track #3 codes, financing & incentives · 2020-03-31 · hardik miyani emit, leed green...

Session 3: Free Money: The State of Incentives & Other Funding's

Track #3 Codes, Financing & Incentives

Marie Curatolo

CEM

mcuratolo@esdglobal.com

312 551 8630

Tim Zelazny

RA, LEEP AP, WELL AP, CPHC, BECxP

tzelazny@esdglobal.com

312 551 8630

Hardik Miyani

EMIT, LEED Green Associate, CPHC

hmiyani@esdglobal.com

312 551 8613

As the cost of new construction continues to

rise, what incentives are available to help

alleviate those costs so your project is actually

built? Want to make it deep green/net zero?

What is available in IL and what can we learn

from other jurisdictions that could be adopted

at a local level to incentivize more innovative design in new construction?

Agenda

Utility Incentives▪ Overview

Case Study▪ Monitoring Based Cx

Deep Green Incentives▪ Availability

Renewable Energy Incentives▪ Commercial Buildings in Illinois

Agenda

• Understand the different types of utility incentives.

• Recall strategies pursued and realized savings from a MBCx case study.

• Analyze the deep green incentives available for new construction.

• Understand the renewable energy incentives available in IL.

Learning Objectives

Utility IncentivesAn Overview

Financial Incentives

• Existing buildings: Standard (pre-determined $/unit)

• Existing buildings: Custom ($/unit of energy saved)

• Small business

• New construction

Optimization• Retro-commissioning

• Monitoring-based commissioning

• Rooftop unit optimization

• Compressed air optimization

• Industrial refrigeration optimization

• Process cooling optimization

Utility Incentives

Assessments• Facility assessments

• Data center assessments

• Combined heat and power studies

Discounts• Instant discounts

• Business products discounts

Energy Analysis Tool• Business Energy Analyzer tool

Utility Incentives

Automated Fault

Detection and

Diagnostics

(AFDD) based

Provides real-time

analytics on

a buildings

operational data

Efficiently

identifies

operational

anomalies

Brings actionable

data to light so

informed decisions

can be made

Provides an

understanding of

how and where

energy is being

consumed

Assists in

prioritizing work

orders to respond

and implement

intelligently

Monitoring-Based Commissioning (MBCx)

EfficiencyEnsures MEP

equipment operates at

optimized state

ComfortIncreases awareness

surrounding comfort

control issues

O&MReduces costs with

operations and

maintenance

EnergyReduces energy

demand and

consumption

MBCx: Measurable Benefits

Why MBCx for New Construction?

MBCx Case StudyNew Construction

• 1.2 million ft2

• 800,000 ft2 dedicated to clinical care and research

• New construction added 33% more capacity

• Opened March 25, 2017

Case Study: MBCx for New Construction

New Construction Pilot Program:

• 18 Month Monitoring Period

• Integration Incentive—$25,000

▪ Paid upon successful implementation of MBCx platform

• Monitoring Incentive—$36,000

• Savings Incentive

▪ $0.07/kWh and $1.00/therm

▪ Up to 100% of project cost

▪ Electric incentives will start paying out after $36K

of savings have been realized but gas incentives

will be immediate upon verification of savings

Case Study: MBCx for New Construction

ECM

#Measure Description

Electrical Energy

Savings

(kWh/year)

Electrical

Cost

Savings

($/year)

Gas Energy

Savings

(therms/year)

Gas

Cost

Savings

($/year)

Incremental

Measure

Cost ($)

Simple

Payback

(years)

1Economizer AHU

Setpoint Optimization52,163 $2,815 - - $829 0.3

2Duct Static Pressure

Reduce/Reset367,708 $19,856 - - $1,658 Immediate

3

Setback Space

Temperature: Low Rise

Floors Night Setback

612,851 $33,094 82,061 $39,389 $4,974 Immediate

4

Setback Space

Temperature: High

Rise Floors Night

Setback

147,548 $7,968 19,769 $9,489 $4,145 0.2

5Chilled Water

Temperature Reset900,132 $48,607 - - - Immediate

Total 2,080,375 $112,340 101,830 $48,878 $11,606 0.1

Case Study: MBCx for New Construction

Deep Green IncentivesNet Zero, Passive House, LBC, Etc.

20% max off-site

Why Do Deep Green?

Santa Monica• All new single family construction NZE

California• All new homes and multi-family (up to 3 stories) NZE by 2020

• All new commercial NZE by 2030

NYC• Local Law 31 (city-owned buildings 50% reduction over 90.1-2013)

• Local Law 32 (stretch code, 20% savings over 90.1-2013 by 2019, 30% by 2025)

IECC 2021• AIA passed “Resolution for Urgent and Sustained Climate Action” in June 2019

• ZERO Code Renewable Energy Appendix (CE264-19)

• Membership vote in November for adoption into IECC 2021 as a stretch code

When Will Deep Green Design be a Code Requirement?

