Honeywell in the Energy Conservation Mix

September 10, 2007
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Honeywell is in the process of helping both New Jersey and Minneapolis in implementing aggressive energy conservation programs.

In Minneapolis, Honeywell recently joined forces with the Minneapolis Public Housing Authority (MPHA) in the effort to help the housing authority cut utility costs, improve its facilities, and reduce its impact on the environment. The program is to feature renewable energy and green building technologies, combined with a variety of traditional infrastructure upgrades.

“Most of our properties are more than 40 years old, with the original heating and cooling equipment still in place. So there is definitely room for efficiency improvements,” said Cora McCorvey, executive director of the MPHA. “However, we want to make changes in an environmentally and economically responsible way. We hope to set an example for housing providers throughout the nation with this program.”

Honeywell is in the process of auditing all of the MPHA facilities. This includes high-rise apartments, single-family homes, and offices - almost 800 buildings in total. The company said it will then recommend specific energy conservation measures, and work with MPHA to develop and implement a final list of projects.

The energy savings that result from the improvements, which are guaranteed by Honeywell, will pay for the work. As a result, the program should not add to the housing authority’s budget or require additional taxpayer dollars.

Honeywell said it helps customers reduce energy consumption - and decrease associated greenhouse gas emissions - by more than 15 percent on average through this type of program.

“We’re focused on building a more ecologically sustainable city,” said Minneapolis Mayor R.T. Rybak. “And the efforts from MPHA and Honeywell are an important step in meeting the city’s renewable energy and carbon dioxide reduction goals. The end result will be an even better, healthier place to live and work.”

The program is expected to have a significant emphasis on renewable energy. Honeywell and MPHA will examine technologies like biomass gasification to provide a sustainable energy source for heating facilities. The organizations also will incorporate green facility improvements into the mix. For example, the high-rise apartment buildings may be good candidates for “green roof” systems, designed to lower the surface temperature of a roof by covering it with organic plant material. According to Honeywell, this significantly reduces water runoff and cooling costs.

Standard infrastructure improvements, such as upgrading HVAC systems, sealing buildings to reduce the loss of hot and cool air, and installing new lighting fixtures, will be part of the program as well.

“Based on a recent assessment, we have identified in excess of $200 million in needed facility improvements,” said Emilio Bettaglio, director of facilities and development, MPHA. “This program will make a sizeable dent in that need and, because it is funded through energy savings, it will allow us to focus available capital on other projects.”

MPHA, the largest housing provider in Minnesota, said it selected Honeywell from four energy services companies based on its ambitious preliminary scope of work and renewable energy expertise. As a result of the improvements, MPHA said it hopes to achieve Energy Star accreditation from the U.S. Environmental Protection Agency (EPA) and U.S. Department of Energy (DOE). It would be one of the first in the public housing industry to receive this accreditation.

In addition, Honeywell plans to involve MPHA residents in the program, soliciting their input on needed improvements, educating them on energy conservation practices, and creating employment opportunities during the construction phase.

Honeywell said it expects to finish the audit and begin the upgrades in 2008.

“By combining energy-efficient upgrades and renewable energy sources, we can help MPHA address several long-term needs and reduce its environmental footprint - without increasing operating budgets,” said Joe Puishys, president of Honeywell Building Solutions. “This benefits not only the housing authority and its residents, but makes an impact on the community as a whole.”



HELPING IN NEW JERSEY, TOO

Honeywell also signed a $42 million, 27-month contract to implement and help manage portions of the New Jersey Clean Energy Program™, considered one of the largest energy conservation programs in the United States. Under the contract, Honeywell Utility Solutions is to handle marketing, customer service, training, quality assurance, rebate and incentive processing, and reporting for the Renewable Energy and Residential portions of the program.

The Clean Energy Program provides financial and other incentives to New Jersey home-owners, businesses, and schools that install high-efficiency or renewable energy technologies. To date, the program has proved that when consumers rely on these technologies, natural gas and electricity use decreases, lowering utility bills and reducing environmental impact.

According to a release issued by Honeywell, the New Jersey Clean Energy Program is expected to cut gas consumption by more than 1.5 million decatherms and reduce electricity use by more than 1 million megawatt-hours over the next two years. The manufacturer said this is enough energy to power almost 100,000 homes for a year.

The program is also designed to help spur the development of an estimated 220 MW of electricity through the installation of solar photovoltaics and other renewable energy technologies in the same timeframe. According to program authorities, these installations will help the Garden State avoid 630,000 metric tons of carbon dioxide emissions over the lifetime of the solar equipment, which is approximately 25 years.

“Since the Clean Energy Program was launched in 2001, our objective has been to transform the energy marketplace in New Jersey toward more energy-efficient and renewable-energy technologies,” said Jeanne M. Fox, president of the New Jersey Board of Public Utilities (BPU), which leads the program with oversight by the BPU’s Office of Clean Energy.

“We are committed to the continued success of the program, and look forward to working with Honeywell so utility customers in the state can reduce their energy use, save on energy costs and contribute to the state’s overall efforts to ensure an environmentally sound New Jersey future.”

