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Energy and Cost Implications of the Florida Energy Star Residential HVAC Rebate Program

Permanent Link: http://ufdc.ufl.edu/UFE0044776/00001

Material Information

Title: Energy and Cost Implications of the Florida Energy Star Residential HVAC Rebate Program
Physical Description: 1 online resource (80 p.)
Language: english
Creator: Strauss, Kurt
Publisher: University of Florida
Place of Publication: Gainesville, Fla.
Publication Date: 2012

Subjects

Subjects / Keywords: energy -- energystar -- florida -- hvac -- rebate -- residential
Building Construction -- Dissertations, Academic -- UF
Genre: Building Construction thesis, M.S.B.C.
bibliography   ( marcgt )
theses   ( marcgt )
government publication (state, provincial, terriorial, dependent)   ( marcgt )
born-digital   ( sobekcm )
Electronic Thesis or Dissertation

Notes

Abstract: In July 2010, the Florida’s Governors Energy Office released the Florida ENERGY STAR Residential HVAC Rebate Program. The program was funded by a grant from the Federal Recovery and Reinvestment Act and allocated $15 Million (M) for the Florida ENERGY STAR Residential HVAC Rebate Program. The Program was designed to provide a $1,500 State Rebate for homeowners who purchase and install a new HVAC system. This amounts to 10,000rebates for Florida homeowners. The program started on August 1, 2010. On September 14, 2010 the program was put on hold by the Leaders of the Florida State Legislature. On November 16, 2010, the Florida State Legislature held special session and made a ruling, Rule 16B, on the Florida ENERGY STAR Residential HVAC Rebate Program. The final decision ruled that the rebates would only be paid out to homeowners who had their HVAC systems contracted to be replaced in a 2 week window, from August 31, 2010 – September14, 2010, and installed on or before November 30, 2010. The rest of allocated funds would be used to fund outstanding solar rebates unrelated to the HVAC and Appliance Rebate Program for the Florida Solar Energy System Incentives Program. In July 2011 a final report was released by the Florida Office of Energy on the Florida ENERGY STAR Residential HVAC Rebate Program. It showed a total of 4,286 rebates were approved and paid as a result of the Program. There was an additional 1,088 rebate applications that were rejected. In February 2012, the Florida Office of Energy released their 2011 annual report,which contained supplemental data pertaining to how the reallocated funds were spent on the Florida Solar Incentives Program’s outstanding rebates for solar photovoltaic systems and solar hot water systems. This study aims to determine the energy and cost implications of the Florida ENERGY STAR Residential HVAC Rebate Program by comparing the Program’s potential energy and cost implications to the Program’s outcome energy and cost implications. The findings of this study showed that the outcome energy and cost savings of the Florida ENERGY STAR Residential HVAC Rebate Program exceeded the potential energy and cost savings by approximately 50,000 megawatt hours (mWh) of energy, or approximately $5 M. The main driver of the outcome energy and cost savings was the low rebate amount for solar hot water systems which made up 25% of the outcome energy and cost savings, but only cost 4% in rebates paid.
General Note: In the series University of Florida Digital Collections.
General Note: Includes vita.
Bibliography: Includes bibliographical references.
Source of Description: Description based on online resource; title from PDF title page.
Source of Description: This bibliographic record is available under the Creative Commons CC0 public domain dedication. The University of Florida Libraries, as creator of this bibliographic record, has waived all rights to it worldwide under copyright law, including all related and neighboring rights, to the extent allowed by law.
Statement of Responsibility: by Kurt Strauss.
Thesis: Thesis (M.S.B.C.)--University of Florida, 2012.
Local: Adviser: Srinivasan, Ravi.
Local: Co-adviser: Oppenheim, Paul.

Record Information

Source Institution: UFRGP
Rights Management: Applicable rights reserved.
Classification: lcc - LD1780 2012
System ID: UFE0044776:00001

Permanent Link: http://ufdc.ufl.edu/UFE0044776/00001

Material Information

Title: Energy and Cost Implications of the Florida Energy Star Residential HVAC Rebate Program
Physical Description: 1 online resource (80 p.)
Language: english
Creator: Strauss, Kurt
Publisher: University of Florida
Place of Publication: Gainesville, Fla.
Publication Date: 2012

Subjects

Subjects / Keywords: energy -- energystar -- florida -- hvac -- rebate -- residential
Building Construction -- Dissertations, Academic -- UF
Genre: Building Construction thesis, M.S.B.C.
bibliography   ( marcgt )
theses   ( marcgt )
government publication (state, provincial, terriorial, dependent)   ( marcgt )
born-digital   ( sobekcm )
Electronic Thesis or Dissertation

Notes

Abstract: In July 2010, the Florida’s Governors Energy Office released the Florida ENERGY STAR Residential HVAC Rebate Program. The program was funded by a grant from the Federal Recovery and Reinvestment Act and allocated $15 Million (M) for the Florida ENERGY STAR Residential HVAC Rebate Program. The Program was designed to provide a $1,500 State Rebate for homeowners who purchase and install a new HVAC system. This amounts to 10,000rebates for Florida homeowners. The program started on August 1, 2010. On September 14, 2010 the program was put on hold by the Leaders of the Florida State Legislature. On November 16, 2010, the Florida State Legislature held special session and made a ruling, Rule 16B, on the Florida ENERGY STAR Residential HVAC Rebate Program. The final decision ruled that the rebates would only be paid out to homeowners who had their HVAC systems contracted to be replaced in a 2 week window, from August 31, 2010 – September14, 2010, and installed on or before November 30, 2010. The rest of allocated funds would be used to fund outstanding solar rebates unrelated to the HVAC and Appliance Rebate Program for the Florida Solar Energy System Incentives Program. In July 2011 a final report was released by the Florida Office of Energy on the Florida ENERGY STAR Residential HVAC Rebate Program. It showed a total of 4,286 rebates were approved and paid as a result of the Program. There was an additional 1,088 rebate applications that were rejected. In February 2012, the Florida Office of Energy released their 2011 annual report,which contained supplemental data pertaining to how the reallocated funds were spent on the Florida Solar Incentives Program’s outstanding rebates for solar photovoltaic systems and solar hot water systems. This study aims to determine the energy and cost implications of the Florida ENERGY STAR Residential HVAC Rebate Program by comparing the Program’s potential energy and cost implications to the Program’s outcome energy and cost implications. The findings of this study showed that the outcome energy and cost savings of the Florida ENERGY STAR Residential HVAC Rebate Program exceeded the potential energy and cost savings by approximately 50,000 megawatt hours (mWh) of energy, or approximately $5 M. The main driver of the outcome energy and cost savings was the low rebate amount for solar hot water systems which made up 25% of the outcome energy and cost savings, but only cost 4% in rebates paid.
General Note: In the series University of Florida Digital Collections.
General Note: Includes vita.
Bibliography: Includes bibliographical references.
Source of Description: Description based on online resource; title from PDF title page.
Source of Description: This bibliographic record is available under the Creative Commons CC0 public domain dedication. The University of Florida Libraries, as creator of this bibliographic record, has waived all rights to it worldwide under copyright law, including all related and neighboring rights, to the extent allowed by law.
Statement of Responsibility: by Kurt Strauss.
Thesis: Thesis (M.S.B.C.)--University of Florida, 2012.
Local: Adviser: Srinivasan, Ravi.
Local: Co-adviser: Oppenheim, Paul.

Record Information

Source Institution: UFRGP
Rights Management: Applicable rights reserved.
Classification: lcc - LD1780 2012
System ID: UFE0044776:00001


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1 ENERGY AND COST IMPLICATIONS OF THE FLORIDA ENERGY STAR RESIDENTIAL HVAC REBATE PROGRAM By KURT STRAUSS A THESIS PRESENTED TO THE GRADUATE SCHOOL OF THE UNIVERSITY OF FLORIDA IN PARTIAL FULFILLMENT OF THE REQ UIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE OF BUILDING CONSTRUCTION UNIVERSITY OF FLORIDA 2012

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2 2012 Kurt Strauss

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3

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4 ACKNOWLEDGMENTS I would like to than k my family for the encouragement and support while pursing my degree. I would also like to thank my committee for sticking with me through the entire process of writing this paper.

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5 TABLE OF CONTENTS page ACKNOWLEDGMENTS ................................ ................................ ................................ .. 4 LIST OF TABLES ................................ ................................ ................................ ............ 8 ABSTRACT ................................ ................................ ................................ ..................... 9 CHAPTER 1 LITERATURE REVIEW ................................ ................................ .......................... 11 Florida ENERGY STAR Residential HVAC Rebate Program ................................ 11 Overview ................................ ................................ ................................ .......... 11 Program History ................................ ................................ ............................... 11 Program Overview ................................ ................................ ............................ 13 Program Requirements ................................ ................................ .................... 14 HVAC systems ................................ ................................ ........................... 14 Manual J report ................................ ................................ .......................... 14 Building permit ................................ ................................ ........................... 15 Duct testing ................................ ................................ ................................ 15 Program Funding and Distribution ................................ ................................ .... 15 Federal Recovery and Reinvestment Act, Title XVI, Section 1 607 ................... 16 Florida State Statutes Chapter 216.212 ................................ ........................... 16 The Florida Solar Energy System Incentives Program ................................ ........... 17 Program History ................................ ................................ ............................... 17 Typical Florida Home ................................ ................................ .............................. 17 Home Characteristics ................................ ................................ ....................... 18 Home Equipment and Appliances ................................ ................................ .... 18 Building Energy Modeling ................................ ................................ ....................... 18 HVAC Systems ................................ ................................ ................................ ....... 19 System Efficiencies ................................ ................................ .......................... 19 System Life Spans and Degradation ................................ ................................ 20 Air Distribut ion System Leakage ................................ ................................ ...... 21 Solar Photovoltaic Systems ................................ ................................ .................... 21 System Efficiency ................................ ................................ ............................. 21 System Life Span and Degradation ................................ ................................ .. 22 Hot Water Heaters ................................ ................................ ................................ .. 22 System Efficiencies ................................ ................................ .......................... 23 System Life Span ................................ ................................ ............................. 23 Solar Hot Water Heating Systems ................................ ................................ .......... 23 System Efficiencies ................................ ................................ .......................... 24 System Life Span ................................ ................................ ............................. 24 Utility Rates ................................ ................................ ................................ ............. 24 2 RESEARCH METHODOLOGY ................................ ................................ ............... 25

