ALBERT THUMANN, P.E.

, CEM
Association of Energy Engineers
Atlanta, GA
CLINT CHRISTENSON
Johnson Controls, Inc.
Editor's Note: EPACT-2005 was jst !eing "a#e fe#eral
law as this e#ition was !eing fi nali$e#. %oo& for #etails
of EPACT-2005 legislation in ftre e#itions.
'''''''''''''''''''''''''
This cha(ter (resents an historical (ers(ecti)e on &ey
co#es, stan#ar#s, an# reglations which ha)e i"(acte#
energy (olicy an# are still (laying a "ajor role in sha(ing
energy sage. The Energy Policy Act of *++2 is far
reaching an# its i"(le"entation is i"(acting electric
(ower #ereglation, !il#ing co#es an# new energy
effi cient (ro#cts. ,o"eti"es (olicy "a&ers #o not see
the far reaching i"(act of their legislation. The Energy
Policy Act for e-a"(le has create# an en)iron"ent
for retail co"(etition. Electric tilities will #rastically
change the way they o(erate in or#er to (ro)i#e (ower
an# lowest cost. This in trn will #rastically re#ce tility
s(onsore# incenti)e an# re!ate (rogra"s which ha)e
infl ence# energy conser)ation a#o(tion.
20.1 THE ENERG POLIC ACT O! 1""2
This co"(rehensi)e legislation is far reaching an#
i"(acts energy conser)ation, (ower generation, an#
alternati)e fel )ehicles as well as energy (ro#ction.
The fe#eral as well as (ri)ate sectors are i"(acte# !y
this co"(rehensi)e energy act. .ighlights are #escri!e#
!elow/
E#er$% E&&i 'ie#'% Pro(isio#s
0il#ings
1 2e3ires states to esta!lish "ini"" co""ercial
!il#ing energy co#es an# to consi#er "ini""
resi#ential co#es !ase# on crrent )olntary co#es.
4tilities
1 2e3ires states to consi#er new reglatory stan#ar#s
that wol#/ re3ire tilities to n#erta&e integrate#
resorce (lanning5 allow effi ciency (rogra"s to !e at
least as (rofi ta!le as new s((ly o(tions5 an# encorage
i"(ro)e"ents in s((ly syste" effi ciency.
E3i("ent ,tan#ar#s
1 Esta!lishes effi ciency stan#ar#s for/ co""ercial heating
an# air-con#itioning e3i("ent5 electric "otors5
an# la"(s.
1 Gi)es the (ri)ate sector an o((ortnity to esta!lish
)olntary effi ciency infor"ation6la!eling (rogra"s
for win#ows, offi ce e3i("ent an# l"inaires, or the
7e(t. of Energy will esta!lish sch (rogra"s.
2enewa!le Energy
1 Esta!lishes a (rogra" for (ro)i#ing fe#eral s((ort
on a co"(etiti)e !asis for renewa!le energy technologies.
E-(an#s (rogra" to (ro"ote e-(ort of these
renewa!le energy technologies to e"erging "ar&ets
in #e)elo(ing contries.
Alternati)e 8els
1 Gi)es 7e(t. of Energy athority to re3ire a (ri)ate
an# "nici(al alternati)e fel fl eet (rogra" starting in
*++9. Pro)i#es a fe#eral alternati)e fel fl eet (rogra"
with (hase#-in ac3isition sche#le5 also (ro)i#es
state fl eet (rogra" for large fl eets in large cities.
Electric :ehicles
1 Esta!lishes co"(rehensi)e (rogra" for the research
an# #e)elo("ent, infrastrctre (ro"otion, an#
)ehicle #e"onstration for electric "otor )ehicles.
Electricity
1 2e"o)es o!stacles to wholesale (ower co"(etition
in the P!lic 4tilities .ol#ing Co"(any Act !y allowing
!oth tilities an# non-tilities to for" e-e"(t
wholesale generators withot triggering the P4.CA
restrictions.
Glo!al Cli"ate Change
1 7irects the Energy Infor"ation A#"inistration to
esta!lish a !aseline in)entory of greenhose gas
e"issions an# esta!lishes a (rogra" for the )olntary
re(orting of those e"issions. 7irects the 7e(t.
of Energy to (re(are a re(ort analy$ing the strategies
C.APTE2 20
C;7E,, ,TA<7A27, = %EGI,%ATI;<
5>+
5?0 E<E2G@ AA<AGEAE<T .A<70;;B
for "itigating glo!al cli"ate change an# to #e)elo( a
least-cost energy strategy for re#cing the generation
of greenhose gases.
2esearch an# 7e)elo("ent
1 7irects the 7e(t. of Energy to n#erta&e research
an# #e)elo("ent on a wi#e range of energy technologies,
incl#ing/ energy effi ciency technologies,
natral gas en#-se (ro#cts, renewa!le energy
resorces, heating an# cooling (ro#cts, an# electric
)ehicles.
20.2 STATE CO)ES
The Energy Policy Act of *++2 calle# for states to
esta!lish "ini"" co""ercial !il#ing energy co#es
an# to consi#er the sa"e for resi#ential co#es. Prior to
this reglation, "any states ha# so"e le)el of energy
effi ciency incl#e# in !il#ing co#es CA,.2AE +0-90,
CA Title 2?, etc.D, !t "ost #i# not a##ress the a#)ances
in e3i("ent, "aterials or #esigns that wol#
i"(act energy sage. A *++* st#y !y the Alliance to
,a)e Energy fon# that "ost states e"(loye# co#es
that were )ery ot#ate#, which "ay ha)e initiate# that
(ortion of EPACT-*++2.
