CWEB.061/January.30.2001
The world's single biggest wind-energy facility will soon rise in the Pacific Northwest, following the Jan. 10 announcement that PacifiCorp will buy all the output from the 300-megawatt-capacity Stateline Wind Project.
A February construction start is planned for Stateline, which FPL Energy will build and operate on a ridge along the Oregon-Washington border near where the Columbia River bends west toward the Pacific Ocean. Most of the electrons should begin flowing before year's end for PacifiCorp subsidiary PacifiCorp Power Marketing, which plans to market the energy as wholesale green power.
This landmark venture signifies the regional emergence of wind as an economically competitive large-scale renewable energy resource. Stateline is touted as a contributing solution to power-supply woes, and a significant benefit to local landowners and local governments. It may also accelerate the burgeoning interest in Northwest wind-energy development. (see related story for more thoughts on Stateline's impact.)
"This is wind power on a grand scale," said PPM president Terry Hudgens in a news release. "Stateline is a watershed event for our company and for the region. With Stateline, wind is no longer just a small niche in our supply, but has taken a position as a very real and significant part of the new electric resources the region badly needs."
Stateline has earned Walla Walla County approval for the 200-MW portion in Washington, while the 100-MW portion planned for Oregon still requires endorsement from the state's Energy Facility Siting Council; if approved, FPL Energy would then start construction in Oregon's Umatilla County.
FPL Energy/PacifiCorp Agreement
FPL Energy developed the nearby Vansycle Ridge Wind Farm, a 24.9-MW-capacity venture whose output flows to Portland General Electric. ( See Con.WEB, Dec. 22, 1998, for more on Vansycle Ridge). The company--a subsidiary of FPL Group, which includes Florida Power & Light--is reportedly the nation's largest wind developer, with 845 MW of capacity, according to a Stateline brochure.
FPL Energy had discussed power sales from Stateline with at least two entities: PacifiCorp and Bonneville Power Administration. These talks culminated in January's news of a deal with PacifiCorp Power Marketing, an unregulated subsidiary of PacifiCorp.
PPM agreed to a 25-year purchase for Stateline's entire output. With a capacity factor forecast in the range of 35 percent, the project at full capacity should generate roughly 100 aMW annually. "I think there are a number of entities out there who are going to be interested in the green energy products," said PacifiCorp spokesman Dave Kvamme. "We're going to have dialogues with different utilities that may want a variety of different kinds of products, from 100-percent wind to something that's shaped by hydro to something shaped by other kinds of resources."
One of those interested is BPA. "We are negotiating with PacifiCorp to buy [some of] the output," confirmed Bonneville's George Darr. The federal power marketing agency is "looking at between 90 and 120 megawatts of the 300," he said, for about 30 to 40 aMW annually. "It will end up in our green portfolio and be sold in various ways," he said. BPA also will provide transmission access for Stateline, and, according to Kvamme, may also furnish hydropower for load-shaping purposes. "Hydro is really the ideal resource for filling in those valleys that occur when wind energy is variable," he said.
Stateline's energy costs were not specifically disclosed, although Kvamme indicated they would fall within a range of 3 cents to 5 cents per kilowatt-hour, incorporating a 1.7 cents/KWh federal production tax credit available for wind projects operating by Dec. 31, 2001.
"We think it's going to be competitive with other new resources that are coming on-line," said Kvamme. "That's at least part due to the fact it's built on a scale that allows for some economies." Darr estimated a 300-MW wind farm could produce power for roughly half the cost of a 30-MW project, given more favorable purchasing arrangements for turbines and similar costs for transmission and operations.
FPL Energy has full responsibility for project financing, construction and operations, while PPM has entered into a long-term power-purchasing agreement in the midst of extreme volatility in Western electric markets. "Any project like this carries a certain amount of risk," acknowledged Kvamme. "Certainly the developer felt they were sharing in the risk when we agreed to buy 100 percent of the output. That made it possible to size the project at this robust size . . . We think it's going to be a very attractive resource over the long haul, on a wholesale basis, and we're quite hopeful we can put together a portfolio of green energy products that will be attractive to utilities, and we'll be able to sell it, with any luck at all."
PacifiCorp's regulated utility has committed, separately, to develop an additional 50 MW of renewables as part of its merger with ScottishPower. "It's almost certainly going to be wind," said Kvamme, although no specifics have yet been determined.
Permitting, Local Impacts
Stateline in mid-November earned a key conditional-use permit from the Walla Walla County Regional Planning Commission for the Washington side, after extensive review including an Environmental Impact Study.
"Walla Walla County was very receptive to this project," said FPL Energy consultant Robert Kahn. A recent public hearing drew only one naysayer, he noted, and even the Blue Mountain Audubon Society has given tacit approval. FPL Energy conducted "unprecedented" nighttime radar studies, along with daytime visual inspections, on migratory birds. The nighttime work will continue this spring, and could lead to additional turbines, according to Kahn. In addition, Stateline's impacts on birds and bats will be monitored once commercial operation begins.
Meanwhile, the Oregon EFSC received FPL Energy's permit application in early January, according to EFSC secretary David Stewart-Smith. The agency will conduct a consolidated licensing process on behalf of state and local governments, which should conclude within six months after the Council deems the application complete. FPL Energy and EFSC representatives have discussed Stateline for more than a year, and the company should know the requirements, according to Stewart-Smith. "If they get to this point and get an application into us and they believe they can meet our standard, then they stand a pretty good chance of getting successfully through this process," he said.
In addition to its 172-acre physical "footprint," Stateline also will create economic impacts, according to the project brochure. About 10 percent of the $300 million venture is expected to be spent locally. Landowners will be paid for leasing property, while local governments will earn significant property tax revenues. Construction employment is forecast to average 150 workers, peaking at 350 this summer, and permanent staff will number up to 25 people.
A Few Project Details
At full capacity, some 450 turbines are envisioned to convert wind into enough electricity to serve an estimated 70,000 homes. FPL Energy plans to erect 660-KW-capacity turbines made by the Danish firm Vestas. "There are more of those specific turbines in the world than any other, by far," according to Kahn, who called the V47 model "the flagship turbine for the industry." Featuring three blades that adjust to the wind and speed-variation capabilities to cope with high winds, this type of turbine also spins at Vansycle Ridge a few miles to the east of Stateline.
