HomeMy WebLinkAboutCommercial Building Energy Audit Program Guidelines 09-30-2018-A2017 USDA – AEA Commercial Building Energy Audit Program Guidelines, March 30, 2018 Page 1
Commercial Building Energy Audit Program
2017 Program Guidelines
March 30, 2018
Application Deadline:
September 30, 2018
Introduction
The Alaska Energy Authority (Authority) is administering a commercial building energy audit (CBEA)
program with the purpose of improving the energy efficiency of commercial building infrastructure in
areas of the state defined as rural by USDA – all parts of the state outside of the Municipality of
Anchorage (https://www.rd.usda.gov/programs-services/rural-energy-america-program-renewable-
energy-systems-energy-efficiency). The CBEA is currently funded through the USDA Rural Energy for
America Program (REAP), which only funds energy audits for privately-owned commercial buildings in
rural areas.
The CBEA program will provide high quality energy audits or energy assessments as required by the
REAP Energy Efficiency Improvement grants to private commercial building owners to help them identify
and quantify the value of energy efficiency measures that could be implemented specific to their
building. This program will pay for 75 percent of the full cost of an audit more comprehensive than an
American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) Level I audit. The
building owner must pay the Authority directly for the remaining 25 percent of the cost of the audit and
the Authority will pay the energy auditor the full reimbursable amount for their services. The cost of the
audit, and associated 75 percent grant subsidy, is based on the size of the building. It is expected that
the current level of CBEA funding will provide for approximately 25 energy audits, depending on the size
and location(s) of the buildings that participate.
Successful applicants may choose to request a more detailed ASHRAE Level II audit or an energy
assessment as required by the REAP Energy Efficiency Improvement grants from the certified energy
auditor. Building owners interested in a complete ASHRAE Level II energy audit or energy assessment
must pay the energy auditor directly for the difference in cost between the Level I+ audit as described
herein and the Level II audit or energy assessment.
The CBEA program does not pay for the implementation of the recommended efficiency measures but
assistance is available to help building owners identify alternate financing options (e.g., REAP Energy
Efficiency Improvement Project grants) to pay for recommended improvements.
2017 USDA – AEA Commercial Building Energy Audit Program Guidelines, March 30, 2018 Page 2
Program in Brief
Application period: open monthly until funds depleted
Eligibility: Privately owned commercial buildings in rural Alaska
Audit subsidy amount: $450 to $1,575 depending on building size
Number of buildings to be funded: approximately 25, depending on building size and location
Audits & audit reports complete: March 21 – November 30, 2018; reports 30 days after audit
Building owner 25% payment due: prior to the audit and no later than September 30, 2018
Apply online: http://www.akenergyauthority.org/efficiency/commercialaudit
Application Period
The Alaska Energy Authority will accept applications from eligible commercial building owners during an
open application period starting March 15, 2018 and ending on the 30 th day of each month through
September 30, 2018 at 5:00 pm Alaska Daylight Time, or until funds are depleted.
Eligible Applicants
Eligible applicants are owners of privately-owned commercial buildings in rural Alaska, including
individuals, corporations, partnerships, LLCs, etc. To be eligible, an online application must be
submitted by or on behalf of a building owner, and the owner must agree to the required commitments
listed on the application form.
Eligible Buildings
Eligible buildings are limited to commercial buildings in rural Alaska that are privately owned. Building
uses may vary widely, including office buildings, restaurants, grocery stores, warehouses, retail, medical
offices, hospitals, hotels, lodges, etc.
The energy audits are for whole buildings only; tenants of buildings are not eligible to have partial
building audits conducted under this program, but are encouraged to invite their property owner to
participate.
Services Provided
The Authority will subsidize 75 percent of the full cost of an ASHRAE1 Level I+ energy audit2 for one or
more eligible buildings owned by approved applicants. Applicants may submit applications for multiple
buildings. The Authority will cover auditor travel expenses in full for auditors travelling more than 50
miles by car or to a community which is not road connected. The Authority will select and hire qualified
energy auditors and assign them audits based on their specific expertise and geographic location. The
energy audit and audit report shall provide at least the minimum requirements outlined below in the
“Elements of Energy Audit” section and in the format specified by the Authority.
