District Energy Now
Volume 12 Number 7 February 1997
Welcome New Members!
We hope you will join us in welcoming the following new members of IDEA!Welcome New Members!We hope you will join us in welcoming the following new members of IDEA!
Jerry J. Sullivan
Manager
Cinergy Corporation
1000 E. Main Street
Plainfield, IN 46168
(317) 838-1505
(317) 838-1496 fax
E-mail: jsullivan@cinergy.com
William M. McMahon Jr., P.E.
Vice President/Treasurer
Entech Engineering Inc.
PO Box 32
Reading, PA 19603
(610) 373-6667
(610) 373-7537 fax
Dany Safi
General Manager
Gulf Energy Systems
PO Box 47832
Abu Dhabi, United Arab Emirates
(971) 2-26 27 27
(971) 2-26 17 70 fax
E-mail: ges@emirates.net.ae
J.M. Fuller
President
J.W. Fuller
Vice President
J.M. Fuller Limited
65 Enterprise Road
Rexdale, Ontario Canada M9W 1C4
(416) 248-5697
(416) 244-8143 fax
Ichiro Soma
Project Engineer
Kajima Corporation
1-2-7, Moto-akasaka, Minato-ku
Tokyo 107, Japan
81-3-3746-6927
81-3-3746-6928 fax
E-mail: soma@ed.kajima.co.jp
Henry Hutchens
Asst. Director Management Engineering & Energy
John Young
Facilities Mechanical Engineer
North Carolina State University - Physical Plant
Box 7219
Raleigh, NC 27695
(919) 515-2181
(919) 515-7408 fax
E-mail: john_young@ncsu.edureferred by Ray DuBose, University of North Carolina - Chapel Hill
Donald Conway
Director, Sales & Marketing
Pathway Bellows, Inc.
PO Box 3027
115 Franklin Road
Oak Ridge, TN 37831
(423) 483-7444
(423) 482-5600 fax
E-mail: sales@pathwayb.com
Richard Wood
Project Manager
Smith Seckman Red, Inc.
3319 West End Avenue
Suite 700
Nashville, TN 37220
(615) 383-1113
(615) 386-8469 fax
Brad M. Stevens
President
WCR Incorporated
221 Crane Street
Dayton, OH 45403
(937) 223-0703
(937) 223-2818 fax
Calendar of Events
10th Annual IDEA College/University Conference
February 19-21, 1997
Omni Hotel Charlottesville, Charlottesville, VA
Contact: IDEA, (202) 429-5111
IDEA Marketing Workshop
March 6-8, 1997
Wyndham Franklin Plaza Hotel, Philadelphia, PA
Contact: IDEA, (202) 429-5111
28th Biennial Congress and International District Heating Expo
June 9-11, 1997, Arnhem, The Netherlands
Contact: Euroheat & Power - unichal, phone 41 1 211 3635, fax 41 1 221 7063 or E-mail: euroheat@access.ch
88th Annual IDEA Conference & Trade Show
June 1417, 1997
Hotel Del Coronado, San Diego, CA
Contact: IDEA, (202) 4295111
12th Annual IDEA Cooling Conference
October 15-17, 1997
Wyndham Hotel, Cleveland, OH
Contact: IDEA, (202) 429-511189th Annual IDEA Conference & Trade Show
June 13-16, 1998
Hilton Palacio del Rio Hotel, San Antonio, TX
Contact: IDEA, (202) 4295111Don't Miss This Month's 10th Annual College/University Conference
It's not too late to register and attend IDEA's 10th Annual College/University Conference, February 19-21 in Charlottesville, Virginia.
If you need a copy of the preliminary program and registration brochure you can call IDEA's office at (202) 429-5111 or you can find the program on the World Wide Web at http://www.energy.rochester.edu/idea/cu/1997/.
Marketing Workshop
The plans for the Annual IDEA Marketing Workshop are well underway for next month. This year's workshop will be held March 6-8, 1997 at the Wyndham Franklin Plaza Hotel in Philadelphia, Penn.
