Colorado ESC Chapter 6/12/18. Your ESCO Partner. The ESCO s Role in Energy Performance Contracting

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1 Colorado ESC Chapter The ESCO s Role in Energy Performance Contracting Presented by the Energy Services Coalition (ESC) Oscar Rangel Colorado Service Sales Manager Siemens Mission To promote the benefits of, provide education on, and serve as an advocate for the widespread use of energy performance contracting in public and private facilities. The diverse membership of the ESC provides a unique opportunity to: Provide independent third party information and education Identify and overcome barriers in Colorado Your ESCO Partner A qualified ESCO combines multiple disciplines into a turnkey approach for your Energy Performance Contract including: Identification/evaluation of project opportunities Financing and other funding sources (grants/ rebates, etc) Installation, project commissioning, and construction management Measurement and verification of energy savings Staff and building operator training A savings guarantee that covers the cost of the total project Two Contractual Agreements Secured by the ESCO Guarantee Agency/Owner Lease-Purchase Agreement or other funding arrangement Financier Performance Contract ESCO ESCO guarantee: Savings => Payment Energy Performance Contract Scope LED interior and exterior lighting systems Building automation system upgrades HVAC system improvements Boiler replacements Plant improvements Renewable energy systems Landscape irrigation Plumbing fixture replacements Commissioning Utility rate adjustments Building envelope windows, roofs, doors Payback of 13 + yrs Payback of 7-12 yrs Payback of 0 6 yrs A Project Includes Bundling these Measures Larger Capital Improvements, Lower Savings or Return Items Major mechanical replacements (ERV, AHUs, boilers) Capital improvement item priority list Central plant and/or heating & cooling system replacements Renewable technology Medium Capital Cost, Medium Return/ Payback Items Wastewater and water process optimization & reductions Safety & environmental controls Water conservation & irrigation Lower Capital Cost, High Return/Short payback Items Interior and exterior lighting, controls, HVAC VAV/VFD retrofits On-site Energy Manager, retro-commissioning Combined Projects EPC Program Term - 10 to 20 yrs. 1

2 Financing & Funding Your Project Lease-purchase finance agreement where savings meet annual payments Other financing sources (bonds, COPs) Internal borrowing Supplemental funds for cash infusion to expand the project funding and scope (utility rebates, grants, in-house funds, etc.) Blend lease-purchase financing with supplemental funds ESCO facilitates financing but does not profit from financing 7 ESC / CEO Collaboration CEO membership in ESC (CO chapter and National) CEO officer posts in ESC (Co-Chair; Outreach Committee; Water Subcommittee). Shared participation in EPC contract development and updating ESC meetings as a forum for ongoing coordination Questions? Mirka DellaCava EPC Senior Program Manager Colorado Energy Office mirka.dellacava@state.co.us 2

3 6/12/18 Challenges Facing Municipal Facilities Aging facilities and infrastructure High energy and water use Providing safe, efficient and sustainable facilities for workforce and the citizens Limited funding available for operations, maintenance and capital improvements Increasing deferred maintenance and capital renewal needs Energy Performance Contrac5ng City of Lakewood Demonstrating good stewards of sustainably, the environment and tax payer funds Why Energy Performance Contracting? Sustainability Plan Energy Performance Contracting (EPC) is a turn-key solution Planned improvements vs emergency repairs Energy Services Company (ESCO) is a longterm partner to assist with future maintenance and operational concerns Facilitates procurement and use of subcontractors Utility savings are guaranteed Partnership and assistance from Colorado Energy Office Energy Performance Contracting City of Lakewood Sustainability Plan Objec1ves Supported: Implement strategies that achieve greenhouse gas emission reduc5ons Enhance building energy and water efficiency Promote green building retrofits that use sustainable materials and enhance occupant well- being Energy, Water and Emission Savings Improvements to 7 City Facilities; Carmody Recreation Center Green Mountain Recreation Center Public Safety Center Whitlock Recreation Center Lakewood Civic Center Campus Clements Community Center Lakewood Link Recreation Center All facilities approx 476,000sq ft $3.1M in work accomplished Project Highlights Include: LED Lighting retrofits & controls Building envelop improvements Water conservation measures Pool Air Circulation More efficiency Pool Boilers Electricity Savings (kwh/year) Gas Savings (Therms/year) Water Savings (Gal/year) GHG SAVINGS (Tons CO2/ year) HVAC IMPROVEMENTS 461,596 13,609 n/a 343 LED LIGHTING 663,816 (1,341)* n/a 382 WATER CONSERVATION n/a 2,457 1,338, POOL AIR CIRCULATION (32,732)** 30,450 51, POOL BOILERS (9,962)** 6,009 n/a 26 TOTAL SAVINGS 1,082,718 51,211 1,389, * LED lights give off less heat resul5ng in a slight increase in hea5ng demand in cold months ** New equipment will use electricity instead of natural gas resul5ng in lower energy use &emissions 1

4 Thank You Questions? Wally Piccone Projects and Maintenance Manager City of Lakewood

5 Performance Contrac-ng - Fountain Ques-on: How can we upgrade our facili7es without any new financial resources?? Answer: Energy Performance Contrac7ng... Fountain s Story Few resources for Facili7es, but aging infrastructure. Team CM, Deputy CM, Facili7es Manager, City AKorney, Finance Director Feasibility Assessment (free) by Johnson Controls, iden7fied opportuni7es: HVAC updates Updated controls Efficiency ligh7ng needs Energy Efficient Windows BeKer insula7on Roofing issues New Water Meters Street Light LED upgrades Sco$ Trainor, CML Conference, June 21, Updated Assessment (Siemens) 2016 MOU with Colorado Energy Office. Financial Commitment begins here 2017 Technical Energy Audit (Siemens) set price based on square footage = $41,000 for Fountain. If feasible project iden7fied, costs are incorporated into project. If no project iden7fied, fee waived. $1 million project iden7fied Energy Performance Contract Executed Project work completed Measurement and verifica7on period Important Minu-ae Financing Mechanism COP s; lease purchase; internal financing, etc. Use Financial advisor familiar with perf. contrac7ng. Colorado Energy Office These experts will hold your hand and ensure savings will pay for project. Selec7on of Energy Service Company (ESCO) RFQ? Savings from both energy AND opera7onal savings means you need to commit to opera7onal changes. You may have the skill to do improvements in house, but do you have the organiza7onal capacity? 1