Source: Krell Energy Efficiency (KEE), LLC submitted to NRP
ENERGY EFFICIENCY FOR RURAL COMMUNITIES
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
0228841
Grant No.
2012-33610-19515
Cumulative Award Amt.
$99,939.00
Proposal No.
2012-00069
Multistate No.
(N/A)
Project Start Date
May 15, 2012
Project End Date
Jun 30, 2013
Grant Year
2012
Program Code
[8.6]- Rural & Community Development
Recipient Organization
Krell Energy Efficiency (KEE), LLC
1609 Golden ASpen Dr. Suite 101
Ames,IA 50010
Performing Department
(N/A)
Non Technical Summary
Rural communities, comprised of both residential and commercial buildings, are struggling to maintain their populations and the vitality of their downtown districts and schools. They are spending significant dollars on energy bills and wasting as much as 25% of that energy. Buildings accounted for 81% ($294 billion) of total dollars spent on U.S. electricity in 2008 and consumed more than 50% of the natural gas. A community-based energy efficiency program that involves community leaders and residents in energy conservation and efficiency efforts can reduce waste and save money to improve the bottom lines for private citizens, companies, non-profits and local government. Operations and management best practices can save 5% to 20% on energy bills without investing significant capital. Depending on building size and use, this can represent savings of hundreds to hundreds-of-thousands of dollars annually for each building. The School for Energy Efficiency (SEE) program was developed by CLASS 5, Inc. and is distributed in Iowa by Krell Energy Efficiency, LLC (KEE). School districts enrolled in SEE for four or more years have reduced their energy use by an average of over 20% through behavioral and operational changes. KEE will do the research in Phase I to show feasibility that the set of strategies (the CLASS 5 Process) that have a successful track record for energy reduction in large school systems can be restructured and re-priced to be successful for buildings that make up rural communities. We will work with two rural pilot communities: Manning in southwest Iowa and Charles City in northeast Iowa. We will evaluate the CLASS 5 Process used in SEE within our pilot communities and show the feasibility of: 1) energy reduction within a highly heterogeneous set of community buildings; 2) implementing the CLASS 5 process as a community-wide, sustainable energy efficiency program; 3) partnering with energy providers in the communities; and 4) developing a financial and pricing model that will provide a positive ROI on dollars invested by the community. Within each community, a set of buildings will be selected from a variety of sectors. An energy survey and detailed analysis of the energy consumption of each building will be completed. The average energy usage and energy cost per square foot are required to ascertain feasibility of developing a cost-effective energy efficiency program for the communities. In order to gain a better understanding of factors and issues in each of the communities, the relationships among institutional areas, and the potential for purposeful and united action on the part of the community, we will conduct interviews and small group discussions with community members and decision makers. Insights from the energy surveys of buildings and the community interviews will direct the development of a pricing model. Our goal will be to provide an ROI that allows community stakeholders to purchase the energy efficiency program. We will also gain insight into how future implementation of the program would proceed and how it could build community cohesion and pride.