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| Stateline Wind Project will have the same developer and turbine type as Vansycle Ridge Wind Farm, shown here. Photo by Mark Ohrenschall |
Stateline shares similar wind-resource characteristics as Vansycle, with average wind speeds of about 17 mph. Kahn called it "a good to excellent site," with close proximity to existing transmission lines. The project will occupy private land, and farming and ranching can continue virtually uninterrupted around the project infrastructure.
The infrastructure will include concrete-mounted turbines with 77-foot-long blades atop 165-foot-high tubular towers, 18 miles of underground cable, a substation west of Touchet, WA, two new overhead transmission lines to send power from the substation to the regional grid, and an operations and maintenance building. Stateline will lead to improvements in 18 miles of existing farm roads, according to the project brochure, and create 28 miles of new gravel roads.
"This project will be as beautiful, aesthetically, as a wind farm can be," said Kahn. Visually it will feature "arguably the most beautiful turbine . . . all in the same line of sight, following the contours of the ridge line," with connecting power lines all underground. "This is not Altamont; this is not Tehachapi; this is not Palm Springs," he said, referring to three noted California wind-farm locales. "This is different . . . It doesn't mean everyone will love it," he acknowledged. "It's a matter of personal taste. Some people will think it's ugly [but] we can expect to have a project that's a model in terms of its visual impact."
--Mark Ohrenschall
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A new Northwest landmark will soon rise out of the wheat fields and grazing lands high atop a windy ridge along the Washington-Oregon border.
The Stateline Wind Project (see related story for details) carries many distinctions.
At 300 megawatts capacity, Stateline will be the single-largest wind-energy facility in the world, and will roughly triple the Northwest's current energy production capability from the wind.
When fully built, Stateline will bring substantial amounts of new power to the severely stressed Western grid--an estimated 100 average megawatts annually. It affirms wind's viability as a large-scale energy resource for the region.
Stateline represents a cost-effective renewable-energy application, touted as competitive in price with the electric industry's current favorite, natural gas-fired power--and with no fuel costs, it promises long-term stable prices. Stateline also promises substantial economic gains for its rural hosts in northeastern Oregon and southeastern Washington, specifically in leasing income for landowners, tax revenues for local governments, and jobs for local residents.
Stateline demonstrates that wind-energy projects can earn broad local support, despite their impacts on scenery and (potentially) birds. And it signifies the emergence of a burgeoning wind-energy industry in the Northwest, both in development and green-power purchasing.
Stateline Quotes
Following are some quotes about Stateline, culled from news releases and interviews:
Big and Cost-Effective
Stateline has garnered widespread attention for its sheer size. "The most noteworthy thing is it's a fairly bold project in terms of the magnitude," said King. "There hasn't been anything else done on this scale."
Indeed, Stateline at full capacity will exceed any single wind-energy project, anywhere in the world, owned and operated by a single entity, with the output purchased by a utility, according to Christine Real de Azua of the American Wind Energy Association.
Stateline fits with a trend toward larger wind facilities, she noted. "In a country like the U.S., where you have comparatively much more land available in windy areas, it makes a lot of sense to go ahead and make these projects as large as you can. Then you have these economies of scale." Such economies make a huge difference, according to Bonneville Power Administration's George Darr--cutting power costs roughly in half for a 300-MW project compared to a 30-MW venture, factoring in better deals for turbine purchases and similar costs for transmission and operations. "Wind power is becoming more and more competitive [in price] . . . PacifiCorp is not buying this because they're losing money on it," said Darr.
PacifiCorp spokesman Dave Kvamme indicated Stateline's energy costs would fall between 3 cents per kilowatt-hour and 5 cents/KWh, incorporating a 1.7 cents/KWh federal production tax credit. "We think it's going to be a very attractive resource over the long haul, on a wholesale basis, and we're quite hopeful we can put together a portfolio of green energy products that will be attractive to utilities, and we'll be able to sell it, with any luck at all."
PacifiCorp's 25-year purchase commitment for Stateline power caught King's eye, as a length of time "way out of scale for what you're seeing these days" in energy markets. Financiers will favorably note the long-term agreement, he added. But King also cautioned that Stateline carries risks, including turbine performance--"I don't know any wind farm in the world where the equipment has operated for that period; it would be unprecedented"--and for PacifiCorp, the question of whether the market will support that amount of green power.
RNP's Shimshak believes Stateline reflects a natural progression from previous smaller projects in the region, which demonstrated wind energy's successful operation and market support. "It shows that renewables are ready," she said. "They will contribute clean energy and help provide a solution to our current crisis." Kvamme also cited Stateline's role in expanding regional power capacity, as well as diversifying new resources beyond natural gas-fired power plants.
Local Support
In addition, Stateline has earned local support--in contrast to some other proposed regional wind ventures panned for their prospective impacts on local views, birds and/or cultural resources. "It shows a wind project can win community acceptance," said Darr. BPA had talked with developer FPL Energy about buying Stateline output, and conducted public meetings in the local communities of Touchet and Helix. "The people were all familiar with Vansycle [Ridge, a nearby wind project] . . . The reception was just so warm." Farmers like the royalty payments, and the broader community benefits from increased property tax revenues "without making a lot of impacts on local services.
"One of the lessons," Darr continued, "is wind power has won some friends in the Northwest, and that's allowed FPL Energy to expand that project." FPL Energy consultant Kahn envisions Stateline as a point of interest for tourists.
Shimshak and others believe Stateline has enhanced the Northwest's growing reputation for wind power. "Because of the presence of this project, it has attracted a variety of other developers to the region, because they understand the resource is available here and the region is interested in renewable power," said Shimshak. "I hope there will be more competition in the market that will result in good projects." Darr reported that one recent week he fielded an average of two phone calls a day from would-be wind developers, either private companies already in the business or landowners with windy properties wondering about selling wind energy to Bonneville.
