A Guide to Energy Audits

TL;DR: Energy audits are a powerful tool for uncovering operational and equipment improvements that will save energy, reduce energy costs, and lead to higher performance as discussed by the authors, which can be done as a stand-alone effort or as part of a larger analysis across a group of facilities or across an owner's portfolio.

Abstract: Energy audits are a powerful tool for uncovering operational and equipment improvements that will save energy, reduce energy costs, and lead to higher performance. Energy audits can be done as a stand-alone effort or as part of a larger analysis across a group of facilities, or across an owner's portfolio. The purpose of an energy audit (sometimes called an 'energy assessment' or 'energy study') is to determine where, when, why and how energy is used in a facility, and to identify opportunities to improve efficiency. Energy auditing services are offered by energy services companies (ESCOs), energy consultants and engineering firms. The energy auditor leads the audit process but works closely with building owners, staff and other key participants throughout to ensure accuracy of data collection and appropriateness of energy efficiency recommendation. The audit typically begins with a review of historical and current utility data and benchmarking of your building's energy use against similar buildings. This sets the stage for an onsite inspection of the physical building. The main outcome of an energy audit is a list of recommended energy efficiency measures (EEMs), their associated energy savings potential, and an assessment of whether EEM installation costs are a good financial investment.

Summary

Introduction

• These instructions prescribe the mandatory proposal format.
• Instructions must be adhered to, all questions must be answered, and all requested data must be supplied.
• Proposals that fail to meet these requirements and do not answer all questions will be eliminated from the evaluation process.

1. Cover Letter

• The cover letter must be signed by a person having the authority to commit the bidder to a contract and include: A summary of the bidder’s ability to perform the services described in the Work Statement, Section III.
• A statement that the bidder is willing to perform those services and enter into a contract with the <company>.

3. Summary

• Summarize your company’s overall approach to the Work Statement, highlighting any outstanding features, qualifications and experience relevant to performing the technical work, including the project management.
• Discuss your current job commitments and how your company can complete the work discussed in this RFP according to the schedule in Section III.
• Provide a short description of each staff member who will be doing work on this contract.
• Highlight any specialized energy expertise that is applicable to the tasks outlined in the Work Statement.

4. Contractor Experience

• Describe your company’s experience in preparing energy audits for <company> governments.
• Include your project implementation experience in engineering and design, project and construction management and commissioning.
• Give examples of work performed within the past 36 months that is similar to that indicated in the Work Statement (Section III).
• Explain its relevance to the Work Statement and the proposed contract.
• Provide a minimum of three references for whom you have provided services similar to that requested in this RFP.

5. Company Organization

• Describe reliability, continuity, professional awards, location of your company and subcontractors, if any.
• Include type of company, composition, functions to be performed by members of your company and subcontractors and how they pertain to this contract.
• Describe any electronic reporting, Internet capabilities or other tools that would facilitate communicating information to the <company>.
• Provide an organizational chart for your company.
• Briefly explain the relationship of each technical staff member and subcontractors, if any, to your company.

6. Personnel Qualifications

• Complete Form 2A by listing all individuals in your company who will provide technical services through this contract.
• A proposal that shows a balance of staff time between both senior and more junior levels will rank higher than one that does not.
• Describe the relevant experience each technical staff member had in performing pertinent tasks identified in the Work Statement.
• Provide a current resume or biographical sketch for all personnel who will be assigned to this contract.

7. Approach

• Based on the facility description in Section II, discuss the information to be collected and the process to be followed to complete the Work Statement.
• Explain the general type of recommendations you believe are appropriate for the facilities listed in Section II.
• Describe data collection equipment (i.e. flue gas analyzer, amp/watt meter, light meter, anemometer, etc.) to be used to accomplish the tasks listed in the Work Statement.
• Indicate the building simulation program to be used to accomplish the tasks in the Work Statement.

8. Conflicts of Interest

• Indicate any relationships with equipment manufacturers or vendors, Energy Services Companies or equipment maintenance firms.
• The <company> reserves the right to reject any or all proposals that present a true or apparent conflict of interest.

9. Sample Audits

• Attach one relevant example of prior work.
• This example should be similar in scope to the work requested in this RFP.

10. Required Documents

• Point calculations reflect the averages of the combined scores of all evaluators.
• The committee may reject all bidders and proposals if none are considered in the best interest of the <company>.
• The technical proposal must attain the minimum score of _______ to pass.
• The proposal satisfies the requirements and describes generally how and/or what will be accomplished.

Weighting factors and Criteria

• This Energy Audit Agreement (“Agreement”), effective the last date signed below, is by and between the [agency], an agency of the State of Florida with an office at [address] (the “Agency”) and [company] with an office at [address] (the “Company”) (each a “Party” and collectively the “Parties”).
• The Report shall contain detailed projections of energy and cost savings to be obtained at the Facility(s) as a result of the installation of the recommended ECMs.
• The Report shall clearly describe how utility tariffs were used to calculate savings for all ECMs.
• The primary purpose of the Report is to provide an engineering and economic basis for negotiating an Energy Performance Contract between the Agency and the Company; however, the Agency shall be under no obligation to negotiate such a contract.
• The Company shall perform the following tasks in performing the Energy Audit and preparing the Report:.

