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Committee of the Whole/Documents/Appendix 2. Calculating Emission Reductions for Building Retrofits/Fuel Switching (Option 1A)
Appendix

Appendix 2. Calculating Emission Reductions for Building Retrofits/Fuel Switching (Option 1A)

June 12, 2018Pages 70–742 sections

An extract from the 'Becoming Carbon Neutral' guidebook detailing methodologies for calculating emissions reductions from building retrofits.

2. APPROVAL OF AGENDA
July 2014 guidebookMethodology for energy efficient building retrofits

Appendix 2. Calculating Emission Reductions for Building Retrofits/Fuel Switching (Option 1A)

GREEN COMMUNITIES CARBON NEUTRAL FRAMEWORK

OPTION 1: PROJECT PROFILE

ENERGY EFFICIENT BUILDING RETROFITS AND FUEL SWITCHING

Project Profile Overview

This document provides guidance on estimating the emission reductions potential associated with increasing the energy efficiency of existing building envelopes and the technologies used for space heating / cooling and hot water, as well as for switching building systems to allow the use of lower carbon fuels. One of the greatest opportunities within communities for reducing greenhouse gas (GHG) emissions is the existing building stock. This project involves retrofitting non-government owned buildings in the community or local government owned / operated buildings that are outside the boundaries of “traditional local government services” (such as social housing).

There is a broad array of retrofit options available to building owners that can result in reductions of GHG emissions. The retrofit options include measures that (1) increase the efficiency of building shells through better insulation and windows, (2) increase the efficiency of building equipment (e.g., furnaces, air conditioners, boilers, hot water heaters), and (3) cause fuel switching from a high carbon energy source (e.g., light oil) to a low carbon energy source (e.g., electricity).

All retrofit measures that result in GHG emission reductions using the guidance below are included in this project type. Lighting and other non-heating / cooling retrofit projects are not covered by this project description because of challenges developing a simplified calculation.

Calculating Emission Reductions

In order to meet the heat and hot water needs of a building, energy (e.g., natural gas, fuel oil, electricity) is used to achieve a desired room or water temperature. The emissions from these sources (Baseline Emissions) depend on the type of energy used, the efficiency of the furnace or heater, and the efficiency of the building envelope or water system. A project addressing any of these factors can improve the GHG performance of an existing building. The equation for estimating emission reductions is as follows:

Annual Net Emission Reductions = Annual Baseline Emissions – Annual Project Emissions

This summary provides a high level outline of the most important variables involved in determining emission reductions from a project compared to a baseline situation. Successful projects will require complete information and clear documentation of calculations that conform to the Carbon Neutral Framework’s Methodology Standards and Reporting Requirements.

There are multiple accepted approaches for quantifying emission reductions among building energy efficiency carbon credit protocols. To simplify data provisions for building owners, a “simple, whole facility” quantification approach is used for this project type. Under this approach energy use for the entire building is included in the baseline and project calculations utilizing conservative assumptions and methods for determining energy use and calculating energy reductions. The accounting methodologies used here were designed with the data that building managers have available to them in mind. Calculating energy use and GHG reduction is based on utility data.

Spreadsheet Direction

The embedded spreadsheet simplifies the calculations needed to determine the annual emission reductions associated with an energy efficiency project.

Project Example

The spreadsheet demonstrates the following example.

A local government decides to retrofit 25 households within the community. The retrofits include replacing oil furnaces with air source heat pumps and sealing all gaps and cracks with new weather stripping.

Task Input/Output
Step 1: Enter dates
Enter the dates for the baseline and project years. In the example, the baseline years are 2009 to 2011, and the project year is 2012.
Step 2: Calculate baseline consumption
Enter the baseline energy consumption from the last three years’ of utility bills (electric and heating oil). Total electricity consumption (kWh) and heating fuel consumption (GJ) are entered for each year to establish a three-year average. In this example, the average annual electricity consumption over three years for the 25 households used for appliances, lighting, and hot water heating totalled 280,000 kWh. The average annual heating oil consumption for space heating in the 25 households over the same three years totalled 1,900 GJ.
Step 3: Calculate project consumption
Enter the energy consumption for the project year from utility bills. In this example the oil furnaces are replaced with air source heat pumps so there is not just an electricity bill. Total electricity use goes up in the project year to 320,000 kWh due to the new air source heat pumps.
Step 4: Estimate energy use for heating and cooling
Estimate the share of electricity consumed for space heating and cooling. This step is required to determine what portion of an electricity bill is due to space heating and cooling In this example, electricity was not used for space heating in the baseline. However, the air source heat pumps use electricity in the project year. The amount of electricity used by the air sourced heat pumps is estimated to be 140,000 kWh, or 33% of total electricity use in the project year. The total electricity used by the heat pumps was determined by using manufacturers’ specifications that are provided with the product.
Step 5: Enter heating degree days
Enter heating degree days to calculate the “weather-adjusted” project energy consumption. This step is needed to correct for annual average temperatures that are colder or warmer than average. Heating degree days are used to estimate how cold it was over the year and how much energy may be needed to keep buildings warm. In this example, the project year was slightly colder than the baseline years
Step 6: Calculate emission reductions
The spreadsheet does the calculations to estimate the total annual net emission reductions. In this example, the net annual emission reductions from all 25 households are 168.2 tonnes.

