University of San Diego
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1 University of San Diego A comprehensive performance contract cuts utility costs, improves building operations and furthers sustainability initiatives. s
2 When it comes to sustainability, the University of San Diego (USD) believes in leading by example. The university has grown tremendously since its founding in 1949, and currently has over 90 campus buildings and an enrollment of more than 8,300 students. USD is vigilant in its quest to be a better steward of the environment and goes to great lengths to show its students just how important this truly is. Sustainability is not new to USD. While many of its efforts have focused on water conservation due to the frequency of droughts in Southern California, USD has taken a comprehensive approach to sustainability. The university s sustainability movement, known as the Be Blue, Go Green initiative extends to involve everything from building operations, alternative forms of transportation and recycling to educating the community. Both the institution and its students have made environmentally friendly practices a priority. On a 2009 freshman student survey, the third-highest answer (52.5 percent) to the question: What responsibilities do you consider very important in college, was adopting green practices to protect the environment. In 2008, the university decided it was time to push its green building initiatives further and look for new ways to save energy, water and money in the face of financial uncertainty. At the same time, there was a concern about shrinking enrollment because of economic conditions. For a tuition-dependent institution, losing even 200 students would have had a significant impact on the budget. That was an unknown for a period of time, so we had to take a look at whatever measures could reduce expense, says Roger Manion, USD s Assistant Vice President of Facilities Management. The Performance Contract Siemens and USD have a long history of working together. For the past 19 years, Siemens has been providing control systems and solutions to the university. USD trusts Siemens so when the institution voiced its desire to further its sustainability initiatives and cut utility costs, Siemens suggested a performance contract. Performance contracting would enable the university to improve building systems, save energy and water and cut operating costs in case of a dip in enrollment. It would also improve the quality of indoor spaces, fix equipment that was in need of repair or replacement and minimize the impact of campus buildings on the environment. With performance contracting, facility and capital improvements are funded with the energy savings that result. An energy service company (ESCO) evaluates opportunities for utility-saving and other facility improvements, executes the projects and makes a guarantee that, when implemented, the savings will equal or exceed the project costs over the term of the contract. If the savings are not achieved, the ESCO pays for the shortfall. Performance Contracting Defined Performance contracting is a means of financing a multifaceted capital improvement project. An energy services company (ESCO) identifies facility improvement measures (FIMs) that will reduce water, sewage, electricity, steam, natural gas, etc. and guarantees the predicted savings. The ESCO provides single-source accountability, acting as project manager, executing the work and/or hiring local contractors. The contractee gets a loan to pay for the improvements. The cost of the project is divided by the guaranteed annual savings to determine the length of the contract. Project payment is based on the guaranteed annual savings. Once the project is implemented, the savings resulting from increased efficiencies are used to make loan payments to the capital leasing company. If the actual savings are in excess of the guaranteed savings, the contractee keeps the amount above the guarantee. If they are lower, the ESCO must pay the contractee the difference. Beyond the term of the contract, the contractee receives the entire energy savings. How Performance Contracting Works Utility Bill Before Performance Contract Savings Project Payment Utility Bill During Performance Contract Utility Savings Savings Utility Bill After Performance Contract
