INVESTOR OWNED UTILITY INSTITUTIONAL BUILDINGS PROGRAM
These rules describe how the Oregon Department of Energy (ODOE) will run a two-year Institutional Buildings Program. The program will be funded by four investor-owned utilities. The program is to save electricity in schools, hospitals, public care and government buildings, and eligible facilities other than buildings.
Compliance with Other Rules, Regulations, Codes and Standards
Projects in this program must comply with all applicable local, state and federal rules, regulations, ordinances, statutes, codes, and standards. These rules in no way alter the responsibility of the applicant for such compliance.
(1) "IOU" means the investor-owned utilities listed in OAR 330-069-0075.
(2) "Administrative Costs" are costs allowed under OMB Circular A-87, 'Cost Principles for State and Local Governments', as amended.
(3) "Building" means any structure in which the efficient use of electricity can be improved through an ECM. Such building(s) must have been completed by October 28, 1982. The building(s) must be owned and operated by an institution.
(4) "Building Owner" means an institution which is the fee owner, mortgagor, or contract vendor of a building; or an institution which is a lessee or other occupant of a building with a lease which ends not before September 30, 1992, and which is authorized to install ECMs.
(5) "Care Institution" means:
(a) An institution for long-term care or rehabilitation, or a health center, as described in Section 1633 of the Public Health Service Act (42 U.S.C. 300s-3; 88 Stat. 2270); or
(b) A residential child care center, other than a foster home, which primary use is for fulltime care. Such center must provide care for at least ten minor persons who have an average stay of at least 30 days. Such persons must be in the care of the center because of a finding of abandonment or neglect, or because they need treatment or supervision.
(6) "Effective Date" means February 22, 1985.
(7) "Energy Audit (EA)" means the survey of a building by an energy auditor. Such survey is in accord with standards set by ODOE. The survey describes how a building uses energy. The survey will also find and list low-cost and no-cost operation and maintenance actions (O&M).
(8) "Energy Auditor" means a person certified by ODOE to do EAs under this program.
(9) "Energy Conservation Measure (ECM)" means to install material or equipment or take action to weatherize; or, actions to improve energy efficiency in electric water heating, space heating or cooling, ventilation, lighting, food preparation, motors, automatic energy control, and energy recovery.
(10) "Facility Other Than Buildings" includes but is not limited to:
(a) Sewage treatment plants;
(b) Potable water treatment and pumping systems;
(c) Fish hatcheries;
(d) Parking structures;
(e) Stadia or arenas; and
(f) Outdoor swimming pools which were completed by October 28, 1982 and which are owned and operated by an institution.
(11) "Hospital" means an institution which provides hospital service under the laws of the State of Oregon. In these rules, the term excludes a hospital which main care is domiciliary.
(12) "Institution" means a nonprofit or a public institution in the service area of a utility listed in OAR 330-069-0075.
(13) "Licensed Professional (LP)" means a person who has an active engineer's license granted by the State of Oregon; or is an engineer-architect team. The main members of such teams have active professional licenses granted by the State of Oregon.
(14) "Licensed Professional Engineer (PE)" means a person who has an active engineer's license granted by the State of Oregon.
(15) "Nonprofit Institution" means a hospital, care institution, or a school which owner and operator is exempt from income tax under Section 501(c)(3) or 501(c)(4) of the Internal Revenue Code.
(16) "Occupied Building" (for buildings within facilities) means an enclosed structure that persons occupy for more than seven hours per week. Such building has a working heating and/or cooling system used for human comfort and/or for process environmental control.
(17) "Operation and Maintenance (O&M)" means to operate, maintain, repair and adjust equipment or components of buildings to improve energy efficiency.
(18) "OPUC" means the Oregon Public Utility Commissioner.
(19) "Owner" means the persons authorized to apply and accept funds for the building or facility and be in accord with section (4) of this rule.
(20) "Program" means the Institutional Buildings Program (IBP) funded by the investor owned utilities through an agreement with ODOE. The program is in effect from February 22, 1985, through October 30, 1987. All program projects must be complete and final payment authorized by October 30, 1987.
(21) "Project" means one or more ECMs, defined by a TAS, for which a building owner seeks ODOE funding approval.
(22) "Public Institution" means an institution owned and operated by:
(a) The federal government;
(b) The State of Oregon;
(c) A political subdivision of the state and which can levy taxes;
(d) A recognized governing body of an Indian tribe in the state; or
(e) A body that can perform general government functions under state or local authority.
(23) "School" means an institution which legally provides elementary, secondary, post-secondary, or vocational education on a day or residential basis.
(24) "Technical Assistance Analyst (TAA)" means a person(s) who:
(a) Has experience in energy conservation; and
(b) Is a LP as defined in section (13) of this rule.