One huge uncertainty swirling around wind development in the Northwest and across the country is the fate of the current 1.7 cents/KWh federal production tax credit, which expires at year's end. "The outlook is pretty good" for a renewal by Congress, according to AWEA's Real de Azua, although she acknowledged "nobody knows" the ultimate outcome. Energy supply shortfalls would argue in favor of an extension, King said, although high energy prices also raise the question of whether such an incentive is necessary.
In any case, the tax credit is widely considered vital to consistent wind-energy development. "That's what makes it work," said King.--Mark Ohrenschall
Wind energy can generate clean electricity as well as substantial economic benefits for rural communities, according to a new report from the advocacy group Climate Solutions.
Wind farms on rural land can earn more money per acre for farmers and ranchers than many traditional agricultural activities, while generating tax revenues for local governments and jobs for local residents.
"Far from the jobs vs. environment controversies that have wracked rural areas, particularly in the Northwest, this is a case of an environmentally beneficial form of economic development that provides new employment, income and revenues," according to "Harvesting Clean Energy for Rural Development: Wind." "Rural communities all too often have felt their economic life blowing away with the dust. Now the wind carries new opportunities to renew rural America as a primary provider of the clean energy that will ensure a sustainable future for urban and rural communities alike."
The report offers specific examples from around the country, including Oregon's Vanscycle Ridge Wind Farm, which provides more than $1,500 per turbine in annual leasing income to the landowner and pays almost $250,000 in yearly property taxes.
The report written by Climate Solutions' Patrick Mazza suggests 12 steps to promote Northwest rural wind energy, including streamlined siting, guaranteed payments to producers, public-purposes funding, renewable portfolio standards, public-agency and retail customer wind purchases, and offsetting carbon emissions from fossil-fuel generating sources with wind development.
Wind as Rural Economic Development
Climate Solutions wanted to examine clean energy as an economic development strategy in the hinterlands, fitting with the group's mission to offer solutions that make environmental and dollar sense.
"A lot of the rural areas really have not shared in the prosperity that has come to the urban areas" in the Northwest, Mazza told Con.WEB. And environmentalists are often viewed suspiciously in the countryside as "trying to undermine . . . traditional rural resource industries. There are tensions there, no doubt about it." Yet he also sees "really good possibilities for win-win situations. One of course is wind."
Rural landowners typically earn between $1,500 and $2,000 per turbine each year in leasing income, according to the report. And each turbine generally displaces only two acres or less of productive agricultural land. "With earnings on many major farm commodities running $100/acre or under, the attraction of harvesting the wind is obvious," the report said.
Local governments, meanwhile, realize significant revenues: each kilowatt of installed capacity equals about $1,000 of tax base, according to the report, and wind developments generally pay 1 to 3 percent of their value each year in property taxes. That can bring in three times as much in property tax payments as gas-fired turbines.
A 75-megawatt-capacity wind farm can employ about 200 workers during construction, as well as crews (numbering 20 for an Iowa facility) for ongoing operations. "For a rural area, that is a small but significant job base," Mazza writes.
"Harvesting Clean Energy" cites the Royal Raymond family's 4,000-acre wheat and cattle operation north of Pendleton, OR. The Raymonds host 28 turbines for the Vanscycle Ridge wind project, and earn in the range of $1,500 to $2,000 annually per turbine. "The income we receive from leasing amounts to considerably more than we could make off farming," Raymond said.
Vansycle Ridge also contributes $244,000 each year in property taxes for county government, and local schools, parks, library and fire protection services.
"I think rural areas are only starting to realize" the potential economic boon from wind-energy development, said Mazza. Around the globe wind capacity has grown an average of 32 percent each year since 1995, and, according to the report, "The market shows no signs of slowing down." Declining costs, technological advances, public policies, customer choice and environmental considerations all are listed as contributors to the wind boom.
Opportunities, Obstacles and Recommendations
The Northwest already hosts Vansycle Ridge, and is indirectly served by another rural wind-energy venture in Wyoming co-owned by PacifiCorp and Eugene Water & Electric Board. Now comes the immense 300-MW-capacity Stateline project (see related story), near Vansycle. "There's just huge potential out there in the Northwest," said Mazza. A map in the report shows good or excellent wind resources throughout much of the region, although some of it (such as wilderness areas and national parks) is not developable.
"Harvesting Clean Energy" acknowledges several obstacles for wind energy, notably visual impacts and bird kills. But it describes windmills as a traditional feature of the rural landscape, and suggests they are thus more acceptable to local residents. Avian impacts, meanwhile, can be mitigated by turbine design and careful studies of bird populations.
Wind farms also create noise, and bring crews onto farm lands, but Mazza believes these are manageable problems. "The downsides, as compared to almost any other crop they're working with, are pretty minimal," he said. Any financial risks are modest, he added, given the substantial resources behind many wind-development companies, such as FPL Energy and Enron.
Although the common model involves leasing or selling rural land to wind companies, farmers and/or ranchers can erect their own turbines, either individually or as "distributed wind clusters," according to the report. Such cooperative ventures have emerged as a viable option in Europe, with its scarce land and dense population. The United States and its wide-open spaces tend to favor large installations, the report notes. Yet it cites examples of distributed wind facilities in Iowa, Nebraska and South Dakota, and outlines advantages such as increased power-grid efficiency, reduced visual impact and broader selection of suitable turbine sites.
Mazza believes the distributed model could potentially earn more money for rural residents than leasing land.
The report concludes with a dozen specific recommendations to spur wind energy in the rural Northwest. Among them: pre-approved siting for project expansions, standard power purchase contracts, a Northwest Rural Clean Energy Resource Center, guaranteed payments for wind-energy producers, public-purposes funding, renewable portfolio standards, purchasing by government agencies, green-power options for consumers, and requirements for gas-turbine developers to offset carbon emissions with the likes of wind power.
Climate Solutions also helped stage a Jan. 29-30 conference in Spokane covering opportunities for rural clean energy development, including wind, solar, biomass and geothermal.--Mark Ohrenschall
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Green building will become standard institutional practice for the city of Portland under a new policy adopted unanimously Jan. 10 by the City Council.
