Session 3: Free Money: The State of Incentives & Other Funding's
Track #3 Codes, Financing & Incentives
Marie Curatolo
CEM
312 551 8630
Tim Zelazny
RA, LEEP AP, WELL AP, CPHC, BECxP
312 551 8630
Hardik Miyani
EMIT, LEED Green Associate, CPHC
312 551 8613
As the cost of new construction continues to
rise, what incentives are available to help
alleviate those costs so your project is actually
built? Want to make it deep green/net zero?
What is available in IL and what can we learn
from other jurisdictions that could be adopted
at a local level to incentivize more innovative design in new construction?
Agenda
Utility Incentives▪ Overview
Case Study▪ Monitoring Based Cx
Deep Green Incentives▪ Availability
Renewable Energy Incentives▪ Commercial Buildings in Illinois
Agenda
• Understand the different types of utility incentives.
• Recall strategies pursued and realized savings from a MBCx case study.
• Analyze the deep green incentives available for new construction.
• Understand the renewable energy incentives available in IL.
Learning Objectives
Utility IncentivesAn Overview
Financial Incentives
• Existing buildings: Standard (pre-determined $/unit)
• Existing buildings: Custom ($/unit of energy saved)
• Small business
• New construction
Optimization• Retro-commissioning
• Monitoring-based commissioning
• Rooftop unit optimization
• Compressed air optimization
• Industrial refrigeration optimization
• Process cooling optimization
Utility Incentives
Assessments• Facility assessments
• Data center assessments
• Combined heat and power studies
Discounts• Instant discounts
• Business products discounts
Energy Analysis Tool• Business Energy Analyzer tool
Utility Incentives
Automated Fault
Detection and
Diagnostics
(AFDD) based
Provides real-time
analytics on
a buildings
operational data
Efficiently
identifies
operational
anomalies
Brings actionable
data to light so
informed decisions
can be made
Provides an
understanding of
how and where
energy is being
consumed
Assists in
prioritizing work
orders to respond
and implement
intelligently
Monitoring-Based Commissioning (MBCx)
EfficiencyEnsures MEP
equipment operates at
optimized state
ComfortIncreases awareness
surrounding comfort
control issues
O&MReduces costs with
operations and
maintenance
EnergyReduces energy
demand and
consumption
MBCx: Measurable Benefits
Why MBCx for New Construction?
MBCx Case StudyNew Construction
• 1.2 million ft2
• 800,000 ft2 dedicated to clinical care and research
• New construction added 33% more capacity
• Opened March 25, 2017
Case Study: MBCx for New Construction
New Construction Pilot Program:
• 18 Month Monitoring Period
• Integration Incentive—$25,000
▪ Paid upon successful implementation of MBCx platform
• Monitoring Incentive—$36,000
• Savings Incentive
▪ $0.07/kWh and $1.00/therm
▪ Up to 100% of project cost
▪ Electric incentives will start paying out after $36K
of savings have been realized but gas incentives
will be immediate upon verification of savings
Case Study: MBCx for New Construction
ECM
#Measure Description
Electrical Energy
Savings
(kWh/year)
Electrical
Cost
Savings
($/year)
Gas Energy
Savings
(therms/year)
Gas
Cost
Savings
($/year)
Incremental
Measure
Cost ($)
Simple
Payback
(years)
1Economizer AHU
Setpoint Optimization52,163 $2,815 - - $829 0.3
2Duct Static Pressure
Reduce/Reset367,708 $19,856 - - $1,658 Immediate
3
Setback Space
Temperature: Low Rise
Floors Night Setback
612,851 $33,094 82,061 $39,389 $4,974 Immediate
4
Setback Space
Temperature: High
Rise Floors Night
Setback
147,548 $7,968 19,769 $9,489 $4,145 0.2
5Chilled Water
Temperature Reset900,132 $48,607 - - - Immediate
Total 2,080,375 $112,340 101,830 $48,878 $11,606 0.1
Case Study: MBCx for New Construction
Deep Green IncentivesNet Zero, Passive House, LBC, Etc.
20% max off-site
Why Do Deep Green?
Santa Monica• All new single family construction NZE
California• All new homes and multi-family (up to 3 stories) NZE by 2020
• All new commercial NZE by 2030
NYC• Local Law 31 (city-owned buildings 50% reduction over 90.1-2013)
• Local Law 32 (stretch code, 20% savings over 90.1-2013 by 2019, 30% by 2025)
IECC 2021• AIA passed “Resolution for Urgent and Sustained Climate Action” in June 2019
• ZERO Code Renewable Energy Appendix (CE264-19)
• Membership vote in November for adoption into IECC 2021 as a stretch code
When Will Deep Green Design be a Code Requirement?
