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A Groundbreaking High-Performance Building District in Downtown Seattle
EFFICIENCY FINANCE WORKSHOPS
Session 1. Project Financing and Project Opportunities
Performance Targets
The 2030 Challenge for Planning Existing Buildings
+
10%
20%
35% 50%
50% reduction in water
consumption
50% reduction in Vehicle Miles Traveled (VMT) for auto and freight
STATEMENT OF ENERGY PERFORMANCE Seattle 2030 District Office Building Building ID: 0000000
For 12-month Period Ending: Dec 31, 20121 Date SEP becomes ineligible: N/A Date SEP Generated: Jan 20, 2013
Facility
Seattle 2030 District Office Building
2030 District Seattle, WA 98104
Year Built: 1987
Gross Floor Area (ft2): 350,000
Energy Performance Rating2 (1-100) 60
Site Energy Use Summary3
Electricity - Grid Purchase(kBtu) 22,866,666
Natural Gas - (kBtu)4 11,433,334
Total Energy (kBtu) 34,300,000
Energy Intensity5
Site (kBtu/ft2/yr) 98 Source (kBtu/ft2/yr) 252
Emissions (based on site energy use) Greenhouse Gas Emissions (MtCO2e/year) 3,233
Electric Distribution Utility
Seattle City Light
National Average Comparison
National Average Site EUI 110 National Average Source EUI 283
% Difference from National Average Source EUI -11%
Building Type Office/Retail
S2030D Preliminary Assessment results
savings $$
operational savings
system upgrade savings
shell improvement savings
water savings
cost $$ operational costs
system upgrade costs
shell improvement costs
water improvement costs
20% - $ 52,185
60% - $ 156,556
20% - $ 52,185
$ 9,736
4% - $ 65,232 - payback – 1.25 years
43% - $ 782,781 - payback – 5 years
53% - $ 974,476 - payback – 18.75 years
$ 68,152 - payback – 7 years
- and -
General Funding Guidelines
• Pre-approval required
– Bring your ideas, even before the project has been clearly defined
– Site visits can help assess opportunities
• Incentive amount
– based on total energy saved and measure life
– Funding capped at 70% of total cost (SCL and PSE)
• Post-Installation
– Inspection to confirm equipment and operation; may require trend-logs or metering
– As-built conditions used to calculate final savings
SCL Commercial & Industrial kWh
Savings Breakdown
HVAC
20%
Lighting
53%
Refrigeration
8%
Other
19%
- and -
Technical Assistance
• Site Visits
– Recommendations for energy conservation and O&M measures
– Identify measures that qualify for financial incentives
– Review/assess bids for funding
• Energy Analysis Assistance (SCL)
– Funding for in-depth energy analysis done by a consultant or a design team
– Ranked recommendations by cost/benefit analysis
• Lighting Design Lab Assistance
– Design assistance and mock-up services
– Education and training
8
- and -
Prescriptive Rebates (SCL and PSE)
• Fixed amount per unit
• Pre-authorization required
• Typical Rebates
– Occupancy sensors for lighting (SCL, PSE)
– Commercial kitchen equipment (SCL, PSE)
– IT server virtualization (SCL)
– PC power management and thin Client (SCL, PSE)
– HVAC equipment (PSE)
9 Conserving Today. Sustaining Tomorrow.
- and -
Standard Incentives (SCL)
• For common measures in existing
buildings
– Lighting retrofits (fluorescents, exit signs, LEDs, etc)
– Lighting controls (central and OS)
– Chillers (air and water cooled)
– Air conditioners (Standard, CRAC, and PTAC)
– Heat pumps (air to air, hydronic, and PTHP)
– VSDs for Fans and Pumps
• Pre-formatted workbooks
– Estimates savings and incentives
– Can be filled in by contactors, customers or SCL
energy analyst, step by step instructions
– Contains all documents required, download via web
10 Conserving Today. Sustaining Tomorrow.
- and -
Custom Incentives (SCL and PSE)
• Customized calculations for non-
routine measures
– Typically includes multiple systems
– May require pre-monitoring to determine
baseline
• Incentive based on savings and
measure life
• Numerous applications
– HVAC (controls, heat recovery, chillers
and cooling towers)
– Data centers (hot/cold isle)
– Special environments (labs, industrial,
etc)
