1 New Construction Partner OrientationNovember 2015 Pay for Performance New Construction Partner Orientation

2 Agenda Introduction Program Overview & General RequirementsNovember 2015 Agenda Introduction Program Overview & General Requirements Proposed Energy Reduction Plan Development Building Simulation Installation/As-Built ERP Commissioning Post-Construction Performance Conclusion & Next Steps 2

3 November 2015 Program Introduction

4 Players New Jersey Board of Public Utilities (BPU)November 2015 Players New Jersey Board of Public Utilities (BPU) Office of Clean Energy (OCE) Overall Program Management TRC C&I Program design, management and reporting Partners Energy efficiency market players Participants Owners, developers, managers

5 Who is NJ BPU & OCE? New Jersey Board of Public Utilities (BPU)November 2015 Who is NJ BPU & OCE? New Jersey Board of Public Utilities (BPU) State agency with authority to oversee the regulated utilities, which in turn provide critical services such as natural gas, electricity, water, telecommunications and cable television. Office of Clean Energy (OCE) Established in 2003 to provide oversight and delivery of energy efficiency & renewable energy programs New Jersey's Clean Energy Program (NJCEP) Combination of renewable, residential and C&I incentive based programs to deliver energy reductions in attainment of NJ Energy Master Plan Funded through Societal Benefits Charge

6 Who is TRC? Commercial & Industrial Program ManagerNovember 2015 Who is TRC? Commercial & Industrial Program Manager Design and management of programs Intake and qualification of applications/projects Incentive determination and payment Engineering reviews Customer support Contractor/partner management Outreach Mention transition

7 Partners Program Participants must work with PartnerNovember 2015 Partners Program Participants must work with Partner Partners can bring Participants into the Program NJCEP website provides Partner List to interested Participants Partners will: Continue to develop and strengthen market-based relationships Act as the building owner’s energy professional Promote the Program Grow their business No contract between Partners and Program; remediation procedures apply.

8 NJCEP C&I Portfolio Benchmarking (no-cost)November 2015 NJCEP C&I Portfolio Benchmarking (no-cost) SmartStart (prescriptive & custom) both retrofit and new const. Local Government Energy Audit Program (LGEA) Direct Install (DI) Large Energy Users Program (LEUP) Pay for Performance (P4P) Existing Buildings New Construction

9 November 2015 NJCEP C&I Portfolio Restrictions on applying to other programs when enrolled in Pay for Performance Programs budgets are established for 12 months beginning July 1st through June 30th Final program filings (details) can be found here:

10 What is the Pay for Performance Program?November 2015 Encourage projects within the Commercial and Industrial (C&I) sector to design beyond code Provides incentives based on a comprehensive, whole-building approach Leverage existing market players (partners) for program delivery and ease or participation Align with LEED, ASHRAE, & ENERGY STAR® Raises the bar, the more you save the more we pay!

11 November 2015 How the Program Works Step-by-Step Overview for Partners Program Guidelines Section 2

12 Overview Submittal and Approval of P4P NC ApplicationNovember 2015 Overview Submittal and Approval of P4P NC Application Development and Approval of Proposed ERP Installation and Commissioning of All Recommended Measures Development and Approval of As-Built ERP Submittal and Approval of As-Built ERP and Cx Report Commissioning Post Construction Benchmarking

13 Step 1 - Establish EligibilityNovember 2015 Step 1 - Establish Eligibility Located in New Jersey Pays/will pay Societal Benefits Charge (“SBC”) Customer/future customer of one of the seven investor-owned electric and/or gas utilities

14 Step 1 - Establish EligibilityNovember 2015 Step 1 - Establish Eligibility New Construction or Substantial Renovation Substantial renovation includes: Change of use and reconstruction of an existing building; Construction work of a nature requiring that the building or space within be out of service for at least 30 consecutive days; OR Reconstruction of a vacant structure. At least 50,000 square feet of planned conditioned space One building Exceptions made for multi-building complexes, part of single project and designed/built at the same time Baseline utility bills not available or not relevant

15 Step 1 - Establish EligibilityNovember 2015 Step 1 - Establish Eligibility Meets minimum scope of work: Minimum Performance Target of 5% energy cost savings for commercial and industrial buildings and 15% for multifamily buildings compared to ASHRAE baseline. At least 50% of energy cost reduction must come from electricity and/or natural gas utilities which pay into SBC, or minimum 100,000 kWh or 2,000 therms savings. At least one measure addressing each of the following building components: envelope, heating, cooling, and lighting. Discuss code changes here!

16 Step 1 - Establish Eligibility MultifamilyNovember 2015 Must be 7 stories or higher Low and mid-rise directed to Multifamily High Rise Program, or ENERGY STAR Homes (Residential Program Portfolio). Hotels/motels are treated as commercial.

17 Step 1 - Establish Eligibility Core & Shell / TenantNovember 2015 P4P NC project cannot also submit applications to other programs. Exceptions may apply for eligible Core & Shell and Tenant fit-out projects. See Program Guidelines

18 Step 2 – Submit ApplicationNovember 2015 Step 2 – Submit Application Submit completed P4P New Construction Application to TRC As early in the project as possible GET APPROVED! (~2 weeks)

19 Step 3 – Develop Proposed ERPNovember 2015 Step 3 – Develop Proposed ERP Develop Proposed Energy Reduction Plan Within 6 months of application approval; one 6-month extension available. Includes: Reviewing existing plans and design alternatives to meet Minimum Performance Target Developing energy model Determining measure Incremental Cost Engaging Commissioning Authority (CxA) and completing Cx Plan Completing program Energy Reduction Plan Tables and submitting to program for review.

