The Clean Power Plan, Extreme Weather, Energy Efficiency and

your Colorado Small Businesses

Tim Gaudette

Colorado Outreach Manager December 17, 2015

Small Business Majority

About Small Business Majority

•  Small business advocacy organization – founded and run by small business owners

•  National – offices in Colorado, Washington, D.C., California, Illinois, Missouri, New Jersey, New York, Ohio, Oregon, Virginia and Washington State

•  Research and advocacy on issues of top importance to small businesses (<100 employees) and the self-employed, including healthcare, access to credit, immigration, workplace and clean energy

•  Very focused on outreach to and education of small business owners across the country

Overview

•  The EPA’s proposed Clean Power Plan and its impact on small business

•  Extreme weather & stronger energy standards – the connection

•  What small business owners think

•  What small biz owners can do

•  Resources

•  Questions/Answers

What is the Clean Power Plan?

•  EPA proposed the Clean Power Plan to help curb carbon pollution from existing power plants for the first time

•  EPA projects the rule will achieve 32% reduction in carbon emissions from power plants by 2030 and 25% by 2020

•  Clean Power Plan is an essential step toward

spurring innovation and investment in low and no-carbon technologies

Clean Power Plan

The Clean Power Plan is designed to allow states to pursue carbon reduction and mitigation policies that:

•  Continue to rely on a diverse set of energy resources

•  Ensure electric system reliability

•  Provide affordable electricity

•  Recognize investments that states and power companies are already making

•  Can be tailored to meet the specific energy, environmental and economic needs and goals of each state

Clean Power Plan will bolster small businesses and job growth

Small Business Majority’s assessment of the Clean Power Plan found it will help address the threat of a changed climate while bolstering small businesses and creating new economic opportunities. EPA’s proposal will help small businesses looking for market opportunities in the clean energy economy through demand- and supply-side job opportunities in construction, manufacturing, strategic consulting, energy efficiency and green marketing, just to name a few. 

Flexibility for state-based implementation

•  Clean Power Plan has two main parts for states: •  State-specific goals to lower carbon emissions

from power plants

•  Guidelines to help states develop their plans for meeting the goals

•  Clean Power Plan allows states to build upon their progress in addressing carbon pollution

•  States can act alone or collaborate with other states on regional multi-state plans

•  EPA first identifies the existing power plants in the state that are subject to the standards

•  Building blocks are then applied to 2012 baseline emission rate levels for those plants

•  Each state has its own standard, based on its own unique power system

•  Each state has an interim and a final standard –  Interim Standard – average emission rate over the period

2020-2029 –  Final Standard – the emission rate that must be achieved by

2030

Setting emission rate standards for states

Is CO prepared to implement new clean energy standards?

Colorado’s government and utility officials have indicated the state is well-positioned to meet these standards: •  In 2004, voters passed a measure requiring

renewable sources of energy to generate a portion

of electricity used in the state

•  In 2010, Colorado lawmakers passed a law that requires investor-owned utilities to convert coal-fired power plants in a way that reduces emissions

•  2010 energy target: 30% of electricity used in the

state by 2020 must be generated from renewable sources.

Step 1: State chooses a compliance approach and develop plan for EPA

If the state pursues a credit-based emission limit approach:

Step 2: State Environmental Regulator –  Establishes enforceable permit limits for EGUs –  Implements the rate-based credit trading program

Step 3: Utilities/power plant owners develop emission reduction plans for how they will comply with the standard Step 4: Public Utilities Commission/Cooperative Boards/City Councils review and approve or modify utility emission reduction plans to assure compliance is prudent and cost-effective

Step 5: State Environmental Regulator ensures power plant owners maintain positive credit balances and are in compliance

Next steps

September 2013: New

Source Proposal

June 2014: Existing Source

Proposal

Summer 2015: Final

New and Existing Source

Standards

Summer 2016: States

submit compliance

plans

[Optional, 2017/2018]: States may receive 1–2

year extensions for specific

reasons

2020:

States must begin

complying

States hold

stakeholder process to shape

compliance plans

Where we are, Where we’re headed

Small businesses support stronger standards

64%

73%

74%

•  According to our polling, more than half (52%) of small business owners support the EPA’s authority to set standards and regulate carbon emissions from existing power plants.

48%

52%

0% 10% 20% 30% 40% 50% 60%

Do you favor or oppose the EPA regulating carbon emissions and setting standards for existing power

plants?

Favor Oppose

Small businesses support stronger standards

64%

73%

74%

•  76% of small business owners are in favor of requiring

new power plants to reduce carbon emissions

Small businesses support stronger standards

64%

73%

74%

•  A vast majority of small business owners support EPA

rules to reduce mercury and other toxic emissions from new and existing power plants

Why is this an important issue for small businesses?

•  Most small employers realize carbon pollution is linked to a changed climate and extreme weather.

