LOGICS: Local LOGICS: Local Governments Governments Implementing Implementing

Conservation and Conservation and SustainabilitySustainability

Operating Local Governments As Operating Local Governments As Energy Costs RiseEnergy Costs Rise

LOGICS TEAMLOGICS TEAM The Environmental Protection AgencyThe Environmental Protection Agency Delaware Valley Green Building CouncilDelaware Valley Green Building Council Delaware Valley Regional Planning Delaware Valley Regional Planning

CommissionCommission Department of Environmental ProtectionDepartment of Environmental Protection Sustainable Development FundSustainable Development Fund The Environmental Finance CenterThe Environmental Finance Center The Pennsylvania Environmental Council The Pennsylvania Environmental Council Penn FuturePenn Future

WHY LOCAL WHY LOCAL MUNICIPALITIES?MUNICIPALITIES?

Municipalities and townships have the Municipalities and townships have the responsibility of fiscal accountability to responsibility of fiscal accountability to their taxpayers their taxpayers

An energy efficient township provides An energy efficient township provides numerous benefits and better service to its numerous benefits and better service to its constituents constituents

Most municipalities can expect to save Most municipalities can expect to save 30% or more on energy operating costs by 30% or more on energy operating costs by participating in simple efficiency participating in simple efficiency opportunities opportunities

WHY LOCAL WHY LOCAL MUNICIPALITIES?MUNICIPALITIES?

Many overlook the connection Many overlook the connection between inefficient energy use and between inefficient energy use and cost. cost.

Efficient energy use is no longer the Efficient energy use is no longer the environmentally responsible choice; environmentally responsible choice; it has become the economically it has become the economically responsible choice. responsible choice.

9.6 billion square ft, accounts for 9.6 billion square ft, accounts for national Local Government footprintnational Local Government footprint

WHY NOW?WHY NOW? ElectricityElectricity

Retail Rate Caps expiring statewide, PECO expiresRetail Rate Caps expiring statewide, PECO expires12/31/1012/31/10

Rate caps have shielded customers from the Rate caps have shielded customers from the impacts of rising fuel prices and market-based impacts of rising fuel prices and market-based pricesprices

Natural Gas Natural Gas NYMEX price/MMBtu 2006: $5.56 2007: $6.53 pre NYMEX price/MMBtu 2006: $5.56 2007: $6.53 pre

2000: <$3.002000: <$3.00 GasolineGasoline

Retail price for regular gasoline up 63 cents/gal Retail price for regular gasoline up 63 cents/gal over a two years agoover a two years ago

Other commodities, including coal, have also Other commodities, including coal, have also experienced rising pricesexperienced rising prices

PROJECTED WHOLESALE PROJECTED WHOLESALE PRICESPRICES

$22.00$24.00

$25.00 $26.00 $27.00

0

5

10

15

20

25

30

1999 2001 2003 2005 2006

$28.14$32.38

$28.30

$38.27$42.40

$58.14

0

10

20

30

40

50

60

2000 2001 2002 2003 2004 2005

BENEFITS OF ENERGY BENEFITS OF ENERGY MANAGEMENTMANAGEMENT

Initial Effort (First two years)Initial Effort (First two years) 5-15% cost savings5-15% cost savings Little or no capital expenditureLittle or no capital expenditureLong-Term EffortLong-Term Effort 25% or higher cost savings25% or higher cost savings Requires management commitmentRequires management commitment Annual reviewAnnual review

Monitor efficiencies Monitor efficiencies Track savingTrack saving

STEPS TO ENERGY STEPS TO ENERGY MANAGEMENTMANAGEMENT

Official PolicyOfficial Policy A team or designated stafferA team or designated staffer Education of ALL staffEducation of ALL staff Review of existing facilities and billingReview of existing facilities and billing Identification, prioritization and Identification, prioritization and

implementation of opportunitiesimplementation of opportunities Ensure measurement of implementationEnsure measurement of implementation Use savings to fund next projectsUse savings to fund next projects

Official PolicyOfficial Policy

Clearly states energy goalsClearly states energy goals Can include:Can include:

Purchasing of equipmentPurchasing of equipment Construction of buildingsConstruction of buildings Maintenance of buildingsMaintenance of buildings Who is responsibleWho is responsible Fuels purchasingFuels purchasing Electricity purchasingElectricity purchasing Alternative energy generationAlternative energy generation

Team or StaffTeam or Staff

Team OptionTeam Option Multi-facility, multi-discipline, multi-department Multi-facility, multi-discipline, multi-department Two or three key people Two or three key people Could include EAC, other residents or businessesCould include EAC, other residents or businesses

Staff OptionStaff Option One person responsible for all energyOne person responsible for all energy Provides consistencyProvides consistency May be difficult to fund timeMay be difficult to fund time

EducationEducation

All staff need to know policyAll staff need to know policy All staff need to understand how they impact All staff need to understand how they impact

the energy usagethe energy usage All staff need to be able to explain that to the All staff need to be able to explain that to the

taxpayerstaxpayers All staff need to be asked for their input on All staff need to be asked for their input on

detailed policies, suggestions for upgrades, etc.detailed policies, suggestions for upgrades, etc.