Animal Health Component
40%
Research Effort Categories
Basic
20%
Applied
40%
Developmental
40%
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
6086099303050%
6086099308050%
Goals / Objectives
Project goal is to evaluate the feasibility of developing an energy efficiency program for rural communities that is effective in reducing energy use, is cost effective for both the community and the small businesses developing and delivering the program, and has great potential for community acceptance, implementation, and sustainability over the long term. In addition, a successful community implementation with cost savings can enhance a community's identity and make it a better place to live and work. Objective 1: Evaluate the energy status of buildings in various sectors (schools, municipal buildings, retail, healthcare, industry, churches) of two rural communities in Iowa to gain understanding of past energy use in each sector, differences between sectors, and what the priorities of the program during an actual implementation should be. Expected Outcomes: Determine: 1.1)Average energy use per square foot for each building and sector during the preceding year. 1.2)Average energy expenditures per square foot for each building and sector during the preceding year. 1.3)Average age and general condition of buildings and energy-related systems in each sector, and what asset improvements have been done to date to improve energy efficiency. Objective 2: Conduct research via interviews and small group discussions with leaders, decision makers, and residents of various sectors of two rural communities in Iowa. Expected Outcomes: Determine: 2.1)Levels of interest, motivation, and challenges to supporting and implementing a community energy efficiency program in rural communities Are there perceived values for being an "energy efficient community" in attracting/retaining businesses and/or residents 2.2)Potential strategies to gain community interest, establish unifying goals, and build community pride for energy and cost-saving efforts. Will these strategies vary across community sectors 2.3)Existing or potential avenues for developing partnerships and relationships within and between community sectors and with existing community groups to facilitate adoption and financing of an energy efficiency program. Objective 3: Determine if there is potential for support and partnering for a community energy efficiency program from energy providers of rural Iowa communities. Expected Outcomes: Determine: 3.1)If all sectors of rural communities are currently gaining maximum benefits from the energy providers' existing programs. 3.2)If energy providers will consider new incentives and/or free energy audits for rural communities that enroll in the program. 3.3)If energy providers will provide electronic downloading of utility bills from selected buildings into a tracking program to reduce time and costs. Objective 4: Develop a model for promoting and implementing the program in a cost effective way for rural communities. Objective 5: Investigate distribution avenues for the community program. Marketing of the community-based product needs to aggressively use the existing channels for getting information into rural communities.
Project Methods
Objective 1: A coordinator from each test community will be appointed to work with the Principal Investigator and trained to be able to work successfully in the communities to meet the goals of the program. Data collected will be input into the ENERGY STAR Portfolio Manager for ongoing analysis. An energy use analysis will be conducted for 20 to 30 buildings from five to seven sectors in each test community. The past 14 months of utility costs for each building will be collected and used to determine total energy use and energy cost during the baseline year, with breakdown for electricity, natural gas, and demand. A survey will be developed and completed for each of the buildings described above. Information to be collected for each building includes: 1.1)General data about the building's age, use, size, occupancy, etc. 1.2)Data related to the building envelope, energy management system, heating and cooling systems, lighting, computers, etc. 1.3)Insights concerning the flow of information among occupants in the building. Objective 2: Partner with Iowa State University's Community Vitality Center to conduct, analyze, and report interviews and small group discussions with leaders, decision makers, and residents of the test communities. Interviews and small group discussions are a primary research method used to gain an in-depth understanding of and insight about issues and challenges of a local community. Two sets of participants will be recruited from people affiliated with the buildings: 1) those with primary control over management and budget decisions of the building, and 2) building users, such as employees, customers, or clients. The proposed program is oriented to changing the behaviors and culture of all building users. A third set of group discussions will consist of community members active in the community at large. The discussions and interviews will consist of three to six people and utilize a structured approach with open-ended questions focused on the energy issues important to the project. A similar set of questions will be used across discussion groups so that comparisons, trends, and differences can be assessed. Objective 3: We will pose questions related to awareness and use of utility programs, rebates, and incentives on the building surveys completed for Objective 1. In addition we will pose this question to the energy provider leaders from each test community. Objective 4: We will use data from communities to set a pricing model. The model needs to allow a rural community to have a positive ROI. We need to know the total cost of energy use per square foot in a variety of buildings and how the local energy provider works within the community with respect to cost, incentives, etc. The data collected from communities will allow the program to be adjusted to be able to offer a product that is priced correctly. Objective 5: We will meet with several potential organizations and businesses that could become effective distribution channels for the energy efficiency program once it is commercially available to rural communities.