Portland's policy mandates green building practices for new construction and major retrofits undertaken by the city, and projects undertaken by the city's Portland Development Commission. The policy, some two years in the making, also seeks to encourage green building by the private sector.
Portland's action means the Northwest's two largest cities have enacted green building policies for municipal facilities; Seattle adopted its green guidelines for new and substantially remodeled city-owned buildings in early 2000 ( see Con.WEB, March 28, 2000).
"This policy is the City of Portland's emphatic statement that it will not contribute to the environmental degradation associated with traditional building practices or construct inefficient, resource-depleting facilities that threaten people's health and productivity," said city commissioner Dan Saltzman in a news release. Mayor Vera Katz said the policy "will increase the long-term performance and cost effectiveness of our faciities and make them safer and more affordable to inhabitants."
Portland officials acknowledge generally higher initial costs to pursue green building--typically in the range of 1 to 5 percent--but they believe such practices will lead to "impressive utility and other operational cost savings over the life of such buildings." The city expects to annually conserve 8 million gallons of water, 10 million kilowatt-hours of electricity and 170,000 therms of natural gas, while cutting utility bills by $1 million a year.
"Just as the city has protected the Urban Growth Boundary and invested in light rail and affordable housing, it is now leading the way in promoting sustainable development," said director Susan Anderson of the city's new Office of Sustainable Development.
Walking The Green Building Talk
The official policy statement summarizes the city's intentions: "The City of Portland shall incorporate green building principles and practices into the design, construction and operations of all City facilities, City-funded projects, and infrastructure projects to the fullest extent possible. Furthermore, the City will provide leadership and guidance to encourage the application of green building practices in private sector development. This policy is expected to yield long-term cost savings to the City's taxpayers due to substantial improvements in life-cycle performance and reduced life-cycle costs."
Portland calls building and development "main contributors" to a host of environmental ills. "The built environment represents a major opportunity for the City, along with local designers, engineers, developers, builders, lenders, appraisers, and other sectors of the building trades, to address local and global environmental degradation . . . Green building practices provide the framework and tools to build in an efficient, healthy and ecologically responsible manner." This will help promote Portland's environmental policies, conserve resources, save money for building owners and tenants, improve indoor air quality, help reduce public infrastructure costs related to development, and create new local industries and jobs, according to the policy statement.
Policy Target Areas
Portland's green building policy first targets new construction and major retrofits of facilities built, owned, managed or financed by the city--at least those funded after the policy's adoption.
These projects will be required to meet local standards based on the U.S. Green Building Council's LEED (Leadership in Energy and Environmental Design) rating system (see related story). The policy mandates the most basic LEED level, although it encourages higher levels if possible. "The use of LEED helps to establish minimum performance levels, create a common design and construction practices framework, and allows Portland to measure its sustainable building performance relative to other jurisdictions using LEED," the policy notes. "In addition, USGBC provides technical rulings, training, networking and marketing to members," including the city of Portland.
Interior-tenant improvements and operations and maintenance practices by the city or its contractors also are subject to the policy, under separate guidelines to be developed later this year.
Portland will exempt unoccupied city facilities or those that serve special functions, such as garages, pump stations and storage buildings. The city also will create an exemptions process "to review any project where meeting the City's required green building guidelines is not appropriate."
Also covered under the policy are projects undertaken by the city's Portland Development Commission, whose programs include nine urban renewal areas. PDC is required to adopt the localized LEED standards by September, and to otherwise incorporate green building practices.
A third category encompasses public-infrastructure projects serving building development, such as streets and sewer and water facilities. Construction, operations and maintenance of these will be scrutinized "to determine the opportunity and need for a sustainability rating system for infrastructure" similar to the local LEED.
Fourth, the policy calls on city government to "promote the voluntary application" of green building design, construction and operations in private-sector development. The Office of Sustainable Development is charged with furnishing technical expertise, resolving regulatory conflicts, conducting workshops and trainings, developing green building resource guides, and expanding green building market demand through public education. The agency plans to implement the policy through its G/Rated building program.
OSD will coordinate green building policy actions among city departments, although the policy states agency directors "shall be responsible for ensuring that the facilities they construct, manage or occupy meet these guidelines." Annual citywide progress reports also are required.--Mark Ohrenschall
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Green building can benefit the environment, economy and people, although it can also cost additional money while requiring early planning and ongoing commitment to accomplish.
These were some themes emerging from a Dec. 7 forum near Portland exploring green building. The forum, sponsored by the Oregon Chapter of the Association of Professional Energy Managers, drew about 100 people. "We have found a topic that has significant interest here," said chapter president Lynne Eichner Kelley in opening the forum.
The event included green building case studies (see related story); a look at the LEED rating system developed by the U.S. Green Building Council; and discussion on a host of green building issues, from definitions and benefits to costs and challenges.
Green Building/LEED
Green buildings are "environmentally responsible, profitable and healthy places to live and work," according to USGBC president and chief executive officer Christine Ervin.
Her organization last year unveiled its LEED (Leadership in Energy and Environmental Design) rating system. It offers voluntary certification for buildings meeting standards in five green categories--of which energy is the most prominent.
LEED "is about market transformation," said Alan Scott, architectural design consultant for Portland General Electric's Green Building Services. "It is making a change; I see it happening all over the place. It touches on some current best practices, not forcing us to go too far beyond our comfort zone. It pushes us toward some innovations as well, so we can take cautious steps where we feel comfortable and take really bold steps as well."
Two years ago the USGBC counted fewer than 200 members; now it numbers about 600. It includes product manufacturers, environmental groups, building owners, building professionals, utilities, city governments, research institutions, professional societies and universities, according to the organization's Web site. "That means the influence in the marketplace is stronger, and that's what we need," said Ervin.
The Council created LEED for several reasons, she told the forum. Green building needed a "comprehensive, rigorous" definition, to avoid potential "greenwashing" and consumer confusion. LEED also is intended to stimulate green building competition. It offers recognition as well, while creating what Ervin described as "a national 'brand' to establish market value, promote consumer awareness and transform the market."
