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12-12 Ag Workshop Meeting Minutes

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12-12 Ag Workshop Meeting Minutes

    CALIFORNIA ENERGY

    EFFICIENCY STRATEGIC AGRICULTURAL SECTOR

    PLANNING

    Last Revised: 12/17/07 Created By: Patrick Linton Meeting Minutes

Agricultural Sector Workshop Refrigerated Warehouses and Greenhouses Meeting Name

    December 12, 2007 Meeting Date

    9:30 AM 12:00 Noon (Pacific) Refrigerated Warehouses Meeting Time

    1:00 PM 3:00 PM (Pacific) Greenhouses PG&E Customer Care Center Salinas, CA Venue City Pete Canessa, Convener, CIT-CSU Fresno Attendees

    Patsy Dugger, IOU Lead, Pacific Gas & Electric Andy Ytuarte, San Diego Gas & Electric, Southern California Gas

    Gary Suzuki, Southern California Edison Kay Hardy, California Public Utilities Commission Dan Frederick, PG&E Consultant

    Jessica Kuo, Accenture

    Patrick Linton, Accenture

    Ron Allen, Onsite Energy

    Charles Allured, Energy and Power Solutions Kent Anderson, International Association of Ammonia Refrigeration

    Dave Arnett

    Kurt Eulberg, E & J Gallo Winery

    Don Fantz, Pacific Gas & Electric

    Rob Fisher, Global Energy

    Michele Friedrich, Pacific Gas & Electric Rick Glissman, Pacific Gas & Electric

    Tom Hall, PG&E Consultant

    John Kernkamp, Energy Control

    Ed Kersten, Energy Control

    Harold Kinna, Golden Field Labs

    Stuart Kitayama, Kitayama Brothers

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Agricultural Sector Refrigerated Warehouses and Greenhouses

    12/12/07 Meeting Minutes

    Gert Kolbach, Systems USA

    Craig Metz, EnSave

    Karen Mills, California Farm Bureau

    Chris Peck, Speedling Inc.

    Doug Scott, VaCom Technologies

    Ed Sengle, EnSave

    Gerard Voge, Vreeland Nursery

    Bob Wilson, Energy Control

    Jim Wright, Wright Energy Association Proposed Agenda (Full Agenda Attached)

    1. Welcome and Introductions 9:00 AM

    2. Background of Strategic Plan Process 9:10 AM

    3. Meeting Objectives 9:15 AM

    4. Information Gathering Refrigerated Warehouses to 11:45

    5. Summary of session and action items 11:45 AM

    6. Lunch 12:00

    7. Recap of the Strategic Plan and Objectives 1:00 PM

    8. Information Gathering Greenhouses 1:15 PM to 3:45 PM

    9. Summary of session and action items 3:45 PM

Meeting Notes

Refrigerated Warehouses (Morning Session)

    1. Meeting introduction and location specifications (Patsy Dugger)

    a. Schedule overview

    b. Introductions of those present

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    2. Strategic Plan for Energy Efficiency (Pete Canessa)

    a. PowerPoint presentation will be available on www.californiaenergyefficiency.com website

    b. Why does this process matter to you?

    i. Money used to fund ideas from this plan comes from you

    ii. Approximately $1.8-2 billion was spent on energy efficiency in 2006 2008

    c. California Energy Efficiency Strategic Plan Background

    i. CPUC mandated California’s Investor-Owned Utilities (IOU’s) to develop an Energy

    Efficiency Strategic Plan for 2009-2020, in conjunction with comprehensive

    stakeholder input

    ii. The Strategic Plan should:

    1. Lead to improved integration of all Demand Side Management (“DSM”)

    programs

    2. Overcome barriers to “market transformation”

    3. Foster coordination with AB32 efforts (greenhouse gas emissions reductions)

    4. Improve coordination with and utilization of the strengths of Local

    Government

    5. Improve effectiveness of marketing, education, and outreach efforts

    6. Outline needed strategies for training of energy efficiency professionals

    7. Achieve the Big Bold Energy Efficiency initiatives

    a. Improved Heating, Ventilation, and Air Conditioning (“HVAC”) sector

    b. Zero net energy on new residential housing by 2020

    c. Zero net energy on new commercial building by 2030

    iii. Plan should also include input from publicly-owned utilities (e.g. Modesto Irrigation