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6 Overview ................................ ................................ ................................ ................. 25 Step 1: Typical Florida home ................................ ................................ .................. 25 Step 2: Building Energy Models ................................ ................................ .............. 25 Step 3: Potential Energy and Cost Implications ................................ ...................... 26 Step 4: Outcome Energy and Cost Implications ................................ ..................... 26 Step 5: Compare Potential Energy and Cost Implications to Outcome Energy and Cost Implications ................................ ................................ .......................... 27 3 RESULTS AND ANALYSIS ................................ ................................ .................... 28 Typical Florida Home ................................ ................................ .............................. 28 Building Energy Modeling ................................ ................................ ....................... 28 Potential Energy and Cost Implications ................................ ................................ .. 29 Outcome Energy and Cost Implications ................................ ................................ .. 30 Energy and Cost Implications of HVAC Rebates ................................ .............. 31 Re allocated funds. ................................ ................................ .................... 31 Solar photovoltaic systems ................................ ................................ ........ 32 Solar hot water systems ................................ ................................ ............. 34 Outcome Energy and Cost Implications ................................ ........................... 35 Compare Potential Energy and Cost Implications to Outcome Energy and Cost Implications ................................ ................................ ................................ .......... 35 4 CONCLUSIONS AND RECOMMENDATIONS ................................ ....................... 41 Conclusions ................................ ................................ ................................ ............ 41 Research Limitations ................................ ................................ .............................. 42 Recommendations ................................ ................................ ................................ .. 43 Building Energy Modeling ................................ ................................ ................. 43 HVAC Rebates ................................ ................................ ................................ 43 Solar Photovoltaic Rebates ................................ ................................ .............. 44 Solar Hot Water System Rebates ................................ ................................ ..... 44 State Funded Revolving Reba te Program ................................ ........................ 44 APPENDIX A HVAC REBATE PROGRAM FINAL TOTALS ................................ ......................... 46 B AIR DISTRIBUTION TEST PROCEDURE ................................ .............................. 49 C RULE 16B ................................ ................................ ................................ ............... 51 D FEDERAL RECOVERY AND REINVESTMENT ACT TITLE XVI, SECTION 1607 ................................ ................................ ................................ ........................ 56 E FLORIDA ST ATE STATUTE CHAPTER 216.212 ................................ .................. 57 F TYPICAL FLORIDA HOME PLANS ................................ ................................ ........ 59

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7 G BUILDING ENERGY MODEL 1 ................................ ................................ .............. 63 H BUILDING ENERGY MODEL 2 ................................ ................................ .............. 68 I BUILDING ENERGY MODEL 3 ................................ ................................ .............. 73 LIST OF REFERENCES ................................ ................................ ............................... 78 BIOGRAPHICAL SKETCH ................................ ................................ ............................ 80

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8 LIST OF TABLES Table page 3 1 Typica l Florida Home with HVAC Upgrade Energy and Cost Savings ............... 37 3 2 Potential Energy and Cost Savings ................................ ................................ .... 37 3 3 Actual HVAC R ebates Paid Energy and Cost Savings ................................ ....... 37 3 4 Total Reallocated Funds from HVAC Rebate Program ................................ ...... 37 3 5 Total Reallocated Funds for Solar Photovoltaic Systems ................................ ... 38 3 6 Adjusted Solar Photovoltaic Rebate Amounts ................................ .................... 38 3 7 Total kWh Solar Photovoltaic Syst ems Paid for with Reallocated Funds ........... 38 3 8 Outcome Energy and Cost Savings of Photovoltaic Systems ............................ 39 3 9 Total Reallo cated Funds for Solar Hot Water Systems ................................ ...... 39 3 10 Adjusted Solar Hot Water System Rebate Amounts ................................ ........... 40 3 11 Total kWh Solar Hot Water Systems Paid for with Reallocated Funds ............... 40 3 12 Outcome Energy and Cost Savings of Solar Hot Water Systems ....................... 40 3 13 Total Outcome Energy and Cost Savings ................................ ........................... 40 3 14 Compare Potential to Outcome Energy and Cost Savings ................................ 40

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9 Abstract o f Thesis Presented to t he Graduate School of T he University o f Florida i n Partial Fulfillment of the Requirements f or The Degree o f Master o f Science ENERGY AND COST IMPLICATIONS OF THE FLORIDA ENERGY STAR RESIDENTIAL HVAC REBATE PROGRAM By Kurt Strau ss August 2012 Chair: Ravi Srinivasan Co chair: Paul Oppenheim Major: Building Construction ENERGY STAR Residential HVAC Rebate P rogram. The program was funded by a grant from the Federal Recovery and Reinvestment Act and allocated $ 15 M illion (M) for the Florida ENERGY STAR Residential HVAC Rebate Program. The P rogram was designed to provide a $1,500 State Rebate for hom e owners who purchase and install a new HVAC system. This amounts to 10,000 rebates for Florida homeowners. The program started on August 1, 2010. On September 14, 2010 the program was put on hold by the Leaders of the Florida State Legislature. On Novemb er 16, 2010, the Florida State Legislature held special session and made a ruling, Rule 16B, on the Florida ENERGY STAR Residential HVAC Rebate Program. The final decision ruled that the rebates would only be paid out to homeowners who had their HVAC systems contracted to be replaced in a 2 week window, from August 31, 2010 September 14, 2010, and installed on or before November 30, 2010. The rest of allocated funds would be used to fund outstanding

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10 solar rebates unrelated to the HVAC and Appli ance Rebate Program for the Florida Solar Energy System Incentives Program. In July 2011 a final report was released by the Florida Office of Energy on the Florida ENERGY STAR Residential HVAC Rebate Program. It showed a total of 4,286 rebates were approved and paid as a result of the Program. There was an additional 1,088 rebate applications that were rejected In February 2012, the Florida Office of Energy released their 2011 annual report, which contained supplemental data pertaining to how t he reallocated funds were spent on the Florida Solar Incentives for solar photovoltaic systems and solar hot water systems Th is study aims to determine the energy and cost implications of the Florida ENERGY STAR Re potential energy and cost implications to the energy and cost implications The findings of this study showed that the outcome energy and cost savings of the Florida ENER GY STAR Residential HVAC Rebate Program exceeded the potential energy and cost savings by approximately 50,000 megawatt hours (m Wh ) of energy, or approximately $5 M The main driver of the outcome energy and cost savings was the low rebate amount for solar hot water systems which made up 25% of the outcome energy and cost savings, but only cost 4% in rebates paid.

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11 CHAPTER 1 LITERATURE REVIEW Florida ENERGY STAR Residential HVAC Rebate Program Overview A literature review was completed to provide background information and data pertaining to the energy and cost implications of the Florida ENERGY STAR Residential HVAC Rebate Program. This chapter discusses the HVAC Rebate Program history and requirements, and an overview of the typical F lorida home Program History The United States Congress approved the State Energy Efficient Appliance Rebate Program (SEEARP) through the American Recovery and Reinvestment Act (ARRA) ( USDOE 2012) According to the U. S. Department of Energy (USDOE) The Recovery Act provided $296 M na tionwide to establish USDOE support for State rebate programs for residential ENERGY STAR appliance products. In addition to SEEARP funds, Florida also received State Energy Program (SEP) funds to initiate program s within the state to save energy within the residential home. States received formula based funding and the objectives are: Save energy by encouraging appliance replacement through consumer rebates Make rebates available to consumers Encourage energy ef ficiency within the home Keep administrative costs low while adhering to monitoring and evaluation requirements Promote state and national tracking and accountability Use existing ENERGY STAR consumer education and outreach materials

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12 In 20 09 the Florida Governor s Office allow ed the Florida Energy and Climate Commission (FECC) to apply for the federal grant. The State of Florida received $17.58 M to establish an ENERGY STAR appliance rebate program and an additional $15 M to dev elop a residential program to increase energy efficiency within the home. The grant came with specific guidelines on how the state program should be structured as established by the US Department of Energy The FECC conducted a series of public workshops d while also meeting the guidelines established by the USDOE. That prog ram was approved by the FECC ENERGY STAR Appliance Re bate Program and the Florida ENERGY STAR Residential HVAC Rebate Program focus on replacing residential appliances and improving energy efficiency in Florida homes (Florida ENERGY STAR Reside ntial HVAC Rebate Program 2010). On August 31, 2010, the Governor s Energy Office made the Florida ENERGY STAR Residential HVAC Rebate Program public and encouraged Florida homeowners to invest in a more efficient HVAC system. The P rogram was embraced by homeowners, HVAC contractors and energy R aters. According to t he Florida Office of E nergy (FOE), o ver 1 500 applications were received in the first week ( FOE 2010) On September, 14, 2010, the Governor s Energy Office released a statement saying that the program was on hold until further notice. On November 16, 2010 the Florida Legislature held a special session and passed rule 16B (Appendix A ). Rule 16B is the final decision pertaining to the Florida ENERGY STAR Residential HVAC Rebate Program and the Florida ENERG Y STAR Appliance Rebate Program. The Ruling

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13 decided that rebates for the Florida ENERGY STAR Residential HVAC Rebate Program would only be paid to those who contracted to have their HVAC system replaced after August 29, 2010 and before September 14, 2010. Rebates would also only be paid to those who mailed in their rebate form and required documentation on or before November 30, 2010. The ru ling appropriated $2,467,244 in funds for HVAC rebates an d re appropriated $28,902,623 less any outstandin g HVAC rebates, for outstanding solar rebates from the Florida Solar Energy Incentives Program (Florida Legislature 2010) In early 2011, the S tate estimated that appro ximately 3 000 homeowners qualified for the Florida ENERGY STAR Residential H VAC Rebate Program. On July 25 2011 a final report was released on the Florida ENERGY STAR Residential HVAC Rebate Program from the FOE It showed a total of 4,286 Rebates were approved and paid out as a result of the program (A ppendix A) The re was also an additional 1,088 Rebate applications that were rejected ( FOE 2011) Program Overview According to the Florida ENERGY STAR The Florida ENERGY STAR Residential HVAC Rebate Program is des igned to encourage existing homeowners to replace their old energy inefficient heating and cooling system with a properly sized energy efficient system and to ensure that their heating and cooling duct system has minimal leakage (Florida ENERGY STAR Residential HVAC Rebate Program 2010). Qualifying HVAC systems have been set by the federal government to meet the Federal Energy Tax Credits Standards. Systems that meet Federal Energy Tax Credits Standards will also meet the Florida ENER GY STAR Residential HVAC Rebate Program Standards

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14 In addition to purchasing a new central air conditioner, air source heat pump or geothermal heat pump in Florida that meets the Federal Energy Tax Credits standards, Florida homeowners must also hire eithe r a Florida Class 1 R ater, a State of Florida licensed Mechanic al Contractor, or a recognized Test and Balance A gent to perform a duct test on their home to document that the home has no more than 15 % leakage to the outside (as indicated by a score of 0.10 Qn.out 1 ) Home Ow ners that meet all of the referenced criteria are entitled to a r ebate in the amount of $1,500 (Florida ENERGY STAR Residential HVAC Rebate Program 2010) According to the Florida ENERGY STAR Residential HVAC Rebate Program, t he Program aims to provide a financial incentive to homeowners to upgrade their system to an energy efficient unit and to have their home ducting system checked and corrected concurrent with replacing their HVAC system Program Requirements HVAC s ystems Homeowners must install a new HVAC System that qualifies for the Florida ENERGY STAR Residential HVAC Rebate Program. There was a list of approved models available on the Governor ; s Energy Office Website http://www.rebates.com/floridahvac/ ( Florida Rebate 2010) Manual J r eport A Manual J Report is a computer generated report used as a sizing tool for HVAC Systems (R ESNET 2012) The Manual J Software calculates system sizing th rough a procedure developed by the Air Conditioning Contractors of America (ACCA ) and is 1 Normalized ADS (Air Distribution S ystem) leakage is the total volumet ric air leakage rate of the ADS to and from outdoors when the ADS system is depressurized to 25 pascals, normalized to the oyer, et al. 1998).

