Transcript Slide 1
Utilizing Performance Contracting to Meet the Presidents Climate Commitment Second Nature TAC Energy Solutions July 8, 2008 We deliver enduring performance.
Today’s Agenda
• Introduction to the Clinton Climate Initiative’s available resources • ACUPCC Process and Performance Contracting
We deliver enduring performance.
Andrea Putman, Second Nature Co-Manager of the ACUPCC/CCI Partnership We deliver enduring performance.
We deliver enduring performance.
Goal
Exponentially increase the number of large scale energy saving retrofit projects and reduce greenhouse gas emissions on campuses with no net increase in annual capital or operating expenses.
We deliver enduring performance.
Opportunity
• Buildings account for ~40% of global GHG emissions, up to 70% in big cities and 90% for college campuses
Lifecycle Cost
• 75% of costs of buildings occur after construction is complete
Efficiency Pays We deliver enduring performance.
CCI’s Energy Efficient Building Retrofit Program Energy Services Companies (ESCOs)
Commitment • • • • • Enter new markets on favorable terms Participate in EPC projects in partner cities Deliver sustainable projects with maximum savings with performance guarantees Develop mutually acceptable Terms & Conditions of Performance Contracts Guaranteed Maximum Price; open-book pricing; annual as well as total project savings guarantees; gain sharing (or “cost reduction incentive”) Work with CCI to reduce program costs
We deliver enduring performance.
Global Financial Institutions
Commitment • • • • Provide reasonable & efficient access to capital Design financial solutions for EEBRP participants Lend capital for retrofits based on savings guarantees US $1 billion in capital each for the EE market
We deliver enduring performance.
CCI Purchasing Assistance
• • 25 supplier agreements negotiated to date Reductions range 25-70% for more “niche,” high efficiency Chiller Technology • • Carrier Optimum Energy Lighting • • • • Acuity Cooper GE Lighting Lemnis Roofing/ Insulation • BASF Polyurethane Foam Enterprises • Tremco Windows • • 3M Bekaert
We deliver enduring performance.
Task Force
APPA Arizona State University Catalyst Financial Group, Inc.
City Colleges of Chicago Clinton Climate Initiative Donahue Associates, Inc.
EcoAmerica Energy Ventures International Hannon and Armstrong Holland & Knight Los Angeles Community College District National Association of College and University Business Officers National Association of Educational Procurement National Association of Energy Service Companies Oberlin College Rocky Mountain Institute Second Nature Syracuse University Townsend Engineering U.S. Environmental Protection Agency, Energy Star U.S. Green Building Council
We deliver enduring performance.
For Further Information
Jonathan Kevles, Clinton Climate Initiative Building Retrofit Program team member (857) 294-8163 [email protected]
Jonathan Magaziner, Clinton Climate Initiative Building Retrofit Program team member [email protected]
Andrea Putman, Second Nature Director of Sustainability Financing (703) 528-8579 [email protected]
http://www.presidentsclimatecommitment.org/html/solutions_cci.htm
We deliver enduring performance.
Today’s Agenda
• • Introduction to the Clinton Climate Initiative ACUPCC Process and Performance Contracting
We deliver enduring performance.
ACUPCC Process / Performance Contracting
• • • • Establish a baseline Consider reduction strategies Implement strategies Measure results against baselines
We deliver enduring performance.
Performance Contracting Helps Meet ACUPCC Requirements
1. Understanding baselines and their significance in ongoing measurement of progress 2. Understanding the interaction of potential mitigation strategies in order to determine their real impact 3. Providing ongoing reporting to meet established requirements 4. Providing a funding stream to implement mitigation strategies
We deliver enduring performance.
Establishing Your Carbon Footprint (Baseline)
• • Guidelines from ACUPCC Implementation Guide • • Encourages utilization of a standard protocol Suggests use of “Campus Calculator” from Clean Air-Cool Planet Ongoing reporting requirement to show progress
We deliver enduring performance.
Use of Campus Calculator
Inputs • • Utility data provides the majority of the CO 2 output Scope 1 emissions – central plant – domestic HW heating Scope 2 emissions – off site generation – largely electricity but purchased steam Campus data regarding travel and fleet Scope 1 and 3 emissions – transportation – This section is the most difficult to pin down
We deliver enduring performance.