The applicant may specify items of interest for the energy auditor to inspect more thoroughly while on
site and/or request a complete ASHRAE Level II energy audit, or an energy assessment as required by
the REAP Energy Efficiency Improvement Project grants, but the Authority will not cover audit costs
beyond those of an ASHRAE Level I+ audit, as outlined below. Following the on-site energy audit, the
1 American Society of Heating, Refrigeration and Air Conditioning Engineers, www.ashrae.org
2 For those not familiar with the levels of energy audits Wikipedia has descriptions:
http://en.wikipedia.org/wiki/Energy_audit
2017 USDA – AEA Commercial Building Energy Audit Program Guidelines, March 30, 2018 Page 3
auditor will prepare an energy audit report for the applicant and send a copy to AEA along with an
AKWarm-C file so that the audit record can be stored in the state-managed Alaska Retrofit Information
System (ARIS) database. The energy audit report will include a written report of current energy use
including benchmark Energy Use Index (EUI), identification of capital improvements that will reduce
energy consumption, and recommended low-cost and no-cost energy efficiency measures (EEM) and
energy conservation measures (ECM). The energy audit will be more comprehensive than an ASHRAE
Level I audit, meaning that the report will list specific low-cost and no-cost EEMs and ECMs and how cost
effective each is as well as identification of potential capital improvements and high level estimates of
the cost effectiveness of each along with a recommendation of additional audit and analysis. The audit
will also include energy use benchmarking using past years’ energy utility data to compare the building’s
energy use against itself and against similar buildings.
Prioritization of services while on site
Auditors may have the opportunity to perform additional work while on site. That work must be
completed in the following order of priority:
1. ASHRAE Level I+ audits, Level II audits or energy assessments performed through the CBEA
program
2. Conducting audits of additional buildings identified on-site in the community, provided they
meet program eligibility requirements and funding is available
Audit subsidy level
The Authority will pay for 75 percent of the cost of an ASHRAE Level I+ energy audit, as detailed in the
table below. The applicant must pay the Authority the remaining 25 percent of the total Level I audit
cost prior to the on-site audit and no later than September 30, 2018. The Authority will pay the energy
auditor directly for the full cost of the audit.
If the building owner elects to receive a complete ASHRAE Level II energy audit or energy assessment
from the certified energy auditor selected by the Authority to conduct the ASHRAE Level I+ audit, the
owner must pay the auditor directly for the difference in cost between the Level I+ audit as described
herein and the complete Level II audit or energy assessment.
ASHRAE Level I+ Audit Cost and Subsidy Table
Square feet of Building
25% paid to
Authority by
building owner
75% subsidy paid
by the Authority
Total Level I+ Audit
Cost
Up to 3,000 sf $150 $450 $600
3,001 - 6,000 sf $225 $675 $900
6,001 - 10,000 sf $300 $900 $1,200
10,001 - 20,000 sf $400 $1,200 $1,600
Greater than 20,000 sf $525 $1,575 $2,100
Travel Cost
The Authority will pay for travel costs for auditors travelling more than 50 miles by car or to a
community which is not road connected.
2017 USDA – AEA Commercial Building Energy Audit Program Guidelines, March 30, 2018 Page 4
Commitments Required of Applicants
1. The building owner certifies that the building on the application form is a privately-owned
commercial building in Alaska.
2. The building owner shall pay for 25 percent of the cost of the ASHRAE Level I+ audit up-front to
the Authority prior to the on-site audit and no later than September 30, 2018. In the event that
the audit does not occur, the Authority will return funds to the building owner.
3. The building owner shall commit staff time to support the auditor during pre-meetings and
walk-throughs; by providing as-built records, two years of historic energy utility records, and
similar documents as needed; and by supporting the auditor in other related activities.
4. The building owner shall commit to making at least some of the recommended low- and no-cost
improvements within one year of receiving the energy audit report. The Authority will work with
program participants as requested to identify financing sources for implementation of
recommended energy efficiency improvements.
5. The building owner shall participate in a follow-up survey one year after receiving the energy
audit report. As part of the survey, the building owner shall provide an update of the building’s
energy use (utility bills), a list of the energy efficiency measures implemented and date of
implementation, investments made in improvements, and program feedback.
