Criteria for Evaluating Worthy Efficiency Projects and How to Fund ThemTrack AUS1802

1 hour

Conference for Catholic Facility Management (“CCFM”)G460

Criteria for Evaluating Worthy Energy Efficiency Projects and How to Fund Them

AUS1802

CCFM Energy & Environment CommitteeApril 09, 2018

Credit(s) earned on completion of this course will be reported to AIA CES for AIA members. Certificates of Completion for both AIA members and non-AIA members are available upon request.

This course is registered with AIA CES for continuing professional education. As such, it does not include content that may be deemed or construed to be an approval or endorsement by the AIA of any material of construction or any method or manner ofhandling, using, distributing, or dealing in any material or product.______________________________________

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Conference for Catholic Facility Management (“CCFM”)

© CCFM 2018

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Reducing energy consumption at your facility is a proven way toallocate more money to your core mission. But with all the energyefficiency projects available how do you evaluate the project orprojects that will have the greatest return on your investment? Andonce you identify a viable efficiency project, how does yourorganization pay for it? This session will provide answers to thesequestions and valuable insight from our committee members whohave been through this process in different areas around the country.In addition, committee members will identify a variety of no-cost andlow-cost energy conservation measures available to congregations.

CourseDescription

LearningObjectives

1. At the end of the program, participants will be able to determine what makes an energyefficiency project viable using case studies and examples.

2. At the end of the program, participants will be able to identify the stakeholders in theirorganization that will support energy efficiency projects, using examples.

3. At the end of the program, participants will be able to understand the process by whichArchdiocese of New York and the Diocese of Fresno have implemented energy-saving projects,and how their lessons learned may be relevant to your diocese or religious organization, usingexamples and lessons learned.

4. At the end of the program, participants will understand many of the resources available tothem to support energy efficiency projects, using examples.

At the end of the this course, participants will be able to:

ADNY Footprint

Vision & Mission

Goal

Energy Audits

LED Lighting Upgrades◦ Funding

◦ Results

Other Initiatives

Spread across 10 counties◦ Staten Island, Manhattan, Bronx, Westchester,

◦ Putnam, Dutchess, Ulster, Sullivan, Orange, Rockland

294 parishes

1900 buildings

100+ elementary schools

12 High Schools

NY Catholic Center

St. Joseph Seminary

Cardinal O’Connor Residence/Egan Pavilion

Vision

◦ Become a regional leader in energy conservation and carbon reduction by implementing energy savings improvements across all ADNY facilities to preserve asset values and sustainability.

Mission

◦ Work with parishes, schools, and key stakeholders in planning and implementing energy conservation measures which will help reduce greenhouse gas emissions and the energy expense associated with facilities operations

Reduce the roughly $40 Million spent annually on energy across the ADNY portfolio by 10%.

Blueprint of where parish is currently using energy and recommendations on how to be more efficient.

50% funded by New York State Energy & Research Development Authority (NYSERDA).

Specific energy conservation measures (ECMs) recommended with estimated cost, energy savings and payback period.

Energy Audits # of Parishes

Total Completed 104

Renew & Rebuild Capital Campaign 69

Post-audit implementation meetings completed

93

Parishes implementing ECM projects

84

Estimated annual $savings of ECMs being implemented

$1,388,485

LED lighting upgrades recommended in nearly every energy audit.

All four Utility Companies that service the ADNY offer attractive incentives to install LED lights (average 56%).

Short Payback period (average 15 months).

Relatively low out of pocket cost ($10-30K/parish).

LED lights are 75% more efficient than traditional light bulbs.

Lower maintenance costs because of longer lifespan of LEDs.

Better lighting proven to improve grades and test scores.

Available parish cash.

Restricted capital fund for regional schools.

Short term, low interest ADNY loan tied to short payback period of LED upgrade.

LED Lighting

# Parishes Average Utility Incentive

Estimated Annual $avings

Average Estimated Annual $avings/Parish

Average Payback Period(Months)

Cost proposals received

118(61 moving forward)

56% $2,016,081 $17,085 15.3

Install complete/underway

49/21 56% $989,358 $16,219 14.4

Martin Susz, Director of Energy Management

◦ martin.susz@archny.org

◦ 212-371-1011 Ext. 2957 or 646-236-8954

23

The Roman

Catholic Diocese

of Fresno

Presentation Goals

Key Emphasis: If you can’t fund it……….several unique and novel ways of financing the projects are presentedKey Results: Several millions of dollars of annual utility & operating costs are eliminated.Key Take Away: EE & Solar Measures, Processes and Funding Methods are presented which you can adapt for immediate use in your Diocese

Presentation

➢ the “Process” - Energy Assessment & Feasibility Study……..use a practical

method and experienced help

➢ the Reference Design……from the “As Is” to the “To Be” with introduction

of some new technologies

➢ the Contractor Certification, RFP and Competitive Quote……use a

structured methodology

➢ the Comparative Analysis of the Bids…..normalize the offerings and

reduce to a few key Figures of Merit

➢ the Contract Award, Contracting & Procurement…..Best Value and

Cost of Ownership vs. Lowest Price

➢ Funding & Financing…….Non-Profit entities are unique.

➢ A Case Study – St. Paul Catholic Newman Center

➢ Mistakes, Pitfalls and Misconceptions…….nothing ever goes perfectly

➢ Q&A

The Roman

Catholic Diocese

of Fresno

The Roman

Catholic Diocese

of Fresno

What we’ve done so far…

The Roman

Catholic Diocese

of Fresno

The Roman

Catholic Diocese

of Fresno

The Roman

Catholic Diocese

of Fresno

The Roman

Catholic Diocese

of Fresno

Case StudySt. Paul Catholic Newman Center,

Fresno, CA

The Roman

Catholic Diocese

of Fresno

The Roman

Catholic Diocese

of Fresno

The Roman

Catholic Diocese

of Fresno

The Roman

Catholic Diocese

of Fresno

The Analysis Methodology

The three qualified bids were clarified and normalized to one key financial metric, Cost per kWh produced over the 10-Yr financed

period. The key qualitative parameter used is % compliance to the RFP.

Step 1: Determine the Key Figure of Merit for each Bid

Let’s review the K12 Cost Worksheet for both the Parish and the School to understand how the Key fom is calculated

Step 2: Determine which Bid is the Best

Let’s review the included Comparison Matrix Worksheets for both the Parish and the School which lead to the conclusion that the

K12/SEL Proposal is the Best by a wide margin. It is also the only proposal without an annual PPA Payment Escalator which enables a

decreasing monthly payment each year.

Step 3: Determine the Horizon (25 Yr) ROI of the Best Bid

Let’s review the Solar Energy Savings Schedules for both the Parish and the School to determine if the overall project using K12/SEL

still has a good ROI

The Roman

Catholic Diocese

of Fresno

The Roman

Catholic Diocese

of Fresno

This concludes The American Institute of Architects Continuing Education Systems Course

Conference for Catholic Facility Management (“CCFM”)

Andy Guljas317.525.7176

Energy & Environment Committee