The Role of Energy Savings In The Municipal Energy Sector In The USA (2000)

Henry Manczyk, CPE, CEM

Director of Facilities Management

County of Monroe

50 West Main Street

Rochester, New York 14614

USA

Ph.: 011-716-428-4906 Fax: 011-716-428-9035

email: hmanczyk@mcls.rochester.lib.ny.us

Abstract:

This presentation discusses key strategies a professional energy manager may apply to establish the professional working environment that will permit the manager to apply knowledge and skills in the design and operation of energy-efficient mechanical and electrical systems, energy management, economic analysis, and others on behalf of his facility, its users, and the municipality the manager serves. These include factors that contribute to credibility with management; preparation, funding, implementation, and reporting the results of an energy management program; and the role of operations and maintenance staff in energy management.

Presented at Energy Efficiency Business Week 2000 conference

October 17, 2000

Prague, Czech Republic

INTRODUCTION: For a municipality to have a successful energy management program, it must create an environment of established goals to prevent waste and protect the assets of facilities; management must understand and support the importance of energy efficiency, environmental quality, and the programming of energy improvements; and a significant portion of energy savings must be reinvested in the energy management program. This will permit the professional energy manager to apply knowledge and skills in the design and operation of energy-efficient mechanical and electrical systems, energy management, economic analysis, and others on behalf of his facility, its users, and the municipality the manager serves. This presentation discusses strategies a professional energy manager may apply to establish this working environment.

I. ENERGY SAVINGS IN THE MUNICIPAL ENERGY SECTOR

A. Energy savings in all sectors contribute to conservation of resources, helping meet environmental quality goals, avoiding excess investment in generation facilities and resultant inefficiencies, etc.

B. Difference between sectors

1. Private sector energy savings appear as significant cost reductions, pollution reductions, elimination of wasted resources, unit cost reductions, improvements in product quality, etc. They contribute to

a. Maintenance or increase of profits

b. Maintaining or improving competitiveness

2. Municipal sector energy savings appear generally as cost reductions and avoided costs (savings at power plants, incinerators, etc., are similar to private sector savings). They contribute to

a. Making funds available to finance other governmental services

b. Making funds available to finance other energy improvements

c. Reductions in government overhead cost

C. Capturing savings to finance energy improvements

This presentation outlines strategies that professional energy managers in the USA employ to identify and capture a portion of the savings realized from energy improvements to finance additional improvements in municipal facilities.

II. FACTORS THAT CONTRIBUTE TO CREDIBILITY WITH MANAGEMENT

A. Development of a well-planned program of energy improvements

B. Economic analyses of proposed improvements

C. Documented savings and performance enhancements from implemented improvements

D. Awards and recognition of the municipality’s program and professional staff

III. STRATEGY FOR ENERGY SAVINGS MANAGEMENT

A. Preparation of Energy Savings Program

1. Evaluate your facilities to identify potential energy savings measures

a. Perform energy accounting audit of facilities, compare results to industry standards.

b. Assess potential energy savings opportunities in each facility, including building envelope as well as M/E systems, based on energy audit results by means of a “walk-through audit.”

c. Inventory M/E systems and their operating schedules.

d. Identify existing monitoring and metering equipment.

e. Interview facilities users about operating and comfort needs.

f. Evaluate the facility operating schedule and the operating and maintenance practices of current O&M staff.

g. Develop a “Potential energy savings opportunity checklist” for each facility.

h. Select, evaluate the feasibility of, and design new energy-efficient systems and equipment that may be implemented in each facility. Consider such measures as:

(1) Computerized energy management systems for automated equipment operation and monitoring and reporting of performance and energy consumption;

(2) Additional monitoring and metering equipment;

(3) Integration of innovative technologies;

2. Examine your regulatory and rate/cost environment

a. Determine whether and how local utility or energy supply costs vary with time of use, season of use, peak usage, etc.

b. Identify sources for lowest cost purchase of fuels and electricity.

c. Identify relevant local standards for indoor air quality, environmental emissions, etc. that apply to your facilities.

3. Examine financial opportunities

a. Identify grants, incentives, etc., available from local, national, and international sources that may apply to your facilities.

b. Consider potential collaborations and partnerships with other local industries, utilities, governmental facilities, etc.

4. Analyze the economics and feasibility of opportunities for Energy Savings measures identified above, including potential savings, long-term cost avoidance, and payback periods.

a. Determine implementation schedule, costs, and payback period for each measure.

b. Identify and implement measures that you can finance from your current operating budget by applying savings from current cost reductions (these will generally be low cost/no cost measures).

c. Project the cost savings and cost avoidance value of all measures for a 3-5 year period beyond your current budget year.

d. Program standards:

(1) The first program implemented in a conventional facility should yield up to a 40% energy consumption reduction,

(2) Subsequent programs implemented should maintain or reduce the accomplished levels of energy consumption

(3) Measures should result in

(a) Longer service lives of building systems;

(b) Environmental improvements; and,

(c) Maintain comfort levels and other services provided for building occupants.

5. Implement preventive and predictive maintenance programs at once.

B. Prepare implementation and financing plan to recommend to management

1. Propose a 3 to 5-year “Facilities Energy Improvement Plan.”

2. Identify what portion of the Plan may be financed by full or partial application of the projected savings due to avoided costs of previously implemented measures.

3. Recommendation: “Share” a portion of the projected savings from avoided costs with management based on:

a. Management’s need for funding for other organizational priorities;

b. Practical considerations of your and your staff’s capacity to successfully implement recommended measures.

C. Implement energy savings measures and measure their results

1. Implement the management-approved measures per schedule.

2. Give directions to facilities users, O&M staff, and management as needed for optimal use of the improved systems.

3. Measure or estimate the actual energy and cost savings of each implemented measure and compare the actual results to the initially projected cost savings and to the base year costs.

4. Report the results to management and users.

5. Interview management and facilities users about their perception of the results of the improvements and any modifications or additional improvements they feel are required.

6. Update the “Facilities Energy Improvement Plan” for approval and funding by management at least annually.

7. Apply successful measures elsewhere in your facilities whenever possible.

8. Share information with others, apply for professional recognition, etc., to inform your professional colleagues of successful measures and to increase your credibility with your own management.

IV. USE OF THE O&M TEAM

A. The Facilities Management operations and maintenance staff are critical to development, implementation, and maintenance of a successful energy management program.

B. Duties

1. Perform repair, preventive and predictive maintenance.

2. Identify energy use improvement opportunities.

3. When possible, implement approved improvements (in preference to implementation by contractors)

C. Build a team with diverse professional and technical skills.

D. Provide frequent opportunities for training and skills development.

E. Routinely give the team praise and recognition for their accomplishments.

V. SUMMARY

These strategies are the means by which a professional energy manager with a holistic view of energy management may capture the energy savings the energy program has produced. This permits the manager to continue to provide professional, technically excellent facilities operation and maintenance services to users, management, and municipality.