| Frequently Asked Questions About SB1149 |
|
|
|
 |
| SB 1149 and Eligibility |
|
What does Senate Bill 1149 (SB 1149) mean to my school/district?
Senate Bill 1149 introduces competition into the retail electricity market of Oregon's two largest utilities, Portland General Electric (PGE) and Pacific Power (PacifiCorp). In this competitive market, these utilities have no incentive to promote energy conservation. SB 1149 provides that the utilities must pay 3 percent of their revenues as a public purpose charge to continue conservation programs. From this amount, 10 percent is dedicated to improving energy efficiency in public schools serviced by PGE and PacifiCorp. For schools in the service areas of these companies, it means that PGE and/or PacifiCorp will be providing public purpose funds to their Educational Service Districts (ESDs). This money is to be used to fund cost-effective energy conservation in the schools. The ESDs will begin to receive funds in March of 2002.
What is the money for?
Under the legislation in SB 1149, the public purpose charge is to fund cost-effective energy efficiency measures, weatherization, energy education programs, green power purchases and renewable energy resource investments. In the first phase, schools can use the funds to perform energy audits and implement Energy Efficiency Measures (EEMs) with a payback of ten (10) years or less. In later phases, schools will be allowed to fund projects in other facilities owned by the schools, EEMs with longer paybacks, education and conservation programs, renewable energy, and energy education programs.
Why does the SB 1149 funding go to the ESD?
The SB 1149 funding goes to the ESD to simplify the utility payments and to provide for consistency across the school districts.
How does my school know if it is eligible for SB 1149 funds?
The basic rule for eligibility is that your school receives electricity from PGE or PacifiCorp. The funds are allocated by the number of students, (as determined by the average daily membership (ADM) provided by the Oregon Department of Education) that are attending each school. To ensure that your Educational Service District receives funds for your school, you need to provide a copy of a recent utility bill to the Oregon Department of Energy by the first of October of each year. Your ESD should be able to tell you if your school has been identified as eligible.
Why isn't my school eligible for SB 1149 funds?
Only schools served by PGE and/or PacifiCorp are eligible for SB 1149 funds. Further, only facilities that actually receive service from these utilities can use the funds. As part of the Senate Bill 1149 legislation, other utilities within the State of Oregon are allowed, but not required, to participate in deregulation. At this time, we are not aware of any other utilities that have chosen to participate in deregulation. Accordingly, they are not subject to the public purpose charges and funds are not sent to the ESDs in their service areas.
My school is not in the SB1149 service area. Where can my school find funds for audits or projetcs?
Your utility may have incentive and rebate funds available. Check with your local utility. Also, the Oregon Department of Energy has the Energy Loan Program to provide loans for the same type of work.
How does my school know that it is actually going to save energy/money?
By using pre-qualified auditors, you are going to get high quality, professional audits provided by people with excellent qualifications, education and experience in the energy field. Further, the Oregon Department of Energy will provide review of many of the audits to ensure the audits are maintained at a high level of quality. If a school/district/ESD has any doubts about the quality of work they're receiving, arrangements can be made for the Oregon Department of Energy to review the work to identify areas of concern and help resolve them with the auditors. Random checks of a contractor's work will maintain an appropriate level of quality, along with verification and commissioning programs. On larger projects, commissioning will ensure that the system is installed and operating properly. Also, updating the school's Energy Use Index (EUI) in the database on a regular basis provides a check of the actual energy use over time, so problem areas can be identified and addressed. Of course, it's ultimately up to the districts to oversee the work done on their facilities and ensure that a good product is delivered.
|
|
|
| How The Money Can Be Used? |
|
How much money will my district/school get from the public purpose funds?
The amount of money will vary month-to-month as it is based on the utility's revenues. The money is sent to the ESDs based on ADM. The expectation is that the ESDs will allocate the money to individual school districts based on ADM as well. The school districts may allocate the funds among individual schools as necessary. However, schools must implement all cost-effective measures before implementing renewables or energy education.
What is simple payback?
