Codes,

Standards
And Legislation

This chapter presents a historical perspective on key codes, stan-

dards, and regulations, which have impacted energy policy and are
still playing a major role in shaping energy usage. The context of past
standards and legislation must be understood in order to properly
implement the proper systems and to be able to impact future codes.
The Energy Policy Act for example has created an environment for retail
competition. Electric utilities will drastically change the way they oper-
ate in order to provide power and lowest cost. This in turn will drasti-
cally reduce utility sponsored incentive and rebate programs, which
have influenced energy conservation adoption. The chapter attempts to
cover a majority of the material that currently impacts the energy related
industries, with relationship to their respective initial writing.
The main difference between standards, codes and regulations is
an increasing level of enforceability of the various design parameters.
A group of interested parties (vendors, trade organizations, engineers,
designers, citizens, etc.) may develop a standard in order to assure mini-
mum levels of performance. The standard acts as a suggestion to those
parties involved, but is not enforceable until it is codified by a govern-
ing body (local or state agency), which makes the standard a code. Not
meeting this code may prevent continuance of a building permit, or the
ultimate stoppage of work. Once the federal government makes the code
part of the federal code, it becomes a regulation. Often this progression
involves equipment development and commercialization prior to codi-
fication in order to assure that the standards are attainable.
1
2 Handbook of Energy Engineering

THE ENERGY INDEPENDENCE AND

SECURITY ACT OF 2007 (H.R.6)

Energy Independence and Security Act of 2007 (H.R.6) was enacted

into law December 19, 2007. Key provisions of the law are summarized
below.

Title I Energy Security through

Improved Vehicle Fuel Economy

Corporate Average Fuel Economy (CAFE).The law sets a target of

35 miles per gallon for the combined fleet of cars and light trucks
by 2020.
The law establishes a loan guarantee program for advanced bat-
tery development, grant program for plug-in hybrid vehicles, in-
centives for purchasing heavy-duty hybrid vehicles for fleets and
credits for various electric vehicles.

Title I1 Energy Security through

Increased Production of Biofuels

The law increases the Renewable Fuels Standard (RFS), which sets
annual requirements for the quantity of renewable fuels produced
and used in motor vehicles. RFS requires 9 billion gallons of renew-
able fuels in 2008, increasing to 36 billion gallons in 2022.

Title I11 Energy Savings Through

Improved Standards for Appliances and Lighting

The law establishes new efficiency standards for motors, external

power supplies, residential clothes washers, dishwashers, dehu-
midifiers, refrigerators, refrigerator freezers and residential boil-
ers.
The law contains a set of national standards for light bulbs. The
first part of the standard would increase energy efficiency of light
bulbs 30% and phase out most common types of incandescent light
bulb by 2012-2014.
Requires the federal government to substitute energy efficient
lighting for incandescent bulbs.
Codes, Standards 1.9Legislation 3

Title IV Energy Savings in Buildings and Industry

The law increases funding for the Department of Energy’s Weath-

erization Program, providing 3.75 billion dollars over five years.
The law encourages the development of more energy efficient
“green” commercial buildings. The law creates an Office of Com-
mercial High Performance Green Buildings at the Department of
Energy.
A national goal is set to achieve zero-net energy use for new com-
mercial buildings built after 2025. A further goal is to retrofit all
pre-construction 2025 buildings to zero-net energy by 2050.
Requires that total energy use in federal buildings relative to the
2005 level be reduced 30% by 2015.
Requires federal facilities to conduct a comprehensive energy and
water evaluation for each facility at least once every four years.
Requires new federal buildings and major renovations to reduce
fossil fuel energy use 55% relative to 2003 level by 2010 and be
eliminated (100 percent reduction) by 2030.
Requires that each federal agency ensure that major replacements
of installed equipment (such as heating and cooling systems) or
renovation or expansion of existing space employ the most energy
efficient designs, systems, equipment and controls that are life cycle
cost effective. For the purposes of calculating life cycle cost calcula-
tions, the time period will increase from 25 years in the prior law
to 40 years.
Directs the Department of Energy to conduct research to develop
and demonstrate new process technologies and operating practices
to significantly improve the energy efficiency of equipment and
processes used by energy-intensive industries.
Directs the Environmental Protection Agency to establish a recover-
able waste energy inventory program. The program must include
an ongoing survey of all major industry and large commercial
combustion services in the United States.
Includes new incentives to promote new industrial energy effi-
ciency through the conversion of waste heat into electricity.
Creates a grant program for Healthy High Performance Schools
that aims to encourage states, local governments and school sys-
tems to build green schools.
Creates a program of grants and loans to support energy efficiency
4 Handbook of Energy Engineering

and energy sustainability projects at public institutions.

