CCC/IOU Energy Efficiency Partnership

The CCC/IOU Partnership and Proposition 39

Construction Management Association of America SoCal Chapter - Los Angeles, CAJune 25, 2014

Susan Yeager, Administrator, Facilities Planning & UtilizationCCC Chancellors Office

Lisa Hannaman, Account Manager, Institutional Partnerships Southern California Edison

Fred Diamond, Citrus Community College Director of Facilities and Construction

Nelson Oliveira Jr., Glendale Community College Director of Facilities & Construction

2009 ACBO Conference1California Community CollegesSystemwide Detail72 districts encompassing 112 colleges, 72 approved off-campus centers and 23 separately reported district offices

Includes 24,279 acres of land, 5,281 buildings, and 75.6 million square feet of space

2.4 million students annually 75% of the states public undergraduate students25% of community college students nationwide

2Susan2CCC Systemwide Facilities Needs10-year Facilities Needs = $35 billion

Enrollment Growth Needs = 13.3 million new ASF

Modernization Needs = 30.5 million existing ASF67% of buildings: over 25 years old46% of buildings: over 40 years old

3Susan3Bonds for CCC FacilitiesState Bonds since 20002002, 2004, and 2006 Bond ActsTotal available $3.34 Billion55% of Higher Education bondsLocal GO Bonds since 200065 of 72 DistrictsTotal approved $26.2 BillionLeverages state-funded projectsFunds 100% non-state supportable projects

4Susan42014 Education Bond BillAB 2235Education facilities: Kindergarten-University Public Education Facilities Bond Act of 2014K-12$2.25 New Construction$3.25 Mod$500 million ChartersHigher Ed$2 billion CCC$500 million UC$500 million CSU

Status: Passed Senate High Education committee with amendment. To Governance and Finance Committee June 25th, 2014.5Susan5Proposition 39Adopted by the voters in November 2012 to close corporate tax loopholes and will provide roughly $550 million annually to K-12 and CCCs for Energy Projects for five yearsCCCs will allocate $31.6 million for FY 2014-2015 distributed on an FTES basis to all CCC Districts for energy efficiency and renewable generation projectsFunding approved annually by legislature with state budget

66Proposition 39: ImplementationCCC Chancellors Office works with Districts and CCC/IOU Partnership to identify and fund projectsImplementation parallels CCC/IOU Partnership process to combine Prop 39 funds and leverage utility incentives. IOUs provide technical assistance to identify and develop projectsChancellors Office works with POUs to coordinate processes, services, and any incentivesA Program Consultant contracted through CCCCO to provide program administration and technical assistance

7Susan 7The ProcessCCC Program GuidelinesReflects requirements of Prop 39 enabling legislation SB 73Issued by Chancellors Office and defines process and requirementsProject qualification criteriaFunding application process and approvalsM&V and Reporting RequirementsMonthly approvals and fund disbursement through state apportionment processGuidelines are for CCCs only. CEC has issued separate Guidelines for K-12

Lisa8Proposition 39 GuidelinesThe Guidelines provide step-by step instructions for Proposition 39 Implementation 3 Primary PhasesLisa9Prop 39 Year 1 Survey Results

Lisa10Year 1: 2013-14 Prop 39 Success $39.67M of $39.8M in Funding Allocated $128,635 will be reapporpriated to 2014-15$5.3 of $6M for workforce developmentAll 72 Districts participating $6.8 Million in Utility Incentives 313 Projects: 29% will complete by June 30, 2014.Resulting in ANNUAL energy cost savings of $4.6 million to Districts!11Lisa11Year 1 Project Types12Project Type Count% of Total ProjectsLighting17154.63%HVAC5918.85%Controls4815.34%Other 154.79%RCx144.47%Technical Assistance30.96%Self- Generation20.64%MBCx10.32%Total Projects313Lisa12

Impact of Proposition 39 13Lisa13FY 14-15 Proposed Budget $31.6M 20% less fundingYear 2 Projects: Over 200 already submitted25+ Solar Projects68/72 Districts have projects identified $42M est. Construction Costs Focus on more comprehensive projects with higher energy savingsYear 2 Budget and Pipeline14Lisa14Contracting Requirements: Projects funded by awards shall require contracts that identify the project specifications, costs, and projected energy savings.a community college shall not use a sole source process to award funds pursuant to this chapterDistricts may use Government Code 4217

District Annual Expenditure Report: Not sooner than one year but no later than 15 months after completion of its first eligible project, District shall submit an Annual Expenditure ReportJob Tracking Form: Direct FTE & Trainees created from Prop 39 implementation

State Compliance: District Prop 39 expenditures will be subject to an annual state compliance test as outlined in the Contract District Audit Manual

Key Issues15Lisa15Prop 39 and the CCC/IOU PartnershipCCC Guidelines Leverage Partnership Processes, Services, and IncentivesDistricts should work with IOUs to identify projects, prepare energy calculations, and submit both incentive and Prop 39 funding Project M&V and Reporting will be facilitated by utility processYour Success is our Success!We both want Energy Savings16Lisa2009 CCLC Trustee's Conference 2009 CISOA ConferenceProgram Incentives for 2013-14MEASUREINCENTIVE RATEElectricity$0.24 / kWhPackaged HVAC, HVAC Controls, Motors, DrivesLighting, Lighting Controls, DaylightingCentral Plants, Chiller Retrofits, and other major Energy Efficiency Infrastructure ProjectsMonitor Based Commissioning (MBCx) IT ProjectsNatural Gas$1.00 / thermALL Gas Measures

