federal Energy Management Program Specifically,the State of California's 2003 Integrated Energy Policy Report,Docket No. 02-IEP-i Draft Final Commission Report, issued in October,2003, provides several more detailed initiatives to support the State's energy needs which directly affect the County: 1. Ramp up public funding for cost-effective energy efficiency programs above current levels to achieve at least an additional 1,700 megawatts of electricity by 2008. 2. Increase funding for natural gas efficiency programs that could achieve a reduction of an additional 100 million therms of natural gas. 3. Deploy advanced metering systems and rate structures to help link retail prices with wholesale costs. 4. Create a transparent electricity distribution system planning process that addresses the benefits of distributed generation, including cogeneration. The Contra Costa County Strategic Energy Flan compliments Initiatives I and 2 by providing a guide for achieving County energy savings of 5.6 million kWh. In addition,this report supports developing a demand response program, which will position the County to use advanced metering and control systems to mitigate the price risk inherent in linking retail and wholesale electricity costs. 45 YPC Group,.LLC_ DESIGN _(JNSTR ICTiDN t N e^A VT ... :• r...waswcroux?x:...ww,c.cecg,.... :... ...... ......... ......... :::: Contra Costa County Strategic Energy Para Strategy 4 - Now Construction OVERVIEW As the demand for public services continue to expand,the County is facing growth requiring facility and capital planning efforts that will accommodate changing demographics. The County population is expected to grow from 1.3 to 1.7%per year,primarily in East County.This population Growth and shifting demographics within the County will drive facility construction overtime. It is important that,as these new and refurbished facilities are planned and built,energy efficiency, sustainability,and minimization of life cycle costs continue to be the primary drivers in the County's planning and decision-making process. The County has established two key components in ensuring energy efficientdesign. The first is the utilization'of life cycle costing in comparing alternatives for construction,and the second is establishment of a design standard based on exceeding Title 24 by 10%. However,the need to design buildings that meet first-cost construction budgets unfortunately often outweighs the objective to design buildings that minimize life cycle costs. With the current budgeting process,the invisible"behind the wall"systems(such as the electrical, mechanical or control systems)are likely targets of cost-cutting decisions. The result is often a building where energy efficiency and maintainability have been sacrificed. Although first-cost savings may be desirable in the immediate term, the negative ramifications of higher life-cycle costs usually substantially exceed the initial cost savings. The facilities organization is then asked to maintain a structure that: — Is not energy efficient — Cannot be economically upgraded — Is difficult to manage and control -- May cost more to operate and maintain than the allocated budget There are two schools of thought related to implementation of comprehensive and highly efficient design standards The-first;which-is-the basis ofthis-assessment-says thatefficiencyincreases-are achievable _ with increased first costs, but with decreased life-cycle costs and positive net present value. The second says that major efficiency increases are achievable at level or reduced first costs. This is through an improved process, including continuous commissioning and the management of soft costs. The first methodology was chosen as a"conservative case"with respect to the incremental first costs required for achieving the desired efficiency. AEP46 311 GrcaI4P,LLC DESfN•.'.Q} STR�JCTiCirr+ '0ANAGE.MEN- Contra Costa County Strategic Energy Plan W01 FINDINGS AND RECOMMENDATIONS There were two data sources used to identify future new construction activity in the County. - Association of Bay Area Governments(ABAG)2002 Contra Costa County Sub-regional Study - The County Quarterly Facilities Projects report,April 2003 The ABAG report provides insight into both the growth of the County population,and where this growth is likely to occur. Key assumptions about this report are that the growth in the number of County employees is tied to the number of County residents,and that the growth in County facilities is correlated to the number of County employees. Experience of County planners supports this assumption. Exhibit 3.18 shows that the average annual growth in County employees is 1.3%through 2005,followed by a period of faster growth of 1.7% in 2006 through 2007. This indicates a similar growth in County facilities. Ex111br`t3.18-Projected Growth of County Employees Num Cram Ennployees; Increase 198# 5,960 1990 1 8 1 1.27°A 2000 8,321 2.39% 2003 8,620 1 1,20%, The ABAG report also indicates that the most of the expected population growth will occur in the East County,as shown in Exhibit 3.19. In terms of energy,East County is considered a Climate Zone 12, which has heating and air conditioning requirements similar to valley location,such as Stockton; West County areas, such as Richmond,have a climate similar to San Francisco. These climate zones have similar heating requirements, but West County hasa,considerably higher air conditioning_demand,_- Exhibit 3..19 County Growth by Geographic Location East County* 25o1fl 28e1� 26°lo Remanider 75% 72% 9% Total 1 13% k Antioch, Pittsburgh,Oakley, Brentwood, Rural East County=Climate zone 12 The County's quarterly Facilities .projects report provides a list of facilities that are in early planning stages. Exhibit 3.20 provides a summary of facilities in early planning,their size,function,cost, and expected energy densities(watts/sq ft,etc.)as defined by California Building Code Title 24 for electricity and statural gas. AEPCGmup,LLC 47 w . oVs:�ra.oor="twcnati n�aaGactnea7 ...5t.. ..::.:a.,roos..aa;.,,rr, ..,, ... ...... ..... . .....:: ..:..: �: 'sContra Costa County Strategic Energy Plan Exhibit 3.20-Facility.rn Early Planning and Projected Energy CoVnsrtmption Annual County GroMh,Renewal,and Inflationary Factom Assumptions: sqft ProjectUtilization operational Prosect Cost Electrical Natural Gas watts tt kWh ft- r Therms Discovery ouse, 10,000 A ce 2004 500, 2,10 7.55 0.23 Clerk/Recorder J Elections Bldg 35,000 Admn/Offlce 2006 $12,250,000 2.10 7.55 0.23 Public Works Admin Expansion 10,000 Admit/Office 2006 $3,500,000 2.10 7.55 0.23 Brentwood Health Clinic Replacement 6,004 Admin/Off oe 2009 $4,000,000 2:10 7.55 0.23 Richmond Heafth center Renovation 18000 Admin Office 2010 116,S00,000 2.10 7.55 0.23 Total , Load creep,- Electric Demand: 0,50% NG/Fuel.0.20% Electrical use:'O.55% NotCree : L40% Exhibit 3.21 projects the expected County energy demands for the planned buildings presented in Exhibit 3.21. Electrical demand for the new facilities will result in a net County increase of.98%per year,while electric usage(kWh/yr)is expected to rise at an average rate of 1.08%per year. Natural gas consumption will increase at an average rate of.93%per year if all new construction occurs,and if this construction is built only to minimum efficiency standards,as defined by the State. Exhibit 3.2.1—Facility and Energy Consrrnrption frOWM Projections Natural Gas Projects Peak(kW) kVVhI Yr Thenns/Yr Discovery ouse 2'1 75,528 n, 00 Clerk J Recorder i Elections Bldg 74 264,348 8,050 Public Warks Admin Expansion 21 75,528 2,300 Brentwood Health Clinic Replacement 13 45;317 1,380 Richmond Health Center Renovation 38 135,950 4,140 Total New Energy Use 166 596,671 18,170 verage Annual impact 83 298,336 9,085.00 New Construction(%of Base Casey 0.48% 0.53% 0.73% Annual Load Creep -__, __:._.--- _ 0.50% _. 0.55% __ _ 0.20% -_ Total Ten Year Projected Impact 1,774 4,284,598 61,104 Total Pro ected Average Annual Growth 0.98% 1.0810/0 0.93070 From a fiscal standpoint,a planning process driven primarily by first cost budget constraints often results in buildings with higher life-cycle costs. To optimally manage the rising operating costs and deferred maintenance, Contra Costa County must carefully consider policy initiatives that encourage, if not mandate,and even reward, highly efficient buildings.Strategy Cane-New Construction looks at four key elements that, in concert,will minimize life cycle costs,mitigate future deferred maintenance, and develop sustainable facilities; 1. Adoption of High-Efficiency Design Standards—At present,County's design standards revolve around exceeding California`s Title 24 standards by 10%. This Strategy looks at the benefits of setting standards that result in highly efficient buildings,and although such standards may raise a building's budget requirement,the incremental costs are well justified on a life-cycle cost basis. AEPC Group LLC. ¢8 _ CcS GN- CONSTR.i CTIOai �1ANAG-Mc"HJT _. ....... .......... ._..............._...._. .......... _..... _...... __.. ......... _..... .._........_.... _..._.. ........._ ......._._... .._. _..... bi° Contra Costa County Strategic Energy Plan 2. Requirement of a Continuous Commissioning Process--Adopting an aggressive, continuous commissioning process can be one of the biggest contributors to the success of the planning, design, implementationand maintenance of any construction project. To;promote the success'of high efficiency systems and buildings,commissioning must be part of the entire process to ensure the expected benefits are achieved. The cost of commissioning a building is typically expressed as a percentage of total construction cost. Depending on the rigor of the commissioning desired,these costs usually range from I%to 2.5%0. Savings achieved through commissioning new buildings prior to their construction are problematic to quantify,as there is no baseline energy consumption. 3. Adoption of Energy Efficient Equipment Purchasing Policies—Equipment purchasing policies that require procurement of cost-effective,efficient equipment will contribute to minimizing the life cycle cost of the County' infrastructure. For new construction,this primarily applies to what the County would consider permanent and attached equipment. Programs(such as the Energy Star Program)set standards for the energy efficiency of specific equipment(such as lighting,cooling and heating equipment, etc.). Policies that mandate the purchase of these higher efficiency products would help mitigate future load growth, save on energy expenditures, and reduce the life cycle costs of County infrastructure. 4. A Strategy for the Implementation of New Technologies—New technologies are becoming commercialized on a regular basis. It is important that the County continually evaluate technologies as they reach market,and incorporate the technologies that are cost effective,or result in a better environment'for the;facility,or both. New technologies identified as beneficial should be incorporated into County design standards and equipment purchasing policies,and should be considered as retrofit possibilities for the existing infrastructure(Strategy Three). BENEFITS AND IMPACTS The impact of facilities in early planning is used to project impacts in years 2004 through 2008. An annual facility growth rate of 1.,8°10 of current building stock was used to project facility growth in years 2009 through 2013. This growth rate correlates with the ABAG projection of a 1.8%annual growth rate in County residents,and a corresponding increase in the number of County employees. The 2009 forward figures also.include-new.leasing activity-Annual.-Strategy implementation costs and-resulting avoided annual energy costs are presented in Exhibit 3.22 Exhibit 3.22-Capita/Summary and Energy Cost Impacts STRATECW FOURTICN Pmiecte! Recommended Energy racreese in rotat sudoeted 1nfts&ucture Awding Above Avoided Slmrpfe C&Pft7 Cast to Saw to Current county finetpy Payback YEAR Cast Code Standard Expenditures Period NPV 2004 $ 3,500,000 $ 525,000 $ 38,492 $ 2,542 7.00 $ 9,967 2005 $ $ $ - $ ` 2006 $ 22,000,000 $ 1.,800_,000 $ 83,210 $ 32,887 7.00 $ 39,545 2007 $ - $ - $ $ - $ - 2008 $ - $ - $ - $ - $ Total 2009-2013* $ 51,656,667 $ 7,750,000 $ 405,803 $ 58,125 7,00 $ 336,735 *Assumes an annual facilities growth rate of 1.8%from.2009-2013 49 AEP GrCJ�L LLC t_ D EC.3N+CDN5TRJCT'ON ,MANA-SMENT - ,�i'`. Contra Costa County Strategic Energy Plan SECTION 4 Economic Summary OVERVIEW The County presently spends approximately$9.5 million annually on energy. Although the County manages their facilities well, changes in the energy markets will cause continuing volatility, and price risks can be significant. While the research behind this report indicates that electricity prices may decline in the near term as surcharges are eliminated, it is an industry consensus that natural gas prices will increase. Because natural gas is a key fuel in the generation of electricity,these price increases will,at some point, be passed onto consumers. The SEP process has identified significant treasures to reduce energy consumption,and in so doing save money and reduce the risk of price volatility by reducing net consumption. These savings should be reinvested in critical facility initiatives,such as reducing the maintenance backlog,improving control of energy usage,and ensuring a comfortable work setting for County employees. The SEP Strategies discussed in Section Three-Strategies represent an opportunity for the County to achieve as much as 6%avoided energy costs(cumulative), relative to the forecasted baseline energy expenditures,by the year 2013. This scenario assumes that all SEP recommendations are implemented at an approximate expenditure of$5.0 million in capital costs. It also provides the County with an overall net present value(NPV)of$6.9 million from the pro forma cash flow(based on a 20-year amortization of costs). The evaluation of the County revealed several opportunities,which if implemented,could substantially decrease energy consumption, and improve operating efficiencies. Based on current and projected activities in the electrical energy market, it would not be practical for the County to expect a saving in the unit cost of electricity,though opportunities exist in the natural gas market. The County will likely see increased volatility in energy prices in the coming years,and exposure to volatility in natural gas prices will become a critical issue as the County increases its natural gas fired electricity generating capacity. The remainder of this section will explain the SEP pro forma and financial analysis performed to arrive at the economic benefits outlined above. ECONOMIC PRO FORMA A 20-year projected cash flow analysis was performed to evaluate the potential fiscal impact from the implementation'ofthe SEP Strategies. A"section-by-section"explanation follows to provide clarification: 1. Baseline Energy Demand and Supply: The baseline energy data established in Section 2 was used and 20-year growth projections applied to the baseline values. The methodology was developed with County input to ensure that the baseline accurately reflects normal annual utilization at the County. AEPC50 - _ Group,LLC _ DESIGN• -C%STRUCTiON •MA�vAGEMENT Contra Costa County Strategic Energy Plan Once the baseline was established for annual kW demand,kWh use and MMBtu use(natural gas), a predetermined year-by-year growth factor was applied. The growth for the next five years was determined based on specific County growth or reductions resulting from new construction or other predicted changes, including personnel increases. Beyond five years,an average growth rate was used based on the next five years growth and was adjusted to meet specific County conditions. The result of this analysis is the 20-year baseline projections for electricity and gas use and electric demand. 