Nancy Kunkle, SEI Program Manager, attended the Tri State Sustainability Symposium at Temple University on March 4, 2015.   The event was a great way to network with sustainability industry players and institutions in the region and Nancy was able to re-connect with our past Program Manager, Will Williams who was also in attendance!  Thanks to Paul Spiegel, a BoD member,  for the event recommendation!  Here are just some of the highlights that might be of interest to our SEI participants . . .

• By the numbers: the “80×50 challenge” (reducing greenhouse gas emissions by 80% by 2050).  It’s a great mantra – It’s NOT a plan of action, but a good dialogue! Focus is on reducing emissions in office buildings (60%), surface transportation (19%) and electricity. But the big payoff will come from residential.  The ROI for residential retrofits (thermostats, bulbs, insulation, furnance, hot water heater, etc) is more difficult to achieve.
• Philadelphia continues their focus on Sustainability: The Philadelphia Energy Authority is renewing focus on energy efficiency under Mayor Kenney.  The team wants to do deeper retrofits of buildings and do projects faster than they have been able to in the past. The Mayor’s Office of Sustainability under the leadership of Christine Knapp is working to update the Greenworks program this year and is looking for input on what programs and projects are of interest.  THE Greater Philadelphia Chamber of Commerce, Select Greater Philadelphia, and the CEO Council for Growth created the Greater Philadelphia Energy Action Team will release their update Energy Hub report on March 30, 2016.
• Philly’s “Coolest Block” contest:    ECA did the Coolest Block contest under Mayor Nutter and it’s now called the Energy Fit Philly competition.  Money comes from Federal Weatherization Program for Residential Energy Efficiency.  You might think that it’s not getting a lot of attention because of the low cost of fossil fuels but those prices are most likely to go up so now is the time to invest.  Philadelphia now has a requirement that all new row house roofs be white to reflect heat.  A question to the SEI group: is there an opportunity for a similar neighborhood project in the SE PA suburbs?”
• Passive House – started in Germany but a key movement in the USA: the single family house is the most expensive to get the most efficient BUT there are so many of them that if we can figure out solutions it will have the largest impact! Typical building costs are 8-10% higher than a typical cost of a new house.  Philadelphia has 6-9 passive house projects already.  Energy Star initiative is great at addressing energy efficiency, but it is just not fast enough and he challenged the audience that we need to leap frog and find other solutions that have bigger impacts.  Building codes and incentives, perhaps at the national level, needs to be part of the passive house solution.
• Building a sustainability network: Lehigh Valley shared what many regions are facing – that sustainability groups exist in high numbers but in silos.  Everyone knows a silo; it’s good for some things but not sustainability because sustainability isn’t a single problem.  We need to connect our silos and empower the collective resources.    Mike Dunn from the US EPA office made a good point about not getting too carried away with the details when forming a network:  The idea of “weak” network might work best; it’s one that gets things done without a lot of structure and bureaucracy.

Philly.com, Business-Energy

Author: Andrew Maykuth, amaykuth@phillynews.com

Paul Spiegel and the team at Practical Energy Solutions, Inc. know something about energy and surviving the growing pains of a small business.  ​The company, located in West Chester and serving the greater Philadelphia, area is an energy consulting partnership.  Practical Energy Solutions is committed to working with organizations to cut their energy expenses and reduce environmental impacts.  Spiegel, the company’s president, is celebrating the 10^th anniversary of the company that he started in March 2006.   Today the company has 8 employees and is positioned to ride the growth of the energy industry taking place.  In addition to running Practical Energy Solutions, Paul is a member of the Board of Directors and the Executive Committee for the Smart Energy Initiative of Southeastern PA.

We took some time recently to interview Paul about his company and his 10 years at the helm.

Paul, tell us a bit about your background:  where did you grow up, where did you go to school?

I grew up right here in Chester County, and went through TE School District, including Valley Forge Middle School and Conestoga SHS. I followed that up with getting my college degree at University of Delaware.

How did Practical Energy Solutions get started and what was it like in the early years?

I started the company in March of 2006 with an equal partner, and our sole service was evaluation of building operations and providing technical support for operating buildings more efficiently to save energy. Our goal was to reduce energy consumption 15% – 20% without any capital investment, and we were paid out of the energy cost savings. We received 50% – 80% of the savings for the first 2 years. My partner left in 2007, and I was the only employee until early 2009, and I immediately broadened our service offering to include assessments of capital upgrades, energy audits, and energy strategic planning, all for commercial, municipal and educational facilities. I also added an energy education or behavior change element to our services, because the people managing and occupying the buildings have a huge impact on the energy performance. When the recession hit, many of our clients wanted to be more aggressive about saving energy, because the economy was forcing them to reduce costs, and energy savings helped them improve their financials without cutting staff or programs. We grew significantly during the next several years.

