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17.

Was the apartment development referred to in the last paragraph on
page 1 of your prepared statement -- the high rise senior citizen's
project where the bills for space heating, water heating and cooking
gas for a restaurant are $2.28 per month per unit -- the Liberty Towers
development mentioned in your letter to our staff?

Since that is a 100 unit project, the average monthly bills for the
whole building must have been $228.

Does that include air conditioning?

Does this development have any solar heat input, or is it all gas?

Yes, that is Liberty Towers. Yes, the monthly bills are attached hereto.
It is air conditioned on the first floor only. No, there is no solar input.
It is all gas (except the cooling which is electric) but it could be easily retro-
fitted with solar.

18.

Are there any Piper Hydro systems on which solar collectors have been retrofitted? If so, what was the result in fuel savings?

Yes. The wing commander's house at Fairchild AFB in Spokane. The current savings are approximately 30%. Readings attached hereto.

You will note Piper Hydro, after installing, paying for, and proving this installation was not even included in the bidding on the 10 military bases which have now been picked to demonstrate solar systems.

Further information will follow.

19.

Would you be willing to supply for the record of the hearing - with the permission of the owners involved -- a list of the names, addresses, and telephone numbers of the 20 dwelling units that have solar assisted Piper Hydro systems installed?

-

We will supply some of them. See attached list.

PIPER HYDRO

INCORPORATED

2895 EAST LA PALMA ANAHEIM, CALIFORNIA 92806

(714) 630-4040

The Honorable Thomas McIntyre

Page 8

20.

In particular, by way of comment, would you have any general
suggestions for the improvement by HUD of its methods and practices
for dealing with new heating or cooling systems, especially those
offered in the market by small business firms?

HUD has several existing conditions that we believe need to be changed.
Apparently this would require an administrative order or new legislation.
These conditions are:

A.

B.

C.

D.

The field offices don't follow the advice or recommendation of the
central office in Washington.

What good does it do for Jim McCullough's A&E Division to examine
and approve a system if the field office can reject this approval on
a rumor or a whim?

HUD has no directive to conserve energy. Granted they have directives
to use insulation, etc. But that is not the same thing. They need
such a directive and the backup information to implement it.

HUD needs a system revision where information feedback from field
experience is evaluated and categorized for use in new and updated
minimum property standards.

Currently, for example, HUD is using the National Bureau of Standards Interim Solar Standards apparently as their only basis for solar technology.

NBS may be a good starting point, but there is FAR more information
in the field than NBS can supply. NBS is still sorting out information
in areas in which Piper Hydro has good operating data. No one from
HUD or NBS has asked US for any of that data. Why NOT?

HUD has an unwritten rule that penalizes an employee for trying something
new that doesn't work perfectly, and fails to reward an employee for
trying something new that works well.

This needs to be changed, or no one in HUD is going to try something

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21.

In your first letter to this committee, which led to the exchanges
that resulted in your appearance at this hearing, you said that the
National Science Foundation had given the Southern California
Gas Company a contract to answer, for $391,000, a question that
you would have answered for nothing.

You have now had some further consultations on this subject with
both officials of the government and of the Gas Company. Would
you care to amend in any way your evaluation of the contract
involved? It is the same contract mentioned on page 4 of your
prepared statement.

No, I wouldn't. Yes, it is the same contract.

22.

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As we understand it, the purpose of the contract in which the Gas
Company says it is investing funds equal to the $391, 000 federal grant
is to test the feasibility of having the Gas Company, a public utility,
install at its own expense and retain as its own property solar collectors
on apartment buildings - one new, one a retrofit installation and sell
the solar heat from those collectors in the same way that it sells gas.

Since one obstacle to wider use of solar energy is the capital cost
involved at the time of installation of the collectors and the system,
is not this idea NSF is testing with Southern Califom ia one way not
the only way
in which that problem could be dealt with?

If you wish to put all

in which to proceed.

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solar systems in the hands of a utility, this is the manner We, as a small business, cannot compete with them. They can go to our customers and have a profound effect upon them without their being in the solar business.

If you wish to put this in perspective, they claim to have invested quite a good amount of money in solar research. What positive results have they had from that research?

How many living units have they been instrumental in using solar in?

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It appears to us that now that energy conservation is "in vogue", this gas company, who have opposed us and solar since 1971, have taken money out of the rate base (allowed by the P.U.C.) matched that with tax dollars from the federal government and then proceeded to spend that public money in a lavish manner by construction standards.

