Energy Performance ContractingPotential Funding Source to Address

Energy-Related Capital Needs atKatonah-Lewisboro UFSD

March 1, 2012

What is Energy PerformanceContracting (EPC)?

• EPC is a concept created by the NYState Legislature and enacted into lawas “New York State Energy Law –Article 9.”

• Alternative funding mechanism toupgrade energy-consuming buildingsystems

• Make improvements now and pay forthem out of future, guaranteed energysavings

Unique Aspects of EPC• Project must pay for itself in 18 years or less

• Does not require voter approval

• Budget Neutral -- shifts money you would otherwise spend onutility bills to fund valuable, needed, energy efficient buildingupgrades

• No change orders permitted/No Wicks Law

• Most comprehensive approach to energy efficiency availableto school districts

Energy Services Companies(ESCOs)

• Responsible for all aspects ofthe project

• Identify energy savingsopportunities

• Build the project• Train your staff on use and

maintenance of new equipment• Guarantee all project costs are

covered by Energy Savings

Financial Mechanics

How EPCs are Financed

• After design approval, financing is sought• Tax exempt municipal lease• No payments on lease are made for full year after

project is constructed• Payments are made based on guaranteed energy

savings that will be measured and verified• If savings do not materialize, ESCO cuts district a

check for the difference• The result = No out-of-pocket cost, no risk to district

Why Consider an EnergyPerformance Contract Now

• $13 Million in energy-relatedcapital needs identified in 5Year Plan

• EPC will reduce need forfuture tax increases attributedto bond work

• EPC is ideal vehicle to achievegoals of SustainabilityCommittee

Goals of KLSD SustainabilityCommittee

• Reduce energy consumption• Reduce the district’s exposure to ever increasing

energy prices• Improve comfort (livability) of buildings• Reduce green house gas emissions

Annual Environmental Impact Due to JCI Performance Contract

Year 1 (May2010 - April 2011)Year One Annual Energy Savings:

Annual Kilowatt Hours Saved 1,582,652 kWhAnnual Natural Gas Saved 16,166 MMBtuAnnual Oil Saved 522 MMBtu

Emission Reductions In One Year In 10 Years In 18 Years Pounds of Carbon Dioxide 4,623,850 46,238,501 83,229,302 Pounds of Sulfur Dioxide 11,902 119,021 214,238 Pounds of Nitrogen Oxide 6,227 62,272 112,090 Metric Tons of Carbon Dioxide 2,097 20,974 37,753 Metric Tons of Sulfur Dioxide 5.4 54 97 Metric Tons of Nitrogen Oxide 2.8 28 51

Equivalent Impact In One Year In 10 Years In 18 YearsPassenger Cars off the Road 453 4,531 8,157Passenger Car Miles Driven 5,437,691 54,376,912 97,878,442Planted Acres of Trees* 631 6,306 11,350Gallons of Gasoline 238,835 2,388,352 4,299,034Barrels of Oil 4,878 48,780 87,804Number of Powered Homes 268 2,682 4,827*1 acre of Trees = 400 Trees

Scarsdale Public Schools

ECG Engineering’s Background• Experts in Energy Performance Contract Consulting and Design

• Designed and Managed over 65 EPC’s for NYS School Districts,including 11 Districts in Mid Hudson area in the past 8 years.

• Initiated and designed over $600 million worth of pure EnergyPerformance Contracts

• Only firm with proven track record of 20+ projects that are fullyconstructed and are generating the guaranteed energy savings yearover year.

EPC Process andECG Engineering’s Role

“Energy Performance Engineering” includes the following servicesat no out-of-pocket cost to your District:– Preliminary Energy Audit– Specialized RFP that results in competitive, comparable proposals– Proposal evaluation– Review of Final Comprehensive Energy Audit– Technical Review of ESCO contract– Engineering design– Oversight of Construction– Verification that energy savings were realized– ECG’s service is paid entirely out of energy savings

and does not add additional cost to the project

Neighboring ECG ClientsSuccessfully Employing EPC

• Scarsdale - $7.5 Million• Chappaqua - $10 Million• White Plains - $10 Million• New Rochelle - $8 Million• Mahopac - $10 Million• Mamaroneck - $5 Million• Hastings-on-Hudson - $2 Million• Southern Westchester BOCES - $2 Million• Carmel - $6 Million

Next Initial Steps• BOE Selects EPC Consultant - April/May 2012

• EPC Consultant Prepares Preliminary Energy Assessment to QualifyOpportunity - June 2012

• Consultant Issues RFP to ESCO’s - July 2012

• Consultant completes analysis of proposals received-October/November 2012

• Joint Presentation to BOE by Consultant and Recommended ESCO -December 2012

THANK YOU

Questions and Answers