Energy Savings Performance Contracts Eddy Trevino State Energy Conservation Office eddy.trevino@cpa.state.tx.us 512-463-1876
LoanSTAR Loans Source MMBtu Consumption Electricity (kWh) Natural Gas (MMBtu) Chilled Water (MMBtu) 12% 23% 65% http://www.energystar.gov/ia/business/evaluate_performance/site_source.pdf
LoanSTAR Energy Savings Performance Contracts Higher Education Higher Education, 2 4% Hospitals Hospitals, 1 1% State Agencies State 11 Agencies 37% 37 $131,230,699 Local Local Governments Governments School Districts 15 49% School Districts 8 9% Average Payback = 8 yrs.
Performance Contracting Statutes • Education Code – Public Schools (K-12): Section 44.901. Energy Savings Performance Contracts – Public Higher Education: Section 51.927. Energy Savings Performance Contracts • Government Code – State Agencies: Section 2166.406. Energy Savings Performance Contracts • Local Government Code – Cities and Counties: Chapter 302. Energy Savings Performance Contracts for Local Governments
Related Legislation in 83R SB 533 Author : Zaffirini Sponsor : Keffer Caption : Relating to a review of cost savings to state agencies and institutions of higher education under energy savings performance contracts. • Amends Section 2166.406 of the Government Code • Requires the State Energy Conservation Office (SECO) to review reports submitted by state agencies that measure and verify cost savings and provide periodic analyses of those cost savings to the agencies and the Legislative Budget Board.
Typical Objections • Don’t want to add debt • ESPC too expensive – Perception of vertical margin stacking • CFO doesn’t understand the process – Different approaches and contracts by different ESCOs • What is being guaranteed? • Lack of trust or skepticism • Requires long term relationship • Lack of understanding of how debt fits into accounting structure
Eddy Trevino, PE eddy.trevino@cpa.state.tx.us 512 463 1876
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