ARKANSAS ENERGY OFFICE Presentation Rules for Act 1494 of 2009 January 13, 2010

1. ARKANSAS ENERGY OFFICE Presentation Rules for Act 1494 of 2009 January 13, 2010

2. Energy Efficiency and Natural Resource Conservation in Public Buildings or “Lead by Example”

3. ASHRAE Standards Adopted • ASHRAE 90.1 2007 adopted

4. Two Program Areas Two Major Aspects Energy Efficient Building Design and State Energy Management Program

5. Sustainable Energy Efficient State Buildings

6. Sustainable Energy Efficient Buildings Roles Arkansas Energy Office • Shall develop and issue policies and technical guidelines for a major facility or a major renovation. (over 20,000 gross sqft) • Shalladminister an energy management program and provide guidance to state agencies on energy efficiency.

7. Sustainable Energy Efficient Buildings Roles Institutions of Higher Education • Shall develop and issue policies and technical guidelines for a major facility or a major renovation. • May administer an energy management program and provide guidance.

8. Sustainable Energy Efficient Buildings Roles State Agencies • Complying with these Rules to ensure the proper design, construction and operation of new major facilities and major renovations. • Appoint and train an Energy Manager

9. Sustainable Energy Efficient Buildings Roles State Agencies • Submit annual reports to the AEO • Reduce utility usage per gross sqft by 20% by 2014 and 30% by 2017 • Establish and maintain Energy Star Portfolio Manager accounts for each facility

10. Advisory Committee The Arkansas Energy Office shall create an advisory committee composed of representatives from: • Design and construction industry who are involved in public works contracting; 2. Public agencies and higher education who are responsible for overseeing public works projects 3. Other persons that at the Director’s discretion

11. ADVISORY COMMITTEE Architect/Design/Engineering Companies Tom Fennel- Fennel- Purifoy Architects Chris Ladner - Viridian Craig Phillips - TME Rick Sellers - Pettit and Pettit Agencies Chris Benson/Ed Ellis – AEO                 Floyd Farmer – ABA Nate McGee – DHS Jon Brown – Parks and Tourism Universities                 Scott Turley – UA Fayetteville Paul Crosmer – UCA

12. Advisory Committee The committee shall provide advice on the implementation of these Rules, including recommendations regarding: 1. An education and training program for persons who are involved in the implementation of these Rules to include specific education and training criteria that are appropriate for the various roles with respect to levels of involvement in projects subject to these Rules or the roles regarding the operation and maintenance of the facility;

13. Advisory Committee 2. An ongoing evaluation and feedback process related to the standards and polices used to help the AEO administer and implement this section; 3. Water-efficiency and energy-efficiency requirements, in addition to making recommendations to the AEO regarding revising standards for water and energy efficiency.

14. Major Facility and Major Renovation Sustainable Building Standards • Apply if it entered the schematic design phase after the effective date of this Act, January 1, 2011. • Require a 10% reduction below the baseline energy consumption according to Appendix G of the ASHRAE Standard 90.1-2007 • A special standard can be allowed, under Item 401.A.1 of rules if ASHRAE Standard 90.1-2007 cannot be met

15. Major Facility and Major Renovation Sustainable Building Standards • A life-cycle cost analysis (LCCA) shall be performed on all energy and water systems and components • Indoor water systems shall be designed and constructed to use at least twenty percent (20%) less potable water, than the baseline for meeting the 2006 Arkansas Plumbing Code.

16. Major Facility and Major Renovation Sustainable Building Standards • Outdoor potable water - reduce potable water consumption by at least fifty percent (50%) compared to normal design. • Commissioning practices shall be employed and tailored to the size and complexity of the building and its system components.

17. Sustainable Building Standards Major Facility and Major Renovation • Measurement and verification will be for 12 months after occupancy of the facility and appropriate for the size and complexity of the building or its energy and water system components.

