Loading...
HomeMy WebLinkAboutWisconson energy conservation State Plan 1993WISCONSIN DEPARTMENT OF ADMINISTRATION DIVISION OF ENERGY AND INTERGOVERNMENTAL RELATIONS WISCONSIN ENERGY BUREAU INSTITUTIONAL CONSERVATION PROGRAM WISCONSIN STATE PLAN REVISED SEPTEMBER,1993 TABLE OF CONTENTS 2/19/93 Federal Register 10 CFR . 455.Chapter and Paragraph Headings Abbreviations 1.STATE PLAN DEVELOPMENT 20(a)INVOLVEMENT OF PROGRAM PARTICIPANTS ICP Advisory Team Individual Contacts 20(p)COORDINATION WITH STATE AGENCIES Department of Health and Social Services Department of Industry,Labor &Human Relations. 130(b)Department of Public Instruction State Historical Society of Wisconsin Public Service Commission of Wisconsin and Class A Utilities 20(j).DOE GRANTS TO STATE FOR TECHNICAL ASSISTANCE, PROGRAM ASSISTANCE AND MARKETING DISTRIBUTION OF APPROVED STATE PLAN 2.ELIGIBILITY 2 APPLICANTS 20(m) 20(s)ENERGY CONSERVATION MEASURES 20u)1) 20(u)(2) 20(u)(3) 62 TECHNICAL ASSISTANCE REPORTS 20(s) 20(q) 20(w)CREDITS 20(q)WWWNNY 2/19/93 Federal Register 10 CFR 455.Chapter and Paragraph Headings 3.ALLOCATION OF FUNDS 20(x)BUILDING TYPES 132 FINANCIAL HARDSHIP Financial Hardship Criteria for Schools Financial Hardship Criteria for Hospitals 4.GRANT APPLICATION SOLICITATION AND SUBMITTAL 20(c)GRANT APPLICATION SOLICITATION GRANT APPLICATION SUBMITTAL 20(0) 20(s) 20(k)Procedures for Submitting TA Grants Procedures for Submitting ECM Grants APPLICANT ASSURANCES 131 5.GRANT APPLICATION REVIEW AND RANKING RANKING TECHNICAL ASSISTANCE GRANT APPLICATIONS RANKING ENERGY CONSERVATION MEASURE APPLICATIONS Payback Use of Renewable Energy Sources Types and Quantities of Energy to be Saved Quality of the TA Report Buildings Having No Previous Grant SCORING PROCESS FORWARDING TA AND ECM GRANT APPLICATIONS TO DOE 20(h)ENCOURAGEMENT OF RENEWABLE ENERGY SYSTEMS |o 2/19/93 Federal Register 10 CFR 455.Chapter and Paragraph Headings 6.REPORTING,MONITORING AND EVALUATION 113 REPORTING REQUIREMENTS Technical Assistance Grantees Energy Conservation Measure Grantees - Energy Bureau Reporting QUALITY ASSURANCES 111 Technical Assistance Reports 113(b)(2) Energy Conservation Measure Grants PUBLICATIONS APPENDICES Advisory Team Members ICP Calendar of Events Energy Use Evaluation (EUE) ECM and TA Grant Application Guide to Writing a TA Report Applicant Assurances2MOOW>19 20 DEIR: DOE: ECM: EUE: ICP: kWh: MMBtu: O&M: SF: TA: ABBREVIATIONS 'Division of Energy and Intergovernmental Relations U.S.Department of Energy Energy Conservation Measure Energy Use Evaluation Institutional Conservation Program kilowatt-hour Millions of British thermal units Operations and Maintenance Square Foot Technical Assistance iv 1.STATE PLAN DEVELOPMENT AND DISTRIBUTION The Wisconsin ICP state plan has been extensively revised as a result of the changes in federal policy described in the February 19,1993 Federal Register.The Table of Contents,pp.i-iii, includes a column listing the sections of the Federal Register in which new policy requires or allows changes to the state plan.These section numbers correlate with the paragraphs in the state plan which contain the new state policy. Many of the basic definitions and program regulations are described in the Federal Register,so they are not included here.In this document,we concentrate on the policy areas in which states have the flexibility to decide among a number of policy alternatives. The initial draft of this plan was written by the ICP staff.The draft was circulated to the director of the Energy Bureau,the conservation section chief and the staff of the DOE Chicago Support Office.This final version reflects their comments and suggestions. INVOLVEMENT OF PROGRAM PARTICIPANTS [10 CFR 455.20(a)] Wisconsin has incorporated the views and concerns of program participants and individuals and agencies impacted by the program through several mechanisms,both formal and informal. Communication has been established and maintained primarily through an advisory team, individual contacts and coordination with state agencies.Ultimate authority for determining Wisconsin state policy in the ICP resides with the Energy Bureau. ICP Advisory Team Since the program began,the Energy Bureau has periodically assembled an advisory team to assist in setting policy and administering the program.The purpose of the team Is to provide constructive advice concerning program administration and to inform eligible institutions,through their representative organizations,of program opportunities.The team,with its broad representation,is a valuable resource for the expression of all points of view.Through it,the Energy Bureau can maintain effective communication with program participants. Wisconsin's updated plan for administering the Institutional Conservation Program has been developed with the participation of representatives of schools and hospitals.The original state plan was developed with the additional participation of units of local government and public care institutions.If congressional appropriations allow these building types to once again participate, they will be included on the advisory team. The 1993 ICP Advisory Team includes representatives of the following organizations: Wisconsin Department of Public Instruction Wisconsin Association of Independent Colleges and Universities Wisconsin Association of School District Administrators Wisconsin Association of Non-Public Schools Wisconsin Association of School Boards Wisconsin Hospital Association Wisconsin Vocational,Technical and Adult Education Board University of Wisconsin Engineering Extension Grantees:Madison Metropolitan School District Milwaukee Public Schools TA Analysts:Michaels Engineering RJ.Miller Individual Contacts Program participants are encouraged to communicate with program staff in the Energy Bureau. All Energy Bureau correspondence with building administrators and energy consultants has included names of contact persons,in order to facilitate open communication.Individual contacts are made in person and by telephone,maintaining a two-way flow of information between program staff and participants. COORDINATION WITH STATE AGENCIES [10 CFR 455.20(p)] Department of Health and Social Services (DH&SS) Wisconsin Administrative Rule HSS 124 requires that,for any remodeling or new construction, plans must be submitted prior to construction to the Bureau of Quality Compliance in DH&SS. The Energy Bureau will submit a list of grantees to DH&SS each cycle to ascertain eligibility. Department of Industry,Labor and Human Relations (DILHR) Through contacts with DILHR,the Energy Bureau has determined that certain plan review requirements apply to the program.Wisconsin Statutes,Chapter 101.12 provides for approval and inspection of public buildings and places of employment by DILHR as follows: 101.12 Approval and inspection of public buildings and places of employment and components. 1.The Department shall require the submission of essential drawings,calculations and specifications for public buildings,public structures and places of employment including the following components: a.HVAC and fire detection,prevention or suppression systems. b.Industrial exhaust systems. 2.Plans of said buildings,structures and components shall be examined for compliance with the rules of the department and a statement of the examination returned to the designer and owner before construction is started.Nothing in this section shall relieve the designer of the responsibility for designing a safe building structure or component. Accordingly,institutions whose grant applications for ECMs are approved must comply with these regulations prior to initiating the projects.Meeting these requirements is the responsibility of the building administrator and the project contractor.The Energy Bureau has no legally mandated role,but will inform program participants of these requirements in the ECM grant application. Department of Public Instruction (DPI) According to 10 CFR 455.130(b),the state's school facilities agency must review all TA and ECM grant applications for consistency with related state programs for educational facilities.DPI does not exercise regulatory authority over the construction programs of Wisconsin schools,and it has confirmed that it is not required to review TA and ECM grant applications.The Energy Bureau will submit a list of grantees to DPI each grant cycle to ascertain eligibility. State Historical Society of Wisconsin The Energy Bureau observes the requirements of the National Historic Preservation Act through informal procedural agreements with the Historic Preservation Division of the State Historical Society of Wisconsin.With few exceptions,buildings eligible for listing in the National Register of Historic Places are 50 or more years old. The Energy Bureau will submit a list of all ICP oil overcharge grantees with buildings that are over 50 years old.The State Historical Preservation Officer will ascertain if the building has historical architectural significance (36 CFR Part 60).If there are such buildings,the Energy Bureau will inform the officer of the approved projects for that building to determine if further investigation is necessary. Public Service Commission of Wisconsin and Class A Utilities Utilities offer a variety of energy conservation programs under the direction and review of the Public Service Commission of Wisconsin (PSC).Institutions are encouraged to contact their local utility to request assistance if available. DOE GRANTS TO STATE FOR TECHNICAL ASSISTANCE, PROGRAM ASSISTANCE AND MARKETING [10 CFR 455.20(j)] The new federal regulations governing the ICP allow states to receive up to 100 percent of their federal allocation for technical assistance,program assistance and marketing activities.Because the Energy Bureau has not received enough ICP applications to use all the available funds since Cycle 12,and because of staff turnover in the ICP,the Energy Bureau has elected not to apply for these types of grants in Cycle 16.The Stripper 1 oil overcharge funds which were set aside by the Joint Finance Committee for ICP use are considered non-federal funds and therefore qualify the Wisconsin ICP for technical assistance,program assistance and/or marketing grants. DISTRIBUTION OF APPROVED STATE PLAN Upon notification by the U.S.Department of Energy of approval of its state plan or any amendment to it,the Energy Bureau will publicize the approved plan or amendment as follows: 1.Distribute copies of the plan to: a.members of the program advisory team. b.energy consulting firms involved with the program. Any future amendments to the plan will be distributed in a similar fashion in order to assure that affected participants are aware of current program policies. 2.ELIGIBILITY APPLICANTS Schools and hospitals as defined in 10 CFR 455.2 are eligible for ICP grants.Applicants must have no plans for closing the building within 15 years from date of application. ICP funding is intended to be an incentive to implement ECMs that would otherwise not be funded.Therefore,projects in which ICP funds would be used to supplant other sources of funding are ineligible [10 CFR 455.20(m)]. ENERGY CONSERVATION MEASURES In ECM calculations,source electrical Btu must be calculated using the 11,600 Btu/kWh conversion factor.This does not apply to the calculation of the energy required to displace a kWh on-site [10 CFR 455.20(u)(1)]. All ECMs eligible for funding must have a simple payback period not less than 2 years nor greater than 10 years.In addition,the expected life of the ECM must be longer than its simple payback period [10 CFR 455.20(u)(2)]. Electric demand costs and savings must be included in the calculation of ECM payback periods. Simple payback calculations must be based entirely on net energy savings and changes in electrical demand [10 CFR 455.20(u)(3)]. In Wisconsin,ECMs which would replace or render obsolete a previously funded ECM are not eligible for funding unless the simple payback period for the previously funded ECM has passed. ECMs acquired through the use of alternative financing mechanisms (shared savings, performance-based contracting,energy services companies,etc.)may be eligible for use as the 'local match portion of an ECM grant if: -Applicant acquired prior approval from the Energy Bureau -An independent analyst conducts the TA study -All ECM costs are adequately documented -No maintenance,interest or monitoring costs are included in the ECM costs -A copy of the financing contract is provided to the Energy Bureau For ECM applications that receive utility rebates,the rebate is considered part of the owner's match and does not affect the ICP grant amount unless the rebate covers more than 50 percent of the total project cost.Rebate and grant funding together may not account for more than 100 percent of the total project cost. ECM applicants must have already implemented the O&M procedures recommended in the TA report or provide assurance in the application that the recommended O&Ms will be completed as of a specific date in the future but no later than prior to ECM project installation(s).If implementation of an O&M is not feasible,the applicant must provide a written,reasonable justification to the Energy Bureau. Institutions may submit grant applications for ECMs for which funds were awarded in earlier grant cycles but were never implemented.Projects which received any ICP reimbursement under the earlier grants,such as for design costs,are no longer eligible for ICP funding [10 CFR 455.20(s)]. Utility demand charge information must be provided for the previous July-June period if the institution pays any demand charge for the building in question. TECHNICAL ASSISTANCE REPORTS A TA report which meets all the requirements set forthin the most recent TA Guide mustaccompanyallECMgrantapplications[10 CFR 455.62]. If the original TA report on a building is not current,a TA Update which conforms to the requirements for updates described in the current TA Guide must accompany the ECM grant application [10 CFR 455.20(q)]. Institutions with buildings which were awarded TA funds in earlier grant cycles but never received ICP reimbursement are eligible for TA funds for such buildings [10 CFR 455.20(s)]. CREDITS [10 CFR 455.20(w)] ECM grant applications may include credit requests for TA report costs,TA Update costs and the costs of previously completed ECMs.The ICP grant amount may not exceed the cost of ECMs yet to be implemented,even if the credit requests exceed the cost of ECMs yet to be implemented. TA report credit may only be granted for TA reports that comply with all the requirements of the current TA Guide.The Energy Bureau and the DOE will apply the same criteria in determining the reasonableness of TA report costs as they would in a TA grant application. There is no minimum TA report age requirement to qualify fora TA Update credit.The institution and consultant should negotiate a reasonable TA Update cost based on the amount of work required.Ifa TA Update credit is requested,the ICP staff and the DOE Chicago Support Office will assess the reasonableness of the cost during their review of the grant application [10 CFR 455.20(q)]. The calculations for ECMs that are included in an ECM credit request must have been submitted to the Energy Bureau prior to ECM implementation.The institution must submit the applicable documentation with their funding application verifying the total cost and final date of installation of all ECM credit projects.In determining the eligibility of an ECM credit application,the simple payback is calculated based on actual cost and must meet the two to ten year requirement.In the ranking process,credit ECMs are treated in the same way as other ECMs.Reimbursement for credit ECMs is based on the actual cost rather than the estimated cost. 3.ALLOCATION OF FUNDS BUILDING TYPES The Energy Bureau will allocate funds for TAs and ECMs so that neither schools nor hospitals receive less than 30 percent of the funds.Hospital projects will be selected from the ranked list of all projects until 30 percent of the funds have been used.The same process will be used with schools.The remaining 40 percent of the funds will be allocated strictly on the basis of rank,with schools and hospitals competing equally for the funds. With the exception of institutions that qualify for hardship funding,ICP grants will be awarded at 50 percent of the total project cost,up to the building limit [10 CFR 455.20(x)]. The Energy Bureau has set the maximum ICP grant at $100,000 per building and $250,000 per institution,per cycle.Applicants are responsible for all costs over these limits.However,the limits will not apply if either schools or hospitals fail to request their required minimum of 30 percent of the available funds.In such cases,any funds remaining after an initial distribution within the limits will be allocated by increasing the grant amounts to 50 percent of each building's total project costs,proceeding down the ranked list until all available funds are allocated. The Energy Bureau shall make every effort to apply funds in the manner specified.In the event that insufficient applications are received before the deadline to use 30 percent of the available funds for hospitals,the state may recommend using the remaining funds for eligible school applications.In the event that insufficient applications are received before the deadline to use 30 percent of the available funds for schools,the state may recommend using the remaining funds for eligible hospital applications.In the event that insufficient applications are received before the deadline to use 10 percent of the available funds for financial hardship cases,the state may recommend using the remaining funds for eligible non-hardship applications. FINANCIAL HARDSHIP [10 CFR 455.132] Federal regulations limit the funds available for hardship cases to ten percent of the total state funds available each grant cycle.Hardship grants will cover up to 90 percent of the costs of eligible proposals up to a maximum grant of $100,000 per building or $250,000 per institution, per cycle.The additional financial assistance is to be provided only to the extent necessary to enable such institutions to participate in the program. The state is to determine the minimum amount of additional funding necessary to enable the applicant to participate in the program.Such determination will be based upon the criteria described in this section. Note:Since hardship funds are to be awarded only to institutions which cannot participate in the program at the normal 50 percent level,all hardship applicants must be aware that if hardship funds become depleted or are not available for any reason,their application will not be considered for a 50 percent grant. Financial Hardship Criteria For Schools The selection of criteria to measure financial hardship for public schools is more straightforward since the issue has been investigated by the Department of Public Instruction (DPI)in relation to the state school aids formula.Public schools,private schools and parochial schools that draw the majority of their students from the immediate community will be evaluated using DPI's "equalized valuation per student".The equalized valuation per student in each school district indicates the tax base that can be used to raise additional funds to implement TAs and ECMs.A school district with a low valuation per student would be less able to pay for an ECM than a school with a high valuation.The percentile rank of the school district in relation to other school districts will be calculated.This rank will be assigned to each applicant within a district.Applicants will be recommended for total funding percentages based upon their percentile rank.The correlations between percentile rank and total grant percentage are shown below,where the 100th percentile represents the lowest equalized valuation per student. Percentile Rank and Corresponding Grant Share Percentile Grant Share 99-100 90% 97-98 85% 95-96 80%© 90-94 75% below 90 50% The equalized valuation list is updated annually and the most recent list will be used in determining severe hardship.The list of hardship school districts is in the appendix of the current TA Guide. Public schools applying for hardship funds must include a statement describing their hardship status and reiterating that they would not be able to participate in the program at the normal 50 percent level. Private and parochial schools do not tax to meet operating and capital costs.However,equalized valuation is a legitimate measure of a community's wealth and can be applied to private and parochial schools that draw pupils and support from the community school district.Therefore,all K-12 schools will be evaluated using the equalized valuation per student for the public school district in which the school is located.If any private or parochial school can prove that it draws a majority of its students from a population different from that of the school district in which it resides,the Energy Bureau will adjust the ranking commensurate with that determination. Justifications should include the minimum funding level required to enable the institution to participate in the program. Private colleges and boarding schools usually draw a majority of their students from outside the school district in which they are located.These schools derive the majority of their income from tuition and endowments.Thus,the wealth of the community has little effect on the wealth of the school. Independent colleges and universities in need of hardship funds must prepare a specific funding level request,must attach documentation to the application explaining the facts of their situation, and must be willing to supply additional information if needed.A hardship review team, comprised of several persons familiar with the financial structure and problems of higher education facilities will be assembled to review each hardship application from this type of institution and determine eligibility status. Vocational Technical Adult Education centers (VTAE)generally are eligible for 50 percent matching grants through the program.If an individual school is unable to participate at the normal level,it must submit a specific hardship request with full documentation of need,and be willing to supply any additional information necessary to make an eligibility determination. Financial Hardship Criteria For Hospitals Although Wisconsin hospitals are regulated in a manner that allows them to recover costs for capital improvements,there may be some cases where a financial hardship exists. The Energy Bureau will use per capita income within the county in which the hospital is located as the measure of need for additional financial assistance.Ifa county's per capita income is below the federally established poverty levels,then hospitals in that county will be eligible for financial hardship funding.The percentage below the federal!level will determine the percentage added to the grant above the minimum 50 percent level.For example,if a county's average per capita income is 10 percent less than the federal poverty level,the hospital would receive a 60 percent grant.The maximum allowable grant will be 90 percent. 4,GRANT APPLICATION SOLICITATION AND SUBMITTAL GRANT APPLICATION SOLICITATION [10 CFR 455.20(c)] Once the DOE authorizes a new JCP grant cycle,the Energy Bureau will notify eligible institutions that ICP funds are available by sending a memo and a program brochure to each eligible institution in the state.It will also send notices to the Advisory Team members and other grantee organizations. The ICP staff will give presentations to potential grantees and grantee organizations on request throughout the year,time permitting.They will also provide information to and work closely with _ICP certified consultants,with the goal of increasing program awareness and the number of grant applications. GRANT APPLICATION SUBMITTAL The Energy Bureau has established procedures for submitting TA and ECM grant proposals. These procedures will be followed in each grant cycle,with modifications dictated by experience. Procedures for Submitting TA Grants 1.Request application materials,verification of applicant eligibility and grant information from the Energy Bureau. Complete the Energy Use Evaluation (EVE)on the building and determine,based on the information collected,whether the building has significant energy conservation potential. The EUE may be completed by anyone who has sufficient familiarity with the building's energy systems to accurately describe them.The ICP staff is available to offer guidance in this process and many of the ICP consultants are willing to help with the EVE for a small fee. The local utility may also be willing to help.The cost of completing the EUE is not eligible for reimbursement in the ICP [10 CFR 455.20(k,o)]. Solicit at least two bids from consultants on the current ICP Consultants List. Choose a consultant whose bid is most likely to be accepted by the institution if the grant is awarded.Use his/her bid as the basis for the anticipated cost of the TA report. Submit two copies of the EUE,the TA grant application,and the Applicant Assurances by the grant application deadline.Each copy must have original signatures. Respond to requests for further information from the ICP staff during the grant application review process. Procedures for Submitting ECM Grants 1.Request application materials,verification of applicant eligibility and grant information from the Energy Bureau. From an up-to-date TA report that conforms to all requirements of the current state plan and TA Guide,choose the ECMs which will be included in the ECM grant application.The TA report must include at least two ECMs.The ECM grant application has no minimum number of ECMs.The consultant and the ICP staff can provide guidance in this process. Submit two copies of the TA report,the ECM grant application,and the Applicant Assurances by the grant application deadline.Each copy must have original signatures. Respond to requests for further information from the ICP staff during the grant application review process. APPLICANT ASSURANCES [10 CFR 455.20(i)] In order to assure that all financial assistance will be expended in compliance with Wisconsin's ICP state plan and federal regulations,and in coordination with other state and federal energy 10 conservation programs,the Energy Bureau will require all applicants to sign the following assurances (ref.Appendix G): 1.GENERAL ASSURANCES of compliance with ICP rules 2.ASSURANCES -NON-CONSTRUCTION PROGRAMS (Standard Form 424B) 3.ASSURANCE OF COMPLIANCE -Nondiscrimination of Federally Assisted Programs(DOEF 1600.5) 4.CERTIFICATIONS REGARDING LOBBYING;DEBARMENT,SUSPENSION AND OTHER RESPONSIBILITY MATTERS;AND DRUG-FREE WORKPLACE REQUIREMENTS In addition,the Energy Bureau will monitor the TA and ECM grants as described in section 6 of this plan. 5.GRANT APPLICATION REVIEW AND RANKING [10 CFR 455.131] The first Energy Bureau review of an application will begin as applications are received.All applicants will be encouraged to communicate their questions or problems to the Energy Bureau prior to submitting their applications.In this way,the strongest possible proposals will be submitted.Any rejected applications will be accompanied by a written description of the reason(s)after all efforts to make the application acceptable have been exhausted. RANKING TECHNICAL ASSISTANCE GRANT APPLICATIONS The Federal Register requires the state to rank TA applications in descending priority based upon the building energy conservation potential,as determined by the Energy Use Evaluation. Wisconsin has been able to fund all TA applicants in every grant cycle except Cycle 10.When it becomes necessary to rank TA applicants,the Energy Bureau ranks each building using a combination of three criteria as follows: Criterion Points 1.Building's annual energy use per square foot (Btu/SF)75 2.Building's annual energy cost per square foot ($/SF)15 3.Energy conservation effort ' 10 Total possible TA score 100 11 The TA ranking formula is shown below.The subscript "a"refers to the building being ranked and "max"refers to the maximum value from all buildings in the same category in that grant cycle. TA score =BtwSFax75 ,S/SFax 15 Btu/SFmax $/SF max +Conservation Effort Score The Btu/SF measure was selected under the assumption that buildings with high energy use have a greater potential to conserve.These buildings are likely to be in poorer condition and waste a relatively larger amount of energy.Annual energy use per square foot is a good measure of consumption and receives the highest weight. The second criterion is the annual energy cost per square foot.Higher energy costs tend to indicate higher energy use and,thus,greater conservation potential.In addition,buildings with high energy costs have a greater incentive to conserve. The energy conservation effort score was included for several reasons.The first was to correct the bias against buildings where energy conservation improvements have already been installed. In such a building,the Btu/SF index would be lower than for a similar building where conservation management has not been instituted.The second reason was to recognize that building administrators who have begun energy conservation programs are more likely to successfully carry out additional conservation measures,thus enhancing the conservation potential for the building.The energy conservation effort score awards 10 points to buildings that have implemented a major conservation effort,defined as a project costing more than $5,000 for schools and more than $7,500 for hospitals. RANKING ENERGY CONSERVATION MEASURE APPLICATIONS [10 CFR 455.131(c)] The Federal Register.allows ECM ranking to be done on an ECM or a building basis.The EnergyBureauhaschosentorankonabuildingbasis.The federally-mandated ranking criteria are: 1.Payback calculated in accordance with 10 CFR 455.63. 