Source: NYSERDA 2019 New York Getting to Zero Status Report.
Why Do We CareAbout Chicago?
Illinois• Governor Pritzker, signatory of U.S. Climate Alliance (Jan 2019).
Achieve goals of Paris Climate Agreement = 26-28% reduction in net greenhouse gas emissions by 2025 from 2005 levels
• Illinois has reduced carbon emissions by about 16% in the years from 2005 to 2016
• Next Steps: 25% of energy from renewables by 2025
Chicago• Mayor Emanuel, signatory of Paris Climate Agreement
(December 2017)
• Chicago has reduced carbon emissions by 11% between 2005 to 2015
• Next Steps: 100% of public buildings powered by renewables by 2025, replace 85% of streetlamps to LED
What is IL and Chicago Doing?
2009
• 20% premium
2018
• 0-4% premium
Source: Figure 3. ZE Studies in the US. Zero Energy Buildings in MA. 2019 Report.
What can we as designers do? How much more does it cost to go deep green?
Deep Green Incentives
Permitting• Expedited reviews for Deep Green projects (SF, Seattle)
• LBC, PH, NZE projects automatically meet code (Marin County, MA)
Zoning• Thick wall exclusion (Vancouver, NYC)
• Setback allowance for thicker walls (Vancouver, Seattle)
• Rezoning exception (Vancouver)
Funding• Training (NYC 70% of cost, MA 50% of cost, Vancouver free for
government employees)
• PHIUS+ 2018 certification (MA, $3,250 per unit)
• IL Clean Energy Grant ($1,000,000 or 60% of the project costs, whichever is less)
• Energy modeling ($5,000 feasibility, $20,000 modeling MA)
• ComEd New Construction Incentives
Deep Green Incentives
Questions? See Ben Heymer of Slipsteam. [email protected]
ComEd New Construction
Deep Green IncentivesNew York
Immediate Task
• 2025
• 185 trillion Btu’s (1/3 of 2030 GHG emissions goal) via energy efficient methods
• Site energy reduction first (7.2% source to site loss)
Long Term GHG Emissions Goals
• 2030
• 40% reduction (40 by 30)
• 2050
• 80% reduction (80 by 50)
NY State—Carbon Reduction Plan (Green New Deal)
Renewables
• 2030
• 50 to 70% renewable energy
• 2040
• 100% renewable energy
NY State—Carbon Reduction Plan (Green New Deal)
1. Analyze current consumption.
Source: NYSERDA Analysis Based on the Energy Efficiency and Renewable Energy Potential Study of NY State.
NY State—Process
Source: Patterns and Trends: New York State Energy Profiles, 2001-2015.
1. Analyze current consumption.
NY State—Process
Source: NYSERDA Analysis Based on the Energy Efficiency and Renewable Energy Potential Study of NY State.
1. Analyze current consumption.
NY State—Process
2. Realize areas of greatest savings.
• Single-family
• Cooling, water heating, space heating, and then lighting
• Multi-family
• Equally cooling and water heating, followed by space heating
• Office
• Lighting, cooling, and a modest level of water heating
NY State—Process
3. Understand current barriers.
In the commercial sector, the most frequently cited
barriers relate to:
• Aesthetics and comfort as much higher priorities than energy savings
• Lack of awareness and confidence in the energy efficiency solutions
• Lack of capital/financing to cover up-front costs, even if energy
efficiency investments are attractive
• Lack of credibility of technology or solutions, unless in-house staff
or trusted engineering advisors are on board
• Poor availability of data and technical skills to identify energy efficiency
projects that could appeal to business-minded decision-makers
NY State—Process
4. Highlight key opportunities per sector
Source: Table 1. Key Market Opportunities by Sector. NYSERDA. New Efficiency: New York. April 2018.
NY State—Process
Strategy to reduce
by 185 Trillion Btus
by 2025
Source: Figure 4. NY State Energy Efficiency Activities – Total Tbtu Savings by 2050. NYSERDA. New Efficiency: New York. April 2018.
NY State—Plan
1. Reduce cooling load
Ground Source Heat Pumps• Increasing incentives by 25% equating to $1,500/ton in
natural gas constrained areas. Customers can receive up to $5 million per project.
• Free Screening tool and report to assess the potential electrification of buildings 25,000 square feet and larger in natural gas constrained areas.
Air Source Heat Pumps• Free Screening tool and report to assess the potential
electrification of buildings 25,000 square feet and largerin natural gas constrained areas.