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15 provided by independent software companies The software uses building data and climate information to calculate the most effective sized unit for the building Buildi ng p ermit The program requires that all HVAC Systems are installed legally by getting a building permit. Building permits are applied for and received by the HVAC Contractor and all new HVAC installations are inspected upon completion. A copy of the Build ing Permit is posted onsite Duct t esting A duct test or Air Distribution System test, is required by the program to make sure that the efficient HVAC system installed is going to perform to its full potential. A duct test is a scientific performance bas ed test performed by a qualified Third P art y V erifier The duct test involves a multi step process of testing the duct sys tem and total leakage as a percentage to floor area A duct test or ADS test, is perfo rmed according to the steps listed in Appendix B and is documented with an air distribution system test report Program F unding and D istribution The Florida ENERGY STAR Residential HVAC Rebate Program was funded through a gran t from the Federal Recovery and Reinve stment Act. This Act was signed into law on February 17, 2009. The A ct was created to turn around the economic downturn to help promote infrastructure and jobs. Title XVI Section 1607 of the Federal Recovery and Reinvestment Act governs how the funds are d istributed and the appropriate use of funds (Federa l Recovery and Reinvestment Act 2010).

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16 Though t he program was directly f unded through a grant from the F ederal government, funds were al located and distributed by the S tate. Florida Statute 216.212 governs how federally distribu ted funds are allocated by the State L egislature. Federal Recovery and Reinvestment Act, Title XVI, Section 1607 The Federal Recovery and R einvestment Act, Title XVI, Section 1607 ( Appendix C ) refers to additional funding distributi on and assurance of a ppropriated funds. The section s tates that all funds must be ce rtified by the Governor of the S tate. It further requires the S tate Governor to request funds provide by this Act and to ensure that the funds are used to create jobs and p romote economic growth. The section also states that if the funds are not accept a n ce for use by the Governor, the State L egislature shall be able to adopt a concurrent resolution and provide funding to their state. Only if the Governor does not accept the funds for their State the Legislature can accept the funds and distribute the funds throughout the state. Florida State Statutes Chapter 216.212 The Florida State S tatutes are a permanent collection of S tate laws organized by subject area into a code made up of titles, chapters, parts and sections The Florida Statutes are updated annually by laws that create, amend, transfer, or repeal statutory material (Florida Legislature 2012). Florida State Statute Chapter 216.212 governs how the State is allowed to use Federal funds and dictates the procedure f or distributing said funds ( Appendix D ). According to the S tatute, the Governor and the Chief Financial Officer are responsible for the developing and implementing a plan for the allocation of Federal grants an d funding. The O ffice of the Governor is also responsible for creating a clearing house that is responsible for distributing the all federal g rants and funds throughout the S tate. The

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17 S tatute further states that all federal funds appropriated by C ongress mu st be ap proved for distribution by the State L egislature however, the Executive Office of the Governor or the Chief Justice of the Supreme C ourt ma y, after consultation with the legislatures Appropriations C ommittee, receive and distribute federally appro priated funds (Florida Legislature 2012) The Florida Solar Energy System Incentives Program Program History The Florida Solar Energy System Incentives Program was created in 2006 under the Florida Energy Technologies and Energy Efficiency Act (Florida Leg islature 2012). The Program began on July 1, 2006 and was slated to run through June 20, 2010. The program was administered by the FECC T housands of Florida home owners and business owners took advantage of the rebates and purchased qualifying solar syste ms. Over $ 59 M in outstanding rebates had been applied for by the public and accepted by the FECC before were able to publicly announce that funds had been depleted. The outstanding funds from the Program were eventually paid partiall y through the reallocated funds from the Florida ENERGY STAR Residential HVAC Rebate Program. Typical Florida Home A typical Florida home was developed to create a baseline to complete this research. In order to develop the typical Florida home, data was collected from the US Energy Administratio n, 2010 US Census and the Shimbe rg Center for Housing Studies at the M. E. Rinker Sr. School of Building Construction University of Florida

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18 Home Characteristics Information from the US Energy Administ 2009 RECS survey data for housing characteristics was used The dataset used for housing characteristics was eographic in South Region. The 2010 US Census data on Florida households was used to determine the average h ousehold size of owner occup ied homes in Florida. The Shimbe rg Center used to determine the average home size in Florida. Home Equipment and Appliances To determine the equipment and appliances included in the typical Florida home, The following data sets were used: USEA HC 1.10 Fuels Used and End Uses in South Region USEA HC 3.10 Appliances in South Region USEA HC 6.10 Space Heating in Sout h Region USEA HC 7.20 Air Conditioning in South Region USEA HC 8.10 Water Heating in South Region Building Energy Modeling For this research, three building energy models were developed. Building Energy Modeling (BEM) is a computer simulated approach to e stimate energy usage in a building. A list of approved BEM software is available on the USDOE website http://apps1.eere.energy/gove/building/tools_directory/alpha_list.cf m ( EERE 2011 ). BEM estimate s the energy use of a building according to model inputs per building plans and specifications. BEM can also be used to estimate energy savings of existing buildings by simulating potential upgrades To develop relevant building energy models that represent the typical Florida home, typical Florida home with HVAC Rebate, and typical Florida home with solar hot

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19 water rebate, Energy Gauge USA (Energy Gauge 2012) software was used. Energy Gauge USA is a user friendly, sophisticated home energy simulation software tool designed specifically for evaluati ng home energy efficiency. The software uses DOE 2.1 E hourly building energy simulation software to estimate energy use and provides evaluation of both energy use and economic and fina ncial impacts of home energy efficiency decision making. HVAC Systems Heating, Ventilating, and Air Conditioning (HVAC) equipment perform heating and/or cooling for residential, commercial or industrial buildings. The HVAC system may also be responsible f or providing fresh outdoor air to dilute interior airborne contaminants such as odors from occupants, Volatile Organic Compounds (VOCs) emitted from interior furnishings, chemicals used for cleaning, etc. A properly designed system will provide a comfortab le indoor environment year round when properly maintain ed (FSEC 2012). Common types of HVAC systems used include Cooling Only Split System, Cooling Only Packaged System, Heat Pump, Chilled Water, Window Air Conditioners and Packaged Thermal Heat Pump. Acco rding to the US Energy Administration, the system that is most prevalently used in Florida is a central air conditioner with electric heat pump. System E fficiencies For this research, HVAC system efficiencies must be determined for both of the Building E nergy Models in order to calculate the potential energy and cost implications and outcome energy and cost implications

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20 The first or existing, system efficiency must be determined for Bu ilding Energy To determine the effici ency of t h e HVAC system for Building Energy Model 1, information from the Energy Policy Act of 1992 was used ( USDOE 2012). This Act set s standards for Seasonal Energy Efficiency Ratio ( SEER ) and Heating Seasonal Performance Factor ( HSPF ) ratings for all re sidential heating and cooling equipment. The minimum standards for HVAC systems under this act were 10 SEER and 6.8 HSPF. Because the life span of HVAC systems is approximately 15 years, as discussed below, efficiencies from the 2006 Energy Policy Act were not used. The second, or upgraded, efficiency for Building Energy Model 2, Typical Florida Home with HVAC Upgrade w as determined by using the majority SEER rating from the Florida ENERGY STAR Residential HVAC Rebate Program list of approved air conditioning equipment (Florida Rebate 2010) A corresponding high efficiency heat pump rating was then used to calculate the HSPF rating The efficiencies used for Building Energy Model 2 are 16 SEER and 9.2 HSPF equipment ratings for the T ypical Flor ida H ome with HVAC upgrade System Life Spans and Degradation According to the USDOE, the lifespan of a central air conditioner is about 15 to 20 years ( USDOE 2012). According to the National Association of Builders (NAHB), the life span of a central air c onditioner is 10 to 15 years and the life span of an electric heat pump is 15 to 16 years (NAHB 2012). For the purpose of this research a life span of 15 years was used. Additionally, regular system maintenance was assumed and system degradation was not f actored

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21 Air Distribution System Leakage An Air distribution system, or duct system, is a system used to distribute air from the HVAC system throughout the home. For this research, ADS leakage average rates were needed for both building energy models to de termine both potential energy savings and outcome energy savings of the Florida ENERGY STAR Residential HVAC Rebate Program. According to FSEC and Cummings (1990), duct systems in existing home leak between 10 % and 30 % of the air distribution s ystems rated flow. Research by Cummings (1990) has shown that sealing ducts reduces duct leakage by 16 % to 18 % For research purposes, the typical Florida Home will assume 20 % duct leakage before duct repairs, and will assume 3 % duct leakage after duct rep airs. Solar Photovoltaic Systems P hotovoltaic systems or solar cells as they are often called, are semiconductor devices that convert s unlight into direct current electricity. Photovoltaic systems are generally classified according to their functional an d operational requirements, their component configurations, and how the equipment is connected to other power sources and electrical loads. The two principal classifications are grid connected or utility interactive systems and stand alone systems. Photovo ltaic systems can be designed to provide DC and/or AC power service, can operate interconnected with or independent of the utility grid, and can be connected with other energy sources and energy storage systems ( FSEC 2012) System Efficiency For this resea rch, the outcome energy and cost implications of the Florida ENERGY STAR Residential HVAC Rebate Program is dependent on calculations of

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22 solar photovoltaic system efficiency. To determine the efficiency of s olar photovoltaic systems a solar cal culation worksheet was used This worksheet was developed by Dr. Charles Kibert University of Florida. The worksheet was then customized to f acilitate the research objective ( Table 3 8 ) The solar calculations worksheet takes into account the degradation discussed below, of the solar photovoltaic system. To determine the daylight hours available, FSEC ( FSEC 2012) was used System Life Span and Degradation System Life Span and Degradation M ost solar photovoltaic systems have a life span o f 30 to 40 years. While the system s actually last that long, manufacturer warranties and system component failure seem to prove otherwise. According to Dankoff and Shwartz of Home Power Magazine ( Dankoff 2007 ) most manufacturer warranties allow for 20% d egradation and a life span of 20 to 25 years In the report Module 30 Year Life: What does it me ans and is it predictable/achievable, it is said that the development of a common 30 year pass/fail certification for all PV module types is unexpected. For thi s research, a 25 year life span for solar photovoltaic systems will be assumed. According to Degradation Analysis of Weathered Crystalline Silicon PV Modules ( Osterwald, et el ) the average degradation of solar photovoltaic systems is 0 .72 % per year. Fo r this research 0 .72 % degradation per year will be used. Hot Water Heaters For this research hot water heater information is needed for all building energy models created for this research to determine the outcome energy and cost implications of the Flor ida ENERGY STAR Residential HVAC Rebate Program.