3 The guarantee given to USD provided the assurance the university needed to enter into an agreement with Siemens. If we only saved $900,000, basically they owe us $100,000, says Manion using a $1 million performance contract as an example of how the guarantee works. In February 2008, Siemens submitted a proposal for an investment-grade energy audit of the campus and received authorization to proceed. In April of that year, energy engineers and project managers arrived on campus to begin the audit which, because of its breadth and depth, lasted several months. Normally when you talk to a company like Siemens or any other [energy service] company, you re just looking at power and gas, says Manion. We had them look at all the commodities that we use: power, gas and water. As a leading provider of energy and environmental solutions and building automation and control technologies, Siemens had the capability and experience required to identify utility savings of all kinds. Based on the findings, Siemens proposed more than a dozen Facility Improvement Measures (FIMs) to the university in December Among all of the improvements identified, three in particular were presented to the university s administration as a case for performance contracting: Switching to low-flow washroom fixtures designed to conserve millions of gallons of water. Relamping light fixtures and retrofitting to more energy efficient technologies. Implementing Siemens Demand Flow technology to optimize the university s chilled water system and reduce energy consumption. These three projects alone would advance the university s energy and water conservation efforts and dramatically cut utility bills. After carefully reviewing these FIMs, the Board of Trustees understood the potential savings a performance contract could offer and authorized the contract. Facility Improvement Measures Needs were evaluated and the payback and guaranteed savings of the proposed FIMs was scrutinized until the university zeroed in on nine projects, including the three previously mentioned (low-flow washroom fixtures, a lighting retrofit and chilled water optimization). The cost of the 10-year performance contract was $8.2 million. Central Plant Optimization Our chillers are fairly new; we just needed a different operational scenario on them, says Manion. Siemens implemented its patent-pending Demand Flow, a proven variable pressure curve technology that works by: Increasing the deliverable tonnage of the chilled water plant. Simplifying plant operations without sacrificing occupant comfort in favor of energy savings. Allowing the central chilled water plant to more accurately maintain optimal differential system pressure. As part of this improvement measure, new VFDs were installed and integrated with Siemens local area network (LAN). A certified technician from Siemens provided start-up and commissioning to ensure proper operation. Demand Flow has optimized chilled water systems and reduced the plant s total energy consumption. Energy savings from the central plant optimization alone will equal more than $220,000 each year. Aircuity Systems Installation Conditioning laboratory spaces is expensive. The university was eager to get a handle on the utility costs at USD s Donald P. Shiley Center for Science & Technology. I believe there was a complete air exchange of the building every six or eight minutes [before], notes Manion. So every BTU that was produced to either heat or cool that building was then exhausted out. It was a very high energy user. Siemens installed the Aircuity OptiNet system, which continually senses and analyzes laboratory environments and provides ventilation inputs to lab room controllers so the number of the air changes per hour (ACH) can be reduced. The new Aircuity OptiNet system interfaces with the existing Phoenix laboratory ventilation system, which is also integrated to the Siemens APOGEE Building Automation System. Implementation of the system has reduced the number of air changes per hour when the labs are not in use. This will reduce the university s energy bill by $121,125 annually. We cut our energy usage in that building by at least a third, says Manion.
4 Campus-Wide Building Automation Retrocommissioning Retrocommissioning the university s APOGEE system was necessary to enhance its capabilities and to standardize and improve system performance. Siemens developed and executed a customized test plan to verify that the fundamental building systems met current facility requirements and were operating efficiently. This FIM included: Upgrading several older DDC (Direct Digital Control) controllers to newer versions to take advantage of the latest energy management strategies available with Siemens new firmware. Performing test, balance and commissioning diagnostics on all DDC air system terminal boxes. Conducting building automation network communications diagnostics for all controllers and overall system performance for optimization. Detailed functional test deficiency reports were compiled and presented to USD with recommendations for appropriate corrective actions. Controls and sequences were recommissioned in 14 campus buildings and, when combined with the other work performed as part of this FIM, will net the university more than $31,000 in annual energy savings. Chilled Water Plant Retrofit USD s Loma Hall satellite chilled water plant, with its limited 300- to 400-ton chilled water capacity, was inefficient. Siemens considered two ways to improve it: upgrade this small plant with more energy efficient equipment or eliminate it altogether, tying it into the main chilled water loop that was extended around campus the year prior. The evaluation revealed that more energy could be saved by eliminating the satellite plant. This entailed