Review of Existing Facilities & Review of Existing Facilities & BillingBilling

Often multiple bills for multiple facilities Often multiple bills for multiple facilities never meet upnever meet up

Examination of bills can identify areas for Examination of bills can identify areas for opportunityopportunity

Existing facilities review could include basic Existing facilities review could include basic audit or engineering auditaudit or engineering audit Own staffOwn staff Other resourcesOther resources

OpportunitiesOpportunities

IdentificationIdentification Through staff interviews/questionnaireThrough staff interviews/questionnaire Through audit mentioned aboveThrough audit mentioned above Generate a reportGenerate a report

PrioritizationPrioritization Low-cost, done in-house, etc.Low-cost, done in-house, etc.

ImplementationImplementation (WE ID SOME RESOURCES HERE)(WE ID SOME RESOURCES HERE)

MeasurementMeasurement

Ensures that all know what is doneEnsures that all know what is done Ensures that all know policy is being followedEnsures that all know policy is being followed Allows for additional future spending based Allows for additional future spending based

upon successesupon successes Allows for correction of areas where failure Allows for correction of areas where failure

occursoccurs Shows taxpayers fiscal responsibilityShows taxpayers fiscal responsibility

Funding the FutureFunding the Future

Good measurement shows proof of value Good measurement shows proof of value Proof of value shows responsibilityProof of value shows responsibility Responsibility builds trustResponsibility builds trust Trust then allows for “riskier” efficiencies to Trust then allows for “riskier” efficiencies to

be incorporated with their longer paybacks – be incorporated with their longer paybacks – such as alternative energy generation, newer such as alternative energy generation, newer technology installation, etc.technology installation, etc.

Steps to Energy ManagementSteps to Energy Management

Create an Official Policy Create an Official Policy Team or Staff Team or Staff Identify your Energy Use / Identify your Energy Use / Utility Bill AnalysisUtility Bill Analysis Achieving up to 30% Energy SavingsAchieving up to 30% Energy Savings

LED lighting for traffic lights and street lampsLED lighting for traffic lights and street lamps Building energy assessments and action plansBuilding energy assessments and action plans

Where do you start to lower energy Where do you start to lower energy use by 30%?use by 30%?

Learn how to read your utility billLearn how to read your utility bill Microsoft Excel SpreadsheetMicrosoft Excel Spreadsheet

Record monthly utility bills for all metersRecord monthly utility bills for all meters Create charts to provide visual tracking of energy Create charts to provide visual tracking of energy

useuse Energy AssessmentEnergy Assessment

Efficiency of EquipmentEfficiency of Equipment Proper InsulationProper Insulation

What do you Track?What do you Track?

CONSUMPTIONCONSUMPTIONDEMANDDEMANDCOSTCOST

Municipal ExampleMunicipal Example

Visual of local analysisVisual of local analysis Recommended actionsRecommended actions

Comparison Cost in $$ of Comparison Cost in $$ of Incandescent v. L.E.D. per Traffic Incandescent v. L.E.D. per Traffic

SignalsSignals

Incandescent L.E.D.Annual Electric Incandescent L.E.D.Annual Electric FeeAnnual Maintenance FeeAnnualized FeeAnnual Maintenance FeeAnnualized Capital Cost @ 5%Installation FeeTotalCapital Cost @ 5%Installation FeeTotal

Average cost full replacement for 1 Average cost full replacement for 1 intersection (new fixture and lights) =intersection (new fixture and lights) =

Average cost to replace just L.E.D. lights = Average cost to replace just L.E.D. lights =

Annual Energy Cost to Townships for Traffic Signal (or full Annual Energy Cost to Townships for Traffic Signal (or full energy budget) v. other operations costs in the Townshipenergy budget) v. other operations costs in the Township

Create and add (Pie Chart)Create and add (Pie Chart)

Optimal purchase of L.E.D lights at Optimal purchase of L.E.D lights at the least costthe least cost

Purchase SourceCriteria for Purchase SourceCriteria for PurchaseTweaking the SystemBest PurchaseTweaking the SystemBest OptionCOSTARNo – Bid requiredCan OptionCOSTARNo – Bid requiredCan negotiate for a lower pricePennsylvania State negotiate for a lower pricePennsylvania State ContractsEnergy Star Bulk PurchasingContractsEnergy Star Bulk Purchasing