The #e)elo("ent of effi ciency stan#ar#s nor"ally
is n#erta&en !y a consorti" of intereste# (arties
in or#er to assre that the (erfor"ance le)el is econo"ically
attaina!le. The gro(s for !il#ing effi ciency
stan#ar#s are "a#e ( of !il#ing #esigners, e3i("ent
s((liers, constrction (rofessionals, effi ciency
e-(erts, an# others. There are se)eral tra#e gro(s an#
research instittions that ha)e #e)elo(e# stan#ar#s
as well as so"e states that #e)elo(e# their own. The
a((ro)e# stan#ar#s are "erely wor#s on (a(er ntil
a state or local agency a#o(ts these stan#ar#s into a
(articlar !il#ing co#e. ;nce this occrs, officials
Cstate or localD ha)e the athority to ins(ect an# assre
that the a((lica!le co#es are enforce# #ring #esign
an# constrction.
The "ain organi$ation res(onsi!le for #e)elo(ing
!il#ing syste"s an# e3i("ent stan#ar#s, at least
in the co""ercial sector is the A"erican ,ociety of
.eating, 2efrigeration, an# Air-con#itioning Engineers
C A,.2AED.
Aore than three 3arters of the states ha)e a#o(te#
A,.2AE ,tan#ar# +0-90 as a !asis for their
energy effi ciency stan#ar# for new !il#ing #esign.
The A,.2AE ,tan#ar# +0-90 is essentially E(rescri(ti)eF
in natre. 8or e-a"(le, the energy engineer sing
this stan#ar# wol# co"(te the a)erage con#cti)e
)ale for the !il#ing walls an# co"(are it against the
)ale in the stan#ar#. If the co"(te# )ale is a!o)e
the reco""en#ation, the a"ont of glass or !il#ing
constrction "aterials wol# nee# to !e change# to
"eet the stan#ar#.
Aost states ha)e initiate# E Ao#el Energy Co#esF
for effi ciency stan#ar#s in lighting an# .:AC. Pro!a!ly
one of the "ost co"(rehensi)e !il#ing effi ciency
stan#ar#s is California Title 2?. Title 2? esta!lishe#
lighting an# .:AC effi ciency stan#ar#s for new constrction,
alterations an# a##itions of co""ercial an#
non-co""ercial !il#ings.
A,.2AE ,tan#ar# +0-90 has !een (#ate# into two
new stan#ar#s/
A,.2AE +0.*-*+++ Energy Effi cient 7esign of <ew
0il#ings E-ce(t <ew %ow-2ise 2esi#ential
0il#ings
A,.2AE +0.2-*++> Energy Effi cient 7esign of <ew
%ow 2ise 2esi#ential 0il#ing
The (r(oses of A,.2AE ,tan#ar# +0.*-*+++ are/
CaD set "ini"" re3ire"ent for the energy effi cient
#esign of new !il#ings so that they "ay !e constrcte#,
o(erate#, an# "aintaine# in a "anner
that "ini"i$es the se of energy withot constraining
the !il#ing fnction nor the co"fort
or (ro#cti)ity of the occ(ants.
C!D (ro)i#e criteria for energy effi cient #esign an#
"etho#s for #eter"ining co"(liance with these
criteria.
CcD (ro)i#e son# gi#ance for energy effi cient #esign.
In a##ition to recogni$ing a#)ances in the (erfor"ance
of )arios co"(onents an# e3i("ent, the
,tan#ar# encorages inno)ati)e energy conser)ing
#esigns. This has !een acco"(lishe# !y allowing
the !il#ing #esigner to ta&e into consi#eration the
#yna"ics that e-ist !etween the "any co"(onents
of a !il#ing throgh se of the ,yste" Perfor"ance
Aetho# or the 0il#ing Energy Cost 0#get Aetho#
co"(liance (aths. The stan#ar#, which is cos(onsore#
!y the Ill"inating Engineering ,ociety of <orth
A"erica, incl#es an e-tensi)e section on lighting effi
ciency, tili$ing the 4nit Power Allowance Aetho#.
The stan#ar# also a##resses the #esign of the following
!il#ing syste"s/
C;7E,, ,TA<7A27, = %EGI,%ATI;< 5?*
1 Electrical (ower,
1 A-iliary syste"s incl#ing ele)ators an# retail
refrigeration,
1 0il#ing en)elo(e,
1 .:AC syste"s,
1 .:AC e3i("ent,
1 ,er)ice water heating an# e3i("ent, an#
1 Energy Aanage"ent.
A,.2AE has (lace# +0.* an# +0.2 n#er continos
"aintenance (roce#res !y a ,tan#ing ,tan#ar#
Project Co""ittee, which allows corrections an# inter(retations
to !e a#o(te# throgh a##en#a.
20.* MO)EL ENERG CO)E
In *++?, the nationGs "o#el co#e organi$ations,
Concil of A"erican 0il#ing ;ffi cials CCA0;D, 0il#ing
;ffi cials an# Co#e A#"inistrators International
C0;CAD, International Conference of 0il#ing ;fficials
CIC0;D, an# ,othern 0il#ing Co#es Congress
International C,0CCID, create# the International Co#e
Concil CICCD. The (r(ose of the new coalition was
to #e)elo( a single set of co"(rehensi)e !il#ing
co#es for new resi#ential an# co""ercial !il#ings,
an# a##itions to sch !il#ings. The 2000 International
Energy Conser)ation Co#e CIECCD was (!lishe# in
8e!rary of 2000 along with ten other co#es, collecti)ely
creating the 2000 8a"ily of International co#es.
These co#es are the sccessor to the *++9 IECC an# the
*++5 Ao#el Energy Co#e CAECD as well as all of the
(re)ios AECs.
The IECC esta!lishes "ini"" #esign an# constrction
(ara"eters for energy-efficient !il#ings
throgh the se of (rescri(ti)e an# (erfor"ance !ase#
(ro)isions. The 2000 IECC has !een refi ne# an# si"(lifi
e# in res(onse to the nee#s of the n"eros sers of
the "o#el energy co#e. It esta!lishes "ini"" ther"al
(erfor"ance re3ire"ents for !il#ing ceilings, walls,
fl oors6fon#ations, an# win#ows, an# sets "ini""
effi ciencies for lighting, "echanical an# (ower syste"s
in !il#ings. Crrently EPACT-*++2 references AEC +5
as the reco""en#e# !il#ing effi ciency co#e. The 7e(art"ent
of Energy is consi#ering certifying the 2000
IECC as the "ost cost-effecti)e resi#ential energy-effi
ciency stan#ar# a)aila!le. ;nce this #eter"ination is
annonce#, EPACT-*++2 re3ires states to #eter"ine
the a((ro(riateness of re)ising their resi#ential energy
co#es to "eet or e-cee# the 2000 IECC.
