1. Slide 1 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Variable Capacity Heat Pump Sub-Committee Road-Mapping Session BPA Energy Efficiency Emerging Technology February 15, 2011

2. Slide 2 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Variable Capacity Heat Pump Road- Mapping Agenda Goals and objectives 9:30 – 10 am Road-mapping logistics 10 – 10:15 am Activity 1: Drivers & Barriers 10:15 – 11 am Activity 2a: VC HP Measures 11 am – noon Activity 2b: Technology 11 am – noon lunch noon – 1 pm Activity 3: Prioritization 1 – 2 pm Activity 4: Resources 2 – 2:30 pm Strategize next steps 2:30 – 3 pm

3. Slide 3 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Variable Capacity Heat Pump Definitions

4. Slide 4 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Bonneville Power Administration  Federal power marketing agency  Part of US DOE  Columbia Federal River System  Serve 134 public utilities in Idaho, Montana, Oregon and Washington  Mandated to pursue energy efficiency as a resource  Targets set by the Northwest Power and Conservation Council and verified by the Regional Technical Forum (RTF)  Energy efficiency is the lowest cost resource to offset regional load growth

5. Slide 5 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Types of BPA Energy Efficiency Measures 1. Deemed Measures (RTF approved savings)  Repeatable savings, with known variance  Typically technology-based (CFL) 2. Deemed Calculator (RTF approved)  Accounts for site-based variances (lighting calculator) 3. BPA Qualified Measures (Pilots to get more data) 4. Custom Projects  Requires BPA approved M&V

6. Slide 6 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N BPA EE Measure Considerations Measures must be cost-effective based on first- year electricity savings  Benefit cost ratio must be greater than 1  Can include verifiable non-electricity savings  Retrofit cost and savings quantified and verified from existing HVAC system  Payback must be greater than 1 year

7. Slide 7 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Retrofit Measure  Equipment is replaced before failure  Includes naturally recurring replacements  Baseline is the existing HVAC system  Measure cost includes installation cost

8. Slide 8 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N New Construction Measure Includes new construction, major remodel and replacement of failed equipment  Major remodel defined as replacement of more than one building system, requiring a permit  Baseline is the code in effect at the time of permit  Incremental cost must be greater than 1

9. Slide 9 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Commercial sector  Not residential  No process or manufacturing  No agriculture production

10. Slide 10 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Variable Capacity Heat Pumps (VC HP = VRF + DHP) + Ductless Heat Pumps Variable Refrigerant Flow Heat Pump System

11. Slide 11 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N VRF System Ventilation Options

12. Slide 12 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Miscellaneous HVAC Acronyms  Air-Air Heat Pump (A-A HP)  Dedicated outside air system (DOAS)  Packaged terminal heat pump (PTHP)  Water source heat pump (WSHP)

13. Slide 13 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Variable Capacity Heat Pumps  Inverter driven compressors and fans  Electronic variable expansion valves  Sophisticated control algorithms and oil flow management (VC HP = VRF + DHP)

14. Slide 14 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Summary of 109 PNW VRF Installations (new & retrofit)

15. Slide 15 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N VC HP EE Measure Issues  Hard to deem and verify system savings  Part load  Heat recovery  Ventilation  Incremental cost issues  Need to specify cost effective applications  Numerous baselines  Whole building approach?

16. Slide 16 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Variable Capacity Heat Pump Subcommittee DRAFT Goal Develop offerings for cost-effective, electric VC HP measures within two years for the Commercial sector, consisting of: 1. a specification for cost-effective applications that ensure acquisition of electricity savings 2. a high-consensus estimate of electricity savings 3. a high-consensus M&V protocol 4. a high-consensus estimate of cost

17. Slide 17 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N RTF Sub- Committee feedback on gaps, process and results RTF Sub-Committee Process RTF Recommendation Define Measure Baseline & savings Savings Estimating Protocol Develop M&V Protocol BCR > 1 Field Test Results Specifications for Ensuring Savings Market Research

18. Slide 18 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Roadmapping Activity #1 VC HP Drivers & Barriers a) Why are VC HP systems being installed? Example: low first cost, quick payback, less mechanical space required, air conditioning capability, improved comfort, energy efficiency, quiet, etc. b) What barriers prevent VC HP systems from being installed? Example: higher first cost compared to baseline system, unfamiliar technology

19. Slide 19 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Roadmapping Activity #2b Technology / Application Focus What retrofit applications might be cost-effective based on electricity savings? With a focus on small and medium offices, schools, assisted living, lodging and multi-family applications

20. Slide 20 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Roadmapping Activity #3 Prioritization

21. Slide 21 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Roadmapping Activity #4 Resources Describe other VC HP efforts, which may be resources for this Roadmap; provide as much detail as possible for these efforts, as well as your name Examples: SCE VRF work paper; CEE VRF IEER Tiers; EPRI’s VRF EE Demo

22. Slide 22 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Thank you for being a VC HP Sub- Committee member!