Progress 05/15/12 to 06/30/13

Outputs
Target Audience: Target audiences reached during the prior year included: 1) Community leaders in the two pilot communities of Charles City and Manning, IA. 2) Fifty-six building owners and managers from Charles City and Manning, IA that volunteered their buildings for participation in this research project. 3) Leaders from Main Street Iowa, a division of the Iowa Department of Economic Development. 4) Select managers from Iowa utility companies. 5) Interested public who read the report linked to the Krell Energy Efficiency website. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest? After receiving USDA funding, we notified the three investor-owned utilities in Iowa as well as Main Street Iowa, a division of the Iowa Department of Economic Development about our research plans. A copy of the final report was linked to the Krell Energy Efficiency website, www.krellenergy.com. We then notified our contacts in the following businesses and organizations that they could access the report online: CLASS 5 Energy, the Community Vitality Center at Iowa State University, and Main Street Iowa. We have sent a letter to each of the 56 participating building owners and/or managers in the two pilot communities of Charles City, IA and Manning, IA to inform them of the energy use results for their individual buildings. This included information such as their electricity use and cost per square foot, natural gas use and cost per square foot, and total energy use and cost per square foot. It also included, if available, an ENERGY STAR rating for their building. These ratings, from 1 to 100, provided building owners with an idea of how the level of energy efficiency in their building compared to similar buildings across the nation. The average energy use and costs for the various building types (banks, churches, hotels, K-12 schools, manufacturing plants, office buildings, restaurants, retail stores, senior care facilities, grocery stores, and water plants) that were represented in the study were also provided to each building owner so that they could see how their building compared to similar buildings in the two pilot communities. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? Objective 1: Evaluate the energy status of buildings in two rural Iowa communities. Pilot communities of Charles City, IA and Manning IA had 56 participating buildings. Building owners completed a building survey and provided past energy bills; data were entered into ENERGY STAR® Portfolio Program (see Tables.) Objective 2: Conduct research via interviews/discussions with community residents. Sixty community residents were interviewed to understand their attitudes, motivations and challenges in supporting an energy efficiency program. Participants included community leaders (18), and owners/managers (29) and employees (13) of participating buildings. Objective 3: Determine if there is support for a community energy efficiency program from Iowa energy providers. We attended meetings with the three investor-owned utilities (IOU) in Iowa and updated select IOU staff on this project. Some interest exists. Objective 4: Develop a financial model for promoting the program in a cost effective way to rural communities. Data were entered into ENERGY STAR® Portfolio Manager to obtain baseline energy use and cost for 56 buildings (Tables 1a/b, Table 2.) Building types were rated by ENERGY STAR®. This 1-100 scale assesses efficiency of buildings relative to similar buildings nationwide (50 = average energy performance; 75 or better = top performance. See Table 1a.) Table 1a. Energy Use Averages for Various Participating Building Types. Building Type (Number of Buildings in the Study) Avg. ENERGY STAR® Rating, if available Avg.Total Floor Space (Sq. Ft.) Baseline Site Energy Intensity, kBtu/Sq. Ft. National Median Site EUI*, kBtu/Sq.Ft. Above/ Below National Median Bank (4) 62 11,549 86.6 91.4 -5.8% Church (2) 69 13,495 66.6 37.0 79.9% Hotel/B&B (2) 68 13,375 90.6 71.0 27.5% K-12 School (6) 91 94,898 40.1 78.1 -43.8% Manufacturing Plant (2) N/A 146,228 516.1 N/A N/A Office Building (8) 77 7,798 53.7 66.5 -20.1% Restaurant (3) N/A 2,775 309.4 207.0 49.5% Retail Store (8) 66 10,283 54.7 50.0 9.17% Senior Care Facility (4) 70 17,160 179.8 165.4 