The (!lication of the 2000 IECC offers states an#
local jris#ictions the o((ortnity to a((ly for fi nancial
an# technical assistance offere# !y 7;EGs 0il#ing
,tan#ar#s an# Gi#elines Progra". If the stan#ar#s
are co#ifi e# !y these entities, their co#e enforce"ent
agencies will ha)e o((ortnities to tili$e the s((ort
infrastrctre alrea#y esta!lishe# !y the national
"o#el co#e organi$ations. Aore infor"ation can !e
o!taine# at the !il#ing Co#es Assistance Projects we!
site/ www. crest. org6effi ciency6.
20.+ !E)ERAL ENERG
E!!ICIENC RE,UIREMENTS
The fe#eral sector is a )ery large cons"er of
energy in the 4nite# ,tates. There are actally o)er
500,000 fe#eral !il#ings with a co"!ine# energy cost
of H*0 !illion (er year. Aanagers an# o(erators of these
installations C"ostly 7e(art"ent of 7efense an# Postal
,er)iceD ha)e )ery little incenti)e to conser)e energy or
i"(ro)e effi ciency. Any wor& that is acco"(lishe# towar#
these goals wol# ha)e nor"ally !een &e(t in the
coffers an# cons"e# !y other fnctions as nenc"!ere#
fn#s. The ;PEC oil e"!argo !roght into focs
the i"(act of energy costs an# the 4, #e(en#ence on
foreign sorces of energy (on or econo"y. In *+I5,
the Energy Policy an# Conser)ation Act #irecte# the
fe#eral go)ern"ent to #e)elo( "an#atory stan#ar#s
for agency (rocre"ent (olicies with res(ect to energy
effi ciency5 an#, #e)elo( an# i"(le"ent a *0-year (lan
for energy conser)ation in fe#eral !il#ings, incl#ing
"an#atory lighting, ther"al an# inslation stan#ar#s.
This act was for"ali$e# with the Energy Conser)ation
an# Pro#ction Act in *+II, which esta!lishe# a *0J
sa)ings goal !y *+95 o)er a *+I5 !aseline. The <ational
Energy Conser)ation Policy Act of *+I9 frther #efi ne#
the fe#eral energy initiati)e with the following sti(lations/
1 Esta!lishes the se of %ife-cycle-cost C%CCD "etho#
of (roject analysis,
1 Esta!lishes (!lication of Energy Perfor"ance
Targets,
1 2e3ires %CC a#its an# retrofi ts of fe#eral !il#ings
!y *++0,
1 Esta!lishes 8e#eral Photo)oltaic Progra",
1 0il#ings e-cee#ing *000 s3are feet are s!ject
to energy a#its, an#
1 Esta!lishes a 8e#eral ,olar Progra".
5?2 E<E2G@ AA<AGEAE<T .A<70;;B
In *+99 the 8e#eral Energy Aanage"ent I"(le"entation
Act C8EAIA *+99D a"en#e# the 8e#eral
Energy Initiati)e !y re"o)ing the re3ire"ents to
(erfor" the %CC a#its !y *++0 an# e-ten#e# the
#ea#line of *0 (ercent sa)ings goals to *++5. 8EAIA also
allowe# the ,ecretary of Energy to set the #iscont rate
se# in %CC analysis an# #irecte# the )arios fe#eral
agencies to esta!lish incenti)e for energy conser)ation.
The <ational 7efense Athori$ation Acts for 8@ 9+, +0,
an# +* a##e# the following (ro)isions/
1 Esta!lishes incenti)e for share# energy sa)ings
contracts in 7;7, allowing half of fi rst year sa)ings
to !e se# for welfare, "orale, an# recreation
acti)ities at the facility. The other half to !e se# for
a##itional conser)ation "easres.
1 E-(an#s 7;7Gs share# energy sa)ings incenti)e to
incl#e half of fi rst 5 years of sa)ings.
1 2e3ires the ,ecretary of 7efense to #e)elo( (lan
for "a-i"i$ing Cost effecti)e energy sa)ings,
#e)elo( si"(lifi e# contracting "etho# for share#
energy sa)ings, an# re(ort annally to congress on
(rogress.
1 E-(an#s 7;7 incenti)es to (artici(ate in tility
re!ate (rogra"s an# to retain two-thir#s of fn#s
sa)e#.
The Presi#ent has (ower to in)o&e their own
stan#ar#s, in the for" of E-ecti)e ;r#ers, n#er
which, agencies of the fe#eral go)ern"ent "st a#here.
Presi#ents 0sh an# Clinton ha)e !oth frther
increase# an# e-ten#e# the effi ciency i"(ro)e"ents
re3ire# to !e n#erta&en !y the fe#eral sector. ;n
Jne >, *+++, Presi#ent Clinton signe# the or#er title#,
EGreening the Go)ern"ent Throgh Effi cient Energy
Aanage"ent.F The or#er re3ire# fe#eral agencies to
achie)e !y 20*0/
1 >5J greater energy effi ciency in !il#ings relati)e
to *+95 le)els, an#
1 >0J ct in greenhose gas e"issions fro" !il#ing-
relate# energy se relati)e to *++0.
