RGGI Eligible Sector 5: Reduction or Avoidance of CO2 Emissions from Natural Gas, Oil, or Propane End-use Combustion Due to End-use Energy Efficiency

Offset projects that reduce CO2 emissions by reducing onsite combustion of natural gas, oil, or propane for endues in an existing or new commercial or residential building by improving the energy efficiency of fuel usage and/or the energy-efficient delivery of energy services may qualify for the award of CO2 emissions offset allowances under this Subpart, provided they meet the requirements of this subdivision. Eligible new buildings are limited to new buildings that are designed to replace an existing building on the offset project site, or new buildings designed to be zero net energy buildings.

Eligibility

1. Eligible offset projects shall reduce CO2 emissions through one or more of the following energy conservation measures (ECMs):
   1. improvements in the energy efficiency of combustion equipment that provide space heating and hot water, including a reduction in fossil fuel consumption through the use of renewable energy;
   2. improvements in the efficiency of heating distribution systems, including proper sizing and commissioning of heating systems;
   3. installation or improvement of energy management systems; (d) improvement in the efficiency of hot water distribution systems and reduction in demand for hot water;
   4. measures that improve the thermal performance of the building envelope and/or reduce building envelope air leakage;
   5. measures that improve the passive solar performance of buildings and utilization of active heating systems using renewable energy; and
   6. fuel switching to a less carbon-intensive fuel for use in combustion systems, including the use of liquid or gaseous renewable fuels, provided that conversions to electricity are not eligible.
2. Performance standards.
   1. All end-use energy efficiency offset projects. All offset projects under this subdivision shall meet the applicable performance criteria set forth in this clause.
      1. Installation best practice. Any combustion equipment and related air handling equipment (HVAC systems) installed as part of an offset project shall be sized and installed in accordance with the applicable requirements and specifications outlined in this subclause.
         1. Commercial HVAC systems shall meet the applicable sizing and installation requirements of ANSI/ASHRAE/IESNA Standard 90.12004: Energy Standard for Buildings Except Low-Rise Residential Buildings and ANSI/ASHRAE Standard 62.12004: Ventilation for Acceptable Indoor Air Quality.
         2. Residential HVAC systems shall meet the applicable sizing specifications of Air Conditioner Contractors of America (ACCA) Manual J: Residential Load Calculation (Eight Edition), and the applicable installation specifications of “Specification of Energy-Efficient Installation and Maintenance Practices for Residential HVAC Systems,” Consortium for Energy Efficiency, 2000.
      2. Wholebuilding energy performance. Eligible new buildings or wholebuilding retrofits that are part of an offset project shall meet the requirements of this subclause.
         1. Commercial buildings shall exceed the energy performance requirements of ANSI/ASHRAE/IESNA Standard 90.12004: Energy Standard for Buildings Except Low-Rise Residential Buildings by 30%, with the exception of multifamily residential buildings classified as commercial by ANSI/ASHRAE/IESNA Standard 90.12004, which shall exceed these energy performance requirements by 20%.
         2. Residential buildings shall exceed the energy performance requirements of the 2004 International Energy Conservation Code by 30%.
   2. Offset projects commenced before January 1, 2009. Energy conservation measures implemented as part of an offset project commenced before January 1, 2009 shall meet the performance and prescriptive criteria set forth in this clause.
      1. Combustion equipment. Combustion equipment installed as part of an offset project commenced before January 1, 2009 shall meet the energy efficiency performance standards contained in this subclause.
         1. Commercial boilers. Commercial boilers shall meet or exceed the energy efficiency criteria in Table 1 below

      Table 1: Minimum Commercial Boiler Energy Efficiency
      Input Parameter	Measurement Unit	Frequency of Sampling	Sampling Method(s)
      Gas-fired *	125,000- 300,000	AFUE	>=88.00%
      	300,000- 12,500,000	Thermal Efficiency **	>=90.00%
      Oil-fired	>300,000	Thermal Efficiency	>=88.00%

      *Gas-fired boilers shall be installed with controls that allow the boiler to operate in condensing mode and installed with vents designed for positive vent static pressure and vent gas temperature that leads to condensate production in the vent.

