ATEM MOD 11: PROJECT DELIVERY , FINANCING & FUNDING A c c r e d - - PowerPoint PPT Presentation

ATEM MOD 11: PROJECT DELIVERY , FINANCING & FUNDING

A c c r e d i t e d T e x a s E n e r g y M a n a g e r

Outline

❯Project Delivery Options ❯Financing Options ❯Texas LoanSTAR Program

A c c re d i t e d Tex a s E n e rg y M a n a ge r

Project Delivery Options

❯Project Delivery Options

• Design-Bid
• Design-Build
• Performance Contracting
• Other

› Construction Manager at Risk, Job Order Contracting, Co-Operative Purchasing Agreements

❯Best Delivery Option?

A c c re d i t e d Tex a s E n e rg y M a n a ge r

Financing Options

❯Internal Financing

• Project funded by organization’s available operating or capital funds

❯Debt Financing

• Capital acquired through simple loans, bonds, or other debt instruments

❯Lease or Lease Purchase Agreement

• Equipment and improvements are acquired through a third party source

A c c re d i t e d Tex a s E n e rg y M a n a ge r

Financing Options (cont.)

❯Performance Contracting

• Agreement between facility owner and energy service company

(performance contractor)

❯Complementary Approaches

• Combining various financing and delivery options to bet fit needs

A c c re d i t e d Tex a s E n e rg y M a n a ge r

Texas LoanSTAR Program

❯Administered by State Energy Conservation Office (SECO)

• Notice of Loan Funds Availability (NOLFA)
• Requires response through formal application

❯Acceptable Project Delivery Options

• Design-Bid, Design-Build, Performance Contracting, & Other approved

project delivery methods

❯Funds for Energy and Water Conservation Projects

• Retrofit measure
• Major renovation
• New construction
• Typically 120 days to complete report

A c c re d i t e d Tex a s E n e rg y M a n a ge r

Texas LoanSTAR Program

❯Detailed Energy Analysis Report Required

• Technical Guideline Available Online
• Analyst – Qualified Professional Engineer in Texas

❯Financing and Payback Criteria

• Interest rate 2 – 3%
• Overall Project Payback of 10 Years or Less
• Buy-down Option

A c c re d i t e d Tex a s E n e rg y M a n a ge r

Texas LoanSTAR Program

❯Cost Avoidance

• Utility rate analysis
• Establishing energy costs

❯Utility Cost Reduction Measures (UCRMs) Types

• Category I, II, III, & IV

❯SECO Review Process

• Assessment report
• Design phase
• Construction phase
• Reviews at no cost to applicant

A c c re d i t e d Tex a s E n e rg y M a n a ge r

Ashley Williams, MCRP & ATEM

❯ Texas Energy Managers Association ❯ Director of Curriculum and Certification ❯ awilliams@texasema.org

questions

e n e r g y m a n a g e m e n t p r o g r a m : f u n d a m e n t a l s a n d d e v e l o p m e n t

Texas Energy Managers Association

❯ www.texasema.org