Beyond Prop 39 Funding - ENERGIZE SCHOOLS€¦ · additional resources for energy efficiency...
Transcript of Beyond Prop 39 Funding - ENERGIZE SCHOOLS€¦ · additional resources for energy efficiency...
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Beyond Prop 39 Funding: Drawing More Resources for Energy Efficiency
Karly Zimmerman, Strategic Energy Innovations
Julia Zuckerman, Climate Policy Initiative
Susan Wright, San Mateo County Energy Watch
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Purpose of Webinar To provide actionable next steps and resources to maximize Proposition 39 expenditures and draw
additional resources for energy efficiency projects
Webinar Agenda
1. The benefits of a comprehensive approach to energy efficiency
2. Resources available from CEC, PG&E and others 3. Private finance options such as performance based
contracts, Solar PPAs, etc. 4. Best practices to maximize Prop 39 expenditures
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The Energize Schools Partnership
A collaborative of nonprofit mission-driven experts that helps school districts holistically approach energy management.
1. Technical Support: Comprehensive planning and implementation services for your energy efficiency and renewable energy projects.
2. Conserve: Staff and student engagement in conservation to create lasting energy savings.
3. Educate: Curriculum and hands-on activities to turn your school buildings into real-world learning opportunities for your students.
Energize Schools delivers expert, vendor neutral guidance and technical expertise
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Mission-Driven Non-Profits
SEI creates green communities by designing sustainability programs for education, housing, government, and the workforce.
Ecology Action provides innovative programs that make it easy to save energy.
PECI brings engineering expertise and a deep understanding of building science and systems.
Bay Area Climate Collaborative accelerates the clean energy economy by launching scalable market-oriented initiatives.
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Energize Schools Supporters
Thank you to the following organizations for subsidizing the costs of many of our services:
**"This"program"is"funded"by"California"u6lity"customers"and"administered"by"PG&E"under"the"auspices"of"the"California"Public"U6li6es"Commission."
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BRAZIL CHINA EUROPE INDIA INDONESIA UNITED STATES
235 Montgomery St. 13th Floor San Francisco, CA 94104, USA climatepolicyinitiative.org
Targeting Proposition 39 to Help California’s Schools Save Energy and
Money
October 1, 2014
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Agenda
• Introduction • Findings from our study • The benefits of combining funding sources • Other resources available for energy-saving
projects
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Introduction
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Proposition 39
• Approved by California voters Nov 6, 2012 • Directs $1-2 billion over 5 years to K-12 schools
and community colleges for energy projects • Schools can use Prop 39 money for: – Energy efficiency retrofits – Renewable energy installations – Staff Training – Energy Management, including Conservation
and Energy Education
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Targeting Proposition 39 to Help California’s Schools Save Energy and Money (May 2013)
Our goal was to inform the design of the Proposition 39 program by answering these questions: • How are California’s school districts currently
approaching and funding energy-saving projects? • Where are the gaps? How can Proposition 39 best
fill the gaps in existing funding sources and enable districts to achieve greater energy savings?
We talked with business officials and facilities officials from a diverse cross-section of school districts across California
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Interviews
Districts stratified based on: • Size • Rural status • Climate zone • History of issuing bonds
We selected 22 districts out of over 1,000; 15 responded • 14 phone interviews • 1 email response We also interviewed other practitioners and experts
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Modeling
Goal: Assess how different financing scenarios affect 1st-year net savings for a range of possible projects Data from Lawrence Berkeley National Laboratory and National Association of Energy Service Companies
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Findings and Recommendations
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1. Provide Technical Assistance
For many districts, the biggest barrier to achieving energy savings is a lack of technical assistance to help navigate the range of energy-saving projects and financing options available to them. • Small districts have limited staff capacity, are
less likely to receive marketing materials • Larger districts are targeted by vendors, need
help sorting through sales pitches
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2. Tailor Financial Support to Fit District Needs
The optimal role for Proposition 39 funds depends on which existing funding sources are available to a particular school district.
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3. Leverage Private Capital
Most districts can currently access private capital at low cost. These districts can combine loans with Proposition 39 funds to pursue projects with greater energy savings.