20 ERP Review Schedule ERP Rev0 averages 2-3 weeks in review.November 2015 ERP Review Schedule ERP Rev0 averages 2-3 weeks in review. Subsequent Revisions average 1-2 weeks. ERPs with total Incentive >$500,000 must receive final approval by Board of Public Utilities on monthly meeting--- may add 4+ weeks to approval depending on BPU schedule.

21 November 2015 Step 4 – Construction Following Proposed ERP approval projects may begin installation of measures. Note: Projects may apply to the program at any point up to and during the Design Development phase. Projects that are in the Construction Document phase and/or have begun construction may still apply to the program so long as measure equipment has not been procured prior to receipt of the Initial Application. Any measures installed prior to approval of the Proposed ERP are done so at the project’s own risk. Pre-construction inspections are generally not performed. In the event that the equipment selected does not qualify for an incentive, it will be removed from the Proposed ERP and no incentives will be paid for that equipment.

22 November 2015 Pre-Design Bonus Projects that submit an Initial Application early in the project planning may qualify for the Pre-Design Incentive #1 bonus Submitted after Application approval but prior to the Proposed Energy Reduction Plan. Pre-inspections may be performed in these cases. Projects in the construction document phase are not eligible for Pre-Design bonus incentives.

23 November 2015 Step 4 – Construction Ensure that recommended measures in proposed design are accurately reflected in construction documents and bid packages Receive and regularly review field reports to remain aware of all changes. Update the proposed design model to reflect any changes in installed measures or costs to inform developer of impact on performance target or cost-effectiveness

24 Step 5 – As-Built ERP & Cx ReportNovember 2015 Step 5 – As-Built ERP & Cx Report Develop As-Built Energy Reduction Plan Submitted upon construction completion or within 12 months of Proposed ERP approval; two 6-month extensions available. Includes: Incorporating changes that occurred during construction As-built costs, supporting invoices Current utility bill(s) Completing Commissioning Report with no significant outstanding issues. Updating Energy Reduction Plan Tables and submitting to program for review. Must still show achievement of Minimum Performance Target via eligible measures Post-construction inspection will be completed at this time

25 Step 6 – Building PerformanceNovember 2015 Step 6 – Building Performance Post-Construction Benchmark Submitted within 15 months of As-Built ERP approval; two 6-month extensions available. Includes: Collecting supporting utility bills ENERGY STAR Portfolio Manager Benchmark based on 12 months of operational utility data Submitting to program for review. Must still show achievement of Minimum Performance Target via eligible measures

26 November 2015 Incentives Incentive #1 is contingent on project moving forward with construction!

27 Incentives High energy intensity facilities are defined as:November 2015 Incentives High energy intensity facilities are defined as: Facilities where manufacturing and/or processing load use is equal to or greater than 50% of the total energy cost at the building/site. E.g. manufacturing, pharmaceutical, chemical, refinery, packaging, food/beverage, data center, transportation, mining/mineral, paper/pulp, and biotechnology. Hospitals 50% or more of the gross floor area is used for general medical and surgical services and 50% or more of the licensed beds provide acute care services.

28 Incentive Caps Incentives will be capped at the lesser of:November 2015 Incentive Caps Incentives will be capped at the lesser of: 100% of total project incremental cost (combined Incentives #2 and #3) Lesser of estimated cost (Proposed ERP) or actual cost (AsBuilt ERP) $1 million per electric and gas account Not to exceed $2 million per project $4 million per Entity in any one program fiscal year $2MILL assumes both electric and gas measures Combination of P4P Program incentives and all other funding, inclusive of other incentives and grants, cannot exceed 100% of project cost.

29 November 2015 Incentive Cash Flow

30 Participant vs. RatepayerNovember 2015 Participant vs. Ratepayer Entity whose name is on utility bill Pays into SBC Eligible for program incentives May be developer, building owner, or tenant* *Multi-family: Ratepayer is building-owner/manager, not individual tenant Entity funding project Entity who is listed as the customer on program forms/docs If Participant entity is different from that of the Ratepayer, a supplemental formal memo from the Ratepayer must be supplied. Ratepayer Participant

31 November 2015 Incentives Incentives are processed for payment upon receipt of supplementary documents: Request for Incentive form signed by Participant and Partner Tax Clearance Certificate from NJ Division of Taxation Incentives take the form of checks, which are mailed to the Participant $2MILL assumes both electric and gas measures

32 Submittal Procedures Submittals shall be sent to [email protected]November 2015 Submittal Procedures Submittals shall be sent to All s must contain Application Number (except new applications), Project Name, and Revision Number in the subject line Partners may resubmittals/revisions directly to assigned reviewer but must CC above Sub-consultants must CC Partner of record on all correspondence Revisions must be submitted within thirty (30) days from the date Program Manager provides comments. May also FTP/sharepoint locations which we can access if permitted.

33 Program Tools All projects must use required tools: ERP Excel TablesNovember 2015 Program Tools All projects must use required tools: ERP Excel Tables ERP Template CxPlan Template ASHRAE and User’s Manual (not provided) Compliant simulation software (not provided) Also need: Standard 90.1 Appendix G 2013 Performance Rating Method Excerpt from ANSI/ASHRAE/IES Standard (I-P) - ASHRAE bEQ As-Designed Workbook - COMNET Appendix B and Appendix C - Standard weather file

34 November 2015 Program Guidelines Not all details covered in orientation, review Program Guidelines v4.0.

35 November 2015 Questions

36 November 2015 Proposed Energy Reduction Plan Development Program Guidelines Section 3 Overview

37 Program Guidelines – Section 3.2Pre-Design Bonus Program Guidelines – Section 3.2

38 November 2015 Goal Incentivize applicants to critically think about building energy efficiency early in design where changes are easier to make. Aligns with LEED BD+C: New Construction, v4 - LEED v4 Integrative process 38