The or#er also #irects agencies to "a-i"i$e the se of
energy sa)ings (erfor"ance contracts an# tility contracts,
in which (ri)ate co"(anies "a&e energy i"(ro)e"ents on
fe#eral facilities at their own e-(ense an# recei)e a (ortion
of the reslting sa)ings. %ife cycle cost analysis "st !e
se# so agencies see the long ter" sa)ings fro" energy
in)est"ents rather than "erely the low !i##er selection
criteria. The or#er re3ires that e)erything fro" light !l!s
to !oilers !e energy effi cient as well as the se of renewa!le
energy technologies an# sorces sch as solar, win#,
geother"al an# !io"ass. This or#er also "an#ate# that the
7;E, 7;7 an# G,A (ro)i#e rele)ant training or training
"aterials for those (rogra"s that they "a&e a)aila!le to all
fe#eral agencies relating to energy "anage"ent strategies
containe# in this or#er. A co"(lete te-t of E.;. *>*2> can
!e fon# on the 8EAP Ke! site www.greeninginterior.#oi.
go)6*>*2>.ht"l.
20.- IN)OOR AIR ,UALIT .IA,/ STAN)AR)S1
In#oor Air Lality CIALD is an e"erging isse of
concern to !il#ing "anagers, o(erators, an# #esigners.
2ecent research has shown that in#oor air is often
less clean than ot#oor air an# fe#eral legislation has
!een (ro(ose# to esta!lish (rogra"s to #eal with this
isse on a national le)el. This, li&e the as!estos isse,
will ha)e an i"(act on !il#ing #esign an# o(erations.
A"ericans to#ay s(en# long hors insi#e !il#ings,
an# !il#ing o(erators, "anagers an# #esigners "st
!e aware of (otential IAL (ro!le"s an# how they can
!e a)oi#e#.
IAL (ro!le"s, so"eti"es ter"e# E ,ic& 0il#ing
,yn#ro"e,F ha)e !eco"e an ac&nowle#ge# health an#
co"fort (ro!le". 0il#ings are characteri$e# as sic&
when occ(ants co"(lain of acte sy"(to"s sch as
hea#ache, eye, nose an# throat irritation, #i$$iness,
nasea, sensiti)ity to o#ors an# #iffi clty in concentrating.
The co"(laints "ay !eco"e "ore clinically
#efi ne# so that an occ(ant "ay #e)elo( an actal
!il#ing-relate# illness that is !elie)e# to !e relate# to
IAL (ro!le"s.
The "ost effecti)e "eans to #eal with an IAL
(ro!le" is to re"o)e or "ini"i$e the (olltant sorce,
when feasi!le. If not, #iltion an# fi ltration "ay !e effecti)e.
7iltion Cincrease# )entilationD is to a#"it "ore
otsi#e air to the !il#ing, A,.2AEGs *+9* stan#ar#
reco""en#e# 5 C8A6(erson otsi#e air in an offi ce
en)iron"ent. The new A,.2AE )entilation stan#ar#,
M2-*+9+, now re3ires 20 C8A6(erson for offi ces if the
(rescri(ti)e a((roach is se#. Inci#entally, it was the
energy cost of treating otsi#e air that le# to the *+9*
stan#ar#. The s(erse#e# *+I> stan#ar# reco""en#e#
*5-25 C8A6(erson.
*,orce/ In#oor Air Lality/ Pro!le"s = Cres, A. 0lac& = K. 2o!ertson,
Presente# at *>th Korl# Energy Engineering Congress.
C;7E,, ,TA<7A27, = %EGI,%ATI;< 5?>
Increase# )entilation will ha)e an i"(act on
!il#ing energy cons"(tion .owe)er, this cost nee#
not !e se)ere. If an airsi#e econo"i$er cycle is e"(loye#
an# the .:AC syste" is controlle# to res(on#
to IAL loa#s as well as ther"al loa#s, 20 C8A6(erson
nee# not !e a#here# to an# the econo"i$er hors will
hel( attain air 3ality goals with energy sa)ings at the
sa"e ti"e.
In the fall of *+++ A,.2AE ,tan#ar# M2-*+++
was isse#, E:entilation for Acce(ta!le In#oor Air
Lality.F The new stan#ar# containe# the entire *+9+
)ersion, which re"ains nchange#, along with for
new a##en#a. The reference in the 9+ stan#ar# that
the )entilation le)els col# acco""o#ate a "o#erate
a"ont of s"o&ing was re"o)e#, #e to tro!les with
secon#han# to!acco s"o&e. The new stan#ar# also re"o)e#
reference to ther"al co"fort, which is co)ere#
!y other A,.2AE ,tan#ar#s. Atte"(ts were "a#e to
clarify the confsion concerning how car!on #io-i#e
can !e se# to #eter"ine air conta"ination. A state"ent
was also a##e# to assre that #esigners n#erstan#
that "erely following the (rescri!e# )entilation
rates #oes not ensre acce(ta!le in#oor air 3ality. The
,tan#ar# was a##e# to the continos re)iew (rocess,
which will "an#ate fi r"s &ee( ( with the (er(etal
changes, corrections an# clarifi cations. There are "any
isses that are still n#er re)iew as a##en#"s to the
stan#ar#. The ty(es of !il#ings that are co)ere# were
li"ite# to co""ercial an# instittional, an# the "etho#s
of calclation of the occ(ancy le)els ha)e !een
clarifi e#. A,.2AE offers a s!scri(tion ser)ice that
(#ates all a##en#" an# inter(retations. ;ne of the
"ain isses that shol# !e consi#ere# #ring #esign
of .:AC syste"s is that the ot#oor air )entilation is
re3ire# to !e #eli)ere# cf", which "ay !e i"(acte#
with new )aria!le )ol"e air han#ling syste"s.
Energy sa)ings can !e reali$e# !y the se of
i"(ro)e# fi ltration in lie of the (rescri(ti)e 20 C8A6
(erson a((roach. I"(ro)e# fi ltration can occr at the
air han#ler, in the s((ly an# retrn #ctwor&, or in
the s(aces )ia self-containe# nits. I"(ro)e# fi ltration
can incl#e enhance"ents sch as ioni$ation #e)ices to
netrali$e air!orne !iological "atter an# to electrically
charge fi ne (articles, casing the" to agglo"erate an#
!e "ore easily fi ltere#.