2.The types and quantities of energy to be saved,including oil,natural gas,or electricity, in a priority as established in the state plan. 3.The types of energy sources to which conversion is proposed,including renewable energy. 4.The quality of the TA program report. 5.Other factors as determined by the state. In Wisconsin,the following criteria will be applied to each building: Criterion Points 1.Payback 50 2.Use of renewable energy sources (including wood)16 3.Types and quantities of energy to be saved 15 4.Quality of the TA report 14 5.Buildings having no previous ECM grant 5 Total possible ECM score 100 The formulas used in determining the score for each application were developed following the guidelines in the Federal Register.The Energy Bureau determined the weights. Payback (50 points) Payback will be determined by dividing the total cost for all proposed measures for the building by the net annual energy cost savings.In the formula,the subscript "a"refers to the applicant building and the subscript "min"refers to the minimum payback period for all buildings in the same category in that grant cycle. Payback score =Payback min x 50 Payback , Note:For any ECM other than the reduction of electric demand,the simple payback period shall be calculated using the net cost savings resulting from energy savings only,determined on the basis of current energy prices as defined by the Energy Bureau. Use of Renewable Energy Sources (16 points) Any building with a renewable energy project ECM that accounts for more than 50 percent of the cost of all proposed measures will receive 16 points.Renewable energy sources in Wisconsin include: biomass photovoltaic wind hydro waste solar thermal wood 13 Types and Quantities of Energy to Be Saved (15 points) This ranking criterion awards points based on the amounts and types of energy to be saved by the building's ECMs.In order to encourage savings of electricity and oil over other types of fuels,the Energy Bureau has assigned weighting factors to each fuel type [TO CFR 455.131].The ECM grant application will specify the total amount of energy used by the building in the previous year and the type of fuel and amount of energy to be saved annually from each proposed measure.The type of fuel to be saved is defined as the fuel type that accounts for the largest fraction of the measure's energy savings.The formula for determining the number of points awarded to a building for energy savings is: 5 (Si)(Wi) Energy Saving Points =:---Previous Year's Consumption (in MMBtu) i =The index of each ECM proposed for the building. S;=The amount of energy to be saved by the ith ECM in MMBtu. Wj =The weighting factor for the ith ECM,as determined by the type of fuel to be saved according to the following table: Fuel Type Weighting Factor,W Electricity 75 Coal 75 Oil 75 LP Gas 70 Natural Gas 60 Steam 60 Other.60 The maximum number of points for energy savings is 15.Applications that propose to reduce a building's energy use beyond the 15 point level would receive the maximum of 15 points. Quality of the TA Report (14 points) The Energy Bureau will award up to 14 points to each building based on the quality of the TA report in following four categories: 1.Description of the building and its energy-using systems. (2 points maximum) 2.Recommended operation and maintenance (O&M)improvements. (3 points maximum) 14 3.Identification,description and calculations for potential ECMs. (S points maximum) 4.Value as a total energy management planning tool. (4 points maximum) A TA report must receive a minimum of six TA quality ranking points to be eligible for an ECM grant. Buildings Having No Previous ECM Grant (5 points) To encourage participation by buildings that have never received an ECM grant,the Energy Bureau will add five points to the ECM score of all such buildings. SCORING PROCESS When it becomes necessary for the Energy Bureau to score TA applications,the following procedure will be followed.The pertinent scoring information (Btu/SF,$/SF,energy conservation effort)is available from the Energy Use Evaluation and TA grant application.The information is coded and entered into the computer.The computer then generates a priority list with scores for each applicant building. Funding recommendations for schools and hospitals will begin at the top of the list and proceed down until all funds have been allocated.The Energy Bureau intends to reserve up to the maximum allowable percentage of total funds each grant cycle for TA grants.The rationale for this policy is to assist a maximum number of participants through the TA process. The scoring procedures for ECM applications are essentially the same as for TA applications. After the grant applications have been reviewed as described in this section,the Energy Bureau will conduct a final review and computer scoring of the applicant buildings using information provided in the TA reports and grant applications.The Energy Bureau will evaluate proposals on the basis of the criteria described above. The Energy Bureau will create a spreadsheet which ranks buildings in descending priority. Applications for hardship funding will be ranked with the other applications.The highest ranked proposals will be recommended for funding,proceeding down the list until all available funds are expended.The Energy Bureau will make final determinations in the case of applications that are recommended for funding levels different from the levels requested.A list will be forwarded to ICP Advisory Team members for informational purposes. FORWARDING TA AND ECM GRANT APPLICATIONS TO DOE [10 CFR 455.133] The Energy Bureau will forward to the DOE all TA and ECM applications recommended for funding within its allocation no later than 60 days prior to the close of the ICP grant cycle (August 31). ENCOURAGEMENT OF RENEWABLE ENERGY SYSTEMS [10 CFR 455.20(h)} In addition to requiring a preliminary calculation of the feasibility of solar domestic water heating in the TA report,the Energy Bureau awards 16 points for renewable energy projects in the ECM ranking process if they make up more than 50 percent of the total package cost.This is a substantial incentive and should encourage the utilization of renewable energy.The Energy Bureau will distribute information to promote the use of renewable energy systems at the fall ICP Informational Workshops. 6.REPORTING,MONITORING AND EVALUATION Program management includes the reporting requirements for TA and ECM grants and the reviewing procedures for assuring the quality of these projects.TA and ECM applicants are © required to certify that they will expend grant funds according to state and federal regulations and will not use federal assistance to supplant other federal,state or local government funds. Grantees are responsible for obtaining an outside audit of their financial management system to assure that funds are utilized according to federal regulations.The Energy Bureau's evaluation of the program will consist of site visits and monitoring fuel savings achieved by participating buildings.Procedures for meeting the federal requirements are described in the following subsections. REPORTING REQUIREMENTS [10 CFR 455.113] The Energy Bureau reviews the various reports required of the grant recipients.Reports are maintained in a file for each participant so that an individual institution or building can be tracked through the successive stages of the program.Reporting requirements are detailed in the following subsections. Technical Assistance Grantees Institutions receiving TA grants are responsible for maintaining appropriate records and documents for each building in the program to fulfill the DOE reporting requirements.Within 30 days of completing a TA project,grantees must submit a final report to the Energy Bureau containing the following items: 1.The TA report submitted to the institution by the TA analyst. 2.Financial status report (SF269A). 3.Plans for implementing O&M improvements recommended in the TA report. All documents relating to TA work will be kept by the participating institutions for three years after completion of the project.Records relating to the disposition of federal funds will be open to the DOE for inspection during that time. 16 Energy Conservation Measure Grantees Recipients of ECM grants will be responsible for maintaining appropriate records and documents for each building in the program to fulfill the DOE reporting requirements. All documents relating to ECM work will be kept by the participating institution for three years after completion of the project.Records relating to the disposition of funds will be open to the DOE for inspection during that time. Three types of reports are required: 1.ECM Semiannual Reporting Twice a year,at the end of January and July,each ECM grantee will submit a semiannual report until the grant is closed.For oil overcharge grants,reports are submitted to the Energy Bureau,and for federally funded grants,reports are sent to both the DOE and the Energy Bureau.The report will consist of a description of work in progress and a record of the financial status of the project.Work in progress will include approach changes and performance variances,accomplishments or problems,if any,and status assessment and forecast.Financial status will clearly indicate the disposition of financial assistance received for the project as well as the sources and amounts of funds not supplied by the DOE.The reports provide a basis for the Energy Bureau to monitor and audit ECM work,assuring that projects proceed on schedule and that funds are expended as planned,or explaining why changes are made. ECM Final Reporting A final report to both the DOE and the Energy Bureau is due within 30 days of the contract end date or the completion of all ECMs,whichever is earlier.The grantee must detail the following items in the report: a.Final financial accounts (using federal form SF269A if the grant has been federally funded,or Wisconsin form ECM4 if the grant has been state funded). b.List and description of installed ECMs,final projected payback period for each measure and the project as a whole,actual installed cost of each measure,and a statement that the completed conservation measures conform to.the approved grant application (using federal form ICP-F-ECM if the grant has been federally funded,or Wisconsin form AD-EN-129 if the grant has been state funded). ECM Annual Energy Use Reporting ECM grantees are required to submit records of July-June monthly energy use,by fuel type, for three years following grant close-out,if requested.The Energy Bureau will request that selected institutions submit this information by July 31 each year and will assure that the 17 selected institutions are a representative sample of the different types of program participants.This data will be coded and entered into the computer for comparison with data from the Energy Use Evaluation. Energy Bureau Reporting The Energy Bureau will comply with federal regulations requiring state semiannual progress reports on the TA/ECM phases of the program.These reports will be submitted to the DOE each February and August for the duration of the program.They will include the information outlined in 10 CFR 455.123. QUALITY ASSURANCES Technical Assistance Reports Three types of checks will be made on the performance and quality of TA reports,as follows: 1.Requirements for Contractors Conducting TA Studies.[10 CFR 455.111] a.TA analysts must be registered as Professional Engineers or Architects. b.TA analysts must be free from any financial interests which might conflict with the writing of an unbiased TA report. c.TA analysts must attend annual training sessions presented by the Energy Bureau. d.When an institution submits its application for a TA grant,it will be required to designate the firm or individual who will conduct the study.As part of this application, the firm will certify that the minimum criteria for TA analysts set by the program have been met. 2.Review of TA Reports a.The Energy Bureau will review completed TA reports based on criteria they establish as well as on criteria supplied by the DOE to assure uniformity in the review process.TA reports will be examined for consistency with information previously provided in the Energy Use Evaluation and for the appropriateness of the analysis and recommendations. b.The ICP staff has published the "Guide to Writing a Technical Assistance Report"for TA analysts to use while completing a TA report.All the requirements for TA reports are clearly laid out in this document.TA reports will be reviewed to verify that they conform to the specifications in the TA guide. 18 c.The TA Report must include a signed and dated certification that the TA analyst has completed the report in accordance with the program regulations and that the data presented is accurate to the best of his/her knowledge [10 CFR 455.62d]. 3.Financial Reporting a.Federal regulations require a final financial report from TA grantees after completion of the TA report [10 CFR 455.113]. Energy Conservation Measure Grants Two types of checks will be made on the performance and quality of the ECM reports: 1.Review of Progress and Financial Reports a.Federal regulations require semiannual financial reporting from ECM grantees during the implementation of an ECM anda final financial report after its completion [10 CFR 455.113(b)(2)].The Energy Bureau will review final ECM reports based on criteria they establish to assure uniformity in the review process.ECM reports will be examined for consistency with information previously provided in the TA analysis and - for verification that ECM installation was carried out in keeping with the specifications of the grant proposal. 2.Site Visits a.The Energy Bureau will conduct site visits to at least two DOE and two state funded grantees annually,to assure that funds have been expended as stated in the grant application.A monitoring checklist that reflects federal compliance will be used. b.After compietion of the site visit,the Energy Bureau will provide a letter summarizing the visit and indicating non-compliance issues,if any.Copies of this letter will be sent to the grantee and the DOE regional office,and a copy will be kept on file at the Energy Bureau.Also,a copy of the monitoring checklist will be sent to the DOE and kept on file. PUBLICATIONS The Energy Bureau has published three reports on the ICP:"Energy Management in Wisconsin Public Buildings:Cost Effective Savings Opportunities"(1981),"Energy Management in Wisconsin Public and Commercial Buildings:Results of the Institutional Conservation Program" (1984),and "Energy Management in Wisconsin Schools and Hospitals:1985 ICP Performance Review".To date,837 schools and 46 hospitals have completed the TA phase of the program. 19 APPENDICES: A:ADVISORY TEAM MEMBERS B:ICP CALENDAR OF EVENTS C:ENERGY USE EVALUATION (EUE) D:ECM AND TA GRANT APPLICATION E:GUIDE TO WRITING A TA REPORT F:APPLICANT ASSURANCES 20 APPENDIX A:ICP ADVISORY TEAM MEMBERS WISCONSIN ASSOCIATION OF INDEPENDENT COLLEGES AND UNIVERSITIES (WAICU) John Barnes,Director of Facilities 414/337-3053 St.Norbert College De Pere,WI 54115-2099 WISCONSIN ASSOCIATION OF SCHOOL DISTRICT ADMINISTRATORS (WASDA) Miles Turner,Executive Director 608/255-1533 3 South Pinckney Street Madison,WI 53703 WISCONSIN ASSOCIATION OF SCHOOL BOARDS Ken Cole 608/257-2622 122 West Washington Avenue Madison,WI 53711 WISCONSIN ASSOCIATION OF NON-PUBLIC SCHOOLS (WANS) Jim Silver,Treasurer 608/257-0004 30 West Mifflin Street,Suite 302 Madison,WI 53703 WISCONSIN BOARD OF VOCATIONAL TECHNICAL AND ADULT ED.(VTAE) Bob Dimperio,Facilities Consultant 608/266-1809 310 Price Place P.O.7874 Madison,WI 53707-7874 DEPARTMENT OF PUBLIC INSTRUCTION (DPN) Rick Kloiber 608/266-2803 GEF 3,4th Floor Madison,WI 53702 WISCONSIN HOSPITAL ASSOCIATION Michael Shoys 608/274-1820 $721 Odana Road Madison,WI 53711 UW-EXTENSION ENGINEERING Keith Kempski 608/262-0468 432 North Lake Street Madison,WI 53706 GRANTEES: MADISON METRO.SCHOOL DIST. Rick Hopke 545 West Dayton Street Madison,WI 53703 608/221-6280 CONSULTANTS: MICHAELS ENGINEERING Phil Wells,Director Milwaukee Office West Allis,WI 53227 414/541-0500 MILWAUKEE PUBLIC SCHOOLS Ron Allen,Director Dept.of Facilities and Maint.Services 1124 North 11th Street Milwaukee,WI 53233 414/283-4600 R.J.MILLER ASSOCIATES Randy Leichty,Vice President 9312 West National Avenue 12745 West Capitol Drive Brookfield,WI 53005 414/783-6699 APPENDIX B:1993/94 WISCONSIN ICP CALENDAR OF EVENTS Event Timeline DOE Announces New Cycle Sept. Energy Bureau Mailings to Potential Grantees and Grantee Organizations Sept.-Oct. The Energy Bureau Conducts Informational Workshops Sept.-Nov. The Energy Bureau Distributes Grant Applications Sept.-March ECM Grant Application Deadline Dec.13 The Energy Bureau Reviews ECM Grant Applications Dec.-March TA Grant Application Deadline March 7 The Energy Bureau Reviews TA Grant Applications March The Energy Bureau Submits Grant Recommendations to DOE March DOE Reviews Grant Applications March-May The Energy Bureau Conducts Advisory Team Meeting May The Energy Bureau Conducts Consultant Certification Meeting June DOE and the Energy Bureau Announce Grant Awards July Appl inat_A.P P b=p ary,35 In Qt _|fe_eyele /oo .12 13/35 /pr 6_l rr ff -.pe aS Kel BP,( 13 S35 lL.6O_:ae ' bk $5 APPC [70 ),Ss:Ps W"Ff TL10 3ri :N63 .J JOS)0_Ine 7KOKe@<yele \| i {ii11Ii' +1i( poe 1C| STATE OF OREGON 1993 STATE PLAN FOR IMPLEMENTING THE INSTITUTIONAL CONSERVATION PROGRAM FOR SCHOOLS AND HOSPITALS PROGRAM AND TECHNICAL ASSISTANCE MAY 1993 REVISED 6/10/93,6/23/93 TABLE OF CONTENTS INTRODUCTION REQUIREMENTS OF 10 CFR 455.20 (a) (b) (c) (d) (e) Involvement of Institutions in Development of State Plan State Plan Change Notification Procedures Notification of Cycles,Funding Levels &Non-Federal Sources Grant Application Procedures Evaluating and Ranking Technical Assistance and Energy Conservation Measures Equitable Allocation of Funds Severe Hardship Procedures Renewables Spending Compliance Assurances Program and Technical Assistance Program Description,Procedures for Program Operation,Monitoring,and Evaluation Requirements for Energy Audits or Energy Use Evaluations Operation and Maintenance Procedures Supplemental Financial Assistance Criteria for Accepting Non Federal Funded TASs as a Basis for Energy Conservation Measure Funding Required Content of a Technical Assistance Study or Energy Report Management,Monitoring,and Evaluation of Technical Assistance/Energy Reports and Energy Conservation Measures Requirement for Update of Technical Assistance Studies/Energy Reports Technical Assistance Analyst Qualifications Reapplication of TASs or ECMs Operation &Maintenance and ECM Savings Conversion Factors Coordinating Agency ECM Credit Federal Share Limits Program and Technical Assistance I.INTRODUCTION The State of Oregon proposes to run an alternative financing program for eligible schools and hospitals in conformance with the revised rules published in the February 19,1993 Federal Register and changes to the program made by the State Energy Efficiency Programs Improvement Act of 1990 (Public Law 101-440). This program will supplement on-going energy conservation programs available in Oregon and through the State Department of Energy (ODOE).The objectives of the State Plan are: To train building operators on how to increase the building energy system efficiency; To reduce energy consumption and energy costs through implementation of low-cost no-cost operation and maintenance improvements or installation of energy conservation measures; To assist institutions secure financing of energy conserving measures;and To establish energy tracking practices to be used by administrators to manage energy expenditures. Important tax dollars and energy savings will result from training operators how to run their existing systems,implement low-cost no-cost operation and maintenance improvements,identify cost-effective conservation measures and help to secure financing of identified conservation measures. ICP eligible schools and hospitals who participate in this program can expect to reduce operating costs due to a reduction in their energy use and associated energy costs. Program and Technical Assistance -1- A.455.20(a)-INVOLVEMENT OF INSTITUTIONS IN THE DEVELOPMENT OF THE STATE PLAN Prior to and after passage of the State Energy Efficiency Programs Improvement Act of 1990,the Oregon Department of Energy (ODOE) worked with representatives of eligible institutions to solicit comments on what changes were needed in the federal rules and regulations and state plan to best address their needs. The following actions occurred: Formulation of a Schools Task Force.This task force was developed to get their input on how we could improve our programs.Members consisted of school district administrators, facilities managers,Department of Education representative, representative from the Facilities Managers Association,Energy Extension and ODOE.Members of the Task Force were asked to list their priorities for achieving maximum energy efficiency in their buildings. The Schools Task Force recommendations were used to make recommendations to US DOE for changes to the rules.In addition, their recommendations were key in the development of the State Plan. ODOE and Portland General Electric (PGE)formed a collaborative effort to solicit input from PGE customers to determine what services they needed.This committee included representatives from the entire public sector (schools,hospitals,cities,counties,and engineers).The committee included representatives from the Assoc. of Hospitals,Cities and Counties,schools,colleges,engineers and the Department of Education.Their comments and concerns were the same as expressed by the Schools Task Force committee members,and therefore,were incorporated in the ODOE State Plan. In 1992,all eligible institutions were notified once the final rules were issued no funding would be available for projects.A bulletin was sent to all eligible institutions and all other individuals on our ICP mailing list.This includes:individual schools and hospitals, school districts,hospital association,Department of Education, community colleges,private colleges,architects,engineers,utilities and other interested parties.This bulletin also served as our grant application solicitation notice. Program and Technical Assistance -2- Upon receipt of the bulletin,several individuals called ODOE for clarification and additional information about the proposed changes to the program.Institutions and technical analysts were pleased with the proposed changes.They indicated they were looking forward to a program that would allow more flexibility and require less paperwork.Therefore,all institutions are aware of the changes ODOE proposes to the ICP program. ODOE met with several utility representatives.We secured information about the type of services they provide their customers. The goal was to develop a program that complements rather than duplicates their services.ODOE will continue to work closely with the utilities to leverage limited federal funds. Results:It was clear many utilities have limited or few staff with commercial sector expertise.We agreed to work together to provide needed services to our mutual customers.An example is: Joint audits,and customer referrals on services provided by the utility or ODOE. The information provided above was key in the development of the State Pian.This does not mean that further changes will be needed in the future.We will continue to look for improvements to the program, Oregon's energy picture and the changing needs in schools and hospitals. In addition,changes may be needed based on changes in the regulations or legislation. B. 455.20(b)STATE PLAN CHANGE NOTIFICATION PROCEDURES Any changes to the Oregon State Plan will be made known to all eligible institutions through the parent state agencies for schools (Department of Education)and hospitals (Hospital Association). An informational bulletin will be mailed to all ICP eligible institutions. The notice will be sent to ODOE's entire schools and hospitals mailing list which includes architects and engineers. The bulletin will explain any changes in the ICP rules and regulations,the program,how to receive a copy of the revised regulations and/or state plan and how to comment/suggest changes to the program.All comments/suggested changes will be considered for further changes to the State Plan.Only those suggested changes that meet ICP rules and regulations will be considered for incorporation.Institutions who submit comments/suggested changes will be notified what action,if any,ODOE takes. Program and Technical Assistance -3- C.455.20(c)NOTIFICATION OF CYCLES,FUNDING LEVELS AND NON-FEDERAL SOURCES A bulletin is issued each year to all ICP eligible institutions.This bulletin will include: the level of funds available for the current year (cycle), a description of the type of services ODOE can provide,and financing mechanisms available for funding of conservation projects, and The bottom portion of the bulletin can be used by interested institutions to request: Building Operator Training Energy Accounting Technical Assistance Study funding or help securing financing of projects D. 455.20(f)&455.20(j)(6)EQUITABLE ALLOCATION OF FUNDS All eligible institutions will have an equal opportunity to participate in this program.ODOE will accept requests for services throughout the year. Requests for services will be processed in order of receipt. ODOE will keep a list of all requests and program dollars committed and remaining funds.If an institution is not served one year due to lack of funds,they will be first in line to receive help the next year. E.455.20(j)(2)THE LEVEL OF FUNDING TO BE USED FOR EACH PROGRAM AND SOURCE OF THOSE FUNDS The Oregon Department of Energy (ODOE)proposes to use 100 percent of the appropriated funds for program and technical assistance. The non-ICP funds committed/obligated for completion of energy conservation measures will vary based on the total funds appropriated for ICP each year. Program and Technical Assistance -4- F,455.20(j)(7)TRACKING TOTAL FUNDS BY SOURCE,AMOUNT OF FUNDS OBLIGATED AND ANY LIMITS ON TYPES OF INSTITUTIONS ELIGIBLE FOR PARTICULAR FUNDING SOURCES A Separate account (fund number)will be set up to track technical and program assistance.Accounting records will be checked each month to assure proper expenditures have been charged to each fund number and remaining funds.ODOE will report to US DOE expenditures per fund numbers. ODOE will account for dollars expended for funding of technical assistance studies,hardship and program assistance. Program status reports will be submitted to US DOE on a semi-annual basis.Financial reports will be submitted to US DOE on a quarterly basis. G.455.20(v)COORDINATING AGENCY ODOE does not intend to apply to be a coordinating agency.This section does not apply. H.