39 Eligibility Application must be submitted while project is still in pre-design or schematic design. Partner must work with applicant from pre-design through to the design phase. Perform preliminary “simple box” energy modeling analysis that explores how to reduce energy loads E.g. orientation, shape, window:wall, HVAC systems Provide report/documentation on analysis and how it informed design decisions Submitted prior to Proposed ERP, pre-inspection may be done. 39

40 Proposed Energy Reduction PlanProgram Guidelines – Section 3.2

41 Proposed Energy Reduction PlanNovember 2015 Proposed Energy Reduction Plan “Roadmap” for comprehensive energy improvements: Project Description Recommended Energy Efficiency Measures Description, incremental costs, baseline and proposed simulation results, energy cost savings. Financing Plan Implementation Plan/Schedule Commissioning Plan

42 Minimum Performance TargetProgram Guidelines – Section 3.3

43 Minimum Performance TargetPropose Design Savings compared to ASHRAE : 5% energy cost savings for commercial and industrial buildings 15% for multifamily buildings Two modeling compliance paths that equate above to: Performance Score - ASHRAE Building Energy Quotient (bEQ) As-Designed path Performance Cost Index – ASHRAE Appendix G path 43

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47 November 2015

48 Program Guidelines – Section 3.4Measure Requirements Program Guidelines – Section 3.4

49 Project Requirements Envelope Heating Cooling LightingNovember 2015 Project Requirements Each project must have at least one measure addressing each of the following building components: Envelope Heating Cooling Lighting Exceptions may be available for projects without heating or cooling end uses, or for envelope gut rehab Additional considerations regarding envelope will measures will be considered case by case for gut rehab that are not proposing envelope improvements. 49

50 November 2015 Measure Definition Measures are defined as components that exceed ASHRAE requirements, and Comply with Program Guidelines Appendix B (Minimum Performance Standards), where applicable: E.g. LED fixtures must be new and ENERGY STAR or DLC qualified 50

51 HVAC Exception – Appendix G PathNovember 2015 HVAC Exception – Appendix G Path Proposed HVAC system type that differs from ASHRAE Appendix G system type may be considered a measure, assuming that: proposed system type is an improvement over the baseline system type and is not otherwise an energy penalty. E.g. proposed energy efficient chiller vs. baseline DX cooling proposed HVAC system type exceeds ASHRAE requirements

52 Non-Eligible MeasuresNovember 2015 Non-Eligible Measures On-site renewable energy generating equipment (e.g. PV panels, wind turbines, etc.) CHP or fuel cells Sub-metering Monitoring equipment Power factor correction equipment Permafrost/refrigerant additives Non-permanent measure (e.g. removal of misc. plug loads) Emerging technologies without third-party verification If pursued outside of program must be separately metered! Obviously measures that meet or are below code do not qualify. Additionally… Separate program for CHP/FC and SRECs

53 November 2015 Partner must ensure that all performance assumptions made in the simulation and reflected in the ERP are translated into bid and construction documents.

54 Incremental Cost GuidelinesProgram Guidelines – Section 3.5

55 November 2015 Incremental Cost Incremental Cost: The difference in labor and/or material costs between the proposed equipment (Energy Efficiency Measure) and its respective baseline component, whose specifications only meet ASHRAE

56 Incremental Cost RulesNovember 2015 Incremental Cost Rules If an EEM results in positive cost savings, but the cost is determined to be less than its respective baseline component’s cost, then the incremental cost will be a negative value; this negative cost shall be included in the ERP tables. If an EEM results in negative cost savings (energy penalty), the incremental cost shall be set to zero dollars ($0). Projects that follow the Appendix G modeling compliance path will be modeling EEMs relative to an ASHRAE baseline. Therefore, it may occur that certain measures exceed the ASHRAE baseline, but do not exceed the ASHRAE baseline. In such cases the incremental cost shall be set to zero dollars ($0).

57 Incremental Cost RulesNovember 2015 Incremental Cost Rules Quality level of the baseline component should match the quality level that the developer chooses for the proposed design. If the project delivery method for a project is a guaranteed maximum price bid, all incremental costs must still be determined for each EEM in the project. Sales tax shall be excluded from baseline and proposed costs. Total incremental project cost may include materials, labor, design fees, construction management fees, and Partner fees. Prevailing wage applies.

58 HVAC Exception – Appendix G PathNovember 2015 HVAC Exception – Appendix G Path For projects whose proposed HVAC system type is different from the ASHRAE Appendix G system type, incremental cost should be the difference between proposed system type and baseline system type meeting ASHRAE efficiency requirements. This assumes that the proposed system type is: An improvement over the baseline system type and is not otherwise an energy penalty E.g. proposed energy efficient chiller vs. baseline DX cooling Exceeds minimum efficiency requirements of for the proposed system E.g. proposed chiller exceeds minimum requirements for chillers

59 November 2015 Cost Estimating First, determine all building components associated with EEM that would differ from baseline. Example: Wall insulation Case 1- Proposed design includes better insulation; difference from baseline is cost of insulation only. Case 2- Proposed design includes different wall type completely; difference from baseline is entire cost of wall construction, including insulation. For example, if an EEM specifies that R-35 continuous roof insulation be installed in the proposed design, the only difference between the proposed and baseline would be the insulation cost itself. The baseline cost would include the cost of the insulation that meets ASHRAE requirements (R-30)., and the proposed cost would include the cost of the actual specified insulation.