What is your greatest passion related to Energy?

I’ve been concerned about the environment my whole life, especially clean air and clean water. I did my final research project my senior year in college in my Economic Analysis of Law class on the economic benefits to improving air quality, and processes for sharing the costs between polluters and “users” (people that breathe the air…). But I’ve also been responsible for the financial performance of my department at previous employers since 1990, and at my company since we started in 2006, and I understand the fiscal responsibilities of building owners. I really love the fact that by saving energy, there are both economic and environmental benefits from the projects that we identify, design, and/or implement for our clients, and these projects pay for themselves at an excellent rate of return.

What are some of the toughest challenges that Practical Energy Solutions faces in today’s market?

Low energy prices and a stronger economy seem to have combined to soften some of the demand for energy services, although not as much as I had thought they would. We are fortunate to have developed a strong client base that uses our services year after year, so our workload actually increased about 15% from 2014 to 2015, and our backlog increased over 50%.

What is your most visible project?

We have a contract with the City of Philadelphia that was just renewed at the end of 2015, for a maximum of 4 years, after our original 4 year contract ended. Working closely with city employees on identifying opportunities for energy savings that can be scaled up to reduce energy use in their entire portfolio of similar buildings allows us to have a huge impact on energy use in the city. We have also been providing support in developing standards for building renovations, operations, and design of new buildings and systems.

With 10 years of success to build upon, where do you see the company in the next 10 years?

I see us adding to the core of repeat clients that use our services year after year. In our first year of operation, our first four contracts were with a large public school district, a local municipality, a large private K-12 school, and a commercial business that occupies a 5-building office park in Chester County, and ten years later we still do work every year for three of our first four clients. Our goal is to help our clients develop their own energy goals and a long-term strategy for continuous improvement on their energy performance, and then to be their “GPS” to guide them through the implementation process, adjusting the plan as needed based on market opportunities or funding opportunities that arise.  So I see us continuing to add more of these committed organizations and individuals to our growing list of long-term partners, and being excited to come to work every day to help them have a positive economic and environmental impact within their organizations!

By A. Stevens Krug, AIA, PE, CEM, LEEDap

2015 was an unforgettable year for energy and the environment in the news.

Will 2016 have more of the same?

In 2015, the Pope issued his encyclical letter, had a historic tour of the United States including Philadelphia, Pennsylvania, and discussed the environment, “our common home”. In December 2015 at the United Nations COP21 climate talks in Paris, 197 countries, including the United States, promised to do their duty to fight global climate change. However, the Paris Agreement won’t be official until 55 countries that produce at least 55% of the world’s greenhouse gas emissions ratify the agreement. The agreement has been called soft by many, and it is unclear if it is an important “turning point for the world” as many world leaders touted.

In preparation for the Paris climate conference, the Obama administration and EPA announced the Clean Power Plan on August 3, 2015. The plan is intended to reduce carbon pollution from power plants by extending the Clean Air Act. The EPA rule would force massive reduction of CO2 that come from coal fired power plants. Many of these coal fired plants will likely be converted to cleaner natural gas as a fuel. A number of States and coal companies have sued, because they believe the Clean Power Plan violates the law.

Now we come to 2016 and on February 9th, the late Justice Antonin Scolia and four other justices stayed implementation of the Clean Power Plan pending judicial review. The Supreme Court will let the lawsuit be heard by a federal appeals court in Washington, DC. If the rules are upheld in the Appeals Court, the case may be sent back to the Supreme Court. With only 8 justices currently, the previous 5-4 vote could become a 4-4 tie, upholding the Appeals Court Ruling. That’s when things could get very interesting.

The Clean Power Plan would reduce US CO2 emissions from the electric power sector by almost 1/3 over the 2005 levels. A vacant Supreme Court seat filled by President Obama, or the next President, will likely affect the outcome of the US climate change pledge. 2016 is an election year. It has already been very entertaining and the show is just getting started.

Mr. Krug is a Principal at Krug Architects and serves as Chairman of the Pennsylvania Climate Change Advisory Committee and Chair of the SEI Programming Committee.

The Energy Department will present a live webinar titled “Higher Ed Plug-in Electric Vehicle Charging Webinar,” on Thursday, March 10, from 3:30 p.m. to 4:30 p.m. Eastern Standard Time. Join this webinar to learn how the Energy Department’s EV Everywhere Workplace Charging Challenge is working with higher education campuses across the country to install chargers for plug-in electric vehicles. Register for the webinar.

The Energy Department will also present a live webinar titled “DetecTape—A localized visual detector for hydrogen leaks,” on Monday, March 14, from 12:00 p.m. to 1:00 p.m. Eastern Standard Time. Join this webinar to learn about DetecTape^™, a color-changing, self-fusing silicone tape designed to detect hydrogen gas leaks in fuel cell, transmission, storage, and generation facilities. Hydrogen equipment operators can use this new visual indicator to quickly identify precise leak locations and initiate maintenance protocols, expediting the restoration of equipment while maintaining a safe workplace. Register for the webinar.

