We deliver enduring performance. Utilizing Performance Contracting to Meet the Presidents Climate...
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We deliver enduring performance. Utilizing Performance Contracting to Meet the Presidents Climate Commitment Second Nature TAC Energy Solutions July 8, 2008
We deliver enduring performance. Utilizing Performance Contracting to Meet the Presidents Climate Commitment Second Nature TAC Energy Solutions July 8,
We deliver enduring performance. Utilizing Performance
Contracting to Meet the Presidents Climate Commitment Second Nature
TAC Energy Solutions July 8, 2008
Slide 2
We deliver enduring performance. Todays Agenda Introduction to
the Clinton Climate Initiatives available resources ACUPCC Process
and Performance Contracting
Slide 3
We deliver enduring performance. Andrea Putman, Second Nature
Co-Manager of the ACUPCC/CCI Partnership
Slide 4
We deliver enduring performance.
Slide 5
Goal Exponentially increase the number of large scale energy
saving retrofit projects and reduce greenhouse gas emissions on
campuses with no net increase in annual capital or operating
expenses.
Slide 6
We deliver enduring performance. Opportunity Buildings account
for ~40% of global GHG emissions, up to 70% in big cities and 90%
for college campuses Lifecycle Cost 75% of costs of buildings occur
after construction is complete Efficiency Pays
Slide 7
We deliver enduring performance. CCIs Energy Efficient Building
Retrofit Program Energy Services Companies (ESCOs) Commitment Enter
new markets on favorable terms Participate in EPC projects in
partner cities Deliver sustainable projects with maximum savings
with performance guarantees Develop mutually acceptable Terms &
Conditions of Performance Contracts Guaranteed Maximum Price;
open-book pricing; annual as well as total project savings
guarantees; gain sharing (or cost reduction incentive) Work with
CCI to reduce program costs
Slide 8
We deliver enduring performance. Global Financial Institutions
Commitment Provide reasonable & efficient access to capital
Design financial solutions for EEBRP participants Lend capital for
retrofits based on savings guarantees US $1 billion in capital each
for the EE market
Slide 9
We deliver enduring performance. CCI Purchasing Assistance 25
supplier agreements negotiated to date Reductions range 25-70% for
more niche, high efficiency Chiller Technology Lighting Roofing/
Insulation Windows Carrier Optimum Energy Acuity Cooper GE Lighting
Lemnis BASF Polyurethane Foam Enterprises Tremco 3M Bekaert
Slide 10
We deliver enduring performance. Task Force APPA Arizona State
University Catalyst Financial Group, Inc. City Colleges of Chicago
Clinton Climate Initiative Donahue Associates, Inc. EcoAmerica
Energy Ventures International Hannon and Armstrong Holland &
Knight Los Angeles Community College District National Association
of College and University Business Officers National Association of
Educational Procurement National Association of Energy Service
Companies Oberlin College Rocky Mountain Institute Second Nature
Syracuse University Townsend Engineering U.S. Environmental
Protection Agency, Energy Star U.S. Green Building Council
Slide 11
We deliver enduring performance. For Further Information
Jonathan Kevles, Clinton Climate Initiative Building Retrofit
Program team member (857) 294-8163 [email protected]
Jonathan Magaziner, Clinton Climate Initiative Building Retrofit
Program team member [email protected] Andrea Putman,
Second Nature Director of Sustainability Financing (703) 528-8579
[email protected]
http://www.presidentsclimatecommitment.org/html/solutions_cci.htm
Slide 12
We deliver enduring performance. Todays Agenda Introduction to
the Clinton Climate Initiative ACUPCC Process and Performance
Contracting
Slide 13
We deliver enduring performance. ACUPCC Process / Performance
Contracting Establish a baseline Consider reduction strategies
Implement strategies Measure results against baselines
Slide 14
We deliver enduring performance. Performance Contracting Helps
Meet ACUPCC Requirements 1.Understanding baselines and their
significance in ongoing measurement of progress 2.Understanding the
interaction of potential mitigation strategies in order to
determine their real impact 3.Providing ongoing reporting to meet
established requirements 4.Providing a funding stream to implement
mitigation strategies
Slide 15
We deliver enduring performance. Establishing Your Carbon
Footprint (Baseline) Guidelines from ACUPCC Implementation Guide