Title V Energy Savings in Government and Public Institutions

Promotes energy savings performance contracting in the federal

government and provides flexible financing and training of federal
contract officers.
Promotes the purchase of energy efficient products and procure-
ment of alternative fuels with lower carbon emissions for the fed-
eral government.
Reauthorizes state energy grants for renewable energy and energy
efficiency technologies through 2012.
Establishes an energy and environmental block grant program to
be used for seed money for innovative local best practices.

Title VI Alternative Research and Development

Authorizes research and development to expand the use of geo-

thermal energy.
Improves the cost and effectiveness of thermal energy storage tech-
nologies that could improve the operation of concentrating solar
power electric generation plants.
Promotes research and development of technologies that produce
electricity from waves, tides, currents and ocean thermal differ-
ences.
Authorizes a development program on energy storage systems
for electric drive vehicles, stationary applications, and electricity
transmission and distribution.

Title VII Carbon Capture and Sequestration

Provides grants to demonstrate technologies to capture carbon

dioxide from industrial sources.
Authorizes a nationwide assessment of geological formations ca-
pable of sequestering carbon dioxide underground.

Title VIII Improved Management of Energy Policy

Creates a 50% matching grants program for constructing small

Codes, Standards 1.9Legislation 5

renewable energy projects that will have an electrical generation

capacity less than 15 megawatts.
Prohibits crude oil and petroleum product wholesalers from using
any technique to manipulate the market or provide false informa-
tion.

Title IX International Energy Programs

Promotes US exports in clean, efficient technologies to India, China

and other developing countries.
Authorizes US Agency for International Development (USAID) to
increase funding to promote clean energy technologies in develop-
ing countries.

Title X Green Jobs

Creates an energy efficiency and renewable energy worker training

program for “green collar” jobs.
Provides training opportunities for individuals in the energy field
who need to update their skills.

Title XI Energy Transportation and Infrastructure

Establishes an office of climate change and environment to coor-

dinate and implement strategies to reduce transportation related
energy use.

Title XI1 Small Business Energy Programs

Loans, grants and debentures are established to help small busi-

nesses develop, invest in, and purchase energy efficient equipment
and technologies.

Title XI11 Smart Grid

Promotes a “smart electric grid” to modernize and strengthen the

reliability and energy efficiency of the electricity supply. The term
”Smart Grid” refers to a distribution system that allows for flow of
information from a customer’s meter in two directions: both inside
6 Handbook of Energy Engineering

the house to thermostats, appliances, and other devices, and from

the house back to the utility.

THE ENERGY POLICY ACT OF 2005

The first major piece of national energy legislation since the Energy
Policy Act of 1992; EPAct 2005 was signed by President George W. Bush
on August 8,2005 and became effective January 1,2006. The major thrust
of EPAct 2005 is energy production. However, there are many important
sections of EPAct 2005 that do help promote energy efficiency and energy
conservation. There are also some significant impacts on federal energy
management. Highlights are described below:

Federal Energy Management

The United States is the single largest energy user with about a
$10 billion energy budget. Forty-four percent of this budget was
used for non mobile buildings and facilities. The United States is
also the single largest product purchaser with $6 billion spent for
energy using products, vehicles, and equipment.