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23 Water heaters in homes come in a variety of different packages. For this research, as identified by the US Energy Administration, electric conventional storage water heaters are the most prevale nt throughout the state of Florida and will be used for the building energy models. T he Energy Gauge USA determined water heater size of our typical Florida home; a 40 gallon capacity will be used in our building energy models for this research. System Ef ficiencies It is important to understand the efficiencies of electric conventional storage water heaters in order to input accurate information into the building energy models. The National Appliance Energy Conservation A ct of 1987 first set standards for water heating systems. According to USDOE, the National Appliance Energy Conservation Act of 1987 and the Energy Policy Act of 1992 the efficiency factor ratings between 82% and 88% (USDOE 2012) For this research an efficiency factor rating of 85% was u sed. System Life Span For this research, the life span of the water heater used in our typical Florida home will not be factored. Solar Hot Water Heating Systems In order t o calculate the outcome energy and cost implications of the Florida ENE RGY STAR Residential HVAC Rebate Program the savings from solar hot water heating systems for both residential and light commercial buildings were estimated For the purpose of this research, both residential and light commercial solar hot water heating s ystems will be grouped together.

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24 Moreover, the integral collector storage system will be used as the solar hot water system. To d Simplified Sizing Procedure for Solar Domestic Hot Water Systems w as used The results of the Sizing Procedure was then cross referenced with list of approved solar hot water systems to determine the system to be used in building energy model 3 ( FSEC 2012) System Efficiencies For this research, solar hot water system efficiency of the s ystem used in Building which was derived from Simplified Sizing Procedure for Solar Domestic Hot Water Systems The se efficiencies were used in creating Building Ener gy Model 3. System Life Span To determine the potential energy and cost implications for solar hot water systems, the life span of the system was needed. According to FSEC and ENERGY STAR the average life expectancy of a solar hot water system is 20 years. For this research a 20 year life span will be used. Utility Rates To determine the cost savings of the Florida ENERGY STAR Residential HVAC Rebate Program, utility rates must be determined. For this research, utility rates determin ed by the building energy modeling software, Energy Gauge USA, was used. A rate of $0.11225 per kWh was used to determine the cost savings of this research.

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25 CHAPTER 2 RESEARCH METHODOLOGY Overview The objective of this study is to determine the energy and cost implications of the Florida ENERGY STAR Residential HVAC Rebate Program by comparing the P rogram s potential energy and cost implications to the P rogram s outcome energy and cost implications. The following steps were followed to determine the energy and cost implications of the Florida ENERGY STAR Residential HVAC Rebate Program. Step 1: Typical Florida h ome Administration, 2010 US Census, and the Shimbe rg Center. Data from the US Energy Administration was used to determine the house construction characteristics, equipment and appliances, including fuel types used in the typical Florida home. The 2010 US Census data was used to determine the household si ze of owner occupied housing in Florida for the typical Florida home The Shimbe the a verage Florida home size according to home sale statistics for the typical Florida home This information was used to create the t ypical Florida homes floor plan, elevations, and building section ( Appendix F ). Step 2: Building Energy Models Create B uil ding Energy Model 1 using Energy Gauge s oftware to calculate the Building Energy M od el 2 to ENERGY STAR

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26 according to the Programs requirements. Create B uil ding Energy M odel 3 to represent Step 3: Potential Energy and Cost Implications and cost implications not been interrupted by comparing the Building Energy Model 1 to Building Energy Model 2 created by Energy Gauge Software to determine the average energy savings in a home when replacing the average existing HVAC system with the P rogram s proposed new HVAC system and requirements The ener gy savings will be multiplied by 10,000 available HVAC rebates which is $ 15 M in allocated funds divided by $1,500 rebates available to home owners, and cost implications Step 4: Outcome Energy and Cost Implications outcome energy and cost implications P rogram by multiplying the exact number of HVAC rebates paid by the energy savings calculated by comparing Building Energy Model 1 to Building Energy Model 2, plus the average energy savings of solar photovoltaic systems paid for by redirected funds from the Florida ENERGY STAR Residential HVAC Rebate Program, plus the total number solar hot water systems paid for by the redirected funds from the Florida ENERGY S TAR Residential HVAC Rebate Program multiplied by the energy savings calculated by comparing Building Energy Model 1 to Building Energy Model 3.

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27 Step 5: Compare Potential Energy and Cost Implications to Outcome Energy and Cost Implications Compare the P ro gram s potential energy and cost implications to its outcome energy and cost implications to determine the results and develop recommendations for future disbursement of such funds

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28 CHAPTER 3 RESULTS AND ANALYSIS Typical Florida Home The typical Florida h ome for this research is a 2,051 SF heated and cooled space detached single fa mily dwelling built in 1985 for 4 occupants. The home features 4 bedrooms, 2 bathrooms, living room, fami ly room, eat in kitchen and a 2 car garage. The construction characteris tics of this home are slab on grade, concrete block construction with unverified insulation, drywall finished walls, 8 foot tall ceilings, composite shingle roofing, and single pane windows. For the purpose s of this research 50% carpet and 50% tile floor in g was assumed. The equipment used in the typical Florida house is a central air conditioning system with an electric heat pump and an electric 40 gallon storage water heater. The appliances present in a typical Florida home include a refrigerator with at tached freezer, electric cook top with attached oven (range), microwave, dishwasher, clothes washer and dryer. For this research only typical construction drawings were created. These drawings include a floor plan, building elevations an d typical wall sec tion ( Appendix F ). A summary of building characteristics, components, equipment and appliances can be found in the building input summ ary of building energy model 1 ( Appendix G ) Building Energy Modeling Three building energy models were created for this research. Building Energy M odel 1 represents the typical Florida home. Building Energy Model 2 represents the typical Flor ida home after the HVAC upgrade according to the Florida ENERGY STAR Residential HVAC Rebate Program requirements. Buildin g Energy Model 3 represents the typical Florida home after installing a solar hot water system.

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29 Building energy model 1 (Appendix G ) representing the ty pical Florida home, showed an annual energy consumption of 15,36 1 kWh per year ( Appendix G ) Building e ner gy model 2 (Appendix H ) representing the typical Florida home after the HVAC upgrade according to the Florida ENERGY STAR Residential HVAC Rebate requirements showed an annual energy consumption of 12,581 kWh per year ( Appendix H ) Building energy model 3 (Appendix I ) representing the typical Florida home after installing a solar hot water system (not including the HVAC Rebate), showed an annual energy consumption of 13,042 kWh per year ( Appendix I ). Potential Energy and Cost Impli cations The findings of potential energy and cost implications of Florida ENERGY STAR Residential HVAC Rebate Program show that Building Energy Model 1, the existing typical Florida 15,361 kWh per year, and Building Energy Model 2, the existing typical Florida home with the HVAC upgrade according to the Florida ENERGY STAR had energy consumption of 12,581 kWh per year. This equals in 2,780 kWh of energy saving s per year or $312 (Table 3 1). The energy savings are due to three main factors; Upgrading from an 10 SEER Air Conditioning System to a 16 SEER Air Conditioning System, Upgrading from a 6. 8 HSPF electric heat pump to a 9.2 HSPF electric heat pump and sea ling the existing air distribution system, or duct system, reducing duct leakage from approximately 20 % leakage to approximately 3 % leakage To determine the potential energy and cost implications of the Florida ENERGY STAR Residential HVAC Reba te program the energy savings of over the life of the upgraded HVAC system was calculated For the upgrade d HVAC system a 15 year life

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30 span was assumed with regular maintenance and no deterioration of energy performance The potential energy savings of the Florida ENERGY STAR Residential HVAC Rebate Program is the energy savings of the typical Florida home after replacing the HVAC system according to the Program. This is calculated as a product of energy savings of 2,780 kWh, HVAC life span of 15 years, and the total number of homes eligible for the rebate of 10,000. This equals a total potential energy savings of 417 ,000,000 kWh or $46,808,250 (See Table 3 2 ). Outcome E nergy and Cost Implications The following procedure is followed to determi n e the outcome energy and cost implications of the Florida ENERGY STAR Residential HVAC Rebate Program: Determine the e nergy and cost implications of the actual number of HVAC rebates approved and paid out through the Florida ENERGY S TAR Residential HVAC Rebate Program. 1. Determine the amount of re allocated funds from the Florida ENERGY STAR Residential HVAC Rebate Program to pay for outstanding rebates from the Florida Solar System Incentives Program. 2. Determine the e nergy an d cost implications of the solar photovoltaic systems installed from the Solar Energy System Incentives Program that was paid for with the re allocated funds from the Florida ENERGY STAR Residential HVAC Rebate Program. 3. Determine the energy and cost implications of the solar hot water systems installed from the Solar Energy System Incentives Program that was paid for with the re allocated funds from the Florida ENERGY STAR Residential HVAC Rebate Program by comparing Building Energy Mo del 1 to Building Energy Model 3 4. Add the energy and cost implications of HVAC rebates given with the energ y and cost implications of solar photovoltaic systems and solar hot water systems installed under the Solar Energy System Incentives Program and paid for by the Florida ENERGY STAR Residential HVAC Rebate Program to determine the outcome energy savings of the Florida ENERGY STAR Residential HVAC Rebate Program.