LEED isn't the only source of guidelines or principles for green building, noted Kelley, who works for the city of Eugene. But, she said, "LEED is the first system to offer us all the features we need in one package," namely: definable goals, practical guidance, a means to go beyond existing standards, comprehensive evaluation of environmental impacts, a common language, and recognition for good green work.
Dennis Wilde of Gerding/Edlen Development said his firm didn't initially pursue LEED for its Brewery Blocks development in downtown Portland. "We weren't convinced the added money to get LEED certification was worth the effort. We were already pursuing sustainable development . . . We discovered as a team that LEED does provide some benchmarking, a way to measure your success against a known standard," although he added that LEED "in and of itself" doesn't provide a framework of goals.
Certification Categories
LEED offers four levels of green building certification: basic (also known as bronze), silver, gold and platinum, each with minimum requirements. Points accumulate for meeting criteria in five categories: energy/atmosphere, sustainable sites, water efficiency, materials and resources, and indoor environmental quality. Innovation can earn an additional five points beyond the 64 "core points." A number of prerequisites also are needed for certification.
Energy/atmosphere "plays a considerable role in our definition of green," Ervin said. This category directly accounts for 17 potential points, and even more indirectly, taking into account, for example, urban sprawl.
"Energy has been an early core part of green building, and it's one of the best mechanisms to creating a high-performance building and seeing savings in operations and maintenance costs," said Scott. It also addresses global issues such as greenhouse gas emissions, he noted. This category has three prerequisites: building commissioning, minimum energy performance (ASHRAE 90.1 or the local energy code, whichever is more stringent), and CFC reductions in HVAC and refrigeration equipment. "The bulk of the points are in optimizing energy efficiency," according to Scott, such as two points for exceeding ASHRAE standards by 20 percent. Renewable energy applications--although not solar water-heating, passive solar or ground-source heat pumps--also can earn points.
Other LEED categories also have energy implications, including indoor environmental quality and water. Even though water represents just five of the 69 total possible LEED points, it still assumes great importance as a fundamental and increasingly constrained resource, according to Scott. The Oregon town in which the forum took place, Wilsonville, put a moratorium on new development because of insufficient water supplies.
Green Building Issues
In addition to reducing environmental impacts, green building strategies provide other benefits, according to presenters at the forum.
On the human side, good indoor air quality can improve the health of building occupants. Green buildings also can enhance productivity--a finding documented in recent studies linking daylighting to higher student test scores and more retail sales ( see Con.WEB, Sept. 30, 1999). The vast majority of annual overhead for the built environment, 92 percent, is spent on employees, noted Ervin. "If you do anything to improve productivity, it can make a significant contribution to the bottom line."
Developer Wilde, meanwhile, declared that green building represents "better business," as it incorporates state-of-the-art technologies that are environmentally responsive and less expensive for tenants to operate. "We see it as a competitive advantage," he said--as do a growing number of other Portland developers.
Still, the initial cost of green building can be an issue. The $21 million Marion County Courthouse Square in Salem, OR (see related story) expects to achieve a LEED bronze rating, which cost roughly $122,000 extra, according to Bonnie McCullough of Marion County. She noted the decision to pursue LEED wasn't made until halfway through the design phase, however.
Ervin said achieving LEED bronze and silver levels "need not cost more," although gold and platinum level projects would "certainly [require] a premium." And these assume green strategies are incorporated from the beginning.
With the same caveat--"It has to be an integrated project approach involving all the team members from the very inception of the project"--Wilde also believes going green doesn't necessarily mean shelling out a lot of green. "You can accomplish an inordinate amount of positive things without investing an inordinate amount of money," he said. "It's possible to achieve LEED without a dime extra on additional bricks and mortar. You will spend 8 to 10 percent more on the design budget only."
Yet Wilde also acknowledged that his development firm must keep its leasing rates competitive in the local marketplace--even though green buildings have intrinsically higher value. "That's one of the big problems with sustainable development--a financial disconnect between the entity that builds and the entity that leases space and pays operating costs . . . I'm financially constrained on how much I could invest to generate lower operating costs that would benefit a tenant."
Forum presenters offered some green building advice, including an early start in the design phase, an integrated approach (such as energy and indoor environmental quality), internal champions, education of participants and the broader public, and a long-term perspective.--Mark Ohrenschall
Three Northwest projects illustrate some of the opportunities and challenges for the growing practice of green building.
The three--two in Oregon, one on the United States-Canada border--were presented as case studies at a Dec. 7 green building forum sponsored by the Oregon Chapter of the Association of Professional Energy Managers (see related story).
These building projects feature (or plan to) a variety of strategies, including energy efficiencies, recycling, attention to indoor air quality, green power sources and people-friendly touches such as operable windows. But they also lack some other potential green features, jettisoned for such reasons as impracticality, time constraints and government resistance.
Two big issues for green building--collaboration and cost--also factor into these projects. These can be successfully addressed, according to the presentations, but within certain limits, and only with some effort.
Marion County (OR) Courthouse Square
This downtown Salem project, owned by Marion County and Salem Area Transit, is a five-story, 152,000-square-foot development with county offices, retail space, transit connections and underground parking. County government officials wanted to consolidate cramped and dispersed offices, and incorporate sustainable building principles, according to solid waste reduction coordinator Bonnie McCullough. The $21 million complex was dedicated in September.
It hosts a wide range of green features. Energy-related items include energy-efficient windows, extensive daylighting by design, occupancy sensors for lighting and HVAC systems, and reflective roofing. Altogether the Square exceeds Oregon's commercial energy code requirements by at least 20 percent, McCullough said.
The project diverted 92 percent of the demolished materials from existing buildings for recycling or some form of reuse, she reported. Recycled-content materials are found in tiles, paint, carpet, countertops and outdoor benches around the Square. And recycling continues, for paper, glass, plastic, aluminum, tin, fluorescent tubes and even computers.