Energy Management Goals

~~

An annual energy reduction goal of 2% is in place from fiscal year

2006 to fiscal year 2015 for a total energy reduction of 20%.
Electric metering is required in all federal building by the year
2012.
Energy efficient specifications are required in procurement bids and
evaluations.
Energy efficient products to be listed in federal catalogs include
Energy Star and FEMP recommended products by GSA and De-
fense Logistics Agency.
Energy Service Performance Contracts (ESPC) are reauthorized
through September 30, 2016.
New federal buildings are required to be designed 30% below
ASHRAE standard or the International Energy Code (if life-cycle
cost effective.) Agencies must identify those that meet or exceed
the standard.
Renewable electricity consumption by the federal government can-
not be less than: 3% from fiscal year 2007-2009,5% from fiscal year
Codes, Standards 1.9Legislation 7

2010-2012, and 7.5% from fiscal year 2013-present. Double credits

are earned for renewables produced on the site or on federal lands
and used at a federal facility or renewables produced on Native
American lands.
The goal for photovoltaic energy is to have 20,000 solar energy
systems installed in federal buildings by the year 2012.

Tax Provisions
Tax credits will be issued for residential solar photovoltaic and hot
water heating systems. Tax deductions will be offered for highly
efficient commercial buildings and highly efficient new homes.
There will also be tax credits for improvements made to existing
homes, including high efficiency W A C systems, and residential
fuel cell systems. Tax credits are also available for fuel cells and
microturbines used in businesses.

THE ENERGY POLICY ACT OF 1992

The Energy Policy Act of 1992 is far reaching and its implementa-
tion is impacting electric power deregulation, building codes and new
energy efficient products. Sometimes policy makers do not see the
extensive impact of their legislation. This comprehensive legislation is
far reaching and impacts energy conservation, power generation, and
alternative fuel vehicles as well as energy production. The federal as
well as private sectors are impacted by this comprehensive energy act.
Highlights are described below:

Energy Efficiency Provisions

Buildings
Requires states to establish minimum commercial building energy
codes and to consider minimum residential codes based on current
voluntary codes.

Utilities
Requires states to consider new regulatory standards that would:
require utilities to undertake integrated resource planning; allow
efficiency program to be at least as profitable as new supply op-
tions; and encourage improvements in supply system efficiency.
8 Handbook of Energy Engineering

Equipment Standards
Establishes efficiency standards for: commercial heating and air-
conditioning equipment; electric motors; and lamps
Gives the private sector an opportunity to establish voluntary ef-
ficiency information/ labeling programs for windows, office equip-
ment and luminaries, or the Department of Energy will establish
such programs.

Renewable Energy
Establishes a program for providing federal support on a competi-
tive basis for renewable energy technologies. Expands program to
promote export of these renewable energy technologies to emerg-
ing markets in developing countries.

Alternative Fue 1s
Gives Department of Energy authority to require a private and
municipal alternative fuel fleet program starting in 1998. Provides
a federal alternative fuel fleet program with phased-in acquisition
schedule; also provides state fleet program for large fleets in large
cities.

Electric Vehicles
Establishes comprehensive program for the research and devel-
opment, infrastructure promotion, and vehicle demonstration for
electric motor vehicle.

Electricity
Removes obstacles to wholesale power competition in the Public
Utilities Holding Company Act by allowing both utilities and non-
utilities to form exempt wholesale generators without triggering
the PUHCA restrictions.

Global Climate Change

Directs the Energy Information Administration to establish a
baseline inventory of greenhouse gas emissions and establishes a
program for the voluntary reporting of those emissions. Directs the
Department of Energy to prepare a report analyzing the strategies
for mitigating global climate change and to develop a least-cost
energy strategy for reducing the generation of greenhouse gases.
Codes, Standards 1.9Legislation 9

Research and Development

Directs and Dept. of Energy to undertake research and develop-
ment on a wide range of energy technologies, including: energy
efficiency technologies, natural gas end-use products, renewable
energy resources, heating and cooling products, and electric ve-
hicles.