In 2006, the Clean Energy Program said it provided more than $170 million in financial and other incentives for residents, businesses, municipalities, and other organizations that installed energy-efficient and renewable technologies, including solar electricity, wind, and sustainable biomass systems.

Specific initiatives that Honeywell said it will manage under the renewable energy segment of the program include:

CORE Rebate Program: This program offers rebates and tax credits for implementing renewable energy technologies like solar panels, wind turbines, and biomass systems.

Clean Energy Financing: This program is designed to make investments in renewable energy systems and energy-efficient equipment more affordable and cost-effective for businesses.

Solar Renewable Energy Certificate Program: Honeywell said this program is designed to offer individuals and businesses a way to invest in renewable technologies through tradable certificates that represent clean energy benefits generated from solar-produced electricity.

CleanPower Choice Program: This program is designed to allow individuals and organizations to sign up for clean power sources directly through their local utility.

Residential initiatives under the Clean Energy Program include:

Home Energy Analysis: This is designed to provide homeowners with a customized home energy audit to help identify energy-saving opportunities.

WARMAdvantage and COOLAdvantage: These two programs offer rebates for high-efficiency residential heating and cooling equipment.

Home Performance with Energy Star®: This program gives homeowners access to participating, certified, energy-conscious building contractors, who are to provide homeowners with improved energy efficiency and comfort.

Energy Star Products: This program is designed to provide outreach, education, and incentives to retailers to help them change stocking practices on items such as light bulbs, light fixtures, appliances, and windows, said Honeywell.

“We’re pleased to extend our work with the New Jersey Clean Energy Program, which started with Comfort Partners, an energy-affordability initiative for low-income residents,” said Kent Anson, vice president of global energy for Honeywell Building Solutions. “In 2006, Comfort Partners helped 8,500 residents reduce energy costs and cut carbon dioxide emissions by more than 9,300 metric tons. We look forward to bringing similar benefits to more homeowners and businesses through other parts of the program.”

For more information regarding the New Jersey Clean Energy Program, visit www.njcleanenergy.com. For more information about Honeywell Utility Solutions, call 800-345-6770, ext. 615, or visit www.honeywell.com/utility.



Sidebar: Coast Guard Upgrade

Honeywell will be upgrading building systems and cutting energy costs and greenhouse gas emissions at nine U.S. Coast Guard locations across California, Hawaii, Oregon, and Washington. The improvements, which include innovative solar-powered utility metering and hot-water technology, are expected to help the Coast Guard reduce its utility bills for these locations by more than 15 percent, said Honeywell.

According to Honeywell, the 11-year, $15.1-million conservation program will impact 2.2 million square feet of space across more than 250 buildings. The work is to be funded by the energy savings the facility improvements are to generate. Honeywell said it guarantees the savings through a performance contract so the work should not increase Coast Guard operating budgets or require additional taxpayer dollars.

This is Honeywell’s second performance contract with the Coast Guard since 1999.

“This program will allow us to improve facilities and reduce energy costs with no upfront capital investment,” said Commander Tom Hickey with the U.S. Coast Guard. “As a result, we’re able to devote more resources to mission-critical assets, such as boats and aircrafts, which allow the Coast Guard to better perform its duties.”

The program is also scheduled to deliver environmental benefits, along with the cost savings. For example, the conservation measures are expected to reduce annual carbon dioxide emissions by more than 7.5 million pounds, said Honeywell. According to figures from the U.S. Environmental Protection Agency (EPA), this is equivalent to removing almost 750 cars from the road or saving nearly 400,000 gallons of gasoline per year.

Under the new contract, Honeywell will implement a comprehensive energy management system across most of the Coast Guard’s facilities on the West Coast using Honeywell Enterprise Buildings Integrator™ and Honeywell Energy Manager. This is designed to provide centralized building systems control, as well as real-time reports on energy use and cost savings. This is supposed to help the Coast Guard drive ongoing operational improvements. The management system will gather the data for the reports from a solar-powered network of wireless utility meters, said Honeywell.

Throughout the buildings, Honeywell is scheduled to put in modern boilers and chillers, high-efficiency motors for HVAC systems, and almost 1,500 high-efficiency toilets and faucets. In addition, the company is scheduled to install more than 170 solar collectors for hot-water generation; retrofit the Coast Guard’s existing light fixtures and compressed air systems used for buoy maintenance; and add daytime lighting, such as skylights, for improved energy efficiency.

Honeywell also will provide ongoing measurement and verification services, as well as continuous training so rotational Coast Guard staff know how to operate the energy management and metering technology.

The current work builds on projects completed under the initial contract awarded in 1999, which focused on the Coast Guard’s Alameda, Calif., facility. According to Honeywell, that $1.5-million program exceeded the savings guaranteed in the contract by 12 percent. It also helped capture more than $170,000 in utility incentives and rebates to further lower costs, the company said.

“As one of our largest efforts in terms of scope and complexity, the work with the Coast Guard demonstrates how our energy conservation expertise helps customers cut operational costs and reduce their environmental impact,” said Kent Anson, vice president of global energy for Honeywell Building Solutions. “This type of program is an ideal way for organizations to achieve energy savings and upgrade their infrastructure without detracting from their primary focus.”

Publication Date: 09/10/2007

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