The program offers a variety of presentations which will begin with presentations from nationally recognized Real Estate Owners who will provide an overview of their industry, where district energy is used by their organizations, and why they do and/or do not utilize district energy. Other presenters will discuss ways that you can communicate with your customers and determine what they think of your firm's service; why steam cooling is a very viable option for customers and their cooling needs; and thoughts on electric deregulation.
Dick Lancioni, Ph.D., Professor of Marketing in the Graduate School of Business, Temple University, will present a customized one-day seminar for IDEA Marketing Forum members on the topic of "How to Compete Against Price: Value-Added Strategies for the 1990's and Beyond." District energy companies don't always have the lowest price for their service(s). Even though this may not always be true, it may be the mind set of the potential customer. This seminar will help develop the framework for identifying and evaluating unique benefits and value-added services that your organization can offer existing customers and potential new customers to justify a premium price.
For a copy of the preliminary program and registration brochure, contact IDEA at (202) 429-5111.
U.S. Proposes Framework for Climate Change Agreement
During 1997 an international agreement will be negotiated on binding targets and timetables for reductions in emissions of carbon dioxide and other "greenhouse gases." On Jan. 17, the U.S. proposed a framework for the agreement for discussion at a negotiating session to take place in early March in Bonn, Germany. IDEA Legislative Director Mark Spurr attended the State Department briefing on the proposal.
The U.S. proposes that "emissions budgets" be set for at least two multiyear periods. For a given period, each developed country would be allocated an emissions budget. The current proposal does not specify either the size of the budgets, the duration of the periods or the start date for the first period. Countries would be allowed to:
- "bank" for future use emissions not used during a given period;
- "borrow" a limited amount of emissions (with a penalty) from a subsequent period; and
- trade emissions.
The proposal also includes provisions for emissions reductions in developing countries and allows developed countries to get emission reduction credit through "joint implementation" activities in developing countries.
Climate Change Related to Restructuring, Clean Air
As policymakers consider the climate change issue, there is increasing recognition that control of greenhouse gas emissions is strongly related to other major issues including power industry restructuring and implementation of stricter limits on emissions of particulates and nitrogen oxides. Legislative Director Mark Spurr has stressed the beneficial impact of district energy in these interrelated issues during recent meetings with White House and Environmental Protection Agency officials. In this context IDEA is advocating:
- Structuring emission trading systems for greenhouse gases and criteria pollutants to address communitywide emissions benefits of district energy systems.
- Requiring a portfolio standard for highefficiency cogeneration (see next article).
- Implementing an integrated campaign to catalyze development of district energy systems by providing:
- information to local and state governments on the benefits of district energy;
- technical assistance and costshared funding for community energy resource assessments;
- an information clearinghouse on district energy system implementation; and
- costshared funding for feasibility studies.
"Portfolio Standards" Concept Receives Increasing Attention
A variety of proposals have been made or are being developed for federal legislation on restructuring of the power industry. Considerable attention has been focused on how to encourage continued progress in deployment of renewable energy in a restructured industry, and to this end specific provisions have been proposed, including "Renewable Portfolio Standards" (RPS). RPS would establish a national renewable energy credit trading system. All generators of electricity selling power would be required to have renewable energy credits equal to a given percentage of their generation, which increases over time. The supplier could implement the renewable power systems themselves or buy credits from others.
IDEA has recommended a portfolio standard for cogeneration meeting a strict efficiency standard (at least 20% of the energy value of fuel consumed is recovered as heat which is used to meet heating and/or cooling energy requirements). Even if a district energy system is not currently cogenerating, the effect of such a standard would be to increase the economic value of the system's thermal load.
Executive Director John Fiegel notes that even though the likelihood of acceptance of a portfolio standard for stricter supply-side efficiency is very small, IDEA's advocacy of the concept has gone a long way to educate legislators, executive department officials and environmentalists on the benefits of district energy.
Trade Associations Favoring Choice for Consumers of Electricity
IDEA recently joined a growing list of over 500 consumers and suppliers favoring "Customer Choice in Electricity" being maintained by Congressman Dan Schaefer's office. Congressman Schaefer is chairman of the Energy and Power Subcommittee of the House Commerce Committee. BOMA International and many BOMA chapters are already on the list as well as several associations representing retail merchants.