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31 Energy and Cost Implications of HVAC Rebates There are two steps to de termine the outcome energy and cost implications from the amount of HVAC Systems replaced from the Florida ENERGY STAR Residential HVAC Rebate Program: 1. Determine the actual number of HVAC Systems replaced 2. Multiply the actual number of HVAC Syst ems replaced by the life time energy savings determined in Step 1. In July 2011, the final tally of the Florida ENERGY STAR HVAC Rebate Program was released. There were 4,268 rebates app roved and paid out due to the P rogram. In addition to the 4, 268 rebat es, 1,088 were rejected. For purposes of this research, the rejected rebates were not included for determining total energy savings. The total outcome energy savings due to the HVAC rebates of program is calculated by the energy savings of the ty pical Florida home when replacing the HVAC system according to the Program of 2,780 kWh, multiplied by the HVAC life span of 15 years and the total number of homes that received the rebate of 4,268 This equals a total kWh of 177,975,600 kWh or $19,977,761 (T able 3 3 ). Re a llocated f unds. According to the November 2010, Florida Legislature s Budget Committee Decision, $24,986,048 was allocated to the outstanding rebates for the Solar Energy System Incentives Program The original amount designated for the Florida Residential HVAC Rebate program was $15 M For this r esearch, only the $15 M originally allocated for the Florida ENERGY STAR Residential HVAC Rebate Program will be considered. The total re allocated funds to pay for the Solar Energy S ystem Incentives Program is the total allocated budget for the Florida ENERGY STAR HVAC Rebate

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32 Program minus the total amount of HVAC rebates paid In July 2011, the final tally of the Florida ENERGY STAR Residential HVAC Rebate Prog ram showed that 4,268 rebates were given The total financial amount used to fund the outstanding rebates for the Florida Solar Energy System Incentives Program is calculated by the total number of rebates approved and paid out of 4,268,multiplied by the rebate amount of $1,5 00 which equals $6,402,000 This amount is subtracted from original amount allocated to the Program of $15 M which equals $8,598,000 ( Table 3 4 ). Solar p hotovoltaic s ystems In order to determine the outcome energy and cost implicat ions from the re allocated funds for solar photovoltaic systems supplemental data from the Florida rebates paid for with the re allocated funds according to the Flo rida Le gislatures House Bill 16B Because the amount of re allocated funds from the Florida ENERGY STAR Residential HVAC Rebate Program was the amount of funds available after the Programs rebates had been paid, the data was interpolated to determine t he amount of energy savings. To calculate the energy and cost implications of the solar photovoltaic systems the total dollar amount of rebates paid from the supplemental data from the Florida Energy Office 2011 Annual Report was calculated to be $23,135,9 27 T his dollar amount was then divided by the total amount of re alloc ated funds per rule 16B of $24,986,048 in order to calculate the percentage of solar photovoltaic systems installed of 92.6%. T his percentage was then multi plied by the total dollar amo unt re allocated from the Florida ENERGY STAR Residential HVAC Rebate Program of $8,598 ,000 to get a total dollar

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33 amount from the re allocated funds applied to solar photovoltaic system rebates of $7,961, 748 (Table 3 5 ) The Florida Solar Ener gy System Incentives Program provided a solar photovoltaic rebates in the amount of $4 per watt based on the total wattage rating of t he system; this equals $4,000 per kWh. For research purposes, solar systems exceeding the size for a maximum rebates will not be assumed. Because the outstanding Florida Solar System Incentives Program rebates as per rule 16 B, were only paid at approximately 52% of the original reques ted amounts, the total dollar amount must be adjusted to reflect the actual rebate amount of $2.08 per watt, or $2,080 per kWh (Table 3 6 ) To determine the total kWh of energy savings of solar photovoltaic systems paid for by the re allocated funds from the Florida ENERGY STAR Residential HVAC Rebate Program we must divide the system specific re allocated funds of $7,961, 748 by the adj usted rebate amount of $2,080 per kWh. This equals 3,828 kWh of solar ph otovoltaic systems paid for with the re allocated funds from the Florida ENERGY STAR Residential HVAC Rebate Program (Ta ble 3 7 ) To determine the outcome energy and cost implications of solar photovoltaic systems a table to calculate energy production over the lifespan of the systems was created. A 25 year life span of the solar photovoltaic systems was assumed with a 0.7 2% efficiency loss per year, over the life of the systems, 5.5 sunlight hours per day, 365 days per year to determine the total outcome energy savings of solar photovoltaic systems. Over the 25 year life span of the solar photovoltaic systems, the total en ergy savings was 176,399,827 kWh or $19,800,880 (Table 3 8).

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34 Solar h ot w ater s ystems In order to determine the outcome energy and cost implication s from the re allocated funds for solar hot water systems, supplemental data from the Florida Energy Center allocated funds from the Florida ENERGY STAR Residential HVAC Rebate Program was the amount of funds available after the Programs rebates had been paid, the data was interpolated to determ ine the amount of energy savings. To calculate the energy and cost implications of the solar hot water systems the total dollar amount of rebates paid from the supplemental data from the Florida Energy Office 2011 Annual Report wa s calculated to be $1,850, 121 T his dollar amount was then divided by the total amount of re alloc ated funds per rule 16 B of $24, 986,048 in order to calculate the percentage of solar photovoltaic systems installed of 7.4%. This percentage was then multiplied by the total dollar amo unt re allocated from the Florida ENERGY STAR Residential HVAC Rebate Program of $8,598,000 to get a total dollar amount from the re allocated funds applied to solar photovoltaic system rebates of $ 636,252 (table 3 9 ) The Florida Solar System Incentives Program paid $500.00 per solar hot water systems. Because the outstanding Florida Solar System Incentives Program rebates, as per rule 16 B, were only paid at approximately 52% of the original requested amounts, the total dollar amount must be a djusted to reflect the actual rebate amount of $260 (Table 3 10 ) To determine the kWh of energy savings from solar hot water systems, the total amount of solar hot water systems installed must be determined. To calculate the amount of solar hot water syst ems installed, the system specific adjusted re allocated

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35 funds, from the Florida ENERGY STAR Residential HV AC Rebate Program of $636,252 is divided by the a djusted rebate amount of $260 This equals 2,447 solar hot water systems installed with r e allocated funds from the Florida ENERGY STAR Residential HVAC Rebate Program (Table 3 11 ) To determine the total kWh of energy savings of solar hot water systems, the total number of solar systems installed of 2,447 is multiplied by the avera ge energy savings of solar hot water systems determined by the difference of building energy model 1 of 15,361 kWh and building energy model 3 of 13,042 kWh equals energy savings of 2, 319 kWh per year, multiplied by the life expectancy of solar hot water s ystems of 20 years. This equals 113,491,860 kWh of energy savings from solar hot water systems or $12,739,461 (T able 3 12 ) Outcome Energy and Cost Implications The findings for the outcome energy savings of the Florida ENERGY STAR Residential HVAC Rebate Program is 467,867,287 kWh of energy savings or $52,518,103 (Table 3 13 ). These energy savings are due to 177,975,600 k Wh of savings from the actual HVAC system replacements from the Florida ENERGY STAR Residential HVAC Rebate Progr am 176,399,827 k Wh of energy savings from re allocated funds for solar photovoltaic systems and 113,491,860 kWh of energy savings from re allocated funds for solar hot water systems installed from 2009 2010 Florida Solar Energy System Incentives Program Compare Potential Energy and Cost Implications to Outcome Energy and Cost Implications The research found that the potential energy and cost savings of the Florida ENERGY STAR Residential HVAC Rebate Program was 417,000,000 kWh compared

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36 to the outcome energy and cost savings of the Florida ENERGY STAR Residential HVAC Rebate Program of 467,867,287 kWh This equated to a difference of 50,867,287 kWh or $ 5,709,853 (T able 3 14 ).

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37 Table 3 1. Typical Florida Home with HVAC Upgrade Energy and Cost Savings Amount Description 15,361 kWh Per Year Typical Florida Home 12,581 kWh Per Year Typic al Florida Home with HVAC Upgra de = 2,780 kWh Per Year Energy Savings Per Home x $0.11225 Cost Per kWh = $312 Cost Per Year Energy Savings Table 3 2. Potential Energy and Cost Savings Amount Description 2,780 kWh Per Year Energy Savings Per Home x 15 Year HVAC Life Span x 1 0,000 Eligible Homes for HVAC Rebate = 417,000,000 kWh Total Potential Energy Savings x $0.11225 Cost Per kWh = $46,808,250 Cost Total Potential Energy Savings Table 3 3. Actual HVAC Rebates Paid Energy and Cost Savings Amount Description 2,780 kWh Per Year Energy Savings Per Home x 15 Year HVAC Life Span x 4,268 Actual Rebates Paid = 177,975,600 kWh Total Actual HVAC Rebates Paid Energy Savings x $0.11225 Cost Per kWh = $19,977 ,761 Cost Total Actual HVAC Rebates Paid Energy Savings Table 3 4. Total Reallocated Funds from HVAC Rebate Program Amount Description $15,000,000 Total Funds for HVAC Rebate Program 4,26 8 Total HVAC Rebates Paid x $1,500 Rebate Amount = $8,598,000.00 Total Reallocated Funds from HVAC Rebate Program

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38 Table 3 5. Total Reallocated Funds for Solar Photovoltaic Systems Am ount Description $23,135,927 Total Spent on Solar Photovoltaic Systems $24,986,048 Total Spent on all Solar Systems = 92.6% Total Percentage Reallocated Funds For Solar Photovoltaics x $8,598,000 Total Reallocated Funds from HVAC Rebate Program = $ 7,961,748 Total Reallocated Funds for Photovoltaic Systems Table 3 6. Adjusted Solar Photovoltaic Rebate Amounts Amount Description $4,000 Original Rebate for Solar Photovoltaic System per kWh x 52% Of Orignal Rebate Paid Per Rule 15B = $2,080 Adjusted Solar Photovoltaic System Rebate Amount Per kWh Table 3 7. Total kWh Solar Photovoltaic Systems Paid for with Reallocated Funds Amount Description $7,961,748 Total Reallocated Funds for Solar Photovoltaic Systems $2,080 Rebate Amount Per kWh = 3,828 kWh Solar Photovoltaic Systems