11 Conserving Today. Sustaining Tomorrow.
- and -
Potential Incentives – Sample Building
• Lighting
– Prescriptive and standard incentives to upgrade lighting and lighting controls
• HVAC Systems and Controls
– Standard and/or custom incentives to upgrade equipment and controls
• Shell Measures
– Custom incentives for insulation, sealing, improved glazing, etc
• Retro Commissioning
– Enroll building in Retro commissioning program to capture operational savings
12 Conserving Today. Sustaining Tomorrow.
Savings % of
Total Use
Savings
kBtu
Savings
Measure
Savings
kWh
Savings
therms
Electric Gas
Current Energy Use 34,300,000 6,701,836 114,333
Operational Savings 8.8%3,018,400
Retro-
commissioning 884,642 $53,079
Lighting 444,533 $102,243
HVAC 1,333,598 29,882 $306,728 $149,411
Shell Improvement Savings 8.8% 3,018,400 Shell 592,710 10,172 $59,271 $50,860
Total Savings 44.0% 15,092,000 3,255,484 40,054 $521,320 $200,271
System Upgrade Savings 26.4% 9,055,200
$ Utility Rebates
- and -
Contact us to get Started
• Please remember to contact us BEFORE you start a project so
that we can discuss eligibility and help you with the rebate
process
13 Conserving Today. Sustaining Tomorrow.
• Call us: (206) 684-3800 Seattle City Light Energy
Advisors
• Email us:
• Visit us online:
www.seattle.gov/light/conserve
• Call us: (800) 562-1482 Puget Sound Energy
Advisors
• Visit us online:
http://www.pse.com/savingsandenergycenter/ForBusinesses/Pages/Co
mprehensive-Building-Tune-Up-Program.aspx
Energy Services Contracting
Design-spec-build
• Segmentation
• 1st cost
• Task/problem driven
• Diffused responsibility
Integrated Delivery
• Single point of accountability
• Total Cost of Ownership
• Holistic view and deep dive on building systems
• Fix the root cause, not the symptom
• Guaranteed project outcomes
• Cost
• Savings
• Take advantage of grants and incentives
• CPW
• P4P/Utility rebates
• Low–cost financing
A different mindset
Optimizing the Capital Stack
Utility Rebates
10%
Incentives 15%
Debt 50%
Cash 25%
Energy Services Contracting Financing • ESCO finance
• ESCO Brokerage
• See handout for cash flows of model building at commercial rates
• Property Assessed Clean Energy (Commercial PACE)
• Senior lien property tax assessment to fund efficiency measures and/or renewable energy on private commercial property
• Concept in infancy, slowly gaining traction
• Not available in Washington State at this time
• Qualified Energy Conservation Bonds
• With enactment of King County’s Green Community Initiative, private property owners will be able to access QECBs for energy efficiency improvements
• QECBs enable rates of ~ 2.0%-3.0% and tenors up to 24 years
• See King County Green Community Initiative handout
Contact: Rachel Brombaugh, [email protected], (206) 832-8132
The Sustainable Energy Program: Qualified Energy Conservation Bonds and Beyond…
Avi Jacobson Senior Sustainable Energy Coordinator Washington State Housing Finance Commission [email protected] 206-254-5359
The Sustainable Energy Program
• Introduction
• What are QECBs? How Do They Work?
• QECB Aggregation Efforts
• Green Communities Programs
• Sustainable Energy Trust
• Conclusion
• Questions
QECB Aggregation: WSHFC as State QECB Clearinghouse
• Washington State:
o $67.8M Allocated across WA
o ~$32M Issued
o In conjunction with WA Department of Commerce, have contacted all jurisdictions with remaining QECB Authority
o $27M reallocated to WSHFC, $13.5M+ issued, more promised so far…
What is a Green Community Program?
Two Required Elements:
• Program Purpose
• Program goal must be to promote energy conservation, energy efficiency or environmental conservation initiatives related to energy consumption.
• General Public Use or Broad Public Availability
• Financing must involve either:
• Property available for general public use, or
• Loan or grant program broadly available to members of the general public.
Financing Energy Efficiency Projects:
Presented by:
Dan Clarkson
Energy Efficiency Finance Corp.
206-310-8733
Energy Efficiency Pays Off
Offer to Building Owner
• Energy Services Agreement (ESA)
• No upfront capital costs; preserve capital for other purposes
• Turnkey implementation by ESCO: engineering, equipment
procurement, installation, commissioning, services, savings
monitoring, savings guarantees
• Grant/incentive funds used for subordinated debt financing,
debt service reserve, & carbon reduction incentives
• Project paid through operating cost savings; breakeven
savings are guaranteed by ESCO
• Payments on utility bill reduces risk for investor
How it Works
Customer Energy Capital
Solutions ESCO
Sub-Loan
CPW
Seattle City Light
Energy Utility Steam &
ESA Payments EE project payments via Escrow Services
Agreement
Energy Services Agreement Turnkey
Project
Utility Incentives
Energy supply
Incentive &
Reserve
Fund Retail Lock Box
ECS Cashflow Model
0
200000
400000
600000
800000
1000000
1200000
Year -3 Year -2 Year -1 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Utility Costs
ESA Payments
Cumulative Customer Savings
Retrofit 22%
Savings Net Customer Savings