2. Baseline Energy Unit Costs: The average annual unit energy costs are projected for each year of the 20-year pro forma model. The unit cost projection is based on the following factors: inflation, energy industry cost impacts,or any other unit cost fluctuations that may occur in the market. At this time,electricity unit cost changes are projected to decline over the next 5'to 10 years. This projection needs to be constantly re-evaluated as the California energy market continues to evolve. The baseline energy unit costs and percent changes over time used in this report are representative of the County's situation at present,and will certainly change over time. 3. Projected Baseline Energy Expenditures:The projected baseline energy expenditures are derived from the baseline energy demand, supply,and baseline energy costs(discussed in the two preceding sections). The 20-year energy use and demand projections are multiplied by the projected unit costs to establish the 20-year baseline energy expenditures. 4. Projected Strategy Impacts: In Section Three- Strategies of this report, specific energy and cost implications for each of the three Strategy areas,Energy Efficiency Projects, Supply Options,and New Construction were presented. In the pro forma,the projected changes in energy utilization, as a result of implementing each of these Strategies,are reflected as a percentage of the baseline utilization. The impacts of Strategy 4, Organizational Advancement,are not considered as these recommendations are considered policy recommendations and present difficulty in quantifying. 5. Potential Strategy Two Unit Cost Impacts:The potential benefits of the electricity and natural _ outlined in Strategy Two, SupplyOptions are resented as a percentagepurchasinginitiatives impact per year, and projects new 20 year energy unit costs. These new unit cost projections are used to calculate final expected energy expenditure for the County, if the SEP Strategies are all fully implemented. 6. Strategic Energy Plan Impact Summary: This section summarizes the impact on energy use, demand, unit cost, and total expenditure,as a result of implementing each of the three SEP Strategies noted in item 4 above. 7. SEP Cash Flow Summary: The cash flow summary captures the economic benefit found between the projected baseline energy expenditures and the projected energy expenditure after implementation of SEP Strategies 1, 2,and 4. The cost of implementation is then amortized over twenty years at an assumed tax-exempt rate. Annual cash flows and projected financial indicators are also calculated. AEPC Group:LLC ,. jlGl- QNSTR JCTi�h Nuri�iyGF,cIVT Contra Costa County Strategic Energy Plan R % ... FINANCIAL SUMMARY Exhibit 4.1 presents a financial summary based on the methodology and pro forma described above. This summary shows significant opportunity at the County to reduce operating expenses while providing for significant investments in facility renewal. Exhibit 4.,1r—SEP F/nanrrlal Sumsnary Financial Summary PROJECT IRR-20 yr 10.53% NPV CASH FLOW 20 Years NPV 20 yr Q 8% $ 1,677,999 PV of Protected Savings(20 Yr(2 6%) $ 6,795,660 PV of Net Gash ftw(20 Yr Q 6%) $ 2,744,673 CAPITALIZATION($t Year) $ (401,904) Term(years) 20 Rate 5.00% Notes: I. Project Internal Rate of Return(IRR):The IRR is calculated using a 20-year savings cash flow beginning in 2004—resulting in a total investment of$5.00 million and a 5%discount rate. The IRR is based on a lump sum,front-end investment and a 20-year savings cash flow. 2. NPV of 20 Year Cash Flow: The net present value is calculated using the 20-year savings cash flow beginning in 2044. The NPV is based on a lump sure front-end investment and a 20-year savings cash flow. This is a pro forma cash flow NPV. This differs from the NPV numbers in Section 3 (included in Project Summary above);which are a simple NPV calculation based on projected annual savings of each project(over 20 years)less the project capital cost, amortized over 20 years. 3. PV of Projected Saving: The present value(PV)is calculated using the 20 year savings cash flow beginning in 2001. This is the present value of the savings stream only,with no consideration for capital costs. 4. PV of Net Cash Flow: The PV is calculated using the 20-year savings cash flow beginning in 2004. 5. Capitalization: This is the annual capital cost based on a 20-year amortization. The Project Summary presented in Exhibit 4.2 summarizes the year-by-year strategy impacts illustrated to Section 3. This summary illustrates a potential positive cash flow every year and a total NPV of$6.87 million over twenty years Exhibit 4.2 20 year NPV by Strafegy Strategy one $ 3,037,256 $ 630,548 $ 5,395,494 Strategy Two $ 1,462,851 $ 266,463 $ 1,293,969 Strategy Three $ $ - $ . Strategy Four $ $08,504 $ 72,643 $ 186,247 Totals $ 5,008,611 $ 1,169,654 $ 6,875,723 *Based on 10 Year Amortized cast and Estimated Savings AEPGroup,LLG 52 ' D DcS.;GN-':ONSTRUCT'ON -!,AANAGZM=N1 ...............................................................................................................11111...... ............................................................................................................... Contra Costa County Strategic Energy Plan J ltf­—, SECTION 5 Summary and Recommendations In 2002 Contra Costa County spent nearly$10 million on energy to provide light,heating, and cooling for nearly 495 facilities. This figure represents a sizable increases in the cost of electricity from fiscal year 2000 levels,and increased price volatility in the cost of natural gas. This expenditure would likely have been significantly higher had the County not aggressively pursued energy efficiency practices in recent years. A review of records from 1999 through 2002 indicates that savings of 11,673,000 kilo-watt hours (kWh)of electricity were achieved through conservation efforts,representing over$1.7 million in avoided energy costs at current prices. This report recommends the continued efforts by the County to reduce the cost of energy by reducing consumption. The recommendations of this report,summarized in Exhibit S.I below,represent a broad range of opportunities for the County to continue a history of careful planning and implementation of thoughtful energy management policies. ExhINt 5-.1 -Sul"MrY Of En&rgY and COSt Savings for Str"egies 1,2,and 4 Aioo1dedfher#y Fln&nCf&l Qns Newmmended Fleefric Hed7fc so slhwle, ZhcrameaW Demand OMMion UffflZatlon Avoided Payback plaftnedE.Z. E.I. (kW) OWN (Thenw) Enovy cost Period ravesh"ent fil InVerb"ent NPV 000W Energy Efficiency Projects $ $ 3,037,256 496 4,982,040 193,701 $830,54f $5,395,494 3.1 Suppty Side Opportunities $ $ 1,462,851 - - (250,913) $266,46:, $1,293,981 5. New Construction ' $ 10,075,000 $ 508,504 116 479,699 12,650 $72,641.1 $186,2471 7.1 I.— TOTAL $ 10,075,000 $ 5,008,811 612 5,461,739 (44,582) $ 1,169,654 $6,875,723 4.3 (1)Mass numbers are InchmAre of machankal and Weecdcal anoMy Infreafructure only .-STRATEGY--O-N-E.—I-ENERGY-EFFICIEN-CY PROJECTS---. While the County has exhibited a'continuous improvement' mindset with regards to pursuing energy efficiency over the past decade,significant potential remains to reduce energy costs of its heating, ventilating and air conditioning(HVAC}equipment and lighting systems as summarized in Exhibit 5.2. HVAC Systems and Control Systems Building HVAC and control systems offer distinct opportunities for reducing energy consumption and cost. These opportunities generally fall in several categories,including: — Expanded implementation of variable speed drives on air handling and pumping systems — Modification or replacement of inefficient existing equipment and/or systems — Expanded use of Alerton Direct Digital Control{DDC)and maximizing benefit of existing controls Approximately 75%of net energy reduction potential exists at facilities that operate continuously,such as the Contra Costa Regional Medical Center(CCRMC)and Martinez Detention Facility. Implementing these HVAC projects will require a phased approach, including 53 -AEPC Group; LLC DESIGN- MNSTRUCTIO+, =VANAGEMENT .................I.......... ......... ''I'll-,................... .............. ................................... ................................................................................................ ......................................................................... Contra Costa County Strategic Energy Plan r Investment grade audits on select projects Identify all funding and rebate opportunities Selection of design and implementation resources and schedules Lighting Systems Building lighting systems offer a significant potential for saving energy. Advanced lighting measures recommended in this plan include: — Develop and implement a plan to attain 0.6 watts/sq ft lighting energy density in common areas at all County facilities — Develop and implement an aggressive daylight harvesting program — Replace 32W T8 lamps with 28W T8 lamps during the course of normal group relamping activity — Develop a consistent design template to implement these technologies Implementing these lighting projects will require a phased approach, including — Identify 'best-in-class' lamps,ballasts and control technologies — Implement test sites to verify technology selections — Develop a design template to provide standard guidelines for each building and technology — Identify all funding and rebate opportunities — Develop an implementation schedule based on self funding projects and projects that occur as normal maintenance activity Exhibit 5.2-Sumnwfy of Energy ConservatfOn Measures ----------------------------- A Total P ca l' rota� "I otal Ga Total Electric Eloctnc Elect;-' Encl-gy To t a I Ga TQchnofogy Energy Demand Cost sav;ngs Cost Energy Cos,:: Energy Conservatiol,, Savings Savings Savings J(ffir�rw-,'yl savif;j�--' savmjs ooa�proifx4 Payback 1 Technology Group (kwhlyr) (kW) 11 ($'Yr) iY 0 ($?Yr) Cost($1 Air Handier ECMs 841,353 8 $ 95,942 187,541 $134,446 $ 230,387 $1,153,676 5.0 Chiller Plant and Pumping ECMs 344,499 66 $ 48,690 0 $ - $ 54,673 $ 217,383 4.0 Boiler Plant ECMs 21,349 0 $ 2,863 0 $ - $ 2,863 $ 24,943 8.7 Control ECMs 341,4951 8 $ 51,551 6,1601 $ 5,346 $ 56,898 $ 407,324 7.2 Common area lighting standards 1,156,824 0 $172,367 0 $ - $ 172,367 $ 479,479 2.8 Implement daylight harvesting 1,030,428 0 $153,534 0 $ - $ 153,534 $ 517,100 3.4 lInstatl 28W T8 lamps 1,246,093 4151, $159,826 0 $ - $ 159,826 $ 237,351 1.5 1 a 497 684,7731 193,701 13% 921 830,5481 3.937.256! 171 Total 4,982,04 54 AEOC Grout), LLc DES'GN ')N5-RJCT1C11, 1,11ANA3'CNIENT .. ....... ........................... .............. .. ::x ........................ a e law �3. Contra Costa County Strategic Energy Plan STRATEGY Two -- SUPPLY SIDE OPPORTUNITIES Electricity supply side opportunities are currentlylimited'to either purchasing electricity from PG&E or generating electricityon-site.The County's ability to purchase electricity from alternative suppliers remains in doubt for the near term. Because of limited purchasing opportunities,the SEP advocates'a focus on developing County-managed power generating options(such as cogeneration)and implementing lead management strategies(such as thermal energy storage and participation;.in demand response' programs).For example,cogeneration systems at 1000 Ward,the CCR:MC,and the West County Detention Facility,provide goad economic potential,as summarized in Exhibit 5.3. garhibk 5.3-Summary ofCogeneratton Investments and Savings Potential Project Cost($) $657,003 $186,697 $533,736 $1,377,436 Incentive($1,000/kW to 30%Const.Cast)($} $197,114 $80,013 $150,000 $427,127 Adjusted Project Cost $459,888 $106,684 $383,736 $958,310 Not Annual Energy Cost Savings $155,015 $26,793 $70,262 $252,070 Payback h incenti es(at Yeats) 3.0' 4.0 5.5 3.8 ft)back Mhout kwen#hoss(n Years) 4.2 7,0 7.6 5.5 In addition to cogeneration projects,the County can reduce utility costs through other supply side measures such as implementing a Demand Response Program. It is the conclusion of this report that the County has the technology and personnel infrastructure to benefit from participating in the demand response programs available from either the State of California or PG&E. STRATEGY THREE �ORGANIZAT ONAL AI VANCIrIuIENT The County has the ability to further reduce costs and improve operations by undertaking organizational initiatives that facilitate the county in achieving its energy goals. This strategy focuses on five tactical areas: Create Energy Manager Position At present,there is no entity at the County to monitor these programs on an ongoing basis. At risk is that relevant funding and training opportunities may go unnoticed.By creating and filling the position of a County Energy Manager,a means to focus on energy infrastructure issues and maximize available utility, state and federal funding will be achieved. Scarff Training and Certification The energy systems in over 1.5 million square feet of County facility space are currently managed through digital control systems. This is an increase of over I million square feet in the past decade. Maintenance staff training and certification is critical in maintaining and expanding this capability. _AEPC Grout),LLC Ct"�'GN• CC%!Tr,J,.T 01V ANA 3 F NI"tiT f-yp,47.rj�f.,4 Contra Costa County Strategic Energy Plan r Equipment Age and Condition Tracking System At present,the County has no formal lifecycle tracking and budgeting format for energy related building systems. The risk is that opportunities to replace old,inefficient equipment may be missed,and budgeting in a `triage' mode may not allow for adequate lifecycle analysis and appropriate funding for replacement equipment. County Employee Energy Training Recognition Program Employees have contributed to the County's success in reducing energy costs by shutting off lights when not needed. This behavior has resulted in a reduction of over 1,397,258 kWh annually and a annual cost savings of$208,191. Maintaining this positive employee attitude and involvement is critical in sustaining these savings over time,and there should be continual recognition of employee efforts and training to further support and enhance these efforts. Participation in Existing State and Federal Program Numerous State and Federal agencies are mailable to help the County achieve its goals. STRATEGY FOUR NEW CONSTRUCTION AND FACILITY RENEWAL New construction and facility renewal projects in County facilities offer limited energy savings potential due to budget constraints and a limited number of new construction projects. Continuing emphasis on high-efficiency design standards holds the potential to save an estimated $72,600 annually in energy cost, if energy efficiency in new buildings can exceed code(Title 24)by 20%. 56 AEP Grom),LLC DFt. CON TR:!:TIO!, N'. EVENT .:..::::.......................�......:. .. ...... ............. ...;,;. :.::: Contra Costa County Strategic Energy Plan APPEN" DICES. APPEI�Mlx V County data A. Energy Efficiency Project descriptions B., Facility Rerewal>Projectsl. APpENDIX-1 C�th�r lnf�rmatic�n A. 'the California Energy.Actiin Plan nrr Grrrwiri ilrrrr�-����Yr - i�r��.: AEG quLLC 57 January 22,2004 DESIGN-CONSTRUCTION'•MANAGEMENT .......... ..................... ............ ........ .......1­1111.1111111.........I.......I.............. ................... 6Z, Contra Costa County Strategic Energy Plan APPENDIX I A. Energy,Efficiency Project Descriptions 1. Heating, Ventilating, and Air Conditioning (HVAC) Systems .Qeneraf comments on County MechanjgAl systam The County should be commended on it energy efficiency posture. Examples of Contra Costa County's initiatives include- 1. Selecting a primary manufacturer(Alerton)of computerized control systems and promoting its use throughout the County. Standardizing on a single vendor is in the County's best interest from an in- house maintenance and support perspective. This is evident in the non-Alerton EMCS systems found in a few locations of the County, where facility on-site operators have little access to, and inadequate knowledge of, the details of the control system. 2. The County has dedicated the necessary resources to achieve and maintain energy savings by having a dedicated control systems specialist on staff to facilitate the installation, operation and training of computerized control systems on County sites. This position, and particularly the dedication of the person selected for this position, has a significant impact on the energy consumption and the maintenance of the achieved energy saving that has and will continue to be achieved from the installation of these computerized control systems. 3. Spending the additional funds to install these computerized controls down to the zone level is a worthwhile investment. At the reduced cost of today's technology,applying DDC to the zone level terminals does not add a significant expense, especially given the reward. All too often DDC zone controls are sacrificed to maintain budget, while in reality, a very small cost reduction is achieved while significant energy savings potential is lost. DDC zone controls allows for more advanced control functions to save energy not otherwise available with conventional controls, allow for more precise space temperature control to further save energy and provide a tamper-proof, reliable method of maintaining mandated space temperatures. In addition, DDC controls, particularly applied to the zone level, provide documentation on a system's operations and add significantly to preventative maintenance and reactive maintenance efforts. These benefits, perhaps difficult to quantify,are often more significant than expected. 4. The district has mandated space temperature of 76 °F for comfort cooling and 67 OF for comfort heating. This provides significant energy saving where enforceable. Moreover, only where DDC controls are installed are these temperatures reliably maintained.All other technologies are under the control of the Occupants and space temperatures aireusually, though not a-Ways, changed -soon after being set by facility HVAC engineers. The district mandate of the S ace temperature set points also helps the enforcement of these limits. Exceptions to the 76 0 op. F 167 F space temperature mandate are medical spaces, laboratory spaces and inmate sleeping spaces. In addition, we believe it is important for the County Administration to recognize the level of commitment that the HVAC maintenance engineers demonstrate in achieving energy savings. The maintenance staff has embraced the Alerton computerized control system, achieving a good working knowledge of these systems, and training. We witnessed County personnel use the Alerton systems to troubleshoot problems as well as for a preventative maintenance tool. A high degree of capability across the entire HVAC building engineering staff has been achieved with regard to the Alerton Control system. Understandably, the same cannot be said of the staff's capability with the other computerized control systems. These other systems where not provided with on site graphical user Interfaces, are typically not installed to control zone level devices and are not as well supported by the installing vendors. This situation further makes a case for insisting on the continuance of the installation of the proprietary Alerton system throughout all new and retrofit control system installations. Exhibits Al, A2, and A3 provides a summary of Energy Conservation Measures (ECMs) identified during SEP fieldwork AEPCC.rmq),LLG M C'N vANA,AV7\- Appendix I ........................................I........ ........... Exhibit A? -Summary of Mechanical System Energy Conservation Measures (ECMs) AHU-1-6.rl0 CW Glg.Coil. CCCRMC Reset 388,491 $ 39,017 144,3 $106,047 $ 146,064 $ 760,500 5.2 20.0 CCCRMC AHU-6 CVRH Cig.Cao Reset 56,571 $ 5,681 20,988 $ 15,422 $ 21,103 $ 115,885 5.5 20.0 CCCRMC AHU-6 Run Around Coil 27,417 9 $ 5,047 1,332 $ 979 $ 6,026 $ 22,462 3.7 20.0 CCCRMC Fixing Chemical Treatment 40,363 8 $ 4,331 $ 4,331 $ 6,383 1.5 20.0 System Reduces Pump Operation CCCRMC IEC-AHU 3 $ 2.711 $ 27,579 10.2 25.0 install VFDs of Towers and CCCRMC optimize CoolhNTower Satpomts 37,912 10 $ 5,314 $ 5,314 $ 9,141 1.7 15.0 Optimize Cooling Tower CCCRMC O ration 42332 $ 4,234 $ 4.234 $ 1,388 0.3 20.0 Frxn Condenser Water Pump CCCRMC impellers 32,863 16 $ 5,022 $ 5,022 $ 13,810 2.7 10.0 CCRMC-Laboratory AHU-1.3 CVRH Cooling Cos 61,010 $ 6,108 21,862 $ 16,064 $ 22,171 $ 100,220 4.5 15.0 Reset Juvenile Half install Dedicated Domestic H.W. 21,349 $ 2,863 $ 2.863 $ 24,943 8.7 15.0 Heater at Chris Adams Center 202 Glacier Install Alehon DOC connote 166,579 $23,318 2,620 $ 2,208 $ 25,526 $ 131,920 5.2 15.0 202 Glacier VFDs on AHU Fans 54,482 $ 5,965 $ 5,965 $ 9,141 1.5 15.0 install,Barometric Relief Dampers Los Medanos Health Center on Suill-up AHU to reduce 9,333 1 $ 1,797 19 $ 15 $ 1,813 $ 5,360 3.0 20.0 minimum OA install VFDs of Towers and Los Medanos Health Center ptimizeCoolingTowerSetpoints 22,364 1 $ 3,516 $ 3,516 $ 15,479 44 15.0 Remove Inlet Vanes and matall Los Madanos Health Center FO an AH1 21,473 $ 2,998 -956 $ (78$) $ 2,210 $ 18,000 8.1 15.0 Martinez Detention Center trmtall Variable Flow Pumping 29,347 2 $ 3,602 $ 3,602 $ 20,000 5.8 20.0 Martinez Detention Center install VFD Chieer 70,851 23 $ 11,527 $ 11,527 $ 30,000 2.6 15.0 Orin AtanYouth Recovery install Now DOC controls to 42,063 $ 6,786 $ 6,786 $ '46,240 6.8 30.0 existing Alarton Wast County Detention VFDs on AHU Fans 48,530 $ 5,546 $ 5,546 $ 9.930 1.81 15.0 omen CV RTU 4.1 to VAV with West County Detention FD 72,236 $ 8,634 -112 $ (87) $ 8,547 $ 16,760 2.0 15.0 VFD of Economizer Power 8,771. -1 $ 1,232 $ 1,231 $ 3,070 2.5 15.0 50 Douglas Exhaust VFD of Economizer Power 10 Douglas Exhaust 8.892 1 $ 1 595 $ 1,595 $ 3,469 2.2 15.0 151 Linus Pauli VFDs on AHU Fans 40,447 $ 5,689 $ 5;689 $ 45,700 8.0 15.0 1960 Muir install Variable Flaw Pumping 20,303 -2 $ 2,891 $ 2,891 $ 27,743 9-61 20.0 1960 Muir IEC-AHU-3,6 $ 3,272 $ 38.279 117 25.0 2366 Stanwell Install Marlon DDC mntrols 27,130 $ 4,494 910 $ 790 $ 5,284 $ 64,600 12.2 15.0 2425 Bisso Install Alarton DOC centras 31,643 $ 5,332 699 $ 702 $ 6,034 $ 83,504 13.8 15.0 Replace Multizone,BTUs with 49.852 8 $ 8.182 1,425 $ 1.175 $ 9,356 $ 45.700 4.9 15.0 2425 Bisso VAV AHUs 47 rbird install Aterton DDC controls 24,228 $ 3,440 506 $ 471 $ 3,911 $ 35,360 9.015.0 255 Glacier 255 Glacier-VFDs on AHU Fans 14,008 $ 1,458 1 85 $ 66 $ 1,524 $ 9,141 6.0 15.0 install VFD of Tower and 11,007 $ 1,853 $ 1,853 $ 9,661 5.2 15.0 45 Delta Fair Optimize Coding Tower Setpoints VFD of Economizer Power 8,771 -1 $. 1,231 $ 1.231 $ 3,070 2.5 15.0 5 aunt VFD of Economizer Power 8,892 -1 <$ 1,595 $ 1,595 $ 3,469 2.2 15.0 7Exhaust' 651 Pine install VFD on Cooling Tower 26.798 9 $ 4,929 $ 4,929 $ 9.660 2.0 15.0 800 Ferry 800 Ferry-VFDs on AHU Fans 16,023 $ 2,350 $ 2,350 $ 27,500 11.7 15.0 847 B Brookside TOO a„Pump 10,360 $ 1,470 $ 1,470 $ 8,260 5.6 15.0 Total 1,548,696 82 $199,046 193,701 $143,065 $ 348,093 $1,803,326 5.2 15.9 r,� �:N Appendix I 1 Exhibit A2- HVAC ECUs by Facilities.Audited A riculturat 2366 StanM11 27 130 4,494 910 790 $ 5,284 64,600 11 Commun Services 47 10 36 $ 1,470 1,470 $ 8,260 EHSD t 1 in P l 40 447 $ 5 689 5889 $45,700 t EHSD l 11,007 $ 1,853 $ 1,853 $ 9,881 General Services 24,228 $ 3,440 506 $ 471 $ 3,911 $35;380 <. Health CCRMC 686,963 42 74,755 188,505 138,512 215,977 1057,367 < Health Los Medanos Health Dntr 53,170 2 8,312 -937 -773 7,535 38,838 Health $95 Center 8,771 -1 ;$ 1,231 $ 1,231 $ 3,070 Health 597 Centat 8,892 -1 1 1,595 $ i 595 3l469 Mixed 50 Doualas8,771 -1 1.232 $ 1,231 3,070 Mixed 10 DOUQlas8,892 -1 § 1,595 $ 1.5961 3,469 Mixed 242§Bissc 81 495 8 13 513 2,124 1877 1-5,39-1 129,204 i Mixed 651 Pine 26,798 9 $ 4,929 $ 4,929 $ 9,880 Probation 202 Glacier 221,061 0 29,283 2,620 2,208 31,491 141,061 < Probation Orin AlanYouth Recawy Fac. 42,063 $ 6,786 $ 6,788 $46,240 4 Public Defender 16,023 $ 2,350 $ 2,350 $27,500 1' Public Works 255 Glacier 10,008 $ 1,458 85 $ 66 $ 1,524 $ 9,141 t Sheriff Juvenile Hall 21,349 $ 2,863 2,863 <$2,C943 t Sheriff Martinez Detention Center 100198: 25 15,129 0 0 15 129 50,000 Sheriff West County Retention 120,766 0 14,180 -112 -87 14 093 26,690 Sheriff I QWr 20,303 -2 2,891 0 0 6.164 66,022 V Total 1,848,696 82 199,046 193,7011 143,06 348,09311,803,326 ! Exhibit A3- HVAC ECMs by Department Total Pe a k Total Total Gas Total Electric Electric Electric Energy Total Gas Electric Energy Dernand cost Savinqs Cost and Gas • Savings Savings Savings (thery'nsly, Savings savings Agricultural 27,130 4,494 910 $ 790 $> 5,284 $64,600 Community Services 10,360 > $ 1,470 $ 1,470 $ 8,260 EHSD 51,454 0 7,542 0 0 7,542 55,361 General Services 24,228 $ 3,440 506 $ 471 $ 3,911 $35,360 Health 757,797 43 85,892 187,56d 137,739 226,342 1,102,744 Mixed Occupants 125,957 16 21,270 2,124 1,877 23,146 145,403 Probation 263,124 0 36,069 2,620 2,208 38,277 187,301 Public Defender 16,023 $ 2,350 $ 2,350 $27,500 Public Works 10,008 $ 1,458 85 $ 66 $ 1,524 $ 9,141 Sheriff 262,615 23 35,063 -112 -87 38,248 167,656 Total 1,548,696 82 199,046 193,701 143,065 348,093 1,803,326 L�r C rcpt t�t I.t_tl � Appendix 1 The ECMs identified in Exhibit Al are further defined in the following pages under the sub-titles Chiller Plant EOMs, Bailer Plant ECMs, Air Handler ECMs, and Energy Management Control System ECMB. Chiller Plant and Chiller Plant Pumping ECMs Several Chiller Plant ECMs were identified. These'include: 1. CCRMC Hospital--Optimize Condenser hater Pumping 2. CCRMC Hospital-Optimize Cooling Tower Operation 3. CCRMC Hospital--Install Tower Free Cooling 4. CCRMC Hospital—Install VFD on Centrifugal Chillers 5. CCRMC Hospital—Trim Condenser Pump Impellers 6. CCRMC Hospital-Install Ice Storage System 7. 1000 Ward--Install VFD Chilled Water Pumping 8. 1000 Ward—Install a New VFD Centrifugal Chiller 9. 651 Pine—Install VFD on Cooling Tower Fan 10. Los Medanos Health Center—Install VFD on Cooling Tower Fans 11. 1960 Muir-Install VFD Chilled Water Pumping 12. 