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39 Table 3 8. Outcome Energy and Cost Savings of Photovoltaic Systems Year Efficeincy Loss Total kWh Sunlight Hours Days Per Year Total kWh Per Year 1 0.72% 3,828 5.5 365 7,684,710 2 0.72% 3,800 5.5 365 7,629,380 3 0.72% 3,773 5.5 365 7,574,449 4 0.72% 3,746 5.5 365 7,519,913 5 0.72% 3,719 5.5 365 7,465,769 6 0.72% 3,692 5.5 365 7,412,016 7 0.72% 3,666 5.5 365 7,358,649 8 0.72% 3,639 5.5 365 7,305,667 9 0.72% 3,613 5.5 365 7,253,066 10 0.72% 3,587 5.5 365 7,200,844 11 0.72% 3,561 5.5 365 7,148,998 12 0.72% 3,536 5.5 365 7,097,525 13 0.72% 3,510 5.5 365 7,046,423 14 0.72% 3,485 5.5 365 6,995,689 15 0.72% 3,460 5.5 365 6,945,320 16 0. 72% 3,435 5.5 365 6,895,313 17 0.72% 3,410 5.5 365 6,845,667 18 0.72% 3,385 5.5 365 6,796,378 19 0.72% 3,361 5.5 365 6,747,444 20 0.72% 3,337 5.5 365 6,698,863 21 0.72% 3,313 5.5 365 6,650,631 22 0.72% 3,289 5.5 365 6,602,746 23 0.72% 3,265 5.5 365 6,555,207 24 0.72% 3,242 5.5 365 6,508,009 25 0.72% 3,219 5.5 365 6,461,152 Total kWh Outcome Solar Photovoltaic System Energy Savings 176,399,827 Cost per kWh x $0.11225 Total Cost Outcome Solar Photovoltaic System Energy Savings $19,800, 880 Table 3 9. Total Reallocated Funds for Solar Hot Water Systems Amount Description $1,850,120 Total Spent on Solar Hot Water Systems $24,986,048 Total Spent on all Solar Systems = 7.4% Total Percentage Reallocated Funds For Solar Hot Water x $8,598,000 Total Reallocated Funds from HVAC Rebate Program = $636,252 Total Reallocated Funds for Hot Water Systems

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40 Table 3 10 Adjusted Solar Hot Water System Rebate Amounts Amount Description $500 Original Rebate for Solar Hot Water System Each x 52% Of Original Rebate Paid Per Rule 15B = $260 Adjusted Solar Hot Water System Rebate Amount Each Table 3 11. Total kWh Sola r Hot Water Systems Paid for with Reallocated Funds Amount Description $636,252 Total Reallocated Funds for Solar Hot Water Systems $260 Rebate Amount = 2,447 Total Solar Photovoltaic Systems Installed Table 3 12. Outcome Energy and Cost Savings of Solar Hot Water Systems Amount Description 15,361 kWh Per Year Typical Florida Home 13,042 kWh Pe r Year Typical Florida Home with SHWS Upgrade = 2,319 kWh Per Year Energy Savings Per Home x 2,447 Total Number of Solar Hot Water Systems Installed x 20 Year Life Span of Solar Hot Water System = 113,491,860 kWh Outcome Energy Savings of Solar Hot Wat er Systems x $0.11225 Cost per kWh = $12,739,461 Cost Outcome Energy Savings of Solar Hot Water Systems Table 3 13. Total Outcome Energy and Cost Savings Amount Description 177,975,000 kWh Actual H VAC Rebates Paid + 176,399,827 kWh Solar Photovoltaic Systems + 113,491,860 kWh Solar Hot Water Systems = 467,867,287 kWh Total Outcome Energy Savings x $0.11225 Cost Per kWh = $52,518, 103 Cost Total Outcome Energy Savings Table 3 14. Compare Pote ntial to Outcome Energy and Cost Savings Amount Description 417,000,000 kWh Potential Energy Savings 467,867,287 kWh Outcome Energy Savings = 50,867,287 kWh Difference of Energy Savi ngs x $0.11225 Cost Per kWh = $5,709,853 Cost Difference of Energy Savings

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41 CHAPTER 4 CONCLUSION S AND RECOMMENDATIONS Conclusions In conclusion, the Florida ENERGY STAR outcome energy and cost savings saved a total of 467,867,287 kWh of energy or $52,518,10 3 The Florida ENERGY STAR Residential HVAC Rebate Programs potential energy and cost savings was 4 17,0 00,000 kWh of energy, or $46,808,250. This equals a difference of 50 867,287 kWh of energy or $5,709,85 3 savings more than the potential energy and cost savings This conclusion is due in large part to the relatively low rebate amount for solar hot water systems which made up for approximately 25% of the outcome energy and cost savings, but only used approximately 4% of the total funds. Solar photovoltaic systems accounted for approximately 38% of the outcome energy and cost savings and used approximately 53% of the total funds. The actual HVAC Rebates paid accounted for approximately 37% of the outcome energy and cost savings and used approximately 43% of the total funds. According to this study the outcome energy and cost savings performed better than the potential energy and cost savings due to the discounted rebate amounts of 52% of t he original rebate amount. If the rebate amounts were paid at 100%, the total outcome energy and cost savings would have been approximately half the outcome energy and cost savings estimated This study shows that the final decision by the Florida legisla committee on the Florida ENERGY STAR Residential HVAC Rebate Program did not take into account the energy implications of the Program but did result in positive

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42 energy and cost savings The results of this study show that an enorm ous amount to energy savings was due to the discounted rebate amounts of solar photovoltaic and solar hot water systems Research Limitations This study is an example of how building energy modeling can be used to estimate energy savings for rebate progra m s Though building energy modeling is a highly useful and accurate tool for modeling energy use in buildings and homes, for this research, few assumptions were made such as HVAC system efficiencies and the typical Florida home design which were driving fa ctors of the study findings. The subject home was designed to resemble a typical Florida home. This home plan is typical of homes built from and is prevalent throughout the state. Th is subject home design was developed to resemble the type o f home that would be mo st likely to be replacing and HVAC system. The HVAC efficiency of 10 SEER and 6.8 HSPF assumptions for the subject the Energy Policy Act of 1992 ( USD OE 2012) The duct leakage assump tions for this model of 20 % is the average estimated duct leakage of existing homes in Florida according to the Florida Solar Energy Cent er ( FSEC 2012). The HVAC efficiency of 16 SEER and 9.2 HSPF assumptions for the subjec t home with Program HVAC upgrade was calculated by using the Programs list of approved air conditioning units and using the majority SEER rating from the list. A correlating HSPF rating was assigned. Duct leakage of 3 % was used to reflect the performance o f p ersonally tested ducts for th is P rogram and the P rograms duct leakage requirement.

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43 The results of this study are only an estimate of potential energy and cost savings and the outcome energy and cost savings of the Florida ENERGY STAR Resident ial HVAC Rebate Program. Further research is required to determine the measured, or Recommendations Though the Florida ENERGY STAR Residential HVAC Rebate Program outcome energy and cost savings was due to a combination of HVAC rebates and re allocated funds to pay outstanding solar photovoltaic system and solar hot water system rebates, it is not recommended that future HVAC rebate programs be split to pay rebates for both. Based on the above research, the following lists some of the recommendations for future Rebate Programs. Building Energy Modeling Building energy modeling is a proven tool to develop energy savings potential of different building HVAC systems. Using Building Energy Modeling, the cost ef fective energy saving solution for a ny building can be estimated. It is recommended that Building Energy Modeling be used to estimate potential energy savings before Program implementation. Building Energy Modeling should be included in the rebate require ments for individual homes. A building energy model performed by a Third Party Verifier may be used for both ensuring that energy savings are achievable and to provide documentation to calculate the actual energy savings of the Program upon completion. H VAC Rebates Future HVAC Rebate Programs should ensure that the maximum energy saving potential of the Program is realized. One key factor in ensuring maximum energy savings of future HVAC Rebate Programs is to require Air Distribution System testing.

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44 Futu re HVAC Rebate Programs should include Air distribution System tests by qualified Third Party Verifiers and should require leakage of less than 5%. Solar Photovoltaic Rebates Recently the price solar photovoltaic systems have reduced significantly. With lower prices for solar photovoltaic systems, future solar Rebate Program should reduce the amount of the rebate to reflect this reduction in up front costs to the consumer. This may potentially make solar rebates more competitive with other Rebate Programs concerning energy and cost savings. Future solar Rebate Programs should evaluate the cost and benefits of these systems to determine their viability to rebate programs. Solar Hot Water System Rebates Future solar hot water system Rebate Programs should a lso be considered for future Rebate Programs concerning energy savings. As discussed in this research, the rebate amount paid for solar hot water systems was directly responsible for t he outcome energy savings outperforming the potential energy savings F uture solar hot water system rebates should keep the rebate amount low in order to maximize the number of systems installed. State Funded Revolving Rebate Program Another way to accomplish a successful rebate program aimed at energy efficient systems for residential homes is to have a State funded revolving Rebate Program that may be used for new construction The best time to install energy efficient system, whether it is an HVAC system, solar photovoltaic system or solar hot water system, is during const ruction phase This will offer owners and builders a financial incentive to install energy efficient systems

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45 Energy efficiency rebates are an excellent way to save energy, money and spur economic growth. Further research into the feasibility of different energy efficient technologies is required to ensure future rebate programs and both financially sound and energy saving programs.