Simple payback is a common term used to determine if expenditures for energy conservation measures are justified and to prioritize them. Simple payback is the ratio of the cost of identifying and implementing a project to the annual savings resulting from the project. Or, put another way, it is the amount of time it takes for the savings from a project to pay for installing the project.
Cost of Implementation
Payback = ____________________
Annual Savings
Why does my school have to complete the Measures with a simple payback of less than 10 years first?
The bill requires that the money be used for cost-effective energy conservation. For schools, the policy and technical committees determined that a ten-year payback would be the measure of cost effective.
Can my school combine projects to calculate an aggregate simple payback?
Yes. This is a good strategy. Combining short payback projects with projects having a payback over ten years to achieve a ten-year payback increases the opportunities to do some of the major work at schools.
How does my school get reimbursed for audits and measures?
For both audits and implementation bills, the information must be entered in the database indicating completion of that phase of work, including the actual costs of the work. Then print out the information from the database, attach it to the invoice from the auditor or contractor, with the school district's invoice and forward the package to your ESD for payment.
How does my school pay for the audits if it doesn't get paid from the ESD until after the audit?
If the funds are not available from your local budgets, contact your ESD to see if there are ways to help. Audits completed after July 1, 2001 by a firm on the Oregon Department of Energy list of Qualified Auditors may be reimbursed after March 1, 2002.
What if my school doesn't get enough money from SB 1149 to pay for audits/projects?
If the money your district is getting won't cover all of the work identified, some of the alternate forms of financing can be considered. Or, you might want to consider doing the projects with the best paybacks. Or, identify the systems that are most in need of repair/replacement/upgrade that will meet the ten-year payback. The Oregon Department of Energy can help prioritize the work to help get the most benefit from the funds.
Does my school have to save up money to pay for the audits and implementation?
Working with the districts and ESDs, we can estimate the amount of money an ESD will receive during the life of the program. Based on this, the Oregon Department of Energy Loan Program can provide low interest loans to do the work sooner with payments made from the SB 1149 funds. There is more information about these options on the Oregon Department of Energy Web site.
Can my school get a utility rebate on my projects?
Yes. If the utility is providing an incentive, the funds can be combined.
What about the Business Energy Tax Credit? Can schools use this to help finance projects?
Yes. The Business Energy Tax Credit (BETC) is a tax credit for 35 percent of the cost of an approved project. It is taken over a five-year period, 10 percent for the first and second year and 5 percent for the remaining three years or one year if eligible project costs are $20,000 or less. Under recent legislation, non-taxable government entities can pass this tax credit through to an Oregon company with a tax liability (a pass-through partner) for the net present value of the credit. This is set by the Oregon Department of Energy and changes on an annual basis. A preliminary application and fee must be submitted to the Oregon Department of Energy prior to starting a project. This can help stretch your SB 1149 public purpose funds.
How do I get a pass-through partner?
At present, it is the responsibility of the school district to find a partner. If your community has a large industrial or commercial company, they might be willing to act as a partner. In the past, utilities have partnered on these projects. If you are working with an Energy Services Company, they might act as the partner, or agree to find an appropriate partner. You might talk with the local Chamber of Commerce to help identify a potential partner. The partner could be multiple partners who divide the credit appropriately.
Can my school use the utility incentive or Bus. Energy Tax Credit in its simple payback calculation?
No. The utility incentive or Business Energy Tax Credit cannot "buy down" the payback by applying those funds to the cost of implementation before calculating the payback. Also note, a school district cannot "buy down" the cost of a project using their own funds (e.g., bond money). The payback of an energy efficiency measure
(or package of measures) should be calculated on the measure's full-cost, before any incentives or BETCs are applied.
Can my school charge in-house time to the SB 1149 funds? (Energy mgr, AP clerk, audit support, etc.)
Yes. However, only time spent working on the SB 1149 program are eligible for reimbursement. You should use whatever invoicing procedures you currently use with your ESD.
Can my school use SB 1149 public purpose funds to pay its utility bills?