4545 Delta Fair= Install VFD on Cooling Tower Fan A description of these measures by category follows: Optimize Condenser Water Pumping At the Contra Costa Regional Medical Center(CCRMC) Hospital, a minimum of two condenser water pumps are required to operate because of piping problems with the chemical treatment system. (Ince these piping problems are corrected: when only the small reciprocating chiller is 'on', only its condenser water pump will operate, and, when the intermediate screw chiller is `on', only its condenser water pump will operate. In the current situation, both of these pumps operate when either chiller is 'on'. Neither of these chillers are 'on' at the same time. Optimize Cooling Tower Operation The CCRMC Hospital chiller plant has a quantity of three, 20 HP, two-speed fans that stage to maintain 78°F to 75°F leaving tower water temperature. Changing the set points to stage each fan incrementally to maintain leaving tower water temperature between 84°F to 7 °F will provide less chiller plant energy consumption. If all of the fans were off, the sequence would stage the first fan 'on'at low speed at.74°F;the second fan would come 'on'at low-speed at 76OF, and the third fan would come'on' at low-speed at 78°F. The first fan would then be staged to high speed at 80°F, the second to high speed at 82°F, and the third to high speed at 84°F. On a reduction of leaving tower water temperature, the last high fan would be stage to low speed at 80°F, etc., until the initial fan started would be staged from low speed to off at 70°F. Assuming the fans are currently individually controlled, the only cost associated with this measure is programming. Install Tower Free Cooling The CCRMC chiller plant is required to operate to low ambient conditions to produce chilled water for air systems that are not equipped with an economizer. This measure proposes to install a 220 ton capacity plate and frame heat exchanger that can make chilled water directly from the cooling tower at low ambient wet bulb conditions. This measure assumes the plate and frame heat exchanger is selected for a 1 OF approach and chilled water temperatures up to 58°F would be tolerated before converting from tower free cooling to mechanical cooling. El %_,Crollp,LLC E zrs,cr,15'°..CT;4N cax: .. Appendix 1 3 Install VFD on CentrCfugat Chiller The largest chiller in the CCRMC chiller plant is a 450 ton Carrier centrifugal unit. This chiller can be retrofit with a til=D to improve its part-load performance. Carrier makes a pre-engineered retrofit package for this machine. At 1000 Ward, the existing chillers are nearing the end of their useful fives. This measure proposes replacing one of these machines with a VF©chiller when the decision is made to replace one or both of these machines. A variable speed drive equipped chiller saves energy by reducing compressor speed with a reduction in cooing load. Slowing the compressor speed as opposed to throttling the gas flow rate greatly improves compressor efficiency. Compressor speed has to be maintained at a minimum speed, however, to develop enough pressure to circulate the refrigerant between the higher- pressure condenser and lower pressure chilled water. In addition, applying chilled water reset and reducing condenser water temperature as the VFD equipped chiller unloads further increases energy savings. Trim Condenser Water Pumps'Impellers At the CCRMC Hospital chiller plant, each chiller has its own condenser water pump.During the site survey, balancing valves on these pumps were significantly closed. It was also noted that the pumps were designed at 100 feet of head, when 60 feet seems more appropriate. It is suspected that these pumps are significantly over-designed and that by reducing the diameter of the pump impellers energy consumption would be reduced. Another alternative would be to change the motor speed, or install a variable speed drive. These alternatives should be assessed during a detailed, feasibility--level energy audit. Install an Ice Storage Thermal Energy Storage System This measure considers installing a 1,040-tan-hour ice storage system. ice was chosen because of space considerations and existing plant configuration. The existing screw chiller can charge this capacity storage type system by from 1`0:00 PM to 8:00 AM. Thermal Energy Storage (TES) provides energy savings by generating cooling capacity at night (when electricity is less expensive), and using this storedcooling to displace chiller usage during periods (noon to 6 PM) when electricity cost are high.A larger system could be designed that utilizes the weekends to further create,cooling, though this alternative provides an increase in controls complexity and installation cost that might not be justified.. The system proposed is a partial storage system and will only displace 175 tons of on-peak cooling capacity. Install L'I'D Chilled Water Pumping At 1000 Ward and 1960 Muir the chilled water systems are constant flaw and there is only one main system pump. Theairhandlers have ':way chilled water valves and the system is fitted with a by-pass valve to maintain the flow rate on the chiller's evaporator at lover cooling load conditions. This measure proposes installing a VFD and two 20 HP chilled water pumps, and modulating the pump speeds based on system differential pressure. One concern is the speed of the existing chiller controls.Variable flog pumping, through modern chillers with quick reacting computerized controls, is now commonplace. The building's computerized controls have direct control of the chiller capacity through a pneumatic transducer. The reaction speed of this system needs to be explored before implementing this measure. yes. N cis--..:trots. vAtJ 'a _ti- Appendix 1 4 ...............- At 1960 Muir, the piping system will require conversion to primary:secondary pumping. The piping between the two chillers is currently configured incorrectly, yielding some operational difficulties. This piping requires modification, and this measure optimizes the chilled water pumping operation to provide for the least operating cost system. Install VFD on Cooling Tower Fans This measure proposes to install variable speed drives, also known as variable frequency drives (VFDs) on cooling tower fans as follows: 1. 651 Pine-(1) 10 HP fan 2. Los Medanos Health Center-(2) 7.5 HP Fans 3. 4546 Delta Fair- (1) 10 HP fan The existing cooling tower currently has a single speed motor on each cell that provides constant airflow through the tower fill. Often, ambient wet bulb conditions are such that less airflow is required to maintain the desired condenser water temperature set points. Installation of a VFD cooling tower fan motor will decrease the cooling tower fan motor energy consumption and provide proper condenser water temperature to the chillers. The cooling tower fan motor will operate at higher speeds, only if required to maintain the water temperature. This will result in a more cost- efficient operation. Boiler Plant ECMs Several Boiler Plant EOMs were identified. These include: 1. CCRMC Laboratory-Valve-Off Non-Operated Boiler 2. 100 38th Street-Replacement Boiler 3. 151 Linus Pauling-Replacement Boiler 4. Juvenile Hall - Remove Chris Adam DHW from Space Heating Load Valve-Off Non-Operated Boiler At the Contra Costa Regional Medical Center(CCRMC) Laboratory, two atmospheric boilers exist; both are pumped 8,760 hours per year. For most of these operating hours however, only one boiler is 'fired'. Losses from the hot water system occur as hot water is circulated to the 'off boiler,where heat is expelled by natural convection up the stack. Being atmospheric boilers, the flue gas passages are large and unrestricted resulting in modest convective losses. This measure proposes automating the shut off valves in the supply piping to the boilers and closing the valves when the boiler is not required to operate. A similar situation occurs at 1960 Muir Road, the Forensic Science Facility. At this facility, the automatic valves are in place and this control can be added with minimal cost because only the time to program and commission the operation of these devices is required. No savings calculations are provided for the 1960 Muir Road facility, as this measure will pay for itself very quickly. Replacement Boiler An old, large 15-prig steam boiler exists at 100 38th Street facility. This boiler is an atmospheric type. The boiler was originally sized to provide space heating and regenerate the liquid desiccant dehumidification system that existed in the building. The liquid desiccant dehumidification system has subsequently been replaced with another type of desiccant dehumidification system that uses direct gas fired heating system integral to the equipment. The load on the existing steam boiler has subsequently been reduced. _AEPCCroig),LI_C Appendix 1 5 -——--------------------------- ....... This measure proposes replacing the existing boiler with two 1,000 MBH high efficiency forced- draft hot water:condensing boilers. In addition, hot water will be required to be piped from the basement to the roof. In the roof penthouse exists a steam to hot water heat exchanger that can be removed. Also,two approximately 10,000 cfm duct mounted steam heating coils will have to be replacedwith hot water coils. The hot water boiler at 151 Linus Pauling is at the end of its useful life. This bailer requires replacement. This measure proposes replacing the existing boiler with one 1,000 MBH high efficiency forced-draft hot water condensing bailer. This boiler allows direct reset of discharge water temperature as it can safely generate 100°F water without'damaging itself. Remove Chris Adam HHW From Space Heating Load The Chris Adams facility is the only facility at the Juvenile Hall that does not include a separate domestic hot water heater. Domestic hot water is generated using the space heating boiler system. As a result, the large space heating bailer system has to operate throughout the summer months when it could otherwise be shut down. Operating this boiler plant at low load<conditions results in significant losses. This measure proposes routing a natural gas line to the Chris Adam facility and installing a dedicated gas-fired domestic water heater. We would expect 250,000 Btu/hr to be an adequate capacity for this water heater, though the size of the boiler requires further analysis. Air Handier ECMs Several Air Handling,Unit Energy Conservation Measures were identified. The following list some of these projects,with applicable project descriptions below: 1. 10 Douglas-RTU-1; VFD Control of Economizer Power Exhaust 2. 50 Douglas-AHU-3;VFD Control of Economizer Power Exhaust 3. 595 Center-AC-3, 4 VFD Control of Economizer Power Exhaust 4. 597 Center-AHU-1,;.2; VFD Control of Economizer Power Exhaust 5. 1960 Muir-Install indirect Evaporative Pre-Cooling with Heat Recovery 6. CCC RMC AHU-6-Install Air-to-Air Heat Recovery Coils 7. CCC RMC: AHU 1-10-Cooling Coil Resets on AHU 8. CCC RMC Laboratory-AHU-1, 3-Cooling Coil Resets on AHU 9. CCC RMC Laboratory-AHU-1-Fix Indirect/Direct Evaporative Cooling System 10. CCC RMC Laboratory-AHU-3-Install Direct Evaporative Cooling System 11. 2425 Bisso Lane: RTU-1, 2, 3-Replace Multizone RTUs with VAV AHUs 12. 151 Linus Pauling AC-1-4-Install VFD on VAV Fans 13. Juvenile Hail (3) AHU-1 Install VFD on VAV Fans 14. 255 Glacier BIdg1 SF1-Install VFD on VAV Fans 15. Los Medanos Health Center-AHU-1' - Install VFD on VAV Fans 16. West County Detention AC1 - 4-Install VFD on VAV Fans 17. West County Detention-AC 4.1 —Convert CV Single Zone to VAV 18. 847 B Brookside HW Pump-Install Time-of-Day Controls 19. Los Medanos Health Center-AHU-2-install Economizer 20. Los Medanos Health Center-Built-up AHU-Install Barometric Relief 21. West County Justice Center-Purge Fans-Add'VFDs AEP-C Croup,LLC Appendix 1 6 ................................................................................................I........................I....................................-......I''..,....... VFD Control of Economizer Power Exhaust These air handlers utilize a power exhaust fan to ventilate and assist in air circulation. The volume of air exhausted by these fans is controlled by exhaust air dampers mounted at the outlet of these fans. Although this is an effective means of modulating the airflow, it is inefficient from an energy perspective. By installing a variable frequency drive on the exhaust fan, savings can be achieved, as the fan's power consumption is a cubic function of its rotational speed. To implement this measure, the exhaust dampers would be locked in the fully open position and a VFD installed to control the fan's speed. The signal used to control the economizer exhaust damper would be re-routed to the VFD directly thereby requiring no new energy management system controls to be installed. Install Indirect Evaporative Pre-Cooling with Heat Recovery This energy saving measure provides for the installation of direct-indirect evaporative pre-coolers with heat recovery between the supply and exhaust fans. The building is served by six air handlers, three of which are 100% outside air(OSA). These 100% OSA units waste substantial heating and cooling energy particularly on the hottest and coldest days. This measure relates to Air Handier Units AHU 3 and 6, as the exhaust air fan is near the unit and can be rerouted relatively easily to a heat recovery unit. A Des Champs Technologies heat pipe assembly is proposed to be installed at 1960 Muir. This unit includes an outside air/exhaust air section with filters on the OSA intake and a heat pipe heat exchanger. A direct spray, indirect evaporative cooling system on the exhaust side of the heat pipe heat exchanger will be installed to further reduce the need for mechanical cooling. Though not shown, a similar direct spray arrangement can be used for direct evaporative cooling as well and has been included in the analysis. Total static pressure of the existing air handier unit and exhaust fan will be increased, though a bypass damper and controls will be installed to reduce parasitic losses. The increase in fan energy consumption due to increased static has been accounted for in the calculations. Exhaust Air Bypass Damper Exhaust Air New Heat Pipe New Heat Recovery Module Direct Spray (E)Exhaust Fan. "Hospital Partition" V (E) AHU 100%OSA OSA Bypass T Damper Outside Air This ECM has a significant effect on the heating and cooling load. In the summer, heat recovery off the conditioned exhaust air coupled with direct and