Performance Contracts Eddy Trevino State Energy Conservation Office - - PowerPoint PPT Presentation

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Performance Contracts Eddy Trevino State Energy Conservation Office - - PowerPoint PPT Presentation

Jun 08, 2023 491 likes •573 views

Energy Savings Performance Contracts Eddy Trevino State Energy Conservation Office eddy.trevino@cpa.state.tx.us 512-463-1876 LoanSTAR Loans Source MMBtu Consumption Electricity (kWh) Natural Gas (MMBtu) Chilled Water (MMBtu) 12% 23% 65%

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SLIDE 1

Energy Savings Performance Contracts

Eddy Trevino State Energy Conservation Office

eddy.trevino@cpa.state.tx.us 512-463-1876

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LoanSTAR Loans

http://www.energystar.gov/ia/business/evaluate_performance/site_source.pdf

65% 23% 12%

Source MMBtu Consumption

Electricity (kWh) Natural Gas (MMBtu) Chilled Water (MMBtu)

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SLIDE 3

37

LoanSTAR Energy Savings Performance Contracts

Average Payback = 8 yrs.

Higher Education, 2 Hospitals, 1 Local Governments 15 School Districts 8 State Agencies 11 Higher Education 4% Hospitals 1% Local Governments 49% School Districts 9% State Agencies 37%

$131,230,699

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Performance Contracting Statutes

  • Education Code

– Public Schools (K-12): Section 44.901. Energy Savings Performance Contracts – Public Higher Education: Section 51.927. Energy Savings Performance Contracts

  • Government Code

– State Agencies: Section 2166.406. Energy Savings Performance Contracts

  • Local Government Code

– Cities and Counties: Chapter 302. Energy Savings Performance Contracts for Local Governments

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Related Legislation in 83R

SB 533 Author: Zaffirini Sponsor: Keffer

Caption:

Relating to a review of cost savings to state agencies and institutions

  • f higher education under energy savings performance contracts.
  • Amends Section 2166.406 of the Government Code
  • Requires the State Energy Conservation Office (SECO) to review

reports submitted by state agencies that measure and verify cost savings and provide periodic analyses of those cost savings to the agencies and the Legislative Budget Board.

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Typical Objections

  • Don’t want to add debt
  • ESPC too expensive

– Perception of vertical margin stacking

  • CFO doesn’t understand the process

– Different approaches and contracts by different ESCOs

  • What is being guaranteed?
  • Lack of trust or skepticism
  • Requires long term relationship
  • Lack of understanding of how debt fits into

accounting structure

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Eddy Trevino, PE eddy.trevino@cpa.state.tx.us 512 463 1876