ADJUST FUTURE PRINCIPAL AND INTEREST
PAYMENTS TO BASE YEAR EQUIVALENT
VALUES

AUTHORITY: Part C of Title III, Energy Policy and Conservation Act, (42 U.S.C. 6321 et seq.), as amended by Part B of Title IV, Energy Conservation and Production Act, and Parts G and H of Title III, Energy Policy and Conservation Act, as added by Title III of the National Energy Conservation Policy Act, 92 Stat. 3206 et seq.; Department of Energy Organization Act, (42 U.S.C. 7101 et seq.)

SOURCE: 42 FR 33162, June 29, 1977, unless otherwise noted.

EDITORIAL NOTE: Regulations in this part are affected by a document published at 44 FR 37938, June 29, 1979. See the redesignation table appearing in the Finding Aids section of this volume.

Subpart A-General Provisions

§ 450.1 Purpose and scope.

(a) This part designates energy measures and the types of, and requirements for, energy audits as required by the Department of Energy, pursuant to Section 432(d) of the Energy Conservation and Production Act, Pub. L. 94-385, 90 Stat. 1125 et seq., which adds Section 365(e) (1) and (2), 42 U.S.C. 6325(e) (1) and (2), to the Energy Policy and Conservation Act, 42 U.S.C. 6201 et seq.

(b) This part also contains the projections of future energy prices which shall be used in calculating the changes in energy costs which will result from installation of a particular modification in a building or industrial plant, and includes the criteria for determining whether the installation of a particular modication meets certain requirements of the Act for designation as an energy measure.

(c) This part also provides the requirements for the conduct of preliminary energy audits and energy audits

in accordance with Section 393 and Section 400 C of the Energy Policy and Conservation Act, Pub. L. 94-163, 42 U.S.C. 6321, as amended by Title III of the National Energy Conservation Policy Act, Pub. L. 95-619, 92 Stat. 3206 et seq.

[42 FR 37800, July 25, 1977, as amended at 44 FR 19350, Apr. 2, 1979]

§ 450.2 Uses of energy audit procedures.

The requirements of this part shall be used

(a) To establish minimum requirements for the type of energy audit to be carried out under a supplemental plan;

(b) To provide a process to measure the energy and cost savings to be derived from the installation or implementation of an energy measure; and

(c) To provide a process to identify a modification as an energy measure for purposes of the Act.

(d) To establish minimum requirements for the preliminary energy audits and energy audits to be carried out under the program of financial assistance for schools and hospitals and the program of financial assistance for units of local government and public care institutions.

[42 FR 33162, June 29, 1977, as amended at 44 FR 19350, Apr. 2, 1979]

As used in this part

"Act" means the Energy Conservation and Production Act, Pub. L. 94385, 42 U.S.C. 6325.

"ANSI Standard" means a standard prescribed by the American National Standards Institute.

"Appliance" means an energy consuming article or device designed for household use, the primary purpose of which is labor saving or personal convenience and which, although connected to public utilities servicing a building, is not attached to the building in such a way that it would be considered part of the building or building system; for example, room air-conditioners, room heat pumps, room heaters, refrigerators, refrigerator-freezers, clothes washers and dryers, dishwashers, kitchen ranges and ovens, and television sets. Energy consuming articles

or devices not classified as an appliance and considered part of a building or building system include, but are not limited to, water heaters, central heat pumps, central air-conditioners, and central heating units.

"Approved" means, with respect to an energy measure, any modification which is included on the list of energy measures published by DOE pursuant

to section 365(e)(1), 42 U.S.C.

6325(e)(1), of the Energy Policy and Conservation Act.

"ASTM Standard" means a standard prescribed by the American Society for Testing and Materials.

"Attributed Life" means, with respect to an energy conservation measure, the time period which is equal to either the useful life or 15 years, whichever is less or, with respect to a renewable-resource energy measure, the time period which is equal to either the useful life or 25 years, whichever is less.

"Auditor" means any person who conducts an energy audit and certifies it to be in conformance with this regulation.

"British Thermal Unit" means the amount of heat required to raise the temperature of one pound of water from 59.5 to 60.5 degrees Fahrenheit at one atmosphere of pressure.

"Btu" means British thermal unit or units.

"Building Envelope" means all external building surfaces, such as walls, doors, windows, roof, and floors in contact with the ground, which are affected by weather.

"Climatic Zone" means a geographical area of the United States designated by DOE.

"Compressor Hours" means the average number of hours which an air conditioning compressor must operate to provide the cooling needed for space conditioning for a cooling zone.

