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Strategies for GHG Stakeholders: Enhancing Building Efficiency and Promoting On-site CHP

This document outlines strategies for greenhouse gas (GHG) stakeholders to enhance energy efficiency in buildings and facilities. Key topics include conserving fossil fuels through improved building codes, appliance standards, and promoting combined heat and power (CHP) systems. The report discusses progress made, policy options under review, potential funding sources, and next steps for implementation. By addressing energy consumption and fossil fuel reliance, these strategies aim to create more sustainable buildings and reduce environmental impact.

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Strategies for GHG Stakeholders: Enhancing Building Efficiency and Promoting On-site CHP

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  1. BUILDINGS & FACILITIES For GHG Stakeholders December 9, 2004

  2. Conserving fossil fuels Efficiency in new buildings Appliance standards Promoting on-site CHP (aka cogen.) B&F FOCI

  3. 1. CONSERVING FOSSIL FUELS • Background factors • Progress so far • Policy options under review (to complement voluntary actions) • Dedicated funding options • Next steps

  4. BACKGROUND FACTORS • GAS & OIL dominate RI home heating, also important in nonresidential markets • HIGHER gas and oil prices • EFFICIENT and advanced gas AND oilheat technologies • WEATHERIZATION opportunities remain • GAS DSM in MA but not RI • NORA now promotes oilheat R&D, training, PR

  5. PROGRESSSO FAR • Energy Office stepped up to plate with new programs • Incentives for Energy Star oil/propane appliances (NECo budget, very limited) • Small C&I Program (piggybacks on NECo program, going up to 200 kW) • ESCo/performance contracting program (4 ESCOs selected, workshop on PC held for target faciliites) • New England Gas proposing to extend GasNet programs to RI –details not finalized. • PP&L got biodiesel program grant

  6. OPTIONS UNDER REVIEW • Federal grant (DOE state energy program -- renew? EPA small grant -- renew?) • NORA grants -- discussion with OHIRI • Increase gas DSM funding--requires PUC action or legislation • Establish dedicated funding for oil & gas EE--requires legislation

  7. DEDICATED FUNDING OPTIONS • NECo collects on electricity sales, passes to State for programs • Like RCS in past, renewables now • Levy on usage or sales of oil or oil/gas • All building sector usage (see draft legislation) • Just residential (partial lift of residential heating fuel sales tax exemption) • Carveout from commercial sales tax • Just to supplement lower-income weatherization program (VT approach)

  8. ILLUSTRATIVE DRAFT LEGISLATION • Surcharge on fossil fuel usage • Dedicated fund for oil/gas energy efficiency and renewables (like biodiesel) • Illustrative funding level • Natural gas -- $0.009/therm • Propane -- $0.008/gallon • Fuel oil-distillate (heating oil) -- $0.012/gallon • Fuel oil-residual -- $0.013/gallon

  9. NEXT STEPS • Feedback from SAG to Buildings & Facilities working group?

  10. 2. NEWBUILDINGS • State building code • Energy & environmental performance standards for new public schools • Next steps?

  11. 3. APPLIANCE STANDARDS • NEEP’s legislation • Building code option • Next steps?

  12. 4. PROMOTING ON-SITE C.H.P. • Focus on cogenerating electricity and thermal energy on-site • CHP uses thermal energy from heat normally wasted in electricity generation • Result: energy and environmental benefits • Also, potential reliability benefits • Cost and maintenance issues must be addressed

  13. C.H.P. & UTILITY RATES • Electric utility backup/standby power rates • Recent settlement • Gas utility promotional rates for gas • Must apply for off-tariff rate, with justification justification

  14. KINDS OFINCENTIVES • Education & capacity building • Technical assistance re scoping studies • Project financing • Project incentives • Tax credits

  15. EXAMPLE PROGRAMS MA gas utilities technical assistance --eg Bay State Gas, 50% of cost for engineer for scoping study, up to $7500 (plus existing DSM incentives only) NJ Office of Clean Energy CHP incentives • CHP system >60% efficient • Add-on generation capability -- $0.50/W, up to 30% of project cost • New microturbine/ICE/gas turbine based -- $1/W, up to 30% of project cost • Fuel cell based -- $2.50/W, up to 40% of cost

  16. NEXT STEPS • Feedback from SAG to Buildings & Facilities working group?

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