The ;cc(ational ,afety an# .ealth A#"inistration
C;,.AD annonce# a (ro(ose# rle on Aarch 25,
*++? that wol# reglate in#oor air 3ality CIALD in
wor&(laces across the nation. The (ro(ose# rle a##resses
all in#oor conta"inants !t a signifi cant ste(
wol# !an all s"o&ing in the wor&(lace or restrict
it to s(ecially #esigne# longes e-haste# #irectly
to the otsi#e. The s"o&ing rle wol# a((ly to all
wor&(laces while the IAL (ro)isions wol# i"(act
Enon-in#strialF in#oor facilities.
There is growing consenss that the "ost (ro"ising
way to achie)e goo# in#oor air 3ality is throgh
conta"inant sorce control. ,orce control is "ore cost
effecti)e than trying to re"o)e a conta"inant once it
has #isse"inate# into the en)iron"ent. ,orce control
o(tions incl#e che"ical s!stittion or (ro#ct refor"lating,
(ro#ct s!stittion, (ro#ct enca(slation,
!anning so"e s!stances or i"(le"enting "aterial e"ission
stan#ar#s. ,orce control "etho#s e-ce(t e"ission
stan#ar#s are incor(orate# in the (ro(ose# rle.
20.0 REGULATIONS 1 STAN)AR)S
IMPACTING C!Cs
8or years, chlorofl orocar!ons CC8CsD were se#
in air-con#itioning an# refrigeration syste"s. .owe)er,
!ecase C8Cs are i"(licate# in the #e(letion of the
earthGs o$one layer, reglations re3ire# the co"(lete
(haseot of the (ro#ction of new C8Cs !y the trn of
the centry. Aany co"(anies, li&e 7Pont, #e)elo(e#
alternati)e refrigerants to re(lace C8Cs. The nee# for
alternati)es will !eco"e e)en greater as reglatory
ct!ac&s case contining C8C shortages.
Air-con#itioning an# refrigeration syste"s #esigne#
to o(erate with C8Cs will nee# to !e retrofi tte#
Cwhere (ossi!leD to o(erate with alternati)e refrigerants
so that these syste"s can re"ain in se for their
inten#e# ser)ice life.
7Pont an# other co"(anies are co""erciali$ing
their series of alternati)es'hy#rochlorofl orocar!on
C.C8CD an# hy#rofl orocar!on C.8CD co"(on#s. ,ee
Ta!le 20.*.
The Aontreal Protocol which is !eing i"(le"ente#
!y the 4nite# <ations En)iron"ent Progra"
C4<EPD is a worl#wi#e a((roach to the (haseot
of C8Cs. A "ajor re)ision to the Aontreal Protocol
was i"(le"ente# at the *++2 "eeting in Co(enhagen
which accelerate# the (haseot sche#le.
The rea#er is a#)ise# to careflly consi#er !oth the
EalternateF refrigerants entering the "ar&et (lace and
the alternate technologies a)aila!le. Alternate refrigerants
co"e in the for" of .C8Cs an# .8Cs. .8Cs ha)e
the attracti)e attri!te of ha)ing no i"(act on the o$one
layer Can# corres(on#ingly are not na"e# in the Clean
Air ActD. Alternati)e technologies incl#e a!sor(tion
an# a""onia refrigeration Cesta!lishe# technologies
since the early *+00GsD, as well as #esiccant cooling.
Ta-es on C8Cs originally too& effect Janary *,
5?? E<E2G@ AA<AGEAE<T .A<70;;B
*++0. The Energy Policy Act of *++2 re)ise# an# frther
increase# the e-cise ta- effecti)e Janary *, *++>.
Another factor to consi#er in A,.2AE Gi#elines
>-*++0'2e#cing E"ission of 8lly .alogenate# Chlorofl
orocar!on CC8CD 2efrigerants in 2efrigeration an#
Air-Con#itioning E3i("ent an# A((lications/
The (r(ose of this gi#eline is to reco""en#
(ractices an# (roce#res that will re#ce
ina#)ertent release of flly halogenate# chlorofl orocar!on
CC8CD refrigerants #ring "anfactre,
installation, testing, o(eration, "aintenance, an#
#is(osal of refrigeration an# air-con#itioning
e3i("ent an# syste"s.
The gi#eline is #i)i#e# into *> sections. .ighlights
are as follows/
The 7esign ,ection #eals with air-con#itioning
an# refrigeration syste"s an# co"(onents an#
i#entifies (ossi!le sorces of loss of refrigerants to
at"os(here. Another section otlines refrigerant reco)ery
rese an# #is(osal. The Alternati)e 2efrigerant
section #iscsses re(lacing 2**, 2*2, 2**>, 2**?, 2**5
an# a$eotro(ic "i-tres 2500 an# 2502 with .C8Cs
sch as 222.
20.2 REGULATOR AN) LEGISLATI3E
ISSUES IMPACTING AIR ,UALIT
20.2.1 C4e5# Air A't A6e#d6e#t
;n <o)e"!er *5, *++0, the new Clean Air Act
CCAAD was signe# !y Presi#ent 0sh. The legislation
incl#es a section entitle# ,tratos(heric ;$one
Protection CTitle :ID. This section contains e-traor#inarily
co"(rehensi)e reglations for the (ro#ction
an# se of C8Cs, halons, car!on tetrachlori#e, "ethyl
chlorofor", an# .C8C an# .8C s!stittes. These
reglations will !e (hase# in o)er the ne-t ?0 years,
an# they will i"(act e)ery in#stry that crrently ses
C8Cs.
The seriosness of the o$one #e(letion is sch
that as new fi n#ings are o!taine#, there is tre"en#os
(olitical an# scientifi c (ressre (lace# on C8C en#-sers
to (hase ot se of C8Cs. This has reslte# in the
4.,., n#er the signatre of Presi#ent 0sh in 8e!rary
*++2, to ha)e accelerate# the (haseot of C8Cs.
