Grantee Questions:

We recently received two separate questions from grantees regarding energy audits and we would like to open a discussion through our blog and hear from others on these two subjects.

Q1 - Grantees in the North-Central would like to see an Energy Audit Checklist that has been successfully used by EECBG grantees implementing ARRA projects.  Are there sample checklists that have worked for other grantees implementing ARRA funded audit projects?

Q2 - South Carolina is in the process of implementing a technical assistance program for commercial and institutional customers. South Carolina asks “…we are trying to track down what would be considered to be reasonable energy audit costs (Level 2 or 3 audits) on a square foot basis, if possible.  Our energy assessment (Level 1 audit) costs have been in the range of from $0.03/sq ft to $0.15/sq ft.  Any info or leads would be great.”

If you have comments or data that you wish to share on energy audit costs and/or checklists, or are also looking for similar information, please comment below.

Grantee from Tennessee Responds: Here is the information I have that answers these questions: TN Grantee Energy Audit Information.pdf (74.63 kb). Included in this document is a copy of the pricing for our energy audit from the selected firm as well as a summary table for the audit results.  You will see that in pricing the project, the selected firm had varying per sq. foot prices for each building based primarily on the building characteristics. Note: most of the other firms that submitted proposals had a flat per sq. foot price that ranged from $0.19 to $0.22.

For the audit checklist, ASHRAE has a pretty good publication entitled “Procedures for Commercial Building Energy Audits” that has a lot of forms, lists, etc.  We purchased a copy off the ASHRAE website and it helped in developing our RFP. Here is a link to that publication - http://www.techstreet.com/cgi-bin/detail?product_id=1703613.

TAP team responds:  According to the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE), the three levels of audits are as follows:

Level 1: Walk-through Assessment: energy bills are analyzed and, possibly, a brief visual survey of the facility is conducted. The subsequent report identifies no-cost and low-cost opportunities. This is the least costly of the three levels.
Level 2: Energy Survey and Analysis: a more detailed analysis is conducted, including a breakdown of how energy is used within the building. Recommendations consider an owner's operations and maintenance, constraints, and economic criteria. Potential capital-intensive opportunities are identified in the final report for further research and analysis. This is the typical level of audit.
Level 3: Detailed Analysis of Capital-Intensive Modifications (Investment-grade Audit): this analysis focuses on capital-intensive opportunities and provides a higher degree of monitoring, data collection, and engineering analysis. The report includes detailed cost and savings information with a high-level of confidence sufficient for major capital investment decisions, and may include a reasonable timeline for implementation of each recommendation.

http://www.fypower.org/bpg/module.html?b=offices&m=Planning_an_Energy_Program&s=Energy_Audits

Level 1 walkthrough audits can be a good first step, being a quick and low-cost way of identifying easily implementable energy reduction options.   While Level 1 walkthrough audits are not expensive, they usually deliver smaller energy savings and can provide insufficient detail to implement fully-effective measures.  It is important that the auditors are clear in advance what their goals are, however it is still possible to miss energy saving opportunities.  Level 2 and 3 energy audits are more comprehensive and usually result in greater identified energy savings, but require more skill on the part of the auditor and are both time consuming and more expensive to complete.  In particular, it can sometimes be a challenge to conduct cost-effective Level 2 and 3 audits on smaller commercial and institutional buildings (under 10,000 sq ft), measured against the capital costs of implementing the identified measures.  For larger buildings, associated economies of scale play a big role in making the audits cost-effective.

Grantees may want to consider putting caps on the cost of Level 2 and 3 energy audits, to ensure they are reasonable and cost-effective.  The State of Texas, for example, has established maximum energy costs for Level 1 energy audits at $200 plus $0.25/sq ft, and Level 2 at $200 plus $0.35/sq ft of the building space being audited.   In another effort to control costs, some states  provide only a portion of the energy audit costs in the form of financial incentives (i.e.,  50% to an upset maximum for a building or multi-building facility).

If you have comments or data that you wish to share on energy audit costs and/or checklists, or are also looking for similar information, please comment below.

Content for this blog post courtesy of Brian Henderson, Southeast Regional Coordinator, NASEO & Zach Abrams, North Central Regional Coordinator, ICF International.