HomeMy WebLinkAboutRes 2013-05 Readopt CBEA RegulationsTO:
FROM:
DATE:
SUBJECT:
MEMORANDUM
Board ofDirectors
Alaska Energy Authority
Sara Fisher-Goad (J ~ /'L-~
Executive Director {fJv
July 25,2013
Commercial Building Energy Audit (CBEA) Program Regulations
The Regulations Attorney made a number of technical edits to the original regulations
during his review. See Exhibit A for description of edits. Based on these edits, the
Regulations Attorney recommended that AEA re-adopt regulations to avoid potential
legal challenges to the validity of the regulations.
The changes are technical in nature and do not substantively change the program so they
do not require an additional public comment period . 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 description ofthe program is attached as Exhibit B .
a ke nergya u t hority.org
813 West Northern lights Boulevard An chorage. Alaska 99503 T 907 771.3000 Toll Free (Alaska Only) 888.300 8534 F 907.771 .3044
Exhibit A
Summary of edits
Language changes that appear several places in the document:
Consistent with state drafting conventions for legislation and regulations, I used
"the state" instead of "Alaska". The one exception is where I used the term of art
"Alaska marine highway system" in 3 AAC 108.520(b)(2).
Because the phrase "Association of Energy Engineers certified energy auditor or
certified energy manager" is a term of art with a definition in 3 AAC 108.590, the
document was edited to use the full term completely rather than shorthand
synonym phrases.
Page 2, 3 AAC 108.525(a): Changed language about square footage of buildings from
“up to” to “not more than” and corrected typo in last size category.
Page 1, 3 AAC 108.520(1): For consistency, "Level II energy audit" was changed to
"Level II or higher energy audit", to match the term of art defined in 3 AAC 108.590(1).
Pages 3 - 4, 3 AAC 108.550(c): To make sure that terminology is consistent across the
regulations, "building energy type" was changed to "building type" in one sentence in this
subsection.
Page 4, 3 AAC 108.550(c)(3): Change the building type “retail” to “mercantile” to be
consistent with language used in the Commercial Building Energy Consumption Survey
which is referenced in the regulations.
Page 6, 3 AAC 108.590: Inserted a definition of "grant" to the definitions section simply
to mean a grant awarded under 3 AAC 108.500 - 3 AAC 108.590.
Exhibit B
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
Attachments
Copy of clean regulations presented for adoption
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3 AAC 108 is amended by adding new sections to read:
Article 5. Commercial Building Energy Audit Program.
Section
500. Purpose
510. Eligible applicants
520. Eligible energy audit
525. Grant amount
530. Public notice of application period; solicitation of applications
540. Grant application
550. Grant evaluation
560. Grant award and notice to proceed
570. Project implementation
580. Reconsideration
590. Definitions
3 AAC 108.500. Purpose. Subject to the availability of appropriations, the authority may provide
financial assistance under 3 AAC 108.500 – 3 AAC 108.590 (commercial building energy audit program)
to reimburse the owners of commercial buildings in the state for the cost of energy audits of their
commercial buildings. (Eff. _________/_________/_____, Register ________)
Authority: AS 44.83.080
3 AAC 108.510. Eligible applicants. Any non-public owner of a commercial building located in
the state may apply for and receive a grant for reimbursement of up to the full cost of a commercial
energy audit under 3 AAC 108.500 – 3 AAC 108.590. An eligible applicant may operate the applicant’s
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commercial building on either a for-profit or non-profit basis. (Eff. _________/_________/_____,
Register ________)
Authority: AS 44.83.080
3 AAC 108.520. Eligible energy audit. A commercial building energy audit program grant may
be awarded to an eligible applicant for up to the total cost of a commercial building energy audit that
(1) meets or exceeds the standards of an American Society of Heating, Refrigerating and
Air-Conditioning Engineers Level II or higher energy audit; and
(2) is administered by an Association of Energy Engineers certified energy auditor or
certified energy manager, or authority-approved equivalent. (Eff. _________/_________/_____, Register
________)
Authority: AS 44.83.080
3 AAC 108.525. Grant amount. (a) The amount of an approved grant will be determined under
the schedule in this subsection based on the square feet of building size and whether the building has
heating only or has heating, ventilation, and air conditioning, with adjustments the authority makes under
(b) of this section:
Square feet
Buildings
with heating
only
Buildings with heating,
ventilation, and air
conditioning
Not more than 2,500 $1,800 $2,100
Not more than 5,000 $1,950 $2,325
Not more than 10,000 $2,300 $2,750
Not more than 15,000 $2,650 $3,175
Not more than 20,000 $3,000 $3,600
Not more than 30,000 $3,700 $4,450
Not more than 40,000 $4,400 $5,300
Not more than 50,000 $5,100 $6,150
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More than 50,000 $5,800 $7,000
(b) The authority may adjust as follows the grant amount determined under the schedule in (a) of
this section:
(1) the actual amount of any grant may not exceed the actual cost of the energy audit;
(2) the amount of a grant may be increased to include reimbursement of up to the actual
cost of travel required to complete the energy audit if an Association of Energy Engineers certified energy
auditor or certified energy manager, or authority-approved equivalent, is not available within 100 miles
by road or the Alaska marine highway system of the applicant’s commercial building;
(3) the amount of a grant may be decreased based upon the level of program funding
available. (Eff. _________/_________/_____, Register ________)
Authority: AS 44.83.080
3 AAC 108.530. Public notice of application period; solicitation of applications. (a) The
authority will publish public notice of the application period on the authority’s website, and on the Alaska
Online Public Notice System (AS 44.62.175). The authority may also publish notice on or through other
media.