(25) "Technical assistance study (TAS)" means a study done by a TAA which meets ODOE standards. A TAS analyzes the potential energy savings in a building or facility. It recommends ECMs that will achieve such savings.
[Publications: The publication(s) referred to or incorporated by refence in this rule are available from the agency.]
The program funds are only for buildings and facilities for which ODOE accepted TA or ECM applications under the BPA/IBP in 1983. This limit does not apply to Idaho Power Company and CP National. All eligible buildings and facilities must be in the Oregon service area of the IOUs listed in OAR 330-069-0075.
Maximum Payment Levels
(1) TAS: ODOE shall set the maximum payment to the owner for a TAS as the smaller of:
(a) An amount equal to the actual cost of the TAS; or
(b) An amount not to exceed $0.0108 times the building's kWh/yr use at the time the EA is completed or updated. ODOE reserves the right to question and adjust the cost of a TAS. The actual payment will be set as per OAR 330-069-0085(2).
(a) ODOE shall set the maximum payment for an ECM as the smaller of:
(A) An amount equal to the estimated cost of the ECM less the first year dollar savings stated in the TAS; or
(B) An amount not to exceed $0.292 times the estimated first year kWh savings, less the first year dollar savings stated in the TAS. The final payment will also be subject to OAR 330-069-0085(3).
(b) For projects that cost more than $10,000 but less than $200,000, progress payments may be made upon 30 percent, 60 percent, and 100 percent project completion, unless otherwise agreed to by the funding IOU and ODOE;
(c) For projects that cost more than $200,000, progress payments may be made upon 30 percent, 60 percent, 80 percent, and 100 percent project completion, unless otherwise agreed to by the funding IOU and ODOE.
(1) ODOE shall contract with an owner for projects that comply with OAR 330-069-0085. ODOE shall prepare and submit to each IOU a summary report for ECMs approved under such contract.
(2) When the owner and ODOE have signed a contract, the owner must complete the project no later than the date set by the contract, or its amendment in accordance with OAR 330-069-0060.
(3) When ODOE finds that the completed project complies with OAR 330-069-0085, ODOE shall request the funding IOU to pay the owner an amount not to exceed that set in 330-069-0025.
(1) ODOE shall approve TAS and ECM payments according to OAR 330-069-0025 and 330-069-0085. ODOE shall request the funding IOU to make payments.
(2) All payout of program funds shall be by the IOU as per ODOE's approved requests.
Other Sources of Payment
ODOE shall not approve payment for a TAS or ECM funded by a cost sharing grant under the U.S. DOE/ICP.
ODOE shall keep the following records about payment of program funds. ODOE shall make quarterly reports to the IOUs listed in OAR 330-069-0075 and the OPUC. The reports shall cover the status of all funded projects and of all funds approved:
(1) For energy audits (for buildings and occupied buildings only):
(a) O&M actions taken by the owner in a building;
(b) Reason why the owner did not take O&M actions in accord with OAR 330-069-0085(2)(b)(B).
(2) For TAS:
(a) Name and address of owner;
(b) Name and address of building, or facility other than a building;
(c) Purpose for which the building or facility is used;
(d) Name of utility serving building or facility;
(e) Total electricity use in kWh/yr/sq ft;
(f) Building or facility size;
(g) Records that prove actual TAS cost;
(h) Amount of the IOU payment;
(i) Copy of each completed EA (for buildings and occupied buildings only);
(j) Copy of each completed TAS;
(k) Reasons why the building owner did not submit a TAA qualification statement;
(l) O&M actions taken by the owner in a facility other than a building; and
(m) Reason why the owner did not take O&M actions in a facility other than a building, as per OAR 330-069-0085(2)(c)(A).
(3) For ECM:
(a) Name and address of owner and of building or facility;
(b) Purpose for which the building or facility is used;
(c) Total building, or facility electricity use in kWh/yr/sq ft;
(d) Total estimated yearly kilowatt hour savings;
(e) Building or facility size;
(f) Date and amount of the funding IOU payment(s);
(g) Total cost of ECM;
(h) Records that prove actual cost of all installed ECMs;
(i) Name of utility serving building, or facility other than a building;
(j) Local retail electricity cost for each funded building or facility other than a building. This shall be the serving utility cost of energy in effect at the time of the ECM application;
(k) Ranking results;
(l) Data that support kWh savings estimates;
(m) Reason for exempting ECM installation from competitive fixed price bids required by OAR 330-069-0085(3)(c)(B); and
(n) Report that includes the date and results of the on-site visit and project completion date.
(4) Records on this program kept by the owner shall contain the information stated in these rules. The records shall be kept by the owner in any form, so long as the requirements of section (5) of this rule are met. Such records shall be kept for three years after the program ends.