Source: NYSERDA 2019 New York Getting to Zero Status Report.

Why Do We CareAbout Chicago?

Illinois• Governor Pritzker, signatory of U.S. Climate Alliance (Jan 2019).

Achieve goals of Paris Climate Agreement = 26-28% reduction in net greenhouse gas emissions by 2025 from 2005 levels

• Illinois has reduced carbon emissions by about 16% in the years from 2005 to 2016

• Next Steps: 25% of energy from renewables by 2025

Chicago• Mayor Emanuel, signatory of Paris Climate Agreement

(December 2017)

• Chicago has reduced carbon emissions by 11% between 2005 to 2015

• Next Steps: 100% of public buildings powered by renewables by 2025, replace 85% of streetlamps to LED

What is IL and Chicago Doing?

2009

• 20% premium

2018

• 0-4% premium

Source: Figure 3. ZE Studies in the US. Zero Energy Buildings in MA. 2019 Report.

What can we as designers do? How much more does it cost to go deep green?

Deep Green Incentives

Permitting• Expedited reviews for Deep Green projects (SF, Seattle)

• LBC, PH, NZE projects automatically meet code (Marin County, MA)

Zoning• Thick wall exclusion (Vancouver, NYC)

• Setback allowance for thicker walls (Vancouver, Seattle)

• Rezoning exception (Vancouver)

Funding• Training (NYC 70% of cost, MA 50% of cost, Vancouver free for

government employees)

• PHIUS+ 2018 certification (MA, $3,250 per unit)

• IL Clean Energy Grant ($1,000,000 or 60% of the project costs, whichever is less)

• Energy modeling ($5,000 feasibility, $20,000 modeling MA)

• ComEd New Construction Incentives

Deep Green Incentives

Questions? See Ben Heymer of Slipsteam. BHeymer@slipstreaminc.org

ComEd New Construction

Deep Green IncentivesNew York

Immediate Task

• 2025

• 185 trillion Btu’s (1/3 of 2030 GHG emissions goal) via energy efficient methods

• Site energy reduction first (7.2% source to site loss)

Long Term GHG Emissions Goals

• 2030

• 40% reduction (40 by 30)

• 2050

• 80% reduction (80 by 50)

NY State—Carbon Reduction Plan (Green New Deal)

Renewables

• 2030

• 50 to 70% renewable energy

• 2040

• 100% renewable energy

NY State—Carbon Reduction Plan (Green New Deal)

1. Analyze current consumption.

Source: NYSERDA Analysis Based on the Energy Efficiency and Renewable Energy Potential Study of NY State.

NY State—Process

Source: Patterns and Trends: New York State Energy Profiles, 2001-2015.

1. Analyze current consumption.

NY State—Process

Source: NYSERDA Analysis Based on the Energy Efficiency and Renewable Energy Potential Study of NY State.

1. Analyze current consumption.

NY State—Process

2. Realize areas of greatest savings.

• Single-family

• Cooling, water heating, space heating, and then lighting

• Multi-family

• Equally cooling and water heating, followed by space heating

• Office

• Lighting, cooling, and a modest level of water heating

NY State—Process

3. Understand current barriers.

In the commercial sector, the most frequently cited

barriers relate to:

• Aesthetics and comfort as much higher priorities than energy savings

• Lack of awareness and confidence in the energy efficiency solutions

• Lack of capital/financing to cover up-front costs, even if energy

efficiency investments are attractive

• Lack of credibility of technology or solutions, unless in-house staff

or trusted engineering advisors are on board

• Poor availability of data and technical skills to identify energy efficiency

projects that could appeal to business-minded decision-makers

NY State—Process

4. Highlight key opportunities per sector

Source: Table 1. Key Market Opportunities by Sector. NYSERDA. New Efficiency: New York. April 2018.

NY State—Process

Strategy to reduce

by 185 Trillion Btus

by 2025

Source: Figure 4. NY State Energy Efficiency Activities – Total Tbtu Savings by 2050. NYSERDA. New Efficiency: New York. April 2018.

NY State—Plan

1. Reduce cooling load

Ground Source Heat Pumps• Increasing incentives by 25% equating to $1,500/ton in

natural gas constrained areas. Customers can receive up to $5 million per project.

• Free Screening tool and report to assess the potential electrification of buildings 25,000 square feet and larger in natural gas constrained areas.

Air Source Heat Pumps• Free Screening tool and report to assess the potential

electrification of buildings 25,000 square feet and largerin natural gas constrained areas.