Bicycle parking, an electric vehicle parking station and mass transit availability foster transportation efficiencies, as did the fact 51 percent of materials used were manufactured within 300 miles of the Square. Low-flow water fixtures reduce consumption of the essential liquid. And indoor air quality is addressed through a permanent monitoring system and the use of adhesives, paints and sealants with low levels of volatile organic compounds.
Marion County Courthouse Square was one of 54 ventures in a pilot program for the U.S. Green Building Council's LEED (Leadership in Energy and Environmental Design) certification standards. However, according to McCullough, "We didn't decide to do LEED until we were about 50 percent through the design phase. That was extremely challenging," reviewing and incorporating specifications that occasionally formed "a moving target." She estimated it cost an additional $122,000 to meet the LEED bronze standard, although she later acknowledged the rough nature of such an estimate, largely because of the relatively late start in pursuing LEED.
The project also proved challenging "dealing with two boards, getting political and public acceptance, watching that bottom line for taxpayers," McCullough said. It also required introducing new products and concepts to building professionals, and dealing with pesky new-construction bugs such as lighting problems and uncomfortable temperatures.
"How did this happen?" she asked rhetorically. "Our office. We were the champions. If not for Marion County Solid Waste's commitment and financial backing, we would not have participated in the LEED program. We wanted to promote sustainable building and lead by example, put our money where our mouth is and provide resources."
Sweetgrass/Coutts Border Crossing
While the Marion County Courthouse Square brought together two local government branches, this project seems to involve a mini-United Nations.
This United States-Canada border crossing links northern Montana and southern Alberta, specifically connecting the communities of Sweetgrass, MT, and Coutts, Alberta, according to project manager J. Lach of the U.S. General Services Administration. It handles "a lot of truck traffic," he noted, in a Plains climate notorious for "very severe weather," with roaring winds, frigid winters and blistering summers.
"It's an example of how we're trying to implement a green building for a project in progress, leading to an award next spring for design/build," he said. Lach credited Bonneville Power Administration, and specifically BPA's Mike Rose, as "largely responsible for nudging us" toward building green.
The venture is primarily overseen by four government agencies, one apiece from the U.S. and Canadian federal governments, and one each from the state of Montana and province of Alberta. Altogether 10 agencies have a direct role, and many others indirectly participate. "At last count there are 65 points of signature sign-off on any single decision," said Lach. "This project is making me crazy!" he joked.
GSA's basic concept modifies a conventional design/build scenario. "This project is extremely complex and we were unwilling to give out control of the design," said Lach.
Instead, he told Con.WEB later, "We're doing...enough of the design so that all the participants are satisfied we're getting at a minimum design they need to see . . . We do the conceptual design; the design-build contractor designs the balance of it." This contractor is scheduled to be chosen this spring at the end of a two-step process.
At a minimum, the project will have to earn a bronze-level LEED certification. GSA also wants proposals on the scope of work and price tags to achieve higher LEED levels. "We get a 'not-to-exceed' budget," he noted. "Additional money has to be congressionally authorized. There may be funding available elsewhere for energy measures we can utilize."
The project is planned for completion in 2003, and it will have to navigate various issues--such as labor laws and border regulations--relevant to a truly international venture. "We still haven't figured out who's going to install the beam that crosses the border," Lach deadpanned.
Brewery Blocks
This five-block project in the Pearl District of downtown Portland is noteworthy as a speculative green building development by a private company, noted panel moderator Nathan Good of Portland General Electric.
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| Courtesy of Gerding/Edlen Development |
"Our commitment as a company is to pursue green or sustainable development in all the projects we do," said senior project manager Dennis Wilde of Gerding/Edlen Development. He offered such examples as the Pacific Gas Transmission building (a 1997 Architecture + Energy award-winner) and the Wieden + Kennedy headquarters (see Con.WEB, May 30, 2000).
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| Courtesy of Gerding/Edlen Development |
This mixed-use urban redevelopment now under construction on the site of the former Blitz-Weinhard Brewery will incorporate many green strategies, Wilde told the forum. These include materials recycling, energy-efficient windows, variable-speed carbon-dioxide sensors for controlled ventilation, daylighting controls, green power, indoor air-quality management and district cooling. The Brewery Blocks will connect to a low-temperature chilled water plan built by an Enron subsidiary, and energy savings should result from a lower-temperature air supply, smaller duct work and reduced fan pressure. Gerding/Edlen looked into 100-percent convection or evaporative cooling, Wilde noted, but abandoned the idea as impractical.
The firm also investigated groundwater recharging and rainwater reuse, but encountered resistance from the city of Portland. Another thought was to use concrete with high fly-ash content, but its longer cure time would have posed scheduling problems. And the firm plans to use some wood products certified as sustainably harvested, but not all.
Meanwhile, the planned installation of operable windows may not save large amounts of energy. But, said Wilde, "People who use the building really like them." Portlanders also love their views, and so Gerding/Edlen avoided minimizing window areas. The developer does plan to save considerable energy with induction lighting in its 1,300-vehicle underground parking garage. These lamps, based on a microwave principle, should last 10 times as long as metal halides with much lower energy consumption, according to Wilde.
He cited valued assistance from such programs as PGE's Earth Smart, Oregon's Business Energy Tax Credit and LEED.
Wilde also emphasized the importance of collaboration for green building. "It has to be an integrated project approach involving all the team members from the very inception of the project. The owner has to express commitment and engage everyone associated in a commitment to develop a green project. If you do that, you can accomplish an enormous amount of positive things without investing an inordinate amount of money.
"It's possible to achieve LEED without a dime extra on additional bricks and mortar," he continued, adding, "You will spend 8 to 10 percent more on the design budget only . . . But if you don't start from day one, you'll never get there."--Mark Ohrenschall
The annual Idaho Energy Conference represents "a chance to tell energy efficiency stories in Idaho," noted Idaho Power's Darlene Nemnich at the mid-November gathering in Sun Valley.
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And the stories shared at this latest conference told about energy efficiency both from big-picture perspectives and more particular viewpoints.
It included sessions on distributed generation, the Energy Web as envisioned by Bonneville Power Administration, a panel discussion on public purposes, and a talk by renowned clean-energy advocate Ralph Cavanagh on an expanded role for efficiency and renewables.