No. The funds can only be used for identifying and implementing projects that will reduce your energy consumption and continue to save energy for the life of the equipment.
Can my school do an audit/implementation at the administration bldg ? (bus garage, warehouse, etc.)
In the first phase of this program, only educational facilities are eligible. Educational facilities are sites whose primary function is instruction, such as classroom instruction, multipurpose activities and libraries serving kindergarten through grade 12. After all eligible schools in the district have been audited and all projects with a payback of ten years or less have been completed, non-educational facilities can be audited and energy projects can be implemented.
Can my school district use SB 1149 funds for its new school?
No. The funds are intended to reduce energy use at existing facilities. However, the Oregon Department of Energy does have information to help design and build new High Performance School Buildings. Check out our Web site for more information on this program.
Will SB 1149 pay for a resource conservation manager (RCM) or an energy education program?
Not at this time. After all eligible facilities have been audited and all acceptable projects have been implemented throughout the entire ESD, the funds could be used to fund a conservation program or energy education program.
Can my school use SB 1149 funds for batteries for its science unit on electricity?
Not at this time. Batteries for a science unit on electricity would be considered part of an energy education program.
Can my school use SB 1149 funds for training?
Not in the first phase of implementation. After you have completed audits (or received a waiver) for all of your schools and implemented all appropriate projects, you can use these funds for training personnel.
Can my school use SB 1149 funds for replacement windows?
If your school can document that the installation will pay for itself within ten years, replacement windows can be replaced under the first phase. Otherwise, replacement windows will have to wait until all projects with a ten-year payback have been completed.
Can my school do a solar project with SB 1149?
At this time, your school could do a solar project, but it would have to provide a clear analysis showing that the solar project will pay for itself in ten years or less. The ten-year limitation will be lifted after all schools have been audited and all appropriate EEMs have been implemented throughout the ESD.
My school wants to do low cost/no cost measures. Do they qualify?
Yes. Low cost/no cost measures should be included in the audit. They can be implemented immediately, or if verifiable costs are associated, they can be included with bigger projects.
Does every school in the ESD have to be audited before my school can do its projects?
No. All schools within your individual district (not the entire ESD) must be audited and/or receive a waiver before you can implement your school's EEMs. All schools within the ESD must be audited and/or receive a waiver before your school can implement such projects as energy education and purchasing renewable energy.
How does my school get an energy loan?
After completing the audit, download and fill out the Energy Loan application from our Web site (/LOANS/index.shtml), get appropriate approval and documentation for the loan, and submit the application to the Oregon Department of Energy.
Can my school use SB 1149 funds to pay off an existing energy loan?
No.
Can my school use funds to pay off a new loan?
If the loan is used to pay for energy saving projects implemented after March 1, 2002 and based on an accepted energy audit, the funds could be used to pay for a new loan.
Can my school get a grant from the Oregon Department of Energy for projects?
At this time, the Oregon Department of Energy has no grants available for these projects. However, if grant funds were to become available, they could be used in combination with SB 1149 funds, assuming there were no restrictions on the new grants.
|
|
|
| Audits |
|
What is an energy audit?
An energy audit is a process of gathering information about the construction and operation of a school to determine how it uses energy and identify opportunities that would lower the energy use. In general, an auditor will study construction drawings and specifications, visit the school and record information about the installed equipment and talk with people about how the school is run. Using this information, the auditor will use standard math modeling techniques to identify how energy is used. He or she will identify what equipment can be replaced or modified and what operational changes can reduce the energy use.
Why does my school have to do an energy audit?
SB 1149 requires energy audits for the identification of Energy Efficiency Measures (EEMs). The energy audit identifies the cost effective energy conservation measures that meet the ten-year payback so that the public purpose funds can be used to implement those measures.
What does my school need to know before it gets an energy audit?
Before your school gets an energy audit, you need to know what type of audit you want. The best way to determine this is to look at Energy Use Index (EUI) for the school. Based on the EUI, determine the level of audit (Level 1, Level 2, Level 3 or waiver) you want. Next, there is some information your school needs to gather before it starts the audit. The Oregon Department of Energy Web site will have information about Preparing For The Audit.