They are proceeding to spend nearly $800, 000 to equip less than 100 dwelling units with solar water heating only. The tenants will not even own the water heaters, the gas company will. They will now own the rights to the sun. In contrast, we just contracted to supply solar water heating, space heating, and electric cooling for an installed price of $170,000. for 114 units.

Compare those two prices, and what's being done for them.

In spite of this differential, I wish to emphatically repeat, we cannot compete with them. If you wish to eliminate small business from this field, grants like this one will do it.

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17. ARTICLE BY KENT SWIGARD, "SOLAR ENERGY'S ON THE JOB," SPOKESMANREVIEW, MARCH 16, 1975

SPOKESMAN-REVIEW

Solar energy's on the job

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Final adjustments were made on the Fairchild retrofit home early last week. From there, the sun and the system took over.

Solar radiation soaked into rooftop collectors, water circulated through the collector plates and Bingo - water, more than 100 degrees in temperature, began adding free, supplemental energy to the home's modified hot water and gas-forced air space heating systems.

George Alexieve, president of the Solar Hydronics Co. in Spokane which has developed all three of the city's solar housing projects, was im. pressed with the new project. It was constructed as test project in the base wing commander's home to test the efficiency of the system in an already constructed home.

Gazing at the home's funetioning collector system, he rubbed his hands together, laughed and said, "Now all we have to do is sit back and watch the heat and hot water bills come down."

Alexieve said he expects the system, designed by the Piper Hydro Co. of Anaheim, Calif., to reduce the home's natural gas bills for heating and hot water by 30 to 50 per cent.

He said the same basic system was built into his two other solar home projects. achieving a fuel savings of nearly 50 per cent.

He has hopes that if the project is successful, the base will contract with him to install the system in other base houses and dormitories.

MARCH 16, 1975.

Col. James F. Marr, base engineer, is interested.

Pointing to a fuel supply chart, Col. Marr said fuel costs have soared so much that Fairchild is spending about $1.6 million per year on heating and hot water.

"If we can utilize a system which saves even 25 per cent on fuel costs we're interested," he said. "Twenty-five per cent of $1.6 million comes out to be a lot of money."

Col. Marr said Alexieve's solar system will be mon tored throughout the year and compared in fuel costs to four similar conventional homes in the same block.

Alexieve emphasized the solar retrofit system is a supple mentary system for forced air heating and hot water and is not intended to replace these systems.

"We've found that in order to replace a conventional system or even to produce a reduction in single family dwelling fuel costs of 75 per cent you're looking at costs which soar right out of sight," Alexieve said.

"But with this much more simple solar system you can realize a 30 to 50 per cent fuel reduction with a cost of only

about $2,800 to $3,000," he
said. "The system will pay for
itself in fuel savings well with-
in 10 years at current energy
prices."

Alexieve expressed doubis
energy prices will remain con
stant. Instead, he predicted in-
creasingly higher fuel costs in
future years

The Fairchild system begins with three two-by-eight foot solar collectors, covered with plastic and painted black to absorb the sun's radiation. Solar heat is transferred from the collector plates to a circulating loop of water.

The water, which is heated to about 140 degrees on a sunny day and as high as 85 degrees on an overcast day, then is circulated into a collecting tank and fed into the home's hot water and gas-fed forced air heating systems.

Natural gas, normally need.. ed to heat water from an average of 43 degrees to 140 to 180 degrees, with solar help has only to heat the water to these levels from the level already produced with solar ra diation.

"Outside temperatures have

General News

nothing to do with solar radiation," Alexieve said. "The system is capable of heating water as well on a 14 degree day as it is on a 95 degree day.

"And the system is able to produce heat even when clouds blot out most of the sun's rays," he said. "There are only about 30 days per year when no solar radiatu is available at all in the Sp kane area."

Alexieve said the arca east of the Cascade Mountains into Montana is rated by solar energy experts as the nation's third best area for utilization of solar energy, topped only by the Southeast and the Southwest.

"Even snow doesn't slow down the system." Alexieve said. "When it snowed 10 inches last winter, I couldn't wait to get out to see how my previously built solar homes were doing.

"The snow was covering the solar collectors in the merit ing." he said. "But by 2 pm. it was completely melted and hot water was supplementing the conventional system."

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