"Cooling degree days" means the annual sum of the number of Fahrenheit degrees of each day's mean temperature above 65° for a given locality.

"Cooling Zone" means a climatic zone based on cooling degree days or compressor hours.

"Depletable

Energy Resource" means a fossil fuel or nuclear fission fuel.

"Distillate Fuel" means those light and middle fuel oil derivatives from petroleum, such as kerosene, home heating oil, range oil, stove oil, diesel fuel, kerosene-type jet fuel, including Numbers 1, 2, 3, and 4 fuel oils.

"DOE" means the Department of Energy.

"Dual-Purpose Power Plant" means an equipment configuration which produces both electricity and useful thermal energy and which consumes, exclusive of the fuel required to produce the useful thermal energy, less than 7,500 Btu of fuel per kilowatt-hour of electricity produced.

"Dwelling Unit" means a house, including a stationary mobile home, an apartment, a group of rooms, or a single room occupied as separate living quarters.

"Energy Audit" means a process, carried out in accordance with this part, which identifies and specifies the energy and cost savings which are likely to be realized through the purchase and installation of an energy measure. "Energy Conservation Measure" means a modification which has been determined by means of an energy audit or by DOE, by rule, to be likely to improve the efficiency of energy use and to reduce energy costs in an amount sufficient to enable a person to recover the total cost of purchasing and installing such measure, without regard to any tax benefit or Federal financial assistance applicable thereto, within the period of

(1) The useful life of the modification involved; or

(2) Fifteen years after the purchase and installation of the modification, whichever is less.

The term does not include the purchase or installation of any appliance, any conversion from one fuel or source of energy to another which DOE, by rule, determines is ineligible on the basis that such type of conversion is inconsistent with national policy with respect to energy conservation or re

duction of imports of fuels, or any measure or type of measure which does not have as its primary purpose an improvement in efficiency of

energy use.

"Energy Measure" means an energy conservation measure or a renewableresource energy measure.

"Federal Region" means one of the 10 standard regions as described in OMB Circular A-105, Standard Federal Regions.

"Heating degree days" means the annual sum of the number of Fahrenheit degrees of each day's mean temperature below 65° for a given locality.

"Heating Zone" means a climatic zone based on heating degree days. "HVAC" means heating, ventilating and air conditioning.

"IEEE Standard" means a standard prescribed by the Institute of Electrical and Electronic Engineers.

"Industrial Plant" means any fixed equipment or facility which is used in connection with, or as part of, any process or system for industrial production or output and which was constructed prior to August 14, 1976.

"Industrial Process" means an action or series of actions in connection with, or part of, a process or system contributing to the production or output of an industrial plant.

"Liquefied Petroleum Gas" means propane, butane, propane/butane mixes, ethylene and ethane.

"LPG" means liquefied petroleum gas.

"Modification" means a change which can be purchased and installed in a building or industrial plant, and which can result in energy and cost savings.

"Nondepletable Energy Resource" means a type of energy resource other than a depletable energy resource.

"Regional Representative" means a Regional Representative of the Department of Energy.

"Renewable-Resource Energy Measure" means a modification which has been determined by means of an energy audit or by DOE, by rule, to(1) Involve changing, in whole or in part, the fuel or source of energy used to meet the requirements of such building or plant from a depletable

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source of energy to a nondepletable source of energy; and

(2) Be likely to reduce energy costs in an amount not less than the total cost of purchasing and installing such measure, without regard to any tax benefit or Federal financial assistance applicable thereto, within the period of

(i) The useful life of the modification involved, or

(ii) Twenty-five years after purchase and installation of the modification, whichever is less. The term does not include the purchase or installation of any appliance.

"Residual Fuel" means Numbers 5 and 6 fuel oils, heavy diesel, Navy diesel, Bunker C and all other fuel oils which have a fifty percent boiling point over 700° F in the American Society for Testing Materials D-86 standard distillation test, as reapproved in 1972.

"R-Value" means a measurement of the ability of insulation to resist the flow of heat, expressed in English units at the mean temperature of the insulation under design conditions. "Secretary" means the Secretary of the Department of Energy.

"Supplemental Plan" means a supplemental State energy conservation plan which is eligible for financial assistance under Part 420, Subchapter E, Chapter II of Title 10, Code of Federal Regulations.

"Useful Life" means that period of time for which a modification used under specified conditions is able to fulfill its intended function, and which does not exceed the period of remaining use of the building or that element of the industrial plant which is being modified.

[42 FR 33162, June 29, 1977, as amended at 42 FR 37800, July 25, 1977; 44 FR 19350, Apr. 2, 1979]

§ 450.4 Qualifying conditions.