What is the difference between the three types of audits?
All of the audits are intended to develop an understanding of how the facility uses energy, and, based on this, determine the best combination of changes to minimize the energy use.
Type 1. A type one audit identifies the different systems using energy, such as lights, heating, cooling, and hot water. Then uses standard industry practices to recommend upgrades to the systems. This type of audit will fit very well with any small school and/or schools with simple systems. For example, a lot of elementary schools and some middle schools.
Type 2. A type two audit identifies the same systems, but uses more sophisticated math modeling techniques to more accurately identify the use and savings of the different systems. This type of audit will be used very often. Most middle schools, large elementary schools and many of the high schools will be handled this way.
Type 3. A type three audit uses complex math models to determine how the different systems interact with each other, so as one system is changed, the energy use of another system is changed. Type three audits are generally only used on large complex facilities, such as high schools, special training schools and some middle schools, or, facilities that have a lot of potential energy savings. Due to the higher cost of this type of audit, review and approval of the audit by the Oregon Department of Energy is required PRIOR to beginning the audit.
Waiver. If your school has an energy use index that is already in the typical range for the type and location of the school, it can take a waiver.
|
Energy Use in
Western Oregon
(Btu/SF/Year)
|
Energy Use in
Eastern Oregon
(Btu/SF/Year)
|
| Elementary School |
42,000 |
50,000 |
| Middle School |
51,000 |
60,000 |
| High School |
64,000 |
72,000 |
How does my school get a waiver? Can my school do projects if it has a waiver?
When your school enters the information into the database, the Energy Use Index (EUI) is automatically calculated. If the EUI indicates that the school is using a typical amount of energy (low EUI), the database will ask if the school wants a waiver. If your school accepts the waiver, it cannot expend SB 1149 funds, unless it later removes the waiver and performs an audit.
How does my school get an energy audit?
The Oregon Department of Energy has identified a number of qualified auditors through a Request for Proposals (RFP) process. These auditors have all presented evidence of their ability to deliver high quality energy audits. The list is available to all schools. After reviewing the qualifications of the auditors, your school can directly contact any of the auditors it is interested in and negotiate an audit by signing a Work Assignment Contract. The ESD can provide the Work Assignment Contract form. You must send a copy of all signed Work Assignment Contracts to Jan Simmons at the Oregon Department of Energy, 625 Marion St. N.E. Salem, OR 97301-3737.
Why does my school have to go through Oregon Department of Energy if it wants a Level III audit?
The Level III audit is a complex, and generally, expensive process. Ultimately, the SB 1149 funds are intended to implement energy conservation measures in the schools. The review by the Oregon Department of Energy is intended to be sure that the Level III audit is necessary, to assist in defining a scope of work for the audit and to avoid paying more for audits than is really necessary.
Will the Oregon Department of Energy do my school's energy audit? How about my ESD?
The total amount of work coming under this program will be far more than the Oregon Department of Energy or most ESDs are capable of handling. The RFP was issued to identify those firms with the experience, knowledge and capability to perform the audits effectively and efficiently.
Can my school's utility do my school's audit?
If your utility (PGE or PacifiCorp) is willing to provide the audits, that works, too. The utilities have high standards in their selection of the auditors they use. Make sure that the auditors will be doing a complete audit of all energy using systems. We will be working closely with their auditors to ensure the programs work well together.
If a member of my staff is qualified, can my school get reimbursed for the audit he or she performs?
Yes. For a member of your staff to do the audit, your school would need to submit a resume and two sample audit reports that were completed by the staff member to the Oregon Department of Energy for review. The reimbursement from SB 1149 funds would be similar to the process for auditors, with a printout of the completed audit pages from the database and the documentation your ESD uses for reimbursing your district.
How does a contractor get on the auditor list?
