section, where the energy efficiency index is computed (i) For a building, by dividing the size of the building, expressed in terms of net square feet, by the number of Btu used in its operation; or (ii) For an industrial process, by dividing the amount of production, consistently expressed in units, weight, or volume, achieved by the industrial process being modified, by the number of Btu used in its operation; and (7) Whether the number of Btu of depletable energy resources, estimated to be consumed by a modification under evaluation as a renewable-resource energy measure, computed with respect to paragraph (b)(4)(ii) of this section is less than the number of Btu of depletable energy resources estimated to be consumed computed for paragraph (b)(4)(i) of this section. (c) Costs and savings shall be presented in terms of constant dollars using the same base year as in the most current DOE projection of fuel prices set forth in Appendix A. (d) A verification audit shall contain a finding that a modification will reduce energy costs sufficiently to recover purchase and installation costs within the attributed life of the modification if the net present value is either zero or a positive value. The net present value of implementing the modification shall be computed by the subcontracting the present value of purchase and installation costs calculated in accordance with paragraph (d)(1) of this section from the present value of energy cost savings calculated in accordance with paragraph (d)(2) of this section. (1) The present value of purchase and installation cost shall be calculated by (i) Establishing the costs of purchasing and installing the modification, including the annual principal and interest payments on debt incurred, converted to base year dollars using the adjustment factors set forth in Appendix C: Provided, however, That the principal amount of indebtedness shall be used instead where it exceeds the sum of such adjusted principal and interest costs, and the costs of engineering design, less any salvage value of the existing equipment replaced by the modification; (ii) Establishing future purchase and installation costs for normal replacement of significant components and parts of the modification, less the normal replacement costs of the equipment replaced by the modification and significant components of the equipment; (iii) Deriving the yearly costs of operating and maintaining the modification less the costs that would be incurred for operating and maintaining the equipment replaced by the modification for the attributed life of the modification; (iv) Computing the present value of the purchase and installation costs for each year of the attributed life of the modification by multiplying the costs derived in paragraphs (d)(1) (i), (ii), and (iii) of this section by the factors set forth in Appendix B; and (v) Establishing the present value of the purchase and installation costs for the attributed life of the modification by adding together the yearly costs computed in paragraph (d)(1)(iv) of this section. (2) The present value of energy cost savings assuming no change in building size or production level, shall be calculated by (i) Deriving fuel prices by type of fuel for each year of the attributed life of the modification using projected energy prices provided in § 450.4(d); (ii) Establishing annual fuel costs for each year of attributed life of the modification by multiplying the fuel prices determined in paragraph (d)(2)(i) of this section by future energy consumption for each year, with and without the modification, as referred to in paragraph (b)(4) (ii) and (i) of this section, respectively, except that the conversion factor to be used for electricity for Tables 11-20 in Appendix A shall be 3412 useable Btu per kilowatt-hour; (iii) Computing the net annual fuel costs for each year of the attributed life of the modification by subtracting the annual fuel cost with the modification from the annual cost without the modification, as provided in paragraph (d)(2)(ii) of this section; (iv) Computing the present value of energy cost savings for each year of the attributed life of the modification by multiplying the values derived in paragraph (d)(2)(iii) of this section by the factors set forth in Appendix B; and (v) Establishing the present value of energy savings for the attributed life of the modification by adding together the yearly savings computed in paragraph (d)(2)(iv) of this section. (e) The contents of a verification audit shall be reduced to writing in the form of an audit report which shall contain the information and supporting documentation required by this section. [42 FR 33162, June 29, 1977, as amended at 44 FR 19351, Apr. 2, 1979; 44 FR 61317, Oct. 24, 1979] (a) A person who conducts a building verification audit shall (1) Be a licensed professional engineer or architect; (2) Have an engineering degree from a college or university accredited by the Engineers Council for Professional Development in addition to 4 years of subsequent experience in one or more of the following (i) Heating, ventilating and air conditioning installation or design work; (ii) Building operations, including operation of the environmental systems; (iii) Design of the building systems which are to be modified; or (3) Be a certified Public Accountant in the State in which the audit is performed and use building and building systems data provided by (i) A Test and Balance Engineer as certified by the Associated Air Balance Council; or (ii) A Testing, Adjusting, and Balancing Supervisor who is qualified by and employed by a firm that is certified by, the National Environmental Balancing Bureau. (b) A person who conducts a verification audit of a residential building having less than three dwelling units shall meet (1) The requirements specified in paragraph (a) of this section; or (2) Subject to the approval of DOE, other requirements which shall be prescribed by a Federal agency whose program utilizes such audits. (c) A person who conducts an industrial process verification audit shall(1) Be a licensed professional engineer, or (2) Have an engineering