      **Thermal Efficiency is defined as useful energy output (Btu) divided by energy input (Btu), and presented as a percentage. This shall be measured under steady state conditions, at full rated useful thermal output, 140o F supply from, and 120o F return water temperature to, the boiler.

2. Residential combustion equipment. Residential combustion equipment, including furnaces, boilers, and water heaters, shall meet or exceed the energy efficiency criteria in Table 2 below.
   

Table 2: Minimum Residential Combustion Equipment* Energy Efficiency
Measurement Unit	Frequency of Sampling	Sampling Method(s)
Gas-fired furnace	AFUE	>=88.00%
Oil-fired furnace	AFUE	>=90.00%
Gas/oil-fired boiler	AFUE	>=88.00%
Gas/oil-fired water heater	Energy Factor	>=0.62%


*For furnaces, defined as equipment with a heat input rate of less than 225,000 Btu/hr; for boilers, defined as equipment with a heat input rate of less than 300,000 Btu/hr; for water heaters, defined as equipment subject to 10 CFR 430.


2. Other energy conservation measures. All other energy conservation measures implemented as part of an offset project shall meet the prescriptive requirements, as applicable, in Energy Benchmark for High Performance Buildings, Version 1.1, New Buildings Institute, 2005 (herein referred to as EBHPB), or state building energy codes, whichever result in better energy performance. Energy conservation measures without specified performance criteria in the referenced EBHPB shall meet the requirements of Federal Energy Management Program (FEMP) Product Energy Efficiency Recommendations, issued pursuant to Executive Orders 13123 and 13221, or Energy Star criteria issued jointly by the U.S. Environmental Protection Agency and U.S. Department of Energy, whichever result in better energy performance.
   
3. Maximum market penetration rate for offset projects commenced on or after January 1, 2009. For offset projects initiated on or after January 1, 2009, the project sponsor shall demonstrate, to the satisfaction of the REGULATORY AGENCY, that the energy conservation measures implemented as part of the offset project have a market penetration rate of less than 5%.
   

Offset Project Descriptions

The offset project sponsor shall provide a detailed narrative of the offset project actions to be taken, including documentation that the offset project meets the eligibility requirements of paragraph (1) above. The offset project narrative shall include the following information.

1. Location and specifications of the building(s) where the offset project actions will occur;
2. Owner and operator of the building(s);
3. The parties implementing the offset project, including lead contractor(s), subcontractors, and consulting firms;
4. Specifications of equipment and materials to be installed as part of the offset project; and
5. Building plans and offset project technical schematics, as applicable.

1. Isolation of applicable energy conservation measure baseline. The baseline energy usage of the application to be targeted by the energy conservation measure shall be isolated in a manner consistent with the guidance at paragraph (5) of this subdivision.

2. Annual baseline energy usage shall be determined as follows:

Energy Usage (MMBtu) = BEUAECM X A

where:

BEUAECM = Annual pre-installation baseline energy use by fuel type (MMBtu) attributable to the application(s) to be targeted by the energy conservation measure(s). If applicable building codes or equipment standards require that equipment or materials installed as part of the offset project meet certain minimum energy performance requirements, baseline energy usage for the application shall assume that equipment or materials are installed that meet such minimum requirements. For offset projects that replace existing combustion equipment, the assumed minimum energy performance required by applicable building codes or equipment standards shall be that which applies to new equipment that uses the same fuel type as the equipment being replaced. Baseline energy usage shall be determined in accordance with the applicable requirements at paragraph (5) of this subdivision A = Adjustments to account for differing conditions during the two time periods (pre-installation and post-installation), such as weather, building occupancy, and changes in building use or function. Adjustments shall be determined in accordance with the applicable requirements at paragraph (5) of this subdivision.

 

3. Annual baseline emissions shall be determined as follows:

Emissions (lbs. CO2)= nEi=1 BEUzxEFixOFi

where:

BEUi = Annual baseline energy usage for fuel type i (MMBtu) demonstrated pursuant to the requirements at subparagraphs (5)(i) through (iv) of this subdivision.