See more upcoming webinars.

The Chester County Economic Development Council’s Smart Energy Initiative recently held its annual Energy Briefing on February 24th. Special thanks to our event sponsors: Silicon Power, PECO Smart Ideas, Community Energy, Practical Energy Solutions, and Brandywine Valley Heating and Air Conditioning.

Below, please find the key messages and insights shared by our panel of specialists in the energy industry and energy policy: Pictured from left: Steve Krug of Krug Architects and SEI Programming Committee Chair, Rob Graff of Delaware Valley Regional Planning Commission;  Steve Mullin, President Econsult Solutions, Inc. and Mark Alan Hughes, Faculty Director at the Kleinman Center for Energy Policy at the University of Pennsylvania.

1. What energy trends are of greatest relevance to energy professionals in southeastern Pennsylvania?
   1. Energy Efficiency and Natural Gas Technologies, such as Combined Heat and Power (CHP), in the region.
   2. If working in other states, alternative energy sources are supported in NY, NJ, DE and MD.
   3. Electric car charging stations in urban areas.
   4. ESCO (Energy Service Companies) and GESA (Guaranteed Energy Savings Act) opportunities.
2. How might the US EPA’s Clean Power Plan affect our region?
   1. “It’s a jujitsu between policy taking and policy making”  Leadership cannot reconcile this debate.  Until we know what our plan is related to achieving goals, we cannot say to what degree we can reduce carbon/green house gas emissions.
   2. Local/regional challenge on energy policy is balancing policy-making vs policy-taking. Cities especially have a charge-of-the-light-brigade impulse on progressive energy/climate goals, and they joyfully accept the implementation lead on OPG’s (other people’s goals) like COP21 (World Climate Summit/Paris Climate Conference).
   3. But even on most local jurisdictions, they ultimately are policy-takers (e.g., building codes).  Sure, lots of discretion in Am federalism, and best policy-maker opportunities are on the many forms of energy waste.
   4. Many cities including Philadelphia have done feasibility studies on meeting the goal of 80% reduction in carbon/greenhouse gas emissions.  How many mayors have you heard say it’s their goal to be the greenest city in America?  Ultimately, the better local/regional question is not about feasibility but about optimality.  Not about “can we”  but rather needs to be about “should we” direct limited municipal resources and time toward achieving these goals, which are largely reliant on activities out of municipal control?
   5. Mitigation is out of date; adaptation is the real key to success.
   6. The Clean Power Plan statement of “reduce green house gas emissions by 32%” is not a goal, it’s a projection.  It’s about reducing air pollution without unduly burdening industry.  The EPA allows regions to do what they want to meet goals.
3. What challenges and opportunities are presented by the Marcellus and Utica shale resources?
   1. Surveyors, Civil Engineers, Earthwork Contractors, Pipe Fitters and Tree Removal Services have been involved in the Gas Pipeline distribution.
   2. Right of Way (ROW) permitting has been a challenge.
   3. Senator Dinniman and Senator Rafferty have proposed legislation to register land brokers, in the same way realtors are registered with the state, to help improve ROW communication.
   4. Energy shopping and negotiations for large energy users are opportunities, because prices have dropped.
4. Can the Energy Hub vision and the Renewables Revolution co-exist? YES
   1. Energy waste can be a huge contribution toward meeting the Clean Power Plan’s goal of reducing green house gas emissions by 32%.  Albeit, the energy efficiency building block was removed from the Clean Power Plan, energy waste and energy efficiency remain a huge contribution to meeting the goal.  And yet, fossil fuel costs are dropping which makes alternatives more challenging.  And fossil fuels will likely continue to remain low cost.
   2. The 1^st best solution is a revenue neutral cost on carbon emissions, but that’s unlikely to be successful, so we need to look at the 2^nd best solutions that are more practical and are able to be implemented and controlled regionally.  One of those is to create club like mechanisms to achieve real changes.
   3. Is there a way to have clean energy that’s also affordable?  Is the infrastructure set up for people to really take advantage of incentives?  Finding passion for alternatives is challenging as cost of gas and oil reduces.  It’s really a long term story about efficiency of renewables.  Much like the challenge of not making food prices higher.
   4. Call to action:  Businesses must and will find a way to drive costs down and reinvest their savings in energy today toward renewable energy options for the future.
5. Can public support for clean energy and the public demand for inexpensive energy both be met?   YES
   1. Are we too late?  No.  There is still time to make it better, or at least “less worse”
   2. Best story is always when supply = demand.  But we need to explore 2^nd best theories.  One idea shared was that there needs to be more push for taxes on things like gas to support clean energy options.
   3. The adaptation challenge has to be addressed and we need public support for it.   Just think of it . . . with the statistically proven impact on climate change, Canada will have the same climate as PA in 30-40 years if we don’t start changing.
   4. Best historical experience is back in the 1980’s with France with their nuclear energy introduction; they achieved 5% per year reduction in carbon emission!  Perhaps if we put it in the language of local health impacts vs. gas emissions or monetary impacts we can get more public support.

