Georgias Energy Efficiency Financing Options Managing Energy at - PowerPoint PPT Presentation

Georgia’s Energy Efficiency Financing Options Managing Energy at Your Small Drinking Water System Chris White, P.E. cwhite@gefa.ga.gov (404) 584-1089 January 24, 2015

Energy Resources Division • Georgia Energy Challenge • Weatherization • State Energy Program • State Utilities Program • Energy Assurance • State Energy Strategy • K-12 Building Operator Certification • Performance Contracting 2

Energy Efficiency Financing Why is Energy so Important? • Water and Wastewater Treatment System can represent 1/3 or more of your city’s energy spend • Most systems can be improved 15-30% or more • Energy Efficiency is reduction in waste What are the options for Financing Improvements? BUDGET BONDS QECB LOANS TAXES EPC 3

Energy Efficiency Financing Financing Projects with Budgeted Funds • Familiar • Takes Planning – often limited by department • Needs to be high enough priority – competes with other needs of the city • Requires vision of what should be included BUDGET BONDS QECB LOANS TAXES EPC 4

Energy Efficiency Financing Financing Projects with Bond Funds • Familiar • Creates debt • Cost of issuance can be high • Needs to be high enough priority – competes with other needs of the city • Requires vision of what should be included BUDGET BONDS QECB LOANS TAXES EPC 5

Energy Efficiency Financing Financing Projects with QECB Funds Qualified Energy Conservation Bonds • Creates debt like bonds • Opportunity for lower interest rate (70% subsidy) • Cost of issuance can be high (like bonds) • Needs to be high enough priority – competes with other needs of the city • Requires vision of what should be included • 20% Energy Savings or Green Community Program compliant • Davis Bacon Labor Rate & Fed Reporting Compliance required BUDGET BONDS QECB LOANS TAXES EPC 6

Energy Efficiency Financing Financing Projects with Loan Funds • State/Federal Revolving Fund Sources • GEFA administers these with location limitations • Creates Debt usually with very low interest rates BUDGET BONDS QECB LOANS TAXES EPC 7

Energy Efficiency Financing Financing Projects with Taxes Funds • General Fund (See Budget) • LOST/SPLOST BUDGET BONDS QECB LOANS TAXES EPC 8

Energy Efficiency Financing What is Energy Performance Contracting? Off Balance Sheet Shared Savings Lighting Retrofit Municipal Lease Energy Service Provider ESP Energy Service Company ESCO Guaranteed ECMs ESA MESA M&V 9

Energy Efficiency Financing What is Energy Performance Contracting? • One company evaluating, designing, installing and (operating) equipment in buildings • Guaranteed results (energy and water savings) • Annual Measurement and Verification • Guaranteed savings in Utility Spend covers contracted costs • Leveraging reduction in waste for benefit 10

Energy Performance Contracting Energy Service Provider [ESP] or Energy Service Company [ESCO]) GEFA Prequalified Energy Service Providers ABM AECOM AMERESCO ConEd Solutions Constellation Energy Energy Systems Group Honeywell Johnson Controls Inc. McKinstry NextEra Energy Solutions NORESCO OpTerra Energy Solutions PEPCO Schneider Electric Siemens Trane 11

Utility Expenses Utilities & Maintenance Debt Service Payments Measurement & Verification Service Training 12

Energy Performance Contracting When to use Energy Performance Contracting? • Curious about what is possible for buildings • No budget for self funded work • Limited experience with engineering systems • Needs that require bundling to make project feasible • Opportunity to document/monitor utility savings 13

Energy Performance Contracting Benefits • Very flexible and adaptive to customer needs • Contractually guaranteed & measured savings • Integrated project analysis, design, and construction • Long term monitoring of savings and performance • Up-to-date training for facility operating personnel • Services and materials based upon quality and life cycle value, rather than only on lowest first cost • Single point of responsibility for performance 14

Energy Performance Contracting How to get started? • Contact Energy Service Providers • GEFA Prequalified ESPs https://georgiaenvironmentalfinanceauthority.quickbase.com/ db/bi42hbjwm?a=td • Use Consultant familiar with Energy Performance Contracting • Contact GEFA (Questions, template documents) https://georgiaenvironmentalfinanceauthority.quickbase.com/ db/bi7e7gpwt?a=td 15

Conclusions & Questions 16

Chris White, P.E. State Utilities Program Manager, Energy Resources Division (404) 584-1089 cwhite@gefa.ga.gov ¡ 233 Peachtree St., NE Harris Tower, Suite 900 Atlanta, Georgia 30303