Also explored were Internet-based facilities management, comprehensive resource management, a performance-contracting case study, international energy conservation code training, daylighting in buildings, best practices in maintenance and operations, and building science issues.
Big-Picture Looks
The full conference sessions opened with Karl Rabago of Rocky Mountain Institute speaking on distributed energy resources. He said they offer a vast array of benefits--75 by his latest count--and fit in with an historical trend toward smaller power-generating sources.
"The era of adding giant new generating units ordered upward of a decade earlier ended in 1990," Rabago said. "The utility industry itself has been shying away from large central-station power plants the last 30 years," for reasons including economies of scale, cost overruns and declining availability factors for big plants. Instead of new generating units in the range of 1,000 megawatts, utilities and independent power producers now are trending toward resources in the 200-300 MW range, and smaller. "Distributed resources are starting to take over, at least on the margin," he said.
They make considerable sense, Rabago noted, especially considering 75 percent of homes use less than an average of 1.5 kilowatts of capacity and 75 percent of businesses use less than 10 KW. "In terms of capacity, we've been sipping out of a fire hose."
Distributed energy benefits include timeliness, modularity, reduced transmission and distribution system expenses, lower line losses, improved system reliability, load diversity and--with renewable resources, not diesel generators--significant environmental advantages. He also put in a demand-side plug: "As Amory [Lovins of RMI] likes to say, the negawatt revolution is renascent. It's still valuable to help customers use energy more efficiently," which can complement distributed resources.
Distributed resources and efficient energy use also figure into BPA's vision of the Energy Web, along with advanced communications, reported BPA's Paul Norman. "We think it presents huge opportunities. Integrating the [electric] system with a telecommunications system with an energy market optimizes loads on the network, increases reliability and reduces environmental impact."
As it evolves to supplement today's linear/centralized energy system, the Energy Web will encompass fuel cells, microturbines and reciprocating engines; renewables such as solar photovoltaics, wind and geothermal; energy storage systems ("a really important component," Norman said); and "dispatchable demand-side management." Sophisticated control systems are needed to make the Web work most effectively, said Norman, while the "humble" electric meter will play a role enabling customers to vary demand.
"We feel like we need to nudge this vision along, to help carry out the public-purpose responsibilities Congress gave us," said Norman. He cited Bonneville initiatives in fuel-cell demonstrations, renewable resources, demand exchanges ("an excellent illustration of this Energy Web") and conservation, specifically Conservation Augmentation and the conservation/renewables wholesale rate discount. Meanwhile, Energy Web concepts bring utilities "an opportunity to deliver more value to their customers," Norman said, while offering profit potential for businesses.
This whole scenario won't materialize in one shining moment. "This Energy Web vision is not a big bang vision," he said. "If it happens, it's going to happen in a lot of small steps . . . We're trying to keep this bulb lit. In the long run, we think it will pay dividends for the people we serve."
Also offering policy thoughts was renowned clean-energy advocate Ralph Cavanagh of the Natural Resources Defense Council. He referred to the "frightful mess" in his home state of California (according to handwritten notes he shared with Con.WEB), and the prospect that next summer would find the Golden State with expected loads of 48,000 MW, exceeding likely supply. Load-responsive demand reductions in commercial buildings and the state's $5.5 billion 10-year commitment to efficiency and renewables will help California survive these hard energy times.
Today's conventional widsom holds that combined-cycle gas-fired combustion turbines are the answer to the power crunch, but Cavanagh believes these have "underappreciated" risks in both cost and fuel supply. Among the "better options" to pursue are regional conservation on the Northwest Energy Efficiency Alliance model, expanded Idaho utility energy efficiency investments (which have declined by more than half since 1982), and additional wind-energy facilities. He also cited a 1987 poll of Idaho citizens--at a time of power surpluses and declining energy prices--in which a vast majority thought energy conservation was as important as in the past.
Some Particulars
Several conference presentations focused more on particulars of energy efficiency.
MicroGrid's Terry Egnor discussed Internet-based facilities management and its energy implications. It's all about control, he said, which in turn is driven by information, which is derived from data. This is driven by "geometric Internet growth," electric industry restructuring and its energy-management needs for commercial customers, convergence of building automation and information technology systems, and "Web ware" packages.
Egnor cited four primary "energy values" from Internet-based facilities programs: energy cost reductions (as from spotting demand patterns and identifying optimal fuel sources); preventive maintenance (documenting inefficiencies, for example, or power factor anomalies); cost analysis and allocation; and energy procurement, which is "not here yet for most people, but it's not far off."
A "test bed" at Portland State University in conjunction with Portland General Electric can track temperatures and pressures in the HVAC system, to determine if it's operating correctly. Detailed load profiles can reveal energy consumption patterns and thus efficiency opportunities, while chiller usage can be correlated in graph form to summer temperatures. Activities can be scheduled in lower-energy-consuming locations. "These are just snapshots of some of the things this system does," said Egnor. "This is at the stage now where energy management systems were when DDC [direct digital controls] first hit in the early '80s." It took a few years for "smart" DDC applications to develop.
Comprehensive resource management, including effective low-tech measures, was the topic of Avista Corp's Tom Lienhard. He said his organization within Avista works to overcome barriers to effective management of energy and other resources, such as water, sewer and solid waste.
Efficient technologies such as HVAC, lighting, controls and motors can do the job. A technology now promoted by Avista, called the VendingMiser, powers vending machines up and down based on human presence in the vicinity. "We've averaged 40-percent savings," said Lienhard, with paybacks of 3.2 years "even at our low Idaho rates."
Lienhard described building shell measures as "one of the biggest things I find lacking." He offered an example of a Las Vegas hotel in which an entrance overhang reduced incoming air temperature by about 10 degrees.
Low-cost and low-tech solutions also can make a difference, from turning out gymnasium lights to regularly cleaning coils on HVAC units to insulating hot-water tanks and pipes. One time, Lienhard discovered a leaky duct in a crawl space when he felt cool air blowing on his head. "There's so much out there we can all help with, just walking around to see what's going on," he said.