A. Collect General Facility(s) Information

• The Company shall collect general Facility(s) information such as: size, age, construction type, condition and general use of the Facility(s).
• The Company shall also collect and summarize Facility(s) utility cost and consumption data for the most recent 24-36 month period.
• Company shall evaluate the impact on utility cost and consumption of any energy initiatives currently being installed or currently planned to be installed by the Agency in the Facility(s) which will remain separate from the Energy Performance Contract throughout the duration of that agreement.
• The Agency shall also make available a record of any energy related improvements or modifications that have been installed during the past three years, or are currently being installed or are currently planned to be installed by the Agency in the Facility(s) separate from the energy service agreement throughout the duration of that agreement.
• The Agency shall also make available copies of drawings, equipment logs and maintenance work orders to the Company.

B. Analyze Existing Systems and Equipment

• Company shall compile an analysis based on a physical inspection of the major electrical and mechanical systems at the Facility(s), including: 1. Cooling systems and related equipment 2. Heating and heat distribution systems 3. Automatic temperature control systems and equipment 4.
• Air distribution systems and equipment 5. Outdoor ventilation systems and equipment 6. Kitchen and associated dining room equipment, if applicable 7.
• Hot water systems 9. Electric motors 5 HP and above, transmission and drive systems 10.
• Water consumption end uses, such as restroom fixtures, water fountains, irrigation, etc. 13.
• Other major energy using systems, if applicable.

C. Establish Base Year Consumption and Reconcile with End Use Consumption Estimates

• Company shall examine the most recent 24-36 months of utility bills and establish Base Year consumption for electricity, fossil fuels and water by averaging; or selecting the most representative contiguous 12 months.
• Company shall consult with Facility(s) staff and account for any unusual or anomalous utility bills which may skew Base Year consumption from a reasonable representation.
• Usage and/or hours of operation for all major end uses representing more than 5% of total Facility(s) consumption including, but not limited to: 1. Lighting 2. Heating 3. Cooling 4. HVAC motors (fans and pumps) 5. plug load (independent devices greater than 5%) 6. kitchen equipment 7. other equipment 8. miscellaneous.
• Where loading and/or usage are highly uncertain Company shall employ spot measurement and/or short term monitoring at its discretion, or at the request of the Agency.
• Reasonable applications of measurement typically include variable loads that are likely candidates for conservation measures, such as cooling equipment.

D. Develop List of Potential Energy Conservation Measures (ECMs)

• Manual calculations should disclose essential data, assumptions, formulas, etc. so that a reviewer could replicate the calculations based on the data provided; 5. for savings estimates using computer simulations, Company shall provide access to the program and all inputs and assumptions used, if requested by the Agency.
• Provide a preliminary savings measurement and verification plan for each of proposed ECMs 7. provide a preliminary commissioning plan for the proposed ECMs 8.
• Provide detailed calculations for any rate savings proposals 9. provide detailed supporting calculations for any proposed maintenance or other operational savings; 10. estimate any environmental costs or benefits of the proposed ECMs (e.g., disposal costs, avoided emissions, water conservation, etc.).
• For all proposed ECMs, Company shall comply with all applicable state, federal and local codes and regulations in effect at the time of this analysis.

G. Savings Estimates

• The Agency has endeavored to provide the Company with sufficient general and specific guidance in this Article 1 to develop the savings estimates for the Report.
• In the event that questions arise as to the calculation of savings or whether certain items will be allowed as savings, the Company shall seek written guidance from the Agency.
• The following items will be allowed as savings or in the development of savings:1 - Agency material/commodity cost - Outside maintenance labor cost (if applicable) - Agreed escalation rates for natural gas - Agreed escalation rates for electricity - Agreed escalation rates for water - Agreed escalation rates for material/commodity cost savings - Agreed escalation rates for allowable labor savings.
• Unless otherwise agreed in writing, escalation rates shall tie to the Consumer Price Index.
• The value of fuel and water unit savings shall be escalated using actual rate increases as they occur over the term of the contract.

H. Report Format

• An executive summary which describes the Facility(s), measures evaluated, analysis methodology, results and a sum- mary table presenting the cost and savings estimates for each measure.
• A summary of all utility bills, Base Year consumption and how it was established, and end use reconciliation with respect to the Base Year including a discussion of any unusual characteristics and findings.
• Detailed descriptions for each ECM including analysis method, supporting calculations (may be submitted in appendices), results, proposed equipment and implementation issues.
• Conclusions, observations and caveats regarding cost and savings estimates.
• The Report shall be completed within ninety (90) days of the effective date of this Agreement, unless otherwise stated in Attachment A. The Agency shall conduct and complete a technical review within sixty (60) days of its receipt of the Report, unless otherwise stated in Attachment A.