CODES AND STANDARDS

Energy codes specify how buildings must be constructed or per-

form, and are written in a mandatory, enforceable language. State and
local governments adopt and enforce energy codes for their jurisdictions.
Energy standards describe how buildings should be constructed to save
energy cost effectively. They are published by national organizations
such as the American Society of Heating, Refrigerating, and Air Con-
ditioning Engineers (ASHRAE). They are not mandatory, but serve as
national recommendations, with some variation for regional climate.
State and local governments frequently use energy standards as the
technical basis for developing their energy codes. Some energy standards
are written in a mandatory, enforceable language, making it easy for ju-
risdictions to incorporate the provisions of the energy standards directly
into their laws or regulations. The requirement for the Federal sector to
use ASHRAE 90.1 and 90.2 as mandatory standards for all new Federal
buildings is specified in the Code of Federal Regulations-10 CFR 435.
Most states use the ASHRAE 90 standard as their basis for the
energy component of their building codes. ASHRAE 90.1 is used for
commercial buildings and ASHRAE 90.2 is used for residential build-
ings. Some states have quite comprehensive building codes (for example:
California Title 24).

ASHRAE Standard 90.1

Energy efficient design for new buildings sets minimum require-
ments for the energy-efficient design of new buildings so they
may be constructed, operated, and maintained in a manner that
minimizes the use of energy without constraining the building
function and productivity of the occupants
ASHRAE 90.1 addresses building components and systems that
affect energy usage
10 Handbook of Energy Engineering

Sections 5-10 are the technical sections that specifically address

components of the building envelope, W A C systems and equip-
ment, service water heating, power, lighting, and motors. Each
technical section contains general requirements and mandatory
provisions. Some sections also include prescriptive and perfor-
mance requirements

ASHRAE Standard 90.2

Energy efficient design for new low-rise residential buildings
When the Department of Energy determines that a revision would
improve energy efficiency, each state has two years to review the energy
provisions of its residential or commercial building code. For residential
buildings, a state has the option of revising its residential code to meet
or exceed the residential portion of ASHRAE 90.2. For commercial build-
ings, a state is required to update its commercial code to meet or exceed
the provision of ASHRAE 90.1.
ASHRAE standards 90.1 and 90.2 are developed and revised
through voluntary consensus and public hearing processes that are criti-
cal to widespread support for their adoption. Both standards are continu-
ally maintained by separate Standing Standards Projects Committees.
Committee membership varies from 10 to 60 voting members. Commit-
tee membership includes representatives from many groups to ensure
balance among all interest categories. After the committee proposes
revisions to the standard, it undergoes public review and comment.
When a majority of the parties substantially agree, the revised standard
is submitted to the ASHRAE Board of Directors. This entire process can
take anywhere from two to ten years to complete. ASHRAE Standards
90.1 and 90.2 are automatically revised and published every three years.
Approved interim revisions are posted on the ASHRAE website (www.
ashrae.org) and are included in the next published version.
The energy cost budget method permits tradeoffs between building
systems (lighting and fenestration, for example) if the annual energy cost
estimated for the proposed design does not exceed the annual energy
cost of a base design that fulfills the prescriptive requirements. Using
the energy cost budget method approach requires simulation software
that can analyze energy consumption in buildings and model the energy
features in the proposed design. ASHRAE 90.1 sets minimum require-
ments for the simulation software; suitable programs include BLAST,
eQUEST, and TRACE.
Codes, Standards 1.9Legislation 11

CLIMATE CHANGE

Kyoto Protocol
The goal of the Kyoto Protocol is to stabilize green house gases
in the atmosphere that would prevent human impact on global climate
change. The nations that signed the treaty come together to make deci-
sions at meetings called Conferences of the Parties. The 38 parties are
grouped into two groups, developed industrialized nations and develop-
ing countries. The Kyoto Protocol, an international agreement reached
in Kyoto in 1997 by the third Conference of the Parties (COP-3), aims
to lower emissions from two groups of three green house gases: carbon
dioxide, methane, and nitrous oxide and the second group of hyrdofluo-
rocarbon (HFC): sulfur hexafluoride and perfluorocarbons.