6. The building owner shall permit the Authority and/or energy auditor to obtain energy usage
records for the calendar year following implementation of recommended energy efficiency
measures.
7. If the building owner elects to receive a complete ASHRAE Level II energy audit or an energy
assessment from the certified energy auditor selected by the Authority to conduct the ASHRAE
Level I+ audit, the building owner agrees to the energy auditor providing an electronic copy of
the ASHRAE Level II audit report or energy assessment to the Authority.
8. The building owner shall allow public use of the building name and location in association with
the building energy use and/or energy savings data, through a written success story, or through
a map interface of energy efficiency measures implemented in Alaska, or similar public
information about energy efficiency improvements that have been implemented.
The Application and Program Process
1. Applicant completes the application form and submits to AEA by September 30, 2018
2. Applicant receives Notice of Award email from AEA if selected within 30 days
3. Applicant makes payment for 25 percent of cost of audit to the Authority before the on-site
audit and no later than September 30, 2018
4. Authority assigns an energy auditor and notifies Applicant: The energy auditor will contact the
applicant directly to coordinate logistics related to receiving the energy audit.
5. Auditor and Applicant conduct the energy audit March 21 – October 30, 2018, after Authority
receives Applicant’s 25 percent payment.
6. Auditor emails reports: Auditor emails the following reports plus any supporting documents to
both the applicant and AEA (energyaudit@aidea.org), including building name in subject line
within 30 days of completing the audit:
a. Energy Audit Report in format provided by the Authority
2017 USDA – AEA Commercial Building Energy Audit Program Guidelines, March 30, 2018 Page 5
b. Energy Audit Report Summary Form in format provided by the Authority
c. Photographs
d. Other Supporting Material
e. AKWarm-C file
7. Authority reviews documents and pays energy auditor: The Authority will review reports for
quality and completion. If documents are acceptable, the Authority will pay the auditor within
30 days of receipt of approved deliverables.
8. Applicant implements energy efficiency measures: Implement at least some of the
recommended low- and no-cost energy efficiency measures within one year of audit report; the
Authority will provide assistance in identifying financing options for implementation of other
recommendations.
9. Applicant responds to survey one year after audit: The applicant provides information needed
to respond to a survey the Authority will conduct one year after the audit has been completed.
How Applicants Will Be Selected
Applications will be reviewed for meeting the eligibility requirements for buildings, applicants,
and the required commitments described above. Ineligible applicants will not be considered
further and will be notified by email.
Applications will be evaluated for the cost of energy in the community in which they are located.
Buildings that operate in high cost energy communities will be given more points in the scoring
process. High cost energy communities are defined as those with cost of power that is at least
twice the PCE base rate which is the weighted average cost of power in Anchorage, Fairbanks
and Juneau.
Applications will be reviewed to ensure geographic distribution and the types of buildings
served.
Consideration of the number of eligible applicants within communities for which the Authority
will fund the auditor’s travel. The Authority will pay for travel costs for auditors travelling more
than 50 miles by car or to a community which is not connected to the road system. There must
be at least two eligible buildings from these qualifying communities for any applicant and/or
building from that community to be considered. Paying for auditor travel for one energy audit
is not cost effective for the State or for the auditor. Applicants are encouraged to reach out to
owners of other eligible buildings to ensure that there are at least two buildings in each
community.
If all other application criteria are equal applications will be ranked on a first come first serve
basis.
The application period will be open through September 30, 2018 or until funds are depleted.
Eligible applications will be reviewed once monthly and awarded funding until funds are
depleted.
If available funding is not fully committed after the application period, remaining funding will be
available to add eligible buildings in rural communities when auditors are on site.
Completion of Program
Applicants who do not follow the program guidelines or who do not agree to the required commitments
will not have an energy auditor dispatched to perform an energy audit on their building(s). This includes
2017 USDA – AEA Commercial Building Energy Audit Program Guidelines, March 30, 2018 Page 6
any selected applicants who do not submit payment to AEA to cover the required 25% of total audit
cost. Selected applicants must submit payment for 25% of audit cost prior to the audit and no later than
September 30, 2018. Any forfeited funding will be rotated to other eligible applicants.