20.2.2 7%oto Proto'o4
The 4nite# ,tates ratifie# the 4nite# <ationsG
8ra"ewor& Con)ention on Cli"ate Change, which
is also &nown as the Cli"ate Change Con)ention, on
7ece"!er, ?, *++2. The treaty is the fi rst !in#ing international
legal instr"ent to #eal #irectly with cli"ate
change. The goal is to sta!ili$e green hose gases in
the at"os(here that wol# (re)ent h"an i"(act
on glo!al cli"ate change, The nations that signe# the
treaty co"e together to "a&e #ecisions at "eetings call
Conferences of the Parties. The >9 (arties are gro(e#
into two gro(s, #e)elo(e# in#striali$e# nations
CAnne- I contriesD an# #e)elo(ing contries CAnne-
**D. The Byoto Protocol, an international agree"ent
reache# in Byoto in *++I !y the thir# Conference of
the Parties CC;P->D, ai"s to lower e"issions fro" two
gro(s of three greenhose gases/ Car!on #io-i#e,
"ethane, an# nitros o-i#e an# the secon# gro( of
hy#roflorocar!on C.8CsD, slfr he-aflori#e an#
(erfl orocar!ons. E"issions are "eant to !e re#ce#
an# li"ite# to le)els fon# in *++0 or *++5, #e(en#ing
(on the gases consi#ere#. The re3ire"ents will
i"(act ftre clean air a"en#"ents, (articlarly for
(oint sorces. These re3ire"ents will frther i"(act
the i"(le"entation of #istri!te# generation sorces,
which are #iscsse# in the following section.
T584e 20.1 C5#did5te A4ter#5ti(es &or C!Cs i# E9isti#$ Coo4i#$ S%ste6s
''''''''''''''''''''''''''''''''
'''''''''''''''''''
C8C Alternati)e Potential 2etrofi t A((lications
C8C-** .C8C-*2> Kater an# !rine chillers5 (rocess cooling
C8C-*2 .8C-*>?a or Ato air con#itioning5 "e#i" te"(eratre co""ercial
foo#
Ternary #is(lay an# trans(ortation e3i("ent5 refrigerators6free$ers5
0len#s #eh"i#ifi ers5 ice "a&ers5 water fontains
C8C-**? .C8C-*2? Kater an# !rine chillers
2-502 .8C-*25 %ow-te"(eratre co""ercial foo# e3i("ent
''''''''''''''''''''''''''''''''
'''''''''''''''''''
C;7E,, ,TA<7A27, = %EGI,%ATI;< 5?5
20.: REGULATOR AN) LEGISLATI3E ISSUES
IMPACTING COGENERATION 1
IN)EPEN)ENT PO;ER PRO)UCTION2
8e#eral, state an# local reglations "st !e a##resse#
when consi#ering any cogeneration (roject.
This section will (ro)i#e an o)er)iew of the fe#eral
reglations that ha)e the "ost signifi cant i"(act on
cogeneration facilities.
20.:.1 !eder54 Po<er A't
The 8e#eral Power Act asserts the fe#eral
go)ern"entGs (olicy towar# co"(etition an# antico"(etiti)e
acti)ities in the electric (ower in#stry.
It i#entifi es the 8e#eral Energy 2eglatory Co""ission
C8E2CD as the agency with (ri"ary jris#iction
to (re)ent n#esira!le anti-co"(etiti)e !eha)ior with
res(ect to electric (ower generation. Also, it (ro)i#es
cogenerators an# s"all (ower (ro#cers with a j#icial
"eans to o)erco"e o!stacles (t in (lace !y
electric tilities.
20.:.2 P=84i' Uti4it% Re$=45tor% Po4i'ies A't .PURPA/
This legislation was (art of the *+I9 <ational
Energy Act an# has ha# (erha(s the "ost signifi cant
effect on the #e)elo("ent of cogeneration an# other
for"s of alternati)e energy (ro#ction in the (ast
#eca#e. Certain (ro)isions of P42PA also a((ly to
the e-change of electric (ower !etween tilities an#
cogenerators.
P42PA (ro)i#es a n"!er of !enefi ts to those
cogenerators who can !eco"e Lalifying 8acilities
CL8sD n#er the act. ,(ecifi cally, P42PA
1 2e3ires tilities to (rchase the (ower "a#e a)aila!le
!y cogenerators at reasona!le !y-!ac& rates.
These rates are ty(ically !ase# on the tilitiesG cost.
1 Garantees the cogenerator or s"all (ower (ro#cer
interconnection with the electric gri# an# the a)aila!ility
of !ac&( ser)ice fro" the tility.
1 7ictates that s((le"ental (ower re3ire"ents of
cogenerator "st !e (ro)i#e# at a reasona!le cost.
1 E-e"(ts cogenerators an# s"all (ower (ro#cers
fro" fe#eral an# state tility reglations an# associate#
re(orting re3ire"ents of these !o#ies.
In or#er to assre a facility the !enefits of
P42PA, a cogenerator "st !eco"e a Lalifying
8acility. To achie)e Lalifying ,tats, a cogenerator
"st generate electricity an# sefl ther"al energy
fro" a single fel sorce. In a##ition, a cogeneration
facility "st !e less than 50J owne# !y an electric
tility or an electric tility hol#ing co"(any. 8inally,
the (lant "st "eet the "ini"" annal o(erating
effi ciency stan#ar# esta!lishe# !y 8E2C when sing
oil or natral gas as the (rinci(al fel sorce. The
stan#ar# is that the sefl electric (ower ot(t (ls
one half of the sefl ther"al ot(t of the facility
"st !e no less than ?2.5J of the total oil or natral
gas energy in(t. The "ini"" effi ciency stan#ar#
increases to ?5J if the sefl ther"al energy is less
than *5J of the total energy ot(t of the (lant.
20.:.* N5t=r54 G5s Po4i'% A't .NGPA/
The "ajor o!jecti)e of this legislation was to
create a #ereglate# national "ar&et for natral gas.