indirect evaporative cooling will substantially pre-cool the outside air entering the AHU. In the winter, the exhaust fans, lighting and internal loads add approximately 9-10°F to the exhaust air stream, allowing for substantial heat recovery. AEPCC.roiA),LI_C. Appendix 1 7 DEF%H V11N__._,Vr1 ­­­.,.............................................................................. ....................................... Install Air-to-Air Host Recovery Coils This ECM allows the installation of heat recovery run-around coils between the supply fans and the exhaust fans for Regional Medical Center's AHU-6. This 100% outside air system serves the surgery area and, due to OSHPD requirements, air cannot be recirculated. Therefore, a large amount of heating and cooling energy is lost from the building throughout the year. Upon installation of heat recovery coils and controls, the liquid in the coils will transfer heat from the exhaust air stream to.the supply air stream, thus reducing the hot and chilled water demand. This installation will also increase the total static pressure of the air systems. This increase in total static pressure has been accounted for in the attached calculations(estimated at 0.25"). A pump to circulate the liquid will also consume energy and this has been accounted for. This ECM also provides additional savings in the heating season as the return fans, fighting and internal loads add approximately 9-10*F to the exhaust air stream, allowing for even more heat recovery. The supply fan also adds an additional 3-4°F to the supply air, Cooling Coil Resets on AHU This project proposes to install DDC zone controls and reset supply air temperature for each AHU by the zone requiring the most cooling. Currently, a constant supply air temperature (approximately 51*F) is delivered to the constant volume reheat coils located throughout the facility. During warmer weather,this supply air is cooled by the AHU's cooling coil. Zone temperatures are controlled by a local thermostat that opens a hot water valve to increase the temperature of the air to the space as required. Although this cooling and then heating of the air is required for proper space temperature control, it is an energy inefficient process. There is a significant portion of the year when 51 T air is not required to condition the space(s) requiring the most cooling. The supply air temperature can be raised to a point where it still maintains zone temperature, yet reduces the amount of energy required to cool and then reheat the air. The measure is accomplished by installing DDC zone controls on the EMSC network, and programming a reset schedule to raise the temperature of the supply air such that only one or two zones do not require re-heat. To ensure space humidity control, the reset will be overridden by a high humidity override. Fix IndirectlDirect Evaporative Cooling System AHU-1 of the CCC RMC Laboratory is a direct/indirect evaporative cooling unit with heat recovery by a heat pipe. This unit is in many ways similar to the unit proposed under the measure install indirect evaporative pre-cooling with heat recovery discussed above, with the exception that this unit is self contained including the supply fan, exhaust fan, cooling coil, heating coil etc. Apparently,this unit has never been installed correctly and the heat recovery aspects are not operational in the cooling mode. This measure consists of correcting the operation of the unit so that all aspects of the original design intent are realized. Install Direct Evaporatfve Cooling System AHU-3 of the CCC RMC Laboratory is a 100%OSA unit serving laboratory spaces. This measure consists of installing a direct evaporative cooling unit to pre-cool the outside air prior to entering the air handler. Savings are realized due to a reduced chilled water demand, as the cooler air requires less energy to meet the required supply air set point. AEP .Croup,Ll.C, DES C:N vAt4t,".:V:s- Appendix 1 8 ............................................................................ ............................................ ..................................- ...................................11......I'll.,........... ...._....................................... Replace Multizone RTUs with VAV AHUs This ECM proposes the conversion of a multizone constant volume system to a multizone variable air volume system. Currently all multizone systems provide a constant volume of air. The existing zone mixing dampers utilize a single linkage and pneumatic actuator to operate both the hot and cold deck dampers. This strategy provides a constant supply of mixed air to the space, which results in unnecessary blending of air streams and additional fan energy consumption. The retrofit consists of replacing the existing mixing multizone unit with a new VAV air handler unit with a variable frequency drive on the supply fan motors and performing controls modifications. Fan energy savings, in addition to heating and cooling energy savings, would result. The fans are able to unload during mild weather conditions and the hot and cold deck blending is reduced. Savings will also be achieved as the new units will have more efficient compressors and heaters, and high efficiency motors. Install VFD on VAV Fans This ECM entails replacing the existing mechanical flow control device with an electronic VFD. Existing fans currently use discharge dampers or inlet vanes to throttle the airflow in these VAV systems. The discharge dampers and inlet vanes should be fixed fully open or removed. The VFD will operate off the same control signal used to control the existing devices. VFDs save energy as power consumption varies as a cubic function of fan speed. The existing throttling devices introduce a significant pressure drop to reduce the flow of air, which consumes energy unnecessarily. Convert CV Single Zone to VAV This ECM proposes the conversion of a constant volume single zone system to a single zone variable air volume system. Currently, this system provides a constant volume of air whenever the unit is enabled. This measure assumes full flow during heating and cooling modes, but 70%of design flows during ventilation mode. By installing a VFD and slowing the fan down during the ventilation mode,fan energy savings are realized due to the cubic relationship between fan speed and power consumption. Install Time-of-Day Controls Currently the pump on the HW distribution loop operates 24 hours per day, 365 days per year. This measure connects the pump to a new time clock. The pump should also be interlocked with the boiler which is locked out above 70"F. Install Economizer on AHU-2 AHU-2 (4,500 cfm) at the Los Medanos Health Center is a 100% OSA unit. The spaces served by this system have changed usage and AHU-2 is no longer required to be 100% outside air. The exhaust ductwork is in close proximity to the unit. This measure proposes to duct the return air to the air handler and install an economizer. Some additional ductwork will need to be installed to separately exhaust the bathrooms. A PC EL DUE %N Appendix 1 9 ................................................................ ................ ...................... ........................................... ... Install Barometric Relief an Built-u ►AHU The built-up air handler at the Los Medanos Health Center is the main system serving the majority of the facility. Due to the configuration of the air handler's exhaust and outside air intake,at minimum outside air conditions, additional unwanted outside air enters a portion of the exhaust louvers;providing excess outside air. This measure proposes installing a barometric relief damper to eliminate excessive outside air at minimum outside air conditions.The County General Services already has a contractor's quotation to perform this work for$10,000. Add VFDs to Purge Fans Due to Richmond's mild climate conditions,the West County Justice Center's four inmate residential pads are not mechanically cooled During warmer weather however,the building's smoke purge fans are operated to ventilate the buildings. The airflow rates of these smoke exhaust systems are twice the make-up systems' flow rates. Also,as the smoke control systems are not designed to operate for prolonged periods,the duct velocities are excessive for continuous operation resulting in significant stress on this equipment during operation. These fans are required to be under local control at the facility and as a result will be used for ventilation. This measure proposes installing VSDs on the fans and thin the operators to set the fans to reasonable speeds during ventilation periods. Energy Management Control Systems ECMs Several controls ECMs were identified. These include various control systems optimizations: 1. OAYRI~--Controls 2. 202 Glacier—Controls 3. 2366 Stanwell—Controls' 4. 2425'Bisso—Controls 5. 2475 Waterbird--Controls A description of these measures by category follows: VaHous Control Systems 4917dmizadons The Strategic Energy Plan Building write-ups identify a few opportunities to further tune the County's existing A.lerton computerized control system to maximize the cost benefit of the County's investment in these systems. As previously stated, the County's personnel are well trained,and as a result,there are a limited number of recommendations.In addition,as the County has superior in-house expertise with their Alerton Controls Systems,the programming required to implement these suggestions can be accomplished by County personnel. This all speaks to the wise investment of standardizing the system. Specifically,these opportunities include: — Reset duct static pressure by the Zone requiring the most cooling. The control sequence may read as follows: "The supply pressure shall be set between the minimum and maximum limit based on VAV box demand. The setpointshall'be increased 0.1 inches once every 1»0 minutes if three or more VAV terminals are full open. The setpoint shall be decreased 0 1 inches once every 10 minutes if two or fewer terminals are fully open. — Reset variable flow pumping systems that operated on system differential pressure in a similar fashion as the reset duct static pressure measure previously discussed. -- Use night purge thermal energy storage. if the night air is 10°F cooler than the space, use 100% outside air to pre-cool the building. Pre-cool zones that are higher than 70'F and cut-off pre-cooling when the zone temperature is 68°F. Start pre-cooling at 3:00 a.m. 'E1 Croup,LLC e<cra, r.;1 rrxoty .vawaaa. Appendix 1 10 ............. ............. No savings calculations were generated for these measure as no cost or little cost is associated with the implementation of these measures and the savings calculations are difficult to estimate. Add DDC Controls The County still has many buildings without Direct Digital Controls (DDC). This measure recommends expanding the Alerton control system to many facilities where it is cost-effective. Those not retrofit are typically smaller structures where the investment will not be as attractive as most of the facilities where DDC have already been installed. Nevertheless,-these facilities should be considered for future DDC retrofit based on funding availability and future energy costs. All of the DDC retrofits presented are rough conservative estimates of savings. More accurate savings estimates will require field monitoring to assess the HVAC systems. These facilities include: 1. OAYRF—Add DDC Controls 2. 202 Glacier—Add DDC Controls 3. 2366 Stanwell—Add DDC Controls 4. 2425 Bisso—Add DDC Controls 5. 2475 Waterbird—Add DDC Controls Retrofit Existing Obsolete DDC Controls Systems to New Alerton Systems Three facilities have non-Alerton DDC Controls. These include the CC Regional Medical Center, 151 Linus Pauling and 2567 Waterbird Way. The Medical Center does not have DDC installed at the zone level and as a result, the constant volume reheat air handling systems do not have cooling reset controls based on zone demands that would provide huge savings. This measure is discussed in the air handling systems measures and not explored here. The savings warrant consideration in changing the entire Johnson Controls System to an Alerton System. At Linus Pauling, a Trane Tracer System is installed. These controls are also not installed to the zone level. Retrofit of this facility would require replacing the existing VAV terminals as well as the controls system. At 2567 Waterbird Way, a very old York control system exists that is no longer supported. It seems as though it is doing its job well, however, the system lacks a good interface and reporting programming venue. 40 Glacier-PC Monitor Controls In the Sheriffs Dispatch Center is a Training Room, which contains 50 PCs. These PC's and their monitors are always on. Though the space gets a lot of use, not all of these monitors need to operate all of the time. Not only does this equipment bum energy, but also the heat load on the space requires constant air conditioning. Energy Star computers have a built in energy savings feature that hibernates the computer and turns of the monitor. This does require several seconds of recovery time; but this inconvenience can save approximately $50 to$100 per monitor per year. AEPC(,ro,,),LL(, DE<<.N _;TP',N VANk- Appendix I 11 .............. ------........... ......... ....... 2. interior Lighting Systems n r'ln CounU mimbadcal syfitema Approximately;98% of County interior fluorescent troffer lighting uses 2-watt, T8 technology, and 95%+ of incandescent fixtures Ccans") have been retrofit with compact fluorescent technology. Switching technology is 90%+ manual,with one to four control zones available per room, depending on roam size. Exterior lighting is universally operated on photocells or time clocks. Our fieldwork consisted primarily of measuring lighting densities at various types of interior space classification, as shown in Exhibit A4 below. Exhibit A4 — Summary statistics for lighting audit fieldwork Average Actual E Design Density l %of a %of area Llghtir►g Observes Design County Area surve'ed Density- Dansi Densi GSE Com n it 1.11 54' 1.20 7 °J 15%Administrative 27°16 1.34 1.03 77'% 35°l4 35% 1.44 o.6s 45°l0. 