demolition of the existing satellite chilled water plant, cooling tower, ice storage tanks and electrical conduit and wire that served the locally connected mechanical equipment. Siemens installed below-grade, pre-insulated supply and return chilled water piping from the mains under the campus service road to Loma Hall. Building automation controls and optimization control strategies were implemented for the new chilled water system configuration. This improvement will save USD $109,000 each year in utility costs. University Center HVAC and Building Automation Improvements The Hahn University Center, also known as the UC, had 25-year old HVAC equipment that was costing the university money in repairs and inefficiency. Siemens applied a number of HVAC and building automation solutions to improve building operation and reduce energy consumption. Eleven (11) existing air-handling units and associated piping, ductwork, etc. were removed. They were replaced with new Alliance air-handling units of like size and configuration, equipped with: Full economizer/mixed air plenums. Fans coupled with premium efficiency motors and VFDs. High efficiency filters. Siemens also replaced all zone reheat coils and deficient piping appurtenances. APOGEE Building Automation controllers and sensors for each air-handling unit were upgraded. Direct Digital Control (DDC) replaced pneumatic controls for the zone terminal units, improving USD s energy management at the UC. The new DDCs were incorporated Guaranteed Annual Utility Savings: $1.1MM Water Fixture Upgrade 30% Lighting Upgrade 25% Boiler Plant Upgrade 2% Central Plant Optimization 19% Aircuity Systems Installation 10% BAU Retrocommissioning 3% Chilled Water Plant Retrofit 9% UC HVAC Improvements 2% In the first year of the performance contract annual utility savings totaled $1.5MM, exceeding the guaranteed amount by 36%.
5 into the APOGEE network, providing the university with added diagnostic capabilities. These HVAC improvements, coupled with the implementation of energy efficient control strategies, will reduce USD s utility costs by nearly $18,000 annually. Boiler Plant Upgrade A new boiler combustion control system was provided at the Joan B. Kroc Institute of Peace & Justice building. It was integrated into the existing boiler controller with an energy efficient modular burner and combustion air controller. Conversion of the heating system to a variable volume operation, including the installation of new variable speed drives and boiler flow sensors, was completed. New Siemens APOGEE controllers and sensors were installed. Additionally, a new boiler plant sequence of operations was initiated, as well as energy efficient control strategies. Not only have building operations been improved, but the facility s state-of-the-art classrooms will be more comfortable learning environments. The benefits don t stop there; approximately $29,000 will be saved each year in utility costs as the result of the boiler plant and HVAC upgrade. Lighting Upgrade USD had 10-year old lighting technology. Fixtures and lamps were upgraded to improve efficiency in 70-plus campus locations, impacting more than 3.8 million square feet. Work completed as part of this FIM included: Installing SYLVANIA SUPERSAVER T8 lamps and QUICKTRONIC High Efficiency (QHE) ballasts. Implementing LED lighting technology in a number of areas around campus. Upgrading inefficient existing fixtures with customdesigned optical reflectors and high output QHE ballasts. Replacing incandescent lights with compact fluorescent lamp (CFL) technology. Lighting improvements weren t relegated to just lamps and ballasts. Lighting controls were also improved. Occupancy sensors using infrared, ultrasonic and dual technology were added throughout campus. By using more efficient lamps and ballasts and automatically turning lights off in unused areas, the university will save more than $300,000 each year. Sanitary Water Fixture Upgrade Anything that used water, we were going to put a water conservation measure on it, says Manion. In keeping with USD s original mission to cut water usage on campus, Siemens replaced or retrofitted water-consuming fixtures to those with new high efficiency consumption levels (e.g. low-flow showerheads, lavatory and kitchen faucet aerators, and low-flow toilets and urinals). The water conservation efforts implemented by Siemens will provide the university nearly $350,000 in annual utility savings. A total of 38 campus buildings were impacted, saving USD more than 40 million gallons of water per year. I think we re down about a third of our total water consumption, says Michael Catanzaro, USD s Director of Sustainability. Project Management Implementing the projects took a little more than a year. Siemens located its office (a project manager, assistant project managers, and up to four engineers) next to Manion s. If we had any issues, all I had to do was go out the door about ten feet, he says. They basically became one of our staff. Information flowed in both directions with the USD team and Siemens in constant communication. They had a really sharp project management team out here and some top-notch field engineers. I think my building maintenance people who worked with them probably gleaned a lot of great information, reflects Manion. University of San Diego Impact of Facility Improvement Measures Over 40 campus buildings were improved Annual energy savings estimated at 9 million kwh Water conservations efforts saving 40 million gallons per year