The Oregon Department of Energy Web site has theRequest for Proposal (RFP) for auditors. A contractor who would like to be on the auditor list should complete the RFP and submit it to the Oregon Department of Energy in accordance with the RFP. We will be doing periodic reviews and adding firms to the list on a regular basis.
How does my school know how much it should be paying an auditor?
The list of approved auditors will be available on the Oregon Department of Energy Web site. It will include some basic information about the auditors and give some idea of what each auditor charges for his or her services. The actual cost for auditing an individual school or group of schools will be negotiated by your district.
How does my school put in a claim for reimbursement for the implementation?
For both audits and implementation bills, the information must be updated in the database indicating completion of that phase of work, including the actual costs of the work. Print out the information from the database, attach it to the paid invoice from the auditor or contractor, with the school district's invoice and forward the package to your ESD for payment.
|
|
|
| Old Audits |
|
My school has an old audit. How does my school know if the measures identified are still good?
Generally, if none of the Energy Efficiency Measures have been implemented, the audit is less than six years old and the EUI found at the time of the audit is within 10 percent of the current EUI, then the audit it still good. If so, submit the audit to the Oregon Department of Energy, attention Schools Program. We'll review the audit and enter the appropriate information into the database.
My school had an audit done some time ago. Does the Department of Energy have a copy of it?
If the audit was completed under the Institutional Conservation Program (ICP), the Oregon Department of Energy may have a copy of it available. If it was done by your school district, we probably don't. Keep in mind that even if we have an old audit, if it is over six years old, you will still need to complete a new audit.
My school had an audit completed by company x, in November. The company isn't on the qualified auditors list. Can my school get reimbursed for the audit?
No. For reimbursement under SB 1149, the audit must be completed by an approved auditor.
My school did an audit after July 2001. Is it eligible for reimbursement?
Yes, if the audit was done by PGE or PacifiCorp or by an auditor on the Qualified Auditor list.
My school completed a lighting project in November 2001. Can my school get reimbursed from SB1149?
No. Projects that are implemented before March 1, 2002 cannot be reimbursed using SB 1149 funds.
|
|
|
| Implementation |
|
How does my school get projects done that it has identified and wants to complete?
Before implementing any energy conservation measures, all eligible facilities within the school district must have either completed an energy audit or received a waiver from the energy audit. Further, all of the appropriate reporting must be complete and you must get authority from the Oregon Department of Energy or your Educational Service District. Then you use whatever project implementation program you have decided on which could be design/bid/construct (the usual method) or Performance Contracting (more about that below).
Who can help my school prioritize my audits / projects?
The Oregon Department of Energy will provide generic training on prioritizing your projects. If you need additional assistance, a school district or ESD could contract with the Oregon Department of Energy or a consultant to assist with all phases of prioritization
What is "commissioning"?
Commissioning is a systematic process of ensuring that building systems perform interactively according to the design intent and the owner's operational needs. This is achieved by involving the commissioning agent in all phases of design and construction. Careful testing and evaluation is completed during all phases, including final testing, training of the building operators and documentation for maintenance and operations.
Does my school have to commission the work? What if the project is a simple retrofit that exceeds $50,000?
The guidelines currently require commissioning on all projects that have an estimated construction cost over $50,000. Generally, as projects costs go up, so does the complexity of the system. Commissioning these more complex projects will ensure that the new systems operate as intended and that the school will achieve the anticipated savings, while at the same time ensuring proper operation and comfort of your students and staff.
How does my school find a commissioning agent?
The Oregon Department of Energy will issue a Request For Qualifications (RFQ) and identify firms that have the experience and qualifications to provide commissioning for your projects. The process will be very similar to the process of arranging for audits, with individual districts selecting from an approved list of commissioning agents and negotiating the actual contract with them.
|
|
|
| Energy Saving Perform.Contract |
|
What is an Energy Saving Performance Contract? What is an ESCO?
An Energy Savings Performance Contract (ESPC) is an agreement in which an Energy Services Company (ESCO) assumes the cost for identification, evaluation, design and installation of capital projects that will reduce energy costs and is paid based on the energy savings. For more information, visit the Department of Energy Web site on ESPC.
