Energy Project Financing : Resources and Strategies for Success

156 Energy Project Financing: Resources and Strategies for Success

effects. ASHRAE defines acceptable indoor air quality as the air in

which there are no known contaminants at harmful concentrations

(as determined by cognizant authorities) and with which a substantial

majority of those exposed (80% or more) do not express dissatisfac-

tion.

A SHRAE Standard 55, which sets environmental conditions for

human occupancy, covers several environmental parameters includ-

ing temperature, radiation, humidity, and air movement. The stan-

dard specifies conditions in which 80% of the occupants will find the

environment thermally acceptable. This applies to healthy people in

normal indoor environments for winter and summer conditions. Ad-

justment factors are described for various activity levels and clothing

levels.

The International Performance Measurement and Verification Pro-

tocol (IPMVP) is used for commercial and industrial facility operators.

It offers standards for measurement and verification of energy and wa-

ter efficiency projects. The IPMVP volumes are used to: (1) Develop a

measurement and verification strategy and plan for quantifying energy

and water savings in retrofits and new construction, (2) Monitor indoor

environmental quality, and (3) Quantify emissions reduction. (www.

evo-world.org)

REGULATORY AND LEGISLATIVE ISSUES

IMPACTING COGENERATION AND

INDEPENDENT POWER PRODUCTION

Public Utilities Regulatory Policies Act (PURPA)

This legislation was part of the 1978 National Energy Act and

has had perhaps the most significant effect on the development of

cogeneration and other forms of alternative energy production in the

past decade. Certain provisions of PURPA also apply to the exchange of

electric power between utilities and cogenerators. It provides a number

of benefits to those cogenerators who can become qualifying facilities

(QFs) under this act. Specifically, it:

• Requires utilities to purchase the power made available by co-
  generations at reasonable buy-back rates. These rates are typically
  based on the utilities’ cost.