If your company would like to be added to the list, contact Luke Rose in Congressman Schaefer's office at (202) 225-7882.
Lansing Board of Water and Light and General Motors Sign Agreement
The Lansing Board of Water and Light (BWL), a long-time IDEA member, and General Motors have finalized an agreement that will dramatically increase the BWL's annual steam sales by providing steam energy to three additional manufacturing facilities in the Lansing, Mich. area.
Under the terms of the agreement, the BWL will add GM's Lansing Car Assembly Body Plant, Fabrication Plant and Craft Center to its customer base, increasing the utility's annual sales by approximately 70 percent. The BWL currently supplies steam to one GM manufacturing plant and to approximately 320 downtown offices and homes.
"The new steam agreement with GM is good for the auto maker, the BWL and all current steam customers," said BWL Steam Utility Director Joette Woodard-Yauk. "Overall, GM will pay less for our steam than it would for other competitive energy sources such as natural gas, and the BWL gains a major new revenue stream which will help us keep rates stable for all our customers."
IEA Publication Available
The International Energy Agency (IEA) has released a new publication on district heating and cooling. The title of the publication is "Temperature Variations in Preinsulated DH Pipes Low Cycle Fatigue."
This project was part of IEA's Annex IV and 10 countries participated: Canada, Denmark, Finland, Germany, Korea, The Netherlands, Norway, Sweden, United Kingdom and the U.S.
The IEA was established in 1974. A basic aim of the IEA is to foster cooperation among the 21 participating countries to increase energy security through energy conservation, development of alternative energy sources and energy research, development and demonstration. The IEA sees district heating and cooling as a means by which countries may increase their energy efficiency.
Contact IDEA for a copy of the report "Temperature Variations in Preinsulated DH Pipes Low Cycle Fatigue."
For general information on the IEA District Heating Project contact:
IEA Secretariat
Mrs. Gudrun Maass
2 Rue Andri-Pascal
F-75775 Paris Cedex 16
France
Fax: 33-1-45249988
or Novem, Netherlands Agency for Energy and the Environment
Mr. Frank van Bussel
PO Box 17
NL-6130 AA Sittard
The NetherlandsFax: 31-46-4528260
Questions and Answers on Refrigerant Taxes
Many of our members involved with district cooling need to be aware of the tax liabilities related to owning and selling CFC refrigerants. Following are some questions and answers provided by the IRS about some scenarios that companies could face when dealing with refrigerants, solvents and other ozone depleting chemicals (ODCs).
Q: What are floor stocks (FST)?If you would like to receive the IRS forms and publications (510: Excise Taxes and 509: Tax Calendar) about the CFC tax, call (800) TAX-FORM.A: Unsold and unused stock on the floor, inventory on hand.
Q: What is a taxable ODC?
A: Chlorofluorocarbon (CFC) refrigerants, such as R-11 or R-12 products like Freon, along with other ODCs defined by the law.
Q: Who is liable for the ODC floor stocks tax?
A: The person liable for the floor stocks tax on an ODC is any person who holds the ODC for sale or for use in further manufacture on a date on which the tax is imposed. The tax on CFC refrigerants was first imposed on Jan 1, 1990 and has increased each year, except for 1991, and will continue to increase each year thereafter. Holding a taxable ODC for use in your own enclosed system does not make one liable for the FST.
Q: Y, a grocery store chain, holds an ODC for use in its refrigeration units. Is Y liable for ODC floor stocks tax?
A: No, Y is not liable for ODC floor stocks tax since Y does not hold the ODC for sale or for use in further manufacture.
Q: In 1994, I stockpiled 1,000 lbs. of refrigerant R-12 for use in maintaining my own chiller. I used none of the R-12 inventory in 1994, 100 lbs. in 1995, and 75 lbs. in 1996 before I converted and retrofitted the chiller to use a refrigerant other than taxable ODCs. On Feb. 15, 1997, I sold the remaining R-12 (500 lbs. from the chiller and 825 lbs.) to a local refrigeration service shop. Do I owe floor stocks tax?