It (ro)i#es for incre"ental (ricing of higher cost
natral gas s((lies to in#strial csto"ers who se
gas, an# it allows the cost of natral gas to fl ctate
with the cost of fel oil. Cogenerators classifi e# as
Lalifying 8acilities n#er P42PA are e-e"(t fro"
the incre"ental (ricing sche#le esta!lishe# for in#strial
csto"ers.
20.:.+ Reso=r'e Co#ser(5tio# 5#d
Re'o(er% A't o& 1"20 .RCRA/
This act re3ires that #is(osal of non-ha$ar#os
soli# waste !e han#le# in a sanitary lan#fi ll instea#
of an o(en #"(. It affects only cogenerators with
!io"ass an# coal-fire# (lants. This legislation has
ha# little, if any, i"(act on oil an# natral gas cogeneration
(rojects.
20.:.- P=84i' Uti4it% Ho4di#$ Co6>5#% A't o& 1"*-
The P!lic 4tility .ol#ing Co"(any Act of
*+>5 Cthe >5 ActD athori$es the ,ecrities an# E-change
Co""ission C,ECD to reglate certain tility
Ehol#ing co"(aniesF an# their s!si#iaries in a wi#e
range of cor(orate transactions.
The Energy Policy Act of *++2 creates a new
class of wholesale-only electric generators'E e-e"(t
wholesale generatorsF CEKGsD'which are e-e"(t
fro" the P!lic 4tility .ol#ing Co"(any Act CP4.CAD.
The Act #ra"atically enhances co"(etition in
4.,. wholesale electric generation "ar&ets, incl#ing
!roa#er (artici(ation !y s!si#iaries of electric tilities
an# hol#ing co"(anies. It also o(ens ( foreign
"ar&ets !y e-e"(ting co"(anies fro" P4.CA with
res(ect to retail sales as well as wholesale sales. 2,orce/ Georgia
Cogeneration Handbook, (!lishe# !y the Go)ernorGs
;ffi ce of Energy 2esorces.
5?M E<E2G@ AA<AGEAE<T .A<70;;B
20.:.0 Mo(i#$ to<5rds 5 dere$=45ted
e4e'tri' >o<er 65r?et>45'e
EPACT-*++2 set into "otion a wi#es(rea#
"o)e"ent for tilities to !eco"e "ore co"(etiti)e.
2etail wheeling (ro(osals were set into "otion in
states sch as California, Kisconsin, Aichigan, <ew
Ae-ico, Illinois an# <ew Jersey. There are "any isses
in)ol)e# in a #ereglate# (ower "ar&et(lace
an# (!lic ser)ice co""ission rlings an# litigation
will certainly (lay a "ajor role in the (ower "ar&et(lace
of the ftre. 7ereglation has alrea#y !roght
a!ot se)eral i"(ortant #e)elo("ents/
1 4tilities will nee# to !eco"e "ore co"(etiti)e.
7ownsi$ing an# "ini"i$ation of costs incl#ing
eli"ination of re!ates are the crrent tren#. This
translates into lower costs for cons"ers. 8or
e-a"(le ,othern California E#ison annonce#
that the syste" a)erage (rice will !e re#ce#
fro" *0.I cents6&Kh to lower than *0 cents !y
the year 2000. This wol# !e a 25J re#ction
after a#jsting for infl ation.
1 4tilities will "erge to gain a !igger "ar&et
share. 8or e-a"(le, Kisconsin Electric Power
Co"(any "erge# with <orthern ,tates Power5
this "erger of two tilities reslte# in a sa)ings
of H2 !illion o)er *0 years.
1 4tilities are for"ing new co"(anies to !roa#en
their ser)ices. Energy ser)ice co"(anies, fi nancial
loan (rogra"s an# (rchasing of relate# co"(anies
are all (art of the new tility strategy.
1 In *++5 one hn#re# (ower "ar&eting co"(anies
ha)e s!"itte# a((licants to 8E2C. Power
"ar&eting co"(anies will (lay a &ey role in
!ro&ering (ower !etween en# sers an# tilities
in #ifferent states an# in (rchasing of new
(ower generation facilities.
1 4tilities will nee# to restrctre to ta&e a#)antage
of #ereglation. Generation Co"(anies
"ay !e s(lit away fro" other o(erating #i)isions
sch as trans"ission an# #istri!tion.
:ertical #isintegration will !e (art of the new
tility strctre.
1 4tilities will weigh the cost of re(owering an#
(gra#ing e-isting (lants against (rchasing
(ower fro" a thir# (arty.
Cha(ter 2? #iscsses "any "ore isses on the
to(ic of electrical #ereglation.
20." OPPORTUNITIES IN THE SPOT MAR7ET*
B5si's o& t@e S>ot M5r?et
A whole new "etho# of contracting has e"erge#
in the natral gas in#stry throgh the s(ot "ar&et.
The "ar&et has #e)elo(e# !ecase the <atral Gas
Policy Act of *+I9 C<GPAD garantee# so"e rights
for en#-sers an# "ar&eters in the (rchasing an#
trans(orting of natral gas. It also (t natral gas
s((lies into a "ore co"(etiti)e (osition with #ereglation
of se)eral categories.
The 8e#eral Energy 2eglatory Co""ission
C8E2CD (ro)i#e# a##itional rlings that facilitate#
the growth of the s(ot "ar&et. These rlings incl#e#
(ro)isions for the ,(ecial Aar&eting Progra"s
in *+9> C;r#er 2>?MD an# ;r#er ?>M in *+95, which
encorage# the natral gas (i(elines to trans(ort gas
for en#-sers throgh !lan&et certifi cates.
The change in the strctre of "ar&ets in the
natral gas in#stry has !een i""ense in ter"s of
!oth )ol"es an# the (artici(ants in the "ar&et. 0y
year-en# *+9M, al"ost ?0J of the interstate gas s((ly
was !eing trans(orte# on a carriage !asis. <ot
only were en#-sers (artici(ating in contract carriage,
!t local #istri!tion co"(anies C%7CsD were
acconting for a!ot one half of the s(ot )ol"es on
interstate (i(elines.