29.2% Supermarket/Grocery (2) 23 27,860 288.7 185.0 56.1% Water Treatment Plant/Water Plant (4) N/A 8,161 N/A N/A N/A Other (11) N/A 10,695 112.4 73.5 36.7% AVERAGES for ALL BUILDINGS (56) 70 24,810 118.3 82.0 17.9% *National Median Site EUI: For buildings with a rating, this defines the site energy intensity (kBtu/Sq. Ft.) this facility would consume if it had a national energy performance rating of 50, median performance. Table 1b. Energy Use Averages for Various Participating Building Types. Building Type (Number of Buildings in the Study) Baseline Electric Use (kWh) Baseline Electric kWh per Sq. Ft. Baseline Natural Gas Use (therms) Baseline Natural Gas (therms) per Sq.Ft. Bank (4) 194,439 17.4 3,215 0.27 Church (2) 48,711 3.8 7,096 0.54 Hotel/B&B (2) 238,044 14.0 6,733 0.43 K-12 School (6) 437,071 4.7 25,669 0.24 Manufacturing Plant (2) 13,444,810 57.4 866,569 3.16 Office Building (8) 65,784 12.7 1,199 0.10 Restaurant (3) 120,688 45.7 4,438 1.53 Retail Store (8) 91,541 9.3 2,384 0.23 Senior Care Facility (4) 454,215 32.1 10,886 0.70 Supermarket/Grocery (2) 1,800,193 65.8 17,023 0.64 Water Treatment Plant/Water Plant (4) 539,209 94.0 6,602 0.62 Other (11) 131,534 23.4 4,240 0.36 AVERAGES for ALL BUILDINGS (56) 741,159 26.0 38,452 0.50 Table 2. Baseline Total Annual Energy Costs (Electricity and Natural Gas) for Participating Buildings. Charles City Buildings Manning Buildings Total Annual Energy Cost No. of Buildings % No. of Buildings % All Buildings Total % < $10,000 6 23.1 17 56.7 23 41.1 $10,001 - 20,000 7 26.9 8 26.7 15 26.8 $20,001 - 30,000 7 26.9 1 3.3 8 14.3 $30,001 - 50,000 1 3.8 2 6.7 3 5.4 > $50,000 5 19.2 2 6.7 7 12.5 Total 26 30 56 Objective 5: Meet with organizations that could become effective distribution channels for the program We met with Main Street Iowa, a division of Iowa Department of Economic Development to discuss this project. They are interested in a program that could benefit their 40+ communities. Energy providers could also be effective distribution channels. Challenges, Conclusions: The project goal was to determine feasibility for Krell Energy Efficiency (KEE) to implement the CLASS 5 (www.class5energy.com) behavior/operations-based energy efficiency program in commercial and public buildings in rural communities. Challenges noted by residents included need for flexibility to meet needs of diverse buildings and overcoming skepticism about behavior-based programs. Finances would be the biggest challenge. Community residents wanted to know a program would result in energy savings in a reasonable time, and savings would justify upfront costs of the program. Overall, respondents did not think it was feasible for most businesses to purchase an energy efficiency program, to fund a program coordinator, or to have the coordinator focus up to two hours/week on energy. Over 50% of buildings were less than 10,000 square feet with less than 10 employees, making it difficult for these building owners to justify the time commitment. This is a critical point, since success of behavior-based programs depends on having one person coordinate energy efficiency efforts and engage and motivate building occupants. A building's energy costs determine what is feasible to pay for an energy program. Among buildings studied, 41% spend less than $10,000/year on energy, and 67.9% spend less than $20,000 (Table 2.) If we assume 5% or 10% savings and a $1000 program fee, 68% or 40% respectively, of the buildings would break even or lose money. Perhaps 30% of participating buildings had enough energy use, employees, and revenue to make the current CLASS 5 program feasible. Building owners felt the assumed model of a community-wide energy coordinator would need to change to allow each business to operate the program independently. If our customers become individual businesses rather than communities, added costs of “door-to-door” sales would need to be reflected in increased product pricing, which is already a concern. KEE is a distributer of CLASS 5 energy efficiency programs, so profit from sales needs to be shared with CLASS 5. Therefore, KEE’s cost to market and sell the product to businesses is a key factor for KEE as we determine feasibility of bringing this program to rural communities.

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