-455.20(w)ECM CREDIT Since no federal funds will be used to fund energy conservation measures, this section does not apply. I.SUBPART K-455.122(b)SPENDING COMPLIANCE ODOE will track the funds legally obligated or committed for technical assistance,program assistance and energy conservation measures to assure we do not exceed the allowable expenditure of 15 percent of federal and non-ICP funds for program and technical assistance. ODOE will keep monthly reports on all funds obligated or committed.In addition to the reporting listed in F,ODOE will submit a final report to US DOE on December 31st of each year following the end of the cycle. This report will include the results of the years activities. Program and Technical Assistance -5- Ti TECHNICAL ASSISTANCE PROGRAM A. 455.20(d),455.20(p)and 455.20(j)PROGRAM DESCRIPTION ODOE will accept requests for services from eligible ICP institutions throughout the year.Upon receipt of each request,ODOE will: 1.review ODOE's existing records to determine what,if any,services the institution has received through ODOE.This will help us determine what type of services they need. Based on the result of 1.,ODOE will contact the institution to inform them on the results of our review.Review may indicate: a.The institution has received the service requested but may need additional help.If this is the case,ODOE will schedule a time to mee:with the institution to further explain the services available through ODOE and requirements for receipt of services or The institution has never received any of ODOE services. Therefore,ODOE will schedule a time to meet with the institution to further explain the services available through ODOE and requirements for receipt of services or The institution has received funding for a technical assistance study,building operators have been trained and the institution has received energy accounting.This does not mean they do not need ODOE help.ODOE will contact the institution to determine what help they need.This could be help to secure financing for identified projects or other specific building system training. Prior to the on-site visit,institutions will be requested to supply ODOE with basic information about their building,systems,energy use and costs (Energy Use Evaluation Form).This information will be used to determine conservation potential.One of the key factors will be the institutions potential to conserve based on the buildings btu's/gsqft,cost/gsqft,size of building and functional use. During the on-site visit as stated in 2.above,ODOE will explain program services and requirements.If the institution wishes to receive a service,they will be asked to sign a Partnership agreement.Signing of this agreement commits the institution to follow through with cost-effective recommendations identified through the service provided. Program and Technical Assistance -6- 5.If ODOE cannot determine the specific type of service the institution needs,ODOE will schedule an on-site visit by its contractor to complete a needs assessment.The assessment will identify the need for the following types of services: -building operator training (training on the proper operation of existing systems and identification of operation and maintenance measures), -how to track their energy use, -a recommendation to complete a detailed study to identify operation and maintenance items and/or energy conservation measures, -help to secure financing of identified conservation measures -training on how to operate and maintain installed measures 6.ODOE or its contractor will provide one or a combination of the above services. 7.Building Operator training will be provided by ODOE's contractor. The contractor will complete a report at the conclusion of the training.This report will outline training provided and recommended actions,such as,further training,implementation of operation and maintenance measures or installation of energy conservation measures. 8.Energy Accounting training will be provided by ODOE staff. 9.Technical assistance/energy reports will be completed by ODOE's contractor,utilities,and/or institutions analyst. 10.ODOE or its contractor will complete on-site inspections of completed projects.Training will also be available on proper operation of installed measures. B.455.20(e)&455.203)EVALUATING AND RANKING TECHNICAL ASSISTANCE AND ENERGY CONSERVATION MEASURES 1.Evaluating &Ranking Energy Conservation Measures ODOE will not use federal ICP allocated funds to fund energy conservation measures.Therefore,this section relating to ranking of energy conservation measures does not apply. Financing of energy conservation measures will be available through other sources or programs (see section 455.20(j)(4)).All participating institutions will receive help from ODOE to secure the type of financing that best meets their needs.For those institutions who secure non-ICP funding of projects,ODOE will evaluate the projects to establish what projects/measures meet ICP requirements. Program and Technical Assistance -7- Only ICP eligible projects/measures will be counted and reported to US DOE. 2.Evaluating &Ranking Technical Assistance As stated in 455.92(c)and 455.131(a),States who mun a program of program and technical assistance are not required to rank technical assistance and can accept requests for technical assistance throughout the year. All studies completed as a basis for securing non-ICP financing of projects will be evaluated by ODOE for compliance with the definition of an eligible ICP measure and payback criteria. Technical Assistance studies will be completed by ODOE,utilities, ODOE contractors or by the institutions technical assistance analyst. Requests for completion of detailed engineering studies will be accepted by ODOE up to available funds received from US DOE each funding year. C.455.20(g)SEVERE HARDSHIP PROCEDURES All eligible institutions can receive up to fifty percent in federal funds for completion of a technical assistance study/energy report.In addition, ODOE will reserve ten percent of its funding allocation for severe hardship cases.Those institutions experiencing severe hardship will be eligible to receive up to an additional forty percent in federal funds for completion of their study. The degree of hardship funding will be based on an institutions long-term need or inability to provide the fifty percent non-federal share of the technical assistance study cost.This financial assistance shall be available only to the extent necessary to enable such institutions to complete a detailed engineering study. Eligibility for hardship funding is determined on an institution-by- institution basis.Using the formula in the hardship criteria,the institution receives a hardship score.This will determine the percent of hardship funds the institution is eligible to receive.Hardship funds will be available up to available funds. The hardship criteria is as follows: 1.Public schools and colleges: a.First Criteria (Impact):Total Annual Energy Costs for the Current Fiscal Year ($)divided by their Total Annual Non- Capital Expenditures for the Current Fiscal Year ($). Program and Technical Assistance -8- b.Second Criteria (Property Tax Support):Property Tax Support ($'s per thousand)for previous year divided by the current year's property tax support ($'s per thousand). Hardship score is found by adding the result of the first and second criteria and dividing the sum by 2. 2.Private schools a.First criteria (Impact):Total Annual Energy Costs for the Current Fiscal Year ($)divided by their Total Annual Non- Capital Expenditures for the Current Fiscal Year ($). b.Second criteria (Tuition and Fees):Tuition +Fees +Local Subsidies ($)divided by their total annual non-capitalized expenditures for the current fiscal year ($). Hardship score is found by adding the result of the first and second criteria and dividing the sum by 2. 3.Private non-profit colleges: a.First criteria (Impact):Total Annual Energy Costs for the Current Fiscal Year ($)divided by their Total Annual Non- Capital Expenditures for the Current Fiscal Year ($). b.Second criteria (Tuition &Fees):Tuition +Special Fees + Local Subsidies ($)divided by their total annual non- capitalized expenditures for the current fiscal year ($). c.Third criteria (Enrollment):Enrollment for the previous year minus the current enrollment divided by the previous enrollment. Hardship score is found by adding the result of the first,second andthirdcriteriaanddividingthesumby3. 4,Hospitals: a.First Criteria (Impact):Total Annual Energy Costs for the Current Fiscal Year ($)divided by their Total Annual Non- Capital Expenditures for the Current Fiscal Year ($). b.Second Criteria (Revenue Number):Hospital Net Patient Revenue ($)divided by their Total Annual Non-Capitalized Expenditures for the Most Recent Fiscal Year.The net patient revenue must comprise less than one hundred and ten percent (110%)of its total non-capitalized annual Program and Technical Assistance -9- expenditures for the current fiscal year in which the application is made. Hardship Score is found by adding the ranking points from the Impact and Revenue formula and dividing the sum by 2. In the event ODOE does not obligate all hardship funds within a given year,the remaining funds will be used to provide additional funding of technical assistance studies for other qualified applicants. D. 455.20(h)RENEWABLES All technical assistance /energy reports completed with technical assistance funds must address the potential for renewable conservation.If renewable measures are cost-effective and reasonable,the reports must include a cost estimate and savings to be achieved through implementation of the renewable measure. E.455.20(i)SPENDING COMPLIANCE ASSURANCES 1.ODOE plans to use contractors to complete the technical assistance/energy report for institutions.Those funds paid to contractors will be in accordance with the State laws,federal regulations,our State Plan and in coordination with other State and Federal energy conservation programs.Institutions will pay ODOE's contractor their share of the cost of completing an energy report. 2.Institutions that secure their own TA analyst,will be required to sign an assurance that funds will be expended in accordance with the federal regulations,State laws,our State Plan and in coordination with other State and Federal energy conservation programs.In addition,no funds will be disbursed for completed studies until ODOE has determined the costs and the study meets all program requirements. F.455.20(j)(2)LEVEL OF FUNDS FOR TECHNICAL ASSISTANCE AND HARDSHIP 1,Hardship:ICP total allocation times 10 percent and 2.Technical Assistance:ICP total allocation minus Hardship amount calculated above times 15 percent. Program and Technical Assistance -10- G. 455.20(j)(6)THE PROCEDURES FOR ASSURING THAT ALL SEGMENTS OF THE STATE'S ELIGIBLE INSTITUTIONS, INCLUDING RELIGIOUSLY AFFILIATED INSTITUTIONS RECEIVE AN EQUITABLE SHARE OF THE ASSISTANCE PROVIDED BOTH FOR PROGRAM AND TECHNICAL ASSISTANCE,MARKETING, AND ENERGY CONSERVATION MEASURES All eligible institutions will have an equal opportunity to participate in this program.ODOE will accept requests for services throughout the year. Services will be provided on a first-come first-serve basis up to the availability of funds. ODOE will keep a list of all requests and program dollars obligated/committed and remaining.If an institution is not served one year due to lack of funds,they will be first in line to receive help the next year. All ICP eligible institutions can participate and/or receive assistance in the form of services or financial aid from ODOE.The only exception is institutions who have received federal funds for completion of technical assistance studies in a previous funding cycle will not be eligible to receive federal funds for completion of a new study. All eligible religiously affiliated institutions are eligible to receive program and technical assistance help.Oregon has received an opinion from our Attorney General stating ODOE can provide financing or services to religiously affiliated institutions. H.455.20(k)REQUIREMENTS FOR ENERGY AUDITS OR ENERGY USE EVALUATIONS Prior to completing a technical assistance study,all ICP eligible institutions will be required to supply energy use and building information as a basis for determining conservation potential (see attached example). Information can be supplied to ODOE through the institutions utility,a contractor or by the institution. L 455.20(1)OPERATION AND MAINTENANCE PROCEDURES All TA analysts will be required to address all operation and maintenance Saving opportunities.Analysts will be required to give a description of the existing condition,recommended changes,and cost/benefit. All institutions will be required to implement all identified cost effective and/or feasible operation and maintenance procedures. Program and Technical Assistance -11- J.455.20(m)SUPPLEMENTAL FINANCIAL ASSISTANCE Eligible institutions who seek grant funds to secure their own analyst to complete an energy report shall provide a signed set of assurances and certifications stating that they will comply with the regulations,policies, guidelines,and requirements,including 10 CFR 600,as they relate to the application,acceptance and use of Federal funds for a Federally assisted technical assistance.By signing this assurance to comply with the Federal regulations,the institution attests that Federal funds will be used to supplement and not supplant state,local and other funds. K.455.20(n)CRITERIA FOR ACCEPTING NON-FEDERAL FUNDEDTASsASABASISFORENERGYCONSERVATIONMEASURE FUNDING ODOE will complete a technical review of all non-federally funded energy reports that are used as a basis to receive financing of identified conservation measures.The same level of technical review will be completed for non-federally funded energy reports as those described for federally financed energy reports. Only those measures which meet the ICP definition of an eligible measure, including the payback criteria,will be counted towards ODOE's requirement to generate eighty-five percent of total funds for funding of ICP eligible conservation measures. Funding of non-federal energy conservation measures will be in accordance with the requirements of non-federal financing programs. L. 455.20(0)&455.20(j)REQUIRED CONTENT OF A TECHNICAL ASSISTANCE/ENERGY REPORT The purpose of an energy report is to: e clearly define ICP technical report requirements so facility energy saving opportunities can be appropriately identified. °Guarantee reasonable calculation methods are used to ensure that predicted energy savings are achievable. °Increase overall program cost effectiveness by minimizing study costs.Simple building or buildings with straight forward energy savings opportunities will have lesser reporting requirements. e Allow varying analysis methods depending on utility incentive program or other financing mechanisms. The report format is intended to allow flexibility since each individual facility and its energy savings potential are different.There is also a wide Program and Technical Assistance -12- range of utility incentive programs that will influence the type and extent of the analysis. The report must be comprehensive and address all fuel type conservation opportunities.The report format is also intended to cause a level of uniformity among analysts.This will lead to quicker review by ODOE, consistency of reviews,equity and high quality reports. The report format consists of four sections: °the structure of the basic study format and required forms, °instructions which describe specific study requirements per the federal regulations that govern ICP,and e ICP program definitions and terms. e Technical Assistance Analyst Certification All Technical Assistance Analysts will be required to sign an assurance that: °As an independent,consulting engineer,they are not directly responsible for the day-to-day operation of the building or operation being audited.They have no conflict of interest relating to this audit and any energy conservation measures considered in the study, e They have included an analysis that assumes all savings obtained from energy conservation operation and maintenance procedures have been realized, e They have calculated the total energy cost savings,by fuel type, expected to result from the acquisition and installation of each recommended energy conservation measure.The energy prices used in the report are the current prices the institution is expected to pay based on the building's most recent billing history, °They certify they have considered all operations and maintenance procedures.They have discussed any needed operations and maintenance items with the building operator and facility manager, In addition,all recommended O&M's are included in the study,and e They certify that they or under direct supervision they have prepared all the information contained in the study and all information is correct to the best of their knowledge.In addition,as an energy analyst,the study was completed in accordance with the latest version of the ICP rules and regulations and ODOE's state plan. Program and Technical Assistance -13- M.455.20(p)MANAGEMENT,MONITORING,AND EVALUATION OF TECHNICAL ASSISTANCE/ENERGY REPORTS AND ENERGY CONSERVATION MEASURES ODOE contractor or institutions TA analyst will be required to submit to ODOEa timeline for completion of the energy report.ODOE will follow up with the analyst to assure energy reports are completed within the specified timelines. All energy reports generated through ODOE program assistance program will be evaluated based on ODOE's requirements for the content of a report and eligibility of measures identified.This includes cost,savings and payback of all recommended energy conservation measures,input and output assumptions,operation and maintenance measures,etc. ODOE contractors or institutions TA analyst will not receive payment until the energy report meets all program requirements.. N. 455.20(x)FEDERAL SHARE LIMITS ODOE will fund only Technical assistance/energy reports.Eligible institutions will be eligible to receive fifty/fifty matching grants for completion of technical assistance studies.Those institutions experiencing severe hardship will be eligible to receive up to an additional forty percent in federal funds. O.455.20(q)REQUIREMENT FOR UPDATE OF TECHNICAL ASSISTANCE/ENERGY REPORTS Each eligible institution who wishes to take advantage of one of the non- federal financing options listed in IV.C.(455.20(j)(4),will be required to update their completed study.TA studies update requirements: 1.building energy use and calculation of savings must be based on current energy use and costs; 2.recommended measures should be reevaluated based on current cost of completing the measure(s);and 3.reflect current use and operation of the building. P.455.20(r)TECHNICAL ASSISTANCE ANALYST QUALIFICATIONS 1.Knowledge,experience and expertise in conducting energy audits and studies of public buildings and facilities.This includes,but is not limited to,an understanding of HVAC systems,lighting standards and equipment,weatherization,heat recovery,renewables and HVAC control systems. Program and Technical Assistance -14- 2.Communication skills with an emphasis on the clear and simple presentation of ideas.Studies must be complete,responsive and appropriate according to the established TAS instructions. 3.Experience in conducting energy audits and studies in various locations and prepare report in a timely and efficient manner. Q.=455.20(s)REAPPLICATION OF TASs OR ECMs If an institution has received ICP funds in a previous cycle,they are not eligible to receive financing again for the same building.The only exception is for those institutions that wish to take advantage of the new rule that applies to complexes.In that case,they must agree to complete a study of all buildings in the complex (all buildings on one meter or served by a central heating plant. If an institution applied or received a award to complete a study of a particular building but later declined the grant or never received funding, they are eligible to apply for technical asssistance funds anytime through this program.There will be no federal funds available for funding of conservation measures. R.455.20(t)OPERATION AND MAINTENANCE AND ECM SAVINGS The Technical Assistance Analyst will be required to address all feasible operation and maintenance procedures.They must calculate savings resulting from implementation of operation and maintenance procedures and energy conservation measures at the time of completing a technical assistance study/energy report.This applies to ODOE TA analyst contractors and the institutions TA analysts whether studies were completed with federal or non-federal funds. This requirement not only applies to acceptance and payment of technical assistance studies/energy reports but also to ODOE's obligation to expend no more than fifteen percent of the total federal and non-federal funds for program and technical assistance. S.455.20(u)CONVERSION FACTORS Electricity:3,413/kwh Natural Gas:100,000/therm #2 Oil (Kerosene)139,000/gal #5,#6,Bunker C,PS 300,PS 400 Oil 150,000/gasCoal24.5 MMBtu/ton Liquified Petroleum Gas (LPG)95,500/gal.Steam 1,150/Ib. Program and Technical Assistance -15- IV.PR J R A.455.20(j)(1)PROGRAM ASSISTANCE PROGRAM DESCRIPTION,PROCEDURES FOR OPERATION,MONITORING,AND EVALUATION 1,Program Description and Operation Procedures A bulletin will be mailed to all ICP eligible institutions.The bulletin will describe the program,services and funds available,and how to participate in the program.A Services Request Form will be attached to the bulletin to solicit requests for ODOE services. Upon receipt of requests from institutions (in order of receipt), ODOE will: a.schedule an on-site visit with institutional representatives to further explain the program services and conduct a needs assessment. b.If the institutions agree to proceed with the program and sign a Partnership Agreement with ODOE,the following services may be provided: financing for completion of a technical assistance/energy report to identify the cost and savings of cost-effective conservation measures, building operator training on how to improve the efficiency of existing building systems, assistance to secure financing of projects already identified by the institution,utility,consultant or ICP funded study; on-site verification of installed measures resulting from services provided through this program; on-site training on proper operation of installed measures resulting from this program;and/or training of staff on how to track energy use before and after installation of measures. Again,this represents a full package of services.Some institutions (based on the needs assessment),may not need the full package.Others may know what projects need to be implemented and only need help/advice to go forward or getfinancing.ODOE will work with each institution to developapackageofservicestomeettheirparticularneed. Program and Technical Assistance -16- B. 455.20(j)(3)AMOUNTS USED FOR PROGRAM ASSISTANCE Allocated funds minus hardship and technical assistance (see ILF. 455.20{j)(2)above). C.455.20(j)(4)&455.122(A)DESCRIPTION OF OTHER FUNDS USED FOR FINANCING OF ENERGY CONSERVATION MEASURES 1.ODOE's Small Scale Energy Loan Program (SELP) SELP is unique in the United States.It uses no tax funds.It is self- supporting.Besides banking and lending expertise,SELP staff have technical expertise in engineering and energy economics.They have experience with energy technologies.They also have an advisory committee of respected citizens and private sector professionals. SELP's low-interest,long-term,fixed-rate loans are helping Oregon citizens,businesses,and public agencies use energy wisely and save money. SELP raises loan funds by selling Oregon general obligation bonds. By statue,SELP has the authority to sell $40 million a year.The loan term is based on the type of project and its energy savings. 2.Utility Financing Programs Listed below are the types of utility programs: a.Energy Smart Design and Rebate Programs Incentives are available for both new and existing buildings. There are three types of incentives offered:Prescriptive Path incentives,Equipment Rebates,and Site-Based incentives.In general just one incentive type is chosen for a project.Which incentive type to use depends on the particular details of the project. Public and Private utilities have varying incentive packages. ODOE will inform all eligible institutions of available incentives.We will evaluate all financing opportunities to assure institutions are offered the best mechanism to secure financing of their conservation measures. b.ODOE's Schools &Public Buildings Resource Acquisition Program (RAP) ODOE offers an acquisition program to schools and other public sector building owners in the Bonneville Power Program and Technical Assistance -17- Administration's (BPA)Lower Columbia Area.The program will pay full cost of eligible measures over time. Eligible institutions will receive payment for seventy percent of the energy conservation measure cost upon project completion.The remaining thirty percent will be paid in the post-third year after verification of actual costs,proper installation and operation to achieve predicted energy savings. 3.Oregon School Boards Association FLEXFUND (Certificate Of Participation (COP's)). Sponsored by the Oregon School Boards Association in cooperation with US Bank,FLEXFUND provides low cost,easy access financing for all project costs. Whether the institutions needs are short-term or long-term,real property or personal property,OSBA's FLEXFUND is an option. Oregon Revised Statute 332.155 permits school districts and community colleges to enter into lease-purchase and certificates of participation to complete a variety of projects. 