ARKANSASX(1)S... · ENERGY EFFICIENCY ARKANSAS SECOND ANNUAL REPORT Heating Fact Sheet Distribution...

BEFORE THE I I,,

b.. li t

ARKANSAS PUBLIC SERVICE COMMISSION

C r . * * + - I TI IN THE MATTER OF THE FLING OF 1 REPORTS REGARDING THE ARKANSAS 1 EDUCATION PROGRAM (A SEPARATE 1 DOCKET NO. 08-066-RP

CONSERVATION ACT) 1 PROGUM OF THE ARKANSAS ENERGY 1

SECOND ANNUAL REPORT

A. Participants

B. Purpose

C . Term

D. Scope I.

IT. Media promotion

111. Training and Certification

IV. Education and Outreach

Education and Information Outreach (Residential}

6 - 1 2 Schools, Large Commercial and Industrial)

E. Budget Review AEO Administration

summary F. Program Evaluation

page25

page26

page28

PARTICIPANTS

This second annual report for the Energy Efficiency Arkansas program is provided by the

Arkansas Economic Development Commission-Energy OEce (the “AEO”), Arkansas Oklahoma

Gas Corporation, Arkansas Western Gas Company, Centerpoint Energy Resources Corp., db/a

Centerpoint Energy Arkansas Gas, The Empire District Electric Company, Entergy Arkansas,

Inc., Oklahoma Gas and Electric Company, and Southwestern Electric Power Company (the

“EEA Utilities” and, together with the AEO, the “Parties”) for the statewide education program

Energy Efiiclency Arltansas of38

ENERGY EFFICIENCY ARKANSAS SECOND ANNUAL REPORT

approved in Order No. 7 of Docket No. 07-083-TF. Although not required by the PSC to

participate in the First MOU, the Arkansas Electric Cooperatives Corporation member electric

cooperatives (“AECC”) agreed to voluntarily contribute their pro-rata share for expenses

contained in the F k t MOU.

PURPOSE

The purpose of the EEA Program is to cost-effectively deliver relevant, consistent, and

fuel neutral information and training that causes people to consume less energy through energy

efficiency and conservation measures.

TERM

The term of the EEA Program will end on June 30,2010, unless otherwise ordered by the

Commission or unless otherwise agreed to in writing by the Parties. This report covers activities

from January 1,2008 through March 3 I, 2009.

The EEA Program consists of four primary program components which are:

Media Promotion

Training and Certification

Education and Information Outreach (Residential)

Education and Information Outreach (Large Commercial and Industrial)

The following is a brief summary of the activities and progress of EEA:

Energy Efticiency Arkansas of 38


I. Educational and Information Outreach, Residential

The Education and Information Outreach component o the EEA Program has included

the foIlowing four activities: (1) developing and printing fact sheets; (2) reproducing and co-

branding publications; (3) responding to requests for distribution of information; and (41

sponsoring Energy Star Home seminars for builders.

A. Developing and printing fact sheets

0 The EEA has developed and printed five fact sheets. Each fact sheet provides

customers with an explanation of low-costho-cost actions that they can take

within that category and the resulting benefits.

The fact sheets are posted on the EEA website:

www.enernyeffici~ncvarkansas.orp

Camera readies have been provided to the utilities for bill stuffen and distribution at utility events.

0

o Following are the titles of the fact sheets: . Heating . Cooling . Water Heating

m Lighting and Appliances . Locating and Sealing Air Leah

The AEO developed a direct mailing distribution database for EEA materials that

include Arkansas’ U.S Department of Housing & Urban Development - Public

Housing Authorities, public libraries, Weatherization, Community Action

Programs, and USDA Cooperative Extension Offices. AI1 organizations have

received Heating and Cooling fact sheets. The second round of mailings will

begin in April, 2009. The Cooling fact sheet is being reprinted and will be

distributd at the same time. Wafer Heating, Lighfing and Appliances, und

Locating and Seuling Air Leaks will be distributed with the Cooling fact sheets.

Energy Efkiency Arkansas of 38


Additionally, distribution of the fact sheets were made to organizations and

special events that included Earth Day, Energy Awareness Month, USGBC-

Sustainable Arkansas, Weatherization Day, and Arkansas Homebuilders

Association home shows throughout the state. Fact sheets were also given to

utilities.

Below is a recap of the distribution of fact sheets during this reporting period

by AEO:

Fact Sheet Hard Copies

Heding Cooling Waier Heating Lighting and Appliances Locutiag 8 Sealing Air Ducts

Number Distributed

Total 33,422 3 5,920

7,924 7,174 7,924

Total 92,3 64

Number Distributed to Utilities

400 100 400 400

400

1,700

Home Energp Projecfs BookIeh Hard Copies 8,49 1 197

Note: This distribution represents materials shipped from AEO and may not exactly

represent fid distribution to customers.

~

Fact Sheet by Email

Heating Cooling Water Heating Lighting m d Appliances Locating & Sealing Air Ducts

Number Distributed

Total 19,600 19,000

800

800 800

Total 41,000

Energy Mciency Arkansas of 38


Heating Fact Sheet Distribution Other Number Distributed

Total Living Green Insert to the Arhnsm Democrat Gazette 91,640 OG&E Bill Sfufler 60,000

Total 151,000

0 Each fact sheet provides customers with an explanation of low-costho-cost

actions that they can take within that category and the resulting benefits.

Camera readies have been provided to the utilities for bill stuffers and distribution

at utility events.

This distribution represents materials shipped from AEO and may not exactly

represent final distribution to customers.

