CMTA Energy SolutionsCMTA Energy Solutions

Bringing the CMTA advantage to the Guaranteed Bringing the CMTA advantage to the Guaranteed Bringing the CMTA advantage to the Guaranteed Bringing the CMTA advantage to the Guaranteed

Energy Savings Contracting MarketEnergy Savings Contracting Market

What is a Guaranteed Energy

Savings Contract (GESC)?Savings Contract (GESC)?

“The use of guaranteed savings “The use of guaranteed savings

from the maintenance and

operations budget (utilities) as operations budget (utilities) as

capital to make needed upgrades

and modernizations to your building

environmental systems, financed environmental systems, financed

over a specified period of time.”

Energy Services CoalitionEnergy Services Coalition

Project Reallocates Funds To Improve Facility

You are spending the money

anyway$.

Why use a Guaranteed Energy

Savings Contract?Savings Contract?

1. Stretch district bonding potential

2. Upgrade facilities and reduce operating costs

3. Guaranteed energy savings

4. Reduce environmental impact

5. Turnkey project- no finger pointing5. Turnkey project- no finger pointing

6. Can select contractors suppliers that add best

value vs. low cost

7. Long term measurement and verification 7. Long term measurement and verification

ensures system performance is sustainable

Potential Project ScopePotential Project Scope

Improve$..

�Thermal Envelope �Demand Limiting�Thermal Envelope

�HVAC Systems

�Lighting Systems

�Demand Limiting

�Energy Procurement

�Lighting Systems

�Water Efficiency

Upgrades

�Plug Loads

�Utility Monitoring

�Building Automation�Building Automation

Potential Project Scope (Owen County):

Why Would the Board Consider A Paid From Savings Contract?

High school is in need of repairs, but district needs to save

bonding potential to renovate Lower Elementary and does not bonding potential to renovate Lower Elementary and does not

have cash in general fund to make the repairs.

High school issues:

� 4 outside air units are not operational – indoor air quality

concerns for these areas.

� 12 heat pumps are not operational. Most are not critical areas.� 12 heat pumps are not operational. Most are not critical areas.

� Controls are becoming obsolete and need upgrade. Controls

totally removed on 7 heat pumps.

� Geothermal wellfield in need of repair. 17% of the field is not � Geothermal wellfield in need of repair. 17% of the field is not

in operation.

Performance Contract Requirements

� Maximum project payback of 20 years based on energy and

operational savings.

� Energy Savings are guaranteed for the contract term.

Operational savings are stipulated based on past bills.

� Up to 50% of project costs can be capital cost avoidance- this

can be restricted funds (bonding potential)

� Any restricted funds must go towards something on the district � Any restricted funds must go towards something on the district

facility plan

� 100% performance bond protects district during construction� 100% performance bond protects district during construction

“Regular” Schedule

The Request for Proposals does not commit the

school district to anything financially.school district to anything financially.

“Accelerated” Schedule

If start March 17, construction start July 28 If start March 17, construction start July 28

to August 11.

Frequently Asked Questions –

No such thing as a dumb question!!!

� Why are we doing this?

� How does the performance contractor make money?

� Is there another way for us to get this work done?

� Will the performance contractor still be here in 15 or 20 years?� Will the performance contractor still be here in 15 or 20 years?

� What is the mark-up we pay inside a performance contract?

� Are there things that void a guarantee? What kinds of things are they?

� If we have evening activities will that void a guarantee? � If we have evening activities will that void a guarantee?

� Are there restrictions on our usage of the building? On our temperature

setpoints?

� Who will warranty the equipment?

� Who will service the equipment? � Who will service the equipment?

� How often do you report back to us during measurement and

verification period?

� Why do the cost for measurement and verification every year?

� Are there any change orders? � Are there any change orders?

� Who is responsible for everything?