(a) The primary purpose of a modification shall be an improvement in energy use efficiency only if the cost of the purchase and installation of the modification will be recovered, during its attributed life, by its projected energy cost savings, and results in an increase, with the use of the modification, in the energy efficiency index

(b) A modification shall result in an ineligible conversion if its implementation would result in an increase, expressed in Btu, at the building or industrial plant, in the consumption of petroleum products, natural gas, or a combination of the two.

(c) An increase in the consumption of petroleum products at a building or industrial plant shall not be an ineligible conversion, as provided by paragraph (b) of this section, if the increase will result from the installation of dual-purpose power plant equipment and DOE determines the modification would produce an off-setting reduction elsewhere in the consumption of petroleum products, natural gas, or a combination of the two.

(d) Projected prices for electricty, natural gas, distillate, residual fuel, LPG, and coal shall be derived from either

(1) The projected energy prices set forth in Appendix A, Tables 1-20; or (2) The following adjustment formulas

(i) For petroleum products, coal, and natural gas

PA=PR-((1985-t).(PRь - PAь)/(1985—b)), for t>1985

PA PR, for t>1985; and

(ii) for electricity:

PA=PR .PA/PRь, for all years; (iii) where:

PA, projected fuel price for future year t; PA fuel price actually paid in base year b; PR=regional fuel price for base year as set forth in Appendix A.

PR=projected regional fuel for future year t as set forth in Appendix A; t=future year for which fuel price is being projected;

b=base year used in current DOE projec tion of fuel price, as shown in Appendix A.

Subpart B-Information Audits

§ 450.10 Purpose and scope.

This subpart establishes the classes of, and requirements for, the conduct of information audits, the qualifications of persons conducting Class A in

formation audits and the allowable cost of information audits. Provisions for encouraging and carrying out information audits are required in a supplemental State energy conservation plan for which financial assistance is provided under Part 420, Subpart E, Chapter II of Title 10, Code of Federal Regulations.

§ 450.11

Classes of, and requirements for, information audits.

(a) A Class A information audit shall consist of

(1) An on-site visit at the building or industrial plant by an auditor who has qualifications considered appropriate by a State; and

(2) An evaluation by an auditor of the building or industrial plant's energy comsumption and energy systems, consisting of—

(i) An analysis of the energy and cost savings likely to result from the purchase and installation of one or more modifications selected by a State, or

(ii) General recommendations and a workbook, manual, or other instructional material enabling an owner, operator, or occupant of a building or industrial plant to calculate the energy and cost savings resulting from the purchase and installation of one or more modifications selected by a State.

(b) A Class B information audit shall consist of

(1) A completed questionnaire, containing information provided by an owner, operator, or occupant of a building or industrial plant, which has been developed and distributed by a State; and

(2) An evaluation which analyzes the information obtained pursuant to paragraph (b)(1) of this section to identify the energy and cost savings likely to result from not less than two modifications selected by a State, taking into account such factors as heating and cooling degree days, fuel cost, and other data considered appropriate by a State, which evaluation shall be sent to the person who provided the information.

(c) A Class C information audit shall consist of

(1) A workbook provided by a State, which will enable the owner, operator, or occupant of the building or industrial plant to identify the energy and cost savings for each of not less than four modifications selected by a State, which calculation shall take into account factors such as heating and cooling degree days, fuel prices, and other data considered appropriate by a State; and

(2) Pamphlets, books, brochures, or similar data, provided by a State, to be used in conjunction with the workbook referred to in paragraph (c)(1) of this section, regarding the purchase and installation of the modifications in the type of building or industrial plant for which the workbook is to be used.

§ 450.12 Contents of information audits.

(a) All three classes of information audits shall include an energy consumption description containing the following

(1) For a building—

(i) Actual energy consumption by type of fuel by month for the preceding 12 months, except that where actual energy consumption data are not available, estimates of actual energy consumption and an explanation of the derivation of the estimates; (ii) Cost of energy by type of fuel for the preceding 12 months;

(iii) Building profile, including description of

(A) Location, climatic context, and immediate site conditions;

(B) Configuration, envelope, construction, and condition; and

(C) Heating, ventilating air conditioning, hot water and lighting systems;

(2) For an industrial plant

(i) Actual energy consumption for both the industrial plant's building operations and its industrial processes, by type of fuel by month for the preceding 12 months, except that where actual energy consumption data are not available, estimates of actual energy consumption and an explanation of the derivation of the estimates;

(ii) Cost of energy by type of fuel for the preceding 12 months;