60 Cost Estimating Second, determine cost estimation method:November 2015 Cost Estimating Second, determine cost estimation method: Manual (RS Means) Vendor Quotes Design Team Calculations Online Pricing

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62 November 2015 Column T - Appendix G Projects Only: Enter the corresponding ASHRAE Prescriptive Baseline Components in Columns U ("Component Description"), V ("Baseline Cost"), and W ("Cost Source"). The components described here and associated costs must correspond to systems and efficiencies listed in ASHRAE Sections 5.5, 6.5, 7.5, 8.5, 9.5, and 9.6 rather than Appendix G. To determine baseline costs for HVAC system improvements, the baseline system type shall be identical to the Appendix G (i.e. the only difference between Appendix G system and ASHRAE system should be system efficiency). See Program Guidelines v4.0, Section The corresponding Appendix G component must be entered in column T ("Appendix G Baseline Component"). Baseline costs shall not be established for Appendix G components. For example, the Appendix G baseline for a roof in Climate Zone 4 is U This description of this component is entered in column T ("Appendix G Baseline Component"). The ASHRAE prescriptive requirement for a roof is U The U roof would be described in columns U, V, and W. The baseline cost would correspond to the U roof.

63 Program Guidelines – Section 3.6Financing Plan Program Guidelines – Section 3.6

64 Financing Plan ObjectiveNovember 2015 Financing Plan Objective Clearly present how project is to be funded Estimated total construction cost of Proposed measures Partner Fees Pay for Performance Program Incentives Verify that incentives do not exceed caps Verify project is not “double-dipping” (measures cannot be funded through multiple SBC programs)

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66 Installation ScheduleProgram Guidelines – Section 3.7

67 Implementation Plan ObjectiveNovember 2015 Implementation Plan Objective Provide description of proposed construction schedule

68 Discussed in Commissioning Portion of PresentationNovember 2015 Commissioning Plan Discussed in Commissioning Portion of Presentation

69 November 2015 Questions

70 Simulation Guidelines Program Guidelines Section 4November 2015 Simulation Guidelines Program Guidelines Section 4

71 November 2015 Overview Simulation Guidelines (SG) describe analysis methodology that must be used to demonstrate achievement of the Performance Target Minimum Performance Target is 5% energy cost savings for commercial and industrial buildings and 15% for multifamily buildings compared to ASHRAE baseline. Projects may follow ASHRAE Building Energy Quotient As Designed (bEQ), or ASHRAE Appendix G with Addendum BM (Appendix G) paths to demonstrate achievement of the Performance Target. The Minimum Performance Target is 5% energy cost savings for commercial and industrial buildings and 15% for multifamily buildings compared to ASHRAE baseline. Depending on the compliance path selected, achievement of the Minimum Performance Target may be demonstrated by following ASHRAE Building Energy Quotient (bEQ) As-designed or ASHRAE Appendix G with Addendum BM package (90.1 Appendix G). Reference Section 4 for simulation guidelines. Projects that cannot identify efficiency improvements that meet this minimum target will be referred to the appropriate NJ SmartStart Buildings Program(s). The Minimum Performance Target is based on reducing the total energy use for the facility where electricity and/or natural gas is purchased and/or delivered by a New Jersey Investor-Owned Utility (IOU). For projects with non-IOU fuel sources at least 50% of the energy cost reduction must come from an IOU, or 100,000 kWh or 2,000 Therms whichever is greater.

72 November 2015 Objectives Facilitate consistency of the analysis among different projects and modelers Establish modeling protocols for measures Articulate areas where P4P simulation requirements differ from the adopted national protocols Ensure that modeling drives the energy-efficient design

73 Software RequirementsNovember 2015 Software Requirements Energy simulation software must comply with ASHRAE 90.1 – 2013 Appendix G Section G2.2 and SG eQUEST Trane Trace HAP DOE2.1 EnergyPlus Approval for use in LEED and Federal Tax Deductions for Commercial Buildings program may serve as the proxy Other tools complaint with 90.1 may be allowed with the prior approval from the Program Manager. Approval of a tool: Submit Modeling Software Application to the Program Manager Based on the review, the tool may be accepted for use on pilot projects After successful completion of the pilot project(s), the tool will be included in the list of approved software

74 November 2015 External Calculation External Calculations involve estimating energy savings outside of the approved simulation tool Allowed only if the approved simulation tool cannot adequately model a design, material, or device Must be pre-approved by the Program Manager Require detailed documentation Savings obtained via External Calculations cannot exceed 3% of the source energy of the proposed design Vendor-supplied and proprietary tools that were not peer-reviewed cannot be used

75 ASHRAE bEQ vs 90.1 Appendix GNovember 2015 ASHRAE bEQ vs 90.1 Appendix G Chose Path ASHRAE Building Energy Quotient As-Designed + P4P SG Develop bEQ Proposed Design Model Enter the Proposed energy use into bEQ Workbook and ERP to verify performance target is met Model and enter ECMs into ERP ASHRAE Standard with Addendum BM Package + P4P SG Develop ASHRAE 2004 Baseline Model Develop Proposed Design Model Enter the Baseline and Proposed energy use into ERP to verify performance target is met Identify and enter ECMs into ERP

76 Performance Score = (EUIstandard / EUImedian) x 100November 2015 ASHRAE bEQ As-Designed Path Performance Score = (EUIstandard / EUImedian) x 100 EUIstandard - Proposed design modeled under prescribed (standard) operating conditions. EUImedian - National median EUI for project building type based on ASHRAE Standard 100 and calculated in bEQ Workbook.

77 November 2015 bEQ Supporting Files The files must be downloaded from the Partner Portal

78 November 2015 Building types tab of ASHRAE Beq Workbook contains a list of building types eligible for this path. With exception of hospitals, bEQ path does not support high energy intensity facilities.

79 November 2015 bEQ Modeling Rules Modeling rules are described in bEQ Workbook, amended by SG Only the Proposed Design must be modeled (no baseline!) Similar to Appendix G Proposed Design, but with the prescribed operating conditions.