40"l0 Enclosed of€ice 3% 1.08 0.36 33% 1O% From these studies, the following observations form the basis for our lighting recommendations Common areas send to have the highest design and operating'lighting densities. Figure 1 below provides an example of lighting density variation in common areas. f Common and administrative areas tend to have the best daylight harvesting potential. Operations and enclosed office space offer less potential. Table 1 above provides estimates of daylight harvesting potential by area type and figures 2 below provides an example of the potential for natural light. County staff is generally conscientious of turning off work area lights when an area is vacant (for example, 67% of surveyed vacant offices had lights turned off). Additional savings can be achieved through the installation of occupancy sensors. There is virtually no use of task lighting in any administrative or general operations work area. Exhibit A5 summarizes County lighting ECM potential Exhibit A5—Summary of Lighting ECM Potential Peak Apphcabli� sivings Energy Cost Arva County "5q Ft' (M) Savings (kWh). Savings Cost 0;ornrnon a I' ht stand r €a 6sOof 1 1 s6 ` 4 172.367 79 479 Im lament da I ht I'm rvesti823,695 01 1 0139 428 153,5341 517160 Install 28W T8 am2g 21818.1 4151 1,246,093; 159 826 237 51 Totaf I 84 531 4151 3.433 544 54M,21 233 93a AEP VM`.Sl Cjmf LLG Del''N, .C%Iz ..stcrl vawA-eve. Appendix 1 12 ........................................... ........................................... ...................................... Common area lighting Common area lighting levels, and resulting energy consumption (measured as kWh/sq ft), vary for no reason. Lighting related energy density tends to be highest in common areas, when measuring observed density versus design density. Exhibit A6 shows 2 separate common areas with a 50% difference in energy used for fighting, while Exhibit A7 provides a summary of lighting energy densities in various types of indoor space. Exhibit A8 provides a distribution of common area lighting energy density samples. Exhibit A6— Variation in Common Area Lighting Figure I -Variations in interior common area fighting densities. Exhibit A7— Variation in Common Area Energy Densities Average Actual %Area Actual Design Density %of available for %of area Lighting Observed Design County daylight Area serve ed DensDensity ity Density- GSF harvesting Co!nmon 35% 1.54 1.20 33% Administrative 27% 1 1.34 1.03 77% 35% 32% QQeLttions- 35% 1 1,44 0.65 1 45% j 40% 20% :Enclosed o!LIW, 0.361 33% 1 10% 1 24% Exhibit AS—Distribution of Common Area Energy Densities Common Area Lighting Distribution of Operating Densities(W sq ft) 5.20 5.00 4.80- 4,60- 4.40- 4.20- 4.00--, 3.80- 3,60- 33 0 4 :20 3,00 2.80- MO- IM Operating Densityl 2 48' 2:2 ....... 2.00-1...... ....... -.1.1'...." ........... 1.60 1.40- & 4I.:n it J, 0.80- 0.60- A A IIII a a W 111111 nilf,tht l Cr.ft 0.40 MO±;MHHH Mang ORMIJE 0.00 1 d 7 10 13 16 19 22 25 28 31 34 37 40 43 t AEP&,roijj),Ll-(, Appendix 1 13 VANA'. ................... ...... ..... ............. .............................................................................. ............................................. . .............. Conservation potential exists in establishing a standard energy density target for common area lighting. Common area lighting, target at.r Waft/sq ft. Exhibit A9-Common Area ECM Potential Cornrn rea ootenlatat 0.60 watts I so ft Current load @Target load @ Operating Annual kWh At$0.149 %of annual electricity M 1.2 W/sa ft .6 W/sa ft M I hours potential /kWh soend U 7609 -1 385,608 - 3,000 _:1J49.003 1 1171,201 1 2.03% Achieving potential savings will require several approaches - Simple switching where infrastructure allows (turn off 1/2 of light at the switch) - Implement switching or control systems to allow select fixtures to be controlled - Change in electronics(lamp and ballast) and /or troffer Exhibit A 10-Common Area Energy Densities Sample Data Sample Design Design Operating Area %on %off Occupancy Area Watts Density Density 1 0% 100% 1 160 204 1.28 0.00 2 20% 80% 1 1250 460 0.37 0.07 3 22% 78% 1 536 648 1.21 0.27 4 20% 80% 1 400 765 1.91 0.38 5 25% 75% 1 850 1564 1.84 0.46 6 50% 50% 1 440 408 0.93 0.46 7 44% 561yo 2 403 476 1.18 0.52 8 27% 73% 1 300 594 1.98 0.53 9 33% 67% 2 250 408 1.63 0.54 10 30% 70% 1 850 1564 1.84 0.55 11 100% 00/0 1 700 408 0.58 0.58 12 50% 500/0 1 1660 1980 1.20 0.60 13 41% W/o 1 1507 2320 1.54 0.63 14 33% 67% 1 468 918 1.96 0.65 15 100% 0% 1 1156 782 0.68 0.68 16 100% 0% 1 589 408 0.69 0.69 17 45% 550/0 1 520 810 1.56 0.70 18 40% 60% 2 1127 2008 1.78 0.71 19 100% 00/0 1 600 476 019 0.79 20 86% 141/6 1 1016 952 0.94 0.81 21 100% 0% 1 3200 2720 0.86 0.85 22 100% 0% 1 480 408 0.86 0.85 23 82% 18% 1 2190 2346 1.07 0.88 24 100°16 00/0 1 900 816 0.91 0.91 25 100°16 00/0 1 330 306 0.93 0.93 26 50% 60% 1 136 272 2.00 1.00 27 100% 00/0 1 120 136 1.13 1.13 28 100% NO 1 300 340 1.13 1.13 29 100% 00/0 1 900 1134 1.26 1.26 30 60% 50% 1 160 408 2.55 1.28 31 100% 0% 1 520 810 1.56 1.56 32 100% 00/0 2 380 612 1.61 1.61 33 86% 14% 1 500 952 1.90 1.64 34 100% 00/0 1 140 240 1.71 1.71 35 100% 00/0 1 820 1488 1.81 1.81 36 100% 0% 1 650 1564 1.84 1.84 37 100% 00/0 1 850 1632 1.92 1.92 38 80% 20% 1 660 1768 2.68 2.14 39 100% 00/0 1 1280 2856 2.23 2.23 40 100% 00/0 2 600 1360 2.27 2.27 41 100% 0% 1 684 1768 2.58 2.58 42 100% 0% 1 660 1768 2.68 2.68 43 100% 0% 1 187 544 2.91 2.91 44 100% 0% 1 168 816 4.86 4.86 31,786 45,217 1.62 1.20 AEP&rmip,LLC DES CN Appendix 1 14 ................................................................. ................... ............. ............ ...... ................ Daylight Harvesting `Daylight harvesting' is the technique of lighting a facility using natural light instead of electric light. The technique is applicable where skylights are present, and along the interior perimeter of a facility where Windows are present. Daylight harvesting can be achieved in a number of ways,from simply shutting off lights where adequate daylight is present, to installing controls that automatically dim or turn of lights when a sensor detects adequate 'ambient light. It is estimated that 863,695 sq. ft. of County space is amenable to various daylight harvesting techniques and technologies. Exhibit 3.9 below provides a summary of countywide savings potential. Exhibit A 11— Daylight Harvesting Potential CCCRMC Hall Ave Conservation potential exists in identifying and implementing daylight harvesting. Exhibit Al2—Daylight Harvesting ECM Potential Daylight harvest Dotential at 80%reduction in avolicable Admin and 0)aerations areas GSF with Target"'0"" 0 harvesting reduction Operating Annual kWh At$0.149 %of annual electricity potant al (Wafts Z so ft)I houra- 1- ten i t kWh spend- 823,695 572,460 -1 1800 1 . 1,030,428 1 $153,534 1.81% Achieving potential savings will require several approaches - Implement photo-sensor based control systems to allow existing fixtures to be controlled - Change in light fixture electronics (lamp and ballast) and /or troffer and adding controls AE P C sLr L)j,v,LLCM c C,S �J4 t-,C YAN Appendix 1 15 .......... Study of Dayftht Uarvestfna P tential'at 1275 hall Ave 1275 Hall avenue offers excellent daylight harvesting potential because of the large skylights and open bay design. With the overhead lights on, lighting levels, measured in footcandles registered between 90 and 300, versus a County average of 35 footcandles. With the large overhead;.;lighting turned off footcandles at desk level registered between 80 and 270, more than adequate for any activity. Small task lights can be installed where daylight is not sufficient light Exhibit A13-Daylight Harvesting Potential at Half Avenue E- Analysts; 80—270 footcandles with 75% lights off 90 _300 foot candies with lights on T5 overhead shut off 1,800 hrs /yr= 21.78kW @ 1800 hrs/yr= 39,168 kWh /yr= 3.8% of target At$0.1579/kWh= $6,184 =4.0%0 of target 60,000 sq ft/4,284,000 = 1.4% of Net County GSF. .AEP Croi4,) LLC 5• :r�. re:=..crirh• valva ;vz - Appendix 1 16 ........................ ............................................... .................................- Recommended Process for Designing Lighting System ECMs I Criteria for selection - Implementing lighting projects will require a phased approach; - Identify best-in-class' lamps, ballasts and control technologies - Implement test sites to verify technology selections - Develop a design template to provide standard guidelines for each building and technology - Identify all funding and rebate opportunities - Develop an implementation schedule based on self funding projects and projects that occur as normal maintenance activity 2. Rebate opportunities-depends on solutions mix 3. Feasibility and Schedule(input here from GSD) -AEPC-C'ro11p'LLC' DV IN �.Tli-N - 1AHA-*V-1- Appendix 1 17 .................. .................. ............... B. Facility Renewal Projects Exhibit A14 provides estimates on the energy impact of facility renewal projects identified during the field work conducted for this study. The definition used in this report for a 'Facility Renewal Project' is a potential energy conservation measure that is not financially viable as a stand alone, self funding project but should be considered for incremental funding when a broader renewal project is undertaken, The general criteria used to identify facility renewal projects is a payback longer than 10 years. Exhibit A 14 - Energy Impact of Potential Facility Renewal Projects Los Madanos Health Carder Install Return AIS Duct and 1,200 (0) $ 357 787 649 1,006 15,133 Economizer on AH2 West County Datenfion fttali Alarton DDC controls 210,730 28,213 20,755 15,201 43,415 700,400 151 Linus PauWV Replace Old HW Boller on Roof wt (543) Now HI-Eff.Sollsr(2) (0) (77) 2,431 2.079 2,002 61,610 40 Douglas Install DOC Zone Level Controls to 33,228 5.334 1,586 1,602 6,936 277,032 Existing Alerton 2467 Waterbi.rd Replace existing York DOC with 6,000 852 500 486 1,318 59,432 Alerton CC Regional Medical Center IEC-AHU 1 5,382 290,919 CC Regional Medical Center Install Variable Speed Drive on 85,415 53 15,641 15,641 181,255 Centrifugal Chiller 161 Linus Pauling ane existing Trans DDC with 25,55,- $4,493 1,311 $1,227 $5,720 $406,41 I f 0 38th Street Replace Oversized$tsam Boller wl -12,933 -120 41,95 17,496 $14,961 $13,006 $148,421 HW Boiler and Install 2 HW Coils(1) 1 Total 98,0371 50 $ 18,0791 18,807 16,188 34,267 $ 735=099 ADC t�� tVAWW'1v-\- Appendix 1 Contra Costa County Strategic Energy Plan fy.j f3 S1sR'`i'.`'., APPENDIX li A. The California Energy Action Pian P Group,LLC =SIGN =CNSTR;;�71DN �MAN4G5b1cNT G Adopted STATE OF CALIFORNIA CONSUMER POWER AND ENERGY RESOURCES PUBLIC UTILITIES CONSERVATION CONSERVATION AND COMMISSION FINANCING AUTHORITY DEVELOPMENT COMMISSION ENERGY ACTION PLAN California is a diverse and vibrant society. The fifth largest economy in the world, California's population is expected to exceed 40 million by 2010. California's economic prosperity and quality of life are increasingly reliant upon dependable, high quality, and reasonably priced energy. Following the biggest electricity and natural gas crisis in its history, the state is well aware of the need for stable energy markets, reliable electricity and natural gas supplies, and adequate transmission systems. Looking forward, it is imperative that California have reasonably priced and environmentally sensitive energy resources to support economic growth and attract the new investment that will provide jobs and prosperity throughout the state. California's principal energy agencies have joined to create an Energy Action Plan. It identifies specific goals and actions to eliminate energy outages and excessive price spikes in electricity or natural<gas. These initiatives will senda signal to the market that California is a good place to do business and that investments in the more efficient use of energy and new electricity and natural gas infrastructure will be rewarded. This approach recognizes that California currently has a hybrid energy market and that state policies can capture the best features of a vigorous, competitive wholesale energy market and renewed, positive regulation. This approach will be ever mindful of the need to keep energy rates affordable, and is sensitive to the implications of energy policy on global climate change and the environment generally. While this Plan lays out specific actions, it is a living document. It is a blueprint that is subject to change over time.` The agencies will use it to give their efforts direction, focus, and precision, but some of the specific actions cited are subject to further proceedings so may need to be fine-tuned or changed to best meet the overall goals. 1 Adopted Energy Action Plan Goal The goal of the Energy Action Plan is to: Ensure that adequate, reliable, and reasonably-priced electrical power and natural gas supplies, including prudent reserves, are achieved and provided through policies, strategies, and actions that are cost-effective and environmentally sound for California's consumers and taxpayers. The energy agencies intend to achieve this through six specific means: • Meet California's energy growth needs while optimizing energy conservation and resource efficiency and reducing per capita electricity demand. ■ Ensure reliable, affordable, and high quality power supply for all who need it in all regions of the state by building sufficient new generation. ■ Accelerate the state's goal for renewable resource generation to 2010. ■ Upgrade and expand the electricity transmission and distribution infrastructure and reduce the time before needed facilities are brought on line. • Promote customer and utility owned distributed generation. ■ Ensure a reliable supply of reasonably priced natural gas. The Agencies are Accountable for Stewardship of California's Energy Future The state's principal energy agencies are committed to active and continued cooperation. This is unprecedented. To implement this Energy Action Plan agencies pledge: • To discuss critical energy issues jointly through open meetings and ongoing informal communication. • To share information and analyses to minimize duplication, maximize a common understanding and ensure a broad basis for decision-making. • To bring joint policy.recommendations about major energy issues to the Governor and Legislature. The state needs to guide development of the energy system in the public's best long- term interest, to anticipate potential problems, and to make timely decisions to resolve problems. Specifically, the agencies commit to: • Provide decision-makers impartial assessments of the state's immediate and long-term electricity and natural 'gas demands, resources, and prices. • License. and, where necessary, fund construction of new energy facilities that are consistent with the reliability, economic,, public health, and environmental needs of the state. Ensure that the utilities are able to carry out their obligation to serve, including having adequate reserves, recognizing this is a critical component of the current hybrid energy system. • Restore investor and private sector confidence in California's energy markets. 