Palo Alto’s Business New Construction (BNC) program is for new construction and renovation/remodeling. The program encourages energy-efficient building design and construction practices and promotes the efficient use of energy and water by offering up-front assistance supported by final measurement and verification of actual project performance on energy reduction. The program applies to new construction that exceeds Palo Alto’s Green Building requirements of at least a LEED Silver rating.  For this program, the project needs to have a minimum of 4 "Optimizing Energy" points.

Benefits of Participation. Customers involved in this program receive services including energy analysis and financial incentives. Services begin in the project design phase and continue through construction completion. Design assistance can range from simple plan review and efficiency upgrade recommendations to comparisons of efficient systems and technical specifications through the CARE energy audit program. Financial incentives are available for projects that exceed LEED Silver standards with a minimum of 4 points in the "Optimizing Energy" section. The incentives help to offset potential increases in costs associated with energy efficient buildings. Incentives are also available for design teams to incent them to provide more energy efficiency options early in the design process when the savings potential is greatest and most cost-effective.

Designs for Business New Construction and Renovation/Remodel Projects. BNC targets the primary decision makers in new construction and renovation/remodel projects: building owners, architects, engineers, designers, contractors, builders, developers, and energy consultants. The BNC offerings serve commercial, industrial, and institutional customers in Palo Alto and uses the 2005 California State Building Energy Efficiency Standards (Title 24, Part 6) or City energy code standards, whichever are higher, as a reference baseline for comparison. The BNC rebate program requires projects to perform better than mandated by Title 24, generally a minimum of fifteen percent (15%), which is attained when a project reaches a LEED Silver certification with a minimum of 4 "Optimizing Energy" points.

1.3 General Requirements and Eligibility To participate in the BNC program, applicants must meet certain minimum requirements. A CPAU Representative will meet initially with the building Owner and Design Team to determine the appropriate program path and scope of services for the project. Specific design assistance services will depend on the path selected. Rebate amounts are attached.

To be eligible for BNC, projects must:

·   Be at a point where design changes are feasible, preferably in the programming or schematic design phase.

·   Be located in CPAU’s service area and receive electric and/or gas service from the utility.

·   Be a project in the commercial or industrial, market segment, and either

o        A new construction, addition, or expansion project, or

o        A major renovation/remodel project which involves building system redesign, or change of occupancy.

·   Meet minimum BNC requirements. 
 

BNC participants must:

·   Complete and return an Application indicating the Owner’s interest.  Note that the Commercial Advantage general application must be attached to the BNC application.

·   For eligible Whole Building projects, the participants must complete a "Design Team Incentive Application" to indicate a Design Team’s interest to participate and to establish a Design Team Leader. Application acceptance must be acknowledged by CPAU prior to the initiation of any analysis.

·   Be willing to consider energy efficiency recommendations, which will improve building or system performance significantly beyond Title 24 (or other Reference Baseline) requirements.

·   Provide required documentation, including selected construction documents, LEED Title 24 energy performance documentation, integrated design analysis reports, manufacturer specifications, equipment cut sheets, and incremental cost verification, as requested.

·   Sign the appropriate completed "BNC Incentive Application(s)" prior to ordering, purchasing, and/or installing the selected energy efficient options.

·   Agree that they have not and will not apply for or receive any other incentive offered by local or state entities or utilities for measures covered under BNC.

·   Agree to allow access to the completed facility for on-site verification and, if selected, participate in measurement and evaluation studies.

 

Term. CPAU will execute a BNC Incentive Agreement for eligible projects until June 30, 2009, or until the FY 2008-2009 funding has been depleted.

Availability. Funding is limited and available on a first-come, first-served basis. CPAU reserves the right to modify or discontinue this program without prior notice at its discretion.

Project Completion. Construction must be substantially complete and participants must submit all required documentation to CPAU within 48 months from the date of CPAU’s execution of the Incentive Agreement. If the project’s completion is delayed beyond the final date, the Agreement is voided, but the project may be eligible under the offering guidelines in effect at that time. Subsequent eligibility will be considered on a case-by-case basis and will require CPAU approval and execution of a new Agreement.

1.4 The Basic Process To participate in BNC:

(a)   Owners, architects, designers, engineers, or contractors may initiate contact to begin project participation.

(b)   The Owner then submits a completed Application using the appropriate form(s) provided by CPAU. When applicable, the Design Team must completed Design Team Application during the preliminary or schematic design phase. This will be reviewed and approved by CPAU.  This Application will include copies of the LEED energy performance runs showing Title 24 energy budget and performance.

(c)   A BNC Representative will work with the participants to determine which path applies and how to optimize the energy efficiency of the project.

(d)   After the selection and design of the energy efficiency enhancements are finalized, the BNC Representative issues an Incentive Agreement to the Owner and Design Team describing the proposed project details, estimated energy budgets, estimated incentive amounts and any terms and conditions for that project.

(e)   The Owner/Design Team signs, dates, and returns the Agreement to the BNC Representative. By signing the Agreement, the Owner/Design Team acknowledges that they have read and agree to all eligibility requirements. CPAU’s counter-signature and date indicate that funds have been reserved for the project for a period of 48 months. Funding is "first-come, first-served."

(f)     Once construction is substantially complete, the Owner contacts the BNC Representative to request an on-site verification.

