energy performance contract – 4 buildings on hazen drive board/meetings/2015...annual allocation...
TRANSCRIPT
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PRESENTATION TO THE ENERGY EFFICIENCY &
SUSTAINABLE ENERGY BOARD M A R C H 2 0 , 2 0 1 5
D E P A R T M E N T O F A D M I N I S T R A T I V E S E R V I C E S K A R E N R A N T A M A K I , S T A T E E N E R G Y M A N A G E R
M I C H A E L C O N N O R , D E P U T Y D I R E C T O R
Energy Performance Contract – 4 Buildings on Hazen Drive
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Why Performance Contracting?
The State wants to “Lead by Example” in energy efficiency
Capital funds for energy projects are “trickling” in at best
Allows for deep retrofits, improves the quality of our buildings, and allows for new technologies and equipment
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Law RSA 21-I:19-d Energy Performance Contracting
Allows agencies and municipalities to enter into
EPCs (Energy Performance Contracts) Requires RFP (Request for Proposals) process Provides criteria for selecting ESCO (Energy Services
Company) Limits contracts to 20 years Annual allocation dependency clause Requires inclusion of all energy measures that fall
within 20-year payback window
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Performance Contract Basics
Represents an alternative financing mechanism to capital investment
Accelerates investment in cost effective energy conservation projects
Is a long-term partnership between the state and an ESCO
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How it Works
ESCO’s provide energy solutions. Lighting & Controls
Boiler Plants
BMS Systems
HVAC Building Envelope
Equipment
Electric Distribution
Energy Conservation
Measures
Energy $$ Savings Pay
Back the Investment Over a 5-20 Year Period
ESCO’s Design & Implement
Energy Savings Projects
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Buildings and Energy Types
Morton Building (DOT) Division of Motor
Vehicles (Safety) 27/29 Hazen (DHHS,
DES, DoIT, labs) 33 Hazen (DOS)
Looked at reductions in: Natural Gas Electricity
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Goals and Scoring Criteria
Maximize fossil fuel savings within context of RSA (meets 20 year payback)
Encourage ESCOs to be creative while adhering to basic minimum criteria
Allowed State to compare proposals objectively
Lighting Systems and Controls
BMS HVAC Motors and VFDs Envelope Water Boiler Plants DHW Renewables
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Scoring
50% - Reducing FF use 5% - Presentation and responsiveness to RFP 15% - Qualifications, experience, and resources 20% - Technical approach 10% - Management approach
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Timeline
2012 and Prior – Discussed at IEEC Meetings
September 2012 – Stakeholders Meeting
January 2013 – Released RFP
April 2013 – Received Proposals
Summer 2013 Selected Vendor
December 2013 – G&C Approval for Audit Phase
May 2014 – Audit Report Received
Summer/Fall 2014 – Contract Negotiations
Winter 2014/15 – Financing RFP
February 2015 – G&C Approval for Construction
18 months from now until expected completion
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ConEdison Solutions
Selected to conduct EPC from 7 proposals received Subsidiary of Consolidated Edison, Inc. Started in 1993 Local office in Burlington, MA Ken Nathanson, Director of National Accounts John Johnson, Head Engineer Many other ConEdison employees and
subcontractors will be working on project
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Measures
Morton Building Lighting Retrofits Upgrade Chiller Piping Improve Building Controls Improve Building
Envelope Low-flow Restroom
Retrofits New Electrical
Transformers Power Factor Correction PUC Grant-funded 82kW
Solar PV Array
DMV Lighting Retrofits New Boiler New Building Controls Improve Existing Controls VFDs Improve Building
Envelope Low-flow Restroom
Retrofits Power Factor Correction
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Measures (cont.)
27/29 Hazen Lighting Retrofits Chiller and HVAC
Replacement Improve Building Controls Improve Building
Envelope Low-flow Restroom
Retrofits New Electrical
Transformers
27/29 Hazen Steam Traps VFDs Plug-load Controls Power Factor Correction New Ventless Lab Hoods Air Rebalance in Labs Biomass Boiler
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Measures (cont.)