80 November 2015 COMNET Appendices

81 November 2015 COMNET Appendix B: Modeling Data bEQ Tab

82 November 2015 COMNET Appendix C: Schedules

83 bEQ Documentation RequirementsNovember 2015 bEQ Documentation Requirements bEQ As-Designed Workbook Form 1, Form 2, and Multiple Use Worksheet tab (if applicable) ERP Tables LEED tabs for the proposed design only (no baseline) All other P4P (non-LEED) ERP tabs EUI median from bEQ As Designed Workbook must be manually entered into ‘P4P – Measure Simulation’ tab of the ERP Tables to determine the project’s Performance Score and Incentive Tier.

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86 November 2015 Questions

87 ASHRAE 90.1 Appendix G with Addendum BM Package (App G)November 2015 ASHRAE 90.1 Appendix G with Addendum BM Package (App G) Proposed Design Baseline Design 2013+ BM Package

88 November 2015 Required Documents Explain addendum BM?

89 App G Performance Cost IndexNovember 2015 App G Performance Cost Index Baseline performance is approximately equivalent to design compliant with ASHRAE 90.1 – 2004, and has PCI =1.0 Net Zero building has PCI= 0.0

90 November 2015 App G PCI Targets ERP Tables calculate the minimum PCI to align with the incentive structure for different building types Methodology based on PNNL’s “Developing Performance Cost Index Targets for ASHRAE Standard 90.1 Appendix G – Performance Rating Method” from March 2016

91 App G: Operating Conditions and Unregulated LoadsNovember 2015 App G: Operating Conditions and Unregulated Loads Unless project-specific values are known, operating conditions (such as service water heating load, plug loads, etc.) and schedules (such as lighting runtime hours, occupancy hours, etc.) must be identical in the baseline and proposed designs and based on either of the following: ASHRAE User Manual Tables G-D through G-M COMNET Appendices B & C (as used for bEQ Path) ENERGY STAR Multifamily High Rise Simulation Guidelines

92 November 2015 Energy Rates Minimum Performance Target is measured in energy cost ($) savings = energy rates are important! Energy rates can be obtained from: Local utility Most recent average rates for the applicable rate class and location from DOE Energy Information Administration (www.eia.doe.gov) COMNET MGP Tables for climate zones 4A or 5A Energy cost reduction due to decrease or shift in peak demand in the Proposed design compared to the Baseline may contribute to the performance rating if local utility rates include demand and/or time of use charges.

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94 Post-2007 Changes to ASHRAE 90.1November 2015 Post-2007 Changes to ASHRAE 90.1 Significant changes from to , and to Appendix G Addendum BM package Few highlights: Baseline performance is aligned with ~ All projects in NJ climate zones have fossil fuel heating in the baseline Baseline service water heating fuel depends on the proposed building type instead of the proposed service water heating fuel Fixed baseline window area dependent on proposed building type Added requirements for refrigerated cases Added requirements for distribution transformers Prescribed infiltration rates and opportunity for air-tightening credit Penalty for over-ventilation Etc…

95 Choosing Compliance PathbEQ path is simpler, does not require creating Appendix G baseline May qualify for a free ASHRAE bEQ As-Designed Label ASHRAE bEQ Path does not support “high energy intensity” facilities (except hospitals) App G path largely aligned with LEED v4 pilot Minimum Energy Performance Prerequisite Optimize Energy Performance Credit (former EAp2 and EAc1) GBCI will accept filled out ERP tables in lieu of LEED template for this prerequisite and credit ASHRAE bEQ Path Appendix G Path 95

96 November 2015 Questions

97 Simulating Measure-Level Savings: General GuidelinesNovember 2015 Simulating Measure-Level Savings: General Guidelines Program Guidelines – Section 4.4

98 Measures Eligible for IncentivesNovember 2015 Measures Eligible for Incentives Only the measures that exceed ASHRAE requirements and meet P4P Minimum Performance Standards can contribute toward the incentive In the ‘P4P – Measure Info’ tab of the ERP Tables, identify the eligible measures by selecting “Yes” in the ‘Measure Exceeds Prescriptive or Additional Compliance Requirements?’ column. With bEQ path, only measures eligible for incentives shall be modeled, and thus all measures will have “Yes” selected. For Appendix G path, select “No” for measures that exceed Appendix G baseline, but do not exceed ASHRAE requirements.

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100 Measures Eligible for IncentivesNovember 2015 Measures Eligible for Incentives Systems that do not meet the P4P Minimum Performance Standards (Program Guidelines, Appendix B) cannot contribute toward the incentive, and must be modeled energy neutral Energy neutral systems do not need to be explicitly listed in the ERP Tables. Example: Non-ENERGY STAR / DLC LED lighting is the most common measure that does not meet MPS. Non-qualifying LED lighting cannot contribute toward savings MPS: Because the new program requires that measures need to simply exceed ASHRAE , non-ENERGY STAR / DLC LED lighting will be the most common measure that does not meet the requirements.  We require that Partners remove LED lighting that does not qualify from LPD calculations (there’s new guidance how to accomplish this in SG).  DLC CERTIFICATION IS A WAY FOR THE PROGRAM TO ENSURE THEY ARE INCENTIVIZING QUALITY LED PRODUCTS. WITH SO MANY VERSIONS ON THE MARKET, QUALITY CONTROL IS NEEDED. For ERP purposes, we require that Partners state that all lighting included in the P4P scope is ENERGY STAR / DLC listed, where applicable.  We do not require the Partners to model lighting that does not meet MPS or mention it in the ERP.  Instead, Partners usually provide supporting calculations justifying how they arrived at the P4P eligible LPD compared to actual design LPD (i.e. the lighting that is entered in the LEED template). 100