Can my school use SB 1149 funds with an Energy Savings Performance Contract (ESPC)?
Yes. Using the ESPC, the funds your school will receive over the ten-year life of the program can be used to pay for appropriate projects.
How does my school do an ESPC?
The Oregon Department of Energy's Web site has a description of the whole process and template documents to use in developing your own contract. Oregon Department of Energy staff can provide some preliminary assistance, or be contracted to help throughout the whole process.
Can my school hire one firm/company to do the whole thing (cradle to grave)?
Absolutely! There are a number of ways to do this, with an Energy Savings Performance Contract (ESPC) being one option. Our Web site includes information on using ESPCs and sample documents to help guide you through the process.
Can my school use local contractors to implement projects?
Yes. During construction, the expectation is that your school district will use your normal methods and practices for installation of projects. If your school uses an ESPC, you may need to negotiate with the Energy Service Company as to what contractors will do the construction.
|
|
|
| Reporting and Energy Use Index |
|
What is the Energy Use Index (EUI)?
The energy use index is used to provide a common basis of comparison for energy use at schools. It is the total amount of energy used at a school over a one-year period, divided by the square footage of the school.
How does my school report the EUI?
The SB 1149 database will automatically calculate the Energy Use Index (EUI) when you enter the appropriate information for your school. The Oregon Department of Energy Web site also has an EUI calculator with instructions available. When the information is entered into the database, the EUI is automatically calculated and reported.
Why does my school need to report my EUI?
The Energy Use Index is used to determine the appropriate level of audit that should be done at each school, or, if a school should apply for a waiver. It is also used as a means to update existing audits. It needs to be reported on an annual basis.
Why does my school need to report an EUI every year?
The EUI needs to be determined on an annual basis to track the energy use, adjust target ranges, allow adjustments to the waiver requirements and help to identify schools that are having unidentified problems.
What if my school doesn't report its EUI every year?
Not reporting the EUI on an annual basis will not change your school's eligibility for SB 1149 funds. However, since the database is used to track data used to reimburse districts for the cost of audits and implementation, not reporting could cause significant delays when your school submits a request for reimbursement.
|
|
|
| The Oregon Dep't of Energy |
|
What services does the Oregon Department of Energy provide?
As part of the program, the Oregon Department of Energy will be providing reports to school districts, ESDs, the Public Utility Commission (PUC) and the Legislature concerning the progress of the SB 1149 for the schools program. Additionally, we will develop and provide the list of auditors, the database, audit procedures and formats, training, quality control and upgrades to the waiver and EUI systems. As part of the implementation program, we will verify school eligibility, authorize waivers, validate and record old audits, review Level III audit requests and review requests to proceed to later SB 1149 programs. Additionally, on a reimbursable basis, the Oregon Department of Energy can perform additional audit reviews, provide assistance in planning and prioritization and any other services that the school districts and/or ESDs request.
How does my school get the Oregon Department of Energy to provide other services?
Contact the office and tell us what other services your school would like us to provide. We will develop a written agreement concerning exactly what services your school needs, how we will provide them and estimate the amount of time it will take us.
When will the Oregon Department of Energy do a seminar in our region?
The Oregon Department of Energy will make training available to all of the school districts/ESDs affected by SB 1149. We are developing training in a number of areas with the intent of providing the training most applicable to each group. Your ESD will notify you of training available to you. We will also post our training schedule on the Department of Energy Web site.
Why does my school have to work with the Oregon Department of Energy? Why can't my school just do the audits and implement the projects with the ESD?
In general, you will be performing the audits and implementation in cooperation with your ESD. Oregon Department of Energy will be maintaining the database and providing other services in an effort to ensure that the quality of work done by the auditors and contractors remains high and to provide required reports on progress to various governing organizations
Who can my school call with questions?
Call the Oregon Department of Energy 1-800-221-8035 (toll free in Oregon) or 503.378.4040.
|
|
| |
|
|