•  More and more, extreme weather has been hitting them where it hurts most.

•  Small Business Majority polled a random sample of small businesses and found a changed climate and

extreme weather events are causing financial hardships for small employers and some have even

had to lay off employees after being impacted.

The big picture

•  2011-2012 were 2 most extreme years on record for destructive weather

•  Research shows small biz are especially at risk

•  Estimated 25%

of small businesses do not reopen following a major disaster

The impact

64%

73%

74%

•  2011-2012: Record 25 extreme weather events, costing hundreds of billions in damages

•  Superstorm Sandy, combined with yearlong drought, accounted for 2/3 of all insurance losses worldwide in 2012

•  1 in 5 small business owners in Michigan, Virginia and North Carolina have laid off employees as a result of extreme weather events

Opinion polling: Impact of extreme weather on small businesses

•  The vast majority of small business owners in Michigan, Virginia and North Carolina have been forced to close or suspend operations after a natural disaster

•  Small business owners say they have seen a significant financial impact to their business as a result of extreme weather: A staggering majority of small business owners impacted by extreme weather say the financial impact to their business was “significant,” and four in 10 report damages between $5,000 to $25,000.

Opinion polling: Impact of extreme weather on small businesses

Why are small businesses vulnerable?

64%

73%

74%

•  Small businesses uniquely threatened by extreme weather and are heavily impacted by: •  Power outages •  Absence of employees

•  Supply chain interruptions

•  Rising insurance costs

Why are small businesses vulnerable?

64%

73%

74%

•  57% of small businesses have no disaster recovery plan

•  Those that do, 90% spend less than 1 day/month preparing and maintaining them

Extreme weather and strong energy standards—the connection

64%

73%

74%

•  Stronger clean energy standards will curb effects of a changed climate and extreme weather

•  Majority of small biz owners support renewable energy policies because it saves money and is good for the environment

•  Many have implemented measures to reduce energy waste and improve their bottom lines

•  Economic benefits

•  Competitive edge

•  Excellence in innovation

•  Brand differentiation

Why stronger standards are important

Lightly Treading’s History •  We’ve been in business since 1997

•  We’ve worked on more than 20,000 buildings.

•  Our Sustainability/ Energy Efficiency Advisory services

are available to 90% of commercial building owners…

•  …we succeed when you succeed in achieving your performance goals.

Lightly Treading improves building owner’s bottom line by:

�  Providing expert energy management services,

�  Building improvement consulting and,

�  Implementing the solutions to maximize building performance and return on investment.

What we do:

Improving Performance: How we do it

Assessment - Benchmarking/Monitoring & Real Time Energy Management

BPA – Building Performance Assessment

Improvement Management

Ongoing Monitoring and Verification

Lightly Treading’s ABC service starts prior to being under contract:

�  We’ve done a BTU/sq.ft. evaluation of North Star Academy.

�  School X consumed 72,791 BTU/sq.ft./year in 2013/14 (54% on natural gas and 46% on electricity)…

�  A typical school in the U.S consumes 70,000 BTU/sq.ft./year but still wastes a lot of energy…

�  According to the EPA’s ENERGY STAR program, this typical school building can save $10,000 to $15,000/year by simply optimizing how the building uses energy!

�  Our ABC Service makes it simple to optimize how your building uses energy!

Light Treading’s ABC Service: Example

�  School X’s annual electricity consumption is 452,140KWH, Demand is 104KW in January and 177KW in September and School X is at 17,695 Therms for the year…

�  A 15% savings in KwH & Therms and a 20% savings in KW =

�  $10,435 of savings in the first year!! �  By following our ABC plan, this savings can continue or

even grow year after year! �  What could School X do with $1,000’s to $10,000’s of

extra $ in your budget every year?

School X’s Potential Savings from ABC Service

�  A 3-year relationship between School X & Lightly Treading to understand and optimize the building for the long haul.

�  Once under contract, we “Benchmark” electricity, natural-gas and water bills.

�  On a 1-100 scale we see if you are typical, high or low in your consumption.

�  If you are, or eventually achieve, being in the top 25%, you are eligible for ENERGY STAR certification

Tapping into the Savings---Light Treading’s ABC Service

�  What gets measured gets managed!

�  It’s the information needed to reduce KW, kWh and Therms (possibly water)

�  It’s the best way to gain insight as to what can be “tuned-up” to conserve in your building.

�  If we do not find savings within our 1st 3 months, we will return your money. A 100% money-back guarantee!

Monitoring & Real Time Energy Management: learning where you are wasting.