101 November 2015 Modeling Measures Measures must be modeled incrementally to account for interactivity In eQuest the “parametric runs” tool must be used where possible; In TRACE 700, the “alternatives” function must be used Measures that involve creating a new model file, such as HVAC system switch in eQUEST, must be modeled first, to simplify modeling and review. 101

102 + Modeling Measures: Measure InteractivityNovember 2015 Modeling Measures: Measure Interactivity Individual measures aggregated into a proposed work scope will often interact with each other and impact energy savings. Interactive effects will be taken into account in the building simulation Savings attributable to a package are usually less than the sum of the savings of each measure alone. +

103 Modeling Measures: Appendix G PathNovember 2015 All differences between Appendix G baseline and Proposed Design simulated incrementally as follows: Step 1 Add the first measure (M1) to the Baseline design to calculate usage of the Baseline with Measure #1. Step 2 The Baseline+M1 model is then modified to include the second measure (M2) to obtain the Baseline+M1+M2 Step 3 Repeat with the remaining measures until the model includes all the measures and is equivalent to the Proposed Design. 103

104 Modeling Measures: Appendix G Path Energy PenaltiesNovember 2015 Building components are considered to be an energy penalty when the proposed component does not result in energy cost savings compared to the baseline model. Energy Penalties must be included in the proposed model as designed, using separate parametric run(s)/alternative(s) and modeled last following all other proposed energy measures. They must also be included in the ERP Tables, organized in the order modeled (i.e. last), but should not include incremental costs. 104

105 Modeling Measures: bEQ PathNovember 2015 All eligible measures shall be modeled relative to the Proposed design, as parametric runs or alternatives downgraded to code compliant parameters as follows: Step 1 Remove the first measure (M1) from the Proposed design to calculate usage of the Proposed design without Measure #1. Step 2 The (Proposed - M1) model is then modified to exclude the second measure (M2) to obtain the Proposed – M1 – M2 Step 3 Repeat with the remaining measures until the model includes all measures that exceed mandatory or prescriptive requirements of and that meet MPS 105

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108 November 2015 Measure Granularity Multiple components or systems may be grouped and reported as a single measure provided that these components/systems belong to the same end use: Different types of lighting fixtures may be grouped Lighting and HVAC cannot Consult ERP Tables for the allowed measure types.

109 November 2015 Questions

110 Simulating Measure-Level Savings: Specific Building SystemsNovember 2015 Simulating Measure-Level Savings: Specific Building Systems Program Guidelines – Section 4.5

111 Systems Included in Energy ModelNovember 2015 Systems Included in Energy Model Proposed design model shall include all systems within and associated with the building project Baseline model (for App G Path only) shall include all systems within and associated with the building project must not include end uses that do not exist in the Proposed building

112 Major Renovation ProjectsNovember 2015 Major Renovation Projects With both bEQ and Appendix G paths, existing conditions are irrelevant for establishing measure savings, not even for the envelope (this is new in ). Exception: Area of the existing fenestration

113 Building Envelope: Opaque AssembliesNovember 2015 Building Envelope: Opaque Assemblies To demonstrate that components exceed ASHRAE requirements, proposed opaque assemblies shall exceed the performance listed in Table or 5.5-5

114 Building Envelope: Opaque AssembliesNovember 2015 Building Envelope: Opaque Assemblies Thermal properties of the proposed assemblies must account for thermal bridging following 90.1 Appendix A

115 Building Envelope: Vertical FenestrationNovember 2015 Building Envelope: Vertical Fenestration Proposed fenestration must be modeled to reflect properties of the entire unit and based on NFRC rating, ASHRAE 2014 Fundamentals, or explicitly in the simulation tool, capturing both frame and glazing properties. To qualify as a measure, the proposed opaque assemblies shall exceed the performance listed in Table and Table 5.5-5

116 Building Envelope: Fenestration AreaNovember 2015 Building Envelope: Fenestration Area Fenestration improvement must be modeled based on the window area in the proposed design For Appendix G path, if the proposed window area exceeds allowances in Table G , the additional window area shall be modeled separately as an energy penalty

117 November 2015 Interior Lighting Lighting energy savings credit may be claimed only for hardwired lighting fixtures Proposed LPD must be below space-by-space or building area allowances (for the whole building). Measures related to multifamily in-unit lighting improvements must be modeled separately from other lighting (common area).

118 November 2015 Exterior Lighting Performance credit for exterior lighting is only permitted for tradable surfaces based on , Table

119 November 2015 Lighting Controls Lighting controls (other than daylighting) must be modeled by reducing proposed LPD by percentages specified in the ‘Automatic Lighting Controls’ column of the ‘bEQ’ tab of COMNET Appendix B. Only automatic lighting controls included in the proposed design but not required by Table (e.g. automatic guest room controls in hotels) may be modeled as measures ASHRAE requires daylighting in most spaces with windows. Daylighting shall be explicitly modeled in the simulation tool, or daylighting software results may be incorporated into simulation inputs. Daylighting analysis must include impact of fenestration Visible Transmittance

120 Service Water Heater: EfficiencyNovember 2015 Service Water Heater: Efficiency Proposed domestic hot water heaters must exceed the performance requirements of Table 7.8 in order to qualify as measure, based on the same DHW system type as the proposed design. For Appendix G path, the baseline hot water system type shall be determined using Table G

121 Service Water Heating DemandNovember 2015 Service Water Heating Demand For commercial buildings, hot water demand shall be based on the ‘Water Heating’ column of the ‘bEQ’ tab of COMNET’s Appendix B in conjunction with occupancy from the ‘Default Occupant Density’ column. For multifamily buildings, hot water demand shall be calculated using ENERGY STAR MFHR SG Section Performance credit may be claimed for low flow faucets and showerheads and ENERGY STAR appliances, such as clothes washers and dishwashers, that result in reduced hot water consumption.