I. Acceptance of the Report– If Energy Conservation Measures are Feasible.

• The Agency shall accept the Report if the recommended ECMs are feasible and projected energy cost savings are equal to or greater than the total projected costs of the design and installation of the recommended ECMs.
• If the Agency determines that one or more of the recommended ECMs is not feasible, the Agency shall give the Company written notice of any and all said objections, in detail, within fourteen (14) days after completing its technical review of the Report.
• The Agency shall have fourteen (14) days from receipt of the revised Report to notify the Company if any objections have not been corrected.
• The terms and provisions of such an Energy Performance Contract shall be set forth in a separate agreement.
• The Company understands and agrees that payment to it is contingent upon realization of energy cost savings being equal to or greater than the total cost of the design and installation of the Company’s recommended ECMs.

A. By Company:

• Termination under this section shall be effective upon Agency’s receipt of written notification from the Company stating the reason for the termination and all supporting documents.
• Company shall provide the Facility(s) with any preliminary notes, reports or analysis which have been produced or prepared prior to the effective date of the termination.

B. By Agency:

• Agency may terminate this Agreement: (i) If the Company fails to complete the Energy Audit and deliver the Report to the Agency within the time established in Article 1, above; or fails to obtain a written extension of that time from the Agency.
• Termination under this subsection B (i) shall be effective upon Company’s receipt of written notification from the Agency that the deadline for submission of the Report has past.
• Company shall provide the Facility(s) with any preliminary notes, reports or analysis which have been produced or prepared prior to the effective date of the termination.
• Termination under this subsection B (ii) shall be effective upon Company’s receipt of written notification from the Agency.
• Company shall provide the Facility(s) with any preliminary notes, reports or analysis which have been produced or prepared prior to the effective date of the termination.

C. By Either Party:

• Either Party may terminate this Agreement, when the Party deems it to be in its best interest to do so, by providing the other Party thirty (30) days written notice of its intent to do so.
• In the event that any demand or claim is made or suit is commenced against the Agency, the Agency shall give prompt written notice thereof to Company and Company shall have the right to compromise or defend the same to the extent of its own interest.
• This Agreement establishes successive steps of conflict prevention and alternative dispute resolution prior to litigation, completion of which shall be conditions precedent to the right to commence litigation over any dispute arising out of or relating to the Agreement.
• The Agency may cancel the Agreement if the Company refuses to allow public access to all records made or received by the Company in conjunction with the Agreement, unless the records are exempt from section 24(a) of Article I of the State Constitution and section 119.07(1) of the Florida Statutes.

Full text

BUILDING TECHNOLOGIES PROGRAM
A Guide to Energy Audits
September 25, 2011 • PNNL-20956

BUILDING TECHNOLOGIES PROGRAM
A Guide to
Energy Audits
Prepared by
Pacific Northwest National Laboratory
Michael Baechler
Portland Energy Conservation, Inc.
Cindy Strecker, PE and Jennifer Shafer
September 25, 2011
Prepared for
U.S. Department of Energy
under Contract DE-AC05-76RL01830
PNNL-20956
Pacific Northwest National Laboratory
Richland, Washington 99352
This report was prepared as an account of work sponsored by an agency of the
United States Government. Neither the United States Government nor any agency
thereof, nor Battelle Memorial Institute, nor any of their employees, makes any warranty,
express or implied, or assumes any legal liability or responsibility for the accuracy, com-
pleteness, or usefulness of any information, apparatus, product, or process disclosed,
or represents that its use would not infringe privately owned rights. Reference herein to
any specific commercial product, process, or service by trade name, trademark, manu-
facturer, or otherwise does not necessarily constitute or imply its endorsement, rec-
ommendation, or favoring by the United States Government or any agency thereof, or
Battelle Memorial Institute. The views and opinions of authors expressed herein do not
necessarily state or reflect those of the United States
Government or any agency thereof.

i
Contents
A Guide to Energy Audits ................................................................................... 1
What Is an Energy Audit? ...................................................................................2
Types of Energy Audits ........................................................................................ 2
Levels of Energy Audits ....................................................................................... 2
Portfolio Analysis ................................................................................................ 3
Funding an Energy Audit ....................................................................................3
The Energy Audit Process ....................................................................................4
Preliminary review of utility data ....................................................................... 5
The Site Assessment ............................................................................................. 5
Data Analysis ...................................................................................................... 6
Audit Report ........................................................................................................ 7
Hiring an Energy Auditor .................................................................................... 9
Identifying Potential Auditors.............................................................................. 9
Requests for Qualications and Requests for Proposals ....................................... 9
Contracting an Auditor ..................................................................................... 10
Appendix A ..................................................................................................... A.1
A Guide to Energy Audits: .............................................................................. A.1
Request for Qualications ............................................................................... A.1
Appendix B .......................................................................................................B.1
A Guide to Energy Audits: ...............................................................................B.1
Request for Qualications .................................................................................B.1
Energy Audit to Identify Energy Efciency Projects ........................................B.1
Appendix C ...................................................................................................... C.1
A Guide to Energy Audits: .............................................................................. C.1
Energy Audit Agreement ................................................................................ C.1