2 Adopted ■ Develop an "early warning" system to alert policy makers of potentialfuture problems. Work with FERC' to redesign market rules and prevent manipulation of the energy markets. Partner with governmental and other groups in western North America to pursue commonly held energy goals. ■ Make continuing progress in meeting the state's environmental goals and standards, including minimizing the energy sector's impact on climate change. Shared Principles and Strategies Will Guide this Stewardship Achieving the overall goal and implementing the proposed actions require close cooperation between the state's energy agencies.and means establishing and following common principles' and strategies. In particular, the agencies intend' to use market forces and regulatory approaches to operate the system in the best, long-term interest of the public: the consumers, the ratepayers, and the taxpayers. This means agency actions will attract private investment into California's energy infrastructure to stretch and leverage public funds and consumer dollars. The agencies must also provide appropriate regulatory guidance, price signals, and incentives to all Californians to use energy efficiently. The agencies will achieve rate stability and provide affordable energy, particularly for low-income consumers, through progressive rate design. To protect the public's health and safety and ensure our quality of life, the agencies support the most cost-effective and environmentally sound strategies, including consideration of global climate change. The agencies also will work to ensure that low-income populations do not experience disproportionate adverse impacts from the development of new energy systems. The Agencies' Approach Will be Open and Timely Achieving the overall goal requires thoughtful planning, followed by specific, timely actions. This process begins with an ongoing assessment of the current and future energy system and the state's economic needs. It must consider a range of risks and uncertainties and must identify and inform policy makers of potential shortfalls and vulnerabilities. The agencies and state policy makers need to respond by carefully considering available options, balancing costs and benefits to meet state goals, selecting policy choices, and devising actions to implement those policy choices. The result must be a set of interrelated actions that complement each other, provide risk protection, and eliminate the costs and conflicts'that would occur if each agency pursued isolated, uncoordinated objectives. Each agency will need to implement the action plan in its individual proceedings but in concert with each other. For the action plan to achieve the desired outcomes, it must rely on a common vision and be based on an integrated energy resource plan indicative of the state's future energy needs. The Energy Commission's integrated energy assessment process, as set forth by the Governor and Legislature last year in SB 1389, represents a critical 3 ........... ...... ............. ...... Adopted step in identifying future statewide energy needs. The agencies will participate in this process, assessing demand growth and available supply, and balancing various state policy objectives to determine the combination of conservation and infrastructure investments that best meet California's short- and long-term needs. The Public Utilities Commission and the Power Authority will carry out their energy-related duties and responsibilities based upon the information and analyses contained in the assessment. The Action Plan envisions a "loading order" of energy resources that will guide decisions made by the agencies jointly and singly. First, the agencies want to optimize all strategies for increasing conservation and energy efficiency to minimize increases in electricity and natural gas demand. Second, recognizing that new generation is both necessary and desirable, the agencies would like to see these needs met first by renewable energy resources and distributed generation. Third, because the preferred resources require both sufficient investment and adequate time to "get to scale," the agencies also will support additional clean, fossil fuel, central-station generation. Simultaneously, the agencies intend to improve the bulk electricity transmission grid and distribution facility infrastructure to support growing demand centers and the interconnection of new generation. Energy Services are Growing, are Essential, and the Delivery Systems are Complex As a context for this plan, Californians must understand the essential and complex nature of the state's energy resources. Currently the state uses 265,000 gigawatt- hours of electricity per year. Consumption is growing 2 percent annually. Over the last decade, between 29 percent and 42 percent of California's in-state generation used natural gas. Another 10 - 20 percent was provided by hydroelectric power that is subject to significant annual variations. Almost one third of California's entire in-state generation base is over 40 years old. California's transmission system is aging also. While in-state generation resources provide the majority of California's power, California is part of a larger system that includes all of western North America. Fifteen to thirty percent of statewide electricity demand is served from sources outside state borders. Peak electricity demands occur on hot summer days. California's highest peak demand was 52,863 megawatts and occurred July 10, 2002. Peak demand is growing at about 2.4 percent per year, roughly the equivalent of three new 500- megawatt power plants. Residential and commercial air conditioning represent at least 30 percent of summer peak electricity loads. California's 'demand for natural gas also is increasing, Currently the state uses 2 trillion cubic feet of natural gas per year. Historically the primary use of this fuel was for space heating in homes and businesses. Electricity generation's dependence on relatively clean-burning natural gas now means that California's annual natural gas use by power plants is expected to increase. Overall, natural gas use is growing by 1.6 percent per year. Eighty-five percent of natural gas consumed in California is supplied by pipelines from sources outside the state. 4 .................. Adopted Six Actions The agencies propose six sets of actions of critical importance that need to be undertaken now. These are: J Optimize Energy Conservation and Resource Efficiency California should decrease its per capita electricity use through increased energy conservation and efficiency measures. This would minimize the need for new generation, reduce emissions of toxic and criteria pollutants and greenhouse gases, avoid environmental concerns, improve energy reliability and contribute to price stability. Optimizing conservation and resource efficiency will include the following specific actions: 1. Implement a voluntary dynamic pricing system to reduce peak demand by as much as 1,500 to 2,000 megawatts by 2007.' 2. Improve new and remodeled building efficiency by 5 percent. 3. Improve air conditioner efficiency by 10 percent above federally mandated standards. 4. Make every new state building a model of energy efficiency. 5. Create customer incentives for aggressive energy demand reduction. 6. Provide utilities with demand response and energy efficiency investment rewards comparable to the return on investment in new power and transmission projects. 7. Increase local government conservation and energy efficiency programs. 8. Incorporate, as appropriate per Public Resources Code section 25402, distributed generation or renewable technologies into energy efficiency standards for new building construction. 9. Encourage companies that invest in energy conservation and resource efficiency to register with the state's Climate Change Registry. H. Accelerate the ,State's Coal for Renewable Generation In 2002, the Governor signed the Renewable Portfolio Standard (RPS), SB 1078. This standard requires an annual increase in renewable generation equivalent to at least 1% of sales, with an aggregate goal of 20% by 2017. The state is aggressively implementing this policy, with the intention of accelerating the completion date to 2010, and will. ' . California is actively evaluating and implementing such pricing systems in a CPUC rulemaking �R.02-06-001). The Energy Commission's 2005 building standards, to be adopted in 2003, when combined with training and enforcement, are expected to reduce energy needs in new buildings by approximately 5 percent. New federal appliance standards will increase air conditioner efficiency by approximately 20 percent, but if California were granted a waiver from federal standards, by 2007 California air conditioner efficiency would increase another 10 percent. 5 ............................... ...................................— .............— Adopted 1. Add a net average of up to 600 MW of new renewable generation sources annually to the investor-owned utility resource portfolio.4 2. Establish by June 30, 2003, key RPS implementation rules, including market price benchmarks, standard contract terms, flexible compliance and penalty mechanisms, and bid ranking criteria under the "least cost-best fit' rubric. Other key RPS rules will be developed and refined throughout 2003. 3. Facilitate an orderly and cost-effective expansion of the transmission system to connect potential renewable resources to load. 4. Initiate the development of RPS compliance rules for energy service providers and community choice aggregators. 5. Coordinate implementation with all relevant state agencies and with municipal utilities to facilitate their achievement of the standard. M. Ensure Reliable, Affordable Electricity Generation The state needs to ensure that its electrical generation system, including reserves, is sufficient to meet all current and future needs, and that this reliable and high quality electricity comes without over-reliance on a single fuel source and at reasonable prices. To these ends the state will: 1. Add new generation resources to meet anticipated demand growth, modernize old, inefficient and dirty plants and achieve and maintain reserve levels in the 15 percent-18 percent range.5 Current estimates show a statewide need for 1500 - 2000 MW per year.6 2. Finance a few critical power plants that the agencies conclude are necessary and would not otherwise be built. An estimated 300 MW of peaking capacity located in critical areas is needed to provide local reliability, help achieve adequate reserves, and reduce congestion and the need for new transmission lines.7 3. Work with the California Independent System Operator (CAISO) to implement generator maintenance standards and an oversight process to support coordinated availability of generation! 4 Electricity sales by the Investor-owned utilities totaled about 169,000 GWh in 2001. The renewables portfolio standard requires an annual increase in renewable generation equivalent to I percent of sales, or about 1,700 GWh. Assuming a capacity factor of about 50 percent, this is roughly equivalent to 385 MW. Accelerating achievement of the RPS goal to 20 percent by 2010 would mean adding 4,200 MW of renewables over 7 years, or 600 MW (1.6 percent) per year. California is implementing the Renewable Portfolio Standard for the Investor-owned utilities in a PUC rulemaking �R.01-10-024). The Western Electricity Coordinating Council (WECC) has established minimum operational requirements of loss-of-load probability of no more than one day in ten years. Current information suggests that the WECC criteria can be met with approximately 15 — 18 percent reserve margins. 6 Peak demand growth is expected to be approximately 1,400 MW per year for the next two years, depending on weather and other factors. California is evaluating statewide generation resource needs in the CEC development of the Integrated Energy Policy Report (02-IEP-01). 7 The CAISO in 2002 identified generation-deficient areas and sub-areas within its control area, such as the greater Bay Area, Humboldt, Battle Creek and Vaca Dixon. Although some of these constraints may be solved by transmission improvements, it may prove more cost-effective to add new generation in some areas perhaps utilizing the CPA's authority to finance new power plants. California is undertaking this effort in a PUC rulemaking (R.02-11-039). 6 ........,......."""�.�............................................ ................. ............ - Adopted 4. Work with the CAISO to ensure the development of a workable, competitive wholesale energy market that has meaningful market power mitigation rules. 5. Monitor the electricity market to identify any exercise of market power and manipulation, and work to improve FERC-established market rules to correct any observed abuses. 