(5) Program records shall be set up and kept in accord with sound accounting rules and shall conform with laws and federal regulations that apply, including the Privacy Act of 1974.
ODOE, the funding IOU and/or the OPUC, upon reasonable notice and at their expense, may:
(1) Audit and inspect program records and accounts kept by the owner pursuant to these rules;
(2) Request copies of such program records and accounts for audit purposes;
(3) Conduct random inspections of ECMs done under these rules. All such inspections shall be arranged in advance with the owner; and
(4) Review methods by which the owner complies with these rules.
The owner shall be an independent contractor in this program.
Extension of Time for Obligated Measures
The owner may request to extend the completion date of a project contracted in accord with OAR 330-069-0030. A written request must be received by ODOE no less than 30 days before the completion date stated in the contract. The request shall include the new date to complete the project and the reason to extend the date. ODOE shall notify the owner in writing, if all or part of the request has been granted or denied. Requests for extension will be judged on a case by case basis. In no case will more than two extensions be granted for a single contract. In no case will an extension be granted that would prevent completion of the project in accord with OAR 330-069-0015(20).
Termination of Obligated Measures
(1) ODOE and/or the funding IOU, by written notice of default to the owner, may terminate the contract and request that any funds received be paid back. This also includes any obligations created in accord with OAR 330-069-0030 if any measure is not completed within the time stated in the contract or any amendment thereof.
(2) ODOE may request the funding IOU to withhold payment from the owner for completed services. Such amount will be that which ODOE deems necessary to protect the IOU and ODOE against loss.
(3) The rights and remedies of OPUC, the IOU and ODOE set forth in this section shall not be exclusive. They are in addition to any other lawful rights and remedies.
If the IOU has made progress payments for a project under OAR 330-069-0025, and such project is not completed by the owner in accord with these rules, the owner shall be liable for excess costs paid by the funding IOU to complete such project. The owner shall be liable for refund to the IOU all or part of any payments received, as ODOE may decide.
ODOE shall run this program in the Oregon service areas of these IOUs:
(1) CP National;
(2) Idaho Power Company;
(3) Pacific Power and Light Company;
(4) Portland General Electric Company.
Project Ranking Formula
(a) ODOE shall rank TAS applications for a building or occupied building by its potential for ECMs. Rank shall be set by a point system based upon data in the EA;
(b) ODOE shall approve for funding qualified TAS applications in rank order starting with the highest ranked application.
(a) ODOE shall rank ECM Project applications by this formula:
Project Payment = Ranking Value
(A) Project Payment = The sum of allowable ECM costs where the allowable cost of each ECM is determined by OAR 330-069-0025(2)(a);
(B) E = The sum of electricity savings from all ECMs; savings are equal to the life of each ECM times its estimated yearly kilowatt hour savings.
(b) Any direct application renewable resource part of a project shall not be ranked or funded;
(c) ODOE shall approve for funding qualified ECM project applications in rank order starting with the lowest ranked.
ODOE shall run the program for the IOUs listed in OAR 330-069-0075. ODOE will provide information and monitor the program to insure the program is in accord with these rules:
(1) Energy audit (EA). ODOE shall give owners a list of ODOE certified energy auditors and forms for energy audits for buildings and occupied buildings only.
(2) Technical Assistance Studies (TAS):
(a) ODOE shall ask for, judge, rank, and select for funding applications for TAS. Ranking shall be in accord with OAR 330-069-0080(1). ODOE shall inform applicants in writing whether or not they have been chosen for funding;
(b) ODOE shall ensure that the requirements in paragraphs (A) through (E) of this subsection are met before authorizing payment for a TAS (for buildings and occupied buildings only):
(A) An EA has been done by an ODOE certified energy auditor;
(B) All O&M actions listed in the EA have been taken by the owner, except those which ODOE judges need not be done;
(C) The owner has sought TAA qualifications of doing the TAS before choosing a TAA, unless otherwise agreed to by ODOE and the owner;
(D) The TAS has been done by a qualified TAA and has been reviewed and approved by ODOE;
(E) The owner has given ODOE proof of payment to the TAA of all agreed upon costs for the TAS.
(c) ODOE shall ensure that the requirements in paragraphs (A) through (D) of this subsection are met before authorizing payment for a TAS (for facilities other than buildings):
(A) All O&M actions listed in the facilities TAS have been taken by the owner, except those which ODOE judges need not be done;
(B) The owner has sought qualifications of TAAs. The TAAs chosen must have at least one year of proven experience in the design or operation of the particular type facility under study unless otherwise agreed to by ODOE and the owner;
(C) The TAS has been done by a qualified TAA and has been reviewed and approved by ODOE;
(D) The owner gives ODOE proof of payment to the TAA of all agreed upon costs for doing the TAS.
