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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