(b) In the public notice, the authority will request applications and include a description of the
application requirements, including the date, time, place, and method for submitting applications to the
authority. (Eff. ___/___ /_______, Register ___)
Authority: AS 44.83.080
3 AAC 108.540. Grant application. The authority will require the applicant to provide the
following documents and information regarding the commercial building:
(1) proof of private ownership and site control;
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(2) utility bills for the prior 12 months’ energy use, or self-reported statements certified by
the applicant if utility bills are not available;
(3) building location and size;
(4) building type as described in 3 AAC 108.550(c);
(5) a statement of commitment to implementing some or all efficiency and conservation
measures that are recommended by the energy audit and that are determined economic by the applicant.
(Eff. ___/___ /_______, Register ___)
Authority: AS 44.83.080
3 AAC 108.550. Grant evaluation. (a) The authority will evaluate and rank grant
applications, with priority for funding based upon each of the following criteria:
(1) whether the applicant and commercial building meet the eligibility requirements;
(2) the annual energy use intensity of the commercial building, as described in (c) of this
section;
(3) geographical distribution of grants;
(4) whether cost savings and efficiencies may be obtained if the energy audit is
conducted in conjunction with another state program because the commercial building is located in a
community where one or more Association of Energy Engineers certified energy auditors or certified
energy managers or authority-approved equivalents will travel under 3 AAC 108.400 – 3 AAC 108.499
(village energy efficiency program) or another state program.
(b) To the extent applicants are evenly ranked under (a) of this section, grants will be awarded on
a first-come, first-served basis.
(c) The authority will determine a commercial building’s annual energy use intensity by
evaluating the amount of energy used by a building on a per square foot basis. The authority will give
priority to an applicant whose commercial building uses more energy per square foot compared to
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commercial buildings of other applicants within the same category of building type. The authority will
classify a commercial building into one of the following five categories of building type, with each
individual building type defined as set out in the building type definitions section of the Commercial
Building Energy Consumption Survey:
(1) food sales, food service, and inpatient healthcare;
(2) lodging, public assembly, outpatient healthcare, and office;
(3) mercantile, service, and education;
(4) religious worship, and warehouse and storage;
(5) other. (Eff. _________/_________/_____, Register ________)
Authority: AS 44.83.080
3 AAC 108.560. Grant award and notice to proceed. The authority will send a notice to
proceed after an applicant has been selected for a grant. (Eff. _________/_________/_____, Register
________)
Authority: AS 44.83.080
3 AAC 108.570. Project implementation. The grant recipient is responsible for each of the
following project activities after receiving a notice to proceed:
(1) hiring an energy auditor and notifying the authority of the name and estimated date of
the energy audit;
(2) being present for the energy audit;
(3) providing utility bill data and building use information;
(4) ensuring completion of the energy audit in a reasonable amount of time;
(5) paying the energy auditor after acceptance of the auditor’s invoice;
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(6) ensuring that the auditor submits by electronic mail the audit report and energy use data
directly to the authority program manager;
(7) rating the service of the energy auditor, and submitting the rating to the authority;
(8) submitting a request for grant reimbursement with a copy of the invoice paid and any
other documentation the authority determines necessary. (Eff. _________/_________/_____, Register
________)
Authority: AS 44.83.080
3 AAC 108.580. Reconsideration. (a) An applicant whose application is denied may request
reconsideration to the executive director of the authority. The request for reconsideration must be in
writing, must state the basis for reconsideration, and must be received by the authority not more than 10
days after denial.