degree from a college or university accredited by the Engineers Council for Professional Development in addition to 4 years of subsequent experience with a relevant industrial process. (d) Prior to conducting a verification audit, the auditor shall disclose in writing to the person for whom the audit is to be performed any significant financial interest held by the auditor, the auditor's spouse, or any child of the auditor, in a partnership, corporation, sole proprietorship, or other business enterprise engaged in the manufacturing, including manufacturing of major components marketing, installing, or servicing, of the modification which is the subject of an audit, or in the ownership or operation of the building or industrial plant which is the subject of an audit. A copy of the disclosure statement shall be signed by the auditor and shall accompany submission of the energy audit report or any portion thereof to DOE or any other agency, department or other instrumentality of the Federal Government. (e) A financial interest shall be significant for the purposes of this section if it is one of the following (1) Employment, including employment as a consultant, by a partnership, corporation, sole proprietorship, or other business enterprise engaged in the manufacturing, marketing, installing, or servicing of the modification which is the subject of an audit or in the ownership or operation of the building or industrial plant which is the subject of an audit; (2) Ownership of 10 or more percent of the stock, including options to purchase stock, or other securities issued by a corporation, or of a 10 percent or more financial interest in any other business enterprise engaged in the manufacturing, marketing, installing, or servicing of a modification which is the subject of an audit or in the own ership or operation of the building or industrial plant which is the subject of an audit; (3) A position as a director or officer of a corporation or partner in a partnership or active principal in a consortium or any other business enterprise engaged in the manufacturing, marketing, installing, or servicing of a modification which is the subject of an audit or in the ownership or operation of the building or industrial plant which is the subject of an audit; (4) Participation in the profit-sharing program of a partnership, corporation, or other business enterprise engaged in the manufacturing, marketing, installing, or servicing of a modification which is the subject of an audit or in the ownership or operation of the building or industrial plant which is the subject of an audit; or (5) Ownership of patent rights or other industrial property interests or the receipt of royalties therefrom for the manufacturing, installing, or servicing of a modification which is the subject of an audit. (f) Each verification audit report shall include a statement signed by the auditor certifying that— (1) The auditor meets the applicable qualifications set forth in this section; (2) The auditor has made a full written disclosure of any significant financial interests in accordance with paragraph (d) of this section; (3) The audit was conducted in accordance with the requirements of Subpart C of this part; (4) The audit report required by § 450.21(e) and accompanying documentation accurately describe audit findings; and the (5) The auditor understands that the report will be submitted to a department or agency of the United States which may rely on the contents of the material prepared by the auditor. $ 450.23 Cost of verification audits. (a) A verification audit shall be conducted without cost to the occupant of a dwelling unit. (b) For any building or industrial plant not referred to in paragraph (a) of this section, a verification audit shall be conducted at a cost which is less than (1) 10 percent of the building's or industrial plant's total energy costs for the preceding 12 months, when such energy costs were less than $40,000; (2) $4,000 or 5 percent of the building's or industrial plant's total energy costs for the preceding 12 months, whichever is greater, when such energy costs were equal to or greater than $40,000 but less than $1,000,000; or (3) $50,000 or 2.5 percent of the building's or industrial plant's total energy costs for the preceding 12 months, whichever is greater, when such energy costs were equal to or greater than $1,000,000; (c) The Regional Administrator may grant exceptions to the limitation set forth in paragraph (b) of this section, when requested, if he determines upon specific review of a proposed audit that the audited building or plant exhibits unique or unusually complex characteristics relating to energy use and that the audit will therefore be unusually costly to perform. Subpart D-Energy Measures SOURCE: 42 FR 37800, July 25, 1977, unless otherwise noted. § 450.30 Purpose and scope. This part establishes a list of energy conservation and renewable-resource energy measures developed by DOE after consultation with the Secretary of Housing and Urban Development. Depletion of the Nation's domestic resources of fossil fuels has created a need measures to identify energy which can be carried out in residential and commercial buildings and industrial plants. § 450.31 Energy conservation measures. Subject to the requirements and limitations set forth in § 450.32, an energy conservation measure shall be (a) Ceiling insulation in a residential or commercial building, which is a material which is installed on the surface of the ceiling facing the builidng interior or between the heated top level living area and the unheated attic space and which resists heat flow through the ceiling; (b) Wall insulation in a residential or commercial building or industrial plant, which is a material which is installed on the surface facing the building interior, or in the cavity, of an exterior wall and which functions to resist heat flow through the wall; (c) Floor insulation in a residential or commercial building, which is a material which resists heat flow through the floor between the first level heated space and the unheated space beneath it including a basement