17Lisa2009 CCFC Conference17Prop 39 ChallengesOpportunities &Team StrategiesFred DiamondDirector of Facilities & ConstructionCitrus College

Opportunities for SuccessCM Opportunities

The first rule of successKnow your businessKnow your clientKnow the programKnow where to go

19Overcoming ChallengesProject lead times may impact deliveryMaterial supplies (supply vs. demand)Public Contract Code requirementsIn-house labor limitationsConsultant and vendor limitationsThink ahead for success

20StrategizingCommunication is criticalFacilities / vendorsestablish relationshipsPlan your strategy prior to procurementKnow your project thoroughlyLimit substitution times per PCC 3400CollaborateNotice of Intent to AwardONE person should be in chargeSuccess awaits!!

21Utilize your AssetsCalifornia Community CollegesEnergy Project Guidance pamphletCCC-IOU Partnership Management TeamChancellors OfficeUtility Account ExecutivesIndustry ProfessionalsFellow ColleaguesDont hesitate to ask questions!

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ENERGY CONSERVATION & MODERNIZATION FOR GLENDALE COMMUNITY COLLEGEJune 25, 2014Nelson Oliveira, Jr., CHFM, CHSP, LLB, MBAAdd notes23Glendale Community CollegeFounded in 1927Campus established in 193615 permanent buildings sit upon 100+ acres900,000+ Square Feet of conditioned spaceLab College Services Building, currently in construction; three-floor, 90,000 sq ft 25,000 Day and Evening student population

Facility Modernization Needs - BackgroundObtain a better window into where our money is being spent on facilitiesCurrent Maintenance PracticesPrimarily needs basedReactionaryFix when brokenMinor work order managementReduce operational expenditures and control increasing energy costs

Needs of the CampusTell story about coming from a hospital to Glendale and what was noticed about not having a Facilities Management Plan in place and the constant reaction mode the college was facing.25Road Map to a Successful Program

Engaged a partner that understands systems to assist our team to better understand our facilities, optimize and leverage funding resources to get more done. Combination of internal/external resources -- leveraging the intelligence of our staff with the expertise of an external partner26Phased Approach to Facility OptimizationTo address the problems of an aging infrastructure, we worked with our energy partners and developed a three-phase plan.

Implementing each phase will save energy, modernize facilities, improve the learning environment, and demonstrate a commitment to sustainability.

Identified roughly 45 Facility Improvement Measures (FIMs) to be implemented over a 5 year period using Prop 39 as anchor funding.Aging Dx condenser unit at Arroyo Seco that will be eliminated(total of 7 -9 Dx systems will be eliminated across campus through central plant expansions)

Add notes27Phase 1 - Program OverviewLeverage funding sources to stretch District funds

ScopeProgram Cost1) Entire 1st Phase Engineering and DSA Submittals2) Campus Wide Electric Submeters3) Library Lighting4) Advanced Tech Lighting5) Aviation Arts Lighting6) Health Science Lighting7) Health Science RCx8) San Gabriel Lighting9) San Gabriel RCx10) Arroyo Seco Lighting11) Arroyo Seco Fume Hood Retrofit12) CP-2 Optimization13) Library Mech & Controls Upgrade14) Advanced Tech Mech & Controls Upgrade15) Library MZ AHU Upgrade to VAV$2,552,12628Phase 1 - Program OverviewLeverage funding sources to stretch District funds

FundingOn-Bill FinancingProp 39GWP RebateSo Cal Gas RebateScheduled MaintenanceMeasure G$ 277,124$ 1,004,550$ 100,000$ 59,802$ 564,298$ 546,35229

Thank YouClosing RemarksThank you!Questions?31Contact InformationNameOrganizationE-mailPhoneSusan YeagerCCCCOsyeager@cccco.edu(916) 324-9508Lisa HannamanSCELisa.Hannaman@sce.com(714) 895-0616Nelson OliveiraGlendale Collegenoliveir@glendale.edu(818) 240-1000Fred DiamondCitrus Collegefdiamond@citruscollege.edu(626) 914-8691Dave HatherPG&Edth2@pge.com(916) 386-5007Sarina DitoPG&ESCU1@pge.com(415) 973-0777Paul DeangSCGPDeang@semprautilities.com(213) 444-8961Lori AtwaterSCELori.Atwater@sce.com(626) 302-0502 Linh-Chi HuaSDG&ELHua@semprautilities.com(619) 206-1040Matt SullivanNewcomb Anderson McCormickmatt_sullivan@newcomb.cc(415) 896-03002009 ACBO Conference32Facility Condition AssessmentRCx InvestmentGrade AuditSystematic Approach to Optimal Facility Performance

Understand where operational dollars are actually being spent and the current mission of the facility Reduce unnecessary investments being made in a building that is inherently inefficient Optimize facility efficiency (=operational cost savings) Make efforts to improve the energy baseline before capital investments are made Incorporate no-cost, low-cost measures first Assess required capital improvements to optimize current facility objectives Customize long-term planning based on actual facility conditions Install supply-side measures based on optimized facility energy demand