�  After the RTEM has conserved energy…

�  We test/inspect to find deeper energy savings

�  Insulation/Air-Sealing �  HVAC �  Lighting/Appliances �  Solar

Building Performance Assessment (BPA)

50% Shared-Savings model

$(15,000.00)

$(10,000.00)

$(5,000.00)

$-

$5,000.00

$10,000.00

$15,000.00

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NetCashFlow

65% Shared-Savings model

$(6,000.00)

$(4,000.00)

$(2,000.00)

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Paul Kriescher

303 733 3078 x 301 Name@lightlytreading.com

4303 Brighton Blvd., Building 3

Denver CO, 80216

»  DaveSchrock»  Execu.veVicePresident

–AtComfortAirSince1993»  PreviousExperience:

˃  RheemManufacturing,Amana,ICE-O-MATIC

»  Organiza.onInvolvement:˃  EEBC–FoundingMember&PastPresident˃  ColoradoGeoEnergy&HeatPumpAssocia.on–

MemberofBoardofDirectors˃  E-StarofColorado–PastMemberoftheBoardof

Directors˃  ASHRAEAssociateMember˃  NATECer.fied

»  JimBri9ain»  CommercialProductManager–

AtComfortAirSince2001

»  PreviousExperience:˃  HVACContractorEs.mator,Designer,

ProjectManagerforCommercialandMul.-FamilyProjects

»  Organiza.onInvolvement:˃  EEBCMember,ASHRAEAssociateMember,

Interna.onalGroundSourceHeatPumpAssocia.on(IGSHPA)Cer.fied,NATECer.fied,HMCCMember

»  HVACDistributor»  Colorado&Wyoming’sexclusiveRheemDistributor

»  Locallyownedandoperatedsince1987»  “ACustomer-focuseddistributor,dedicatedtothe

successofourHVACpartnersandcommi9edtobeingaleaderinourchangingindustry.”

»  MiniSplit

»  HighVelocity

»  RooeopUnit

»  SplitSystem

»  Installa.on˃  Ductwork˃  GrillsandRegisters˃  Sealing(Aeroseal)

»  Commissioning˃  Makingsurethesystemisopera.nginaccordancewiththedesign.˃  Measuringtheperformancetomatchthedesign.

»  Opera.on˃  Op.malsehngs.OccupiedandUnoccupiedsehngs.

»  Maintenance˃  Toop.mizeefficiency,equipmentmaintenanceisessen.al.

»  Replacement˃  Today’srooeopunitsaremorethan30%moreefficientthanarooeopthat

wasinstalled15yearsago.

»  EnergyEfficiencyRa.o(EER)»  SeasonalEnergyEfficiencyRa.o(SEER)»  IntegratedEnergyEfficiencyRa.o(IEER)

»  BTUtoWATT

»  AnnualFuelU.liza.onEfficiency(AFUE)

Cooling Mode; 100% Fresh Air Operation (FREE COOLING)

Return Air Supply Air

Fresh Air (outside air condition cool and dry enough to supply free cooling)

Barometric Relief

Mixed Air Note: Generally operation in-between these two modes.

»  VariableFrequencyDrives(VFD)»  VariableRefrigerantFlow»  Communica.ngThermostats

»  Incen.ves˃  www.dsireusa.org

»  Thermoelas.cCoolingSystems»  MagnetocaloricAirCondi.oners»  NanostructuredPolymerMembranes»  ElectrocaloricHeatPumps»  ElectrochemicalCompression

»  FutureRefrigerants-Water?

DaveSchrock JimBri9ain»  dschrock@comfortairdistribu.ng.com

»  303-399-1752x1103

»  jbrinain@comfortairdistribu.ng.com

»  303-399-1752x1117

Resources

•  Small Business Majority resource guides outline simple, low-cost tips to start saving money through energy efficiency: http://www.smallbusinessmajority.org/small-business-resources/clean-energy/index.php.

•  SBA resource provides business continuity strategies through its “Prepare My Business” website: www.preparemybusiness.org. 

•  SBA provides disaster recovery assistance in the form of low- interest loans to businesses of all sizes: www.sba.gov/disaster.

Energy Efficiency Business Coalition

•  Energy Efficiency Business Coalition – Lauren Poole, Executive Director – Connie Neuber, Marketing & Membership

•  www.eebco.org

•  (720) 274-9764

Join our network

•  Tim Gaudette, Colorado Outreach Manager

•  Email: tgaudette@smallbusinessmajority.org

•  Direct: 303.960.5774

Connect with us!

@SmlBizMajority

Small Business Majority

Ways to Get Involved:

Contact

•  Receive a monthly newsletter

•  Share your story for media requests

•  Letters to the editor/Op-eds

•  State events/Roundtables

•  Fly-ins

•  Webinars for business organizations

Small Business Majority www.smallbusinessmajority.org

http://www.smallbusinessmajority.org/small-business-

resources/clean-energy/

Tim Gaudette Colorado Outreach Manager

E-mail: tgaudette@smallbusinessmajority.org Phone: 303.960.5774

Questions?