NY State—Commercial Incentives
NY State—Deep Green Incentives
NY State—Deep Green Incentives
NY State—Deep Green Incentives
Free Training
Energy Code and Renewable Energy
• $36.5 million in training (19,500 ppl) for clean energy jobs
• https://www.nyserda.ny.gov/Business-and-Industry/Training-Opportunities
NY State—Deep Green Incentives
NY State—Project Portfolio
NYStretch Energy Code
Future
• Code moves to a carbon metric. Carbon tax?
NY State—Stretch Code
Renewable Energy IncentivesIllinois
The Solutions Project
Renewable Energy Analysis
Renewable Energy
Incentives
Solar Renewable
Energy Credits
Corporate Depreciation
Corporate Tax Credit
Grant Program
Green Building Initiative
Loan Program
RebateProgram
Property Tax
Incentive
Sales tax incentives
Bond Program
Renewable Energy Incentives
Program Name
Eligible
Renewable
Technology
Incentive Amount Max. IncentiveEligible
System Size
Equipment
Requirement
City Water Light
and Power –
Commercial
Energy
Efficiency
Rebate Program
Geothermal
heat pumps
Existing building:
$300/ton
New construction:
$800/ton
New and 1st time
installation only
Existing buildings:
$300/ton
New buildings:
$800/ton
None
specified
All-electric, installed
as the primary
source of heat
Sales Tax
Exemption for
Wind Energy
Wind
100% exemption
of retailers,
occupation tax
for building
materials
incorporated into
the facility
None
specified
None
specified
Wind facility must
have a nameplate
capacity ≥ 0.5 MW.
Building materials
must be physically
incorporated into
the building in
order to qualify
for exemption
Renewable Energy Incentives
Program Name
Eligible
Renewable
Technology
Incentive Amount Max. IncentiveEligible
System Size
Equipment
Requirement
City of Chicago –
Green Building
Permit Programs
Solar - Passive,
Solar Water Heat,
Solar Space Heat,
Solar PV, Wind,
Biomass,
Geothermal Heat
Pumps,
Daylighting,
Hydroelectric
(Small) Rainwater
Harvesting
Systems
50% of Building
Permit Fee amount
up to $25,000.
Varies by project type
and sector.
None
specified
None
specified
None
specified
Wabash Valley
Power –
Commercial &
Industrial Energy
Efficiency
Program
Geothermal heat
pumps
11 - 20 tons:
$500/ton
5.4 - 10.9 tons:
$600/ton
< 5.4 tons: $750/ton
Prescriptive
project: $25,000
Custom project:
$50,000 or 50%
of the project’s
cost
Prescriptive: < 20
tons
Custom: > 20 tons
(Payback must be
1-7 years)
COP > 3.5;
EER > 16.5
AHRI certified
Renewable Energy Incentives
Program
Name
Eligible Renewable
Technology
Incentive
AmountMax. Incentive
Eligible
System Size
Equipment
Requirement
Business
Energy
Investment
Tax Credit
(ITC)
Solar Water Heat, Solar
Space Heat, Geothermal
Electric, Solar Thermal
Electric, Solar PV, Wind,
Biomass, Hydroelectric,
Hydrogen, Geothermal
Heat Pumps, Combined
Heat & Power, Tidal,
Wave, Ocean Thermal,
Hydroelectric (Small),
Geothermal Direct-Use,
Anaerobic Digestion, Fuel
Cells using Renewable
Fuels
30% for solar,
fuel cells, wind
10% for
geothermal
Fuel cells:
$1,500/0.5 kW
Small wind turbines
placed in service
10/4/08 - 12/31/08:
$4,000
Small wind turbines
placed in service
after 12/31/08:
no limit
All other eligible
technologies:
no limit
Small wind
turbines:
≤ 100 kW
Fuel cells:
≥ 0.5 kW
Fuel cells systems: Meet
energy-efficiency criteria
Small wind turbines:
Meet performance and
quality standards set forth
by either the American
Wind Energy Association
Small Wind Turbine
Performance and Safety
Standard 9.1-2009, or the
International
Electrotechnical
Commission 61400-1,
61400-11, and 61400-12
Solar
Renewable
Energy
Credits
Solar PV
Negotiated
with
procurement
administrators
Benchmarks set
by procurement
administrators
None specifiedNone
specified
Renewable Energy Incentives
Closing
1. Project teams can be rewarded for exceeding code requirements by applying for available incentives.
2. Energy efficient buildings are a first, followed by renewable energy to meet greenhouse gas reduction goals.
3. Reach out to ComEd for any incentives you’d like to see that are not currently available.
Conclusion
Marie Curatolo
Tim Zelazny
Hardik Miyani
Questions?
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