INDOOR AIR QUALITY STANDARDS

Indoor air quality (IAQ) is an emerging issue of concern to build-

ing managers, operators, and designers. Recent research has shown
that indoor air is often less clean than outdoor air and federal legisla-
tion has been proposed to establish programs to deal with this issue on
a national level. This, like the asbestos issue, will have an impact on
building design and operations. Americans today spend long hours in-
side buildings, and building operators, managers, and designers must
be aware of potential IAQ problems and how they can be avoided.
IAQ problems, sometimes termed "sick building syndrome," have
become an acknowledged health and comfort problem. Buildings are
characterized as sick when occupants complain of acute symptoms
such as headache, eye, nose, and throat irritations, dizziness, nausea,
sensitivity odors, and difficulty in concentrating. The complaints may
become more clinically defined so that an occupant may develop an
actual building-related illness that is believed to be related to IAQ
problems.
The most effective means to deal with an IAQ problem is to re-
move or minimize the pollutant source, when feasible. If not, dilution
and filtration may be effective.
The purpose of ASHRAE Standard 62 is to specify minimum ven-
tilation rates and indoor air quality that will be acceptable to human
occupants and are intended to minimize the potential for health effects.
12 Handbook of Energy Engineering

ASHRAE defines acceptable indoor air quality as the air in which there
are no known contaminants at harmful concentrations as determined
by cognizant authorities and with which a substantial majority, 80%
or more, of those exposed do not express dissatisfaction.
ASHRAE Standard 55 for thermal environmental conditions for
human occupancy covers several environmental parameters including:
temperature, radiation, humidity, and air movement. The standard
specifies conditions in which 80% of the occupants will find the envi-
ronment thermally acceptable. This applies to healthy people in normal
indoor environments for winter and summer conditions. Adjustment
factors are described for various activity levels and clothing levels.
The International Performance Measurement and Verification
Protocol ( I P W P) is used for commercial and industrial facility opera-
tors. The I P W P offers standards for measurement and verification of
energy and water efficiency projects. The I P W P volumes is used to
first, develop a measurement and verification strategy and plan for
quantifying energy and water savings in retrofits and new construc-
tion. Second, monitor indoor environmental quality and third, quantify
emissions reduction. (www.evo-world.org)

REGULATORY AND LEGISLATIVE ISSUES IMPACTING COGEN-

ERATION AND INDEPENDENT POWER PRODUCTION

Public Utilities Regulatory Policies Act (PURPA)

This legislation was part of the 1978 National Energy Act and
has had perhaps the most significant effect on the development of
cogeneration and other forms of alternative energy production in the
past decade. Certain provisions of PURPA also apply to the exchange
of electric power between utilities and cogenerators. PURPA provides a
number of benefits to those cogenerators who can become Qualifying
Facilities (QFs) under this act. Specifically, PURPA
Requires utilities to purchase the power made available by co-
generations at reasonable buy-back rates. These rates are typically
based on the utilities’ cost
Guarantees the cogeneration or small power producer interconnec-
tion with the electric grid and the availability of backup service
from the utility
Codes, Standards 1.9Legislation 23

Dictates that supplemental power requirements of cogeneration

must be provided at a reasonable cost

Exempts cogenerations and small power producers from federal

and state utility regulations and associated reporting requirements
of these bodies

In order to assure a facility the benefits of PURPA, a cogenera-

tor must become a Qualifying Facility. To achieve Qualifying Status, a
cogenerator must generate electricity and useful thermal energy from a
single fuel source. In addition, a cogeneration facility must be less than
50% owned by an electric utility or an electric utility holding company.
Finally, the plant must meet the minimum annual operating efficiency
standard established by the Federal Energy Regulatory Commission
(FERC) when using oil or natural gas as the principal fuel source. The
standard is that the useful electric power output plus one half of the
useful thermal output of the facility must be no less than 42.5% of the
total oil or natural gas energy input. The minimum efficiency standard
increases to 45% if the useful thermal energy is less than 15% of the
total energy output of the plant.

Natural Gas Policy Act

The Natural Gas Policy Act created a deregulated natural gas mar-
ket for natural gas. The major objective of this regulation was to create a
deregulated national market for natural gas. It provides for incremental
pricing of higher cost natural gas to fluctuate with the cost of fuel oil.
Cogenerators classified as Qualifying Facilities under PURPA are exempt
from the incremental pricing schedule established for industrial custom-
ers.

Public Utility Holding Company Act of 1935

The Public Utility Company Holding Act of 1935 authorized the
Securities and Exchange Commission (SEC) to regulate certain utility
“holding companies” and their subsidiaries in a wide range of corporate
transactions.