Encourages utilization of a standard protocol Suggests use of
Campus Calculator from Clean Air-Cool Planet Ongoing reporting
requirement to show progress
Slide 16
We deliver enduring performance. Use of Campus Calculator
Inputs Utility data provides the majority of the CO 2 output Scope
1 emissions central plant domestic HW heating Scope 2 emissions off
site generation largely electricity but purchased steam Campus data
regarding travel and fleet Scope 1 and 3 emissions transportation
This section is the most difficult to pin down
Slide 17
We deliver enduring performance. Sample Output from Campus
Carbon Calculator
Slide 18
We deliver enduring performance. Impacts on the Baseline
Weather Student Population Campus Growth or Decline
Slide 19
We deliver enduring performance. Sample Output from Campus
Carbon Calculator
Slide 20
We deliver enduring performance. Sample Output from Campus
Carbon Calculator
Slide 21
We deliver enduring performance. Sample Output from Campus
Carbon Calculator
Slide 22
We deliver enduring performance. Sample Output from Campus
Carbon Calculator
Slide 23
We deliver enduring performance. Points to Consider when
Establishing a Baseline 1.For scope 1 and 2 emissions, enter as
much historical utility data as possible 2.Include information on
campus dynamics in your reporting process 3.Work toward benchmark
data, eg. MMBtu/sq. ft., number CO 2 /student, or /square footage
4.Think trajectory, not snap shots in time 5.Always use actual data
where it exists and make educated estimates where it does not
Slide 24
We deliver enduring performance. Whats Next Once you know where
you are, you will know where you arent! Clean Air-Cool Planets
upcoming version (some what if tools) Controlling your
trajectory
Slide 25
We deliver enduring performance. Mitigation Option Evaluation
1.Potential to avoid or reduce CHG emissions 2.Flexibility as a
step towards future emissions- reduction measures 3.Return on
investment or financial impact 4.Potential to create positive
and/or negative social and environmental side-effects
5.Relationship to other potential measures and opportunities for
synergistic measures 6.Potential to be scaled upward if successful
7.Potential to involve students and faculty
Slide 26
We deliver enduring performance. How Can You Know You Will Get
What You Expect? Premise if you reduce energy consumption you
reduce CO 2 emissions 1.Is there a way to guarantee energy
reduction? 2.Why is it important to be assured that a mitigation
strategy will work?
Slide 27
We deliver enduring performance. How Can You Know You Will Get
What You Expect? Faulty Assumptions Example Lighting Calculation
Variable Wattage Before Wattage After- Power Saved per Fixture= #
of Fixturesx # of Burn Hours per Yearx % of Lamps Not Burnt Outx
Total kWh Saved=
Slide 28
We deliver enduring performance. How Can You Know You Will Get
What You Expect? Example Lighting Calculation VariableCorrect
Wattage Before 137 Watts Wattage After- 80 Watts Power Saved per
Fixture= 57 Watts # of Fixturesx 1000 # of Burn Hours per Yearx
2500 % of Lamps Not Burnt Outx 95% Total kWh Saved=135,375 kWh
Faulty Assumptions
Slide 29
We deliver enduring performance. How Can You Know You Will Get
What You Expect? Example Lighting Calculation
VariableCorrectIncorrect Wattage Before 137 Watts192 Watts Wattage
After- 80 Watts82 Watts Power Saved per Fixture= 57 Watts110 Watts
# of Fixturesx 1000 # of Burn Hours per Yearx 25004000 % of Lamps
Not Burnt Outx 95%N/A Total kWh Saved=135,375 kWh440,000 kWh 225%
Overstated Faulty Assumptions
Slide 30
We deliver enduring performance. Sample Output from Campus
Carbon Calculator
Slide 31
We deliver enduring performance. Baselines and Climate Action
Plans 1.Use real data where possible 2.Use the baseline as a guide
to attacking the large sources of CO 2 emissions 3.Beware of CO 2
reduction based upon assumptions 4.Real CO 2 emissions come only
from real energy savings
Slide 32
We deliver enduring performance. Meeting Program Deadline
Requirements Reporting Frequency Within 2 months of signature
Create institutional structures to guide development and
implementation of Climate Action Plan (CAP) Broad based among
campus community High level participants empowered to enact plans
Identify 2 tangible actions Must be implemented before end of year
2 Within 1 year of signature Report results of GHG emissions
inventories Must identify calculator used and source of emissions
coefficients
Slide 33
We deliver enduring performance. Meeting Program Deadline