0

The costs for these activities werewn as follows:

Fact Sheet Budvet

Total costs for November 2007 - December 2008

- Develop, Print and Store Fact Sheets

Total costs for January 2009 - December 2009

* Print and Ship Fact Sheets

Total costs for January 2010 -June 30,2010

- Print and Ship Fact Sheets

Actual Thru

Budget 3/30/09

$ 39,754 $ 19,486

$ 37,508 $ -

$ 2,754 $ -

Energy Efficimcy Arkansas PageSof38


Total Costs for the Promam Term $ 80,016 $ 19,486

Budget Narrative: Fact sheets have been distributed at trade shows, to the direct mailing

distribution database, meetings and events. The first shipment to the fulfillment center for the

media campaign is scheduled for March, 2009. Printing costs will increase to budget levels in

2009, and printing may be needed in 2010 for the spring media campaign. Development, maiIing

and storage costs of the factsheets are being absorbed in the Indirect Costs.

B. Reproducing and Co-branding Publications

The AEO has developed two Arkansas specific publications for consumers that address

low-codno-cost energy efficiency measures, as well as those that require greater evaluation and

investment: (1) the Home Series and (2) the Horn Energv Projects - An Energy Comervafwn

Guide f i r the Do-It-Yoursever.

The Home Series includes six booklets (Home Heating, Home Cooling, Home

Insulation, Home Tightening, Major Home Appliances, and Water Heating). The AEO

updated and edited the Hume Series to include a new cover design that identifies with EEA and

has made it available in camera ready format for the utility parties to print. It is also available to

be downloaded from the EEA website.

The Hume Eroerw ProjecrS - An Energy Conservation Guide for the Do-ld- Y0urelf.r is

an 83 page booklet that describes how energy is used, gives estimated breakdowns of annual

energy bills, and provides detailed, step by step instructions for 25 do-it-yourself, cost effective

energy Conservation and efficiency measures. The AEO updated and edited the cover to identify

with EEA and made it available in camera ready format for the utility Parties to print. The

booklet can also be download from the EEA website. Additionally, the Home Energy Projects - An Energy Comervafwn Guide for the Do-It-Yourseyer is being reprinted in sufficient

quantities for distribution with the fact sheets by mail, and to organiiations, and at special events.

Energy Mciency Arkansas of 38


Home Energy Prujects Booklefs Number Number Distributed Distributed

Total to Utilities

8,49 1 197

Note: This distribution represents materials shipped from AEO and may not exactly

represent final distribution to customers.

The estimated costs for these activities are broken down as follows:

Home Projects Booklets

Total costs for November 2007 - December 2008

- Print, Store and Ship Booklets Store Booklets Ship Booklets

Total costs for J m w 2009 - December 2009

Print Booklets Store Booklets Ship Booklets

Total costs for January 2010 - June 30,2010

ship Booklets

Total Estimated costs for the Program Term

Budget

$ 115,982

$ 110,000 $ 2,482 $ 3,500

$ 115,016

$ 110,000 $ 5,016 $ -

$ 5,246

S 5,246

S 236,244

Actual

$ 36,667 $ 3,145

$ 899

$ 40,711

Budpet Narrative: The distribution of the booklets to date Ras been to trade shows, direct

mailing distribution database, meetings and events. The first shipment to the fulfillment center is

scheduled for March, 2009; Printing costs will increase to budget levels in 2009 an additional

printing may be needed in 2010 for the spring media campaign. Storage costs are higher than

budgeted in 2008 because the units were leased for the 10 months and the budget was for just 6

months.

Energy Effidency Arkansas of 38

ENERGY EFFlCl ENCY ARKANSAS SECOND ANNUAL REPORT

C. Responding to Requests for Distribution of Information

The contract for the call and fulfillment center is in place to meet the need in handling the

expected high volume of calls and requests for information from the media campaigns. Alliance

Communications in Orlando, FIorida, and LCS Marketing in Little Rock, Arkansas, will provide

the call and fulfillment center services. Consumers calling this number will be offered the

materials by email or postal mail. Packets mailed to consmers will include the five fact sheets

and the Home Energy ProjecS booklet. Alliance Communications and LCS Marketing will

report tracking data monthly after the first media campaign starts.

AEO continues to be responsible for distributing bulk copies of the fact sheets to local

Community Action Programs (CAP) Agencies, USDA Rural Development, Cooperative

Extension offices, Arkansas Development Finance Authority (ADFA) HOME Program

recipients as well as statewide events such as EARTH DAY (April), Weatherization Day and

Energy Awareness Month (October), etc.


Call and Distribution Center Budget

Budget Actual

TotaI costs for January 2008 - December 2008 $ 200,790

Postage $ 5,000

Call Center $ 110,000 $ 99

shipping $ 6,790

Fulfillment Center $ 79,000

Total costs for January 2009 - December 2009 $ 192,000

Postage $ 5,000

Call Center $ 108,000


Fulfillment Center $ 79,000

Total Estimated Cost for Promm Tern $ 392,790 $ 99

Budget Narrative: The services of the call and fulfillment center was not needed until

the media campaign was contracted. The contract for the call and fulfillment center will be

finalized the first part of April. Costs for the centers will be on a piece rate.

D. Energy Star Homes - Builder Seminars

EEA will sponsor three Energy Star Homes seminars. Negotiations are in process for

two presenters for these seminars. Contracts should be in place by the end of July. The seminars

will be offered this fall. Each seminar will review the Energy Star Home energy performance building practices

and techniques, standard requirements, and support and incentives for Energy Star builders. The

seminars will be available to dI Arkansas licenced homebuilders and their sub-contractors;

however, the workshops will be located in Little Rock, Fayetteville and Jonesboro because they

are the areas with the greatest concentration of new homebuilding.


Energy Star Homes

Budget


* Three training workshops $ 12,250

Total Esthatsd Cost for Promam Term $ 12,250

Actual

Energy Efficiency Arkansas ~ q e 9 d f 3 a


Budget Narrative: The contract for this training is still being developed.

n. MEDIA PROMOTION

A multi-media effort is being developed to promote measures for which the consumer

can take an action, at very little or no cost in order to achieve energy savings without

inconvenience or sacrificing comfort. The premise is to make consumers aware of energy saving

opportunities, motivate individuals to accept responsibility and act, provide specific cost

effective energy efficiency measures, and inform them how and where to get information; with

the ultimate goal of changing individual or collective behavior. Information that helps to raise

awareness and educate the end-consumer is an integral part of this initiative. The contract was

bid as a fixed price contract to Stone Wad. They are developing the effort using a ‘‘Tighten-Up”

slogan. The cooling season promotion should start early May, 2009.