(g)   If the project is built as agreed and the project meets all of the requirements, the incentive will be paid. If the completed design differs from that outlined in the Incentive Agreement, a recalculation of the incentive amount will be performed and may be adjusted up or down to reflect the revised, estimated building performance.

 

2. TWO APPROACHES TO ENERGY EFFICIENT BUILDINGS  

Two performance-based design approaches, the Whole Building Approach and the Systems Approach, are available to identify and quantify energy-efficient design improvements. Jointly, the approaches provide the flexibility required to serve a large range of nonresidential projects and, whichever approach is taken, all services are available. After discussing project specifics, the BNC Representative will help select the best approach based on the goals of the building Owner and Design Team as well as the nature of the project.

2.1 Whole Building Approach

BNC promotes the use of integrated design analyses through the Whole Building Approach for large, complex projects or for projects containing innovative energy design features. Analyzing the performance of the building as a whole improves the design team’s ability to optimize interactive efficiency effects of the various building systems.

Participation requires a minimal commitment from the building Owner: that they are willing to consider the analysis recommendations and attend a meeting with the Design Team to discuss the viability of implementing various energy efficiency strategies.

Owners desiring an incentive through Whole Building Approach MUST file the performance runs from the LEED Title 24 analysis PRIOR to the beginning of the project or signing the Application.

2.2 Systems Approach  

The Systems Approach encourages designers to optimize the energy efficiency of the systems within a building. The System Approach is best for less complex projects, those whose systems are designed at different times, and for projects where consideration for energy efficiency occurs late in the design phase.  BNC provides this straightforward approach to identify potential energy efficiency options and impacts. For the Systems Approach, the BNC Representative uses standard Commercial Advantage Program (CAP) equipment rebates to incentivize Owners who have completed construction of a building that exceeds Title 24 by a minimum of 15%.  

3. PROGRAM COMPONENTS  

BNC provides two different approaches to encourage the design and construction of energy efficient buildings in Palo Alto. It offers design assistance on a project-appropriate level as well as financial incentives to both the building Owner and the Design Team. Additionally, professional training opportunities, state-of-the-art energy design information and tools, and industry recognition of exemplary projects are available through BNC.

3.1 Design Assistance

Design assistance and consulting is available at no charge for the Owner or the Design Team. The level of assistance provided for a project varies based on the customer size and is up to $10,000. Assistance may be as simple as providing plan review and recommendations or may be as involved as a full building audit through the CARE program.  Receiving design assistance does not obligate the Owner to implement the design recommendations.

3.2 Financial Incentives

BNC offers financial assistance to help offset the increased costs associated with energy efficient buildings. Incentives are based upon the project’s estimated annual energy savings (kWh and therms) and are calculated according to the rates and program entry levels shown in Table 1. Incentives are limited to 50% of the incremental cost of the efficiency upgrades and are paid out to facilities with LEED certification above Silver.

BNC has two types of financial incentives:

Owner incentives - Incentives paid to Owners for efficient buildings that reduce energy use by at least fifteen (15%) when compared to the reference baseline on an annualized basis (which is achieved by any building above a LEED Silver certification). Owner incentives are available for Whole Building or Systems Approach projects as detailed in the attached table (Table 1).

For the majority of customers, Incentive payments are issued after construction completion is verified by an on-site inspection and when all other required documentation has been received. For City-owned facilities, due to the project management process, incentive amounts will be allocated with the initial Council approved package.  For all incentives, the final incentive amount is calculated based on the installed features, up to the project and customer maximum. For those City-owned facilities where rebates are allocated at the start of the process, it is possible that the Owner will need to reimburse CPAU if energy efficient measures are not installed.  Final incentive payments may vary from agreed upon (committed) estimates as a result of changes in the design or installation of energy efficiency measures.

Design Team Incentives - Incentives paid to design teams to encourage them to integrate building systems to reduce energy use by at least fifteen percent (15%) when compared to the reference baseline used in the Title 24 analysis on an annualized basis. Design Team Incentives are only available for Whole Building Approach projects, subject to an Owner Incentive Agreement being signed, and are paid to the Design Team Leader.

There are two opportunities for Design Team Incentives, based on the level of effort the Design Team elects to pursue:

Track A – After developing an efficient design using energy simulation analysis, the Design Team Leader submits a summary report delineating the energy efficient features included in the proposed design. Supporting documentation must include computer simulation electronic files and construction documents, and may include other information such as incremental cost estimates, specifications, and so forth. Track A Design Team Incentives will be paid after construction completion and measurement and verification that all program requirements are met and energy savings are achieved.

Track B – After exploring multiple energy efficiency design strategies through life-cycle cost analysis, the Design Team Leader submits a detailed report to the Owner and CPAU summarizing the integrated design analysis results and the proposed energy efficient design. Supporting documents must include computer simulation electronic files showing energy budgets for the project, construction documents, and incremental cost estimates for going above a LEED Silver design in the optimizing energy category. Track B design team incentives are paid in two stages. After accepting a qualifying Whole Building Analysis Report and receipt of a signed Owner Agreement, fifty percent (50%) of the overall Design Team Incentive is paid. The remaining fifty percent (50%) of the Design Team Incentive is paid upon construction completion and verification that all BNC requirements are met.