The Es(ot "ar&etF or E#irect (rchaseF "ar&et
refers to the (rchase of gas s((lies #irectly fro" the
(ro#cer !y a "ar&eter, en#-ser or %7C. CThe ter"
Es(ot gasF is often se# synony"osly with E!est efforts
gas,F Einterr(ti!le gas,F E#irect (rchase gasF
an# Eself-hel( gas.FD This ty(e of arrange"ent cannot
!e calle# new !ecase the (i(elines ha)e always sol#
so"e s((lies #irectly to en#-sers.
The new "ar&et #iffers fro" the (ast arrange"ents
in ter"s of the fre3ency in contracting an#
the )ol"es in)ol)e# in sch contracts. Another
characteristic of the s(ot "ar&et is that contracts
are short-ter", sally only >0 #ays, an# on an
interr(ti!le !asis. The interr(ti!le natre of s(ot
"ar&et s((lies is an i"(ortant &ey to n#erstan#ing
the o(eration of the s(ot "ar&et an# the costs
of #ealing in it. ;n !oth the (ro#ction an# trans(ortation
si#es, all acti)ities in trans(ortation or
(rchasing s((lies are on a E!est effortsF !asis.
This "eans that when a col# sna( co"es the #irect
(rchaser "ay not get #eli)ery on his contracts
!ecase of (ro#cer sht#owns, (i(eline ca(acity
an# o(erational (ro!le"s or a co"!ination of these
(ro!le"s. The E!est effortsF a((roach to #ealing
can also lea# to (ro!le"s in trans(orting s((lies
C;7E,, ,TA<7A27, = %EGI,%ATI;< 5?I
when #e"an# is high an# ca(acity li"ite#.
!ERCAs Order No. +*0
The i"(ets for interstate (i(eline carriage ca"e
with 8E2CGs ;r#er <o. ?>M, later slightly change#
an# ren"!ere# <o. 500, which (ro)i#e# "ore fl e-i!ility
in (ricing an# trans(orting natral gas. In
(assing the *+9M rling, 8E2C was atte"(ting to get
ot of the #ay-to-#ay o(erations of the "ar&et an#
into "ore generic rle "a&ing. Aore significantly,
8E2C was trying to get interstate (i(elines ot of the
"erchant !siness into the trans(ortation !siness'a
ste( re3iring a "ajor restrctring of contracting in
the gas in#stry.
8E2C has e-(resse# an intent to create a "ore
co"(etiti)e "ar&et so that (rices wol# signal a#jst"ents
in the "ar&ets. The !elief is that #irect
sales ties !etween (ro#cers an# en#-sers will
facilitate "ar&et a#jst"ents withot reglatory
re3ire"ents clo#ing the "ar&et. As "ore gas is
#ereglate#, 8E2C reasone# that natral gas (rices
will res(on# to the #e"an#/ %ower (rices wol#
assist in clearing e-cess s((lies5 then as "ar&ets
tightene#, (rices wol# rise #rawing frther in)est"ent
into s((ly #e)elo("ent.
!ERC Order No. 0*0
;r#er M>M re3ire# signifi cant E2estrctringF
in interstate (i(eline ser)ices, starting in the fall of
*++>. The original ;r#er M>M/
1 ,e(arates Cn!n#lesD (i(eline gas sales fro" trans(ortation
1 Pro)i#es o(en access to (i(eline storage
1 Allows for Eno noticeF trans(ortation ser)ice
1 2e3ires access to (strea" (i(eline ca(acity
1 4ses !lletin !oar#s to #isse"inate infor"ation
1 Pro)i#es for a Eca(acity releaseF (rogra" to te"(orarily
sell fi r" trans(ortation ca(acity
1 Pregrants a (i(eline the right to a!an#on gas sales
1 0ases rates on straight fi -e# )aria!le C,8:D #esign
1 Passes throgh *00J of transition costs in fi -e#
"onthly charges to fi r" trans(ort csto"ers
!ERC Order No. 0*0A
;r#er M>MA "a&es se)eral relati)ely "inor
changes in the original or#er an# (ro)i#es a great
#eal of written #efense of the original or#erGs ter"s.
The &ey changes are/
1 Concessions on trans(ort an# sales rates for a
(i(elineGs tra#itional Es"all salesF csto"ers Cli&e
"nici(alitiesD.
1 The o(tion to EreleaseF CsellD fi r" ca(acity for less
than one "onth'without posting it on a bulletin board
system or bidding.
1 Greater fl e-i!ility in #esigning s(ecial trans(ortation
rates Ci.e., off-(ea& ser)iceD while still re3iring
o)erall a#herence to the straight fi -e# )aria!le rate
#esign.
1 2eco)ery of *0J of the transition costs fro" the
interr(ti!le trans(ortation csto"ers CPart 29?D.
Cort action is still li&ely on the ;r#er. 8rther,
each (i(eline will s!"it its own ni3e tariff
to co"(ly with the ;r#er. As a reslt, a##itional
changes an# )ariations are li&ely to occr.
20.10 THE CLIMATIC CHANGE ACTION PLAN
The Cli"atic Change Action Plan was esta!lishe#
A(ril 2*, *++> an# incl#es the following/
1 2etrns 4.,. greenhose gas e"issions to *++0
le)els !y the year 2000 with cost effecti)e #o"estic
actions.
1 Incl#es "easres to re#ce all significant
greenhose gases, car!on #io-i#e, "ethane,
nitros o-i#e, hy#roflorocar!ons an# other
gases.
20.11 SUMMAR
The #yna"ic (rocess of re)isions to e-isting
co#es (ls the intro#ction of new legislation will
i"(act the energy in#stry an# !ring a #ra"atic
change. Energy conser)ation an# creating new (ower
generation s((ly o(tions will !e re3ire# to "eet
the energy #e"an#s of the twenty-fi rst centry.