6 Because buildings remained in operation, Siemens demonstrated great flexibility and worked around USD s schedule as much as possible to avoid disruption. There was a lot of night work. Once construction was executed, San Diego Gas & Electric (SDG&E) performed verification. The utility had collected baseline data via an inspection before the work began. Inspections were conducted again once construction was complete. SDG&E compared the baseline data to how the buildings were currently performing; this information validated the actual savings. All of our projects were qualified for incentives and rebates through the local utility, says Catanzaro. Siemens worked with the utility to identify and apply for incentive and rebate opportunities on behalf of the university. USD was awarded $507,251 in incentives, which was 97 percent of the dollar amount Siemens estimated. Benefits The $8.2 million performance contract will save the university a significant amount of money. USD is pleased that the savings are already exceeding the amount Siemens guaranteed annually ($1.1 million); it noticed a $1.5 million reduction in utilities from the year previous. Each year, USD will save more than 9 million kilowatt-hours and approximately 32,500 therms. These numbers are good for the university and great for the environment. The greenest hour of electricity is the one not used, says Catanzaro. Being able to save more than 6 million kilowatt-hours of energy [annually] is such a huge win for us. That was 20 percent of our total load. By reducing its consumption, USD is also reducing greenhouse gas emissions. Over the performance contract s 10-year term, emissions from the following compounds will be reduced: million pounds of CO 2. 37,006 pounds of NOx. 15,613 pounds of SO 2. The university s efforts are gaining attention. It has given us a lot of credibility, says Catanzaro of the performance contract s impact on the university s sustainability objectives. The San Diego City Council recognized the university s efforts to conserve energy and water by deeming April 12, 2011, University of San Diego Sustainability Day. SDG&E also recognized USD with its prestigious Excellence in Energy Savings Champion for Higher Education award. The facility improvement measures have also provided an opportunity to encourage students to adopt green practices on campus. Before they were implemented, USD wanted to engage its students in making more environmentally friendly decisions. It becomes really difficult to do that if we re overwatering, if we re using devices that aren t energy efficient and if the lights in the buildings are always on, says Catanzaro. I didn t want to be hypocritical in terms of asking for their commitment. Because wasting energy is a lot easier to see than the savings, USD s Office of Sustainability is actively working on a website to promote these and other efforts to its students, faculty and others interested in sustainability. The benefits of the nine facility improvements are obvious and far-reaching. The performance contract has advanced the university s mission to make its campus more green and eco-friendly. It s also showing the Be Blue Go Green student group and others at USD that the school s sustainable strategic initiatives are more than just talk. Emissions Reductions The emissions that will be reduced over the contract s 10-year term are equivalent to: acres of forest preserved from deforestation. 8,936.2 cars removed from the road for a year railcars of coal not consumed. Environmental Impact The results of the water conservation measures are equally impressive. If a drought hits, USD is ready. Last year, we had a lot of rain and this year, we haven t. We re thinking that probably within six months to a year, rationing will start all over again, says Manion. Water saved through the use of low-flow fixtures has brought the university s water usage back to 1991 levels acres of trees preserved from deforestation 8,936.2 cars removed from the road railcars reserved from coal use
7 Siemens is a proud member of the U.S. Green Building Council, ENERGY STAR, AASHE and a sponsor of the American College & University Presidents Climate Commitment.
8 Replace magenta box with appropriate FSC logo and language. Please fit logo within dimensions of the magenta box - aligning FSC logo to the bottom of the box first. Siemens Industry, Inc. Building Technologies Division 1000 Deerfield Parkway Buffalo Grove, IL Tel: (847) Fax: (847) Copyright 2012 Siemens Industry, Inc. All rights reserved. (7/12)
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