A. Create and Run TV spots

Stone Ward is developing two new television spots - one for the winter and one for the

summer seasons. Stone Ward is working on spot development and strategic planning for ad placement, purchasing ad time, monitoring and reporting. Stone Ward is making every effort to

pursue well researched and targeted time slots and maximized value added purchasing. Both

spots are being developed and created simultaneously; the summer TV spot will be aired in the

spring of 2009 and 20 IO; the winter spot will be aired in the fall of 2009.

Create and Run TV SDots

Budget Actual

Total costs for Januarv 2008 - December 2008 $ 212,500

- Develop and create two new TV spots $ 50,000

- Duplication of spots and distribute spots $ 2,500

Energy Efficiency Arkansas of 38


- Air time purchasing for local and cable $ 125,000

* -20% professional fees $ 35,000

Total costs for J m w 2009 - December 2009 $ 574,500

Duplication of spots and distribute spots $ 4,500

- Air time purchasing for local and cable $ 475,000

- -20% professional fees $ 95,000

Total Estimated Cost for Promam Term $ 787.000

Budget Narrative: The contract is in place but no invoices received to date.

B. Create and Place Print Ads

Print ads are being developed through Stone Ward for common message(s) to

complement the TV spots and fact sheets that identify low cost and no cost measures and contact

information. The newsprint ads will be placed in selected local. newspapers and consumer

publications. The ads will run in conjunction with high profile national media campaigns, along

with Energy Awareness Month, Weatherization Day, and EARTH DAY, and other events as

agreed upon.


Create and Place Print Ads

Budget


+ Creative development $ 7,000

- Duplication of ads for distribution $ 500

- Adplacement $ 10,000

-20?40+ professional fees $ 3,500

Total costs for January 2009 - December 2009 $ 3 6-95 9

Actual

Energy Efiuency Arkansas P q e I l o f 3 8


+ Duplication of ads for distribution $ 1,000

- Adplacement $ 29,799

-20%+ professional fees $ 6,160

Total Estimated Cost for P r o m Term $ 5 7,959 u

Budget Narrative: One invoice has been received for placing the Heating Fact Sheet included in

Living Green Edition of the Arkansas Democrat Gazette for Energy Awareness Month.

C. Create and place radio spots

Two radio spots are being designed to complement action oriented, do-it-yourself energy

efficiency tips (fact sheets), and TV spots. Each radio spot will identify the EEA website, 1-888

number, and c 4 1 ~ ~ a l utility” for more energy saving ideas. Stone Ward will make every effort to

pursue well researched and targeted stations and available time slots. Radio spot development

will begin in the fall 2008 for airing beginning in the winter of 2008 and continuing seasonal

airing through December of 2009.


Create and Place ]Radio Spots

Budget


Procure contract for services

- Development of spots

Duplicationofspots .

Spot placement

-20% professional fees

$ - $ 6,000

$ 1,000

$ 30,000

$ 7,200

Actual


Energy Efficiency Arkansas Page12of38


Duplication of spots for distribution $ 1,800

Spot placement $ 45,534

-20% professional fees $ 9,466

Total Estimated Cost for Program Term $ 101,000


D. Develop and Maintain a Fuel Neutral EEA Website.

A fuel neutral EEA website is being developed. The URL is in place and resides on the

AEO server and is managed by AEO M. The website will offer fuel neutral information on

energy efficiency measures; practices, resources and technologies for all customer classes. The

website will include direct links to the utility Parties as well as AEO publications, EEA media

advisories, upcoming events, etc. The AEO has web-tracking software in place that is able to

track website visits, page or document views and downloads.


Develop and Maintain EEA website

Budget


Develop and maintain the EEA website $ 50,070

Total Estimated Cost for Program Term $ 50,070


ActuaI



III. TRAINING AND CERTIFICATION

EEA has provided training andor certification in the following areas:

HVACR - Residential and load sizing certification and duct sealing training

Residential Energy Auditor training and certification

Certified Energy Management (C.E.M.) - Program for Professional Certification

Agricultural energy data collection - audits

EEA will provide additional training in the following areas this year

Installation and maintenance of Solar Energy Systems

0 Boiler operation and maintenance training

A. HVACR - Residential Load Sizing and Duct Sealing Training

The AEO has contracted with Air Conditioning Contructom of American (ACCA) and

CleaResult to provide training on Manual D and J, and training on duct loss identification and

proper sealing techniques. Arkansas licensed Class A and B HVACR contractors are being

invited to attend. Regional mailing labels and envelopes have been provided by the Dept. of

Health - Protective Codes HVACR Section, and the W A C R Association. Certification of

completion for load sizing and duct design training is typically two and one-half days with one-

half day dedicated to identifying duct loss and sealing ducts. A list of those who successfully

complete the training has been provided to all the utility Parties for use in their other quick start

energy efficiency programs. So far 173 have signed up for the sessions and 134 have been

trained. No fees Rave been charged for the class.


Energy Efficiency Arkansas Page14of38


Training HVACR- Residential load sizing and duct sealing


- - Four workshopdtraining


- Two workshopdtraining completed - Four workshopsltraining remainhg

Total costs for January 2010 - June 2010

Thee workshopsltraining

Total Costs for the Promam Term

Budget ActtuaI $ 58,600

$ 58,600 $ 41,204

$ 87,900

$ 29,300 $ 21,898 $ 58,600

$- 43.950

$ 43,950

$ 190,450 $ 63,102

Budget Narrative: The three day courses have been well received with near or full

registratiodattendance. Costs are under budget because the utilities have volunteered to provide

training sites and refreshments at a number of locations. Costs for the last two sessions this

spring are not reflected in the 2009 totals.

