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HomeMy WebLinkAboutRes 2013-02 CBEA Resolution - Final Signed1 | Page  CBEA Board Memo  MEMORANDUM TO: Board of Directors Alaska Energy Authority FROM: Sara Fisher-Goad Executive Director DATE: April 25, 2013 RE: Commercial Building Energy Audit (CBEA) Program Regulations Staff recommends the adoption of the attached regulations which will enable the Alaska Energy Authority (“AEA” or “Authority”) to implement and administer the commercial building energy audit grant program. A. Commercial Building Energy Audit (CBEA) Background The Commercial Building Energy Audit (CBEA) program is an AEA grant program established under AEA’s general statutory authority AS 44.83.080. In 2010 the Alaska Legislature passed and the Governor signed HB306 (Chapter 82, SLA 2010) which included a statewide goal of reducing per capita consumption by 15% through energy efficiency. CBEA will help the state achieve its 15% goal by addressing energy consumption in private commercial buildings throughout the state. The primary purpose of CBEA is to lower the cost of energy in private commercial buildings through grants to help with the cost of receiving an energy audit detailing appropriate energy efficiency measures and their associated projected savings. Private commercial buildings represent the largest underserved market sector for efficiency programs and services. Non-residential buildings use more than half of the energy consumed in buildings in Alaska and private commercial property represents an estimated 75% of the non-residential market. There is great potential for energy savings in this sector. The Authority has run similar programs using federal funding in 2010 and 2011 with some work continuing into 2012. This program used federal funds under the American Recovery and Reinvestment Act of 2009 (ARRA). Results from the program funded through ARRA include:  146 private commercial building received energy audits  Audit findings show estimated potential of 30% annual reduction in energy use through implementation of economic efficiency measures  Average simple payback periods of around 6 years for package of efficiency measures that produced 30% energy use reduction Board of Directors Memo April 25, 2013 Page 2 of 2    B. CBEA Proposed Regulations A new article will be added to the Authority’s regulations in 3 AAC 108 to provide procedures and details regarding the CBEA program. The proposed CBEA program will provide grants for energy audits in private commercial buildings. Eligible applicants for CBEA grants is any non-public owner of a commercial building located in Alaska. The commercial building may be operated as either a non-profit or for- profit. An eligible audit under the CBEA program must meet or exceed the standards of the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) level II energy audit and be administered by an Association of Energy Engineers certified energy auditor or certified energy manager, or and AEA approved equivalent. The Authority will rank applicants based on a criteria described in the regulations in section 3 AAC 108.550. Description of Regulations and Changes. The following describes the regulations, including changes the Authority made to the initial publicly noticed draft regulations. 3 AAC 108.500. This section describes the purpose of the program, to provide financial assistance to reimburse owners of commercial building in Alaska for the cost of a building energy audit. 3 AAC 108.510. This section describes eligible applicants. 3 AAC 108. 520. This section describes eligible audit and certification requirements of the energy auditors. 3 AAC 108.525. This section describes the grant amounts in a table with reimbursement amounts ranging from $1,800 to $7,000 based on size and complexity of the building. 3 AAC 108.530. This section describes the application and solicitation period including public notice. 3 AAC 108.540. This section describes the grant application requirements. The application requirements are simple, including basic building information like size and location, proof of ownership and site control, utility records or self-reported energy use history if bills are not available, and a statement of commitment to implementing some or all measures recommended in the audit that are deemed economic by the applicant. 3 AAC 108.550. This section describes the grant evaluation process including ranking criteria. 3 AAC 108.560. This section describes grant award and notice to proceed. Board of Directors Memo April 25, 2013 Page 2 of 3    3AAC 108.570. This section describes project implementation and grant recipient responsibilities. Grant recipients are responsible for hiring the energy auditor, being present for the audit, providing building energy and other use information required for the audit, ensuring that the audit is complete, paying the auditor, submitting all documents required for a request for reimbursement and reporting required information to the Authority. 3 AAC 108.580. Describes the process of reconsideration for applicants who are denied funding. 3 AAC 108.590. Definitions of terms used in the regulations. C. Public notice and comment Public notice was published by newspaper and on the State of Alaska Online Public Notice System. The notice was also sent to all members of the Alaska Energy Efficiency Partnership mailing list and forwarded on to individual interested parties. A public hearing was held on March 22, 2013, at which no person provided comment. The public notice period closed March 28, 2013. The one comment timely received by the Authority is provided in an attached report. The Authority did not consider one comment e-mailed to the Authority after the public notice period had closed. D. Conclusion Staff recommends adoption of the proposed CBEA regulations. The CBEA program serves important public purposes to meet the 15% energy savings through efficiency by 2020 goal and to reduce the energy costs paid by Alaska businesses. Attachments Public comment and response matrix  Commercial Building Energy Audit (CBEA) Comment Matrix   Comment Submitted by Response Recommend that state‐funded energy audits require a qualified Energy Rater, rather than a Certified Energy Auditor or Certified Energy Manager. Wynne Auld, Energy Action, Community Energy Services No change to regulations. Current regulations are written to ensure that private commercial business owners, can have a high level of confidence about the projected annual energy savings outlined in audit documents. The audit and certification requirements are widely accepted within the industry and are the same as those used by the Alaska Housing Finance Corporation. Alaska businesses need to be confident that projected savings will be realized if they are going to invest their own capital into efficiency improvements.   ALASKA ENERGY AUTHORITY RESOLUTION NO. 2013-02 RESOLUTION OF THE ALASKA ENERGY AUTHORITY ADOPTING COMMERCIAL BUILDING ENERGY AUDIT PROGRAM REGULATIONS FOR THE AUTHORITY WHEREAS, the purpose of the Commercial Building Energy Audit (CBEA) program is to lower the cost of energy in private commercial buildings, Alaska businesses, through assisting with the cost of energy audits and to help meet the state goal of 15% energy savings through efficiency by 2020. The 15% goal was established in HB306 passed by the Alaska Legislature and signed by the Governor in 2010.  WHEREAS, the Authority must adopt regulations for the Authority to establish, implement and administer the CBEA program, and make CBEA grants; WHEREAS, the Authority has provided public notice of the proposed regulations, solicited public comment through April 1, 2013, conducted a public hearing on March 22, 2013, and otherwise followed procedures required by the Administrative Procedures Act; WHEREAS, the time period for public comment has passed, and the Authority has reported about the oral and written public comment received and the consideration the Authority gave to each public comment received; and WHEREAS, the proposed regulations attached as Exhibit A reflect the originally proposed regulations, as revised by the Authority in response to public comments and further evaluation by the Authority. NOW, THEREFORE, BE IT RESOLVED BY THE ALASKA ENERGY AUTHORITY AS FOLLOWS: Section 1. The Board of Directors of the Authority adopts as regulations of the Authority 3 AAC 108.500 - 3 AAC 108.590, a copy of which is attached as Exhibit A. Section 2. The Executive Director of the Authority is authorized and directed to file the regulations with the Lieutenant Governor, and take other steps necessary or desirable under the Administrative Procedures Act to make the regulations become effective. Section 3 . approval. This Resolution shall become effective immediately upon its passage and DATED at Anchorage, Alaska , th is 251h day of April, 2013. Resolution No . AEA 2013-02 Page 2 of 2