EFi = Emissions factor (lbs. CO2/MMBtu) for fuel type i listed at paragraph (3), Table 3 of this subdivision.

OFi = Oxidation factor for fuel type i listed at paragraph (3), Table 3 of this subdivision.

 

Emissions reductions shall be determined based upon annual energy savings by fuel type (MMBtu) for each energy conservation measure, multiplied by the emissions factor and oxidation factor for the respective fuel type at paragraph (3), Table 3 of this subdivision.

1. Annual energy savings shall be determined as follows:

where:
BEUAECM = Annual pre-installation baseline energy use by fuel type (MMBtu) calculated pursuant to subparagraphs (5)(i) through (iv) of this subdivision.
PIEU ECM = Annual post-installation energy use by fuel type (MMBtu) attributable to the energy conservation measure. Post-installation energy usage shall be determined in accordance with the applicable requirements at subparagraphs (5)(i) through (iv) of this subdivision.
A = Adjustments to account for any differing conditions during the two time periods (pre-installation and post-installation), such as weather, building occupancy, and changes in building use or function. Adjustments shall be determined in accordance with the applicable requirements at paragraph (5) of this subdivision.

Annual emissions reductions shall be determined as follows:

Emissions Reduction (lbs. co2- nei=1 ESi x EFi x OFi

where:

ESi = Energy savings for fuel type i (MMBtu) demonstrated pursuant to the requirements at paragraph (5) of this subdivision.

EFi = Emissions factor (lbs. CO2/MMBtu) for fuel type i listed at paragraph (3), Table 3 of this subdivision.

OFi = Oxidation factor for fuel type i listed at paragraph (3), Table 3 of this subdivision.

Monitoring and Verification Requirements
As part of the consistency application, the project sponsor shall provide a monitoring and verification plan certified by an independent verifier accredited pursuant to section XX10.6 of the RGGI Model Rule. Annual monitoring and verification reports shall be certified by an independent verifier accredited pursuant to section XX10.6 of the RGGI Model Rule. Independent verifiers must conduct a site audit when reviewing the first monitoring and verification report submitted by the project sponsor, except for offset projects that save less than 1,500 MMBtu per year. For offset projects that save less than 1,500 MMBtu per year, the project sponsor must provide the independent verifier with equipment specifications and copies of equipment invoices and other relevant offset project-related invoices. All offset project documentation, including the consistency application and monitoring and verification reports, shall be signed by a Professional Engineer, identified by license number. Monitoring and verification shall also meet the following requirements.

