Doing More With Less PA Act 39 Guaranteed Energy Savings Act 1 - - PowerPoint PPT Presentation

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Doing More With Less PA Act 39 – Guaranteed Energy Savings Act

Johnson Controls, Inc.

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Agenda

 Introductions  Performance Contracting Definition  Key Issues  Process steps to date  Proposed Project  Project Cost & Savings  Project Benefits  Question & Answer

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Energy Performance Contracting

In short, Performance Contracting is a procurement tool that allows the district to use energy savings to offset the cost of infrastructure improvements. In the enabling legislation is PA Act 39, 2010.  Bundle of Infrastructure upgrades – MEP, HVAC, IT

 Reduced energy usage & increased revenue (PJMDR)  Reduced operating and maintenance costs  Reduced emissions & environmental impact

 Infrastructure upgrades costs are offset by the annual savings and revenue that is produced

 Fund deferred maintenance & capital improvements  Solve HVAC related problems in buildings

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Key issues

 Continue to drive operational efficiencies  Address the obsolete Energy Management Systems

at Great Valley Middle School and General Wayne Elementary School

 Expand the revenue generation opportunities

through the PJM Demand Response Program

 Address the HVAC issues at Great Valley Middle

School & KD Markley Elementary School

 Address the intermittent power outage problems at

General Wayne Elementary School

 Improve the classroom teaching & learning

environment while saving energy

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Process Steps to date  District released RFP for GESA project  Comprehensive field survey of existing energy consuming systems within the district  Uncovered all financially viable energy savings measures  Detailed proposed projects in RFP response  Presented findings and project options to administration selection committee

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Proposed Project – Energy Efficiency

 Interior and Exterior Lighting Upgrades (district-wide)

 High Efficiency 25W T-8 Technology  Lighting Occupancy Sensors  LED Exterior Wall-packs and Pole Lighting  Gym lighting upgrade

 Energy Management System replacements at General Wayne ES, Great Valley MS & Bus Garage

 Replace failing and obsolete systems  Improved troubleshooting and productivity  Demand Response revenue optimization  Connected to SchoolDude platform for additional functionality

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Proposed Project – Energy Efficiency

 Redesign and re-commission SEMCO Outdoor air units for proper outdoor air control and humidity control  Apply Panoptix continuous commissioning software district wide to drive energy efficiency through analytics and HVAC continuous optimization  Building management energy strategy optimization  Infiltration reduction measures at KD Markley ES & Great Valley High School  Convert the heating plant at Charlestown ES from oil to natural gas  Act 129 Rebates

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Financial Detail – 100% financed project

Project modeled using a 15 year term Project Construction Cost: $3,451,634 Total costs (financing & services): $4,664,811 Project Savings: $4,778,739 Net Savings to district: $133,928

 Financing cost projected at 3% for 15 year term  Project Payback is 14.9 years, The ROI is 2.9%  PECO gas line costs have been estimated at $50,000. This cost would be funded by the savings but paid directly to PECO.

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Financial Detail – $1.55M Capital Reserve Contribution with the remainder financed

Project modeled using a 15 year term Project Construction Cost: $3,451,634 Total costs (financing & services): $4,010,083 Project Savings: $4,778,739 Net Savings to district: $768,658

 Financed project cost shown using $1.55M of district capital reserves, remainder borrowing cost at 3%  Project Payback is 12.5 years, The ROI is 19.2%  PECO gas line costs have been estimated at $50,000. This cost would be funded by the savings but paid directly to PECO.

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Financial Detail – 100% funded by capital reserves

Project modeled using a 15 year term Project Construction Cost: $3,451,634 Total costs (financing & services):$3,753,574 Project Savings: $4,778,739 Net Savings to district: $1,025,165

 Project payback is 12 years, The ROI is 27.3%  PECO gas line costs have been estimated at $50,000. This cost would be funded by the savings but paid directly to PECO.

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Proposed Project Add Alternate 100% Back Up Generator

 Intermittent electrical power at General Wayne ES  Current back up generator only serves emergency circuits  JCI developed a strategy to replace back up generators with whole building generators  Building then has complete operation during power

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 Allows district to completely remove building from grid which increases Demand Response revenue  Revenue helps to offset upgrade costs

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Project with 100% Back Up Generator

Project modeled using a 20 year term Project Construction Cost: $4,290,726 Total costs (financing & services): $6,218,154 Project Savings: $6,993,325 Net Savings to district: $775,171

 Financing cost projected at 3% for 20 year term  Project Payback is 18.0 years, ROI 12.5% (20 year term)  PECO gas line costs have been estimated at $50,000. This cost would be funded by the savings but paid directly to PECO.

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Implementation Plan

 Dedicated project manager  Project meetings to coordinate all work with district staff and ensure no disruption to school operations  Team primarily works with K-12 clients  Scope items that can be completed during school year

 Infiltration reduction  Exterior lighting  SEMCO HVAC unit redesign  Natural Gas fuel conversion (PECO dependent)  Building management energy strategy optimization

 All other scope items to be completed in summer of 2014

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Environmental Benefits

 Energy efficiency is inherently green  CO2 reduction from this project is equivalent to removing 4,573 cars from the road.  Equivalent to the power usage of 2,035 homes  Source: US EPA Greenhouse Gas Equivalencies Calculator

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Project Benefits

 Complete lighting upgrade for energy savings and lighting quality improvement  Replaces the obsolete and failing control systems at Great Valley Middle School and General Wayne Elementary School  Standardized Building Management System (Metasys) throughout district will improve productivity of maintenance staff and improve energy efficiency  Addresses the HVAC issues at Great Valley Middle School and KD Markley Elementary School  Significant environmental benefits  Project is completely funded through energy savings

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Questions Discussion