Guarantees
The Authority requires eligible auditors to meet minimum certification and professional standards,
however the Authority provides no guarantee of the quality of the energy audits provided or a
guarantee of the savings stated in the audit reports.
Some energy audit firms may be willing to provide certain warranties or guarantees of energy savings,
though the energy savings guarantees may increase the cost of the energy audit. Beyond the ASHRAE
Level I+ energy audit, the content of the agreement between the energy audit firm and the applicant is
between those two entities, and the Authority shall not be a party to that agreement. The Authority’s
only role is to provide funding, up to a limit, for qualifying energy audit services as described in this
document.
Elements of the Level I+ Energy Audit
The energy audit completed by the qualified energy auditor selected by the Authority shall meet
ASHRAE commercial energy audit standards and be more comprehensive than an ASHRAE Level I,
including the elements described below. In addition to the typical major systems assessments common
in commercial energy audits, auditors under this program are required to examine and report on other
often overlooked energy efficiency opportunities. Beyond these minimum requirements, applicants may
work with the energy auditor to focus more attention on certain systems of interest and/or to request a
complete ASHRAE Level II audit. Any costs associated with work beyond the ASHRAE Level I+ audit must
be paid directly from the building owner to the energy auditor. It is the applicant’s responsibility to
provide records, information and building access to the energy auditor so that they can perform the
energy audit.
1. Energy Audit Report
A Level I+ energy audit report documenting and providing details on findings of the on-site
energy audit will be provided to the building owner and to the Authority by the auditor within
30 days of completing the audit.
The Level I+ audit report will include recommendations for low-cost and no-cost energy
efficiency improvements including operational adjustments and occupant behavioral changes,
as well as capital projects. The audit will also identify areas where a more comprehensive energy
audit may provide information needed to further decrease energy usage. The building owners
should gain enough information to make low-cost and no-cost improvements as well as
guidance about prioritizing higher cost, more in-depth energy efficiency retrofits. Specifically,
the report will include the following:
a. Energy Use History
Documentation of energy use history for at least two years prior to the audit date, and
preferably more, as provided by the building owner.
b. Audit and Documentation of all Major Building Systems
2017 USDA – AEA Commercial Building Energy Audit Program Guidelines, March 30, 2018 Page 7
i. Heating system, ventilation system, and/or air conditioning
ii. Lighting (indoor and outdoor; equipment and controls; lighting level and
distribution; and an assessment of after-hours lighting)
iii. Electrical equipment (motors, pumps, equipment, plug loads, appliances)
iv. Specialized equipment (walk-in freezers, kitchen equipment, fan hoods, compressed
air systems, etc.)
v. Domestic water heating
vi. Building envelope
vii. Energy conservation: Employee or building user behavior
c. Energy Efficiency Opportunities
i. After-Hours
Auditors shall obtain information about the building’s usage during hours of operation
and during after-hours to determine whether energy savings opportunities exist after
hours.
ii. Energy Conservation
Auditors shall learn about the human factors of energy use in the building and
prescribe energy conservation measures. Auditors are encouraged to provide hands-
on training/education to building users in conjunction with the building’s contact
and/or energy team.
iii. Plug Loads
Auditors shall record energy use patterns of relatively smaller plug loads such as
computers, printers, coffee makers, vending machines, domestic refrigerators,
electronics, etc., and prescribe EEMs or ECMs to reduce their energy usage.
2. Energy Audit Report Summary Form
The energy audit report summary consists of a spreadsheet format summary which includes
sections for building information, utility bill history, and a summary of recommendations. The
summary of recommendations section contains one row for every energy efficiency measure
recommendation, including estimated implementation cost, energy savings, cost savings, simple
payback, and similar information to inform the building owner’s decision-making process
regarding implementation. The recommendations will be numbered and tie back to the energy
audit report. Auditors are required to complete this worksheet and provide it to the building
owner and the Authority with the energy audit report.
3. Photographs
Photographs shall be included in the audit report, with at least one exterior photograph of the
building. Photographs of buildings taken as a part of this program become the Authority’s and
may be reused for related or unrelated purposes.