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46 APPENDIX A HVAC REBATE PROGRAM FINAL TOTALS FINAL TOTALS THE FLORIDA ENERGY STAR HVAC REBATE PROGRAM July 25, 2011 The Florida ENERGY STAR HVAC Rebate program was held in September of 2010. The program launched on August 30, 2010, and closed on September 14, 2010. To qualify for the program a Floridian had to purchase a new ENERGY STAR qualifying HVAC or geothermal unit between August 30, 2011 and September 14, 2011. Florida consumers received rebates on ENERGY STAR central air conditioners, air source heat pumps, and geothermal heat pumps if their installed systems met the Federal Energy Tax Credits standard and with a system duct test resulting in no more than 15% leakage to the outside. These actions qualified customers for a rebate of $1,500. Floridians had to mail in: an application, a new system purchase receipt, a Manual J form that indicated the appropriate sized unit, a copy of the local building permit, and a copy of rebate, customers would also qualify for the Federal Energy Tax Credits on those same HVAC or geothermal units Number of Appliances There were 4,268 Floridians that received ENERGY STAR HVAC rebates. Of the Floridians that purchased new HVAC systems, the most frequent system purchased were central a ir conditioners (57%), followed by air source heat pumps (42%), and last geothermal heat pumps at just under one percent. The low take rate of geothermal systems is not surprising because the technology is still very expensive as compared to air cooled sy stems. In addition, to be effective, geothermal systems require a large differential between the air temperature and ground temperature and those conditions occur primarily in the northern part of the state. TABLE 1 APPLIANCE CATEGORIES PURCHASED IN ENERGY STAR HVAC REBATE PROGRAM ENERGY STAR HVAC Type Number of Rebate Payments Central Air Conditioners 2461 Air Source Heat Pumps 1776 Geothermal Heat Pumps 31 TOTAL 4268

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47 Economic Stimulus Based on the application receipt price of the 4,268 HVAC and geothermal systems purchased in order to receive a rebate, the economic stimulus to the Florida economy was $26,745,889. In addition, assuming each Floridian only paid $300 per required duct test that was another $1.28 million invested in green jobs through energy efficiency testing. The results are for every one dollar spent by the state, on this rebate program, consumers invested approximately five dollars into the economy. Energy Savings Based on the energy savings calculator provided by the USDOE, through participation in the ENERGY STAR HVAC Rebate program Florida consumers are estimated to save 4,312,367 kWh per year off their electric bills. Rejected Rebates Of those consumers that mailed in applic ations, 1088 had their HVAC rebate rejected. Approximately 75% of those rejected were because the purchase date was outside the August 30 through September 14, 2010 purchase range. The other 25% were rejected for one of the following reasons: they mailed in their applications after November 30, 2010, they failed to provide one of the required documents, or they purchased a system that did not meet the Federal Energy Tax Credits standards. Participation in the ENERGY STAR Program by Florida C ounty Individuals in 49 counties participated in the Florida ENERGY STAR HVAC Rebate program. The top five counties with consumers participating in the rebate program are in order: (1) Palm Beach, (2) Broward, (3) Alachua, (4) Sarasota, and (5) Miami Dade. In comparison, the five most populous Florida counties, according to the 2000 census, are (1) Miami Dade, (2) Broward, (3) Palm Beach, (4) Hillsborough, and (5) Pinellas. It is not surprising to see the City of Gainesville or Sarasota in the top five list because both have aggressive energy conservation programs. TABLE 2 Rebate Payments Mailed by Florida County and ENERGY STAR HVAC Type July 8 201 1 County Central Air Conditioners Air Source Heat Pumps Geothermal Heat Pumps Tot als Alachua 140 126 2 268 Bay 3 11 14 Brevard 73 102 175 Broward 603 65 7 675 Charlotte 29 7 36 Citrus 64 6 70 Clay 2 17 19 Collier 43 10 1 54 Columbia 5 5 Duval 9 112 121 Escambia 11 14 2 27

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48 Flagler 6 47 53 Gilchrist 1 1 Hamilton 1 1 Hernando 2 14 1 17 Highlands 8 14 1 23 Hillsborough 30 94 124 Indian River 43 29 72 Jackson 7 7 Jefferson 2 2 Lake 18 33 1 52 Lee 108 15 2 125 Leon 5 16 2 23 Levy 3 3 Manatee 31 87 1 119 Marion 6 38 44 Martin 78 11 89 Miami Da de 179 26 1 206 Monroe 5 5 Nassau 2 17 19 Okaloosa 5 7 12 Okeechobee 23 1 24 Orange 35 143 1 179 Osceola 3 14 1 18 Palm Beach 666 88 754 Pasco 4 57 61 Pinellas 30 96 126 Polk 16 52 1 69 Putnam 1 2 3 Saint Johns 5 31 36 Saint Lucie 69 28 97 Santa Rosa 3 6 9 Sarasota 55 147 6 208 Seminole 21 96 117 Sumter 13 1 14 Suwannee 1 1 Union 1 1 2 Volusia 10 77 1 88 Walton 1 1 TOTAL 2461 1776 31 4,268

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49 APPENDIX B AIR DISTRIBUTION TES T PROCEDURE 1. The duct inspector will make a v isual inspection of the home and locate all supply and return vents. 2. The duct inspector will remove the air filter for the HVAC system. 3. The duct inspector will isolate the duct system by taping off all supply and return vents with duct mask tape. 4. The duc t inspector will set up a duct blaster in the main return duct, and depressurize the duct system to 2 5 Pascals and record the flow in cubic feet per minute at 25 Pascals (CFM25). 5. Pressure and Flow calculations are determined using a manometer that reads 2 channels of pressure, each measuring two different pressures. The first channel will measure the duct pressure with respect to the inside pressure allowing one to measure a difference in pressure (i.e. 25 Pascals). One pressure tube will be placed with in the duct system (inside a supply vent) and the second pressure tube will be exposed to the inside pressure of the home. The second channel will record pressure at two different locations on the duct fan (a calibrated fan). One pressure tube will take a pressure reading on the fan inlet and the other will take a pressure reading of the air entering the fan allowing one to record the pressure difference of the air moving through the fan. Because the fan is calibrated, the pressure at the fan inlet is const ant, and the pressure is determined by air pressure caused by the fan only. The pressure of the air entering the fan is not constant; it is being pulled through the duct system by the calibrated fan. If the air pressure entering the fan equals the air pres sure at the fan inlet, there is zero leakage; any difference in air pressure between the two points is leakage. This pressure is then turned to air flow by using a formula calculated by the manometer. 6. If the HVAC system has a dedicated return system (not a single return), the duct inspector will repeat the process with the pressure tube in a return duct and record the flow in CFM25. These two CFM25 numbers will then be averaged to get a total CFM25. 7. The duct inspector will divide the total CFM25 by the home square footage (SF) and get the Normalized air distribution system leakage area (Qn). 8. If Qn of .10 is not achieved, the duct inspector will install a blower door and blower door fan. A pressure tube will be placed outside the home in order to determine t he pressure difference from the outside of the home from the inside of the home 9. The duct inspector will depressurize the home to 25 Pascals. This will keep the home under a constant depressurization.

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50 10. Pressure and Flow calculations are determined using a manometer that reads 2 channels of pressure, each measuring two different pressures. The first channel will measure the outside pressure with respect to the inside pressure allowing one to measure a difference in pressure (i.e. 25 Pascals). One pressure t ube will be placed outside the home to take the pressure of outside the home. The second pressure tube will be placed inside the home to take the pressure inside the home. The second channel will record pressure of the blower door fan (a calibrated fan) wi th respect to the indoor pressure. One pressure tube will take a pressure reading on the fan inlet and the other will take a pressure reading of the air entering the fan, or inside the home, allowing one to record the pressure difference of the air moving through the fan. Because the fan is calibrated, the pressure at the fan inlet is constant, and the pressure is determined by air pressure caused by the fan only. The pressure of the air entering the fan is not constant; it is being pulled through the home by the calibrated fan. If the air pressure entering the fan equals the air pressure at the fan inlet, there is zero leakage; any difference in air pressure between the two points is leakage. This pressure is then turned to air flow by using a formula calcu lated by the manometer. 11. The duct inspector will then repeat steps 4 and 5, but instead of depressurizing the duct system to 25 Pascals, the duct inspector will balance the pressure between the duct system and home, reaching a pressure difference of 0 Pasc als. This allows the duct inspector to Qn .o ut, or leakage of the duct system outside of conditioned space. 12. The duct inspector will then divide the CFM25out by the homes SF and get the Qn.out 13. If Qn.out is above .10, the duct inspector will then calculate the leakage percentage of the total rated air flow of the HVAC system. This is done by dividing Qn.out by the total rated air flow of the HVAC system. The total rated air flow of an HVAC system is determined by multiplying the HVAC system tonnage by 400 CF M. 14. The duct inspector will the fill out the Air Distribution test report for the homeowner. (Moyer 2010)

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51 APPENDIX C RULE 16B I. Summary: The bill appropriates $31,369,867 to the Florida Energy and Climate Commission (FECC) and directs that the money be used to pay approved HVAC rebates and a portion of approved solar energy rebates. The bill makes two appropriations. The first appropriation, $2,467,244 in nonrecurring funds from the Grants and Donations Trust Fund, is to be used exclusively for HVAC reba tes. The second, $28,902,623 from the Grants and Donations Trust Fund, from Specific Appropriation 2561A, Chapter 2009 81, Laws of Florida, is to be used first to pay any remaining approved HVAC rebates, and second to pay a percentage of each unpaid and ap proved solar energy system rebate. The percentage is to be derived by dividing the remaining appropriation by the total dollar value of the backlog of final approved solar rebates. The bill makes it theft for anyone to obtain a rebate based on the submiss ion of information that the applicant knows to be false. The bill takes effect upon becoming a law. II. Present Situation: HVAC rebates The FECC approved the Florida ENERGY STAR Residential HVAC Rebate Program during a May 21, 2010 FECC meet ing. The program was to begin on August 30, 2010 and end on December 31, 2010 or when funds were depleted. The program was intended to provide $1,500 rebates for the purchase and installation of eligible HVAC systems. The Governor publicly announced the pr ogram on August 20, 2010. On August 31, 2010, the FECC submitted a budget amendment for the September 14, 2010, Legislative Budget Commission (LBC) meeting to transfer approximately $17.5 million in federal 2009 American Recovery and Reinvestment Act (ARRA ) funds ($15 million of which were from a Fixed Capital Outlay (FCO) appropriation) to a suitable operating category to fund the program. However, the LBC does not have authority to approve transfers from an FCO category. Section 216.292, F.S., provides th at an FCO appropriation may not be expended for another purpose. Accordingly, the amendments were not placed on the LBC agenda. Due to the lack of authorized funding, the FECC removed the application from their web page and announced on September 14, 2010, that all rebates filed under the program were pending legislative action, thus suspending the program.

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52 According to FECC support staff, approximately 2,700 applications have been submitted as of October 25, 2010. However, as processing of the application s was terminated when the program was suspended, it is unknown at this time how many of these applications are qualified for the rebate. Solar rebates Section 377.806, F.S., was enacted in 2006 to create the Solar Energy System Incentives Program (progra m). The program is administered by the FECC. The purpose of the program is to provide financial incentives (rebates on a portion of the purchase price) for the purchase and installation of solar energy systems that meet specified requirements. Rebates are available for both solar photovoltaic systems that produce electricity and solar thermal systems that produce heat. The amounts of the rebates are as follows: For a photovoltaic system, the rebate amount is $4 per watt based on the total wattage rating o f the system, with the maximum amount per system installation of: Twenty thousand dollars for a residence and One hundred thousand dollars for a place of business, a publicly owned or operated facility, or a facility owned or operated by a private, not f or profit organization, including condominiums or apartment buildings. For a solar thermal system: Five hundred dollars for a residence and Fifteen dollars per 1,000 Btu up to a maximum of $5,000 for a place of business, a publicly owned or operated fac ility, or a facility owned or operated by a private, not for profit organization, including condominiums or apartment buildings. For a solar thermal pool heater, $100 per installation. The rebate is available only for the purchase and installation, betwe en July 1, 2006, and June 30, 2010, inclusive, of a new solar energy system of 2 kilowatts or larger for a solar photovoltaic system, a solar energy system solar thermal system, or a solar thermal pool heater. Application for a rebate must be made within 120 days after the purchase of the solar energy equipment.

