4th National CHP Roadmap Workshop

Chicago, September 22-24, 2003

Key Issues

CHP for Housing and

Community Development
Bob Groberg, Director, Energy Division, CPD
U.S. Department of Housing and Urban Development
(202) 708-1201, Ext. 4642 • robert_groberg@hud.gov
 HUD 2002 Energy Action Plan

 HUD Energy Task Force to support 2001

National Energy Policy
 Action Plan approved by Deputy Secretary
 “Promote use of CHP…”
 “Promote use of ENERGY STAR…”
 Why CHP for Multifamily?
Favorable Conditions
 Aggregated thermal loads
 Many all-electric buildings
 Appropriate scales for several DOE/industry
“package systems”
 Multifamily sector is low risk—according to
Moody’s
 District energy systems can provide
heating/cooling to multiple buildings in urban
areas
 Desiccant dehumidifiers reduce the potential for
mold and bacteria growth
 Hydronic heating could use hot water or steam
 HUD CHP Markets
Three housing markets
 Public, non-profit, “market”
 Both existing and new construction

Community Development Opportunities

 Brownfield
 Community Development Block Grant
 Public Housing Inventory

 3,200 Public Housing Authorities

 1.2 million units
 4,500 properties with 20-49 units
 7,100 properties with 50+ units
 Early Public Housing Experience
Michigan (1987)
60kW engine in 148-unit/7-story senior project
 Utility opposition to installation
 Staff lacked maintenance experience
 Faced high maintenance contract cost
 Prime mover replacement 3-4 years
 Utility offered only1.1 cents/kWh
 Charged for“administration” and standby power
 System paid off in 5 years, shut down in 7 years
 Early Public Housing Experience
Vermont (1987)

60kW in 168 unit 10-story senior project

 All electric but lacked uses for thermal
 Electricity prices reduced; gas prices increased
 Difficulty with maintenance support
 Energy performance contract paid off in 10 years
 Now no savings by running
 Current Successful Public Housing
Utilizing CHP
 Connecticut
 Danbury (Project Profile)
 Seymour
 Winsted
 Massachusetts
 North Adams
 Wooster Manor Public Housing
Danbury, CT (1998)
60kW gas engine/100 unit, 7-story family building
 Aegis Energy Service did feasibility study, installation
 Maintains for $10,000/year
 Converted 4 floors all electric to hot water heat
 Electricity costs went from $116,000 to $29,700
 Gas $33,500 for running system 22 hours/day
 System serves 50% space, 100% hot water needs
 Yankee Gas financed 10-year $275,000 loan
 See Project Profile
 Public Housing Economics

 Payback can be longer, e.g. 10-15 years

 Conversion of all-electric to hot water heat
 Capital improvement funds available
 Energy performance contracts: 12 years
 Maintenance contract supports PHA
management
 FHA Insured Housing
 7,113 properties with 20-49 units
 15,619 properties with 50+ units
 Identified a dozen projects with CHP in NJ, NY,
PA, CT, CA
 Summit Plaza, Jersey City (Project Profile)
 Summit Plaza Complex
Jersey City, NJ (1974)
Four 600kW #2 fuel reciprocating (diesel) and one gas
engine produce 3MW
 Serve 4 residential towers with 485 units, public school
with pool, commercial space
 System provides power, cooling, heating
 Saves 160,000 gallons of fuel oil a year
 Maintained by four daytime staff, off-site monitoring at
night
 FHA “Economics”

 Payback of 3-5 years

 Use of depreciation
 May release reserves
 FHA 1st mortgage position
 Nonprofit Housing-Elderly Projects

