Self-Directed Energy ContractingSaving Your Buildings and Your Money

York ( PA ) Housing Authority’s Experiences One Agency’s story of pursuing Energy

Improvements

How to Partner, Plan, and Persevere

What to consider and what to avoid

Energy Performance Contracts

Authorized by Congress and specified in HUD policy Energy Policy Act 1992

Permitting private financing of public property improvements for energy and water conservation

PIH-2014-18 (HA) Provides Rate

Reduction Incentive (RRI)

The Process

Arriving at the Decision to procure services Overview: HUD reviews and the approval process (the

audit) Identifying key staff to administer and “own” the project Procuring consultant services

Working with consultants to review water, gas, and electric bills

Selecting a General Contractor to create a Guaranteed Maximum Price (the hard work with proposing subs)

Working with architects and engineers to document equipment in place

Planning for Commissioning Re-Procuring Gas and Electricity

The Process

Working with both teams to define scope of audit with the preferred replacement equipment

Submittal of the investment-grade audit to HUD energy office for review and approval

Defining the financial scope and selecting the bank Completing Section 30 Property Compliance (HUD) Procuring the contractor for construction Re-Procuring utilities (bids or partnering)

Rate Reduction Incentives

Potential Challenges

Finding a general contractor capable of working within financing limitations and improvement scope

Ensuring adequate professional architectural and engineering support throughout construction process

Having adequate procedures in place for allowances and change orders

Potential Challenges

Creating incentives for general contractor to perform on time and on budget

Selecting the best “fitting” material solutions to the properties

The potential pitfalls of change orders and qualities of replacement equipment.

Payoffs

Significant capital improvements Significant energy savings Improved tenant comforts Potential to share some resulting savings with federal

government Potential to attain utility rebates and other

incentives Make apartments more climate-comfortable

Payoffs

Potential to build new professional partnerships Potential to attract new bidders in future

Potential to afford state-of-the-art technologies in retrofits Geothermal, solar-thermal and photovoltaic, co-generation

Added savings through documented unit price decreases

Alternatives

Work directly with experienced (BIG or little) energy-saving company

Make energy-saving property improvements incrementally through capital funding

Pursue rebate qualified improvements only with alternative funding (lines of credit)

Pursue HUD incentive programs like RAD Work with utilities directly (localized cash incentive

programs) Pursue other federal and state grant programs

Project Examples

The Fairmont Broad Park Manor Jefferson Community Center Village Court

The Fairmont

75 One Bedroom Apartments

Located in New Cumberland

Note solar collectors on south facade

Broad Park Manor – York City

281 efficiency and 1 bedroom apartments

Water restrictors, led interior and exterior replacements

Elimination of original trash incinerators

Jefferson Community Center

The Hub of our community services

Heating and lighting upgrades

Village Court