1V. Upgrade and Expand tate Electricity Transmission and Distribution Infrastructure Reliable and reasonably priced electricity and natural gas, as well as increasing electricity from renewable resources, are dependent on a well-maintained and sufficient transmission and distribution system. The state will reinvigorate its planning, permitting, and funding processes to assure that necessary improvements and expansions to the distribution system and the bulk electricity grid are made on a timely basis; 1. The agencies will collaborate, in partnership with other state, local, and non- governmental agencies with energy responsibilities, in the California Energy Commission's integrated energy planning process to determine the statewide need for particular bulk transmission projects. This collaboration will build upon the California Independent System Operator's annual transmission pian and evaluate transmission, generation and demand side alternatives. It is intended to ensure that state objectives are evaluated and balanced in determining transmission investments that best meet the needs of California electricity users. 2. The Public Utilities Commission will issue an Order Instituting Rulemaking to propose changes to its Certificate of Public Convenience and Necessity process, required under Public Utilities Code § 1001 et seg., in recognition of industry, marketplace, and legislative changes, like the creation of the CAISO and the directives of SS 1389. The Rulemaking will, among other things, propose to use the 'results of the Energy Commission's collaborative transmission assessment process to guide and fund IOU-sponsored transmission expansion or upgrade projects without having the PUC revisit questions of need for individual projects in certifying transmission improvements. 3. The Public Utilities Commission will ensure that IOUs build out and properly staff and maintain distribution systems to meet California's growth, provide reliable service, and stand ready to restore service after unplanned distribution system outages. 4. The Energy Commission will work with municipal utilities to help ensure completion of transmission expansion or upgrade projects in their systems for which the collaborative transmission assessment process finds a need. V. Promote Customer and Utility Owned Distributed Generation Distributed generation is an important local resource that car► enhance reliability and provide high quality power, without compromising environmental quality. The state is promoting and encouraging clean and renewable customer and utility owned distributed generation as a key component of its energy system.. Clean distributed generation should enhance the state's environmental goals. This determined and 7 .......... ................................... ....................................... .......................................- ................................ Adopted aggressive commitment to efficient, clean and renewable energy resources will provide vision and leadership to others seeking to enhance environmental quality and moderate energy sector impacts on climate change. Such resources, by their characteristics, are virtually guaranteed to serve California load. With proper inducements distributed generation will become economic. 1. Promote clean, small generation resources located at load centers. 2. Determine whether and how to hold distributed generation customers responsible for costs associated with Department of Water Resources power purchases. 3. Determine system benefits of distributed generation and related costs. 4. Develop standards so that renewable distributed generation may participate in the Renewable Portfolio Standard program. 5. Standardize definitions of eligible distributed generation technologies across agencies to better leverage programs and activities that encourage distributed generation. 6. Collaborate with the Air Resources Board, Cal-EPA and representatives of local air quality districts to achieve better integration of energy and air quality policies and regulations affecting distributed generation. 7. The agencies will work together to further develop distributed generation policies, target research and development, track the market adoption of distributed generation technologies, identify cumulative energy system impacts and examine issues associated with new technologies and their use. Vt. Ensure Reliable Supply of Reasonably Priced Natural Gas The high and volatile price of natural gas contributed significantly to the energy crisis in 2000-2001, and concerns about manipulation of the market and scarcity persist. The Governor's Natural Gas Working Group was formed to monitor natural gas demand, supply and price issues and facilitate the construction of California infrastructure projects. Yet California remains vulnerable to the volatile spot market. The agencies will pursue the following actions: 1. Identify critical new gas transmission, distribution and storage facilities needed to meet California's future needs. 2. Monitor the gas market to identify any exercise of market power and manipulation, and work to improve FERC-established market rules to correct any observed abuses. 3. Evaluate the net benefits of increasing the state's natural gas supply options, such as liquefied natural gas. 4. Support electric utilities and gas distribution companies entering into longer-term contracts as a hedge against volatile and high spot market prices. In implementing this plan, the agencies are mindful that energy services — both natural gas and electric — are essential to every Californian's general welfare and to the health of California's economy. As actions to improve the reliability of these services are considered, the agencies will each take into account the effect the action will have on energy expenditures, the environment and climate change, and the overall economy. Alternatives to proposed actions will be evaluated in an integrated 8 .......... ............. Adopted fashion, consider the cost of action or inaction, and.consider the equitable distribution of costs among customer classes and groups. While 'implementation of this Action Plan represents a challenge, it is an important step for the agencies to take together to help achieve the state's overall goal of adequate, reliable, and reasonably priced electrical power and natural gas supplies. Adopted May 8, 2493 by a 3-2 vote of the CPUC. Dissent of Commissioners Lynch and Wood attached. Adopted April 39, 2993 by unanimous vote of the CEC. Adopted April 18, 2993 by unanimous vote of the CPA. 9 Adopted Dissent of Commissioners Lynch and Wood:to the Energy Action Plan, May 8, 2003, Item CR-2 Coordination among agencies is good. Cooperation among agencies is good. Planning is good. All of these aspects of the Action,Plan are positive. However, there is a difference of emphasis and philosophy that makes the document unsupportable at present. Our focus is on consumers. The Plan's focus is on competition. We want stability, predictability, consumer protection, low prices, environmental preservation, and regulatory fairness. The;Plan talks about markets. We want to re-establish and strengthen the utilities' obligation to serve. The Plan wants to cultivate hybrid markets. We want to promote distributed renewables and new efficient, low-polluting, utility-owned generating plants. The Plan offers generic support for customer-owned generation in any form. We want to ensure that utilities make wise economic choices when procuring or generating power. The plan wants to use "proper inducements" to help various kinds of distributed generation technologies to become economical. This is a euphemism for ratepayer provided subsidies. We want to restore investor confidence in California's regulated utilities. The pian talks of restoring investor confidence in California's energy markets. Stable energy markets, reliable energy supplies and adequate transmission systems are all admirable goals, standing alone, they miss the point if they do not explicitly address the needs of the California consumers. We want to vigorously oppose FERC's efforts to invade areas of state jurisdiction. The Plan wants to work with FERC to redesign markets. We want to use the tools of regulation to provide consumers with the products and prices they desire. The Plan talks about continuing to rely on market forces to provide at least part of the answer. Where one stands on these issues makes all of the difference when answering fundamental questions about energy planning and service. Someone who looks at an inkblot and sees markets will argue for higher reserve margins and redundant transmission facilities — adding billions of dollars in cost. One who looks at the same image and sees the face of a consumer will be searching for ways to keep costs low and stable, make supplies efficiently reliable, and support integrated planning and least-cost dispatch. It is this fundamental difference that drives the debate about such things as transmission adequacy and ISO rule changes. None of us may be so wedded to one vision that all of our choices will be true to a single course. However, the proposed Energy Action Plan steers straight down a path leading to deregulated energy markets. We do not agree that the Commission should take California consumers down this road and will not vote to support the Action Plan in its current form. We have a further concern involving process that is fundamental. Where the Energy Plan reflects the expression of goals and an approach for moving forward, it is welcome, appropriate and even necessary. However, where it 10 :..> .............. ............I.......I............I.......................I.................. Adopted attempts to prescribe'specific outcomes for matters that require evidentiary records and careful scrutiny, if goes too far. What is good and appropriate in terms of coordination and planning is perhaps reflected best by the section that addresses gas reliability and prices. In this section, the agencies commit to identify needed new facilities, monitor the market to guard against the exercise of market power, evaluate the net benefits of new supply options such as LNG, and support the appropriate use of long-term supply contracts to stabilize prices. These are broad goals that could appropriately frame the activities of the agencies without prejudging the outcome of formal proceedings. But what the ad hoc subcommittee and this commission cannot do is to form advance commitments to decide in a certain way matters that must come before the agency. This is not a limitation of philosophy or style. It is a limit imposed by law. Here are some examples of ways in which the Plan moves beyond appropriate planning and coordination. It sets goals for peak demand reduction through a variable pricing system. It does this, although it acknowledges that the Commission is actively evaluating such pricing systems in a pending proceeding. It declares an appropriate capacity range for new electric resource additions and an appropriate range for reserve margins although the Commission has yet to take the steps required by AB 57 before establishing such goals. Similarly, it jumps ahead of the AB 57 process to declare a level of needed new peaking capacity. It declares that three specific new transmission projects are needed even though the Commission is required by law to make record-based needs assessments under Section 1001 and CEQA. One of the projects, the Path 15 upgrade, is the subject of two draft decisions that are currently pending before the Commission. The other two — a second Palo Verde-Devers line and an expansion to serve wind farms in Tehachapi -- are as-of-yet not even the subject of formal applications. It announces that sufficient new transmission must be built to ensure high quality power supply throughout the state, although those nice-sounding words suggest that the entire state should be wired as if it is the Silicon Valley. It prejudges the Commission's decision about departing load customers and pledges the adoption of exemptions for various technologies at levels not represented by any Commission orders. We fear that some commissioners show an impatience for action that reflects more than a desire for government to act quickly. We are concerned that it reflects a desire to lock the agency into positions and commitments before it is burdened by such niceties as the facts in an evidentiary record and parties' interpretations of the law and policy. In an apparent effort to answer this concern, the current draft contains a warning label, declaring that specific proposed actions may need to be fine-tuned or changed. However, this message is transparent. If the subcommittee did not intend for specific numbers to have meaning, then it would not have included them in the document. If the signers did not intend for certain construction projects to be 11 . .. ...................................... ...................................................................................................................I................. .......I................... ........I........-......................... ......................................................................................................................................- ....................... ..................... Adopted approved, then they would not have included words calling for their approval. As the disclaimer further states, this is a "blueprint", intended to provide "direction, focus, and precision". The obvious goal is to predetermine either the specific outcome or the substantive direction of various proceedings currently,pending, or expected to be filed. We cannot pledge, in advance, to lower someone's rates in a certain way, deny someone's complaint, or approve someone's petition. Nor can we skirt around pending proceedings to create new programs, set reserve margins or declare that certain new facilities are needed. To do so would be unfair. It would breed cynicism and it would violate the law. For these reasons, we cannot and will not support the adoption of the Energy Action Plan. /s/ LORETTA M. LYNCH CARL WOOD Loretta M. Lynch Carl Wood Commissioner Commissioner San Francisco, California May 8, 2003 12 --------------------- .................-