The Sustainable Energy Fund and West Penn Power Sustainable Energy Fund jointly launched Energy Sprout– a statewide “big idea” sustainable energy competition with over $160,000 in seed grants. Energy Sprout is open to Pennsylvania-based businesses, Pennsylvania registered non-profit organizations, local governments in Pennsylvania, and Pennsylvania residents. Winning funds must be used to start or propel a sustainable energy business venture or to support a community program/project.

For additional information, visit energysprout.org. Energy Sprout applications are due by May 3. The semi-finalists round will be held on June 16-17 and winning teams will advance to the finalists round in July 28. The finalists round will be part of the Energypath 2016, which will be held at the Penn Stater Conference Center and Hotel on July 28, 2016.

By Paul D. Spiegel, P.E., LEED AP, President, Practical Energy Solutions

Does this sound familiar? It’s been 17 years since your rooftop HVAC units were installed, and it seems that you are spending more on repairs every month than you are on the energy costs to run the entire building for the month.

So you call in your HVAC maintenance contractor to give you a price for an “in-kind” replacement of everything that you have on the roof of your building. He/she comes back with a proposal for a one-for-one replacement, let’s say brand new packaged gas powered heating and electric cooling rooftop units, the exact same size as your older units, and higher in energy efficiency allowing you to save 5% to 6% on your energy costs.

You may be missing an opportunity to improve the energy performance of your building, increase the net asset value of your building, reduce maintenance costs for your HVAC (and your roof), and significantly extend the service life of your HVAC equipment, meaning that rather than being back at the same point in 15 years buying the next replacement, you could stretch that to 25 or 30 years.

This is a common issue in building construction, maintenance, and renovation/repair, where different options are considered and decisions are based only, or primarily, on first cost, and not the overall life cycle cost of your equipment. Life Cycle Cost Analysis (LCA) evaluates all of the costs associated with each of your options, including first cost, and the present value of future maintenance costs and energy savings, the years of service that you’ll get, and the replacement cost. Often what seems to be the more expensive option is actually the best financial choice

A case study: a client with a multi-story office building. The client had a building that was heated and cooled with 42 air source heat pumps which were nearly 20 years old, many of which were split systems that had units on the low roof area where they were exposed to the elements. Maintenance issues kept the facilities staff busy on one unit or another almost every day, and it was time to make an investment in replacement units. The rough quote from their HVAC Contractor was approximately $1.4 million. The building owner hired Practical Energy Solutions to calculate any energy savings based on the quote received, and to explore other options. Due to the improved efficiency of new units as compared to 20 year old units, they were likely to save over $100,000 per year in energy costs, or about 15% of their HVAC energy costs. If they financed 100% of the cost over 15 years, the project would break even over the 15-year loan term, at which time they would likely be shopping for new heat pumps again!

Another Option: Due to space that they had available in the basement, it was determined that a central dual temperature hydronic system could be installed in phases and be used to replace the existing heat pump system. Benefits included higher energy savings (32% instead of 15%), longer service life of the equipment, extended service life of the roof where rooftop units had been operating, reduced noise in the tenant spaces where the heat pumps were located, recovery of the heat pump closets as useable (rentable!) space, and a project that had a net positive cash flow of over $500,000 during the 15 year life of the loan. Although the initial cost was higher, nearly 100% of the project cost could be financed, and the monthly energy savings were higher than the monthly loan payments for the financing – cash flow positive from day 1, and a system that is likely to last over 25 years, and with one central chiller and one central boiler to maintain and keep parts for, and significantly reduced maintenance costs.

The moral of the story is that while an in-kind replacement can appear to be the simplest solution, you should always look at the total life cycle cost of one or two other options that can have a greater positive impact!

Over the past fours years, the Coatesville Solar Initiative has been working to bring awareness in renewable energy to local school districts, specifically the Coatesville Area School District. The Coatesville Solar Initiative team has developed a project that will NetZero the high school and is currently under review by the school board.  This project will provide expanded math and science curriculum and inspire students with the STEM technology of the future, all while saving money and helping the environment.

As part of the initiative, the team is requesting support through an online petition. To view the petition, please follow the link below. https://www.change.org/p/community-support-solar-power-coatesville-schools

For more information on the Coatesville Solar Initiative, visit http://www.gogreencsi.com/.