1. General energy measurement and verification requirements. Monitoring and verification of energy usage shall be demonstrated through a documented process consistent with the following protocols and procedures, as applicable.
   1. For existing commercial buildings, determination of baseline energy usage shall be consistent with the International Performance Measurement & Verification Protocol, Volume I: Concepts and Options for Determining Energy and Water Savings (IPMVP), “Option B. Retrofit Isolation” and “Option D. Calibrated Simulation.” If a building project involves only energy conservation measures implemented as part of a CO2 emissions offset project, a process consistent with IPMVP “Option C. Whole Facility” may be used, as applicable. Application of the IPMVP general guidance shall be consistent with the applicable detailed specifications in ASHRAE Guideline 142002, Measurement of Energy and Demand Savings.
   2. For new commercial buildings, determination of baseline energy usage shall be consistent with the International Performance Measurement & Verification Protocol, Volume III: Concepts and Options for Determining Energy Savings in New Construction (IPMVP), “Option D. Calibrated Simulation.” Application of the IPMVP general guidance shall be consistent with the applicable detailed specifications in ASHRAE Guideline 142002, Measurement of Energy and Demand Savings.
   3. For existing and new residential buildings, determination of baseline energy usage shall be consistent with the requirements of the RESNET National Home Energy Rating Technical Guidelines, 2006 (Chapter 3 and Appendix A of 2006 Mortgage Industry National Home Energy Rating System Standards).
2. Isolation of applicable energy conservation measure. In calculating both baseline energy usage and energy savings, the applicant shall isolate the impact of each eligible energy conservation measure (ECM), either through direct metering or energy simulation modeling. For offset projects with multiple ECMs, and where individual ECMs can affect the performance of others, the sum of energy savings due to individual ECMs shall be adjusted to account for the interaction of ECMs. For commercial buildings, this process shall be consistent with the requirements of ASHRAE Guideline 142002, Measurement of Energy and Demand Savings, and ANSI/ASHRAE/IESNA Standard 90.12004: Energy Standard for Buildings Except Low-Rise Residential Buildings. For residential buildings, this process shall be consistent with the requirements of RESNET National Home Energy Rating Technical Guidelines, 2006 (Chapter 3 and Appendix A of 2006 Mortgage Industry National Home Energy Rating System Standards).
   1. Reductions in energy usage due to the energy conservation measure shall be based upon actual energy usage data. Energy simulation modeling shall only be used to determine the relative percentage contribution to total fuel usage (for each respective fuel type) of the application targeted by the energy conservation measure.
3. Calculation of energy savings. Annual energy savings are to be determined based on the following:
   Energy Savings (MMBtu) = (BEUAECM x A) – (PIEUECM x A)
   where:
   BEUAECM = Annual pre-installation baseline energy use by fuel type (MMBtu) attributable to the application(s) to be targeted by the energy conservation measure(s), based upon annual fuel usage data for the most recent calendar year for which data is available. For new buildings, baseline energy use for a reference building equivalent in basic configuration, orientation, and location to the building in which the eligible energy conservation measure(s) is implemented shall be determined according to ASHRAE Guideline 142002, Measurement of Energy and Demand Savings and ANSI/ASHRAE/IESNA Standard 90.12004, Section 11 and Appendix G. Where energy simulation modeling is used to evaluate an existing building, modeling shall be conducted in accordance with ASHRAE Guideline 142002, Measurement of Energy and Demand Savings, and ANSI/ASHRAE/IESNA Standard 90.12004, Section 11 and Appendix G. For existing and new residential buildings, energy simulation modeling shall be conducted in accordance with the requirements of RESNET National Home Energy Rating Technical Guidelines, 2006 (Chapter 3 and Appendix A of 2006 Mortgage Industry National Home Energy Rating System Standards).
   PIEUECM = Annual post-installation energy use by fuel type (MMBtu) attributable to the energy conservation measure, to be verified based on annual energy usage after installation of the energy conservation measure(s), consistent with the requirements of ASHRAE Guideline 142002, Measurement of Energy and Demand Savings. Where energy simulation modeling is used to evaluate a new or existing building, modeling shall be conducted in accordance with ASHRAE Guideline 142002, Measurement of Energy and Demand Savings, and ANSI/ASHRAE/IESNA Standard 90.1 2004, Section 11 and Appendix G. For existing and new residential buildings, energy simulation modeling shall be consistent with the requirements of RESNET National Home Energy Rating Technical Guidelines, 2006 (Chapter 3 and Appendix A of 2006 Mortgage Industry National Home Energy Rating System Standards).
   A = Adjustments to account for any differing conditions during the two time periods (pre-installation and post-installation), such as weather (weather normalized energy usage based on heating and cooling degree days), building occupancy, and changes in building use or function. For commercial buildings, adjustments shall be consistent with the specifications of ASHRAE Guideline 142002, Measurement of Energy and Demand Savings, and ANSI/ASHRAE/IESNA Standard 90.12004, Section 11 and Appendix G. For residential buildings, adjustments shall be consistent with the specifications of RESNET National Home Energy Rating Technical Guidelines, 2006 (Chapter 3 and Appendix A of 2006 Mortgage Industry National Home Energy Rating System Standards).
4. Provision for sampling of multiple like offset projects in residential buildings . Offset projects that implement similar measures in multiple residential buildings may employ representative sampling of buildings to determine aggregate baseline energy usage and energy savings. Sampling protocols shall employ sound statistical methods such that there is 95% confidence that the reported value is within 10% of the true mean. Any sampling plan shall be certified by an independent verifier, accredited pursuant to section XX10.6 of the RGGI Model Rule.
   

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