18. Measurement and Verification • At a minimum, a separate utility meter for electricity, natural gas and water shall be installed for each building • Compare metered data from the first twelve (12) months of the building’s operation with the energy and water design target • Report the performance results to the AEO

19. Measurement and Verification • If the report shows that the building’s average energy or water consumption over the one-year period is more than the baseline consumption, the cause and recommend corrections will be determined

20. Energy Management Program

21. Energy Management Program Elements • Energy Managers • Strategic Energy Management Plans (StEP) • Energy Star Portfolio Manager (ESPM) • Energy Efficient Procurement Practices • Building Performance • Energy Education Training

22. 1. Energy Managers • Coordinate energy efficiency awareness efforts • Develop energy efficiency capital improvement and maintenance projects • Review and approve energy efficiency projects • Implement the agency StEP • Update StEP and submit by Oct 31 annually • Update monthly ESPM facility accounts • Submit ESPM data to AEO by April 1 each year

23. 2. Strategic Energy Management Plans • Reduce energy consumption/ gross square foot for each facility and as an agency • 20% reduction by 2014 • 30% reduction by 2017 • Define strategies to meet these goals • New Plan once every 5 years • Updated yearly showing success / challenges

24. 3. Energy Star Portfolio Manager (ESPM) • Establish an account for each facility with a utility meter. • Enter energy cost and usage data for fiscal year 2008 to set the weather adjusted baseline for the agency • Enter data after June 30, 2008 and determine progress toward 20% usage reduction at the end of each fiscal year

25. 4. Agency Energy Efficient Procurement Practices • Maximize interchangeability and compatibility of equipment components for a facility, campus, and agency • Follow DF&A energy efficient purchasing guidelines – such as using LCCA in determining the selection of replacement equipment and systems

26. 4. Energy Efficient Procurement Practices • Promote Performance Contracts stipulating delivery of measurable and predetermined energy savings • Use energy efficiency specifications to guide purchases of equipment and supplies • Require energy efficiency even in standby mode • Use LCCA to determine best buys • Purchase or lease energy efficient buildings / office space – require ESPM data on the space

27. 5. Building Performance Energy Audits • Perform audits on each facility every 5 years • Forward audit results to the AEO • Audit Level determined by performance of the facility, using ASHRAE procedures for a • Walk through audit to monitor building condition • Level 1 low cost/no cost measures, energy balance • Level 2 financial level review for energy projects • Level 3 detailed analysis for capital projects

28. Building Performance Recommissioning or Retrocommissioning Energy managers should be continuously evaluating the condition of their facilities. Audits may call for more intensive measures, such as recommissioning or retrocommissioning • Retrocommissioning is recommended to improve a building’s operations and maintenance procedures to enhance overall building performance if the facility was never Commissioned. • Re-Commissioning may be initiated periodically or in response to building renovation or a change in usage.

29. Energy Education and Training Training being planned at this time with the input of the Advisory Committee: • Energy Manager Training (RFP sent to procurement) • Life Cycle Costing Training • Energy Auditing • Benchmarking • Commissioning

30. ARRA Projects

31. ARRA Public Buildings • State Green Building The Arkansas Building Authority has reconstructed this office building to meet at least LEED standards; to include solar electric, high performance HVAC, a plug-in electric vehicle recharging station, water recovery, etc. ARRA - $1.2 million

32. ARRA Public Buildings State Building Energy ManagementProgram “Lead By Example” • Establish energy usage baseline for state buildings – Use Energy Star Portfolio Manager using a contract with the Cadmus Group • ARRA - $1.2 million

33. ARRA Public Buildings • State Building Revolving Loan Fund Arkansas Building Authority administers the State buildings capital revolving loan fund for energy improvements. Reviewing projects to obligate funds. ARRA - $9.5 million

34. ARRA Public Buildings • Industrial/Commercial Revolving Loan Fund Project must be located in Arkansas. Project must produce energy efficiency ARRA - $3.3 million

35. ARRA Public Buildings • Industrial/Commercial Revolving Loan Fund 3. North American Industry Classification System 11, 21, 22, 31-33, 42, 44. 45, 48, 49, 493110, 493120, 551112, 551114, 562213, 621491, 622110, 622310, 531120, 721110, 722110, 722212, 722320

36. ARRA Public Buildings • Industrial/Commercial Revolving Loan Fund • 4. Project must meet federal and state air and water quality standards. • 5. NEPA may be required. • 6. Project must use existing reliable commercially-available technologies.

37. Job Training • Building Training Centers of Excellence Two building trades training centers are open at NWAC and Pulaski Tech to train residential energy auditors. Classes start in October. ACCA training is also being developed. ARRA - $3.2 million.

38. Websites Rules for Act 1494 http://arkansasenergy.org/ Governor’s Green Portal –Strategic Energy Plans http://green.arkansas.gov/Pages/default.aspx Energy Star Portfolio Manager https://www.energystar.gov/index.cfm?c=business.bus_index

39. Thank You! Ed Ellis 501-682-7694 EEllis@ArkansasEDC.com