A: Yes, you should file and pay $1,567.50 ($1.90x825) floor stocks tax for 1997. On Jan. 1, 1997, you held 1,325 lbs. (500 lbs. previously used in your own equipment and 825 lbs. unused inventory) that was originally acquired in 1994 when the tax rate was $4.35 per lb. The 1997 tax rate is $6.25 per lb. ($4.35+$1.00 on 1/1/95 + $.45 on 1/1/96 and 97) less the cost rate $4.35 equals the tax due ($1.90) on the 825 lbs. If the R-12 were sold in 1996, tax would also be due but a rate of $.45 less than the $1.90 in 1997.
Get Globally Connected¼
International District Energy Association's
88th Annual Conference and Trade Show
Global District Energy: Investing in Energy Infrastructure
Hotel Del Coronado, San Diego, California
June 14-17, 1997
Following is a list of exhibitors to date for the conference:
Adams Valves, Inc.
Advanced Thermal Systems, Inc.
American Thermal Products, Inc.
Ashland Chemical Co./Drew Industrial Division
Armstrong International, Inc.
Baltimore Aircoil Company
Black & Veatch Special Projects Corporation
Carrier Corporation
CBI Walker, Inc.
Claussen Engineering, Inc.
Controlotron
Diversey Water Technologies, Inc.
DriTherm, Inc.
FibreLite Composite Manholes
Flow Control Industries, Inc.
Fuji Electric Corporation of America
Honeywell, Inc.
Johnson Yokogawa Corporation
Jordan Valve, Div. of Richards Industries
Kattner/FVB District Energy, Inc.
Kerotest Manufacturing Corporation
Marley Cooling Tower Company
Michael Hesky GmbH
Mycom America Corporation
Nalco Chemical Company
Nationwide Boiler, Inc.
Newmans, Inc./Newco Valves
Nova Group, Inc.
Perma-Pipe, Inc.
Pitt-Des Moines, Inc.
Pittsburgh Corning Corporation
RMF Engineering, Inc.
Spence Engineering Company
Thermal Pipe Systems, Inc.
Tuthill Corp./Murray Turbomachinery Division
Urecon, Ltd.
Vanessa Valve Company
Washington State University
WSA Engineered Systems
York International Corporation
There are still exhibit and sponsorship opportunities available for this conference. To secure a sponsorship, please contact Tanya Kozel at (202) 429-5111. For information on exhibiting at IDEA's conference, contact Tammie Jackson at (301) 464-0059.
Watch your mail for the preliminary program and registration brochure!!!
IDEA FORUM CHAIRMEN, 1997-1999
Following is the list of newly appointed IDEA Forum Chairmen. All IDEA members are invited and encouraged to attend forum meetings. Each forum holds a meeting during the Annual Conference and Trade Show in June and some conduct workshops and conferences throughout the year.
College/University
Chair: Tom Nyquist, Princeton University, 609-258-5472, 609-258-1508 fax, e-mail: tnyquist@princeton.edu
Vice Chair: Cheryl Gomez, University of Virginia, 804-982-5414, 804-982-5894 fax, e-mail: CLG9Y@virginia.edu
Board Liaisons: Roger Moore, MIT, Clark Thompson, Iowa State University and Steve Mischissin, Stanford University
Conf. Chair: Cheryl Gomez, University of Virginia, 804-982-5414, 804-982-5894 fax, e-mail: CLG9Y@virginia.edu
Tech. Chair: Steve Mischissin, Stanford University, 415-723-3351, 415-723-3191 fax
Cooling
Chair: Wayne Robertson, Heery International, 404-881-9880, 404-872-3098 fax, wroberts@heery.us.com
Vice Chair: Tony Trocchia, Columbia University, 212-854-6919, 212-866-9664 fax
Board Liaison: John Andrepont, Trigen Energy Corporation, 312-444-9023, 312-444-9046 fax
Tech. Chair: Lanny Joyce, Cornell University, 607-255-6631, 607-255-5377 fax
Distribution