2017 USDA – AEA Commercial Building Energy Audit Program Guidelines, March 30, 2018 Page 8
4. Other Supporting Materials
The auditor shall also submit to the Authority and building owner any materials used to support
the energy audit findings such as data log files, and spreadsheets of all calculations.
5. AKWarm-C file
Auditors are required to complete an AKWarm-C file, which is a software used by energy
auditors to determine the energy efficiency of Alaska small to medium size commercial
buildings, based on its heating and air handling systems, building envelope, and foundation. The
AKWarm-C file contains general building information and characteristics, recommended energy
efficiency improvements and the modelled estimated savings in energy and cost associated with
those measures. The auditor will submit the AKWarm-C file directly to the Alaska Retrofit
Information System (ARIS) and the Authority at the same time the energy audit report and
report summary are submitted. This report may be substituted upon approval of the Authority.
Elements of the Energy Assessment
A building owner may opt for an energy assessment as required to be eligible for a USDA REAP Energy
Efficiency Improvement Project grant in lieu of the Energy Audit Report described above. The energy
assessment will include the following elements necessary to apply for a USDA REAP Energy Efficiency
Improvement Project grant:
1. Situation Report
The report shall include a narrative description of the existing building and/or equipment, its
energy system(s) and usage, and activity profile; and the average price per unit of energy
(electricity, natural gas, propane, fuel oil, renewable energy, etc.) paid by the customer for the
most recent 12 months, or an average of 2, 3, 4, or 5 years, for the building and equipment
being evaluated. Any energy conversion shall be based on use rather than source.
2. Potential Improvement Description
A narrative summary of the potential improvement and its ability to reduce energy consumption
or improve energy efficiency.
3. Technical Analysis
Giving consideration to the interactions among the potential improvements and the current
energy system(s), the analysis shall include the following information:
(i) For the most recent 12 months, or an average of 2, 3, 4, or 5 years, prior to the date the
application is submitted, provide both the total amount energy used and the total
cost of energy used for the original building and/or equipment, as applicable, for
each improvement identified in the potential project. In addition, provide for each
improvement identified in the potential project an estimate of the total amount of
energy that would have been used and the total cost that would have been incurred
if the proposed project were in operation for this same time period.
(ii) Document baseline data compared to projected consumption, together with any
explanatory notes on source of the projected consumption data. When appropriate,
show before-and-after data in terms of consumption per unit of production, time, or
area.
2017 USDA – AEA Commercial Building Energy Audit Program Guidelines, March 30, 2018 Page 9
(iii) Provide an estimate of Simple Payback, including all calculations, documentation, and
any assumptions.
4. Photographs
Photographs shall be included in the energy assessment, with at least one exterior photograph
of the building. Photographs of buildings taken as a part of this program become the Authority’s
and may be reused for related or unrelated purposes.
5. Other Supporting Materials
The auditor shall also submit to the Authority and building owner any materials used to support
the energy audit findings such as data log files, and spreadsheets of all calculations.
6. AKWarm-C file
Auditors are required to complete an AKWarm-C file, which is a software used by energy
auditors to determine the energy efficiency of Alaska small to medium size commercial
buildings, based on its heating and air handling systems, building envelope, and foundation. The
AKWarm-C file contains general building information and characteristics, recommended energy
efficiency improvements and the modelled estimated savings in energy and cost associated with
those measures. The auditor will submit the AKWarm-C file directly to the Alaska Retrofit
Information System (ARIS) and the Authority at the same time the energy audit report and
report summary are submitted.
Program Changes
The program may undergo changes both prior to the application deadline, and possibly while underway.
Please be sure to check back to the program web site for the most recent versions of this document and
other applicable documents.
Additional Information
All current forms and information about this program will be posted on AEA’s web site
www.akenergyauthority.org/Efficiency/CommercialAudit. Any other questions and comments may be
addressed to:
Alaska Energy Authority
Attn: Betsy McGregor
Project Development and Environmental Manager
813 West Northern Lights Blvd.
Anchorage, AK 99503-2495
energyaudit@aidea.org
P (907) 771-3000
P 1-888-300-8534 (in state only)