    District, Turlock Irrigation District, Sacramento Municipal Utilities District)

    iv. Four sector working groups have been established, along with several cross-cutting

    topic areas

    1. Residential, Commercial, Agricultural, and Industrial sectors

    2. Marketing, Education & Outreach

    3. Workforce Education and Training

    4. Local Government

    5. Emerging Technology / Codes & Standards

    6. Low Income EE Programs

    v. The first draft of the strategic plan is due from the IOU’s on 2/1/2008

    d. Agricultural Sector Specifics

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    i. Several stakeholder meetings have already occurred with dairies, wineries, food

    processors, irrigated agriculture, and regulatory agencies

    ii. The focus today is on refrigerated warehouses and greenhouses

    iii. Information such as today’s meeting minutes and PowerPoint will be available at

    www.californiaenergyefficiency.com

    iv. Public comments and feedback are welcome

    1. CEE website has a discussion board for the Ag Sector

    2. Contact Pete Canessa at pcanessa@charter.net or 805-547-1130

    v. Timeline

    1. Draft strategies and stakeholder comments are turned over to the IOU’s on

    1/6/2008

    2. IOU’s deliver the first consolidated draft strategic plan to the CPUC on

    2/1/2008

    3. Public workshops for comment on the draft strategic plan will occur between

    February and May

    4. Final consolidated strategic plan will be given to the CPUC on 5/15/2008 vi. Focus for today’s discussion is forward thinking to the year 2020, as opposed to

    current programs

    3. Broad Focus Categories (Patsy Dugger)

    a. Based on feedback collected from prior workshops, we have drafted broad focus areas for

    action items, which are not conclusive. These categories include:

    i. Market characterization and goal setting.

    1. There is a lack of data and understanding of market characteristics, which

    prevents us from establishing meaningful energy efficiency goals in the

    Agricultural sector.

    2. Activities to resolve this include gathering lots of data and developing

    benchmarking tools that would allow customers to see their current

    performance and set future targets

    3. There is a need for coordination in order to set similar or comparable goals ii. Education and training.

    1. There is a need identify all the players across the energy usage spectrum who

    need to be trained, such as designers, owners, operators, and vendors. iii. Marketing and outreach.

    1. How can we increase the penetration of energy efficiency by developing an

    integrated marketing and outreach strategy?

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    2. Who are the people to partner with and involve to deliver these marketing

    messages to consumers?

    iv. Maximizing financing and incentives.

    1. How can we coordinate financing from multiple sources in order to provide

    larger incentives to customers?

    v. Reducing process energy intensity.

    1. Energy usage in the agricultural sector is primarily from irrigation pumping,

    natural gas, and refrigeration. What needs to be done in terms of best

    management practices and energy efficient equipment to reduce this

    consumption?.

    vi. Accelerate emerging technology adoption.

    1. How can the emerging technology timeline be shortened (e.g. identification of

    technology, documentation, and demonstration)?

    4. Open Discussion with Group (led by Patsy Dugger)

    a. What are the most important industry trends that are shaping refrigeration, lighting, and

    heating systems? Do these trends affect energy consumption? (Focus can include industrial

    refrigeration as opposed to just refrigerated warehouses.)

    i. Minimizing ammonia inventory is a concern, given regulatory issues

    ii. Energy Efficiency is typically a byproduct of compliance with regulations over which

    there is little influence or control (e.g. AB32). The important thing is to be aware of

    these trends, embrace them, and determine how to work with them.

    iii. Competition between the use of man-made refrigerants and natural refrigerants, which

    are impacted by legislation of CO2 and ammonia levels.

    b. Is energy more important on people’s mind than 5 years ago? Are people paying more

    attention to it?

    i. Energy is under consideration as it relates to maintaining competitive advantage. One

    method is to reduce production costs, of which energy is one component.

    c. Is there a typical energy cost for operating refrigerated warehouses?

    i. Unaware if any formal published data exists, however some scattered data is out there

    that has not been normalized. Generally, even within a company such as Wal-Mart, the

    warehouses do not share information with each other because they are competing.

    ii. There is a group in Washington that collects statistics from its members on operating

    costs on a dollar per cubic foot or square foot basis. Refrigeration is typically more

    than 50% of the operating cost for the warehouse. Costs can range based on the type

    of process (e.g. $1-3 per square foot)

    iii. There is generally no universal metric such as dollars per employee, case, or square

    foot. Something “standard” can be very difficult to determine given the variety of

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    products. However, the common denominator is that all spaces need to be refrigerated.

