Changing the Paradigm: Financing to Advance Sustainability

Transcription

1 Changing the Paradigm: Financing to Advance Sustainability Southern Municipal Finance Association September 17, 2015

2 Agenda About UNC- Chapel Hill UNC-Chapel Hill FYE 2014 Revenues UNC-Chapel Hill Energy Services Ø Steam Generation/Electric Generation Ø Electric Distribution Ø Chilled Water/Cooling Ø Water Management (Partnership with OWASA) Renewable Energy Special Projects Committee UNC Investment Fund Questions

3 About UNC-Chapel Hill UNC-Chapel Hill, established in 1789 as the nation s first public university, is a global higher education leader known for innovative teaching, research and public service. Mission: To serve as a center for research, scholarship, and creativity and to teach a diverse community of undergraduate, graduate, and professional students to become the next generation of leaders. Fall 2014 Headcount Enrollment: 29,135 Ø 18,350 undergraduate students Ø 10,785 graduate students

4 About UNC-Chapel Hill 1st on the Top 10 Best Value Public Colleges for 2014 list published by The Princeton Review. 5th best public university in U.S. News & World Report s 2015 Best Colleges for 15th consecutive year. 32nd among the top 500 world research universities as ranked by U.S. News and World Report. 28 graduate and professional programs ranked in the top 10 by U.S. News & World Report s Best Graduate School rankings. Carolina offers 78 bachelor s, 112 master s, 68 doctorate and seven professional degree programs through its 14 schools and the College of Arts and Sciences.

5 FYE 2014 Revenue Streams State Appropriations (16%) $452,728 Non-Capital Grants (5%) $141,233 Non-capital Gifts, net (3%) $97,416 16% Investment Income, net (9%) $258,372 11% Student Tuition and Fees, net (12%) $361,771 16% Federal Grants and Contracts (22%) $641,519 State and Local Grants and Contracts (1%) $35,071 Non-governmental Grants and Contracts (5%) $143,564 5% 1% 5% 3% Patient Services, net (11%) $312,054 Sales and Services, net (16%) $458,458 Interest Earnings on Loans (0%) $823 22% 12% 9% Federal Interest Subsidy on Debt (0%) $2,109 Other Operating Revenues (0%) $2,872

6 UNC-Chapel Hill Energy Services Campus size: Approximately 738 acres and million square feet of building space. UNC-Chapel Hill utilizes a District Energy System to produce steam, hot water and/or chilled water at central plants for distribution to campus. Campus buildings do not need their own furnaces, boilers or air conditioners. These systems can also use a variety of conventional fuels and can easily transition to alternative fuel sources. UNC-Chapel Hill is a national leader in the utilization of District Energy and Combined Heat and Power Systems and has been nationally recognized with numerous awards. In FYE 2014, the University had approximately $100 million in Utilityrelated operating expenditures (approximately 3% of revenues).

7 32 MW Cogeneration Plant

8 1 Megawatt Landfill Gas Generator

9 LED Lighting LED Lighting on Campus

10 Energy Supply: Solar Thermal

11 Chilled Water Plant & Thermal Energy Storage

12 Energy Demand: Feedback / Toyota Prius Dashboard Display itsapps.unc.edu/

13 Campus Energy Efficiency

14 Campus Buildings and Grounds North Carolina Botanical Garden Education Center LEED Platinum 50% Energy Savings Students 300 geothermal wells for heating and cooling Foundation - photovoltaic array for 7% of electricity

15 Renewable Energy Special Projects Committee $4 per student per semester ~ $200k/year Renewable Energy Infrastructure Energy Efficiency Outreach and Awareness Raising Revolving Loan Fund for Auxiliaries

16 Toilet Flushing Athletic Field Irrigation Non-Potable Water Uses at UNC Cooling Towers Landscape Irriga5on

17 Reclaimed Water OWASA Mason Farm Wastewater Treatment Plant

18 Water: Supply Reservoirs: Cane Creek University Lake

19 Water: Stormwater Management

20 Water: Stormwater Management

21 Water Management Efficiency

22 Renewable Energy Special Projects Committee $4 per student per semester ~ $200k/year Renewable Energy Infrastructure Energy Efficiency Outreach and Awareness Raising Revolving Loan Fund for Auxiliaries

23 UNC Investment Fund UNC Investment Fund - $4.6 billion in Assets Under Management as of June 30, Ø $2.9 billion UNC-Chapel Hill and affiliated entities. Ø $1.7 billion other institutions within the UNC System and under the UNC Board of Governors. In September 2014, the University s Board of Trustees passed a resolution that requested that UNC Management Company research targeted investments for the University s endowment assets that advance environmentally friendly clean energy strategies consistent with applicable asset allocation and investment objective policies. Exposure to Alternative Energy investments, such as Eco-Friendly, Alternative Energy, Energy Conservation Related, and the Pollution and Recycling Related industries, in UNCIF is approximately $50 million.

24 UNC IF - Strategic Investment Policy Portfolio (SIPP) SIPP Target Allocations: Energy & NR 7% Asset Class Target Range Long Biased Equity 27% 20-35% Real Estate 8% Private Equity 18% Long Biased Equity 27% Long / Short Equity 18% 12-24% Diversifying Strategies 12% 8-16% Public Portfolio Fixed Income 10% Long/Short Equity 18% Fixed Income 10% 5-18% Private Equity 18% 14-22% Diversifying Strategies 12% Real Estate 8% 5-12% Private Portfolio Energy & Natural Resources 7% 5-10%

25 QUESTIONS?