Department of Safety Lighting Retrofits New Boiler Improve Building Controls Improve Building
Envelope Low-flow Restroom
Retrofits New Electrical
Transformers New Ventless Lab Hoods Power Factor Correction
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Highlights
Current Utility Costs
Avg. Cost per
square foot
Total Project Cost*
Estimated Savings
Payback (years)*
Energy Cost
Reduction
Fossil Fuel
Reduction
$2.5 million
$4.10 $12.7 million
$949,508 annually
13.4 36% 71%
*does not include finance costs
3rd Party Financing - Banc of America Public Capital Corp Interest Rate – 2.5955% Project Payback w/Interest – 16.95 years Contract Term – 17 annual payments beginning when construction period ends
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Can We Reduce Fossil Fuel Use by Over 70%?
Natural Gas (100% FF), Electricity (43% FF) Annual energy use ~110,000,000 kBtu (about
50/50) ~75% is for 27/29 Hazen 27/29 Hazen will eliminate nearly all of its NG usage
in favor of biomass ~82 kW in solar Many EE measures reduce electricity and natural gas
usage (and thus FF)
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The Numbers
Morton Building
Project Cost $1,043,878*
Annual Energy Savings $101,376
Fossil Fuel Savings (kBtu) 3,227,375
% Energy Reduction 33%
% Fossil Fuel Reduction 44%
*Cost does not include $509,517 in rebates/grants
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The Numbers
DMV
Project Cost $469,069
Annual Energy Savings $32,187
Fossil Fuel Savings (kBtu) 1,010,293
% Energy Reduction 29%
% Fossil Fuel Reduction 35%
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The Numbers
27 Hazen
Project Cost $729,856
Annual Energy Savings $34,324
Fossil Fuel Savings (kBtu) 898,316
% Energy Reduction 33%**
% Fossil Fuel Reduction 80%**
**Percent reductions calculated on 27/29 Hazen as a whole
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The Numbers
29 Hazen (Core)
Project Cost $1,554,143*
Annual Energy Savings $129,433
Fossil Fuel Savings (kBtu) 1,555,542
% Energy Reduction 33%**
% Fossil Fuel Reduction 80%**
*Cost does not include $174,890 in rebates/grants **Percent reductions calculated on 27/29 Hazen as a whole
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The Numbers
29 Hazen (Labs)
Project Cost $8,280,826
Annual Energy Savings $590,279
Fossil Fuel Savings (kBtu) 48,489,494
% Energy Reduction 33%**
% Fossil Fuel Reduction 80%**
**Percent reductions calculated on 27/29 Hazen as a whole
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The Numbers
Safety
Project Cost $613,509*
Annual Energy Savings $61,908
Fossil Fuel Savings (kBtu) 1,635,834
% Energy Reduction 20%
% Fossil Fuel Reduction 24%
*Cost does not include $287,584 in rebates/grants
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Lessons Learned
Engage champions – define roles at the beginning of project and include $$ in project for additional help
Be specific – in order to compare proposals, we learned the more that can be specified (energy rates, baseline energy data, finance calcs, etc.) the more consistent the proposals
Work ahead when possible – in order to shorten the timeline, draft contracts, for example, can be worked on while audit is taking place
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Lessons Learned (cont.)
Cooperation - This project has been successful due to the contributions of many team members. Dozens of state employees were needed to make this happen: RFP and contract writers and reviewers Facilities staff to guide vendors through buildings Selection team to review proposals and interview ESCOs Treasury staff to provide funding mechanism Cooperative tenants
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What’s Next?
Cannon project is moving forward with EPC and taking audit contract to G&C
DAS is working internally on vetting other projects and revising RFP
Many agencies in the queue, interested in future EPCs
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Questions?
?