4,General Obligation Bonds.All schools and community colleges can go to the voters to request approval for the sell of general obligation bonds to finance projects. D.455.20(j)(5)DESCRIPTION OF EVALUATION/SELECTION CRITERIA TO BE USED BY THE STATE IN DETERMINING WHICH INSTITUTIONS RECEIVE FUNDING FOR ENERGY CONSERVATION MEASURES Energy Conservation Measures will be funded through non-ICP sources. ODOE will review each project/measure to assure it meets the definition of an eligible ICP measure.Only eligible ICP projects will be counted toward the eighty-five percent requirement. E.455.20(J)(8)THE PROCEDURES FOR ASSISTING INSTITUTIONS WHICH INITIALLY RECEIVE PROGRAM,TECHNICAL,OR MARKETING ASSISTANCE (AS PART OF THE STATE'S SPECIAL PROGRAM(S))AND LATER PARTICIPATE IN THE STATE'S PROGRAM(S)TO PROVIDE ENERGY CONSERVATION MEASURE FUNDING As a condition to receive program or technical assistance,the ICP eligibleinstitutionmustfirstsignaPartnershipagreementtofollowthroughwith cost-effective conservation measures identified after completion of the Program and Technical Assistance -18 - program or technical assistance.The agreement will state the timeframe (within one year)for securing financing of identified projects.There may be some cases,depending on the size of the projects,that may extend beyond one year.This determination will be made by ODOE on a case by case basis. Each institution who receives either program or technical assistance will receive help from ODOE to secure financing of identified cost-effective measures.ODOE will explain each financing option.We will recommend the best option to the institution. Cost effectiveness will be determined based on payback and institutions ability to secure financing.Therefore,an evaluation of cost effectiveness will be determine by ODOE on a case by case basis. F,455.20(p)MANAGEMENT,MONITORING,AND EVALUATION OF ENERGY CONSERVATION MEASURES Only those measures that meet ICP requirements will be counted by ODOE to meet the requirements for a State to use up to 100 percent of appropriated funds for program and technical assistance. ODOE or its contractor will inspect each completed project to assure each measure meets ICP requirements.ODOE will also check expenditures for ECMs to establish allowable costs,payback and compliance with the federal regulations for all non-federal projects. Institutions will be required to report energy use for a three year period after completion of the project(s).This will help ODOE and US DOE establish the cost effectiveness and success of the program.It will also help reevaluate the program guidelines,ICP regulations and procedures. c:\work\p&taplan.w51 Program and Technical Assistance -19- ESCOS SERVING UTAH (This list does not constitute an endorsement.) AMERICAN LIGHTING FINANCIAL ENERGY MANAGEMENT 529 West 9460 South 1625 Downing Street Sandy,UT 84070 Denver,CO 80218 | 801-562-2908 303-832-1920 Office of Energy Services BRIGHT SIDE LIGHTING OF UTAH HONEYWELL,INC.324 South State Street,Suite 230 3343 South Main Street 400 Lawndale Drive ;Salt Lake City,Utah 84111 SLC,UT 84115 SLC,UT 84115 j801.187.7883 30483-8119 (801)538-8690 FAX (801)538-8660 CARRIER BUILDING SYSTEMS &SERVICES IMAGE LIGHTING SYSTEMS,INC, 400 Ironwood Drive 4080 West 1820 South SLC,UT 84115 SLC,UT 84115 801-486-5994 801-484-2724 CO-ENERGY JOHNSON CONTROLS 725 Arizona Ave.,Suite 206 2255 Technology Parkway Santa Monica,CA 90401 SLC,UT 84127 310-395-6767 801-973-4001 CONSERV-A-WATT LIGHTING LITE SALES 3584 West 1820 South 4692 Holladay Boulevard SLC,UT 84104 Holladay,UT 84117 801-975-9363 801-272-4692 COVER POOLS,INC.TEAM MECHANICAL,INC. 66 East 3335 South 151 North 600 West | SLC,UT 84115 Kaysville,UT 84037 ' 801-484-2724 801-544-1811 | DIXIE POWER WATER &LIGHTING UNITED FINANCIAL OF ILLINOIS \ Box 82 800 East Diehl Road,Ste.185 i Washington,UT 84780 Naperville,{L 60563 ; 708-955-0188 i ENGINEERED MAINTENANCE ' 433 East 6650 South VIRON CORPORATION . South Weber,UT 84405 216 N.W.Platte Valley Drive |801-479-6381 Riverside,MO 64150 ' 816-741-3500 : EAU/ONSITE 701 Palomar Airport Road,Ste.200 Carlsbad,CA 92009 619-931-2400 ¢ This listing is based ona solicitation conducted by the Utah Division of State Purchasing to identify companies providing ESCO service in ' Utah.This listing does not constitute an endorsement or a guarantee of work.Other funding options for retrofit projects in public facilities include:internal capital improvement funding,municipal leases,' bonding,shared savings arrangements and utility financing programs.Other funding options for retrofit projects in private facilities include:internal capital improvement funding,leases,oOloansfromfinancialinstitutions,shared savings arrangements and 4 utility financing programs.Printed on recycled paper using vegetable oil ink 8 apital to fund energy efficiency measures inUtah's public and private buildingsis increasingly scarce. Itis possible to competitively select a professional energy service company (ESCO)to provide capital for energy efficiency improvements on a guaranteed basis. Under such an arrangement,the ESCO provides expertise and financing to install energy efficiency measures and guarantees the energy savings will exceed the financing payments.Repayment terms can range between two and ten years. *energy controls *new lighting technologies *heating and air-conditioning system upgrades *new boilers and chillers *vestibules *swimming pool covers *efficient motors and pumps *heat recovery systems *cogeneration systems *insulation *windows These measures will not only save energy and money,they can reduce equipment downtime and improvebuildingcomfort. When properly procured,there should be no risk associated with using an ESCO.Experienced administrators and facility managers advise you to: Procure competitively -The Utah Division of Purchasing and the Utah Office of Energy Services recommend competitive selection of an ESCO.A list of ESCOs operating in Utah appears at the end of this brochure.The Division of Purchasing has developed a generic "Request for Proposal”designed specifically for procuring an ESCO,It can be obtained by calling (801)538-3709. Retain independent technical expertise-Independent consulting engineers can assist you with ESCO-funded projects.Independent engineers inspect the quality of workmanship and the equipment installed,negotiate contract changes to achieve highest energy savings, check compatibility of ESCO-proposed work with existing building systems and verify the level of energy savings guaranteed by the ESCO. NOTE:Funding assistance for consulting engineers is available through the Utah Office of Energy Services Institutional Conservation Program for schools, hospitals and higher education facilities. Contact an engineer.Obtain a list of qualified independent engineers from the Utah Office of Energy Services.The engineer will determine baseline consumption for each of your facilities and assess overall energy savings potential.Some institutions prefer to complete a full technical energy audit by the independent consulting engineer for each building as a preliminary step to procuring an ESCO. Obtain a sample Request for Proposal from the Utah Division of Purchasing or the Office of Energy Services. With the help of your engineer,distribute the completed RFP to the ESCOs listed in this brochure.These companies have registered through the Utah Division of Purchasing and provide one-stop service that includes equipment and building retrofit,project financing and consumption monitoring of the guaranteed savings to be achieved. Review the bids with the help of your independent engineer and make a selection most advantageous to your institution. Negotiate a contract with the ESCO. Conduct site inspections.Your independent engineer should complete at least one on-site inspection during construction.When the project is completed,the engineer should conduct a final inspection to review and accept the work. Verify the energy savings.Your independent engineer should regularly measure the savings guaranteed by the ESCO and authorize payments to the financier arranged through the ESCO. ¢ For more information,contact the Utah Office of Energy Services (801)538-8690 or 1-800-662-3633. PACT Sil S IE SMALL SCALE ENERGY LOAN PROGRAM Energy savings pay for building improvements in Oregon schools With budget cuts,rising school populations,and deteriorating buildings,school districts must look for creative ways to carry Oregon education successfully into the twenty-first century.Many districts have found saving energy a creative way to address elements of all these issues.Dollars saved on energy can be used for other important education needs. The Oregon Department of Energy Small Scale Energy Loan Program (SELP)helps schools save energy, make buildings more comfortable,and put dollars back into education.SELP offers long-term,low-interest loans to pay for building improvement projects that save ener- gy.Since 1985,SELP has helped almost 50 Oregon schools save about $2 million in energy costs.Most schools repay the loans with energy savings. For example,energy savings will repay a $60,000 loan SELP made to the Clackamas County School Dis- trict.The district replaced two malfunctioning boilers with one energy-efficient boiler at the Boring Middle School.The new boiler and other equipment will com- pletely upgrade the heating,ventilation and air- conditioning and hot water systems.The project should save about $15,000 a year in energy costs. Oregon bonds raise loan funds SELP raises loan funds by selling Oregon general obligations bonds.Interest rates and loan terms vary. They are determined at each bond sale. SELP will review any reasonable project that saves energy.Examples of projects installed by districts include boiler and heating,ventilation,and air-conditioning sys- tem improvements,efficient lights and water heating, extra insulation,and energy management systems. In addition to loans,SELP offers schools free pre- liminary audits to determine project feasibility.If the audit finds potential projects,engineering firms on con- tract with SELP do a complete energy study.If the 625MARION ST.NE,SALEM,OREGON 97310 study finds a project that will pay for itself with energy savings,then the district is eligible for a SELP loan to pay for the project and the study. SELP engineers identified energy projects at Schirle Elementary School in Salem.The Salem-Keizer School District borrowed $90,000 to pay for the study and make the recommended improvements.They include gas-fired boilers with time clocks,a heat exchanger for the water heater,and lighting improvements.The projects should cut the District's energy bills by almost $32,000 a year. Loans match federal grants The U.S.Department of Energy (USDOE),through the Oregon Department of Energy now offers schools grants for up to 50%of the cost of energy studies.SELP can lend districts their share of the study cost and funds to install the measures. The Gervais Elementary School District in Marion County used a $21,965 SELP loan to match a USDOE grant.The grant paid half the cost of energy measures installed at the school.Measures included insulation, energy-efficient lights,and boiler and radiator improvements.These measures should cut energy costs by almost $6,500 a year. District superintendent David Nuss thinks the project is a winner all the way."The SELP loan,USDOE grant, and energy savings package is an excellent way to pay for capital improvements,”said Nuss."SELP lent us what we needed to complete the project.And,our annual energy savings is more than our annual loan payments,so we can pay for a project without dipping into what's become a very tight operation and maintenance budget," Nuss said. SELP can help your district save energy and put dollars back into education.Call today for more in- formation. FSER\MASTERS\FACTSHET\schfacts.w51 -April 21,1994 PHONE 378-4040 TOLL FREE 1-800-221-8035 ATTACHMENT 1 -NON-FEDERALLY FUNDED ENERGY CONSERVATION MEASURES RECIPIENT INFORMATIO =Sr QA:INSTITUTION NAME:C_MT.HOOD COMMUNITY COLLEGE meus >ZL PftoNes wre STREET ADDRESS:26000 SE STARK ST.CITY/COUNTY/ZIP:GRESHAM,OR MULTNOMAH 97030 CMA Yeres Reher CONTACT PERSON:MR C.H.WOLFE Sfhoucn Be /yaineePHONENUMBER:(503)667-7131 ” TYPE OF RECIPIENT:COMMUNITY COLLEGE AFyse TkE.FURST Om FISCAL YEAR:FY 1993 TP VERR.of FUNDS COMMITTED:$772,000 AE SOURCE OF FUNDS:ODOE SMALL SCALE ENERGY LOAN PROGRAM PROJECT START DATE:1992 PROJECT END DATE:July 1993 BUILDING RECORD LOAN NUMBER:L-00402 INSTITUTION NAME:MT.HOOD COMMUNITY COLLEGE CAMPUS STREET ADDRESS:26000 SE STARK ST.CITY/COUNTY/ZIP:GRESHAM,OR MULTNOMAH 97030 CONTACT PERSON:MR C.H.WOLFE . PHONE NUMBER:(503)667-7131 TYPE:COMMUNITY COLLEGE CENTRAL HEATING PLANT TA ANALYST:JEFF PONSNESS &WILL PRICE CRITERION ENGINEERS BLDG FUNCTIONAL USE:COMMUNITY COLLEGE CAMPUS CENTRAL HEATING PLANT ENERGY CONSUMPTION AND SAVINGS INFORMATION BUILDING SIZE:724,355 SQ.FT. GROSS CONSUMPTION:$615,000 GROSS ENERGY USE:12,012.6 MMBtu/yr O&M ENERGY SAVINGS:0 ADJUSTED SAVINGS:12,012.6 MMBtu/yr BASE FUEL USE INFORMATION TYPE OF FUEL:ELECTRICITY AND NATURAL GAS FUEL UNITS:2,279,400 KWH,42,330 THERMS ECM INFORMATION ECM 1:INSTALL LOW PRESSURE (15 PSIG)BOILER. ECM LIFE:20 YRS BTU SAVINGS:3,133 MMBTU OR 31,330 THERMS ECM COST:$45,700 DOLLAR SAVINGS:$12,532 PAYBACK:3.6 YEARS ECM 2:MODIFY EXISTING CONSTANT VOLUME AIR HANDLERS FOR VARIABLE AIR VOLUME OPERATION SF1 TO SF6. ECM LIFE:15 YRS BTU SAVINGS:3750.6 MMBTU OR -9,860 THERMS &1,387,800 KWH ECM COST:$633,000 DOLLAR SAVINGS:-$65,446 PAYBACK:9.67 YEARS ECM 5:CONVERT TO ELECTRONIC BALLASTS,PHOTOCELLS,REFLECTORS,OCCUPANY SENSORS,&CHANGE INCANDESCENTS TO FLUORESCENTS. ECM LIFE:°10 YRS BTU SAVINGS:591.1 MMBTU OR -14,138 THERMS &587,500 KWH ECM COST:$93,300 DOLLAR SAVINGS:$23,718 PAYBACK:3.93 YEARS RECIPIENT INFORMATION INSTITUTION NAME:IVERSITY OF OREGON> STREET ADDRESS:1295 FRANKLIN BLVD. CITY/COUNTY/ZIP:EUGENE,OR LANE -97403 CONTACT PERSON:MR GEORGE HECHT PHONE NUMBER:(503)346-2290 TYPE OF RECIPIENT:OR STATE HIGHER EDUCATION UNIVERSITY FISCAL YEAR:FY 1993 FUNDS COMMITTED:$1,887,022 SOURCE OF FUNDS:ODOE SMALL SCALE ENERGY LOAN PROGRAM PROJECT START DATE:1993 PROJECT END DATE:MARCH 1994 BUILDING RECORD LOAN NUMBER:L-00407 INSTITUTION NAME:UNIVERSITY OF OREGON,CENTRAL HEATING PLANT STREET ADDRESS:1295 FRANKLIN BLVD. CITY/COUNTY/ZIP:EUGENE,OR LANE 97403 CONTACT PERSON:MR GEORGE HECHT PHONE NUMBER:(503)346-2290 TYPE:UNIVERSITY CENTRAL STEAM PLANT TA ANALYST:SYSTEMS WEST ENGINEERING BLDG FUNCTIONAL USE:UNIVERSITY CENTRAL STEAM PLANT ENERGY CONSUMPTION AND SAVINGS INFORMATION BUILDING SIZE:N/A SERVES ENTIRE CAMPUS GROSS CONSUMPTION:$2,520,000 GROSS ENERGY USE:759,600 MMBtu/yr O&M ENERGY SAVINGS:0 ADJUSTED SAVINGS:759,600 MMBtu/yr BASE FUEL USE INFORMATION TYPE OF FUEL:ELEC.,NATUREAL GAS,HOG FUEL,OIL FUEL UNITS:43,061,090 KWH,3,383,852 THERMS, 15,703 UNITS HOG FUEL,&48,455 GAL OIL ECM INFORMATION ECM 1:REPLACE 3 EXISTING BOILERS WITH ONE 60,000 LB/HR BOILER. ECM LIFE:20 YRS BTU SAVINGS:136,855 MMBTU ECM COST:$1,076,722 DOLLAR SAVINGS:$108,080 PAYBACK:9.96 YEARS ECM 2:TURBINE UPGRADE:REPLACE WITH NEW 60 PSI EXTRACTION,20 PSI BACKPRESSURE TURBINE AND ADD ELECTRONIC CONTROLS ECM LIFE:15 YRS BTU SAVINGS:53.1 MMBTU ECM COST:$810,300 DOLLAR SAVINGS:$148,530 PAYBACK :5.5 YEARS RECIPIENT INFORMATION INSTITUTION NAME:UNIVERSITY OF OREGON STREET ADDRESS:1295 FRANKLIN BLVD. CITY/COUNTY/ZIP:EUGENE,OR LANE 97403 CONTACT PERSON:MR GEORGE HECHT PHONE NUMBER:(503)346-2290 TYPE OF RECIPIENT:OR STATE HIGHER EDUCATION UNIVERSITY FISCAL YEAR:FY 1993 FUNDS COMMITTED:$283,865 SOURCE OF FUNDS:ODOE SMALL SCALE ENERGY LOAN PROGRAM PROJECT START DATE:1993 PROJECT END DATE:MARCH 1994 BUILDING RECORD LOAN NUMBER:L-00408 INSTITUTION NAME:UNIVERSITY OF OREGON,ERB MEMORIAL STREET ADDRESS:1295 FRANKLIN BLVD. CITY/COUNTY/ZIP:EUGENE,OR LANE 97403 CONTACT PERSON:MR GEORGE HECHT PHONE NUMBER:(503)346-2290 TYPE:ERB MEMORIAL UNION/STUDENT SHOPS,RESTRAURANT,ETC. TA ANALYST:ENVIRONMENTAL &ENGINEERING SERV.,INC. BLDG FUNCTIONAL USE:UNIVERSITY CENTRAL STEAM PLANT ENERGY CONSUMPTION AND SAVINGS INFORMATION BUILDING SIZE:165,000 GROSS CONSUMPTION:$196,917 GROSS ENERGY USE:24,650 MMBtu/yr O&M ENERGY SAVINGS:0 ADJUSTED SAVINGS:24,650 MMBtu/yr BASE FUEL USE INFORMATION TYPE OF FUEL:ELECTRICITY AND STEAM FUEL UNITS:4,296,168 KWH,10,296 KLBS OF STEAM ECM INFORMATION ECM 1:REPLACE EXISTING PNEUMATIC CONTROLS WITH ENERGY MANAGEMENT & CONTROL SYSTEM -DDC ECM LIFE:13 YRS BTU SAVINGS:5,641 MMBTU ECM COST:$201,825 DOLLAR SAVINGS:$44,669 PAYBACK:4.5 YEARS ECM 4:LIGHTING-REMOVE EXISTING LIGHTING FIXTURES AND REPLACE WITH 4 LAMP,4 FOOT FLUORESCENTS. ECM LIFE:20 YRS BTU SAVINGS:1,837 MMBTU ECM COST:$82,040 DOLLAR SAVINGS:$9421 PAYBACK:8.9 YEARS USDOEECM.W521 PACT Shiilelet: Institutional Conservation Program Program improvements to better meet the needs of Oregon schools and hospitals. Improving the energy efficiency of schools and hospitals can help cut building operating costs by more than 20 percent.The federal Institutional Conservation Program (ICP)is operated in Oregon by the Oregon Department of Energy (ODOE).ICP offers a variety of services to schools and hospitals to identify energy- savings opportunities in buildings.Some utilities have incentives to pay for installing measures. ICP has helped fund energy studies in more than 500 Oregon schools or hospitals.There are still many schools and hospitals that qualify for ICP services. Some recent changes to federal rules let Oregon offer new ICP services,to better meet the needs of Oregonians. ICP services 1.Free preliminary building energy audits to find energy-saving opportunities and determine if a more detailed energy study is warranted. 2.Energy studies to identify cost-effective energy projects in your buildings.ICP offers 50 percent matching grants to pay for the studies.ODOE has contracts with several engineering firms and will schedule the energy studies with you. 3.Building operator training on how to improve the efficiency of your energy systems.This on-site training assures that energy measures operate properly and that building operators know how to use them.Training topics include boilers, refrigeration,HVAC controls,and building automation systems. 4.Project financing is available from a variety of sources.The ODOE Small Scale Energy Loan Program offers flexible term,low interest loans to finance energy projects.ODOE can also help you qualify for utility incentives. How to get started ODOE will process requests for services in the order they are received until available funds are spent.Here are the steps to get you started. 1.Call ODOE for an Energy Use Evaluation.This is a simple questionnaire,where you tell ODOE about your building energy systems and past energy use. 2.Send ODOE your completed Energy Use Evaluation for review.ODOE may schedule a site visit or preliminary energy audit based on the findings. 3.If the evaluation or energy audit shows cost- effective,energy-saving opportunities,ODOE will schedule an energy study.Before the study begins you must agree to install cost-effective projects. 4.ODOE assigns an engineering firm to complete the energy study. 5.ODOE reviews the energy study and recommends measures to install. 6.You install cost-effective projects with financing through loans,utility incentives,or your own capital improvements budget. Eligibility To be eligible for a grant,a building must: 1.be owned and occupied by an eligible school or hospital; 2.meet the federal definition of a public or private non-profit school or hospital; 3.have been built and certified for occupancy before May 1,1989;and 4.have not received a previous ICP study grant. Questions? For more information,call Connie Kepler toll-free 1-800-221-8035.In Salem call 373-7560. 4/20/94 625 MARION ST.NE,SALEM,OREGON 97310 PHONE 378-4040 TOLL FREE 1-800-221-8035 «date Plo Paton Nebes phyHadqrestion.oren,eat Aye 4do EtUE -KenRanking meth visseletes ;SOR,weeightaahaeCree,LSS.13)Ce).Ned to_deHye Th.sae pr Ha?=ECM.DG.pasted datecentersoPDP2-TLE plain tet wafor 1 LeveeHovonly.aPeovyPheECMsorimedr okSLAP.fo.SRS O.OR.SEAR QA .ee oT : :y . .og -,.oo oes . . .: ..A ',eee"* '. -'he N ... i '. . . sh.ve Plan Review Mstes 18 /r.,pst pore AA FO ed minis evs Po ; pds boxes should fpr before db 'oo,Feaplerd ton .of ason oo 7 ?p Ki feversvuNS ofl |rege-Zap cocle ya)wrong p>!|5,6)..ce|P 2:"The <pthent of «|defiesfd tnpONowdehyp-10%a TAS a IS Jo.or more.2,pp hi Parvbon ky ntysdneg ne Ble plone #for ICP morngey TRO,Cy does vot list apperdices !oe EMS ECM apps des Mp 207seeWAEVEinFleJEUENotesNedsEnergyUpePrfife-UE p.&3 rod3 fine for denead - aSeACh)vee)es cok,of He SLR.at 2ayews TC?)|OC 4! : ° . . ae . he pt . . . . , t a7 Le i . : | } i | : : | | || | - 4 i . ; - -_ . 1 ion a i ed en) doa op og : ; ; : : :* : ; 44a§:i{ii . , . . . « ; . . - . "4 ' : . : t i: . - . ! _- , Poa _ . ch. ' ' . - | - a " t| { 1 : j ;j i i - . ! fous ! ! ! 7 bor| _ otf . | eves ete cececeaeefee camo meee deeceee penen Conf ceehocaenes weep eeefeee eee pe Se ee Coes Sees Se ee 4 eeaaanany SEDC SEN ar aoe ene odo we feed i i | ! | ! | | boa. .? |} | Pe \\| : can { \ { i jt i | i - | | j Hjii { Office of Energy Conservation 1675 Broadway,Suite 1300 Denver,CO 80202-4613 (303)620-4292 September 30,1993 STATE PLAN FOR THE STATE OF COLORADO 2o,e)a7Paz2)e>a2jeNZz©Oo - <Zz.je)omsm - cam=ep)Zz - -TABLE OF CONTENTS Introduction Terms and Abbreviations A.Soliciting and Considering Views B.Notifying Eligible Institutions C.Procedures for Notifying Eligible Institutions D.Procedures for Submittal E.State Procedures for Evaluating and Ranking F.Procedures for Apportionment of Funds G.Hardship Criteria H.Encourage the Utilization of Renewable Resources I.Assuring Compliance with Rules and Regulations J.Procedures for Program,Technical and Marketing Grants K.Requirements for Energy Audit | L.Ensuring Implementation and Continuation of M&Os M.Procedures for not Supplant Funds N.Determining that Non-Federally Funded TAs are eligible PAGE 4StaDBowtaba28«<HeTealLaeROERBAorfsteriatstaiSesan 2,an|coh arpone ets ee :Ronwetseee2WyteAgien2MReesehRGELteeodesFinkeabyaeeats.Seeme,adies&wt"OREConnEeasO.Determining the Reasonable Selection of ECMs P.Procedures for State Management,Monitoring and Evaluation Q.Updated Technical Assistance Reports R.Qualifications for Technical Analysts S.Reapplication of TAs or ECMs T.Estimated O&M Savings U.Technical Assistance Program pursuant to 455.62 Vz.Coordinating Agency Information - W.Credit for TAs and ECMs X.Federal Share to be provided to Applicants 28 29 32 34 35 36 37 39 40 41 APPENDICES 1.Federal Register -Friday,February 19,1993 2.Technical Assistance Report Guidebook n -_ Ei=)rseegz=) mw Pu bes 3)oa===.a=)aS=}oi<=+==BB.055= =je=a=)e.3ma wo L} s in2YY YXs66\e)OortWw i mn ee ora gent1 pense eranatesaoawipe-. ere eeeon-Sefo tvansheerewie Reece ; Bi TM A,ORay be meer=otaveel SayTaeNOTE % P oe SoaESSE pacers eae inchet INSTITUTIONAL CONSERVATION PROGRAM INTRODUCTION The National Energy Conservation Policy Act (NECPA)was signed into law by the President in November of 1978.As part of NECPA,the Institutional Buildings Grants Program (IBGP),now referred to as the Institutional Conservation Program (ICP)was established.This Program is designed to provide financial assistance,in the forms of matching grants,for energy conservation activities in the following types of existing institutional buildings: 1)public and private non-profit schools; 2)public and private non-profit hospitals; The U.S.Department of Energy (DOE)is the agency responsible for administering the ICP nationwide.The Governor's Office of Energy Conservation (OEC)acts as coordinating agency for the Program in Colorado,and is responsible for receiving,reviewing and ranking grant applications in order of priority of funding. The first step of the ICP entails performance of relatively simple,low-cost surveys of the energy use patterns in a building.This "energy audit"will be used to determine the potential for energy savings through changes in operation and maintenance procedures,as well as,the need for energy conservation measures.The OEC developed an Energy Audit Workbook to be used by institutions when conducting the audit.After the energy audit,the institution may be eligible for technical assistance program money,and funds for energy conservation measures as well. The technical assistance audits to be funded are detailed,technical energy audits of buildings,conducted by professional engineers and/or engineer-architect teams.These technical evaluations enable institutions to identify appropriate energy conservation measures for their buildings.Such analyses also identify the estimated cost of the recommended conservation measures and the energy and costs savings that are likely to be achieved through their implementation. Schools and hospitals which perform a technical analysis with financial assistance from this Program,or those that perform equivalent analyses with their own money,are entitled to apply for funds to design,acquire and install energy conservation measures.Such measures, often referred to as "retrofits,"are physical changes or additions to a building for purposes ! Pe Gat RRSeee"fe'Pe "E- |Pe: nt te 0£34 .a hae ft -% . a ae oe: g 4 aes 2 4 ae kee 7:Ree *Pike ea)%SE a r=Bae th Rag oo.ayhdee Be.a ee Oe 4 ae wid .gy. %pak 4 - 4a hesra'"§ i ESSae3. a ey i%gehdPaes'A , $0 ae 'ny ;£h PZ i : a oe x - ei % ae ae .aSEyeP 7 to SUE i:i a wy an Le,E re Bea ? x3onH' eee -_1 i 3 &ura re" »% 4 os stower' of energy conservation.These measures may include systems using renewable energy sources.Utilization of renewable resources is encouraged in this Program,and institutions may apply for funds to add passive or active solar heating and/or cooling systems,solar or electric systems such as wind generators or photovoltaic cells and projects which use geothermal resources.Conservation measures which can pay for themselves in energy cost savings in a short period of time are given priority for funding under this program.oe,;canbe3oteoc8erwa"08WeeeAgaeMateleSolamellneeileOEOHTheStatePlanforadministeringtheICPisprovidedinthefollowingdocument.It covers management procedures as well as their methods to be used in awarding grants to institutions.aeaepeaihWrOF4oeim,makeFeREYSnegaonealieX% a y$Rgati.t4 AJ 4 Fy¢HI2 # raeli ygUE88SeOSTAakmocoedPEFEaeOEaesres'.oe:'5Sapeda! TERMS AND ABBREVIATIONS hee'MThe following terms and abbreviations occur in the text of the State Plan.For purposes ofclarification,a definition for each is provided below.ae.Haegadgets"HESPCPAABAWAessesodeRed2satoteee&bw Abbreviations 3 | e A/E Architects and Engineers oo Btu British Thermal Unit SE .Btu/ft*.British Thermal Unit Per Gross Square Foot mad CCF Hundreds of cubic feet of natural gas a |CFR Code of Federal Regulations or Federal Register agi)Cycle/Grant Cycle Period of activity relating to awarding grants ot DOE United States Department of Energy e 5 EA Energy Audit (performed with OEC workbook) vi ECM |Energy conservation measure ae .ECR Energy Consumption Report oana*EUI Energy use index (a normalized eae measure of a buidlings's annual Are energy use -BTU/ft*/Degree'Bae Days/Annual Operating Hours). g E$!Energy cost index :ICP.Institutional Conservation Program Kw Kilowatt or connected load (a measure of electrical demand) kwh -Kilowatt hour of electricity MCF Thousands of cubic feet of natural gas MLBS Thousands of pounds of steam a re Abbreviations Hs Fa)4 i M&O Maintenance &Operation MeasuresnesatOECGovernor's Office of Energy Conservation Pe?REY OMB.The Federal Office of Management and Budget 3 'TA .Technical Assistance Terms Rules and Regulations -U.S.Department of Energy rules and regulations for the Institutional Conservation Program,as published in the Federal Register,Vol.58,No.32, Friday,February 19,1993. State Plan or Plan -Colorado Plan for the Institutional Conservation State -Colorado es,PereterestetlitansPES Reference in Rules and Regulations(Appendix 1) Section 455.20 (a),455.20 (b) A.Soliciting and Considering Views of Eligible Institutions The Governor's Office of Energy Conservation has actively sought the views of eligible institutions during the development.of the State Plan and will continue to do so for subsequent revisions.The following organizations will be contacted to solicit their viewsonanychangesintheStatePlan: Colorado Hospital Association of Colorado Colorado Association of School Executives Colorado's Department of Higher Education Colorado Department of Education for K-12 Colorado's Department of Health On a more informal basis,OEC will solicit views from grantees both past and present on any revisions that would affect their grant management procedures and eligibility for receiving grants. B.Notifying Eligible Institutions and Coordinating Agencies of the Contents of the State Plan Upon original approval of the State Plan,the OEC immediately took steps to notify all eligible institutions and representative groups of the Plan's content through the A-95 State Clearinghouse.The OEC will continue to keep eligible institutions informed of changes. The organizations listed in A.above will also be informed of any changes in the State Plan. A copy of the State Plan will be available for review at the OEC at all times. ecs3&.aaz,'aeeldae,<PATSES,ASweeitSketwoaed”= Sy EYGeast.eeeincelacequageaiakantnhidSSioratgregtg ,Reference in Rules and Regulations (Appendix 1)Section 455.20 (c) C.Procedures for Notifying Eligible Institutions Applications for grants for technical assistance programs and energy conservation measures shall be submitted to the Governor's Office of Energy Conservation.The submittal process will be initiated by notifying institutions of approval of the State Plan (See Section B of this Plan)and in subsequent grant cycles by notification of availability of funds.InstitutionsexpressinginterestinparticipatingintheProgramwillbesentaninformationpacket containing materials needed to submit an application.Each institution applying will be assisted by an OEC staff member on a one-to-one basis,if necessary. ieheReference in Rules and Regulations (Appendix 1)Section 455.20 (d)asin..5a3.agveoynadtakeBt,etebseaieASBeeeURNggeaetattecatBlantoaeenjiaenSaiAyeD.Procedures for Submittal -Grant Application Packet onGe2eenofsyfeatseTieemlinieSphaaeegetPaThe grant application packets prepared by the OEC for use by institutions requesting funds for TAs and ECMs will contain a detailed explanation of the procedure for submitting a grant application,copies of application forms and instructions for their completion.In addition,the duties and responsibilities of grantees will be explained in detail.Copies of the packet will be made available to participating eligible institutions.AeseeneaeSpecifically,each packet will contain:Lee1.Copies of application forms for TAs and ECMs. 2.Information on the deadline for submittal of grant applications for the funding cycle. 3.An explanation of how an institution can obtain credit toward their share of TA cost for a previously conducted technical assistance program.wwAgeetong?YoStama:paSeeeadoroaacaaitad_An explanation of how funds expended by an institution for installation of one or more energy conservation measures may be counted toward its match for additional energy conservation measures.te|iti :5.A notification that institutions must certify they are able to meet theIaefinancialmatchrequirements. Bek 6.A discussion of eligibility requirements as specified in Section 455.61 and ee 455.71 of the Rules and Regulations.(See Appendix 1)-February 19,1993. ar 7 A notification that all technical assistance reports must comply with theahrequirementssetoutinthisdocument.(See Section N and Appendix 2) 8.A discussion of information required by 455.110 of the Rules and Regulations (See Appendix 1). 