Transcript www.accm.com

Optimizing Greening Schools for a Carbon
Constrained Future
Presented to:
The Association of California Construction
Managers
Presented by:
Stephanie R. Williams, President
Transportation & Renewable Energy Dialogue
May 20, 2009
Comments by Barrack Obama
November 2, 2008
• Let me sort of describe my overall policy. What I've said is that we would put a cap
and trade system in place that is as aggressive, if not more aggressive, than anybody
else's out there.
• I was the first to call for a 100% auction on the cap and trade system, which means
that every unit of carbon or greenhouse gases emitted would be charged to the
polluter.
•That will create a market in which whatever technologies are out there that are being
presented, whatever power plants that are being built, that they would have to meet
the rigors of that market and the ratcheted down caps that are being placed, imposed
every year.
• So if somebody wants to build a coal-powered plant, they can; it's just that it will
bankrupt them because they're going to be charged a huge sum for all that
greenhouse gas that's being emitted.
•That will also generate billions of dollars that we can invest in solar, wind, biodiesel
and other alternative energy approaches.
Plain English Federal Program
 Aggressive Cap & Trade System
 GHG emissions charged to polluter
 Technologies would have to meet:
 Rigors of the market
 Ratcheted down caps imposed annually
 The amount of allowances (permission/permit to
pollute a tonne) issued will decrease every year.
 100% auction will generate billions of dollars that
we can invest in solar, wind, geothermal and
biodiesel
 Revenue is produced through an auction where there
are more polluters than allowances/permits available
AB 32 – California Leading
• September 27, 2006 AB 32 signed by Governor
- Global Warming Solutions Act of 2006
• Law requires reduction of GHG emissions to 1990 levels by
2020 – a 15% reduction.
• Required CARB to develop a Scoping Plan
– ADOPTED 12/11/08
• Measures in the Scoping Plan will be in place by 2012
• By 2012 utilities and refineries under pressure to transform
their fuel stock from fossil fuels/coal to renewable products.
• Energy Efficiency cornerstone of program
– Buildings and energy efficient technology
• Renewable energy to replace oil and coal
– Solar, wind
– Bio-fuels
Scoping Plan- Key Elements
Achieving 1990 level CO2 Emissions by 2020
 Expanding and strengthening existing energy
efficiency programs as well as building and
appliance standards
 Achieving a statewide 33% renewable fuel mix
 Develop cap/trade that links with western states
 Establish regional targets for transportation
related GHG emissions and pursue policies and
incentives to achieve targets
 Create targeted fees to fund the program
Buildings & Energy Efficiency
Opportunity for Schools
• Avoid significant electricity/natural gas
increases
– 33% RPS Standard and allowance assessments
• Zero Net Energy for buildings (2015)
• Energy Efficiency measures first
– Retrofit lighting, HVAC, refrigeration equipment
• Solar and renewable treatments
• Establish 2015 load for net metering
• Feed-in Tariff SB 32
• Protect untapped assets
– Roof space, multiple meters, carbon credits & REC
What is an Energy Performance
Contract?
• An agreement between an energy services
company (ESCO) and a building owner.
• ESCO engineers provide facility improvements
and guarantee a lower utility rate.
• Purchase Power Agreement
– No up-front cost to the owner
• Lease the asset for a period of time
– Buy out provisions
• Retain federal tax credits and utility rebates
• Bank Renewable Energy Credits and Carbon
Credits
PPA Contract Period
• Typically 6-20 years
– Retire federal tax credits
– Bank RECs and potential carbon credits
• Contracted reduction in utility bills pay for the
equipment, installation of equipment and
access to the financing
• Building owner retains post contract saving
– Solar or wind installation provides immediate and
very low utility costs
– Maintenance falls on building post contract
Schools & Energy Efficiency
The 80/20 Rule
• Cost Effective Retrofits or Replacements
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Lighting
Refrigeration and chillers
Heating and Cooling Systems
Boilers
• Less Cost Effective Measures
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Energy Management Systems
Back up generators
Motors
On-site generation/co-generation
• Process to produce steam and electric power simultaneously
Are your needs their needs?
• Appetite for a 30% tax credit
• Industrial facilities under a declining “Cap”
– Need carbon credits and offsets
• Utilities and refineries
• Utilities facing 33% renewable standard portfolio
– Need Renewable Energy Credits
• Feed in Tariff (FIT) moving through the
legislature
– SB 32 (McLeod)
– Paid Fair Market Value for renewable energy going
into the state electrical grid
• Electricity demand of school - net metering
– Appetite for RECs and carbon credits
Power Purchase Agreement
• Effective mechanism for funding
• Contract language determines opportunity
– Environmental attributes
• Carbon credits
• Early action for voluntary reductions
• Energy Efficiency
– Length of contract
• Buy out provisions
• Who owns the potential revenue from the roof
– Does PPA prohibit revenue stream from FIT?
Unintended Consequences
• Environmental measures cause increase in kW
usage - increase utility bills
• Energy Efficiency measures left behind to
chase a larger footprint for carbon for PPA
• Potential revenue stream contractually
delegated to a third party
• Rate reduction guarantee in later years to small
and creates revenue stream for 3rd party
– Own or lease?
• Who owns the environmental attributes?