Chair: Dave Urke, District Energy St. Paul, 612-297-8955, 612-221-0353 fax, e-mail: desp@skypoint.com
Vice Chair: Carlos Torres, Consolidated Edison, 212-338-4176, 212-689-5256 fax
Board Liaison: Jan Wagner, Public Service Company of Colorado, 303-573-4397, 303-573-4338 fax
Tech. Chair: Matt Fallon, Trigen-Boston Energy Corporation, 617-482-8232, 617-269-1125 fax
Fuel & Power Management
Chair: Joel Greene, Ball, Janik, 202-638-3307, 202-783-6947 fax, e-mail: jgreene@bjllp.com
Vice Chair: Charles Fishman, Trigen-St. Louis Energy Corporation, 314-621-3550, 314-621-8516 fax
Board Liaison: David Wade, RDA Engineering, 770-421-0870, 770-421-0885 fax
Government Relations Committee
Chair: Gordon Bloomquist, Washington State University Energy Program, 360-956-2016, 360-956-2030 fax
Vice Chair: Norm Miller, ZBA, 513-421-3363, 513-421-3363 fax
Board Liaison: Gordon Bloomquist, Washington State University Energy Program, 360-956-2016, 360-956-2030 fax
International
Chair: Bengt Söderström, Goteborg Energi AB, 46-31-626000, 46-31-152501 fax
Vice Chair: Yves Blanc, Corporation Chauffage Urbain de Montreal, 514-875-4276, 514-864-0117 fax
Board Liaison: Bengt Söderström, Göteborg Energi AB, 46-31-626000, 46-31-626004 fax
Marketing
Chair: Jon Wohl, Trigen-Philadelphia Energy Corporation, 215-875-6900 ext. 169, 215-875-6910 fax
Vice Chair: Matt Schuerger, District Energy St. Paul, 612-297-8955, 612-221-0353 fax
Board Liaison: Kevin Brown, Trigen-Philadelphia Energy Corporation, 215-875-6900 ext. 128, 215-875-6910 fax
Measurements and Controls
Chair: Brian Southern, Johnson Yokogawa Corp., 513-860-5695, 513-860-5698 fax
Vice Chair: Dennis Elliott, Trigen - Tulsa Energy Corporation, 918-582-2212 ext. 11, 918-582-2214 fax
Board Liaison: Ken Lawrence, Honeywell, Inc., 215-641-3070, 215-641-3733 fax
Principal Managers Forum
Co-Chair: Anders Rydaker, District Energy St. Paul, 612-297-8955, 612-221-0353 fax, e-mail: desp@skypoint.com
Co-Chair: Rich Mayer, San Francisco Thermal Energy, 415-777-3415, 415-777-3787 fax
Board Liaison: Anders Rydaker, District Energy St. Paul, 612-297-8955, 612-221-0353 fax
Research & Development
Chair: Tim Tierney, Trigen - St. Louis Energy Corporation, 314-621-3550, 314-621-8516 fax
Board Liaison: Carl Avers, Thermal Ventures, 330-747-4604, 330-747-5626 fax
Safety, Environment and Operations
Chair: Jan Sockel, Harrisburg Steam Works, 717-234-4600, 717-234-1375 fax
Vice Chair: Gordon Judd, San Francisco Thermal, 415-777-3415, 415-777-3787 fax
Board Liaison: Bill Goodwin, Harrisburg Steam Works, 717-234-4600, 717-234-1375 fax
Statistics
Chair: Keith Li, Harrisburg Steam Works, 717-234-4600, 717-234-1375 fax
Vice Chair: Morris Pierce, University of Rochester, 716-275-4331, 716-442-2749 fax, e-mail: mapi@dbv.cc.rochester.edu
Board Liaison: Alex Bystrin, Toronto District Heating Corporation, 416-392-6838, 416-363-6052 fax
Annual Conference
General Steve Mueller, San Diego Power & Cooling, 619-231-0157, 619-231-0170 fax
Technical Jerry Pittman, Kattner/FVB District Energy, Inc., 612-338-6381, 612-338-3427 fax, e-mail: JPittman@kattnerfvb.com
Liaison to Euroheat & Power - unichal
Chair: Rob Thornton, Northwind Boston, 617-369-7414, 617-369-7401 fax
Forums: Cooling - Wayne Robertson, Heery International
Distribution - Dave Urke, District Energy St. Paul
Marketing - Jon Wohl, Trigen-Philadelphia Energy Corporation
Measurements & Controls - Brian Southern, Johnson Yokogawa