Energy Conservation and Finances Using NYPA Performance Contracts. SUNY Sustainability Conference September 19-20, 2011

Transcription

1 Energy Conservation and Finances Using NYPA Performance Contracts SUNY Sustainability Conference September 19-20, 2011

2 By The Numbers Acres Buildings Square Feet M + Student FTE Faculty/Staff Annual Utilities.. $5M + Energy Conservation..... Priceless

3 Multi-Faceted Energy Conservation Program Plug Load Reduction Alternate Fuel Vehicles EMS Expansion No Idle Geothermal and Solar Energy Account (Rent, Rebates, etc.) Public Relations LEED Energy Star Facilities Improvements Temperature Guidelines Building Scheduling and Shutdowns Demand Management *Major Improvements with NYPA Performance Contracting*

4 KNOW: THE COLLEGE AT BROCKPORT Our Challenges Mandated Energy Conservation Good Business Decision Green Public Opinion NEED: New Equipment New Technology Project Execution NOT: Enough $$$ Enough Staff Enough Time HOW?

5 Performance Contracts Basic Concepts Future energy cost avoidance pays for improvements made now. Pay the utility company monthly for energy consumption or pay back monthly for energy conserving improvements. Concept Example: Installation of $100K of variable speed drives saves $10K per year of energy (and you have new equipment). After ten years, pocket the cost avoidance. Add variations to simple payback building model.

6 Capital Funds THE COLLEGE AT BROCKPORT Customer Executed Projects etc. Pilot Projects Extended Warranty Emergency Projects Early Payments Variable Amortization Mixture of Funds Down Payments High & Low Fruit Simple Payback

7 Involve the Business Officer Call NYPA Getting Started No Procurement or Advanced $$$ (unlike an ESCO) Study, Analysis and Recommendation Start to Finish Progressive/Flexible Procedures with Great History of Success Flexible Funding, Scope and Procurement Term Consultants with Selected Contractors No $ Commitment Until After Bid Single Project, Multi-Task Project or Customer Installed

8 Develop Target Opportunities Obvious Energy Conservation Items Maintenance and Repair Needs Funded Projects or to Be Funded Projects Talk to Maintenance Team Campus Wide Facilities Improvements Financial Payback/Funding Strategy

9 Consider Funding Options 100% Financed MR&R State, Residential Life or Capital Funds Future Funds Totally or Partially Financed Over Time NYSERDA and Utility Company Incentives Down Payments Leverage SUCF and DASNY Capital Mixture of Funds Any Kind

10 Feasibility & Financial Analysis Used to Establish Program (Multiple Projects) Business Decision and Investment Strategy Conservative Estimates Includes: OH, Contingency, Interest Excludes: Grants e.g. POCR NYSERDA Maintenance Savings Lower Interest (Calculate at 4%) Energy Cost Increases Early/Variable Payments Brockport Grants/Incentives $950K Reinvested

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12 Sample Brockport Capital Projects Boiler Replacements AC Rooftop Unit Replacements Chiller Replacements HVAC Upgrades Add AC Chilled Water Loop Window Replacements Roofs Insulated, Reflective Labs Heat Recovery Systems Greenhouse Replacement Dining Hall Renovations $8.5M of Capital Leveraged Into $16M of 66 Work Items and Infrastructure Improvements Yielded $725K per Year Energy Cost Avoidance

13 Unique Twists At Brockport Number of Work Items per Project Pilot Starts CIC Modification Emergency Projects Early Billing to Limit Interest Change Down Payment Funding Strategies Mix of Funding Types Multi-Year Maintenance for Warranty Guarantee Capital Projects Are Used to Leverage

14 Special Events Recreation Center (SERC)

15 SERC Creative Funding SUCF Capital Strategic Initiative (2) Capital Funds for Critical Maintenance Work Connector Ice Rink Access Lot U Reconstruction Campus Funds for Equipment Separate Capital Project for Landfill Remediation/Parking NYPA Funding for Energy Conservation Measures $44 M

16 NYPA & The College at Brockport s SERC Opted for the Customer Implemented Finance Only Option NYPA was Involved as an Advisor During Design Already Designing LEED Silver/Gold Ensured Conservation Measures were not Overlooked or Cost-Engineered out of the Design Helped Quantify Justification for Conservation Measures NYPA funded ~5% Relating to Energy Conservation (Ice Storage, Lighting, Building Envelope, HVAC, EMS) NYPA and Brockport Formal Agreement Guaranteed Funding to SUCF Prior to Construction

17 NYPA & The College at Brockport s SERC College Can Repay NYPA Anytime During or After Construction Without Penalty Partial or Complete Lump-Sum Payments Are Acceptable Typically Repayment is by Monthly Installments over 10 Years, Beginning After Project Completion Repayment Can Be Extended up to 20 Years Terms Can Be Modified Throughout Repayment Period

18 NYPA Funding Improved Envelope Thermal Performance item overall cost funding Improved Insulation Hp metal panel Hp Curtain wall White Roof and Add. Insulation r30+ Ice Storage System $15,250 $476,700 $635,550 $1,400,000 $1,029, % 20% 20% 27% 100%

19 Sustainable Strategies Optimize Energy Performance Thermal Ice Storage provides environmental, energy and cost saving benefits to the end user by shifting power demand to off-peak hours. In addition, Thermal Ice Storage: Reduces carbon emissions by eliminating the requirement of additional power plants. Reduces connected kw of associated equipment in an air conditioning system by supplying colder than normal chilled water temperatures (1 C/34 F) to the building. Lowers the installed and operating cost of the entire air conditioning system Contributes to LEED credits under Energy & Atmosphere and Innovation in Design by demonstrating energy cost savings over baseline building energy costs established by ASHRAE Recently received approval by Building Green to be included in their GreenSpec Directory-the comprehensive guide to environmentally responsible building products.

20 NYPA Funding Energy Savings - Lighting item overall cost funding T-5 Lamped $63,550 Luminaries w/electronic Ballasts (15 30% Energy Savings vs. T-8s) 20% Occupancy Sensors $3, %

21 NYPA Funding Energy Savings Pumps, Water Heaters item overall cost funding Variable Frequency Speed Pumps (50% Reduction) Domestic hw Heaters (Fully Condensing 95% Efficient) $25,200 $28, % 100%

22 NYPA Funding Energy Savings Heat Recovery, VFDs, Screw Chillers item overall cost funding Heat Recovery Units Variable Frequency Drives High Efficiency Screw Chillers $94,000 $140,000 $322, % 60% 14%

23 NYPA Funding Energy Savings Controls item overall cost funding Energy Management System $415, % System Monitors and Adjusts Temperature Set Points, Fan and Pump Speeds, Reducing Consumption of Utilities Automatically

24 NYPA Funding Total NYPA Funding = $2,357,860 Dollars are based on construction estimate plus contingency, escalation and general conditions.

25 NYPA is a Funding Source Summary NYPA Can Also Study, Design and Execute Creative Funding Options and Procedures Exist Use with Simple or Complex Projects Energy Conservation and Improved Facilities Are The Result