NY State—Commercial Incentives

NY State—Deep Green Incentives

NY State—Deep Green Incentives

NY State—Deep Green Incentives

Free Training

Energy Code and Renewable Energy

• $36.5 million in training (19,500 ppl) for clean energy jobs

• https://www.nyserda.ny.gov/Business-and-Industry/Training-Opportunities

NY State—Deep Green Incentives

NY State—Project Portfolio

NYStretch Energy Code

Future

• Code moves to a carbon metric. Carbon tax?

NY State—Stretch Code

Renewable Energy IncentivesIllinois

The Solutions Project

Renewable Energy Analysis

Renewable Energy

Incentives

Solar Renewable

Energy Credits

Corporate Depreciation

Corporate Tax Credit

Grant Program

Green Building Initiative

Loan Program

RebateProgram

Property Tax

Incentive

Sales tax incentives

Bond Program

Renewable Energy Incentives

Program Name

Eligible

Renewable

Technology

Incentive Amount Max. IncentiveEligible

System Size

Equipment

Requirement

City Water Light

and Power –

Commercial

Energy

Efficiency

Rebate Program

Geothermal

heat pumps

Existing building:

$300/ton

New construction:

$800/ton

New and 1st time

installation only

Existing buildings:

$300/ton

New buildings:

$800/ton

None

specified

All-electric, installed

as the primary

source of heat

Sales Tax

Exemption for

Wind Energy

Wind

100% exemption

of retailers,

occupation tax

for building

materials

incorporated into

the facility

None

specified

None

specified

Wind facility must

have a nameplate

capacity ≥ 0.5 MW.

Building materials

must be physically

incorporated into

the building in

order to qualify

for exemption

Renewable Energy Incentives

Program Name

Eligible

Renewable

Technology

Incentive Amount Max. IncentiveEligible

System Size

Equipment

Requirement

City of Chicago –

Green Building

Permit Programs

Solar - Passive,

Solar Water Heat,

Solar Space Heat,

Solar PV, Wind,

Biomass,

Geothermal Heat

Pumps,

Daylighting,

Hydroelectric

(Small) Rainwater

Harvesting

Systems

50% of Building

Permit Fee amount

up to $25,000.

Varies by project type

and sector.

None

specified

None

specified

None

specified

Wabash Valley

Power –

Commercial &

Industrial Energy

Efficiency

Program

Geothermal heat

pumps

11 - 20 tons:

$500/ton

5.4 - 10.9 tons:

$600/ton

< 5.4 tons: $750/ton

Prescriptive

project: $25,000

Custom project:

$50,000 or 50%

of the project’s

cost

Prescriptive: < 20

tons

Custom: > 20 tons

(Payback must be

1-7 years)

COP > 3.5;

EER > 16.5

AHRI certified

Renewable Energy Incentives

Program

Name

Eligible Renewable

Technology

Incentive

AmountMax. Incentive

Eligible

System Size

Equipment

Requirement

Business

Energy

Investment

Tax Credit

(ITC)

Solar Water Heat, Solar

Space Heat, Geothermal

Electric, Solar Thermal

Electric, Solar PV, Wind,

Biomass, Hydroelectric,

Hydrogen, Geothermal

Heat Pumps, Combined

Heat & Power, Tidal,

Wave, Ocean Thermal,

Hydroelectric (Small),

Geothermal Direct-Use,

Anaerobic Digestion, Fuel

Cells using Renewable

Fuels

30% for solar,

fuel cells, wind

10% for

geothermal

Fuel cells:

$1,500/0.5 kW

Small wind turbines

placed in service

10/4/08 - 12/31/08:

$4,000

Small wind turbines

placed in service

after 12/31/08:

no limit

All other eligible

technologies:

no limit

Small wind

turbines:

≤ 100 kW

Fuel cells:

≥ 0.5 kW

Fuel cells systems: Meet

energy-efficiency criteria

Small wind turbines:

Meet performance and

quality standards set forth

by either the American

Wind Energy Association

Small Wind Turbine

Performance and Safety

Standard 9.1-2009, or the

International

Electrotechnical

Commission 61400-1,

61400-11, and 61400-12

Solar

Renewable

Energy

Credits

Solar PV

Negotiated

with

procurement

administrators

Benchmarks set

by procurement

administrators

None specifiedNone

specified

Renewable Energy Incentives

Closing

1. Project teams can be rewarded for exceeding code requirements by applying for available incentives.

2. Energy efficient buildings are a first, followed by renewable energy to meet greenhouse gas reduction goals.

3. Reach out to ComEd for any incentives you’d like to see that are not currently available.

Conclusion

Marie Curatolo

mcuratolo@esdglobal.com

Tim Zelazny

tzelazny@esdglobal.com

Hardik Miyani

hmiyani@esdglobal.com

Questions?