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BUILDINGS & FACILITIES

BUILDINGS & FACILITIES. For GHG Stakeholders December 9, 2004. Conserving fossil fuels Efficiency in new buildings. Appliance standards Promoting on-site CHP (aka cogen.). B&F FOCI. 1. CONSERVING FOSSIL FUELS. Background factors Progress so far

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BUILDINGS & FACILITIES

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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