B. Residential Energy Auditor Training and Certification

There are a limited number of trained personnel in the marketplace who are abIe to

conduct an energy audit or perform duct blaster and blower door tests on new or existing homes;

and there are even fewer who are certified. However, with implementation of the utility energy

efficiency programs, demand for these professional services will increase.

The EEA will sponsor one Energy Auditor training workshop in the spring of 2009, two

workshops in summerlfall of 2009 and one in the spring of 2010. The AEO has contracted with

Kansas Building Science Institute for the training. The maximum class size will be limited to 10

in-state attendees, normaIIy. KBSI has designed this workshop for energy auditors, utility

Energy Efficiency Arkansas or38


customer service representatives, housing inspectors, HVAC contractors, insulators, builders and

remodelm. Attendance at a workshop Will require an initial payment of $825 per person to

secure a slot for the training. This will help to ensure that the registered attendees actually

complete the course.

The AEO and EEA utility Parties are working with other public and private organizations

to promote this effort, e.g. the AR Home Builders Association, Department of Health - Protective

Health Codes - HVACR Section, HVACR Contractors Association, AR Builders Licensure

Board, Arkansas Weatherization Program, Arkansas Community Action Agencies Association,

and area CAP Agencies.

The estimated costs for these activities are broken down as follows;

Training

Residential Energy Auditor Training and Certification

Total costs for Januarv 2008 - December 2008

Contract for professional training services

one energy auditor training workshop



two energy auditor training workshops

Total costs for January 2010 - June 2010

one energy auditor training workshop


Total Estimated Cost for Promam Term

Budget

$24,000

$24,000

$48,000

$48,000

$24,000

$24,000

$96,000

Actual

Budget Narrative: The contract is in place and the first training will be the last of March and

first week of April. Contracts are being let for the remaining sessions.

Energy Effkiency Arkansas Page 18 d 38


C. Certified Energy Management (C.E.M.) - Program for Professional

Certification

In many cases, 25 percent or more of a facility's utility bill can be attributed to inefficient

equipment and building operation procedures and is therefore paid unnecessarily. In-house or

locally available trained and certified energy manger@) can assist school districts, hospitals,

large commercial facilities, and industry to identify unnecessary energy waste. Offering an energy based education to large commercial and industrial facility and plant management

personnel (with the added benefit and opportunity for professional certification) increases the

likelihood that real savings will be achieved. Additionally, an increase in the professional energy

trades workforce in Arkansas can enhance the potential for future utility and state incentives for energy improvements that are dependent on certified professionals.

Since its inception in I98 1, the, Certified Energy Manager (C.E.M.9 credential issued by

the Association of Energy Engineers (AEE) has become widely accepted and used as a measure

of professional accomplishment within the energy management field. It has gained industry-

wide use as the standard for qualifying energy professionals. It is recognized by the U.S.

Department of Energy, the Office of Federal Energy Management Programs ( F E W ) as well as

by numerous state energy offices, major utilities, corporations, and energy service companies.

Currently to receive the training, Arkansas facility managers must travel out of state;

often this is cost prohibitive (tuition and travel). Conducting the training in Arkansas would

provide accessibility and incentive to many Eacility managers.

To encourage participation iu the 5-day AEE - Certified Energy Manager (C.E.M.)

training, EEA has offered an off-set to the cost of tuition by requiring the attendee to pay only

one half of the registration fse, $543.00, EEA offered one C.E.M. training this spring and plans

to offer one more this fall. The AEO gave a grant to ASHRAE for the first training session and is

working with Arkansas Environmental Federation to provide the second training, both using

Energy Efiuency Arkansas of 38

ENERGY EFFlClENCY ARKANSAS SECOND ANNUAL REPORT

AEE instructors. There were 27 attendees in the first 5-day training period and all of those tested

to become certified C.E.M.S.


Training

Certified Energy Manager Training and Certification

Budget

$1 5,140 Total costs for January 2009 - December 2009

One EEA - C.E.M. workshop $15,140

Total costs for January 2010 - June 2010 $15.140

One EEA - C.E.M. workshop $15, I40

Total Estimated Cost for Program Term $30.280

Actual

$15,410

$15,610

Budpet Narrative: The budget was exceeded for the first training because 27 instead of 20

students participated.

D. Boiler Operation and Maintenance Training

Boilers are used in a variety of large commercid applications and industries including,

but not limited to the chemical industry, corrugated box industry, automobile industry, furniture

industry, foam products industry, food industry, petroleum industry, textile industry, carpet

Energy Efflclency Arkansas Page $8 of 38


industry, utilities, schools, dry cleaners, apartment buildings and hospitals. Providing training on

the energy-efficient use, operation, and maintenance of boilers will promote improved energy-

efficiency and will have a lasting impact on energy savings.

The AEO is working with Mid-South Steam Boiler and Engineering to develop a scope

of work for this training. Gary Myrick with the Department of Labor is currently reviewing the

proposal to develop a customized, three-day EEA boiler training workshop. The workshop will

be designed to provide in-depth training on safe and energy-efficient boiler operation including

maintenance, inspections, code compliance and troubleshooting. At the conclusion of the

training, the students will be presented with a certificate of completion and credited with 2.4

Continuing Education Units. The optimum number of students is around 20.


Training

Residential Energy Auditor Training and Certification

Budget Actual

$28,500 Total costs for January 2009 - December 2009

0 Oneworkshop $28,500

Total Estimated Cost for Promam Term $28,500 $

Budget Narrative:

expenditures on the training to date.

This training is still being developed and there have not been any

E. Agricultukl Energy Data Collection-Audits

Arkansas Resource Conservation and Development (RC&D) Councils are currently

offering their services to help farmers with the USDA 9006 application process. The Farm

Energy Etf[Uencj Arkansas Page19of38


Security and Rural Tnvestment Act of 2002 (the Farm Bill) established the Renewable Energy

Systems and Energy Efficiency Improvements Program under Title IX, Section 9006. This

enables qualified farmers to receive loans and grants to improve the energy efficiency of their

operation. One of the requirements of this loan program is that a farmer submitting an energy

efficiency application with a project cost greater than $50,000 must obtain an energy audit.