9,Listing of additional information required by the OEC,such as: a.Data needed to evaluate and rank applications in conformance with the criteria specified in Section E of the Plan. b.Data needed to evaluate and rank applicants for hardship funds in conformance with criteria specified in Section G of this Plan. c.Reports and related information needed to evaluate non-federally funded energy audits and TAs as described in Section K and N of this Plan. d.Documentation of TA analyst qualifications and freedom from financial conflict of interest as specified in Section R of this Plan. e.A listing and explanation of assurances required of grant applicants by DOE and the OEC,as discussed in Section I of this Plan. Milestones for Accomplishment Each grant applicant will be required to submit a schedule of milestone targets,and times and dates for completing a proposed TA or ECM.In an effort to standardize each applicant's presentation of this information,OEC will include instructions for writing proposed program schedules in the grant application materials.To assure timely and orderly execution of TAs and ECMs.OEC staff will review grantees'adherence to milestones at least semi-annually and provide assistance as necessary if problems are encountered.(See Section P of this Plan) 'To determine the grantees'adherence to proposed milestone dates,the OEC will require that each ECM grant recipient submit a semi-annual report until their program ends.These reports will include,amount,identification of accomplished and unaccomplished milestones, _problems encountered,and remedial actions taken or planned.In addition,during the on- site visits to a valid sample of institutions receiving financial assistance,an OEC staff member will review program records and adherence to program milestones.As previously mentioned,several Program monitoring functions will take place during site visitations. syaleReSNeMOrtaaeetBae!WeshrSeaMNtoAeSeeFASabeAEAlineiSesMapKeeneinPLSWETBESaanscolaagVFeaLeis,etasceryayayBAeoROWPSagLEhanpanehperu?cous,erERTLotAyahaOSI3MitfpALeenBe2:nt?airesAe=MEGBeTheeeRE.st:BoenRARSeedisGelertteeyonlegaldee6ONBEE,RehvettomsRaeagrarianEEGh,13SSSHUREAEAe'e!£aEET,RtwetClpsteeeee&eRecaetedandesSailfiTONEDedaeresJace5orPoOTTeCinturhteThe following steps will be taken in recording and reviewing grant applications and related materials.The procedures for reviewing applications are detailed in Section E of this Plan. 1, Timetable Each grant application received will be dated.These applications will be given a preliminary review by staff to determine eligibility and completeness. Applications which pass the initial review will be evaluated and ranked by the OEC staff. Applications from schools and hospitals recommended for funding,plus any runners up,will be sent to the designated state facilities agency for review and certification.(See Section E of this Plan). After ranking,OEC will apprise the institution it is being recommended for funding. Applications recommended for funding will be sent to DOE.All applicants will be notified whether and to what extent their application was or was not recommended to DOE for funding.If the building(s)are not recommended, the reason for the decision will be included.If DOE makes any changes to the approved applications which might affect ranking,OEC will then re-rank all applications. After their review,the DOE will notify the OEC and applicants of grant award winners. Announcement of availability of funds. The OEC will announce the availability of funds as soon as Congress appropriates the funds or as soon as it appears relatively sure that Congress will appropriate the funds.If the OEC elects to request applications,prior to the Congressional actions,each application will contain a statement about the uncertainty of funding. ateese=asl€238,”aMages,adaosona,SAeeeoSEeeteCaeNSomydSGertieGaahdAtiaRNAOpebeneaePathenieye:etfantsMB)?hynietyehBsBehe!BagergMREwegFAGacaeeaianti.apreseeOSeneeeS,neoaeBeTeeaesmRNSmeeae%inii LataRSaHenaiaa,®3SASHTeNESSareneoNee34hatetTygDue date of ECM Grant Applications. ECM grant applications from schools and hospitals will be due at the OEC thirty to ninety (30-90)days from the date of the announcement of availability of funds.Exact dates will depend on when funding is available each grant cycle. Due date of TA grant Applications. TA grant applications from schools and hospitals will be due at the OEC thirty to ninety (30-90)days from the date of the initial announcement of availability of funds.Exact dates will depend on when funding is available each grant cycle.15%of the total allocation will be set aside for technical audit grants.If all the TA money is not requested in the initial round of applications,OEC will accept applications throughout the fiscal year until the money has all been awarded. OEC Grant Review The OEC will review grant applications during the sixty to ninety (60-90)days immediately following the grant application due dates.For TA applications submitted after the initial round of grants,OEC will review them immediately to determine eligibility.During this time period,appropriate applications will also be reviewed by the designated state agencies for approval and certification. Submission to DOE At the end of the review period above,all ECM applications recommended for funding,plus any runners-up will be submitted to DOE.All institutions will then be notified by OEC of the status of their ECM application. Notification of Grant Award Winners *OEC and ECM applicants will be notified of grant award winners by DOE within thirty to sixty (30-60)days of the date OEC submits the applications to DOE for approval.The exact timing of this notice will be dependent upon the receipt of funds by DOE.TA applicants will be notified by OEC in the initial round of funding at the same time as the ECM applicants are announced.After the initial round,TA applicants will be notified of approval within thirty to sixty (30-60)days of the date OEC receives their application. 10 aRBeARelleeeoeoeSaposMesaegagBGaneeek>zeSeeReference in Rules and Regulations (Appendix 1)Sections 455.131 (a),455.131 (b),455.20 (e),455.62 -9;eRSpekeelaUSEETNrentalaneheDBEkehmSDL,BnataeerooeeeSYFeedE,State Procedures for Evaluating and Ranking Technical Assistance (TA)and Energy Conservation Measure (ECM)Grant Applications SayGin5SeSethSenhbareENSNo TA or:ECM applications will be ranked if there are fewer applications then money '.available.;FahieTechnical Assistance Program (TA)Evaluation and Ranking 45ee Applications for technical assistance are to be filed with the OEC on or before the deadlinex}established for such submittals for each grant cycle.Upon receipt,staff will examine theuapplicationtojudgetheapplicant's eligibility under the provisions of Section 455.61 of theaIRulesandRegulations(See Appendix 1)and to determine if the application appears to beicompleteundertheprovisionsofSection455.110.If,upon this initial review,theeapplicationdoesnotappeartobesubmittedbyaneligibleapplicantordoesnotseemto be complete,OEC will contact the institution asking for additional verification or information.If the preliminary review indicates that the application is submitted by an eligible applicant and is complete,it will be filed within the appropriate category for evaluation by staff.Two categories have been established,as follows:TA applications from schools,TA applications from hospitals.ee5.&ce.Bi:As soon as feasible after their receipt,TA applications will be reviewed by staff.In theaeinitialroundoffundin”if funds requested exceed the funds available for TAs,each ie]e application will be awarded a score based upon the ranking criteria listed below.ahagesa TA applications received after the initial round of funding will not have to be ranked.i Sigeaa ..: Rsee .The OEC staff will prepare a list of applications ranked,in descending order,according to their scores.The applications from schools and hospitals on this list which are recommended for funding,as well as runners-up,will be submitted to the appropriate facilities agency for review.The OEC has recommended that the Governor designate both _the Colorado Department of Education and the Colorado Commission on Higher Education as the Schools Facilities Agencies.In case of higher education,the Colorado Commission on Higher Education should work with the Department of Health,and the Consumer Protection Division of the Department of Health.These agencies will review and certify the ."2nevaSaatigg7esehye11 submitted applications to ensure that the TA does not conflict with State Plans or programs. Vv.When appropriate,the facilities agencies will coordinate their review with other State i]agencies and representative groups.Upon completion of their review,the facilities agenciesi.will return the applications accompanied by appropriate certifications to the OEC.CertifiedEi:TA applications recommended for funding,as well as certified runners-up,will be forwardedaetoDOE.uu?nt'EMEAoNereMeSie,The evaluation of TA applications will be based on the following criteria.Each criterion will be weighted in accordance with the points assigned to it,based on a 100 point scale.Seteaq Maximum Points Possible Criteria Bee ie :50 -1.Energy consumed per gross floor areaBieperyear.i iz 35 2.Energy costs per gross floor areaaayperyear. eB 15 3.Participation for the first time.RoytoferalBoiesShangeBNeREe100 (highest possible score)eatakebidcoachedacaSPveeteStaff will assign appropriate scores for each criterion.After these scores are determined, they will be totalled to derive a final score for the TA application. The following is a list of the scales to be used when deriving scores for each of the above criterion: 1.Energy consumed per gross floor area (50 points) The OEC feels that a single scale for deriving scores for energy consumption per gross floor area is inappropriate for all eligible institutions,therefore,two ranges will be used:one forschoolsandoneforhospitals. 12 In order to achieve an equitable relationship of energy use between schools and hospitals, energy data for hospitals will be converted to an equivalent school index by dividing by afactorof2.3.This factor was derived from the PEA study which indicated that a hospitalconsuming471,000 source Btu/ft?/yr is comparable in energy usage to a school that.consumes 204,000 Btu/ft/yr. hospital index =_-Btu /ft?/yr 2.38OuedataatetiingheeiTbatmeemiaseciAapteeIGagCnaevegeaoateeee yasThe school and adjusted hospital indices will be rank ordered.The maximum 50 points will be awarded to the building which ranks highest.Buildings which rank lower will be given points in conformance with the following formula: points =Btu/ft?/yr_of building x 50 Btu/ft?/yr of highest ranking building€SILCRESnSie,BeEE2.Energy costs per gross floor area per year (35 points) OEC determined that a single scale for deriving scores for energy costs per gross floor area per year is inappropriate for all eligible institutions.In order to achieve an equitable relationship of energy costs between schools and hospitals,cost data for hospitals will be converted to an equivalent school index by dividing by a factor of 1.4.This factor was 7 derived from the PEA study which indicated that a hospital pays $0.95/ft?while a$;comparable school pays $0.66/ft?(in 1982 dollars).oo:henaihGMBENFudetlmilPdesashet(eeiRetoehospital index =_-$/ft?/yr FantaslinerdanTcesacinseeccatycay 14 i t The school and adjusted hospital indices will be rank ordered.The maximum 35 points will hak:-be awarded to the building which ranks highest.Buildings which rank lower will be givenui'points in conformance with the following formula: aeae points =$/ft?/yr of building x 35 ST $/ft'/yr of highest ranking building 13 +wahSaatic2reyALRHhhoRalGperaeSn1esetYeBANSROSEhedRikamponINBaeSReteeenoejake'suGeiweneve!Yee.aleTTDateserAROMAaemergeMmLeceakaOeilaPbete.PapeereareOtCeceeaaaa3.Participation by an institution for the first time (15 points) The OEC feels it is important to encourage all institutions to participate in the Institutional Conservation Program.Since there are quite a few institutions that have never participated in the program,we should make every effort to ensure that first time applicants areencouragedtocontinueenergymanagementprogramsintheirbuildings. Energy conservation Measure (ECM)Evaluation and Ranking Grant applications for energy conservation measures are to be filed with the OEC on or before the deadline established for such submittals for each grant cycle.Upon receipt,staff shall review the application to judge an applicant's eligibility under provisions of Section 455.71 of the Rules and Regulations and to determine if the application appears complete under the provisions of Section 455.131 (c).If,upon this initial review,the application does not seem complete,OEC will contact the institution and get further verification or information.An application not acted upon may be resubmitted in a subsequent program cycle.If the preliminary review indicates that the application is submitted by an eligible applicant and is complete,it shall be filed within the appropriate category of ranking by the staff. As soon as feasible after their receipt,ECM applications will be reviewed by staff.Each application will be awarded a score based upon the ranking criteria listed below. The OEC will prepare a list of applications ranked,in descending order,on a measure by measure basis,according to their scores.The applications on this list which are recommended for funding,as well as runners-up,will be submitted to the appropriate facilities agency for review.These agencies will review and certify the submitted applications to ensure that the ECMs which are proposed do not conflict with State plans or programs and to protect against violations of State laws or codes.When appropriate,the facilities agencies will coordinate their review with other agencies.Upon completion of their review,the facilities agencies will return the applications accompanied by appropriate certifications to the OEC.Certified ECM applications recommended for funding,as well as certified runners-up,will be forwarded to DOE.The evaluation of ECM applications will be based on the following criteria.Each criterion is weighted in accordance with points assigned to it,based on a 100 point scale. 14 piesMaximum Points Possible Criteria piIGtSEERESinsteetreeaedreaelasis:CRERAESTnayanteATSoyBAGy.aanRsSORiaiaaniTdCELOPREDhayecatDos,SatsocheWe:*oepeeaa:a.Steeeanyeas50 1.Simple payback period for proposed measure. 10 2.Conversion to renewables. 10 3.Types and quantity to be saved 10 4,TA Quality 10 5.Participation for the first time 10 6.Reapplying for ECM not'funded in previous cycle 100 (highest possible score) Staff will assign appropriate scores within the allowable point totals.After scores are determined for each criterion,they will be.totalled to derive a final score for the ECM application. The following is a listing of the scales for scoring each of the above criterion and the points to be assigned to each: 1.Simple payback period for proposed measure (50 points) The simple payback period for each measure proposed will be determined by dividing the total estimated cost of the measure by the total projected annual energy savings.The savings includes the effect of interactions among all the proposed measures.Applications will be considered only if each proposed measure,has a payback of between two and ten years. The score to be assigned to the average simple payback period is: points =62.5 -(6.25 *payback period) Take the simple payback multiply it by 6.25 and subtract it from 62.5 to get your points.So that means a payback period of 2 years gives a score of 50 and a payback period of 10 years gives a score of 0 points. 15 ie,er5onhabyaSteedCotesonesBetS=1aatoe4earaibaaohetdcidened.DchdBgyGIhccakesinetawetdOypcre,ee6d.agsoa"ioPp4ihAicoAeaHigeene:EY24Seger3oebecanitilmiteayfensaiuneis y :B2k . &3 &an zCeteenpoh atetssuuihthitisenamenwenosenanernee2.Conversion to renewable energy sources (10 points) The intent of this criterion is to help ECMs which save conventional energy through the use of renewable energy sources to compete with other ECMs.Renewable energy sources include solar (for heating,cooling,or electricity generation;active or passive)wind, geothermal.Such assistance is necessary because ECMs which utilize renewable resourcescommonlyhaveahigherinitialcostandthereforealongersimplepaybackperiodthanotherenergyconservationmeasures.You will receive the full 10 points by switching to a renewable. 3.Type and quantity of energy to be saved (10 points)_ No distinction for fuel type saved will be made,as all sources are considered at an equalpriorityregardingtheneedforconservation.An advantage will be given to measures that save more energy than others.The total energy savings (BTUs)of each ECM,after considering interactions with other ECMs,will be used to score this category.Site energy savings will be used,so the conversion factor for electricity savings measures will be 3,413 Btu/kwh. Among all the TAs in the cycle,the measure with the highest energy savings will be given a score of 10.All other ECMs will be given a score based on the following: ECM energy savings (Btu) Points =*10 Savings of ECM with highest energy savings (Btu) 4,TA Quality (10 points) This criterion attempts to give a greater weighting to applications which are supported by high quality technical assistance reports.The score is determined by several steps.The first is a series of points that are awarded for each required item that is included in the TA as originally submitted.Maximum points (9 points maximum)are awarded if the TA does not require any corrections.During the second review,discounted points (1/3 the initial value) are awarded for each requested correction.Points also are awarded when the corrected TA is returned within the allotted time.(1 point). Total Points =(points for first TA review +points for second TA review) /105 *9 +(points for return rate)=10 points maximum 16 spe)Jyeas<ivooETA,ee-5.Participation by an institution for the first time (10 points)cae po TTS 7 The OEC feels it is important to encourage all institutions to participate in the Institutional isitsibageeConservationProgram.Since there are quite a few institutions that have never participated ("°°");in the program,we want to make every effort to ensure that first time applicants areencouragedtostartenergymanagementprogramsintheirbuildings.atyehekaeoePQASyEPMeats,BnBoeeed?76.Reapplying for ECM(s)that were not funded ina previous cycle (10 points) The OEC feels it is important to encourage all institutions to establish an energy management program in their institutions.Due to allocations being cut and an increased interest in the ICP Program,some institutions may become discouraged by not receiving funding for their ECM projects.If an institution applied for an ECM grant in a past cycle, but did not received funding because the measure(s)did not rank high enough,and that institution reapplies in a new cycle for the same measure(s)they will be awarded this 10 points to increase their chances of funding.TteewoSNERT!OBOEASROPEAERTSARENSMEME:ES1BORNMEMENGALEOSLLOIEEATEUSLoLPPTaoymipSoinPomeratrakeheeeetewheeeeaeRate"SriaAetaentredoenteenwoappeeoteeBa,cage06Fe17 Raliond.4.actaatSaleen Reference in Rules'and Regulations (Appendix 1) Section 455.20 (f) F.Procedures For Apportionment of Funds Among Eligible Institutions The State shall ensure equitable allocation of funds by evaluating submitted applications separately by category,pursuant to the provisions of 455.20 (f)of the Rules and Regulations and outlined below.Out of the allocation of funds 15%will be set aside for technical assistance costs which includes the cost of a technical audit,technical audit credits and technical audit updates.The following categories have been established: 1,Applications for technical assistance from schools and hospitals. 2.Applications for energy conservation measures from schools and hospitals. Funds for technical assistance and for energy conservation measures for schools and hospitals will also be allocated to institutions on the basis of the ranking criteria for TA applications and for ECM applications established in Section E of this Plan.Each applicant, regardless of institutional type,will compete for funds from the same allotment.However, the Rules and Regulations specify that schools as well as hospitals must receive at least 30% of the funds allotted for TA and for ECM grants.To conform to this requirement,the OEC will first list in order of ranking all applications for TA and ECMs received from schools and hospitals until funds are exhausted.Then,the list will be reviewed to determine if at least 30%of the funds are allocated to schools as well as hospitals.If this is not the case, schools on the list will be dropped in favor of the next highest ranked hospitals,or vice- versa,in order to achieve this 30%minimum requirement.If more than 30%of the funds are requested by either schools or hospitals,then the buildings shall compete strictly on the basis of their ranking for the additional funds. The Governor's Office of Energy Conservation shall make every effort to apply funds in the manner specified.In the event the State deadline for the submission of applications passes with insufficient approved applications in hand to fully use the amounts set aside for schools or hospitals,the State may recommend other eligible applications to use the remaining funds. 18 A ceiling of 15%or $100,000,whichever is less,will be levied on the amount of federal funds any institution may receive unless federal money available exceeds grant funds requested.Should this be the case,institutions requesting more than 15%of funds or more than $100,000 will be funded the excess grant money in order of ranking. The 15%ceiling of the available funds for the cycle will be calculated on the total allocation less the State's administrative money.This 15%will include ECM costs,TA credits,TA update credits,ECM credits and hardship. The Colorado Office of Energy Conservation in an effort to promote innovative matching fund sources and to increase the amount of grants that can be awarded,will consider in each grant cycle setting aside a percentage of Colorado's allocation to be used for special grant projects.These projects will all be in accordance with the Rules and Regulations of the ICP program.Procedures for submittal of grant applications and ranking criteria for these special projects will be developed and approved by the Department of Energy before applications are accepted. Procedures for equitable distribution of hardship funds are covered in Section G. 19 Reference in Rules and Regulations (Appendix 1) Section 455.20 (g) G.Hardship Criteria To identify schools and hospitals experiencing severe hardship and to determine an applicant's qualified level of federal funding in excess of 50%,the OEC will use the evaluation criteria listed on the following pages.Separate criteria will be used for evaluating schools and hospitals respectively,to allow for the differences in the financing and energy use patterns of these institutions.In this way,the OEC will ensure that it does not discriminate among eligible applicants on the basis of institutional type.State-funded institutions are not eligible for hardship funding. Evaluation of hardship applicants will involve several steps.First,the figure provided by the institution for each criterion will be given a score,based on a predetermined criterion scale.This score will then be multiplied by a weighting factor to obtain the overall criterion score.Since two criteria are applied,the criterion scores will be added to arrive at a final evaluation score for the applicant.This score will be compared to an established rating scale to determine if the applicant qualifies for hardship,and,if so,the level of funding to which the institution is entitled.The criteria and the scales to be used for schools and hospitals follows. 20 HOSPITAL HARDSHIP APPLICATION To receive hardship assistance,a hospital may qualify for one or both of the criteria listed below.Buildings must be owned and primarily occupied by the hospital.Please show your math on the Iecft hand side of the page. Criteria #1 -Energy Consumption (IF YOU QUALIFY,PLEASE ATTACH A COPY OF THE HOSPITAL'S TOTAL ANNUAL OPERATING COSTS INCLUDING ENERGY COSTS FOR THE MOST RECENT COMPLETE FISCAL YEAR) Calculate the ratio of the hospital's total annual building energy costs (utility data)to the TOTAL annual operating cost.Fuels used for transportation should not be included in the energy costs. Factor Scale .Weighing Criterion Factor Score Ratio (%)Points 2.00 -2.25 2.26 -250° 251 -2.75 Annual Building Energy Cost =2.76 -3.00 Total Annual Operating Cost 3.01 -3.25 :3.26 -3.50 3.50 and over multiply by 8 =epeprorCriteria #2 -Borrowing Capacity IF YOU QUALIFY,PLEASE ATTACH AN AUDITED FINANCIAL STATEMENT AND A STATEMENT OF USES OF EXISTING CURRENT ASSETS FOR THE MOST RECENT COMPLETE FISCAL YEAR) This is a two step process - a)The ratio of Current Liabilities to Current Assets must be .65 or more and; b)The ratio of Total Liabilities to Total Assets must also be .65 or more. Points are awarded according to the b)ratio as specified below: Borrowing Capacity Pots 65.0 -675 1 67.6 -70 15 710 -725 2 72.6 -75 2.5 muluply by .2 = 716.0 -775 3 716 -80 3.5 80 and over 4 Total of Criteria Scores 20-A HARDSHIP FUNDING LEVELS FOR HOSPITALS THRESHOLD TO QUALIFY -1.0 Total Criteria Score 1 1.1 1.2 1.3 1.4 15 1.6 1.7 1.8 1.9 2.0 2.1 2.2 2.3 2.4 %of federal funding 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 4.0 or over 20-8 Total Criteria Score 90 2.5 2.6 2.7 28 2.9 3.0 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 %of federal funding 75 16 77 78 79 80 81 82 83 84 85 86 87 88 89 SCHOOL HARDSHIP APPLICATION To receive hardship assistance,a school may qualify for one or both of the criteria listed below.Buildings must be owned and primarily occupied by the school Please show your math on the left hand side of the page. Criteria #1 -Energy Consumption (IF YOU QUALIFY,PLEASE ATTACH A COPY OF THE SCHOOL DISTRICT'S TOTAL ANNUAL OPERATING COSTS INCLUDING ENERGY COSTS FOR THE MOST RECENT COMPLETE FISCAL YEAR) Calculate the ratio of the school district's total annual building energy costs (utility data)to the TOTAL annual operating cost.Fuels used for transportation should not be included in the energy costs. Factor Scale Weighing Criterion Ratio (%)Factor Score 4.00 -4.4 450 -5.0 5.10 -5.5 5.60 -6.0 6.10 -6.5 6.60 -7.0 7.10 -75 7.60 -8.0 Annual Building Energy Cost =8.10 -8.5 Total Annual Operating Cost 8.60 -9.0 9.10 -9.5 9.60 -10.0 10.10 -10.5 10.60 -1L0 11.10 -11.5 11.60 -120 12.10 -125 12.60 -13.0 13.10 -13.5 13.60 -14.0 14.10 and over multiply by 25 =SRREYSSAESSRRELSRBRERBEGCriteria #2 -Local Economic Base -PUBLIC SCHOOL DISTRICTS ONLY Find the county in which the school is located on the Census Criteria table.Using the scale below,determine the school's score for this criteria. Median Family Income Points Median Family Income Points 16,500 and below 28 21,501 -22,500 8 16,501 -17,500 24 22,501 -23,500 7 multiply by .75 = 17,500 -18,500 20 23,501 -24,500 6 18,501 -19,500 16 24,501 -25,500 5 19,501 -20,500 12 25,501 -26,500 4 20,501 -21,500 10 26,501 -27,500 3 total of criteria scores 20-C CENSUS DATA .County'a Medium Family Income County Medium Family Income $30,522 .Lake $24,708 oats 20,265 La Plata 25,759 |:1]Arapahoe 37,234 Larimer 29,686"Far ohuteta 22,894 Las Animas 16,286ETEBaca18,602 Lincoln 20,595UUBent18,977 Logan 22,065 isgat j }:Boulder 35,322 Mesa 23,698 ane h :*|Chaffee 21,174 Mineral 19,330i}esi is!Cheyenne 24,341 Moffat 31,615 Sti.|.Clear Creek 33,149 Montezuma 22,491 hid:"?"Conejos 14,188 Montrose 22,610 *4°"°Egstilla 13,057 Morgan 22,849 Crowley 16,088 Otero 18,178 Custer 20,000 ' Quray 27,500 Delta 18,532 Park 32,102 .:Denver 25,106 Phillips 21,484 >Dolores 19,952 Pitkin 39,991 oe Douglas 51,718 Prowers 20,625 Eagle 36,931 Pueblo 21,553 Elbert 36,273 Rio Blanco 29,243 EI Paso 29,604 Rio Grande 19,193 Fremont 19,988 Routt 31,409 Garfield 29,176 Saguache 15,853 Gilpin 31,898 San Juan 26,167 Grand 29,991 San Migual 30,578 'Gunnison 23,013 Sedgwick 19,335 i Hinsdale 26,250 Summit 35,229 Huerfano 14,730 Teller 32,209 Jackson 20,938 Washington 20,637 Jefferson 39,084 Weld 25,642 Kiowa 21,417 Yuma 22,249 Kit Carson 22,125 HARDSHIP FUNDING LEVELS FOR SCHOOLS THRESHOLD TO QUALIFY -5.0 Total Criteria %of federal Total Criteria %of federal Score funding Score funding 5.00 -5.49 60 12.50 -12.99 75 5.50 -5.99 61 13.00 -13.49 76 6.00 -6.49 62 13.50 -13.99 71 6.50 -6.99 63 14.00 -14.49 78 7.00 -7.49 64 14.50 -14.99 79 7.50 -7.99 65 15.00 -15.49 80 8.00 -8.49 66 15.50 -15.99 81 8.50 -8.99 67 , 16.00 -16.49 82 9.00 -9.49 68 16.50 -16.99 83 9.50 -9.99 69 17.00 -17.49 84 10.00 -10.49 , 70 17.50 -17.99 85 10.50 -10.99 71 18.00 -18.49 86 11.00 -11.49 72 18.50 -18.99 87 11.50 -11.99 B 19.00 -19.49 88 12.00 -12.49 14 19.50 -19.99 89 20.00 OR OVER 90 20-E Before consideration for hardship funding,an institution must first qualify for a matching funds grant along with other eligible applicants.Further,the order of ranking resulting from the evaluation process explained in Section E of this Plan will be maintained when hardship criteria are subsequently applied. If Colorado's hardship application is exhausted before all qualified hardship applicants can be recommended for additional funding,the OEC staff will contact the applying institution's specified representatives.If they agree-to provide 50%match monies in spite of their request for hardship consideration,they will be recommended for 50%federal funding.If they are unable to make the match,their application will be withdrawn and staff will proceed down the ranked list until the allocation is exhausted by a non-hardship applicant, or a hardship applicant that agrees to 50%federal funding only. No hardship applicant may receive over 20%or $40,000,whichever is less,of federal hardship funds unless federal money available exceeds grant funds requested.Should this be the case,institutions requesting more than 20%of hardship funds or more than $40,000, will be funded the excess grant money in order of ranking. 