Financing Energy Operations in Schools

Peter Lindstrom

Summer Institute for Climate Change Education

June 17, 2015

Mission: We connect individuals and their communities to the resources they need to identify and implement

community-based clean energy projects

CERTs: Minnesotans Building a Clean Energy Future

Partnership

• B3 Benchmarking

• Guaranteed Energy

Savings Program

• Community Solar

Gardens

• Third Party Solar

• SEED Grants

What Will Be Covered?

Save $1

Trillion…

in buildings

alone

“You can’t manage what you don’t measure”

“We use B3 Benchmarking to see how we are doing compared to other schools. Because there are so many schools using it, I believe it’s the best tool for a MN school to gauge progress, set goals, etc.”

Lisa Johnson

ISD 197 West St. Paul-Mendota Heights -Eagan

Addressing Deferred

Maintenance

Utilizing technology

more effectively

Building upgrades

Meet Energy Goals set by

Elected Officials

High energy costs

Your Challenges Operational

Costs

Limited Funds & Time

Savings from building energy upgrades are used to pay for projects

Performance Contracting

$

Guaranteed Energy Saving Program is Budget Neutral

Existing energy,

maintenance & operation

costs

Savings Fund Improvements

Existing energy,

maintenance & operations

costs

Existing energy,

maintenance & operation

costs

Ongoing Savings

Before During After

What Kind of Projects?School Projects to Consider:• Upgrading to High efficiency boilers & chillers

• Converting to ground-source heating & cooling

• Retrofitting to efficient lighting

• Installing heat recovery equipment

• Redesign HVAC system

• Adding solar energy systems

• Increasing water conservation

Schneider Electric – Buildings Business 12

Long Payback

Cost Savings

Quick Payback

Cost Savings

BUNDLING: A comprehensive approach

• Lighting

• Vending Machine

Controls

•VFDs

• Chiller

Replacement

• Boiler

Replacement

• Air Handling Unit

Replacement

13

Reduce

Energy Use

Operation & Maintenance

Costs

Renew

Facility Infrastructure

Occupant Comfort, Health &

Safety

Achieve

GHG Emission Reduction

Job Creation

Use of Renewable Energy

Budget Neutral – No Bond Funds Required

14

Organizational Goals

Facility Issues

Resource Needs

• Reduction in Energy Use

• Reduction in Greenhouse Gas Emissions

• Use of Renewable Energy

• Job Creation

• Occupant Comfort

• Health & Safety

• Deferred Maintenance

• Energy Price Uncertainty

• Budget

• Manpower / Capacity

15

State Provided Technical, Financial and

Contractual Assistance

Vetted Documents: RFP, Master Contract,

Work Order Contract

• Open Book Pricing & Maximum

Markups and Fees

• Competitive Bidding of Trade Work and

Equipment with Pre-qualified Sub’s

• Annual Savings Guarantee

• Measure & Verification Guidelines

• Pro Forma Guidelines

• Third-Party Review of M&V Report

16

Process Step Activity Milestone

Opportunity Assessment

Meetings with Dept. of Commerce to review GESP, B3 data, facility needs, issues, and goals

Joint Powers Agreement

Define Project Goals Energy Savings; GHG Emission Reduction; Renewable Portfolio; Job Creation

Issue Site-Specific RFP

ESCO Selection RFP evaluation and ESCO selection Issue Work Order Contract

Project Development Perform Investment Grade Audit to develop projectscope, cost, savings and funding

Issue Work Order Contract Amendment

Project Implementation Installation of Energy Conservation Measures Certification of Final Completion and Acceptance

Performance Period Review Measurement &Verification Reports Annual M&V Report

Pre-Qualified Energy Service Companies:• AMERESCO, Inc.

• Chevron U.S.A. Inc.

• Consolidated Edison Solutions, Inc.

• Control Technology & Solutions LLC

• Harris Mechanical Contracting Company

• Honeywell

• Johnson Controls, Inc.

• McKinstry Essention, Inc.

• Noresco, LLC

• Siemens Industry, Inc.

• Trane U.S. Inc.

State: Technical Assistance• Contractual

• Financial

• Legal

• Administrative e.g. approval process

Who performs the work?

GESP: “Very Beneficial and Helpful”

Benefits of GESP:

Renews infrastructure

Complete Process

Repurpose dollars

Access to private-sector expertise

Less vulnerability to volatile energy prices, weather, and equipment failure

Progress in meeting your sustainability goals

Reduces Taxpayer Risk

Guarantee on energy savings through on-going savings measurement and verification

Cities Bemidji

Rochester

Tracy

Counties Cottonwood

Schools Anoka-Ramsey CC

MN State Mankato

Riverland CC College

State Agencies

National Guard

Who has signed on so far?

School Benefits: • Improve student performance

• Increase student, teacher and staff attendance

• Boost teacher morale and retention

• Strengthen community spirit, because you have schools that work

Definition:Centrally-

located solar PV systems

that provide electricity to participating subscribers

Community Solar Gardens (CSG)

This can be you!

Current projects

How does it work?

Cooperative or Municipal Utility Programs

• Utility contracts with developer to set up garden.

• Utility operates garden and handles all aspects of relationship with subscribers.

DEVELOPER: installs & assists financing project

UTILITY: hosts & manages garden

SUBSCRIBERS: individuals or groups to get solar power

How does it work?

Xcel Energy Program

OPERATOR: primary group running the solar garden

UTILITY: approves garden, tracks production, provides credit.

SUBSCRIBERS: individuals or groups to get solar power

• 3rd Party operator develops & runs garden.

• Maintains relationship w/ subscriber for payment.

• Utility provides subscriber w/ bill credit.

Community Solar Subscriber Collaborative

Third Party Solar“Showcasing the importance of sustainable energy is an amazing opportunity

for our school and our students. This project will ensure reliable energy costs

for our school district over the next 15 years, allowing us to direct funds to other

important projects.”

Mark Frederickson

Principal, Waconia High School

NEW LONDON-SPICER SCHOOLS

Solar Active Greenhouse and Wind Turbine

Learn More:

mncerts.org