Model bid specification for L.E. D. Model bid specification for L.E. D. light purchaselight purchase

http://www.stillwater.org/agendas/ccagendas/2http://www.stillwater.org/agendas/ccagendas/2007/050707/cc0792.pdf007/050707/cc0792.pdf

ftp://ftp.dot.state.tx.us/pub/txdot-info/gsd/pdf/tftp://ftp.dot.state.tx.us/pub/txdot-info/gsd/pdf/to7057.pdfo7057.pdf for model Bid Specs for model Bid Specs

Financing Your Traffic Signal Financing Your Traffic Signal Upgrade to L.E.DsUpgrade to L.E.Ds

Work into current operating budgetWork into current operating budget Low-interest Bank LoanLow-interest Bank Loan Grant Options Grant Options

The Economics of Street Light The Economics of Street Light Replacement (NOT!)Replacement (NOT!)

Changing to greater efficient street lamps in PECO Changing to greater efficient street lamps in PECO service territory DOES NOT YIELD A COST service territory DOES NOT YIELD A COST SAVINGSSAVINGS

Reduce the number of fixtures in the area, but not to Reduce the number of fixtures in the area, but not to jeopardize safetyjeopardize safety

Check on required lighting levels and do not purchase Check on required lighting levels and do not purchase higher capacityhigher capacity

New York State Energy and Research and New York State Energy and Research and Development Agency - Development Agency - www.www.nyserdanyserda.org.org

Outdoor lighting guideOutdoor lighting guide

Building Audit resulting in Building Audit resulting in Operating EfficiencyOperating Efficiency

Evaluate decisions based on life-cycle costing –Evaluate decisions based on life-cycle costing –(notes Life-cycle cost analysis (LCCA) is a method (notes Life-cycle cost analysis (LCCA) is a method for assessing the total cost of facility ownership. It for assessing the total cost of facility ownership. It takes into account all costs of acquiring, owning, and takes into account all costs of acquiring, owning, and disposing of a building or building system. LCCA is disposing of a building or building system. LCCA is especially useful when project alternatives that fulfill especially useful when project alternatives that fulfill the same performance requirements, but differ with the same performance requirements, but differ with respect to initial costs and operating costs, have to be respect to initial costs and operating costs, have to be compared in order to select the one that maximizes compared in order to select the one that maximizes net savings net savings http://http://www.wbdg.org/design/lcca.phpwww.wbdg.org/design/lcca.php))

Register your facilities with ENERGY STAR Register your facilities with ENERGY STAR Portfolio Manager,Portfolio Manager,

THE 30% BOMA TOP “10” THE 30% BOMA TOP “10” ENERGY DIETENERGY DIET

Check that equipment is functioning as designed. Check that equipment is functioning as designed. Consider your cleaning options (i.e., team cleaning, occupancy Consider your cleaning options (i.e., team cleaning, occupancy

sensors, coordination, and day cleaning when the lights are sensors, coordination, and day cleaning when the lights are already on). already on).

Encourage occupants to turn off equipment...during off hours, Encourage occupants to turn off equipment...during off hours, power everything down. power everything down.

Use high efficiency LED exit signs. Use high efficiency LED exit signs. Institute an energy awareness program. Institute an energy awareness program. Install monitor power management software. Install monitor power management software. Change incandescent light bulbs to CFL or HID. Change incandescent light bulbs to CFL or HID. Harvest daylight. Harvest daylight. Evaluate after-hours usage. Evaluate after-hours usage. Adjust ventilation.Adjust ventilation.

Building Audit resulting in Building Audit resulting in Operating EfficiencyOperating Efficiency

Evaluate decisions based on life-cycle costing –Evaluate decisions based on life-cycle costing –(notes Life-cycle cost analysis (LCCA) is a method (notes Life-cycle cost analysis (LCCA) is a method for assessing the total cost of facility ownership. It for assessing the total cost of facility ownership. It takes into account all costs of acquiring, owning, and takes into account all costs of acquiring, owning, and disposing of a building or building system. LCCA is disposing of a building or building system. LCCA is especially useful when project alternatives that fulfill especially useful when project alternatives that fulfill the same performance requirements, but differ with the same performance requirements, but differ with respect to initial costs and operating costs, have to be respect to initial costs and operating costs, have to be compared in order to select the one that maximizes compared in order to select the one that maximizes net savings net savings http://http://www.wbdg.org/design/lcca.phpwww.wbdg.org/design/lcca.php))

Register your facilities with ENERGY STAR Register your facilities with ENERGY STAR Portfolio Manager Portfolio Manager