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Why combine Prop 39 with other funding?
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For most LEAs, Proposition 39 grants on their own can only fund small projects
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Example: Lighting-only project, funded with $50,000 annual Proposition 39 grant and utility rebates Project costs and funding sources: $310K total cost • $250K Proposition 39 grant • $60K utility rebates Project implemented over 5 years as grant is received
Budget impact: • First-year budget savings: $8K • Total over 14 years: $480K ($370K net present value)
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Combining Proposition 39 grants with other funds can make larger projects — and more budget savings — possible
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Example from our interviews: A small school district (<1,000 students) looked to energy efficiency as a way to save money after budget cuts. The project: $2.2 million total cost at 4 school sites • Lighting retrofit • Solar • Trash compactor Ongoing service agreement with a major energy services company, which provided a performance guarantee
District CBO brought all the pieces together Energy Commission provided guidance; district also hired an independent vendor to review the project plan
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Two loans were used to pay the upfront cost: • $400K loan from ECAA (12 years) • $1.8 million municipal lease (15 years) Rebates and grants were used to pay back much of the municipal lease: • $300K utility rebates • $500K modernization grant • $800K High Performance Incentive Grant This project will save $1.7 million over 25 years for the district’s general fund ($930K net present value)
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Resources Available
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Technical Assistance Available
8A CPI Brief
Targeting Proposition 39 to Help California’s Schools Save Energy and MoneyMay 2013
program funds. This function is already part of the Bright Schools program and has worked in other states.
Given that many districts can already access some degree of free energy audits through existing sources, it may make sense to target Proposition 39 technical assistance funds to the functions that are not as well-covered. These include:
• Reviewing proposals submitted to districts by ESCOs or other vendors; connecting districts with third-party firms and providing funding for third-party analysis to check ESCO savings estimates
• Helping districts select reliable ESCOs or contractors
• Reaching out proactively to the smallest districts (who are too small to be attractive ESCO customers) to help them explore potential projects and start planning
Table 2: Existing sources of technical assistance
SOURCE WHAT’S PROVIDED LIMITATIONSESCOs Free energy audits
For customers, assistance identifying funding sources and accessing funding
Usually only available for districts where ESCO believes district has a viable project of sufficient size (over ~$1 million) and can access private financingOften connected to a sales pitch, which some districts find difficult to assess independently
California Energy Commission, through the Bright Schools programa
Free energy audits (up to $20,000)Additional program assistance, such as reviewing project plans and helping select contractors
Some up-front commitment required: District’s governing board must sign a resolution that it “is willing to seek funding to implement viable energy-saving measure(s)”Limited availability at times due to funding constraintsAssistance limited to $20,000 per district
Utilities Advice and information on energy conser-vation strategiesMay provide free energy audits connected to rebate programs
Varies by utility (investor-owned utilities tend to offer more services than smaller municipal utilities)
Other, including Collaborative for High Performance Schools, Alliance to Save Energy, U.S. Department of Energy, EPA
Information and general guidance on energy efficiency options
Not project-specific
a http://www.energy.ca.gov/efficiency/brightschools/
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Funding sources in addition to Proposition 39
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BRAZIL CHINA EUROPE INDIA INDONESIA UNITED STATES
235 Montgomery St. 13th Floor San Francisco, CA 94104, USA climatepolicyinitiative.org
Contact: Julia Zuckerman [email protected] 415-202-5844
Climate Policy Initiative works to improve the most important energy and land use policies around the world, with a particular focus on finance. We support decision-makers through in-depth analysis on what works and what does not.
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Prop 39 Strategy – Accessing All Available Programs
October 1, 2014
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What is an Energy Watch?
PURPOSE: Drive energy efficiency projects for “hard-to-reach” customers
PARTNERSHIP: + OVERSIGHT:
Local government partner
FUNDING: California rate payers
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Statewide:
PG&E Government Partnerships
Slide provided by PG&E
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San Mateo County Energy Watch
PARTNERSHIP: +
PROGRAM MANAGEMENT:
CUSTOMERS:
Added in 2014
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Benchmarking Energy Assessments
Direct Install Training and Education
Humboldt County Marin County
Monterey Bay Area San Luis Obispo County
San Mateo County Santa Clara County Sierra Nevada Area
Energy Watches Serving Schools
Slide provided by PG&E
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Prop 39 Strategy
1. Search for ALL energy savings
3. Consider ALL funding sources
(EE is a good investment!)