21 Reference in Rules and Regulations (Appendix 1) Section 455.20 (h) H.Encourage the Utilization of Renewable Resources Colorado has been endowed with abundant solar and geothermal resources and has a vital interest in their development.With a well-established infrastructure supporting the utilization of renewable energy resources,solar energy in particular,the State is in an excellent position to stimulate the implementation of solar and geothermal projects. The OEC has a policy of encouraging the use of renewable energy resources and has a staff member devoted to that purpose.Steps will be taken to encourage the use of renewable resources*in this Program,including: 1.Use of evaluation and ranking criteria specified in Section E of this document. In particular,the weighting points assigned to the second energy conservation measure evaluation criterion (the type of energy to which conversion is proposed). Presentation of solar energy information through workshops. Education of building owner/operators through publication of relevant solar/geothermal news in the EnergyTalk. Continuation of OEC efforts to encourage solar energy use,e.g.,workshops for various special interest groups,publications,etc. *As stated in the summary of 10 CFR Parts 450 and 455 of the Rules and Regulations,the Program and implementation of energy conservation measures,including assistance for solar and "other renewable resource measures.”For the purpose of this Program,OEC has included geothermal energy sources in the definition of "renewable resources". 22 Reference in Rules and Regulations (Appendix 1) Section 455.20 (i) I.Assuring Compliance with the State Plan,Federal Rules and Regulations,and other Energy Conservation Programs Grantee Assurances The Governor's Office of Energy Conservation will require written assurance from applicants certifying that they will comply with requirements of the State Plan,Federal Rules and Regulations,and other state and federal energy conservation programs when expending federal grant monies.To obtain such assurances,there will be a special form with the grant application materials which lists the assurances required.An official of the applying institution will have to sign this form to certify that the institutions will comply with the state policies.A grant application will not be considered complete without a properly signed assurance form. Further,Program staff will conduct periodic field visits to a valid sample of the institutions awarded grants.During these visits the staff member will review a program's financial records and interview program staff to monitor compliance with state and federal requirements.A standard procedure for conducting these field visits will be developed,as well as a uniform record-keeping system.This on-site investigation will be coordinated with other monitoring functions related to the Program. Office of Energy Conservation Assurances The Office of Energy Conservation will also comply with all state and federal requirements, as certified in Colorado's State Application for Schools and Hospitals Grant Program,which is on file at the Department of Energy,Denver Support Office in Golden,Colorado. 23 Reference in Rules and Regulations (Appendix 1) Section 455.20 (j) J.Procedures for Program,Technical Assistance and Marketing Grants OEC does not have any programs planned for program,technical assistance or marketing at this time.This decision will be evaluated on yearly basis and changes will be made if necessary. Reference in Rules and Regulations (Appendix 1) Section 455.20 (k) K.Requirements for an Energy Audit For Technical Assistance Grants,Grantees are required to complete an energy audit.OEC provides a workbook with the grant application packet that needs to be completed and returned with the application.This workbook is divided into two sections:Section 1 is a building energy consumption inventory;Section 2 is an energy audit checklist that requires a walk-through on-site inspection of the building to identify conditions that result in wasted energy,and to indicated energy saving potential through operating and maintenance procedures and possible energy conservation retrofits.(See Appendix 3) This walk-through energy audit can be completed by a certified energy auditor,a Colorado licensed engineer or a qualified individual who is preapproved by the ICP Program Manager. 24 Reference in Rules and Regulations (Appendix 1) Section 455.20 (1) L.Ensuring Implementation and Continuation of Energy Conservation Maintenance and Operating Procedures To ensure that audit recommendations for energy conservation maintenance and operating procedures are implemented,these procedures will be followed: 1.Applicants for grant awards will be required to submit: a.written assurances that all energy conservation maintenance and operating procedures identified in an energy audit and/or technical assistance program have been implemented,or a written justification for not implementing specific identified procedures prior to the submittal of grant application.This justification must be made on the basis that: i) ii) iii) iv) The recommendation is infeasible because of factors not considered by auditor or analyst; 'There is a cost involved which exceeds the institution's limit on operating expenditures,provided it is shown a budget request has been made to implement the recommendation and assurance is given that the change will be effected at some specific future date; The implementation of the change requires some item of supply or material which is not presently available;or Other factors subject to approval by the Secretary after review by the OEC and the DOE on a case-by-case basis. OEC will continue to stress to grantees the importance of implementing a regularly scheduled preventative maintenance and operation program for each of their buildings to ensure future energy savings. 25 Reference in Rules and Regulations (Appendix 1) Section 455.20 (m) M.Procedures To Ensure That Assistance Will Supplement_and Not Supplant Other Funds Since the intent of this Program is to provide aid to eligible institutions to develop and implement energy conservation programs they might not otherwise be able to undertake,the OEC will require that grant funds not be used to subsidize programs that institutions are able to finance with monies from state and/or local sources.Applicants will be required to submit a written assurance in the grant application certifying that requested funds will be used to supplement,and not supplant,state,local or other funds.This assurance will be included on the assurance form described in Section I of this Plan. The OEC will also require grantees to state that they will not use cash contributions from other federal sources to match the federal monies allocated for TAs and ECMs.This includes personnel hired with monies from other federal programs.The only exception to the exclusion of the use of federal funds for matching purposes are those monies received by hospitals for Medicare and Medicaid.These funds are exempted because they are not viewed as direct allocations but as a form of reimbursement for medical costs incurred by patients. In addition to requiring the written assurance,the OEC will conduct spot checks of a sample of grantees when performing the monitoring review discussed in Section P of this Plan. 26 Reference in Rules and Regulations (Appendix 1) Section 455.20 (n), 455.62 and 455.63 (a) N.Determining That Non-Federally Funded Technical Assistance Program (TAs)Are In Compliance With Federal Regulations To determine if a non-federally funded Technical Assistance Program is in compliance with federal regulations,the OEC will: 1.Require that a complete report of the TA be submitted to OEC for review. This report must show that the TA is in compliance with the Rules and Regulations,Section 455.62 and 455.63 (a). Require that the individual or team that performed the analysis meet the qualifications criteria specified for technical assistance analysts in Section R of the Plan.In addition,an OEC staff member may make an on-site visit to interview a technical assistance analyst and review his/her methodologies. Require that the non-federally funded TA be reviewed for the same completeness as a federally funded TA.OEC will require the analyst to submit any additions needed to ensure this completeness. Require that the non-federally funded TA will include the information required in an energy audit (Section K)but not necessarily have OEC's workbook attached. Require that the analysis be as comprehensive as required by this State Plan. It must deal with the entire building,not just one system or subsystem,and must consider all reasonable energy conservation measures. 27 Reference to Rules and Regulations (Appendix 1) Section 455.20 (0) O.Determining the Reasonable Selection of Energy Conservation Measures to be included ina Technical Audit OEC sees the purpose of the Technical Audit (TA)Program study to be twofold: 1.To provide the institution owner with a program for continuous energy management that includes:a comprehensive description of the facilitys energy use characteristics;a thorough evaluation of the opportunities which exist for conserving energy through operation and maintenance (M&O)measures in the facility;a thorough evaluation of the opportunities which exist for implementing feasible energy conservation measures (ECMs)which save dollars and/or energy;and a thorough and accurate analysis of the savings in dollars and energy that can be obtained from implementing the M&O and ECM measures. 2.To identify and evaluate energy conserving M&O measures and feasible ECMs in order to support a possible application for financial assistance. At the present time,OEC does not limit the number or types of measures to be studied in a TA.We will be probably be adopting a simplified TA for smaller buildings,but this will not go into effect before Cycle XVII. If a group of structures can not logically be covered by a single TA,OEC engineers will evaluate such a situation on a case-by-case basis and make a determination as to the need for more than one TA. 28 Reference to Rules and Regulations (Appendix 1) Section 455.20 (p) P.Procedures for State Management,Monitoring and Evaluation The Management System 'The OEC is the principal state agency responsible for managing the Program.The OEC works as a coordinating agency between DOE and the Grantee.In this capacity the OEC may perform the following functions: 1,'The OEC will prepare public notices and media releases concerning the program.Information about program changes,opportunities and other related items is disseminated via EnergyTalk,program brochures and summaries,telephone calls and press:releases. The OEC acts as a coordinating agency between all program participants and DOE.Lines of communication run from DOE,through the OEC,to the Grantee (or participant),and vice versa.Information about all aspects of the program is available from the OEC staff. The OEC is responsible for grant application review and recommendation. As grant applications are received for each funding cycle,the OEC logs them in,reviews them for completeness,requests any necessary changes and makes funding recommendations to DOE.See Section E of this plan for details.If time and funding allow,the OEC may conduct grant application workshops in central areas around the State to assist applicants in completing their applications correctly. During the program cycle the OEC may,if time and funding allows,conduct a number of grant management workshops to assist grantees in grant administration. The OEC also reviews and corrects,if necessary,all grantee reports and all requests from grantees for budget extensions,changes in scope or other grant revisions. The OEC contacts all active grant recipients on a regular basis (average once per month)to ensure all grant requirements are met and all records maintained. 29 The Monitoring System The OEC is responsible for monitoring TAs and ECMs to determine if proposed and approved project activities are in fact taking place in accordance with program guidelines and to determine the Grantee's adherence to assurances,certification and special conditions. Monitoring will be performed on a sample of Grantees equal to at least 10 percent of awards in any one cycle,a minimum of three ECM grantees will be monitored yearly.In general,the largest dollar value Grantees will be monitored first,with the others monitored in descending value.However,exceptions to this system are those Grantees who request a visit by the staff for technical assistance or who have indicated by erroneous reports or in some other manner that they may be failing to follow program requirements. The actual monitoring process relies on an on-site check by program staff.Standard monitoring forms have been developed for use by all monitors.The forms are provided in Appendix 4.The DOE will be informed immediately upon the discovery that proposed and approved project activities are not proceeding in accordance with program guidelines. The Evaluation System Program evaluation is composed of two areas:(1)energy and dollar savings;and (2) program delivery effectiveness. (1)Energy and Dollar Savings Evaluation This component tracks and compares a building's energy use and cost between years. The system is computerized and makes allowances for variations in building size, weather,and operating hours.With this reporting system actual savings and measures of building performance are available.Annual savings can be tracked and roughly related to ICP activities. These annual energy use or consumption reports are required by the State Plan on all buildings receiving Technical Assistance and Energy Conservation Measure Grants The reports are requested from all participants.Annual Energy Consumption Reports (ECR)cover usage and cost from January through DecemberofeachyearandareduenolaterthanJanuary31. The data base for each building will consider the first year prior to completion of a workbook energy audit as a base year.The annual reports will be sampled to provide an estimate of the energy savings from conservation activities. 30 Performance is measured via two indexes --one for energy and one for dollars.The energy use index or EUI is based on Btu consumption,while the energy dollar index or E$I is based on dollars of energy cost.Both of these are modified to account for building size (square feet),weather (heating degree days),and rough usage patterns through annual operating hours. EUI =Btu/ft?/DD/Annual Operating Hours ESI =$/ft?/DD/Annual Operating Hours (2)Program Delivery Effectiveness Evaluation Program delivery evaluation consists of both quantitative and qualitative analysis.The evaluating criteria for most activities are described in the annual program plan.The following list of evaluation criteria are some of the more important factors relative to program delivery effectiveness: -%of State grant allocation awarded -%of recommended dollars awarded -Distribution of awards by category and geography -Distribution and target of hardship assistance -Distribution and target of hardship assistance -#of institutions and buildings funded -#of dollar amounts of funded projects completed -Level of compliance with program regulations ---administration ---O &M implementation ---ECM implementation -Penetration rate of program into #of eligible institutions and buildings -Evaluation of assistance,materials,and instructional sessions -Communication of program information All evaluation will be conducted on a sampling basis.The data base for the selection of the sample will consist of those institutions that are able to provide us with accurate utilityconsumptiondatafortheentireevaluationperiod.We will make every effort to get this information from all grant recipients,but we will only sample the data for evaluation purposes. The OEC does not have any special requirements for hospital certifications or special school certifications.This is handled by the Department of Health and Department of Education, both of whom,review the applications before awards are made. 31 Reference in Rules and Regulations (Appendix 1) Section 455.20 (q) Q.Updated Technical Assistance Reports OEC will require an update of a technical assistance reports if the original report is more than three years old.Also,an institution has the option of doing an update,at anytime,for the following reasons: 1.To take advantage of any new technologies 2.A change in energy cost savings because of change in fuel cost 3.A change in the cost of the measure 4.A change in energy savings because of a physical or operational change to a building 5.A change to the scope of an existing ECM,usually resulting in different costs and/or savings. 6.New ECM(s)added The minimum required components of an update are: 1.A dated/signed certification by a qualified analyst 2.A record of the most recent 12 months energy consumption,by fuel type,and energy use index if the original TA,or latest complete update,is more than three years old. 32 3.Verifications of energy cost rate such as utility rate schedules and fuel suppliers'invoices 4.Supporting information such as reasons for ECM cost changes, descriptions of any significant physical or operational changes since the completion of the original TA,previously installed ECMs,etc. 5.Interaction with previously installed ECMs The underlying principle in determining content of a TA update is that the combination of information in the update and the original TA must support the updated ECMs in the same manner as in an original TA report. Also,as with a TA,the TA update must be completed prior to the start of projects funded by an ICP grant,including those for which ECM credit has been requested. 33. Reference in Rules and Regulations (Appendix 1) Section 455.20 (r) R.Qualifications for Technical Analysts To qualify as a technical analyst for the Program,the OEC requires that such analysts: 1.Have experience in energy conservation and be a registered professional engineer licensed under the regulatory authority of the State of Colorado;or Be an architect-engineer team,the principal members of which have experience in energy conservation and are licensed under the regulatory authority of the State;and Be free from financial interests which conflict with the proper performance of their duties. The participating institution must require that these qualifications be met.Such qualifications will be reviewed by OEC staff to determine compliance.Each participating institution will be required to submit a statement from the technical analyst team with their grant applications which includes: 1.Proof that the analyst(s)is licensed as a professional engineer or an engineer/architect team in Colorado. A statement certifying the ability of the analyst(s)to perform a technical assistance analysis and certifying that the analyst(s)is free from financial conflict of interest.These statements must be signed by the analyst(s)and will be included in the assurance form described in Section I of.this form. 34 Reference to Rules and Regulations (Appendix 1) Section 455.20 (s) S.Reapplication of Technical Audits or Energy Conservation Measures The OEC will consider accepting applications for technical assistance programs or energy conservation measures which were included in earlier approved grant awards but which were not implemented and for which no funds were expended after the original grant award on a case-by-case basis.The institution will need to reassure OEC,to the best of their ability, that their intent was to complete the audit or do the energy conservation measure when they made application but circumstances made it impossible to do so. Reapplications will be ranked below the new applications. 35 Reference to Rules and Regulations (Appendix 1) Section 455.20 (t) T.Estimated O &M Energy Savings,Appropriate ECMs and Estimated Grant Program Costs Estimated O &M Energy Savings Three sources have provided data on estimated O &M savings:(1)participant survey;(2) professional A/E's and analyst;and (3)participant studies.A participant survey conducted by OEC revealed that the average savings is 12-15 percent.Professional analysts estimate that 25 percent can be saved through conscientious pursuit of conservation.Participant studies and reports show wide variations with an average of about 12 percent.The range of savings runs from almost 0 for buildings with pre-established comprehensive programs to 45 percent for some particularly out-of-tune buildings with a sophisticated maintenance staff. 'OEC uses 12 percent as an overall or aggregate savings figure for in-house identified O & M's and an'additional 5 percent for O &M's identified in a TA audit. Appropriate ECMs OEC uses the federal guidelines and suggestions outlined in 10 CFR 455.62. Estimated Grant Program Costs Technical Assistance Programs can vary from a low of 4-6 cents per gross square foot for audits done in-house to highs of 15-20 cents per gross square foot for unusually complex, remotely located or very small buildings.The average cost of a TA is 10-12 cents per gross square foot.TA costs normally consist of fixed costs on size and/or complexity of a building.Small buildings under 20,000 square feet often cost more per square foot because of the necessity of covering fixed costs.Conversely,larger buildings often have a lower per square foot cost because of economics of scale. Energy conservation measure programs have enormous ranges from a few hundred dollars to millions of dollars.These are so diverse there are no useful rules to thumb for estimating costs.This is a financial decision each institution must make on the basis of its own resources. 36 Reference in Rules and Regulations (Appendix 1)Section 455.20 (u) U.Technical Assistance Program pursuant to 455.62 1.Colorado Conversion Factors For Btu Content of Fuels Electricity (source)11,600 Btu/Kwh for conversion and cogeneration ECMs only * Electricity (site)3,413 Btu/Kwh for all other ECMs Fuel Oil #2 |138,000 Btu/GAL Fuel Oil #6 148,000 Btu/GAL LPG (Propane)91,500 Btu/GAL Steam 980,000 Btu/1000 POUNDS** Coal 8,000 -13,500 Btu/POUND (obtain actual values from suppjies) Natural Gas 71,000 -96,000 Btu/ccf (dependent upon eleva- tion and supplies -- obtain actual values from supplies) *This figure will reflect the true energy savings realized when converting from electricity or generating own electricity. **A Public Service Company of Colorado value,dependent upon elevation and delivered pressure --obtain actual value from local supplier. 37 2.Cost-effect testing approach The OEC will continue to use the simple payback approach to evaluate energy conservation measures pursuant to 455.63.We will continue to look at life-cycle costing and decide if we wish to change in the future. 3.Total cost savings At least 50 percent of total cost savings (usedin calculating cost effectiveness)pursuant to455.63 (a)(1)must be from the cost of the energy saved. 38 Reference in Rules and Regulations (Appendix 1)Section 455.20 (v) V.Coordinating Agency Information OEC will act as a coordinating agency for the Institutional Conservation Program a description of how it will operate follows: 1.Governor's Office of Energy Conservation 1675 Broadway,Suite 1300 Denver,CO 80202-4613 (303)620-4292 2.OEC will work with all nonprofit public and private schools and hospitals 3.OEC will follow the processing procedures already described in Section 455.20 (c)(d)(e)of this State Plan. 4.Both TA and ECM applications are covered under thisCoordinatingAgencyAgreement. 5.OEC will follow the schedule for soliciting and processing applications already describedin Section 455.20 (d)of this StatePlan. 6.There are no special provisions for religiously affiliated institutions,they will be treated the same as non-religious institutions. 7.See Appendix 5 for a copy of the subagreement used with institutions. 8.OEC will not be selecting any contractors to work on TAs or ECMs. 39 Reference in Rules and Regulations (Appendix 1) Sections 455.20 (w) W.Credit for TAs and ECMs OEC will credit toward the cost share of an energy conservation measure for the costs of a technical audit or technical audit update,or energy conservation measure previously incurred and wholly paid for with non-federal funds under the following circumstances: 1.OEC will credit 50%of the cost share for an energy conservation measure in the same building for a technical audit done within the last three years that meets the requirements as outlined in Section N of this State Plan. 2.OEC will credit 50%of the cost share for an energy conservation measure in the same building for a technical audit update done within the last three years that meets the requirements as outlined in Section Q of this State Plan. 3.OEC will credit 50%of the cost of an energy conservation measure done within the last five years if: a.the ECM was recommended in a TA prior to the installation of the ECM b.the ECM is in the same building as the additional ECM's proposed for funding c.the ECM is reviewed and ranked as outlined in Section E 40 Reference in Rules and Regulations (Appendix 1) Section 455.20 (x) X.Federal Share to be provided to applicants OEC will continue to provide 50%federal share to all applicants who do not qualify for hardship. In an effort to promote innovative matching fund sources and to increase the amount of grants that can be awarded,OEC will consider in each grant cycle setting aside a percentage of Colorado's allocation to be used for special grant projects.These projects could be funded at less than the 50%federal share.These projects will all be in accordance with the Rules and Regulations of the ICP program.Procedures for submittal of grant applications and ranking criteria for these special projects will be in accordance with all rules andregulationsoftheICPprogram. 4] Department of Energy Denver Support Office :. 2801 Youngfield St.,Suite 380 rN ECEIV be Golden,CO 80401-2266 JAN 4 1995 December 27,19945 sperms OF ENERGY/NCO? Mr.David Lockard Division of Energy 333 W.4th Avenue,Suite 220 Anchorage,Alaska 99501-2341 Dear David: It was good talking to you this morning about your plans for the Alaska Institutional Conservation Program.I am enclosing a copy of the Montana State Plan as I promised.I did not copy most of the appendices which were a part of the Plan.If you have any questions regarding either the State Plan or the Coordinating Agency process,please feel free to call me again at (303) 231-5750,ext.129. Sincerely, Vii ge4¢tare Marian Downs ICP Program Manager Montana State Plan for the Institutional Conservation Program Montana Department of Natural Resources and Conservation Energy Division 1520 East Sixth Avenue Lee Metcalf Building Helena,MT 59620 2301 January,1994 Institutional Conservation Program State Plan TABLE OF CONTENTS DEVELOPMENT OF STATE PLAN ..«©««©«©©«©©©© INFORMING INSTITUTIONS OF STATE PLAN REVISIONS . NOTIFICATION OF FUNDING ...«©«©©«©«©©©©@ APPLICATION SUBMITTAL ...«©««©«©«©«©©©©«©« EVALUATION AND RANKING ...4 «©«©©«©«©«©«©©«© ALLOCATION ..2.2.«©©©©©©©©©©©©6 © HARDSHIP ....«©«©©«©«©«©©©©©«©©©©©«@ RENEWABLE RESOURCES ...2 6 6 ©«©©©«©©©@ COMPLIANCE OF GRANT EXPENDITURE ....«««©«« PROGRAM AND TECHNICAL ASSISTANCE AND MARKETING PROGRAMS ..«2 «©©©©«©«©«©@ ENERGY USE EVALUATION ...2.«©2 ©©©©«©©ow OPERATION AND MAINTENANCE PROCEDURES .....«« SUPPLEMENTING/SUPPLANTING FUNDS ......-6+.-. NON-FEDERALLY FUNDED TECHNICAL ASSISTANCE STUDIES TECHNICAL ASSISTANCE STUDIES ....+...««« MANAGEMENT,MONITORING AND EVALUATION ...... UPDATING TA STUDIES ....2.2 2 2 ©©2 ew ew ew QUALIFICATIONS FOR TECHNICAL ANALYSTS ...... GRANTS FUNDED EARLIER ..