Requirements Reporting Frequency Within 2 years of signature
Implemented at least 2 tangible actions Updated GHG emissions
inventory Submit CAP Includes target date for achieving climate
neutrality Includes interim milestones prior to target date
Slide 34
We deliver enduring performance. Meeting Program Deadline
Requirements Elements of Climate Action Plan (CAP) Details of
institution plans to achieve climate neutrality Plans to make
climate neutrality and sustainability part of curriculum and to
share knowledge within community Mechanisms for tracking progress
on goals and actions Recommendation to incorporate CAP into
comprehensive sustainability plan
Slide 35
We deliver enduring performance. Meeting Program Deadline
Requirements Format of CAP Introduction Background information
Campus Emissions Include visual representations of emissions
trajectory Mitigation Strategies Description of action plan to
mitigate each emission source Outreach efforts Includes
educational, research, and community Financing Tracking
Progress
Slide 36
We deliver enduring performance. Meeting Program Deadline
Requirements Reporting Frequency Within 3 years of signature
Progress in implementing CAP Updated GHG emissions inventory Within
4 years of signature Updated GHG emissions inventory Encouraged to
submit narrative progress report of CAP annually but requirement is
every other year
Slide 37
We deliver enduring performance. Developing Meaningful
Reports
Slide 38
We deliver enduring performance. Developing Meaningful
Reports
Slide 39
We deliver enduring performance. Developing Meaningful Reports
Customize to meet your unique environment You know what is
important to your campus and community Centralized reporting system
to track Actions taken Outreach efforts Evaluation of cost and
benefits Quantitative tracking Prove results GHG, energy
efficiency, sustainability Identify ROI for each action item
Visibly show campus, community, and potential donors
Slide 40
We deliver enduring performance. Evaluating Funding Options
Funding Options available include: Cash on Hand Capital Campaign
Financing Energy Performance Contract Combination of Options
Above
Slide 41
We deliver enduring performance. Evaluating Funding Options
Considerations What is the financial impact of your investment?
ROI? Establish/Retain campus identity? Public Relations/Press? % of
goal achieved towards carbon neutrality? Reduction in deferred
maintenance? Combination of above
Slide 42
We deliver enduring performance. Evaluating Funding Options
Benefits of Performance Contracting Keep more of your available
cash Partial funding stream with guarantee of performance Whole
building approach, not piecemeal Audit deliverables can be helpful
in a capital campaign Achieve larger % of GHG emissions reduction
and get to ultimate objective more quickly Reduction in deferred
maintenance Gain much needed improvements in infrastructure
Partnership approach Collaboration with entire campus community
Students/staff can work with audit team to develop appropriate
solutions for your campus
Slide 43
We deliver enduring performance. Est. 1836 $25.1B Revenue -
2007 Offices in 102 countries Electrical Distribution Products
Building Automation $2B Sales - 2007 Electrical Distribution
Products Industrial Automation ENERGY SOLUTIONS 350+ projects
nationwide Offices in 25 states STRATEGIC ACCOUNTS Telecom, Data
Centers, Retail, Federal SYSTEMS INTEGRATION 17 branch offices
focus on building automat. & security PARTNERS 300 partner
offices throughout the US Video Security Systems and Support
Equipment Critical Power & Cooling Services Company
Overview
Slide 44
We deliver enduring performance. TAC Energy Solutions TAC
Higher Education Solutions We have been working with higher
education for 15 years. We help campuses move forward in a
sustainable, environmentally friendly, and energy efficient manner.
We are using Clean Air Cool Planets Campus Calculator as part of
our Audit process. Results to date: $47,000,000 in guaranteed
utility savings 6,000,000 tons of CO 2 removed Equivalent of 64,000
cars off the road for a year or 88,000 acres of trees planted
Slide 45
We deliver enduring performance. Questions/Comments?
Slide 46
We deliver enduring performance. Contacts TAC Energy Solutions
Mike Mumper NE/Midwest 717-232-8182 x233
[email protected]@tac.com Barry Wilhelm Mid
Atlantic/South 804-330-5660 x110
[email protected]@tac.com Jared McCurley West of
Mississippi 312-286-4662
[email protected]@tac.com
www.tac.com/am/cci