Pathways to Green School CONVERTING CAPITAL … · • Kitchen exhaust hood control systems • Variable speed drives • Elevator controllers • Instantaneous hot water heaters

Pathways to Green SchoolsCONVERTING CAPITAL REPLACEMENT PROJECTS TO ENERGY PROJECTS

USING

ACT 77/ GUARANTEED ENERGY SAVINGS ACT

PRESENTED BY:

Pathways to Green Schools

Market as a fiscal tool Savings pay for projects (utility, operational, capital

avoidance) Third Party Lenders (7) Maximum 20 year project payback (3rd party lender) Budget neutral to Agency RFP procurement process Standard agreements and forms Qualified Energy Service Companies (ESCO’s)

GESA Program Overview


Type of Design/Build Project Turnkey Services:

Audit + Engineering + Construction + Financing + Commissioning + O&M + Long-term M&V

Self-financing projects (paid from savings) Third Party Financing

- Competitive market delivers low rates

What is Performance Contracting (PC)


Project Delivery System

School District Performance Contractor

(PA Qualified ESCO)Performance Contractor

(PA Qualified ESCO)

Specialty Contractor

MechanicalContractor

ElectricalContractor

PlumbingContractor


Addresses Impending 2010 / 2011 Electric Rate Cap Addresses Aging Facility Infrastructure-Deferred

Maintenance Ensures Reliability and Comfort for Students & Staff Alternate path rather than Referendum for Energy

Projects Contractually guaranteed measured savings reduces

the risk of savings erosion over time

Why Use PC?


Integrated project analysis, design, and construction reduces the risk of lost savings opportunities and schedule delays

Up-to-date training and knowledge for facility operating personnel reduces the risk of project non-performance

Ability to select services and materials based upon quality and value, rather on lowest first cost, reduces the risk of poor equipment performance

More Value Created !! (Long Term Goal, Utility Procurement Savings, Controlled energy usage pattern)

Why Use PC?

Pathways to Green SchoolsTypical Energy Conservation Measures

Lighting System UpgradesLighting System Upgrades• Occupancy based redesign• Direct/indirect systems• Lighting system controls• Re-lamp and re-ballast• LED Applications• Street and traffic lighting upgrades• Incandescent to fluorescent conversion• Parking area lighting upgrades• Daylight Harvesting

MiscellaneousMiscellaneous• High efficiency motors• Kitchen exhaust hood control systems• Variable speed drives• Elevator controllers• Instantaneous hot water heaters

HVAC System UpgradesHVAC System Upgrades• New air handling system installations• Demand Controlled Ventilation• Displacement Ventilation• Energy Recovery Units• Constant volume to variable air

volume conversions

Water ConservationWater Conservation• Ultra-low flow toilets• Ultra-low flow urinals• Low flow faucet aerators• Low flow showerheads• Groundwater irrigation• Laundry Ozone systems• Leak detection systems

Central Plant UpgradesCentral Plant Upgrades• Steam to hot water conversion• District steam & HW systems• New chiller & boiler installations• New cooling tower installations• Primary/secondary systems• Waste Heat recovery systems• Variable speed pumping systems• Steam trap replacements

Building Automation System UpgradesBuilding Automation System Upgrades• Enhance existing systems• Complete new DDC systems• Unoccupied setback control• Integration of multiple systems• Remote access and monitoring• Efficient operation algorithms• Outside air control strategies

Building EnvelopeBuilding Envelope• Window replacement• Roof improvements/replacements• Stack effect mitigation• Crack repair/weather-stripping• Window solar film

Renewable EnergyRenewable Energy• Geothermal system• Wind Turbines• Photovoltaic arrays• Alternative fuel conversion• Fuel Cells• Bio-Mass


Well-informed Administration, School Board and Buildings & Grounds Committee of GESA Process

Objective and Measurable Selection Process Valid Baseline of Energy Usage Construction Documents That Capture Desired Scope Systems, not Component Approach Innovation, Competition, and Transparency to Taxpayers

Keys to a Successful Project


Power Purchase Agreements


PPA Program Benefits• Create competition• Standardize RFP Process• Standardize Documents• Qualified Contractors• Budget Neutral Opportunity1) Contractor funds, constructs and maintains at own cost over life of contract

• Green Image

Pathways to Green SchoolsNegotiated Values

• Ownership1) Renewable Energy Credits2) Accelerated Depreciation3) Federal Tax Credits

• Project Length (15 – 20 yrs)• KWH cost (MCF, Gallons, etc)1) Flat value vs. escalated

• End of contract equipment purchase


Maximize Electric Utility Maximize Electric Utility Procurement SavingsProcurement Savings

Distribution20 % Transition

10 %

Generation60 %

Transmission10 %

Pathways to Green SchoolsWhat can be done to mitigate What can be done to mitigate

Electric Cost Increases?Electric Cost Increases?

•• Reduce electric unit costs by choosing an Reduce electric unit costs by choosing an alternate electric energy provideralternate electric energy provider

•• Reduce electric consumption with the Reduce electric consumption with the implementation of good energy saving practicesimplementation of good energy saving practices

•• Participate in Act 129 sponsored programsParticipate in Act 129 sponsored programs–– Use your onUse your on‐‐site generation and energy management site generation and energy management

systems to reduce costs with continued participation in systems to reduce costs with continued participation in the PJM Load Response Programsthe PJM Load Response Programs


Lower Electric Unit CostsLower Electric Unit Costs•• Type of Electric products Type of Electric products 1)Default price1)Default price2)Fixed Product 2)Fixed Product 3)Block & Index Product3)Block & Index Product4)Straight Index4)Straight Index


Standard Bell Curve• Daily Electric Usage


Standard Bell Curve• Daily Electric Pricing


Standard Bell Curve• Yearly Electric Usage


Standard Bell Curve• Yearly Electric Pricing


Standard Bell Curve• Yearly Solar Production

Pathways to Green SchoolsFixed Price Built in Costs


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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Hour

Load

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On-peak Block

Customer’s Load Profile

Suppliers provide a block of electric energy at a fixed price for on-peak & off-peak periods

Electric consumption above the block is purchased at the Hourly Locational

Market Price (LMP)

Usage variations only make things worse!

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Pathways to Green SchoolsA Packaged Approach

• Reduce usage and stabilize usage patterns through GESA projects

• Install load control (15%) through GESA• Solar on site application producing 60% to 70% through Power Purchase Agreement

• Block and Index or Straight Index procurement option lowering yearly KwH costs

Pathways to Green SchoolsContact Information

Bruce StultzEnergy Management Office, Director

(717) 705‐[email protected]