122 November 2015 HVAC System The proposed model shall be consistent with mechanical schedules and drawings provided with the ERP To qualify for incentives, the proposed systems must exceed the minimum efficiency in Tables through for the specified system type Two options for establishing HVAC measures: Option 1: based on the proposed HVAC system type, OR Option 2: based on Appendix G baseline system type

123 for Evaluating MeasureNovember 2015 HVAC System Types for Evaluating Measure Option 1: Use Same System Type as the Proposed Design bEQ Path: model savings of the proposed HVAC system relative to a system of the same type that minimally meets efficiency requirements in Tables x Appendix G Path: establish baseline cost using a system of the same type that minimally meets efficiency requirements in Tables x Option 2: Use Same System Type as the Appendix G baseline bEQ Path: model savings of the proposed HVAC system relative to the system type prescribed in Appendix G Table G , but with the efficiency listed in Tables x. Appendix G Path: establish baseline cost using a system identical to the Appendix G baseline, but with the efficiency listed in Tables x.

124 HVAC System Types ExampleNovember 2015 HVAC System Types Example Proposed design of office building includes chillers that exceed minimum requirements of , Table The baseline system type per Appendix G is System 5 – Packaged VAV with reheat. bEQ path: Savings are modeled relative to… Appendix G path: the baseline cost must reflect… Option 1: a chiller of the same type and capacity, and efficiency per Table Option 2: a packaged DX system compliant with , Table

125 High-rise Multifamily BuildingsNovember 2015 High-rise Multifamily Buildings To claim performance credit for measures that are outside of the scope of Appendix G or ASHRAE bEQ, such as Energy Star appliances, low flow fixtures, or in-unit lighting, ENERGY STAR MFHR Simulation Guidelines must be used Spreadsheet calculations must be submitted to justify model inputs using ENERGY STAR MFHR Performance Path Calculator. 125

126 Renewable Energy and CHPNovember 2015 Renewable Energy and CHP CHP and/or On-Site Renewable Energy shall not be included in the Proposed building model. These components cannot contribute toward 15% energy target. Measures that offset consumption (e.g. Solar Thermal) are OK.

127 Refer to Simulation Guidelines for…November 2015 Refer to Simulation Guidelines for… Guidance on schedules Additional envelope, lighting, HVAC, and DHW improvements Commercial refrigeration Transformers Infiltration/Ventilation guidance Appliances Examples of modeling measures, including eQUEST tips and screenshots Projects with purchased heat and chilled water Modeling Core and Shell versus Tenant Fit-Out projects More details on the modeling rules for Appendix G path Modeling multiple buildings as a single project …and more!

128 November 2015 Questions

129 Documenting Modeling Inputs and Results in the ERPNovember 2015 Documenting Modeling Inputs and Results in the ERP Program Guidelines – Section 4.7

130 November 2015 Overview Lighting and mechanical plans and schedules must be provided and align with the ERP Tables and modeling inputs Measure descriptions in the ERP Tables shall include: Key model inputs Equipment quantity, model numbers (where available), and equipment location (where applicable)

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139 November 2015 Simulation Reports A list of required reports for all approved simulation tools to be provided with ERP can be found in the Program Guidelines

140 Model Verification StepsNovember 2015 Model Verification Steps Un-met load hours in the simulation are within the limits allowed by Section G of Appendix G (no more than 300 hour per year) Monthly load distribution is realistic Incremental savings of individual measures are realistic and impact end uses as expected Energy use intensity and heating/cooling loads are realistic Follow recommended model review process for the selected software tool

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143 November 2015 Questions

144 As-Built Energy Reduction Plan DevelopmentNovember 2015 As-Built Energy Reduction Plan Development Program Guidelines – Section 5

145 As-Built ERP ObjectivesNovember 2015 As-Built ERP Objectives Verify that the measures specified in the Proposed ERP were installed as planned Account for any changes that occurred during construction Ensure Minimum Performance Target is met

146 Partner ResponsibilitiesNovember 2015 Partner Responsibilities Ensure that all performance assumptions made in the simulation and reflected in the Proposed ERP are translated into bid and construction documents. Establish method for tracking measure costs with architect and/or contractors Periodic site visits, keep track of changes

147 Partner ResponsibilitiesNovember 2015 Partner Responsibilities Verify and/or identify any deviations from the following: EEMs installed are the same as planned, or better than in Proposed ERP Energy consumption/equipment output matches assumptions in Proposed ERP Control systems are set and functioning Measures are likely to achieve, or exceed, expected energy savings

148 Partner ResponsibilitiesNovember 2015 Partner Responsibilities For each EEM with significant changes, the As-Built ERP must include: Actual equipment specifications and operating conditions Method to update building model As-built energy savings Actual installed costs/revised incremental costs

149 Type of Changes Incremental CostNovember 2015 Type of Changes Incremental Cost Incentive caps apply to the lesser of Proposed or As-Built costs Square Footage Smaller As-Built square footage will result in reduced incentive. Larger square footage will increase incentive no more than 5% of committed. Scope of Work Reduced scope of work or ineligible installed measures may result in reduced or no incentive. Expanded scope of work may increase overall incentive subject to Program Manager approval. As-built ERP must still meet minimum performance target.