2. Access a variety of programs
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1. Search for savings
Lighting Solar
HVAC
+ Controls (Building Management Systems)
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2. Access programs
NO COST AUDITS: Program Details Considerations
Energy Watch Direct Install
Lighting and refrigeration. Higher rebates, installation included
May need to do RFP before choosing installer
CEC Bright Schools $20,000 in technical assistance for any kind of audits
Takes a long time to get approval. You need to know what you need first
PG&E - Enovity SMART
Data analytics-driven retro-commissioning
Building use analyzed to see if you can participate. Other areas have other similar programs
PG&E – Large Integrated Audits
Full audits. Normally only for bigger buildings, but available because of P39
Need to apply through PG&E rep
Kyoto USA Solar master plans Nonprofit organization
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2. Access programs
MORE PROGRAMS: Program Details Considerations
CLEAResult – SEE Bonus
Assessments, assistance with Expenditure Plans, rebate assistance
Co-pay. Only for Alameda, Butte, Calaveras, Fresno, Kern, Kings, Madera, Mariposa, Merced, Napa, San Francisco, San Luis Obispo, San Mateo, Santa Barbara, Solano, Sonoma, Sutter, Tulare, Tuolumne, and Yuba counties
Energize Schools Audits, assistance with Expenditure Plans and implementation, behavior change, conservation education
Only for Solano, Contra Costa, Napa, Sonoma, San Joaquin, Stanislaus, and San Luis Obispo counties. First come, first served. Also fee for service.
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2. Access programs
MORE PROGRAMS: Program Details Considerations
California Conservation Corps
Assessments Focuses on smaller districts
PECI – Air Care Plus Low-cost HVAC tune-up program
Not available everywhere – most of Bay Area, not Central Valley
Honeywell – Commercial Quality Maintenance
3-year quarterly service / maintenance agreement to bring units to ACCA Standard 180 Baseline
Available throughout PG&E territory
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3. Funding beyond Prop 39
PG&E 0% On-bill Financing CEC 0% loan
Up to $1 million per district Up to $3 million per district
Energy efficiency projects Any energy-saving project (solar included)
Pay back on bill Pay back twice a year
Only for items with PG&E rebates
Can get over-subscribed
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Assistance from an “Energy Manager”
• Most programs/assistance goes through Expenditure Plan
• Need help with implementation, reporting
• SMCEW developed template RFP/RFQ for “Energy Manager”
• Scope: • Remaining audits • Expenditure Plan development • Implementation support
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Case Studies LARGE ELEMENTARY SCHOOL DISTRICT (20 schools) • Staff facility manager taking the lead • SMCEW Lighting audits (school intern provided some lighting inventory
information) • Board wants to move quickly • Planning to use PG&E 0% financing to do more, investigating CEC 0% loan • CEC Bright Schools audits for HVAC – Took a long time to get approval,
focusing on 4 schools • May get additional audits later
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Case Studies SMALL ELEMENTARY SCHOOL DISTRICT (2 schools) • Superintendent and Facilities Manager working collaboratively • SMCEW Lighting audits • CEC Bright Schools audits for HVAC • Just passed bond in June • Will incorporate energy efficiency upgrades into modernization work
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Additional considerations
NEW CONSTRUCTION:
PG&E Savings by Design
Zero Net Energy
WATER CONSERVATION:
Projects may be reimbursable using
Prop 39 funds
Talk to your water supplier for technical
assistance, rebates
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Thank you!
Susan Wright Resource Conservation Specialist, County of San Mateo 650-599-1403 [email protected]
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Q&A
Julia Zuckerman, Climate Policy Initiative
Susan Wright, San Mateo Energy Watch
And, don’t forget to sign up for the next webinar in our series!
• Thu Oct 23, 3:30pm - Beyond The Hardware: Saving Energy Through Training & Behavior Change
Go to: www.energizeschools.org/fall-webinar-series