Currently AEO has trained and qualified 8 data collectors in the Council areas to perform

energy audits. Funding for the audits has just been appropriated by USDA and farmers can now

start applying for these funds.


Training

Agricultural Energy Data Collection-Audits

Budget Actual

$36.800 Total costs for January 2008 - December 2008

One training workshop $36,800 $25,000

Total Cost for Program Term $36,800 $25,000

Budget Narrative: This training is under budget and a request has been received to perform one

more. training session in the spring of 201 0, if funds are available.

F. Plumbing Solar Hot Water Systems Training

Solar water heating is the most cost-effective solar technology available today. There is

increasing interest in having a soIar water heater installed in homes and businesses but there are only a few solar water heater installers in Arkansas. Additionally, the Arkansas Department of

Energy EfAclency Arkansas F m 20 of 38


Health administers regulations for the installation of solar thermal systems under the authority of

the Plumbing Division. These regulations are likely to be updated at the next legislative session.

The EEA training will comply with the revised regulations. Action will be taken on this item

after the current legislative session.

Two one-hour training sessions would cover both the sizing fundamentals as well as a

hands-on demonstration of the actual equipment, The training sessions would be presented in

three regions around the state in order to reach as many licensed plumbers as possible. Under an AEO contract, the training will be conducted by a solar thermal installer who has been tested and

certified by the North American Board of Certified Energy Practitioners (NABCEP).

These training sessions will enable plumbers to competently install solar water heating

systems. At least one year of experience in the service, repair and/or installation of solar thermal

systems is required before taking the test to become a certified thermal installer. NABCEP

provides this testing in several states throughout the country. NABCEP can conduct the testing

in Arkansas-students pay $250 to take the test. This will certify plumbers as solar thermal

(solar hot water system) installers.


Training

Plumbing S o h Hot Water Systems

Budget Actual


0 Three training sessions $34,050

T o d Estimated Cost for Program Term $34.050 $ 0

Energy ERciancy Arkansas Page21 of38


Budget Narrative: No funds have been spent on this training. Action will be taken on this after

the legislative session, since code revisions are being considered. The AEO is considering a

revision in the Scope of Work for this initiative, Where federally funded tax incentives or future

rebates become available for solar water heating systems, the demand for training will increase

and certified installers will be in demand. The AEO is reviewing a “train the trainer” option

where dedicated instructors from participating colleges and Vo-tech schools would be trained to

teach future courses to the Arkansas building/eIectrical/plwnbing trades. The AEO will provide

further details in the near future for review to the participating partners.

IV. EDUCATION AND INFORMATION OUTREACH (LARGE COMMERCIAL

AND INDUSTRIAL)

The EEA will provide webinars and workshops for school districts and the large

commercial and industrial sectors.

A. School Facility Managers Training and Webinars

School Districts have a significant impact on the State’s consumption, energy required by

the utility and the economic stability of the communities they serve. In many communities

throughout our rural state, the school district is the industry. Therefore, it is incumbent upon and

fiscally responsible to recommend, offer, and deploy reasonable efforts for eliminating wasted

energy, improving energy efficiency, and reducing the environmental impact of school facilities.

Through st USDOE Grant administered by the AEO, Dr. Darin Nutter, Ph.D., P.E, with

the University Of Arkwas Department Of Mechanical Engineering, conducted a small K-12

school utility assessment in 15 schools in NW Arkansas (this represented 1 million ft of

building area). At the conclusion of the assessment, Dr. Nutter developed workshop-base

curriculum for teachinglinforming Arkansas K-12 school personnel the current methods,

practices, and techniques for significantly reducing utility bills and improving overall building



performance.

building envelope, HVACR systems, and operations and maintenance.

The curriculum offers six components: lighting, plug loads, water heating,

The AEO has contracted for services with Dr. Nutter to conduct six webinars as an

outreach effort for school facility managers on each of the six components. He has started the

program and preparing for the first webinar.


Training

K-12 SchooI Maintenance Webinars

Budget Actual


Contract for professional services $15,000

- Five webinars $23,850

Total costs for January 201.c June 30,2010 $6,770

Contract: for professional services $2,000

Onewebinar $4,770

Total Estimated Cost for Program Term $45,620 $

Budget Narrative: No funds have been spent on this training. The contract has been let and

training should start in April.

B. Energy Eficiency in Industry Workshops

The large commercial and industrial sectors present some chalIenges from an education

and promotion perspective. Their information needs are quite varied depending on size, how

energy is used, the relative importance of energy costs to the bottom line, access to financial

resources, availability of trained personnel, etc. The AEO, through the EEA, has contracted with

Energy EPftcency Arkansas of 38


Arkansas Manufacturing Solutions to develop and implement an information outreach program

comprised of two activities:

1. Develop additional information resources to include in the EEA website for large

commercial and industrial applications. The website will be a clearinghouse for

information and vender resources, engineering tools, and financing options.

Additionally, the website will be a resource for self assessment tools to benchmark

energy use and savings.

A workshop called Energy 101 was developed and implemented for the two workshops in 2008

and will also be presented at four workshops will be implemented in 2009. The first workshop

for this year will be held in Fayetteville in March. In April the workshop will be held in

Jonesboro.

2. Energy 101 focuses on topics that are current, relevant and present timely opportunities

for energy and demand savings. The topics include:

Basics of an effective energy management program

Building and plant auditing techniques and tools

0 Understanding utility rate schedules 0

0

Commissioning

Fuel-fired systems - steam, direct-fire systems, waste-heat recovery, etc.

Electric systems - motors, air-compressors, lighting, chillers, pumps etc.

HVACR and commercial restaurant equipment

Automated control systems and strategies


Training

IndustriaVCornmercial Seminars

Budget Actual

TOM costs for January 2008 - December 2008 $30.000 $90,000

Energy Efllciency Arkansas of 38


'Two workshops $30,000

Total costs for Jmww 2009 - December 2009 $60,000

Four workshops $60,000

Total Estimated Cost for Proarm Term $90,000 $90.000

Budget Narrative: Entire budget granted to Arkansas Manufacturing Solutions for coordination

of this training with Dr. Nutter at the University of Arkansas. This program is under budget. One

additional training may be possible.