Sample Output from Campus Carbon Calculator
20,000,000 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 2003 2005 2007 2009 2011
Year
2013 2015 2017 2019 Solid Waste Transportation On-campus Stationary Purchased Steam and Chilled w ater Purchased Electricity
We deliver enduring performance.
Impacts on the Baseline
• • • Weather Student Population Campus Growth or Decline
We deliver enduring performance.
Sample Output from Campus Carbon Calculator
20,000,000 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 2003 2005 2007 2009 2011
Year
2013 2015 2017 2019 Solid Waste Transportation On-campus Stationary Purchased Steam and Chilled w ater Purchased Electricity
We deliver enduring performance.
Sample Output from Campus Carbon Calculator
T ot al Emissions (Met ric T ons eCO2) 70,000 60,000 50,000 40,000 30,000 20,000 10,000 1996 1999 2002 2005 2008 Year 2011 2014 2017 2020
We deliver enduring performance.
Points to Consider when Establishing a Baseline
1. For scope 1 and 2 emissions, enter as much historical utility data as possible 2. Include information on campus dynamics in your reporting process 3. Work toward benchmark data, eg. MMBtu/sq. ft., number CO 2 /student, or /square footage 4. Think trajectory, not snap shots in time 5. Always use actual data where it exists and make educated estimates where it does not
We deliver enduring performance.
What’s Next
• • • Once you know where you are, you will know where you aren’t!
Clean Air-Cool Planet’s upcoming version (some “what if” tools) Controlling your trajectory
We deliver enduring performance.
Mitigation Option Evaluation
1. Potential to avoid or reduce CHG emissions 2. Flexibility as a step towards future emissions reduction measures 3. Return on investment or financial impact 4. Potential to create positive and/or negative social and environmental side-effects 5. Relationship to other potential measures and opportunities for synergistic measures 6. Potential to be scaled upward if successful 7. Potential to involve students and faculty
We deliver enduring performance.
How Can You Know You Will Get What You Expect?
Premise – if you reduce energy consumption you reduce CO 2 emissions 1. Is there a way to guarantee energy reduction?
2. Why is it important to be assured that a mitigation strategy will work?
We deliver enduring performance.
How Can You Know You Will Get What You Expect?
Faulty Assumptions Example Lighting Calculation
Variable
Wattage Before Wattage After Power Saved per Fixture = # of Fixtures # of Burn Hours per Year % of Lamps Not Burnt Out
Total kWh Saved
x x x
= We deliver enduring performance.
How Can You Know You Will Get What You Expect?
Faulty Assumptions Example Lighting Calculation
Variable
Wattage Before Wattage After Power Saved per Fixture =
Correct
137 Watts 80 Watts
57 Watts
# of Fixtures # of Burn Hours per Year % of Lamps Not Burnt Out x x x 1000 2500 95%
Total kWh Saved = 135,375 kWh We deliver enduring performance.
How Can You Know You Will Get What You Expect?
Faulty Assumptions
225% Overstated
Example Lighting Calculation
Variable Correct Incorrect
Wattage Before Wattage After Power Saved per Fixture = 137 Watts 80 Watts
57 Watts
192 Watts 82 Watts
110 Watts
# of Fixtures # of Burn Hours per Year % of Lamps Not Burnt Out x x x 1000 2500 95% 1000 4000 N/A
Total kWh Saved = 135,375 kWh 440,000 kWh We deliver enduring performance.
Sample Output from Campus Carbon Calculator
20,000,000 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 2003 2005 2007 2009 2011
Year
2013 2015 2017 2019 Solid Waste Transportation On-campus Stationary Purchased Steam and Chilled w ater Purchased Electricity
We deliver enduring performance.
Baselines and Climate Action Plans
1. Use real data where possible 2. Use the baseline as a guide to attacking the large sources of CO 2 emissions 3. Beware of CO 2 4. Real CO 2 reduction based upon assumptions emissions come only from real energy savings
We deliver enduring performance.
Meeting Program Deadline Requirements
Reporting Frequency • • Within 2 months of signature Create “institutional structures” to guide development and implementation of Climate Action Plan (CAP) – Broad based among campus community – High level participants empowered to enact plans Identify 2 tangible actions – Must be implemented before end of year 2 Within 1 year of signature Report results of GHG emissions inventories Must identify calculator used and source of emissions coefficients
We deliver enduring performance.