«©2.««©«©©©©©©@ ESTIMATED SAVINGS,COSTS AND TYPES OF ECMs &TA CONVERSION FACTORS ..«©««©©©©«©©©©©@ COORDINATING AGENCY ...........e «ee ee NO CREDITS AVAILABLE FOR ECM WORK ........ POLICY ON FUNDING LESS THAN 50 PERCENT COST SHARE APPENDIX A HARDSHIP UNEMPLOYMENT CRITERIA ...... APPENDIX B HARDSHIP -IMPACT NUMBER FORMULA ..ee APPENDIX C DOE -FEDERAL REGISTER ......««6 «« APPENDIX D MONTANA ENERGY USE EVALUATION WORKBOOK ... APPENDIX E ENERGY USE EVALUATION REVIEW....... APPENDIX F TECHNICAL ASSISTANCE REPORT CHECKLIST ... APPENDIX G TECHNICAL ASSISTANCE UPDATE REPORT CHECKLIST APPENDIX H ENERGY CONSERVATION MEASURES EXAMPLES ... APPENDIX I TA APPLICATION REVIEW CHECKLIST ..... APPENDIX J TA FUNDING APPROVAL SUMMARY SHEET ..... APPENDIX K FISCAL COMPUTATION SHEET ......o 8 8 APPENDIX L PROGRAM DEFINITIONS .......o 6 8 INTRODUCTION The Institutional Conservation Program (ICP)is a U.S.Department of Energy (DOE)program that provides funds for energy conservation in schools and hospitals.In Montana,the program is administered by the Montana Department of Natural Resources and Conservation (DNRC).ICP provides financial assistance to public and private nonprofit schools and hospitals to perform technical assistance studies and identify non-federal funds available to complete energy conservation measures on eligible buildings. The program is authorized by Public Law 95-619,Title III,the National Energy Policy and Conservation Act of November 1978,and the State Energy Efficiency Programs Improvement Act of 1990. The program operates under the federal regulations set forth in 10 CFR Part 455 and Financial Assistance Rules,10 CFR Part 600. The mandatory contents of the state plan are defined in Section455.20 of the Federal Register (2/19/93). The Montana State Plan for the Institutional Conservation Program was first approved in 1979 and amended in 1981,1985,1987,and 1989. The Montana Legislature mandated DNRC's Energy Division to create a self-sustaining financing program for schools to pay for energy retrofits in buildings.This action coincided with recent changes at the federal level to improve the operation and flexibility of ICP,making it easier to use ICP funds to leverage non-federal funding sources and to use those non-federal funds for energy efficiency improvements. Because of the legislative mandate and federal program changes, the State of Montana has developed a program to aggressively acquire cost-effective energy savings in Montana schools and hospitals.Up-front capital will be provided to Montana schools and hospitals for energy efficiency improvements.Participating schools and hospitals repay the investments through energy cost savings resulting from the improvements. Existing state government programs;the Institutional Conservation Program,the State Buildings Program,INTERCAP and the Montana Health Facility Authority--coordinated into a cohesive financing program--will respectively provide technical assistance studies,technical review,administrative oversight and financing options to eligible participants.DNRC also proposes to incorporate utilities'existing demand-side resource programs in order to acquire even more resources to finance energy efficiency. Additional changes at the federal level allow each state to serve as a coordinating agency between DOE and the local grantees. Under this new arrangement DNRC directly issues and administers contracts with recipient schools and hospitals.Montana's status as coordinating agency began in Cycle 14 and will continue for subsequent cycles. DEVELOPMENT OF STATE PLAN In 1993 DNRC asked representative state organizations to participate in preliminary program planning.Participants included representatives of the following groups: °Montana Local Government Energy Office °The Office of Public Instruction °The Montana Department of Commerce -Board of Investments -Montana Health Facility Authority °Montana Power Company e Great Falls and Bozeman School Districts e Legislative Finance Committee °School Board Association e Montana Hospitals Association INFORMING INSTITUTIONS OF STATE PLAN REVISIONS Effective June 30,1993,Montana no longer participates in the optional program of OMB Executive Order 12372,StateClearinghouse/State Single Point of Contract.Grant applicationsshouldnolongerbesubmittedtotheStateClearinghouse. The State Library and organizations represented on the advisory committee are given copies of the final State Plan.DNRC also has copies that are available to private citizens upon request. Copies of the approved state plan and amendments will be available for inspection in the DNRC office. NOTIFICATION OF FUNDING DNRC will notify all eligible institutions of the total amount available from federal and non-federal sources to fund technical assistance programs and energy conservation measures for the current cycle.Notification to eligible institutions will be accomplished through direct mailings,informational brochures, electronic bulletin board announcements,and written articles in state educational and medical publications and in DNRC's ENERGY SOURCE newsletter.DNRC staff will participate in regional meetings and conventions sponsored by educational/medical associations. Non-federal funding will come from any of the following established sources: °INTERCAP e Montana Health Facility Authority °State Building Program °Montana Power Company Electric Conservation Purchase Program : °Efficiency Plus Business Partners Program -Retrofit e Efficiency-Plus Lighting and Efficiency-Plus Electric Motor Rebate Programs °Energy Smart Design °School Building Reserves °Private Financing With DNRC's assistance there will be no up-front cost to the institution and the administrative burden placed on the school districts and hospitals will be minimized.DNRC staff will act as a clearinghouse and develop individual financing packages relevant to each applicant.The full service financing program will assist the institution through engineer selection,review analyses,selection of energy conservation measures,design,installation inspection and ensuring energy savings through monitoring,training,and accounting. The funds used for Technical Assistance Studies will not exceed 15 percent of the total funds available for efficiency programsandwillbeusedinaccordancewithprogramlawsandregulations. Other Requirements DNRC will provide an annual report summarizing all projectsfundedthroughINTERCAP,SBP,DOE/ICP,private financing,utility rebates and school building reserves secured to provide alternative funds to implement energy conservation measures. The report also will show that Program and Technical Assistance and Marketing Programs projects do not exceed 15 percent of the total amount of alternative funds used to implement ICP eligible energy conservation measures. Use of Allocation Funds DOE allows the use of annual allocation as follows: 1.5 percent for administration or $50,000 whichever is greater; 2.10 percent for hardship cases;and, 3.100 percent (less $50,000 for administration)for Program,Technical Assistance,and Marketing Programs. APPLICATION SUBMITTAL Public and private non-profit schools and hospitals are eligible to apply for Technical Assistance (TA)grant funding.DNRC will provide information packets and ICP application forms to all eligible institutions upon request.Notification of the current funding cycle will be made by,but not limited to,direct mailings,informational brochures,TA analyst workshops, publications,conferences and conventions.Technical Analyst workshops will be held annually to inform certified analysts of the upcoming program cycle and to provide technical and program assistance.Applications must be submitted to DNRC in accordance with the Montana State Plan.DNRC will accept grantee applications beginning October 2nd of each year. DNRC will perform an in-state programmatic and administrative review of all applications received.In order to qualify for a TA Grant under the Institutional Conservation Program a building must: 1.Be owned and occupied by a public or private nonprofitinstitution; 2.Have been constructed prior to May 1,1989; 3.Include a heating or cooling system or both; 4.Be located in the state of Montana; 5.Be a school or hospital or comparable facility including administrative buildings,certified as eligible by the appropriate state agency;and, 6.The institution must have no immediate plans to dispose of or close the building within 5 years. An institution may submit an application for a building complex that is a closely situated group of buildings on a contiguous site,such as a school or college campus or multi-building hospital. An eligible institution shall in compliance with state and federal requirements submit a completed application form and a copy of an energy use evaluation.The evaluation will determineenergysavingspotentialandmustbeperformedbyaqualified auditor.The completed evaluation serves as documentation for the TA grant application.An institution may complete a TA study with its own funds,in which case no energy use evaluation is required. Energy Use Evaluation Sequence The energy use evaluation must comply with federal and state regulations.The energy use evaluation is a prerequisite for a state-funded TA study and must include the following: 1.A statement of whether the building is a school or hospital facility; 2.The name and address of the owner of record,indicating whether owned by a public institution,private nonprofit institution,or an Indian tribe; 3.A summary of the building's potential suitability for renewable resource applications; 4.Major changes in functional use or mode of operation planned in the next 15 years,such as demolition, disposal,rehabilitation,or conversion from office to warehouse; 5.Energy conservation operation and maintenance procedures that have been implemented for the building; 6.A statement of the need,if any,for the acquisition and installation of energy conservation measures, including an assessment of the estimated costs and energy and cost savings likely to result from the purchase and installation of one or more energy conservation measures.This statement should also include an evaluation of the need and potential for retrofit,based on consideration of one or more of the following: a.EUI or indices b.ECI or indices c.physical characteristics of the building envelope and major energy-using systems. DNRC staff engineers review the energy use evaluation to determine if the facility warrants a full-scale engineering analysis.If the energy and cost saving potential is sufficienttojustifythecostofperformingaTAstudy,the application is recommended for funding. TA grant applications will be recommended for funding on a first-come-first,served basis and will receive a grant award when DNRC receives federal notification of ICP funding allocation.DNRC will continue to issue grant awards until all dollars available for TA grants have been awarded.Applications for TA grantsreceivedafterallfundshavebeenawardedwillbereturned and applicants encouraged to re-apply on the following October 2nd. 8 Under the Technical Assistance Program,DNRC as coordinating Agency will receive a grant from DOE for up to 50 percent of thecostofperformingTAstudiesforbuildingscoveredbyan application.School and hospital boards governing institutionsreceivinggrantswillberequiredtopassaresolutionthatall cost-effective projects identified in the analysis will be completed.The resolution is not a legally binding document;it is just a good-faith commitment so that the TA study can beperformedwiththeunderstandingthatthecost-effective projectsidentifiedwillbeimplemented.The grantee also will provide to DNRC a minimum of 3 years of energy data following completion of the project. EVALUATION AND RANKING Applications for TA grants must be prepared by the applicants or their authorized representatives and received by DNRC during the current funding cycle.DNRC's Energy Division will evaluate each application to determine the eligibility of the applicant,to provide initial review of the energy use evaluation and to coordinate agency review of the application.Eligibility will be determined by Montana State Plan requirements,Montana environmental laws,and other applicable laws and regulations. If an application does not meet minimum requirements it will be returned to the applicant with a letter outlining the reasons for its return.DNRC staff members will work with applicants to correct minor errors within the current grant cycle.If problems with an application cannot be resolved prior to the end of the funding cycle,DNRC reserves the right not to consider the application for funding in that cycle.The institution may resubmit the application in future funding cycles provided all necessary corrections are made. The results of the EUE will be used to decide whether there are enough potential energy conservation measures to justify the completion of a technical assistance report or update. Approved TA grant applications will be recommended for funding on a first-come,first-served basis and will receive a grant award following DNRC review and approval.DNRC will continue to issue grant awards until all dollars available for TA grants have been awarded. Evaluation and Ranking Criteria TA grants will be completed on a first-come,first-served basis. Applications and energy use evaluations will be reviewed based on energy use index,recommended energy conservation measures and general building information.All buildings demonstrating anexcessiverateofenergyconsumptionbasedoncomparisonsof energy use index to typical types of buildings will be eligible for funding. 10 ALLOCATION In order to ensure that funds will be allocated equitably amongeligibleapplicants,the Technical Assistance grant allocation will be available to all eligible schools and hospitals in Montana. DNRC may use up to 100 percent (less $50,000 administration costs)of the DOE allocation for Program and Technical Assistance and up to 50 percent for the Marketing Program.DNRC will not use more than 15 percent of the aggregate funds allocated for energy conservation activities including non-Federal fundingsourcesonProgramandTechnicalAssistanceandMarketing Programs. Distribution of funds will be based on need,cost effectiveness of proposed energy saving measures,energy consumption,and estimated energy savings potential.Any applicant meetingminimumrequirementsforaTAgrantwillberecommendedfor funding on a first-come,first-served basis and will receive a grant award following DNRC review and approval of the application.Throughout the cycle,DNRC will continue to issue grant awards until all dollars available for TA grants have been awarded. Maximum Funding There is no limit on the number of buildings for which an applicant can request TA studies. The state may use up to 10 percent of its total allocation each cycle for hardship grants.A hardship applicant may be eligible for as much as 90 percent of the total project cost. Minimum Allocation At least 30 percent of the money available for TA study grants will be awarded to schools and 30 percent to hospitals.If the applications from one group are not sufficient to use all the money,applications from the other group may be funded. 11 HARDSHIP The state may use up to 10 percent of its total allocation each cycle for hardship grants.An institution eligible for a hardship grant may receive as much as 90 percent federal assistance.To apply for hardship funding,an institution must first request an eligibility determination from DNRC.DNRC will determine the amount of hardship funding the applicant is entitled to receive based on the unemployment rate in the applicant's county and the impact number formula. Because hardship funding is provided only to those institutions that have no other means to fund a project,an applicant requesting hardship funding will receive either the full amount requested or nothing.If an applicant is denied hardship funding,the application will not be eligible for funding. Applicants requesting hardship funding will be recommended for funding on a first-come,first-served basis and if eligible,will receive a grant award following DNRC review and approval. Hardship funds which have not been applied for after 8 months of a regular cycle may be used to fund additional and eligible non-hardship applicants. Universities and other state institutions are not eligible for hardship funding. Unemployment Criteria The unemployment rate in the institution's county for the previous calendar year will be used as a basis for awarding hardship points.Points will be assigned based on how much higher the applicant's county unemployment rate is than the statewide unemployment rate.If the county unemployment rate is 25 percent or more above the statewide unemployment rate,points will be awarded as indicated in Table 1,Appendix A. Impact Number Formula The impact of energy costs shall be calculated for every eligible institution by dividing the institution's total energy cost for the previous fiscal year by its total non-capitalized budget for the previous fiscal year.Schools or hospitals applying forhardshipclassificationwillbeaskedtoprovideallthedata needed to calculate the formula.If the impact number is greater than 3 percent,points will be awarded as indicated in Table 2, Appendix B. 12 RENEWABLE RESOURCES DNRC encourages the use of solar and other renewable resources. The practical application of renewables under this program has been very limited. The state's technical assistance guidelines provide that analysts are to address a building's potential for renewable energy management improvements. 13 COMPLIANCE OF GRANT EXPENDITURE DNRC DNRC will meet the following criteria: °Identify non-federal funding to finance Energy Conservation Measures (ECMs)for eligible buildings consistent with 10 CFR Part 455. e Shall not expend,for Technical Assistance,Program Assistance,and Marketing,more than 15 percent of the aggregate amount of federal and non-federal funds legallyobligatedorcommittedtoeligiblerecipientsforthese purposes,pursuant to 10 CFR Part 455 for the program year concerned. e Will identify and make available non-federal alternative funds for religiously affiliated non-profit institutions to complete energy conservation projects. e Will expend all allocated funds within the parameters of the following:The ICP state plan,10 CFR Part 455 and in coordination with other state and federal energy programs. GRANTEE Before an institution receives funds for a TA study,it must give written assurance in its application that the grant will be spent in compliance with the state plan and federal regulations (see Appendix C)and in cooperation with other state and federal energy conservation programs.When an official of an institution signs an application,that institution agrees that it will comply with applicable DNRC and federal regulations,policies, guidelines,and requirements. 14 PROGRAM AND TECHNICAL ASSISTANCE AND MARKETING PROGRAMS One-hundred percent of the Department of Energy's ICP allocation, less $50,000 for administration costs,will be used for the Program and Technical Assistance and Marketing programs.At least 50 percent of the remaining funds will be made available for Technical Assistance.Program Assistance and Marketing will split the remainder.Non-federal funding will come from among the following: INTERCAP --The INTERCAP Revolving Program lends money to local governments for a variety of purposes.The program is funded with bonds sold by the Board of Investments (the Board)and the proceeds are then loaned to local governments at favorable interest rates.The rate adjusts annually each March 1,with a current rate of 4.35 percent through February 28,1994.The Board sells bonds on an as needed basis with a ceiling of $50 million. The Board can consider purchasing most types of debt that local governments can issue,including general obligation bonds,revenue bonds,and special improvement bonds and notes.INTERCAP money is available for public school districts and county hospitals to buy vehicles and equipment and to repair,remodel,or improve real property. MONTANA HEALTH FACILITY AUTHORITY --The Montana Health Facility Authority (the Authority)is a state entity administratively attached to the Department of Commerce. Its purpose is to provide alternative capital financing to Montana's non-profit health care providers.The Authority provides loans to non-profit,501(C)(3)hospitals regardless of religious affiliation. Since its creation in 1983,the Authority has provided $335 million in financing to hospitals,nursing homes,chemical dependency centers,community mental health centers,andcentersforpersonswithdevelopmentaldisabilities.The Authority sells bonds on an as needed basis with a ceiling of $150 million per biennium. STATE BUILDING PROGRAM -The State Building's Energy Bond Program reduces operating costs in state facilities byidentifyingandfundingcost-effective energy efficiency improvements.The state sells general obligation bonds tofundtheseimprovements,and the resulting energy cost savings offset the bond repayments.The projects arestructuredsothattheannualdollarsavingsresulting from the energy improvements exceed the debt service on the bonds. 15 MONTANA POWER COMPANY ELECTRIC CONSERVATION PURCHASE PROGRAM The Montana Power Company (MPC)offers a funding program for specific qualified electric conservation or load management projects in retrofit applications.The program is designed to acquire electric energy and capacity resources while providing information and experience that will be useful in future MPC conservation purchase programs. EFFICIENCY PLUS BUSINESS PARTNERS PROGRAM --RETROFIT -This program offered by Montana Power Company provides funding for saving electricity and load management projects in retrofit applications.The program is designed to acquire electric energy and capacity resources. EFFICIENCY-PLUS LIGHTING and EFFICIENCY-PLUS ELECTRIC MOTOR REBATE PROGRAMS -These MPC programs will provide rebates to commercial and industrial customers for the purchase of qualifying energy-efficient lighting equipment and premium efficiency motors. ENERGY SMART DESIGN -This service is provided by Energy Resource Services,a program funded by Bonneville Power Administration.Assistance under this program may include walk-through energy audits,analysis of specific conservation measures,detailed energy studies,rebates and incentives.These efforts help determine a building's energy needs and methods for meeting them efficiently.Most common recommendations involve high-efficiency lighting systems,additional insulation,low-emissivity window glazing and more efficient HVAC systems. SCHOOL BUILDING RESERVES -Many schools have a line-item budget for building upkeep and maintenance and a reserve fund for future building expansion.School districts have the option of self financing energy conservation projects. PRIVATE FINANCING --DNRC will work in conjunction with the private non-profit institution to obtain the best bank financing arrangement available for individual projects.To assure that public non-profit and private non-profit institutions can acquire funds at equitable finance charges, DNRC will set aside five thousand dollars in the Marketing grant to buy down private finance charges to correspond to INTERCAP finance costs. Several equipment manufacturers finance energy efficiency improvements.This is also an option available to schoolsandhospitals.The term of financing can range from 2 to 10 years.DNRC provides assistance in developing and reviewing projects funded through equipment manufacturers. 16 Funding for grants will be available on a continuous basis,rather than awarding all grants at the same time each year. Projects will be funded on a first-come,first-served basis. DNRC does not anticipate the need to deny qualified projects because of shortage of funds.Montana Power Company's conservation targets are aggressive and well funded,and the bond ceiling for INTERCAP is well above the anticipated level of retrofit projects.In other words,DNRC anticipates that all projects meeting ICP economic criteria will be funded. DNRC will continue to promote energy conservation on a statewide basis.Program and Technical Assistance and Marketing programs are equally available to all schools and hospitals in Montanaregardlessofreligiousaffiliation.Alternative funding sourcestopayforECMsareidentifiedandavailabletoalleligibleinstitutions.DNRC will provide technical and administrative assistance to each grantee.Under current federal regulations responsibility for completion of the ECMs rests ultimately on the grantee. DNRC will rely on those supplying the financing such as the Montana Board of Investments,the Montana Health Facility Authority,the State Building Program and the Montana PowerCompanytoensureadequatefundsareavailabletofinanceall qualified projects.Bond ceilings for INTERCAP and the MontanaHealthFacilityarepublicrecord,so DNRC can easily verify that adequate financing exists for the Board of Investments to meet its share.DNRC also can review Montana Power Company's stated conservation targets to determine the amount of utility DSM funds available.Expenditures against those funds will be tracked by DNRC using the State Budgeting and Accounting System (SBAS). INTERCAP is a revenue-bond pool designed to provide local jurisdictions with access to affordable financing for capitalimprovementprojects.Under ICP,INTERCAP can finance public non-profit schools and hospitals. The Montana Health Facility Authority,a bond pool similar to INTERCAP,may be used to provide financing for retrofits in non- profit hospitals that meet 501(C)(3)requirements.The Authorityprovidesloanstoreligiouslyaffiliatedhospitals. All eligible non-profit schools and hospitals may use utility DSMfundsandprivateinvestmentpoolstoprovidefinancingfor energy conservation measures. DNRC will be a key player in arranging all retrofit financing packages under the new financing program,and will have access toinformationonfundinglevelsfromallparticipatingfunding21 sources.This information will be tracked both cumulatively and on a project-by-project basis. 17 Under the Marketing Program,DNRC will present detailedinformationaboutoptionalstateandprivatefinancing that can be used to pay for ECMs.DNRC will continue to work with the grantee through the financial process,through negotiations with utilities or with the assistance of a financial consultant,to determine how best to use the client's own budget to provide capital for improvements. DNRC will submit an Annual Program Plan that details specific activities and responsibilities and accomplishments on a yearly basis.This plan will be submitted in conjunction with the DNRC''s Administrative Plan and Budget. PROGRAM ASSISTANCE DNRC will use a portion of the ICP allocation to provide Program Assistance.Program Assistance will encompass activities managed or performed by the state to recommend energy conservation and provide support to eligible institutions for energy conservation projects.Program Assistance services DNRC will provide willincludebutnotbelimitedto: °Encouraging school and hospital personnel to begin an Energy Management Program to track energy consumption and cost data at their facilities. e Training on energy accounting to identify and implement energy conservation operation and maintenance programs and energy conservation measures.Training will be provided through various methods,one-on-one training,energy accounting workshops,and speaking to select groups at conferences. °Providing operation and maintenance training to individuals and select groups on energy saving strategies including weatherization techniques,and equipment (old &new) maintenance. °Preparing training material and certifying technicalanalystsandenergyuseevaluators.This will include maintaining a list of certified technical analysts to perform TA studies.DNRC also will provide training toimprovethequalityoftheenergyuseevaluation,technicalanalysis,and review of program regulations. e Creating an informal forum where analysts can discuss issuesoccurringinMontanastudies.Provide additional networking opportunities for analysts at yearly meetings andconferencessuchastheArchitectureandEngineer Conference. 