Budget Review AEO Admin Budget

Budget Item AEO Admin Actual

Total costs for January 2008 -June 2010 $ 169.997

Personnel - Sdary Personnel - Fringes

$ 101,140 $ 27,013 $ 30,342 $ 10,641

Supplies and Materials $ 4,000 $ 5,765

Travel $ 2,000 $ 896

Indirect @ 24.7% $ 32,515 $ 5,830

Total Costs for the Propam Tern $ 169,997 $ 50,145

Budget Narrative: The budget for Supplies and Materials is over budget. The overage will be

applied to Indirect Costs in the fmd accounting of the budget.

Energy Efficiency Arkansas P a g e 25 of 38


Budget Summary

The following estimated budget summary assumes all projects and program activities will

be implemented during the Program Term. The estimated Program Term budget for the EEA

Program includes AEO administrative costs (overhead, contract management, and staff support),

contractual services, supplies and materials (printing, replication, distribution, event costs,

website development and maintenance, etc.) and travel. The AEO administrative costs represent

approximately seven percent of the total budget estimate.

EEA Program

Budget Summary Estimate for the Program Term

Budget Item

Personnel

salary

fringe

Supplies

and

Materials

Contractual

Grants

Travel

EEA Costs AEO Admin Totals Totals As Of

3130109

$ - $ 101,140 $ 101,140 $ 27,013

$ $ 30,342 $ 30,342 $ 10,641

$ 170,260 $ 4,000 $ 174,260 $ 74,053

$2,098,769 $ - $ 2,098,769 $ 151,224

$ 40,610

$ - $ 2,000 $ 2,000 $ 896

Energy Efkiency Arkansas of 38


Direct sub total

Indirect @ 24.7%

Subtotal

$2,269.029 $ 137.482 $ 2,406.511 $ 304.43 7

$ 32,515 $ 32,515 $ 9,3 0 1

$2,269,029 $ 169,997 $ 2,439,026 $ 313,738

I Total Budget Available - $ 2,125,288 1

Budpet Narrative: The expenditure for EEA programs will increase dramatically during the next six months, especially with the start of the media campaign and d l center. All existing contracts have already been renegotiated for the last fiscal year, July 1, 2009 to June 30,2010. Of the Budget Available, $1,5 16,667 is under contract and the remainder is still being developed or contracts negotiated.

Energy Efficiency Arkansas page 27 of 38


Program Evaluation

The EEA Program restarted in August, 2008, with the appointment of a full time Program

Administrator. Some aspects of the program were in place before this and many were just

getting started or still being developed. Below is an evaluation of the effectiveness of the

program to date.

Scope

All major components of the EEA program have been started and are proving beneficial to those

participating in the program and the Arkansas consumer. Below is a more detailed analysis of

the findings :

I. Educational and Information Outreach, Residential

This aspect of the program has been very effective in developing and distributing the

Fact Sheets and Home Energy Project booklets to the public. This will be improved in May

with the start of the surnmer media campaign. The AEO has continued to use its well-developed

contacts in the building trades organizations to make effective distribution of materials.

According to the Annual Report, over 92,000 fact sheets were distributed through these

traditional channels, along with over 8,000 Home Energy Project booklets. Additional methods

were employed to distribute these materials including 41,000 being sent by email to employees

by such companies as Lazy Boy and WalMart. Another traditional circulation of these materials

came from use of an ad in the Arkansas Democrat Gazette. Over 91,000 copies of the Heating

fact sheet were distributed in this manner, Early on the Utilities were encouraged to make the

fact sheets into bill inserts for their customers. OG&E has reported sending bill inserts to over

60,000 of its customers. Training for the Energy Star Home is being developed; three Energy

Star Homes for builders and sub-contractors will be conducted before June of 201 0.



Energy Star Home is a growing segment in new home construction. To e m the

ENERGY STAR, a home must meet the guidelines for energy efficiency set by U.S.

Environmental Agency (EPA). These homes are at least 15% more energy efficient than homes

built to the 2004 Intemtional Residential Code (IRC), and include additional energy-saving

features that typically make them 20-30% more efficient than standard homes.

ENERGY STAR homes require the homebuilder (and sub-contractors) to follow specific

guidelines for 1 ) effective insulation 2) high-performance windows 3) tight construction and ducts 4) efficient heating and cooling equipment 5 ) efficient (Energy Star qualified) products and

6) third party verification with the help of independent Home Energy Raters. The Energy Star

Home training will compliment EEA workforce training efforts for W A C load-sizing, duct

sealing and Residential Energy Services Network (RESNET) Energy Auditor training.

Though standards and guidelines for the ENRGY STAR home have been developed at

the national Ievel, a standardized curriculum or Certified trainers are not available. To that end,

the AEO is currently screening Arkansas licensed and registered Energy Star Qualified Home

builders and Arkansas Energy Raters involved in the process to develop and provide the training

for EEA based on the national standards and guidelines. AEO is very interested in developing

this training and sees it to be an important aspect of EEA. Costs for the Energy Star Home

seminars will be more expensive than first determined because of a need for multiple presenters.

Media Campaign

Many delays have occurred .in this program. On March 20,2008, the Parties, in consultation with

the General Staff of the PSC, agreed to amend the Second MOU to reallocate some of the funds

that had been budgeted for media promotion. It was agreed that approximately $375,000 would

be reallocated from the media promotion component, for which an RFP had been issued, to the

training and certification (residential and small commercial) component andor the information

outreach in large commercial and industry sectors component.