(b) The executive director on reconsideration may accept or overturn the decision to deny the
application, or request additional information from the applicant before making a decision. The decision
of the executive director on reconsideration is the final agency decision. If the executive director fails to
issue a decision within 30 days, the request for reconsideration is considered denied, unless the executive
director extends the time for reconsideration. (Eff. ___/___ /_______, Register ___)
Authority: AS 44.83.080
3 AAC 108.590. Definitions. In 3 AAC 108.500 – 3 AAC 108.590, unless the context requires
otherwise,
(1) "American Society of Heating, Refrigerating and Air-Conditioning Engineers Level II or
higher energy audit" means an energy audit that complies with guidance provided by the American
Society of Heating, Refrigerating and Air-Conditioning Engineers in the publication Procedures for
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Commercial Building Energy Audits, Second Edition (2011), adopted by reference, for a Level II or
higher energy audit;
(2) "Association of Energy Engineers certified energy auditor or certified energy manager"
means an individual with the Certified Energy Auditor (CEA) or Certified Energy Manager (CEM)
certification offered through the Association of Energy Engineers.
(3) "building type definitions section of the Commercial Building Energy Consumption
Survey" means the section designated "Building Type Definitions" in the United States Department of
Energy, Energy Information Administration’s Commercial Building Energy Consumption Survey, revised
as of 2003; the building type definitions section of the Commercial Building Energy Consumption Survey
is adopted by reference.
(4) "commercial building" means a building that is
(A) located in the state,
(B) privately owned, including a building owned by a non-profit organization; and
(C) used for commercial purposes, including office buildings, restaurants, grocery stores,
warehouses, retail, medical offices, hospitals, hotels, lodges, places of worship, and buildings
used for industrial, manufacturing, or other similar commercial uses;
(5) "grant" or "commercial building energy audit grant" means a grant awarded under
3 AAC 108.500 – 3 AAC 108.590. (Eff. ___/___ /_______, Register ___)
Authority: AS 44.83.080
Editor’s note: A copy of the American Society of Heating, Refrigerating and Air-
Conditioning Engineers publication Procedures for Commercial Building Energy Audits, adopted by
reference in 3 AAC 108.590, is available for inspection at the offices of the Alaska Energy Authority, 813
West Northern Lights Boulevard, Anchorage, Alaska 99503. A copy of the publication may also be
obtained from the American Society of Heating, Refrigerating and Air-Conditioning Engineers at
ASHRAE Headquarters, 1791 Tullie Circle, N.E., Atlanta, GA 30329, and at
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http://www.ashrae.org/resources-publications/bookstore/procedures-for-commercial-building-energy-
audits.
A copy of the building type definitions section of the Commercial Building Energy
Consumption Survey, adopted by reference in 3 AAC 108.590, is available for inspection at the offices of
the Alaska Energy Authority, 813 West Northern Lights Boulevard, Anchorage, Alaska 99503. A copy of
the document may also be obtained from the United States Department of Energy, Energy Information
Administration, 1000 Independence Ave. SW, Washington D.C., 20585, and at
http://www.eia.gov/consumption/commercial/building-type-definitions.cfm.
ALASKA ENERGY AUTHORITY
RESOLUTION NO. 2013-05
RESOLUTION OF THE ALASKA ENERGY AUTHORITY ADOPTING
COMMERCIAL BUILDING ENERGY AUDIT PROGRAM
REGULATIONS FOR THE AUTHORITY
WHEREAS, the purpose of the Commercial Bu ilding Energy Aud it (CBEA) program is to
lower the cost of energy in private commercial bu i ld ings, Alaska businesses , through assisti ng
with the cost of energy aud its and to help meet the state goal of 15% ene rgy savings through
effic iency by 2020. The 15% goal was establ ished in HB306 passed by the Alaska Leg islature
and signed by the Governor in 2010.
WHEREAS , the Authority on April 25 , 2013, adopted regu lations for the Authority to
establish , implement and administer the CBEA program , and make CBEA grants ;
WHEREAS , the Department of Law, during the regulation review process , made a number
of non -substantive modifications to the adopted regulations , leading to a recommendation that
the Authority re-adopt t he regulations.
NOW, THEREFORE, BE IT RESO LVED BY THE ALASKA ENERGY AUTHORITY AS
FOLLOWS :
Section 1. The Board of Directors of the Authority re -adopts as regula t ions of the
Authority 3 AAC 108 .500 - 3 AAC 108.590, a copy of wh ich is attached as Exhibit A.
Section 2 . The Executive Director of the Authority is authorized and d irected to file the
regulations with the Lieutenant Governo r, and take other steps necessa ry or desirable under the
Administrative Procedures Act to make t he regulations become effective.
Section 3 .
approval.
Th is Resolution shall become effect ive immediately upon its passage and
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