Another example of comprehensiveness came in a case study of an energy savings performance contracting project at the University of Utah. The Salt Lake City campus faced numerous challenges, including the aging of package chillers, distribution system and buildings, increasing energy demands and, according to a slide presentation, "extremely limited funding opportunities" and "too many energy inefficient buildings."
The university contracted with CMS Viron to perform energy conservation retrofits on 23 buildings with 2.6 million square feet, creating savings of $1.8 million to fund the retrofits and some of the cost of a new central plant. The efficiencies came primarily from energy management control systems, as well as mechanical system and lighting improvements. An ESPC approach "does work," said a university representative, and with rising electric rates, "That makes it even more profitable and beneficial."
Building scientist Joseph Lstiburek listed three items that "destroy buildings": water, heat and ultraviolet radiation. These also are the most likely culprits for indoor air-quality problems, such as mold coming through return-air ducts. He advocated "climate-specific design solutions," and argued against "the fallacy of a standard approach" with building codes. Some 90 percent of codes derive from cold-climate perspectives, he argued, which doesn't work effectively in other climates.--Mark Ohrenschall
More Information:
A new geothermal heat pump system at a Native-American housing facility near Seattle makes a better energy source--and a more comfortable life for residents.
It figures to be a much more reliable heating system than its dysfunctional predecessor, while saving considerable energy and greatly reducing maintenance and repair costs. And, it improves the living environment for occupants of the Tulalip Tribes' 10-unit assisted-living facility on Puget Sound, north of Everett.
"If it holds true to its promise, I'm going to be a happy camper," said Steve Gobin, social services director for the Tulalip Tribes.
Snohomish County PUD and Bonneville Power Administration contributed most of the $83,000 cost of the geothermal heat pump system, along with technical and other assistance.
Geothermal installations of this type look to be increasingly popular, according to Snohomish PUD's Eldon Samp. "Several contractors I'm aware of do this outside our program on a regular basis," he told Con.WEB.
"They have more jobs lined up for the next year than they've ever done in one year, all residential applications. If it were to catch on in the commercial arena . . . we would have a lot more installers around and the price would definitely be going down for the residential customer." He said the PUD wants to collaborate on a larger-scale geothermal heat pump project in its service territory.
Meanwhile, the tribe may also consider adding more such geothermal systems to its facilities. "From a management perspective, if it reduces my maintenance cost and provides a more consistent and safer living environment for my seniors, I want to be able to do that in other places," said Gobin. "It's a fairly expensive technology to switch over to; we wouldn't have been able to afford it without those [Snohomish PUD/BPA] grants . . . I would like to wait a year and see how this one works," he added. "The expense is one of the things we have to bear in mind."
Geothermal Origins, Operations
The geothermal heat pump installation originated from weatherization discussions involving the Tulalips, BPA and the PUD. Samp and PUD colleague Peggy Crossman learned that the assisted-living facility had an ill-functioning heating system; an opportunity beckoned for geothermal. "One thing led to another," recalled Samp, and eventually Snohomish contributed $50,000 from its public-purposes funds while BPA added $25,000. The tribe paid the remaining $8,000. Bids were received in April, construction began in summer and the geothermal system was working by early November.
It replaced a 15-kilowatt electric furnace, with air-to-air heat pumps in each living unit--a system that worked in air-conditioning mode but not heating, according to Samp.
"You're not going to get load reduction replacing air-to-air equipment with air-to-air equipment," he explained. "Air-to-air equipment can't get involved with hot-water systems; that's one of the benefits of the geothermal system."
The Tulalip system takes advantage of the Earth's relatively constant temperature for heating, cooling and hot water. It features a network of 10 wells, each with 360 feet of pipe going down and up, 180 feet each way. Pumped water flows through the pipes and into a central location, from where it is separately distributed to the heat pumps for each living unit and to common areas including a kitchen/dining room/great room/office. "In the winter," notes a PUD news release, the system "removes heat from the ground, which then is pumped into the building; in the summer the process is reversed, with warm air being moved from the indoor air stream into the ground." Despite the temperate climate, air conditioning frequently operates at the assisted-living facility, which Samp described as a well-insulated structure with a western exposure receiving reflected light off the waters of the Sound.
Also linked to the geothermal system are the facility's four 80-gallon hot-water tanks. "Rather than have all those four tanks come on whenever--at 4,500 watts per tank, per element--what we've done is we've tied those into the loop as well so the water is preheated by the geothermal loop up to around 110 degrees," said Samp. That temperature suffices for residents in their units, while a fourth tank earmarked for laundry is heated up to 140 degrees or more--but from a 110-degree baseline, instead of 50 degrees.
Costs and Benefits
Samp projects the Tulalip geothermal system will reduce total electric load 30 percent compared to a conventional heating installation, and create energy savings of 40 percent to 60 percent. Monitoring and metering equipment will deliver conclusive data.
The geothermal installation did carry an initial price premium: Samp estimated the incremental cost at about $55,000, compared to simply replacing the 10 air-to-air units. But that doesn't account for the hot-water improvements, nor other tangible as well as intangible benefits.
Load reduction provides direct gain in avoided capacity requirements for Snohomish PUD's system, Samp noted. Energy savings will lower the tribe's utility bills. In addition--assuming the geothermal system works as reliably as expected--big savings will accrue in maintenance. "What we understand is that maintenance costs will be 60 to 70 percent lower," said Gobin. "We were spending a lot of money every month repairing the old system. We've probably saved $15,000 or $20,000 a year right away not having that system in for repairs . . . Any place we can save money just allows us to offer services in other areas." He also valued the partnership among the tribes, the PUD and BPA.
And, the geothermal system has enhanced the comfort of elderly residents--after a shakedown period. "We had some complaints right at first," said Gobin. "Since it was forced air, some of the seniors were complaining that . . . the air blowing over their skin still made them feel cold." Now the fans are off periodically, and, according to Gobin, "I think everybody's happy."
Samp agrees. Despite the air-blowing problem and initial resistance by some tribal members to this technology, "They're happy at the end of it all."--Mark Ohrenschall
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