Energy Efficiency Arkansas Page 20 of 38


As a result of this decision, the AEO notified the Arkansas Office of State Purchasing (OSP) that

the Request €or Proposal (WP) issued on January 14,2008 was no longer valid due to the need

to reallocate funds and to make changes in the media objectives, Le., the existing commercials

would not be used and overall funding would be reduced. The RFP process was suspended and

candidate vendors were notified. Additionally, the AEO notified OSP to delay posting the

“Invitation to Bid” €or the in-bound call center, fulfillment services and material storage that had

been submitted on March 15,2008; until further notice.

The EEA utilities jointly filed the request for approval of the Second Amended and Restated EEA

Program Plan with the PSC on June 4,2008. AECC again agreed to voluntady contribute their

pro-rata share for expenses contained in the Second Amended and Restated EEA Progrum P h . In addition to the revised budget, the joint filing provided for an extension of the EEA program

to June 30,2010 and requested the removal of the requirements in Order No. 5 that the finalized

media budget and the finalized media plan were to be filed and approved by the PSC.

Once the MOU was signed AEO began working with DF&A to get the RFP agreed upon

by AEO, PSC and the collaborative of Utility companies. The RFP was posted for bid in

September, 2008. Bids were opened the end of October, 2008. Bid evaluation involved a

cornbination utility companies, government agencies and community organizations. The bid

evaluation team was comprised of 13 members h r n this group. The Technical evaluation ofthe

bids was held in November, 2008. The Oral evaluation of the bids was scheduled in December,

but was moved to early January because of a winter snow storm. In January, 2009 Stone Ward

became the successful bidder. They received a contract to start work in late January, 2009. The

contract still needed to go through the legislative review and this was accomplished in early

February, 2009. This first meeting with Stone Ward on website development was held the last of

February, 2009 and the campaign start date was set for mid May, 2009.

So the process started in October of 2007 and campaign should start 19 months later.

AEO has learned a lot through the process, which should significantly reduce the time required

for the process. AEDC has used AEO’s template and should be through the procurement and

legislative approval process-in 6 months.

With a contract in place, coordination with the corsortium to agree on the details of the

media campaign is flowing well. We are using a combination of live meetings coupled with


webinar hook ups to make sure everyone feels included. There is definitely a need for customer

education and awareness. Spot ads focusing on different aspects of energy efficiency are

definitely needed. Being fuel neutral will continue to be a challenge. Drawing the customer to

the website and call center will be a critical test €or the promotion program.

The development of the Website is critical to pull the consumer to the site repeatedly. We

want them to come back frequently. Website development needs to be budgeted again to make

sure the site stays updated.

Money was budgeted in the Quick Start for setting up a Website for EEA, but not to

populate the industridcommercial part of the web. There is still a need to develop additional

resources on the website and set up a clearinghouse for information and vender resources,

engineering tools, and financing options. Additionally, the website needs to be populated with

self-assessment tools to benchmark energy use and savings.

11. Training and Certification

EEA recommends continued training andlor certification in the following areas:

HVACR Residential load sizing and duct sealing training class has been given to about

4% of the licensed contractors. So far 134 students have had the ACCA W n g . It will

take several years to get even 20% participation by the licensed contractors, On an average the mailings for a region had over 300 licensed contractors, of which only 25

people working under these licenses were allowed to attend. Normally, the class was full

according to registration, but not always well attended. The results of the surveys of each

class have been combined to show the participants impression of the instruction and

facilities. Below are tables for the J8 Heatload class and Duct Sealing class:

Residential Manual J8 Load Calculations - Survey Responses

Energy Efficnncy Arkansas P a 91 of 38


The Topics provided information which

I will be able to use this information and resources.

The presenter was well prepared and knowledgeable.

The reference materialshesources are worthwhile and valuable to me.

The Subject materials met or exceeded my expectations.

The meeting room environment (temperature, lighting, seating space, etc.) was satisfactory.

, is Important to me.

6

AsW Stronalv

64 16 2

67 I 1 4

74 7 1

72 10

58 22 2

62 13 6 I

Disagree Stronalv

Duct Sealing - Survey Responses

Aaree Disawee 1

The Topics provided information which is

I will be able to use this information and

1 important to me.

2 resources.

The presenter was well prepared and knowledgeable.

The reference materialdresources are worthwhile and valuable to me.

The Subject materials met or exceeded

The meeting room environment (temperature, lighting, seating space, etc.) was satisfactory.

3

4

5 my expectations.

70

71

77

62

53

67

Energy ERrciency Arkansas P w 3 2 0 f 3 8

ENERGY EFFICIENCY ARKANSAS SECOND ANNUAL REPORT .

However, with federal and utility programs being developed or continued; right-sizing"

will be even more important, if not a criteria for funding or rebates. Continuation of the

training is recommended. A common thread of comments from these classes is the need

for even more training on the Wrightsoft software, a hands-on class is needed on duct

sealing and finally a'commercial Manual N version of this class is needed to compliment

this residential training. Collaborative participation in the class has been excellent. There

is a problem with the class because it is free. Deposits of $350 may be required for slots

in the class starting this fall to help curb this problem. The deposits will be completely

refunded upon completion of the class. There is a need to continue regional training for 3

more years based on the training being voluntary for the licensed contractors. After this

time the training should become centralized or integrated into the Community Colleges I Technical Schools.

Residential Energy Auditor training and certification will start the end of March and

has been a challenge to get going. The contract was hard to establish because we require

the trainers to come to Arkansas to perform the class. There are not any certified training

contractors in Arkansas. A contract for three more trainings starting in July is being bid.

o "here is some concern with this program because the intent is to take the trainiug

regionally around Arkansas. The next session is planned for FayettevilIe. The

intent of the training is two-fold: one is to provide a pool of certified residential

home inspectors for new construction; and the other is for existing residential

homes. Some areas of the state are in need of new home auditors and this market

is self driven. But all areas are in need of existing home auditors and the Utility

incentive programs are a critical driver. Unfortunately, only Entergy service areas

are being given access to these audits at this time.

o And then there is the President's Stimulus Program. This has triggered another

demand by folks wanting to perform home energy audits outside the scope of

EEA. There exists a gap between the EEA program and low income housing. This

need will be better met with the green job training. h particular, the state

Weatherization program wiII require an immense increase of trained, qualified

energy auditors and improvement contractors for their programs, which will

compliment the AWP effort.