or crawl space; (d) Insulation for hot bare pipes in a residential or commercial building or industrial plant, which is a material which resists heat flow from the pipes to the surrounding space; (e) (1) Caulks and sealants in a residential or commercial building or industrial plant, which are nonrigid materials placed in joints of buildings to prevent the passage of heat, air and moisture; (2) Weatherstripping in a residential or commercial building or industrial plant, which consists of narrow strips of flexible material placed over or in movable joints of windows and doors to reduce the passage of air and moisture; (f) Roof insulation in a commercial building or industrial plant, which is insulation placed on the surface of the roof facing the building interior or between a roof deck and its water repellent roof surface; (g) Clock thermostat in a residential building, which is a temperature control device for interior spaces incorporating more than one temperature control point and a clock for switching from one control point to another; (h) Exterior insulation for a hot water heater in a residential or commercial building or industrial plant, which is a material placed around the tank which resists the heat flow from the hot water heater to its surrounding space; (i) Insulation for forced air ducts in a residential or commercial building or industrial plant, which is a material which resists heat flow from the duct to its surrounding space; (j) Storm window in a residential or commercial building, which is an extra window, normally installed to the ex (2) Replaces a mercury vapor fixture or lamp with a high pressure sodium lighting system. (1) Mixing valve for a hot water supply line in a residential or commercial building or industrial plant, which is a type of valve mounted in the hot water supply line, close to the water heater, which mixes cold water with hot, reducing the temperature of the water in the hot water distribution system; (m) Flow restrictor for hot water lines in a residential or commercial building or industrial plant, which is a device that limits the rate of flow of hot water from shower heads and faucets; (n) Burner for oil fired heating equipment in a residential building, which is a device which atomizes the fuel oil, mixes it with air and ignites the fuel-air mixture, and is an integral part of an oil fired furnace or boiler, including the combustion chamber; (0) Individual meters to replace a master meter for gas, electricity and hot water in a commercial building, which are meters that measure the consumption of gas, electricity or centrally distributed hot water for individual users, instead of the total consumption which is measured by a master meter; (p) (1) New oil burner is a commercial building or industrial plant, which is a device that meters, atomizes, ignites and mixes the oil with air for the combustion process of a boiler; or (2) New boiler controls in a commercial building or industrial plant, which are devices that sense the need for reducing or increasing the firing rate and change the combustion air and oil flow rate accordingly; (q) Controls for lighting in a residential or commercial building or industrial plant, which are manual or automatic cut off switches for lighting systems that allow cut off of all lighting or a portion of the lighting systems when lighting is not required; (r) Automatic HVAC control system in a commercial building or industrial plant, which is a device which adjusts the supply of heating or cooling to meet space conditioning requirements; (s) High efficiency electric motor or motor controls in a commercial building or industrial plant, which replace an existing motor or motor controls, resulting in not less than a specified increase in efficiency at a specified level of use, as determined by DOE; and (t) Whole house ventilation fan in a residential building, which is a fan which removes air from the inside of a residential building to the outside. (u) Air source heat pump, which is a system which is part of the central heating system and which has the capability of extracting heat from a body of air and transferring this heat to a body of liquid or to another body of air for space conditioning purpose; (v) Water source heat pump, which is a system which is part of the central heating system and which has the capability of extracting heat from a body of water and transferring this heat to another body of liquid or to a body of air for space conditioning purposes. (Part B of Title IV of the Energy Conservation and Production Act, Pub. L. 94-385, 90 Stat. 1125 et seq.; also issued under Part C, Title III of the Energy Policy and Conservation Act, Pub. L. 94-163, 89 Stat. 871 et seq. (42 U.S.C. 6321 et seq.); Federal Energy Administration Act of 1974, as amended, Pub. L. 93-275 (15 U.S.C. 761 et seq.); Department of Energy Organization Act, Pub. L. 95-91, 91 Stat. 565 et seq. (42 U.S.C. 7101 et seq.); EO 11790, 39 FR 23185) [42 FR 37800, July 25, 1977, as amended at 42 FR 61993, Dec. 8, 1977] § 450.32 Requirements and limitations for energy conservation measures. (a) Ceiling insulation shall be that amount which is required to raise the total ceiling insulation in a heating (f) Roof insulation shall be no greater than that amount which is required to raise the total insulation to the level of R-Value 20 in heating zone 5. In all other heating zones, this amount of roof insulation is eligible where the structure is air conditioned by an absorption chiller. (g) Clock thermostats shall automatically change a temperature setting to match heating and cooling demands, and complete not less than one cycle of adjustment in a 24 hour period, in all climate zones. (h) Exterior insulation for hot water heaters shall be no greater than that amount which is required to raise the total exterior insulation to the level of R-Value 19, in all climate zones. (i) Insulation for forced air ducts shall be no greater than that amount which is required to raise the total insulation to the level of R-Value 19, in all climate zones. (j) Storm windows shall be eligible in heating zones 2, 3, 4, and 5, provided |