150 Supporting Documents Supporting invoices to verify as-built costsNovember 2015 Supporting Documents Supporting invoices to verify as-built costs Current utility bill for each fuel As-Built mechanical and lighting schedules Commissioning Report Post-construction inspection performed at this time Cx should be done to verify equipment is operating as expecte

151 Commissioning Guidelines Program Guidelines – Section 6November 2015 Commissioning Guidelines Program Guidelines – Section 6

152 November 2015 What is Commissioning? A systematic process, which verifies and documents the performance of new facility equipment Standard process on New Construction projects Critical to performance of building Objectives: Ensure design meets needs of the owner Ensure systems are installed and functioning per design Verify and document proper performance of equipment & systems Ensure O&M documentation is complete Ensure owner’s personnel are properly trained to operate equipment and systems Co

153 Commissioning is not just a routine site inspectionNovember 2015 Commissioning in P4P Confirms the performance assumptions of energy-efficiency measures documented in the As-Built ERP Ensures the facility achieves projected energy savings Commissioning is not just a routine site inspection

154 Commissioning in P4P Commissioning Plan included with Proposed ERPNovember 2015 Commissioning in P4P Commissioning Plan included with Proposed ERP Commissioning Report included with As-Built ERP

155 Commissioning Plan Template providedNovember 2015 Commissioning Plan Commissioning team roles and responsibilities Qualifications of selected Commissioning Authority Equipment to be commissioned Narrative of activities to be accomplished during Design Phase, Construction Phase, Start-up/Testing and Optimization Phase, Closeout Phase Proposed operation of control systems Functions to be tested Conditions under which the test shall be performed Measurable criteria for acceptable performance Method for reporting and resolving any deficiencies …and more! Template provided

156 Commissioning Team Owner/Developer P4P Partner General ContractorNovember 2015 Commissioning Team Owner/Developer P4P Partner General Contractor LEED Consultant (if applicable) Architect/Engineer Mechanical & Electrical Engineers Mechanical & Electrical Contractors EMS Controls Contractor Commissioning Authority

157 Commissioning Authority (CxA)November 2015 Commissioning Authority (CxA) Person or team with extensive commissioning, building design, and construction experience Documented experience on 2+ projects of similar scope Must be independent from the design and construction teams Shall be retained at the onset of the project-design phase Cx quals/certifications Can be Partner if proper division of independence if established.

158 Commissioning RequirementsNovember 2015 Commissioning Requirements At minimum all P4P measures must be commissioned Must observe industry best practices ASHRAE Guideline Additional Resources are listed Program Guidelines Energy Management System may serve as mean to quantify and confirm energy efficient operation via trend-logs.

159 Design Initiate meetings to discuss Cx activities, including Cx PlanNovember 2015 Design Initiate meetings to discuss Cx activities, including Cx Plan Verify assumptions used in energy savings calculations are incorporated into Cx Plan Review Cx Plan and obtain consensus

160 Construction Ensure commissioning components, specifications and responsibilities are defined and in place prior to bid and construction Construction phase scoping meeting Establish pre-testing documentation Define testing responsibilities and expectations Perform periodical checks during equipment procurement and construction to ensure equipment is installed and operating per design documents Regular meetings and job walks 160

161 Verification and TestingNovember 2015 Verification and Testing Pre-Functional Startup Functional Performance Testing Identify any discrepancies between system operation and modeling assumptions Operator Training for proper equipment operation and maintenance 161

162 Reporting Closeout meeting Training Reports/Manuals WarrantiesNovember 2015 Reporting Closeout meeting Training Reports/Manuals Warranties Plan for Addressing Issues Final Report

163 Commissioning Report Based on approved Cx PlanNovember 2015 Commissioning Report Based on approved Cx Plan Details what actually occurred during Cx process Results for pre-functional and functional performance testing Deficiency log and all corrective measures undertaken or proposed Information on warranties, location of manuals, and details on training Confirmation that Cx objectives have been achieved for both P4P program and owner

164 Building Performance Program Guidelines – Section 7November 2015 Building Performance Program Guidelines – Section 7

165 Objective Assess energy performance of project building based on first year of operation. Promote quality construction. Encourage energy efficient operation and maintenance practices. 165

166 Requirements Partner must benchmark project in ENERGY STAR Portfolio Manager and achieve ENERGY STAR Certification (score of at least 75) 166

167 Requirements Building types not eligible to receive ENERGY STAR Certification can comply by obtaining ASHRAE bEQ In-Operation Certification 167

168 Submittal 12 months of in-operation utility dataENERGY STAR or bEQ Certification Any baseline adjustments must be pre-approved by Program Manager. If performance score is not met, third incentive will not be paid. Incentive 1 and 2 will not be repossessed. 168

169 Questions

170 Partner Benefits Expand your business Qualified leadsNovember 2015 Partner Benefits Expand your business Qualified leads Marketing support Listed at No Partner, no project, no incentive

171 Next Steps Bring in ProjectsNovember 2015 Next Steps Bring in Projects TRC holds a monthly Partner conference call 4th Wednesday of every month Updates and changes to Program Questions & Technical discussions Feedback loop with our Partners Ideas about improving the Program

172 November 2015 Additional Notes Designate one P4P Contact Person within your organization Control all submissions Participate in conference calls Collect questions and inquiries for clarification Establish shared P4P folder to maintain projects/documents

173 Additional Notes Download most recent Program documents fromNovember 2015 Additional Notes Download most recent Program documents from Partner Portal: Current password: tRP47px Keep an eye out for s from “P4P” questions to Join LinkedIn Group: search for “NJ Pay for Performance Partner Network”

174 Additional Notes Dial-into Energy Efficiency Committee meetings:November 2015 Additional Notes Dial-into Energy Efficiency Committee meetings: with “CEC Committee Participation- Energy Efficiency Committee” in subject line and include your name, company or other affiliation, and address to get listserv updates. Minutes from monthly EE Committee meetings: council-committees/energy-efficiency-committee-meeting/energy- effic

175 November 2015 Final Q&A Thank you!