 1976-2002 HUD direct loan/capital advance

 160 projects/year
 4,014 projects/272,000 units
 Recent average is 40-50 units per project
 Economics somewhere between PH and FHA
 Connecticut CHP examples used tax credit
“donations”
 Project Developer Concerns
Buffalo developer decided against CHP:
 More complicated, e.g. local licensing
 Significant construction risk
 Noise
 Management skills needed
 No back-up; standby electricity needed
 Utility capacity charges eat up savings
 $50,000-$60,000/year
 Obstacles Facing Packager
 Package systems only on market a few years.
 Not enough time to train engineering firms
 Engineers’ first response: “Site is too small
for CHP.”
 Wants HUD to mandate study of CHP for
new buildings and to recognize peak demand
in calculating savings.
 Wants DOE’s Weatherization Program to
recognize CHP on its list of measures.
Community Development Agendas
 HUD-DOE 1980-90 history of district
heating/cooling feasibility/design projects
 Buffalo DHC with public housing
construction potential
 Boston Maverick Gardens Public Housing
 HOPE VI: CHP confirmed for 119 units.
 Brownfields Agenda
 HUD Brownfields Economic Development
Program
 Looking for CHP examples
 Malden, Medford, Everett, MA
 Des Moines, IA
 East Palo Alto, CA
 2003 Brownfields Conference Workshop
 “Energizing Brownfields”
 2003 DOE-HUD
CHP Working Agreement

 Case studies of HUD  Update “Cogeneration

CHP projects Manual”
 Case reports of  Establish peer networks
brownfield, CDBG  Work with CHP
redevelopment Application Centers
 CHP market analysis in
HUD properties
 Contacts for
2003 DOE-HUD
CHP Working Agreement

DOE HUD
Merrill Smith Bob Groberg
(202) 586-3646 (202) 708 0614, x 4642
merrill.smith@ee.doe.gov robert_groberg@hud.gov
 HUD Sources of Information
 www.hud.gov (search for “energy”)
 Energy Action Plan
 District heating/cooling program reports, projects,
conferences, special studies
 NYSERDA Multifamily 2003 Presentation
 Project Profiles of successful CHP installations
in Danbury, Summit Plaza
 RESOURCES
DOE Distributed Energy Resources (DER) Program
Roadmap to double the nation's CHP capacity: 46 GW to 92GW by 2010
Regional Application Centers (RACs)
• Provide application assistance, technology information, and education to architects and engineering
companies, energy services companies, and building owners in eight states
Midwest CHP Application Center CHP Guidebook
• Education and outreach • Identification of high impact projects
• State baseline assessments • Project screening
• Case studies • Support with SWAT Team Assistance.

CHP Integration Test Center at the University of Maryland

• Lessons on packaged system valuable for commercial-scale multifamily CHP projects

http://www.eere.energy.gov/der (202) 586-3646

Merrill Smith, DER Program Manager Merrill.Smith@ee.doe.gov
 RESOURCES
EPA CHP Partnership

• The CHP Partnership is a voluntary program that seeks to reduce the

environmental impact of power generation by fostering the use of CHP

• New emphasis on CHP as pollution prevention

• Ultimate goal is reduction of greenhouse gases

• Issues include New Source Review, permitting, output based standards

• Currently identifying opportunities for EPA CHP Partnership to act as

catalyst to move industrial and district energy projects forward

http://www.epa.gov/chp/ (202) 564-9442

Luis Troche, CHP Team Lead troche.luis@epa.gov
 RESOURCES
U.S. Combined Heat and Power (USCHPA)

• Mission is to create a regulatory, institutional and market environment that

fosters the use of clean, efficient CHP as a major source of electric power
and thermal energy in the U.S.
• Involved with FERC, interconnect, and other policy issues
• Sends out Policy Alerts to members
• Manufacturers, developers, utilities are members

http://www.uschpa.org (301) 628-2029

Doug Hinrichs, Outreach and Market Dhinrichs@drintl.com
Development Committee Chair
 RESOURCES
International District Energy Association (IDEA)

• District energy systems produce steam, hot water or chilled water at a

central plant and then pipe that energy out to buildings for space heating,
domestic hot water heating and air conditioning
• District energy model could be useful to multifamily projects with non-
adjoining buildings
• IDEA represents over 900 members
• IDEA formerly had joint conferences with HUD

http://www.districtenergy.org (508) 366-9339

Rob Thornton, President Rob.idea@districtenergy.org
 RESOURCES
NYSERDA
• Awarding $24 million to install 45 combined heat and power systems
throughout the state that will result in 35 MW of new electric generation
• Committing additional $4 million for 11 projects to further develop DG
technologies used in CHP applications
• NYSERDA-supported Cogeneration Manual (1989)
•Q and A
•Worksheets
•Lists of available equipment

http://www.nyserda.org (518) 862-1090, x 3377

Dana Levy Dll@nyserda.org