    There is a need for standard language with a set of metrics in order to progress.

    d. Is there pressure from customers using or purchasing the refrigerated warehouse space to be

    energy efficient?

    i. The primary selling point is the location of the warehouse. However, if the owner

    engages in energy efficient practices, they are beneficial talking points, but not the key

    seller.

    e. Are there any upcoming code changes such as Title 24? Are people aware fo those changes?

    i. Regulation of industrial energy efficiency is a new trend. Changes to Title 24 would

    represent the first piece of regulation in refrigeration.

    ii. Industrial refrigeration systems are comprised of individual components, so it is

    difficult to regulate, as opposed to the commercial sector.

    iii. There are some codes and standards discussed on the Green Buildings Council for

    energy efficiency, which covers areas such as lighting, refrigeration, and compressors.

    This is connected to the green industrial facility program.

    iv. Likelihood of building leakage standards (which also apply to storage facilities)

    established in the US

    1. UK and other European countries currently have standards, including pressure

    tests on the building envelope.

    2. If this standard came to the US, it is likely that air test and balance people

    would become involved

    v. There is a lack of accuracy in load calculations. Most are done based on “rule of

    thumb”, which is very unsophisticated compared to what is required in HVAC.

    1. It is difficult to identify the right fan size

    vi. What standards or methodologies are available? Are there professionals available to

    provide them?

    1. Equest is available, but not finished, which could cost $100,000

    a. Equest requires programming what the control strategy is

    2. Meat products are typically time-critical, need the temperature down by a

    certain amount of time using blast freezing

    a. Blast freezing is also used for ice cream

    3. In a public facility, space for cold storage is charged on a monthly basis plus a

    handling fee

    f. Are there technology advancements that will impact industry energy use in the near or distant

    future? (Patsy Dugger)

    i. CO2 refrigeration

    ii. Reduced cost of variable frequency drives (VFDs)

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    iii. Insulation is usually maximized, but not the “final inch” because it is not cost effective

    1. Regulatory issues and oil is has caused insulation material costs to go increase

    2. The envelope load and its contribution to energy costs is small

    iv. Energy management systems to control the facility is more of an emerging technology

    1. Systems with graphical user interfaces are expensive. However, there is a need

    for these interfaces that can be pushed to websites

    2. Benefit from enterprise integration to bring the information at a higher level

    and exposed to the CFO/expert/service provider

    3. Energy management software exists to let a facility adjust their systems. Since

    refrigerated warehouses are essentially big blocks of ice, they can afford to

    adjust their systems during peak times to influence their pricing

    a. Reducing energy use or load shifting is generally Demand Response

    which has incentives

    b. There is an opportunity for DR with advanced control systems aware of

    the current price of electricity and can adapt

    i. While DR has very high incentives, the utilities are inclined to

    promote energy efficiency first before DR

    ii. DR incentives may lead to additional EE systems that would not

    have installed with only EE incentives

    iii. The “EE first than DR” mentality may need to be re-evaluated.

    In one case, a customer did nothing because although a system

    was not cost-effective under EE even though it would have

    been permissible under DR incentives

    c. Onsite has some presentations on DR

    d. There is difficulty convincing budget holders to invest in EMS because

    not all the advantages are captured (e.g. stabilized production, better

    quality) and the project does not meet a 1-2 year payback

    i. Studies documenting the benefits of these systems would help

    adoption

    e. Control systems can also be helpful with the likelihood of reporting

    data for regulatory compliance (e.g. carbon footprint) or for other

    reasons (e.g. demonstrating that temperature fluctuations were not the

    cause of E. coli)

    4. SCADA systems that require all the data from flow meters are becoming more

    affordable. This does not manage the energy, but gathers all the data which is a

    crucial component.

    a. SCADA needs to be improved by overlaying a performance benchmark

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    b. Generally, cost is the barrier to these systems since the ROI is difficult

    to calculate

    c. Studies for the cost of whole plant monitoring for just field

    instrumentation to monitor flow rates are expensive (3-4x)

    g. There is concern that energy reduction efforts now may affect the baseline adopted for AB32

    i. The ARB is aware of this issue and is committed to not penalizing early action.

    However, the specifics of treatment have not been released.

    h. Maintenance is an opportunity to improve energy efficiency

    i. While maintenance has been avoided in the past, utilities such as PG&E have programs

    in place to provide incentives

    ii. Retro-commissioning takes older existing systems and brings them back to the level

    they were designed to operate at

    iii. Case studies would be valuable to document the benefit of maintenance

    iv. Potential opportunity to research screw compression efficiency as part of retrofitting

    v. Frigitek has a service which is designed as a retrofit product, expected to save 10-15%

    of operating costs and already installed at many places

    vi. Customers rebuild for two reasons: liability and breakage. If the upgrade is both

    reliable and energy efficient, then it is more advantageous.

    vii. Small customers generally don’t have the capacity to have a dedicated maintenance

    person to monitor the system. One suggestion is to have an incentive for long-term

    maintenance programs, where a customer may contract a long-term plan for periodic

    service.