0

Energy Efficiency Arkansas page 33 38


o Unfortunately, there is still st gap with these programs. To get an audit from

Entergy you have to have intentions of spending money to take immediate action

on the audit. To get funding under Weatherization you must qualify as being low

income. This leaves the vast majority of home owners unqualified to even know

what they need.

o There also is a need for different levels of audits and auditors. This is a good time

to develop some standardization of audits, auditors and procedures for the state of

Arkansas. RESNET has one standard? BPI another, Entergy yet another, NLR

Electric another, and Weatherization even another. AEO needs to work with all

interested parties to create a certification system similar to Oregon or Colorado,

that differentiate the variety of inspection needs in the marketplace and setup a

structure for individuals to become Home Energy Auditors.

Certified Energy Management (C.E.M.) training has been performed for the first time

in Arkansas and was successful. This training will continue to be offered as long as there

is a demand. AS= sponsored the first class and AEF has agreed to sponsor another

training session in November. The question becomes how many CEMs does Arkansas

need. Another way to look at it is that each major department within state government

probably needs to have at least one Certified Energy Manager. Additionally, individd

large commercial and industrid facilities would benefit from having a CEM an staff

This training was well attended the first session. These sessions should continue

twice a year until the demand falls off and then once every other year to

compensate for atbition.

Agricultural energy data collection - audits

Another session in 2010 has been already requested by the RC&D. This is a new

program for the agricultural sector and providing the training every other year

should keep up with demand and attrition.

Instabtion and maintenance of Renewable Energy Systems

Three applications of Renewable Energy System training are recommended solar

hot water, solar photovoltaic and geothermal. Economics are good for hot water

and geothermal and training sessions need to be offered to encourage installation

of these systems by licensed contractors. Economics of solar photovoltaics are

Energy Epficiency Arkansas Pwe ?4 of 38


dependent on utility, state and f e d d incentives. Training should be given on this

technology also, knowing the demand will increase and economics improve over

time.

Boiler operation and maintenance training

This training is touching the tip of an ice berg for energy conservation and needs

to be held at least once a year regionally and if possible to keep up with demand.

The University of Arkansas, Fayetteville, alone has 25 licensed boiler operators

needing annual training.

0

111. Education and Information Outreach (K-12 Schools, Large commercial and

Industrial)

School facility managers training and webhaw

The webinars for the K-12 schools is taking longer to develop than expected. But there is

a critical need for the training and awareness by maintenance supervision and operators related to

energy efficiency. It is recommended that the current training be continued thru 2015.

There is also a need for a centralized utility bill analysis for all public school districts.

The state needs to adopt something like School Dude to analyze the usage of the school

buildings. The utilities could then help feed information into the software to reduceleliminate the

need for keyed in data entry. The district and central management could use the information to

prioritize energy efficiency programs with the data-

It would be good for the K-12 system to have at least one C.E.M. for every fifty school

districts to monitor and be held accountable for the energy efficiency of the schools in the region.

Working with Energy Star Schools would be a logical step to provide uniform standards in the

state school system.

Energy Efficiency Arkansas of38


Energy Efficiency in Industry Workshops

This is another program that has a great potential for increasing energy efficiency. Energy

101 is still being taught regionally and will complete its first cycle this spring. There have been

over 80 attendees at the first two sessions. According to the survey of needs conducted the

following programs are listed in order of preference:

Weighted Survey Data from AMS training:

Facilities Energy Mgrnt/Planning Automated Controls Compressed Air Efficient Electric Motors Lighting Efficiencies Efficient HVAC Utility Rate Analysis Process Heat Advanced Energy Systems Waste Heat Power Generation

225 219 202 199 198 193 177 175 148 126

One survey was performed to look at workshop content and environment with the

following results:

IndustriaVCornmercial Workshop Survey Responses. Questions Excellent

5 1. How would you rate the content covered at this workshop? 15 2. How would you rate the instructors? 19 3. How would you rate the handouts? 20 4. How would you rate the workshop overall? 13

16 5. How would you rate the classroom?

4 3

13 7 2 7 1 14 1 12

Poor 2 1

Energy Emciency Arltansas Page 38 of 38


One more session on Energy 101 will be conducted in Jonesboro and then the emphasis

will switch to these other sessions the sessions listed above for the remaining two workshops.

With new CEMs h t h e businesses, utility companies, institutions and consulting firms,

the hopes are that energy efficiency in Arkansas will improve markedly. There may be a need to

provide a f o m for CEMs to be able to get together. The EEA through the AEO should take a

lead in professional development of CEMs.

Administration

From the Quick Start program there has been a lot assimilated in short period of time.

Many of the programs are just going through the first iteration as this report is being written, so

the administrative burden is still being defmed. There has been a significant amount of time

spent by other AEO staff, Chris Benson, Reda Bowen and Swan Recken, in addition to the time

of the Administrator, Ed Ellis to set up the program. With all the programs running an additional

person is needed to coordinate training sessions by maintaining databases, producing flyers,

soliciting sponsors and taking registrations. After the website is developed, there will be a

weekly need to update and populate the site. Manning of this activity will depend on how close

we want to be to the customer. Quck Start does not have all the data needed to completely

define the needs of the AEO to properly maintain the program. This will be more apparent by

this time next year.

Energy ERiciancy h n ~ s of 38


Respectfully submitted,

CENTERPOINT ENERGY RESOURCES COW.,

D/B/A CENTERPOINT ENERGY ARKANSAS GAS

Mickey S . Moon Senior Counsel Arkansas Bar # 2006026 401 West Capitol Avenue, Suite IO2 Little Rock, Arkansas 72201 (501) 377-4612

On behalf of the Joint Applicants


ARKANSASX(1)S... · ENERGY EFFICIENCY ARKANSAS SECOND ANNUAL REPORT Heating Fact Sheet Distribution...

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