RTF Costs and Benefits Standard Information Workbook

1. EES Consulting RTF Costs and Benefits Standard Information Workbook RTF Meeting January 23, 2013 Kevin Smit 425-889-2700 x247 A registered professional engineering corporation with officesin the Seattle and Portland metropolitan areas Telephone (425) 889-2700 Facsimile (425) 889-2725

2. Standard Information Workbook (SIW) • Objective: To develop regionally representative costs and non-energy benefit data that are common across multiple measures • These costs are recorded and documented in the SIW (Excel Workbook) • Can be used as a common resource (and repository) for those developing new or revised measures • Provide a consistent platform for cost data and analysis • Provides automatic conversion from data-year dollars to base-year dollars using Council’s GDP deflator

3. Progression of SIW • Contract awarded in August, 2012 • EES continually contacted sources and collated data • RTF staff met with EES several times between August and November to walk through approach and review draft versions of SIW • Numerous rounds of RTF Staff review for workbook structure, data sources, analysis methodology, and content • Presenting to RTF to gain feedback before adopting to use across multiple measures

4. SIW Contents

5. Contributors • Ted Light, ETO – Insulation, Windows, etc., etc. • Mark Jerome, Fluid– Heat Pumps • Graham Parker, PNNL – Windows • David Thompson, Avista – CFLs • Jenna Canseco, dnvKEMA (for NEEA) – CFLs • Josh Brown, Fluid (for NEEA) – HPWH • David Hales, WSU (Heat Pump Commissioning) • RTF Staff: Nick, Tom, Charlie

6. SIW General Structure • Each Workbook follows the same general outline: • Description • Method • Sources • Results • Analysis • Data

7. Workbook Review • RTF Standard Information Workbook

8. RTF Cost Guidelines • Reference: Guidelines for the Development and Maintenance of Incremental Measure Costs and Benefits Estimates (March 2012) • The guidelines recommend the following estimation approaches and one or more of these were used in each of the worksheets: 1. Averages (arithmetic mean) 2. Weighted average 3. Median 4. Regression modeling 5. Lower quartile 6. Built-up cost estimates

9. Estimation Method: Weighted Average, same as before Source: NEEA 2011-2012 shelf survey results (KEMA, 2012) NEEA conducts annual shelf surveys for CFL’s Cost data net of incentives were provided separately by NEEA (not in the report) Impact:Compares well with current $3.50 CFL Prices

10. Estimation Method: median values from utility database, same as before Source: ETO data set Issue:Tried numerous regressions, but poor results SF Insulation

11. Estimation Method: Used average values, same as before Source: ETO data set (N=61) Issue:Smaller sample size than Single Family MF Insulation *New dataset had a sample size of 3. Recommended using the existing value ($0.76/sf.), or finding additional data)

12. Estimation Method: Lower quartile approach, same as before Source: Energy Trust database (N=2800) Issue: There is little or no cost data for the baseline window (U35). Currently using U34 window from Lowes plus installation (Total=$21.55/sf). Impact: New costs are higher SF Windows

13. Estimation Method: Median installed cost per square foot, same as before Source: Energy Trust database (N=82) Issue: New MF values use same upgrade assumptions and costs as SF. Impact: replacement costs are lower, upgrade costs are higher. MF Windows

14. Estimation Method: Built-up cost estimates, same as before Source: Contractor bid (Mark Jerome) Performed regression analysis on a utility data set, but poor correlation (i.e., low R-square) Issue: Single Source used in analysis Impact: Slight increase over current costs for SF, decrease for MH upgrades Heat Pumps

15. Estimation Method: Single family job cost based on Median value of utility data set. Source: Energy Trust data set (N=2800) Issue: Multifamily job cost is based on the incentive level ($300). Actual costs are not recorded, but most jobs are performed for the incented amount. PTCS Duct Sealing

16. Estimation Method: Built-up estimates, same as before Source: Mark Jerome and David Hales for heat pump commissioning cost ($225 in 2012$) Issue: Sizing is based on the incremental costs of heat pumps from the heat pump measure (same approach as existing workbook) PTCS Heat Pump Commissioning

17. Estimation Method: Median value and retail price Source: Tier II costs are based on the median value of the NEEA data set (N=60) Tier I costs are based on retail prices from Sears, Home Depot, and Lowes Impact: Costs have come down for Tier 1 and up for Tier 2 Heat Pump Water Heater

18. Estimation Method: Regression analysis of retail units (Lowes, Home Depot, Sears). Source: Retail price sheets Issue: Initially tried regression analysis of a utility data set, but R Square was very low. Impact: Costs are lower than current workbook. Efficient Water Heater

19. Next Steps • Collect any comments or feedback (or new sources) • Make changes to SIW if necessary • Adopt workbook for use at next meeting • Continue to update and add material to workbook RTF Staff Nick O’Neil noneil@nwcouncil.org 503-222-5161 EES Consulting Kevin Smit smit@eesconsulting.com 425-889-2700 x247