    1. The problem is that while there are savings, it is difficult to quantify these

    beforehand.

    i. Is there standardized testing or standardized levels of efficiency?

    i. There are no existing industry standards in industrial refrigeration

    ii. How about standardized testing and standardized levels of efficiency?

    1. Compressors are typically all about the same

    2. Not much independent lab testing

    iii. Oil separation would be a candidate for a potential code requirement

    j. How can energy efficiency programs support industry initiatives or goals regarding regulatory

    requirements?

    i. The CMTA (California Manufacturers and Technology Association) generally keeps

    track of regulations

    1. However, while big players are connected, smaller ones are not even aware of

    the CMTA

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    ii. IARR is aware of upcoming regulations (e.g. natural refrigerants) iii. Costs in California are generally higher than other areas in the US, which can confuse

    national customers who can see the prices in both markets

    iv. R22 is being phased out

    k. What would be the most useful method of industry or individual benchmarking?

    i. Paul at UC-Davis is working on a benchmarking tool where customers can enter loads,

    type of cooling, energy consumption over 12 months, and square footage to

    anonymously compare your warehouse against others who have contributed data ii. Benchmarking would have to distinguish whether the product is being stored or pre-

    cooled

    iii. IARW could be a partner since they have a statistics program with overall industry

    data, ranges, and standard deviation

    iv. This would be a question for Kent, he referred to IARW having a good profile. We

    need

    v. May need to create a standard metric to organize around, e.g. dollars per ton, dollars

    per employee to enable people to measure themselves against a broader context. vi. The sectors could be divided by NICS code to separate between meat packing plants,

    ice cream plants, etc.

    vii. There is an effort by the EPA to do industrial benchmarking

    l. What modeling tools are available to calculate energy savings and cost effectiveness?

    i. PG&E is developing one for internal use

    ii. Equest tool for refrigeration would be useful

    iii. Berkeley and Maryland have done some work for air-conditioning and refrigeration,

    but not for industrial applications.

    iv. Universities tend to create models that are theoretical but too complex v. The problem is that the industry is varied and difficult to apply a single tool to

    thousands of facilities, taking into account temperatures, processes and the simulation

    of system components

    vi. Go-to-R is an option but does not have an easy to use graphical interface

    1. For general adoption the tool should be web-based, along with on-going

    training, and support

    2. Modifying Go-to-R could take several hundred thousand dollars

    3. One of the reasons against investment is that the community using the tool

    would be relatively small

    4. There would likely be industry support, but corporate staff is usually very lean

    so resources would be difficult to find

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    vii. DOE labs such as Oakridge, or LBL can contribute

    viii. Applicability of the tool could be nation-wide, not just California which would increase

    the funding available

    m. Who are the people that need to be trained on energy efficiency? What areas or topics would

    training be helpful for? What organizations would be good to partner with?

    i. The average contractor does not understand the controls

    ii. Consultants need to be trained on existing programs available to customers iii. Awareness needs to pushed up to the management level

    iv. Format of training is also important people need to be spoken to in a language at

    their level that they can understand

    v. You can subtly train people while soliciting information from them

    vi. Operators need to be properly trained and understand the benefits. Oftentimes if they

    do not buy into the new way, they will revert to old habits.

    vii. Need access to studies or reports documenting implementation and results of energy

    efficient measures

    viii. Training on the operations level to help contractors and designers evaluate energy

    options through tools

    ix. How to present projects and systems in a financially attractive manner to receive

    approval for funding, capturing all additional side benefits (e.g. stabilized production)

    and including the financial impact

    x. Opportunity to go through each food organization sector, particularly since they have

    higher level corporate decision makers involved as well

    xi. Need independent verifications of energy savings to remove potential for bias xii. Safety is the number one concern. However, energy efficiency is of high interest

    because it makes members more valuable

    xiii. Guidelines for manufacturers in terms of parameters to refer to

    xiv. A similar training effort was done for school producing three manuals addressing:

    1. owners and benefits of a high performance school

    2. how to build a high performance school

    3. how to maintain a high performance school xv. The Food Industry and Environmental Conference in Monterey in May could be a

    venue since all major food associations and companies will be there. The program is

    concerned about sustainability issues, so there may be interest from that group. xvi. CEC has a certification program which is not in use but exists

    xvii. RETA Refrigerating Engineers & Technicians Association xviii. IARW International Association of Refrigerated Warehouses

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