Project Calculation Guidance

Category Guidance
Information Requirements & Sources Energy usage for each energy type (electricity, natural gas, heating oil, etc) for one year
• Source: Utility data
Number of heating-degree-days for the calendar year
• Source: Government of Canada weather service; http://www.degreedays.net
Emission factor for each energy type
• Source: The Climate Registry and Natural Resources Canada: http://www.theclimateregistry.org/resources/protocols/general-reporting-protocol/ ; http://www.theclimateregistry.org/downloads/2010/08/Default-Emissions-Factors.xls
Calculations The energy calculation for the project year will need to be adjusted to account for potential differences in weather and building uses with the baseline year.
Weather Correction
Total energy consumption x ((1-heating dependent share of energy) + (heating dependent share x heating degree days in the baseline year/heat degree days in project year) = weather adjusted energy consumption
Multiply by an adjustment factor of 0.9 to account for potential overestimation of GHG reductions as a result of assumptions and simplified calculation methodology
After annual energy use is estimated, annual GHG emissions can be calculated:
CO2e = Total annual energy use x emission factor
Notes Total baseline emissions should be calculated based on one calendar year of activity
Page 70–74

Note on Energy Audit GHG Quantification: Alternate methodologies that rely on pre- and post-project energy audits could also be used to quantify energy and GHG emission reductions. The set of assumptions used by energy auditing companies to forecast post retrofit energy usage would be need to be specified and standardized for different building typologies.

Carbon Neutral Framework Compliance

The following checklist outlines seven Project Eligibility Requirements under the Carbon Neutral Framework. Option 1—GCC Supported Projects — are already considered to meet project eligibility requirements three and four below. To demonstrate how an Option 1 project meets the five remaining eligibility requirements, simply complete and make public an Option 1 Project Plan Template (see Appendix 6).

For more information on the project eligibility requirements please refer to section 2.1.1 and Appendix 1 of the Becoming Carbon Neutral guidebook.

Checklist:

  1. Emission reductions are outside of the local government corporate emissions boundary
  2. Emission reductions have occurred before they are counted
  3. Emission reductions are credibly measured
  4. Emissions reductions are beyond business as usual
  5. Accounting of emission reductions is transparent
  6. Emission reductions are only counted once
  7. Project proponents have clear ownership of all emission reductions

Local Applicability and Cost Factors

Building Ownership, Control and Data

The biggest factor in determining whether a local government will be able to successfully implement an energy efficiency retrofit program in their community and receive carbon reduction credits under the Carbon Neutral Framework will be its ability to establish a mechanism through which it facilitates or oversees the retrofit program, is able to establish ownership of the carbon reductions, and collects the necessary data for establishing baseline energy use and measuring / reporting / estimating post-project reductions. This mechanism could take a number of different forms, including retrofit program organizer, provision of a financial subsidy to assist residents (or a sub-section, such as low-income households) to conduct retrofits, or the creation of a website to chart collective community emission reductions or emission reductions by neighbourhood.

If a local government exerts operational or financial control over social housing buildings, this presents a clear opportunity for undertaking a retrofit project within this Carbon Neutral Framework because the project facilitation and data collection barriers mentioned above can be avoided.

Community and Sustainability Co-Benefits

Building energy retrofit projects have a number of significant community co-benefits. These include energy cost savings that begin to accrue as soon as the retrofit is completed; the stimulation of the local economy through the creation of demand for new types of expertise, services and products; educating residents and businesses about the benefits of energy efficiency and reduction; improved quality of indoor environments through better heating / cooling; and reduction in vulnerability to rising energy costs.

Precedents

Currently in Canada, most building energy efficient retrofit programs are administered by federal and provincial agencies and energy utilities, with local governments mainly assisting in the dissemination of information through their websites. There are a few examples of local governments playing a more direct role in retrofit programs within Canada and elsewhere in North America.

  • The City of Edmonton’s CO2RE program, in partnership with the federal Residential Rehabilitation Assistance Program is offering $2,000 rebates to low income households that install high-efficiency furnaces. http://www.edmonton.ca/environmental/documents/LowIncomeFAQ-200-12-07.pdf
  • The City of Chula Vista, California has obtained funding from the federal government and has partnered with San Diego Gas and Electric Utility to offer residents and business owners’ performance based rebates for building energy efficiency retrofits. http://www.ci.chula-vista.ca.us/clean/conservation/Climate/documents/CVEEIncentive_ProgramPlanFINAL.pdf
  • The Better Buildings Partnership (BBP) was created by the City of Toronto’s Energy Efficiency Office to provide resources including financial assistance for both energy efficient retrofits and new construction. BBP is currently partnered with the Ontario Power Authority to deliver attractive energy savings incentives for multiple building types. http://bbptoronto.ca/
  • The City of Bellingham, Washington has created the “Community Energy Challenge” in partnership with local non-profit organizations, Puget Sound Energy and Cascade Natural Gas to promote community-wide energy efficiency improvements. This program will offer resources for energy efficient improvements to commercial and residential facilities; reduce barriers to implementing energy efficiency technology, train a workforce to implement building improvements; and raise awareness of energy-conservation opportunities through social marketing. The EECBG funds will be used to develop the program and create a financing mechanism, which will leverage private investment from local lenders for energy efficiency projects. http://www.cob.org/government/departments/pcd/eecbg-program.aspx

Resources

Quantification Protocols and Methods

Grants, Rebates and Information on Technologies

Page 70–74
Extracted from: 2018 06 12 Committee of the Whole Agenda - Agenda - Pdf