Meeting Program Deadline Requirements
Reporting Frequency • Within 2 years of signature Implemented at least 2 tangible actions Updated GHG emissions inventory Submit CAP – – Includes target date for achieving climate neutrality Includes interim milestones prior to target date
We deliver enduring performance.
Meeting Program Deadline Requirements
Elements of Climate Action Plan (CAP) • • • • Details of institution plans to achieve climate neutrality Plans to make climate neutrality and sustainability part of curriculum and to share knowledge within community Mechanisms for tracking progress on goals and actions Recommendation to incorporate CAP into comprehensive sustainability plan
We deliver enduring performance.
Meeting Program Deadline Requirements
Format of CAP • • • • • • Introduction Background information Campus Emissions Include visual representations of emissions trajectory Mitigation Strategies Description of action plan to mitigate each emission source Outreach efforts Includes educational, research, and community Financing Tracking Progress
We deliver enduring performance.
Meeting Program Deadline Requirements
Reporting Frequency • Within 3 years of signature Progress in implementing CAP Updated GHG emissions inventory • Within 4 years of signature Updated GHG emissions inventory Encouraged to submit narrative progress report of CAP annually but requirement is every other year
We deliver enduring performance.
Developing Meaningful Reports We deliver enduring performance.
Developing Meaningful Reports
Customize to meet your unique environment • • • You know what is important to your campus and community Centralized reporting system to track Actions taken Outreach efforts Evaluation of cost and benefits Quantitative tracking Prove results – GHG, energy efficiency, sustainability Identify ROI for each action item Visibly show campus, community, and potential donors
We deliver enduring performance.
Evaluating Funding Options
Funding Options available include: • • • • • Cash on Hand Capital Campaign Financing Energy Performance Contract Combination of Options Above
We deliver enduring performance.
Evaluating Funding Options
Considerations • What is the financial impact of your investment?
ROI?
Establish/Retain campus identity?
Public Relations/Press?
% of goal achieved towards carbon neutrality?
Reduction in deferred maintenance?
Combination of above
We deliver enduring performance.
Evaluating Funding Options
Benefits of Performance Contracting • • • • • • • • • Keep more of your available cash Partial funding stream with guarantee of performance Whole building approach, not piecemeal Audit deliverables can be helpful in a capital campaign Achieve larger % of GHG emissions reduction and get to ultimate objective more quickly Reduction in deferred maintenance Gain much needed improvements in infrastructure Partnership approach Collaboration with entire campus community Students/staff can work with audit team to develop appropriate solutions for your campus
We deliver enduring performance.
Company Overview
Est. 1836 $25.1B Revenue - 2007 Offices in 102 countries
Building Automation
$2B Sales - 2007
Electrical Distribution Products Electrical Distribution Products Industrial Automation Critical Power & Cooling Services
ENERGY SOLUTIONS
350+ projects nationwide Offices in 25 states
SYSTEMS INTEGRATION
17 branch offices focus on building automat. & security Video Security Systems and Support Equipment
STRATEGIC ACCOUNTS
Telecom, Data Centers, Retail, Federal
PARTNERS
300 partner offices throughout the US
We deliver enduring performance.
TAC Energy Solutions
TAC – Higher Education Solutions • • • We have been working with higher education for 15 years.
We help campuses move forward in a sustainable, environmentally friendly, and energy efficient manner. We are using Clean Air Cool Planet’s Campus Calculator as part of our Audit process.
Results to date: – $47,000,000 in guaranteed utility savings – – 6,000,000 tons of CO 2 removed Equivalent of 64,000 cars off the road for a year or 88,000 acres of trees planted
We deliver enduring performance.
Questions/Comments?
We deliver enduring performance.
Contacts
TAC Energy Solutions Mike Mumper – NE/Midwest 717-232-8182 x233 [email protected]
Barry Wilhelm – Mid Atlantic/South 804-330-5660 x110 [email protected]
Jared McCurley – West of Mississippi 312-286-4662 [email protected]
www.tac.com/am/cci
We deliver enduring performance.