18 °Reviewing and evaluating reports and services provided by consulting engineers. e Reviewing Energy Use Evaluation and recommending whether an additional technical assistance study be performed. e Providing individual grantee training for future grant recipients to satisfy federal requirements on recruitment and procurement of analysts certified to perform the TAs and Updates. °Assisting institutions in writing a Request for Qualifications (Scope of Work)for engineering or architectural firms to submit to design projected energy conservation measures. °Assisting institutions in procuring materials and services to implement energy conservation measures. e Reviewing design of proposed energy conservation measures and recommending or providing alternatives. e Conducting on-site visits as needed to resolve problems and concerns with energy conservation measures and inspecting completed projects to ensure that savings will be achieved. e Encouraging cost savings through purchase of multiple items shared by independent institutions participating in the program. °Monitoring the implementation and operation of energy conservation measures completed to determine whether estimated energy savings are being achieved. DNRC will compare the projected energy savings with the actual energy costs on each energy conservation measure completed to determine the effectiveness of the program.Findings from the analysis will be issued in an annual report and will be made available to all participants.The report also will be used as a marketing tool. TECHNICAL ASSISTANCE DNRC will provide Technical Assistance for ICP-eligible institutions.The objective of the Technical Assistance will be to ensure acquisition and updating of high quality technical information in Technical Assistance reports and Updates to provide a basis for investment decisions regarding energyefficientupgradestobuildings. 19 DOE and State standards will determine the allowable amounts for funding under the Technical Assistance Program for eligible institutions.Federal funds will be matched with non-federal funds for the studies.At least 50 percent of the Technical Assistance program will be funded by non-federal funds. Through Program Assistance and Marketing,DNRC will assist institutions in obtaining non-federal financing,implementing energy conservation measures,and monitoring energy savings resulting from the measures that were evaluated under the Technical Assistance program. To support the Technical Assistance program,DNRC will provide the following services as part of the Program Assistance and Administration programs: e Management of Technical Assistance Grant Program for ICP eligible institutions according to the requirements of the DOE regulations and the Montana State Plan.Institutions will submit an application for a grant to DNRC with a copy of the complete Energy Use Evaluation Report.DNRC will review the information on the energy use evaluation study and determine whether there is sufficient potential for energy conservation through operational and maintenance measures or energy conservation measures in the buildings to justify completing a TA or Update.A Grant will be awarded if the review recommends a study,and if funds are available at the time of application. °Certification of technical assistance analysts including training to improve the quality of the analysis,review of program regulations,and creating a forum where analysts can discuss issues pertaining to Montana studies. e Review of TA or Update report by a DNRC engineer to determine if minimum qualifications have been met,and to assess the reliability of the data on which investment risks will be based. MARKETING PROGRAM Marketing will be funded with a portion of the annual DOE allocation.The objectives of the marketing program will be to encourage all eligible institutions to participate ina comprehensive energy management program;promote the implementation of energy conservation measures;and provideassistanceinidentifyingandmakingavailableavarietyof alternative funding sources to pay for the projects.Marketing activities will include but not be limited to: e Working with Montana utilities and the Montana Board of Investments to leverage non-federal financing for energy 20 conservation measures through utility DSM programs,INTERCAP and the Montana Health Facility Authority and Northwest Bank Services.DNRC will set aside $5,000 under this program to buy down finance charges to correspond to public INTERCAP charges.Any portion of these funds remaining after September 30th will be re-obligated to the Technical Assistance Program. °Explaining and recommending energy conservation measures identified in Technical Assistance studies and Updates that best facilitate the institutions energy conservation agenda. °Site visits to work directly with school,hospital and utility officials to discuss the financing program and to negotiate retrofit financing packages; °Presentations to specific school and hospital boards to explain the program and to discuss both potential projects at their facilities and specific financing terms; e Presentations at annual meetings for school and hospital organizations---including the Montana School Boards Association,the School Administrators of Montana,the Montana Association of School Business Officials,and the Montana Hospital Association--to explain the program and to discuss potential projects;and e Writing articles for school and/or hospital trade publications,explaining the financing program and relating successful projects. The goal of the marketing effort is to ensure that all eligible parties are knowledgeable about the new financing program,the benefits and risks of energy conservation,and are able to make informed participation decisions. 21 ENERGY USE EVALUATION Analyst Requirements The Energy Use Evaluation (EUE)can be completed by a qualified person such as a facility engineer or the head of maintenance ofthefacilitythatisapplying,or by an energy specialist from the local utility.Any energy analyst on the list of analysts who can complete studies for the State of Montana is automatically qualified to complete the EUE. If the EVE Workbook is completed by a maintenance person,DNRC will complete a site visit of the building or complete a detailed review of the proposed ECMs and make adjustments if necessary. Requirements of an Energy Use Evaluation An EUE must be completed and submitted with an application in order to receive a TA Grant.The EUE must be submitted to DNRC on an approved EUE form or a previously approved equivalent form. DNRC will provide the approved EUE form upon request.The EUE must include the following: 1)A completed EUE Form; 2)A summary of potential ECMs; 3)A list of energy conservation O&Ms that have been completed; 4)Signature of the evaluator. The EUE will be reviewed by a DNRC engineer for compliance.The Montana Energy Use Evaluation workbook is found in Appendix D and the Energy Use Evaluation Review sheet is found in Appendix E. 22 OPERATIONAL AND MAINTENANCE PROCEDURES Eligible institutions applying under the Technical AssistanceProgramarerequiredtosignaletterofintenttoimplement oneorallofthecosteffectiveECMsandalloftheO&Ms identified in the study.The study will identify O&M procedures.If the O&Ms have not been completed at the time the ECMs are implemented,the institution must establish a timetable forimplementingtheuncompletedO&Ms or at that time provide DNRCwithreasonablejustificationwhyO&Ms cannot be implemented. 23 SUPPLEMENTING/SUPPLANTING FUNDS DNRC intends to assist schools and hospitals in the state in improving energy efficiency,reducing energy costs and leveraging whatever funds are available for these purposes.DNRC believes it is preferable to use ICP funds to provide schools and hospitals with professional studies.The studies identify ECMs that will improve energy efficiency in buildings and reduce energy costs at the facility. Implementation of the ECMs is the most costly portion of an energy management program.As a coordinating agency,DNRC will not provide ICP grants for ECMs.DNRC is coordinating with other. state agencies,utilities,and private funding sources to obtain financing sources to fund ECMs. 24 NONFEDERALLY FUNDED TECHNICAL ASSISTANCE STUDIES DNRC will administer a Technical Assistance program that funds studies on ICP-eligible institutions.At least 50 percent of these studies will be funded by non-federal funds unless applicants receive additional hardship funding.The non-federally funded studies must be completed in compliance with 455.62,Contents of a State Plan,and DNRC's policy concerning who is qualified to perform the studies.The non-federally funded studies will be reviewed by DNRC to determine that requirements have been met.Non-federal funds will be used to implement the ECMs evaluated in all the reports. The source of the non-federal funds for Technical Assistance will include but not necessarily be limited to: e State Building Energy Conservation Program -General Obligation Bonds; °Petroleum Violation Escrow Funds -(Stripper Well); °Utility DSM Funds. 25 TECHNICAL ASSISTANCE STUDIES The information on the EUE will be reviewed and verified by an engineer to determine whether there are enough potential ECMs to justify the completion of a study.DNRC will use the EUE to verify the potential ECMs which exist within the building or buildings.The Technical Assistance study or Update will be completed in accordance with the requirements in the Montana State Plan and will address items specified in 10 CFR Part 455, Number 32,dated February 19,1993,Rule and Regulations. 26 MANAGEMENT,MONITORING AND EVALUATION MANAGEMENT DNRC will be responsible for overall program management and will provide general program policy while following the federal rules and regulations. As a coordinating agency,DNRC will review Technical Assistance documents and issue grant agreements for funding studies that have met all federal and state certifications and assurances. Montana public and private hospitals are certified under three separate organizations.Larger hospitals receive certification from the Joint Commission for the Accreditation of Health Care Organizations (JCAH).Other hospitals receive certification from the Federal Certification for Medicare and Medicaid.Hospitals that are not certified under either of the above methods have a survey performed by the Licensing,Certification and Construction Bureau of the Montana Department of Health and Environmental Sciences.A list of licensed hospitals is provided annually to DNRC. Montana public and private schools are reviewed for basic standards and accreditation by the Office of the Superintendent of Public Instruction.After a school district has received initial accreditation,a Fall Report is submitted by the school district annually to renew the accreditation.The Montana Office of the Superintendent of Public Instruction prints a Directory of Montana Schools for each school year and provides a copy to DNRC. An institution must give written assurance in its application that the grant will be spent in compliance with the state plan and federal regulations and in cooperation with other state and federal energy conservation programs.When an official of an institution signs an application,that institution is agreeing that it will comply with applicable policies of DNRC.DNRC will review all documents to ensure that each agrees with application budget documents.Payment can be issued after this review. DNRC shall make and retain records in accordance with CFR 455.123.,and shall submit quarterly Financial Status Reports on program-related spending.These reports will be sent to DOE within 30 days after the end of each quarter. DNRC shall submit narrative semi-annual program performance reports in February and August of each year.The narrative shall discuss: 1)administrative activities; 27 2)technical assistance,program assistance and marketing program activities and results; 3)grantee reports summary for the report period; 4)estimate of annual energy use reductions in the state (August report only). MONITORING DNRC will complete a site visit to an estimated 40 percent of the schools and hospitals to determine whether improvements have been installed correctly and whether any problems have occurred. Other follow up site visits will be made by staff as appropriate. Institutions will be monitored to ensure that improvements are being used to their fullest potential and to determine if the energy conservation measures are generating enough energy cost savings sufficient to maintain a positive cash flow within the debt term limitations. DNRC will evaluate actual savings of implemented ECMs.Ata minimum,DNRC will collect and review utility meter readings. Other methods such as energy use modeling,end use metering and equipment instrumentation may be used when needed. DNRC also will determine how effective the Technical Assistance Program has been in identifying ECMs for completion with alternative funds and how effective these ECMs have been in reducing energy consumption. EVALUATION Information from site visits,the final report and energy-use data will form the basis for DNRC's evaluation. DNRC will continue to record and evaluate energy use consumption on DATAFORM for schools and hospitals participating in the ICP program.The agency also will prepare public notices and news releases,develop a comprehensive reporting mechanism and provide grant management assistance. Case studies will be published and used to market future participation in the program to non participants. 28 UPDATING TA STUDIES Data in the original TA study may become obsolete due to changes in energy rates,technology changes,and changes made to the facility.The TA study can be updated by a certified ICP analyst providing current information on the energy use of the building, equipment costs and other information needed to analyze new measures not previously analyzed,or to update the effectiveness of previous measures with current costs,cost savings,and technology.DNRC sees the need for some of the previous Technical Assistance studies to be updated.To determine the need for an update grant,the applicant must document that reasonable efforts were made to implement qualifying energy conservation measures in the original study. 29 QUALIFICATIONS FOR TECHNICAL ANALYSTS To become a certified ICP technical assistance analyst in Montana,a person must meet the following requirements: 1.Be a registered professional engineer licensed in Montana,and have a minimum of 2 years experience in building energy systems and energy conservation;or be a member of an architect and engineer team in which the principal team members are registered professionals, licensed in Montana.Each principal team member must have a minimum of 2 years experience in building energy systems and energy conservation, 2.Attend an ICP sponsored Technical Assistance Workshop before beginning any TA Project.The analyst must attend a workshop at least every other year or must submit at least two acceptable TA reports in each 2 year period. 3.Certify that he or she has no financial conflict relating to the recommendations. DNRC will maintain a list of analysts who meet the above requirements.Anyone may receive the list on request. Certification by DNRC does not necessarily guarantee the professional's qualifications.Grantees are encouraged to satisfy themselves regarding an analysts'suitability before entering into a formal agreement. TA analysts who have had more than one TA disapproved in 2 consecutive cycles by failing to correct the deficiencies noted by the ICP reviewer will be removed from the list of certified analysts until they are recertified by attending another TA workshop and submitting an approved TA or TA Update report. TECHNICAL ASSISTANCE REVIEW Reports for TAs and Updates must be reviewed and approved by a DNRC-appointed engineer and ICP staff members before a grant is issued.The checklists for determining minimum requirements are found in Appendixes F,G &H.Institutions that submit TAs or TA Updates which are reviewed and determined not to meet minimumrequirementswillbeallowedareasonabletimefortheiranalyst to submit necessary revisions.A letter will be mailed to the analyst and a copy to the institution describing the deficienciesandspecifyingadeadlineforresubmittal.The institution will be allowed two revisions to bring the study up to minimum requirements.The TA analyst may be asked to resubmit a final report incorporating all the revisions requested by DNRC 30 reviewers into the body of the report,rather than attaching the revisions as addenda or separate letters. DNRC has several policies regarding computer energy simulation programs in TA or TA Update studies.DNRC has no required list of software programs,although some programs have been accepted in reports approved in the past.A program that has not been accepted in previously approved reports should be submitted with documentation for DNRC review.A software program that cannot adequately provide the information required for the TA minimum requirements will be accepted only if further manual adjustmentsaremadeandcleardocumentationandnarrativeareprovidedto explain the further adjustments.Software programs that do not use an acceptable methodology will not be approved. Changes made to the thermal model base must be explained and documented with computer input summaries.The summaries must be labeled clearly,and changes must be described.The base case model must be compared to actual consumption patterns. Discrepancies between modeled and actual energy usage must be explained. Computer printouts must be submitted with the study as an appendix to support a computer summary information page in the TA.The computer output should be labeled clearly. Heating or cooling degree day methods will be accepted as verification of computer output or for very simple systems. These calculations must include a correction factor,Cd,for internal and solar gains.The level of complexity used in analyzing a building's energy use should match the size and complexity of the building.The purpose is to keep the cost to a minimum.Below are some examples of the type of analysis appropriate for different buildings. Type of Building HVAC System Type of Analysis Required 2,000 sq.feet gas furnace Heating Degree Day Method 10,000 sq.feet hot water boiler Bin Analysis 50,000 sq.feet constant volume Reheat Hourly Simulation If the technical analysts are not sure what level of analysis is required for a building,they should check with DNRC before continuing.If the analysis does not accurately predict current energy use and the energy use of selected ECMs,the analyst will be asked to recalculate the energy use of the building with the correct method of analysis. 31 GRANTS FUNDED EARLIER DNRC will allow reapplication for TA studies for which funds were allocated in earlier cycles,but not implemented and for which no funds were expended,if the applicant provides reasonable justification as to why it did not pursue implementation of the original grant award.Under the continuous Technical Assistance program these applications will be funded from the third quarter of the year on,or any time after April lst through the end of the grant cycle,or until no funds remain. 32 ESTIMATED SAVINGS,COSTS AND TYPES OF ECMs AND TAs Significant energy savings can be achieved through changes in operation and maintenance (O&M)procedures.These procedures canresultinasavingsof5-10 percent,and sometimes more.O&M changes require very little investment and will augment the overall results of energy conservation projects.O&M measures will be incorporated into the overall ECM financing package. Energy Conservation Measures can provide additional savings butrequiremoreinvestmentthanO&Ms.The amount of savings can vary from 10 percent to 50 percent of the annual energy costs andsometimesmoredependingontheparticularfacility.DNRC recommends implementation only of measures that will provide enough savings to cover the implementation cost.However,only those costs associated with ECMs that have met the ICP cost effectiveness test using life cycle cost will be counted as a portion of the 85 percent leveraged in non-Federal funds.Review of costs of different types of ECMs in Cycle 10 found the following: Areas of Total Dollars Savings Improvement Invested Estimated Envelope $225,711 $31,103 Lighting $240,739 $42,643 Controls $167,902 $39,091 HVAC $969,703 $176,612 Heating plant Improvements $879,187 $115,777 Appendix H lists examples of measures that have been implementedinICP.These ECMs are considered appropriate for Montana Institutions,but DNRC does not limit the program to these measures nor guarantee that these measures will be cost effective in all buildings. The cost of performing a technical assistance project onabuildingdependsonthesize,the complexity of the equipment in the building,availability of data such as metered energyconsumption,up-to-date plans,operation manuals,and thelocationofthefacility.The costs for TA projects in Cycle 14 was $100,000,6 percent of the total cost of energy projects.In Cycle 13 the total cost was $140,000 also 6 percent of the totalcostsofICPprojects.However,the study cost per building can range from 2 percent to 35 percent of the total cost of the 33 measures.To determine what is an allowable cost for a TA study, DNRC will allow up to $.15 per square foot for schools,and up to $.20 per square foot for hospitals.Because size is not the only factor in determining the costs of a TA,DNRC will allow for costs over this amount for special situations.DNRC will look at the information in the Energy Use Index to determine what a maximum cost should be.As a general rule,DNRC will not approve TA Grants over 50 percent of the annual energy cost of the facility because it would be very unlikely to achieve enough energy savings to justify higher study costs.DNRC estimates updates will cost no more than one-half of the original TA study. Allowances for additional costs on special conditions discussed above can be considered for updates also. 34 CONVERSION FACTORS For purposes of the technical engineering analysis,DNRC shallrequirethatthefollowingconversionfactorsbeusedinallTAsorUpdatesfortheconversionoffuelstoBTUequivalents. Fuel Conversion Factors Energy Source Unit Quantity Electricity kWh 11,600 Btu(A) Natural Gas Mcf 950,000 Btu Fuel Oil #2 Gal 138,690 Btu Fuel Oil #6 Gal 149,690 Btu Coal Pound 11,000 Btu LPG Gal 95,475 Btu Saturated Steam Pound 960 Btu Actual Fuel Conversions from the local utility should be used whenever possible.The conversion factors may be taken from engineering references not listed.The above numbers should be used as a general guideline. (A)The source conversion factor for electricity of 11,600 Btu/kWh*should be used in the following cases: 1)When calculating the energy savings from converting a heating or cooling plant from electricity to any other fuel; 2)When calculatingthe energy savings from convertingaheatingplanttoacogenerationsystem; 3)When calculating the energy savings from an increase in efficiency such as installation of high efficiency lighting or motors. The conversion factor of 3,413 Btu/kWh should be used whencalculatinginternalheatgainfromlightsormotors. Cost Effectiveness Cost effectiveness of energy conservation measures will be determined by life-cycle cost analysis as part of the TechnicalAssistanceProgram.The methodology for life cycle analysis willdisplaylife-cycle cost in a savings-to-investment ratio asstipulatedintheFederalRegisterunder10CFRPart455.64.The 35 TA or Update will identify measures that meet the life cycle costeffectivenesstestforICPeligibleECMrequirementsunder 455.71.The savings-to-investment ratio of each energy conservation measure must be at least one or greater over a period of analysis which does not exceed 15 years,and the usefullifeofthemeasuremustbeatleast2years.DNRC will specify the cost escalation and discount rates to be used in the life- cycle cost analysis.The discount rate must equal or exceed thediscountrateannuallyprovidedbyDOE,and the escalation rate will not exceed the DOE rate.Other rates may be used in additional analysis if requested by the facility. Total Cost Savings For calculating cost effectiveness,at least 75 percent of savings must be from the cost of the energy to be saved by theECM.Total operational and maintenance savings will be reported in the TA or Update report but these savings must not exceed one- third the energy cost savings used to determine cost effectiveness of the measure. 36 te ae COORDINATING AGENCY The Montana Department of Natural Resources and Conservation (DNRC),(1520 East 6th Avenue,P.O.Box 202301,Helena,MT 59620-2301),will continue to serve as a coordinating agency between the Department of Energy and local grantees.Grant awards for technical assistance will be provided to all eligible public and private non-profit schools and hospitals in the state. DNRC will accept applications for technical assistance beginning October 2nd of each year.They will be reviewed based on the Application Review Checklist (Appendix I).After all deficiencies have been resolved,a Funding Approval Summary Sheet (Appendix J)and Fiscal Computation Sheet (Appendix K)will be completed for each applicant.These forms along with DNRC's recommendations for funding will be sent to DOE on a continuous basis as applications are received and approved by DNRC. DNRC will enter into a Grant Agreement with the applicant.An Amendment to the original Agreement can be made if future changes arise.All administrative decisions will be determined by DNRC. The grantee has a dual option in selecting an analyst to perform the study.DNRC will issue an RFQ and select several analysts to put on a most qualified list.The grantee has the choice of procuring their own TA analyst through a traditional grant or selecting one from DNRC's most qualified list. DNRC provides grantee notebooks for each grantee to aid in grant implementation.The information provided summarizes major concerns and provides sample documents to assist the grantee. DNRC will help review and evaluate proposals as requested. Grantees request reimbursement to pay for the cost of the study. As coordinating agency,DNRC is responsible for reviewing, approving and processing all requests for reimbursement.DNRC will issue reimbursement for the study from the DOE allocation under technical assistance.A surety amount of 5 percent may be retained until the final study is received and approved by DNRC's program engineer. Financial Status Reports,Project Status Reports and Final Reports will be reviewed by DNRC.After the termination letterhasbeensignedandreturned,all final documents will be sent to DOE. 37 NO CREDITS AVAILABLE FOR ECM WORK Energy Conservation Measures will be funded with non-federal sources.The Technical Assistance studies will be funded with a combination of federal and non-federal funds.Credits will not be available in this process. 38 POLICY ON FUNDING LESS THAN 50 PERCENT COST SHARE DNRC as coordinating agency will fund at least 50 percent of the Technical Assistance studies with non-federal funds.A greater than 50 percent federal share may be funded if applicants qualify for additional hardship funding. 39 APPENDIX A at APPENDIX A RANKING OF SCHOOL AND HOSPITAL APPLICATIONS FOR SEVERE HARDSHIP -UNEMPLOYMENT CRITERIA For ranking of school and hospital applications for severe hardship,the unemployment rate of the previous calendar year foreachapplicant's county will be compared to the state average forthesameperiod,as determined by the Research and Analysis Bureau of the Montana Department of Labor and Industry. If the annual county unemployment rate exceeds the state average by more than 25 percent,additional funding will be awarded by the corresponding percentage points determined in Table 1. The maximum amount of additional hardship funding available based on unemployment criteria is 20 percent. RANKING OF SCHOOL AND HOSPITAL APPLICATIONS FOR SEVERE HARDSHIP TABLE 1 Percentage of County Unemployment Above State Average Unemployment Rate Points 25.0 -28.8 1 28.9 -32.7 2 32.8 -36.6 3 36.7 -40.5 4 40.6 -44.4 5 44.5 -48.3 6 48.4 -52.2 7 52.3 -56.1 8 56.2 -60.0 9 60.1 -63.9 10 64.0 -67.8 li 67.9 -71.7 12 71.8 -75.6 13 75.7 -79.5 14 79.6 -83.4 15 83.5 -87.3 16 87.4 -91.2 17 91.3 -95.1 18 95.2 -99.9 19 100 and above 20 APPENDIX B APPENDIX B RANKING OF SCHOOL AND HOSPITAL APPLICATIONS FOR SEVERE HARDSHIP IMPACT NUMBER FORMULA Additional energy impact funding is awarded on the basis of the percentage of an institution's total noncapitalized budget thatisspentpayingutilitycosts.Amounts of actual energy expenditures and total budget for the previous fiscal year will be used in the impact number formula to determine an impact number. Additional hardship funding will be awarded by the corresponding percentage points determined in Table 2. The maximum amount of additional funding available based on impact of energy costs is 20 percent. TABLE 2 Impact Number Points -000 -030 0 -031 1 032 2 -9033 3 034 4 035 5 036 6 037.7 -038 8 .039 . 9 -040 10 041 11 042 12 043 13 044 14 -045 15 046 16 047 17 -048 18 049 19 -050 and above 20