General Administration Energy Program 2010

1. Energy Savings Performance Contracting General AdministrationEnergy Program2010

2. ESPC Background • History • Legislative Authority • Definition • Benefits • Qualifying Projects • Financing • Working with GA

3. History • 1984 – GA performs energy audits on state facilities • 1985 – ESPC statute passed for state facilities, GA develops program • 1996 – ESPC statute expanded to include K-12 and municipalities • 2007 – ESPC statute expanded to include water and waste utilities

4. Legislative Authority • RCW 39.35A.050 • The state department of general administration shall maintain a registry of energy service contractors and provide assistance to municipalities in identifying available performance-based contracting services.

5. ESPC Definition • A method of identifying, constructing and financing energy and utility conservation projects. • Uses utility dollars saved and utility rebates to pay for the project costs. • Eliminates most of the risks associated with the design, bid, build process.

6. ESPC Benefits • Low bid acceptance not required. • Owner involved with subcontractor selection. • Owner involved with equipment selection. • GUARANTEED: • Maximum project cost • Energy savings • Equipment performance

7. ESPC Benefits (cont’d) • Maintenance costs reduced. • Improved indoor environmental conditions. • Funds available through the State Treasurer. • Positive cash flow over measure life.

8. Lighting projects – lamps, ballasts & fixtures HVAC modifications Steam & condensate piping upgrades Boiler & chiller system upgrades WWTP & water system upgrades Qualifying Projects Energy, Water, Sewer and Waste Disposal saving projects such as: • Energy management control systems • Buildings and grounds water conservation • Compost and recycling program elements • Renewable energy systems • Street and traffic light upgrades

9. Budget Neutral Budget Neutral Approach Approach After After Before Before Remaining Revenues Remaining Revenues Annual Debt Service Annual Debt Service Current Current Operational Operational Costs Costs New Operational Costs New Operational Costs Financing

10. Financing Options • Energy Service Company Financing • Utility Incentives • State Financing • State Treasurer’s LOCAL Program • 2.9% - 5.1% interest rate • Dept. of Commerce infrastructure loans • 0.5% interest rate • Federal grants

11. GA Experience • Energy Conservation in Public Facilities (since 1991): • Over $250 million in total projects • Over $50 million in grant funds brought to the projects • Over $25 million in annual energy cost savings

12. Case Study 1: • South Kitsap School District • Project Included: • Swimming pool heat recovery system • New lighting throughout the district

13. Case Study 1: • South Kitsap School District • Project benefits: • Improved pool facility conditions (temperature and relative humidity) • Improved lighting levels and removal of PCB ballasts. • Project savings: • 3.9 million kWh or $240,000 annually • Project cost: • $1.56 million, with $466,000 utility grant

14. Experience • Clients include state agencies, colleges and universities, cities and towns, counties, school districts, port districts, libraries, hospitals, health districts and more. • My current clients include: • Skagit Valley College • City of Bellingham • Skagit County • Port of Bellingham • Auburn School District • Bellingham SD • Bethel SD • Conway SD • Highline SD • Orcas Island SD • Renton SD • South Puget Sound CC • Western Washington University • Department of Social & Health Services

15. Procedure • GA initiates an Interagency Agreement • ESCO Selection • Audit Phase (Preliminary & Investment Grade Audit) • Design & Construction Phase • Monitoring and Verification

16. For More Information • Visit GA’s Website at www.ga.wa.gov/eas/energy • State Treasurer’s LOCAL Program http://tre.wa.gov/LOCAL/local.htm • Questions?

17. Thank You Stuart Simpson Energy Engineer GA Energy Program 360-902-7199 ssimpso@ga.wa.gov