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53 The FECC is to determine and publish on a regular basis the amount of rebate funds remaining in each fiscal year. The t otal dollar amount of all rebates issued is subject to the total amount of appropriations in any fiscal year for this program. If funds are insufficient during the current fiscal year, any requests for rebates received during that fiscal year may be proces sed during the following fiscal year. Requests for rebates received in a fiscal year that are processed during the following fiscal year must be given priority over requests for rebates received during the following fiscal year. The Legislature provided a nnual funding for the program, as follows: FY 2006 07 $2.5 million in General Revenue FY 2007 08 $3.5 million in General Revenue FY 2008 09 $5.0 million in General Revenue FY 2009 10 $14.4 million in federal ARRA 2009 funds FY 2010 11 No funding was p rovided. The program proved much more popular than anticipated. Additionally, the FECC did not announce that funds for the program had been depleted until several months after the fact. These factors contributed to a backlog of over 13,000 applications an d over $52 million dollars being accumulated as of October 2010. The rebate applications date as far back as June 2009. III. Effect of Proposed Changes: The bill appropriates $31,369,867 and directs how this money is to be spent. Section 3 provides that for Fiscal Year 2010 11, and exclusively to implement the provisions of section 1 of the bill on HVAC rebates, $2,467,244 in nonrecurring funds is appropriated from the Grants and Donations Trust Fund to the FECC. In addition, $28,902,623 from the Grants and Donations Trust Fund, from Specific Appropriation 2561A, Chapter 2009 81, Laws of Florida, is immediately reverted and reappropriated to the FECC for Fiscal Year 2010 11. The money is to be used first to implement the provisions of section 1 on HVAC re bates, if actual rebates paid exceed $2,467,244; the remainder of the money is to be used to implement the provisions of section 2 of the bill on Solar Energy System Incentives Program rebates. Section 1 directs the FECC to pay rebates to eligible applica nts who submit an application pursuant to the Florida ENERGY STAR Residential HVAC Rebate Program. The FECC is directed to pay a $1,500 rebate to each

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54 consumer whose application is approved by the FECC. An applicant is eligible for a rebate unde r this section if: A complete application is submitted to the FECC on or before November 30, 2010. The HVAC/geothermal unit replacement for which the applicant is seeking a rebate was purchased or contracted for after August 29, 2010, but before Septembe r 15, 2010, by a contractor licensed in the State of Florida, and fully installed prior to submission of the application for a rebate. The FECC determines that the application complies with this section and any existing agreement with the U.S. Department of Energy governing the Florida ENERGY STAR Residential HVAC Rebate Program. On or before November 30, 2010, the applicant provides to the commission required information including: a copy of either the sales receipt or the purchase and instal lation contract that indicates compliance with the date of purchase requirements and contains the make and model number and the name and address of the HVAC/geothermal installer; a copy of the county/city mechanical building permit pulled by the HVAC/geot hermal installer for the residence; a copy of the Air Distribution System Leakage Test Report results from either a Class 1 Florida Energy Gauge Certified Energy Rater, a State of Florida Mechanical Contractor, or a recognized Test and Balance agent, whic h indicate the home has no more than 15 percent leakage to the outside as measured by 0.10 Qn. out or less; and A copy of the summary of the Manual J completed for the residence to indicate that the proper methodology for sizing the new HVAC/geothermal un it was completed. Section 2 directs the FECC to utilize up to $28,902,623, less any amount in excess of $2,467,244 used to pay HVAC rebates, to pay a percentage of each unpaid and approved rebate application pursuant to the Solar Energy System Incentives Program. The percentage of each approved rebate to be paid must be derived by dividing the remaining appropriation by the total dollar value of the backlog of final approved solar rebates. Section 4 makes obtaining a rebate pursuant to this act based on t he submission of information that the applicant knows to be false a theft, punishable as provided in s. 812.014, F.S. Under this section, the degree of the felony and the corresponding penalties depend on the amount stolen.

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55 Section 5 provides that the bil l takes effect upon becoming a law. IV. Constitutional Issues: A. Municipality/County Mandates Restrictions: None. B. Public Records/Open Meetings Issues: None. C. Trust Funds Restrictions: None. V. Fiscal Impact Statement: A. Tax/Fee Issues: Non e.

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56 APPENDIX D FEDERAL RECOVERY AND REINVESTMENT ACT TIT LE XVI, SECTION 1607 ADDITIONAL FUNDING DISTRIBUTION AND ASSURANCE OF APPROPRIATE USE OF FUNDS SEC. 1607. (a) CERTIFICATION BY GOVERNOR. Not later than 45 days after the date of enactment of this Ac t, for funds provided to any State or agency thereof, the Governor of the State shall certify that: (1) The State will request and use funds provided by this Act; and (2) The funds will be used to create jobs and promote economic growth. (b) ACCEPTANCE BY STATE LEGISLATURE. if funds provided to any State in any division of this Act are not accepted for use by the Governor, then acceptance by the State legislature, by means of the adoption of a concurrent resolution, shall be sufficient to prov ide funding to such State. (c) DISTRIBUTION. resolution, funding to the State will be for distribution to local governments, councils of government, public entities, and public private entities within the

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57 APPENDIX E FLORIDA STATE STATUT E CHAPTER 216.212 216.212 Budgets for federal funds; restrictions on expenditure of federal funds. (1) The Executive Office of the Governor and the office of the Ch ief Financial Officer shall develop and implement procedures for accelerating the drawdown of, and minimizing the payment of interest on, federal funds. The Executive Office of the Governor shall establish a clearinghouse for federal programs and activitie s. The clearinghouse shall develop the capacity to respond to federal grant opportunities and to coordinate the use of federal funds in the state. (a) Every state agency, when making a request or preparing a budget to be submitted to the Federal Government for funds, equipment, material, or services, shall submit such request or budget to the Executive Office of the Governor for review before submitting it to the proper federal authority. However, the Executive Office of the Governor may specifically author ize any agency to submit specific types of grant proposals directly to the Federal Government. (b) Every office or court of the judicial branch, when making a request or preparing a budget to be submitted to the Federal Government for funds, equipment, mat erial, or services, shall submit such request or budget to the Chief Justice of the Supreme Court for approval before submitting it to the proper federal authority. However, the Chief Justice may specifically authorize any court to submit specific types of grant proposals directly to the Federal Government. (2) When such federal authority has approved the request or budget, the state agency or the judicial branch shall submit to the Executive Office of the Governor such documentation showing approval as tha t office prescribes. The Executive Office of the Governor must acknowledge each approved request or budget by entering that approval into an Automated Grant Management System developed in consultation with the chairs of the House of Representatives and Sen ate appropriations committees.

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58 (3) Federal money appropriated by Congress or received from court settlements to be used for state purposes, whether by itself or in conjunction with moneys appropriated by the Legislature, may not be expended unless appropri ated by the Legislature. However, the Executive Office of the Governor or the Chief Justice of the Supreme Court may, after consultation with the legislative appropriations committees, approve the receipt and expenditure of funds from federal sources by st ate agencies or by the judicial branch. Any federal programs requiring state matching funds which funds were eliminated, or were requested and were not approved, by the Legislature may not be implemented during the interim. However, federal and other fund sources for the State University System which do not carry a continuing commitment on future appropriations are hereby appropriated for the purpose received.

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59 APPENDIX F TYPICAL FLORIDA HOME PLANS

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63 APPENDIX G BUILDING ENERGY MODE L 1

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68 APPEN DIX H BUILDING ENERGY MODE L 2

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73 APPENDIX I BUILDING ENERGY MODE L 3

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78 LIST OF REFERENCES C. R. Osterwald, A. Anderberg, S Rummel, and L. Ottoson. (2002). Degradation Analysis of Weathered Crystalline Silicon PV Modules. Nationa l Renewbale Energy Laboratory. Golden, CO. Energy Gauge. (2012). Retrieved from http://www.enegygauge.com/ ENERGY STAR Program (2012). Retrieved from http://www.energystar.org/ The Federal Recov ery and Reinvestment Act. (2012). Retrieved from http://www.recovery.org/ Florida ENERGY STAR Residential HVAC Rebate Program ( 2010 ) Retrieved from http://www.rebates.com/floridahvac/ (web site no longer available). Florida Legislature (2012). Retrieved from www.leg.state.fl.us/statutes/ Floirda Office of Energy. (2012). Retrieved from http://www.freshfromflorida.com/offices/energy/index.html/ Florida Solar Energy Center. (2012). Retrieved from http://www.fsec.ucf.edu/ National Association of Home Buiders. (2007). Study of Life Expectancy of Home Components. Retrieved from http://www.nahb.org/fileUpload_details.aspx?contentID=99359 Neil A. Moyer, James B. Cum mings, Charles R. Withers, and Philip W. Fairey William T. Guiney (1998). Class 1 Rating from Performance Test Data Version 1.3. Florida Department of Community Affairs. The Florida Solar Energy Center. Shimberg Center for Housing Studies. (2012). Retrieved From http://shimberg.ufl.edu/ T.J. McMahon, G. J. Jorgensen, and R. L. Hulstrom. (2000)., Module 30 Year Life: What do es it mean and is it predictable/achievable. National Renewable Energy Laboratory. Golden, CO. Retrieved from http://www.osti.gov/bridge/servlets/purl/755637 oDWE JR/webviewable/755637.pdf US Census Bureau. (2012). Retrieved from http://www.census.gov/ US Energy Administration. (2012). Retrieved from http://www.eia.gov/

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79 Windy Dankoff an d Joe Shwarts. (2007). PV Longevity and Degradation. Home Power Magazine. Retrieved from http://homepower.com/article/?file=HP118_pg12_AskTheExperts_1

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80 BIOGRAPHICAL SKETCH Kurt Strauss is a Master of Science in Building Construction student at the M.E. Rinker Sr. School of Building Construction at the University of Florida. Kurt received his Associate of Art (AA) in General Education and Associate of Applied Science (AAS) in Building Construction Technology from Santa Fe College. Kurt also received his Bachelor of Science (BS) from the M.E. Rinker Sr. School of Building Construction at the University o f Florida. Kurt Strauss is also a State of Florida Certified Building Contractor, State of Florida Certified Class 1 Energy Rater, National Certified RESNET Energy Rater, and State of Florida Certified Real Estate Sales Person.