(d) ODOE shall authorize payment to an owner an amount not more than that which is in accord with OAR 330-069-0025(1). Such payment shall be authorized when the TAS is done in accord with the above requirements and when conditions in either of paragraph (A) or (B) of this subsection are met:
(A) The owner has installed or agrees in writing to install, at the owner's own expense, approved ECMs recommended in the TAS. The total cost of these ECMs shall be at least equal to 50 percent of the TAS amount;
(B) The owner agrees in writing to install, upon approval of funding, approved ECMs recommended in the TAS. The total cost of these ECMs shall be at least equal to 50 percent of the TAS amount. If an owner has received any part of the TAS amount and does not install such ECMs, ODOE shall require the owner to pay back the funding IOU any part of the payment which exceeds 50 percent of the TAS amount;
(C) ODOE shall not authorize payment to the owner the total of its TAS amount if one of either paragraph (A) or (B) of this subsection is not satisfied and if:
(i) The TAS does not recommend any eligible electricity ECMs even if the TAS does meet the requirements in subsection (2)(b) or (c) of this rule. In this case, ODOE will authorize payment of an amount equal to 50 percent of the TAS amount only; or if
(ii) The total estimated cost of doing the recommended eligible ECMs is less than 50 percent of the TAS amount, even if the TAS meets requirements in subsection (2)(b) or (c) of this rule. In this case, the payment to the owner authorized by ODOE will be reduced by an amount equal to the difference between 50 percent of the TAS amount and the total estimated implementation cost.
(3) Energy Conservation measures (ECMs):
(a) ODOE shall ask for, judge, and select projects for funding. ODOE shall inform applicants in writing whether or not they have been chosen for funding;
(b) ODOE shall comply with paragraphs (A) through (F) of this subsection before approving a project application for funding:
(A) ODOE shall provide a PE, other than the TAA who did the TAS, to review and certify that energy savings and project cost calculations of ECMs recommended in the TAS were done by standard engineering methods. The PE will also certify that only ECMs recommended in a TAS are included in a project;
(B) ODOE shall rank and select for funding projects in accord with the ranking formula for ECMs in OAR 330-069-0080(2)(a), if requests for project funding exceed the funds available from the funding IOU;
(C) ODOE shall ensure that these things will not occur as a result of a funded ECM:
(i) Installation of low-pressure sodium (LPS) vapor lights indoors;
(ii) Use of high pressure sodium (HPS) vapor lights indoors, except for:
(I) General lighting in warehouses with low visual demand activities and short duration occupancies, with warning signs and danger signals that have an independent lightsource, where HPS fixtures or rows of fixtures are staggered on a multiple phase circuitry; and for
(II) High visual demand lighting in high bay areas, as defined by the Illuminating Engineering Society Lighting Handbook, where the mixture of HPS to incandescent, fluorescent, or metal halide fixtures is at least 1-to-1 with similar lumen output from both types of fixtures and the HPS fixtures are staggered on a multiple phase circuitry.
(iii) Removal or disturbance of previously installed asbestos;
(iv) Installation of Urea Formaldehyde Foam Insulation (UFFI).
(D) ODOE shall ensure that program funds are not used for ECMs which are environmentally restricted, and/or for projects which affect indoor air quality;
(E) ODOE shall not approve funding for any ECM based on a direct application renewable resource;
(F) ODOE shall obtain from the owner a written agreement to indemnify the funding IOU and hold it harmless from and against all claims and liability and expenses, including reasonable attorneys fees, arising from the negligent or other tortious acts or omissions of the owner's officers, agents, or employs.
(c) ODOE shall comply with paragraphs (A) through (D) of this subsection before authorizing the payment of funds to owners for completed projects:
(A) For projects that have had design documents prepared by a LP, ODOE shall provide a PE, other than the LP who prepared the design documents, to review the design documents before bid release. The PE will verify that the project design is in accord with the TAS and with standard engineering practice. The PE also will verify if the project can be expected to produce the energy savings stated in the TAS;
(B) ODOE shall ensure that the owner has sought competitive fixed price bids for doing the project unless otherwise agreed to by ODOE and the owner. ODOE shall also ensure that the installer has been chosen on the basis of price and capability;
(C) ODOE shall inspect each project for proper and complete installation of ECMs;
(D) ODOE shall obtain from the owner proof of payment of all agreed upon costs for the project.
(d) ODOE shall authorize payment to an owner in accord with OAR 330-069-0025(2) for installed ECMs.
(4) ODOE may limit the amount of ECM funding any single owner may receive, so long as such limits are applied fairly.
These rules may be amended from time to time as needed on agreement of the IOUs listed in OAR 330-069-0075, OPUC and ODOE.
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