proposition 39: maximizing energy and cost savings...proposition 39: maximizing energy and cost...

Proposition 39: Maximizing Energy and Cost Savings

CCLC Annual Trustees ConferenceNewport Beach, CAMay 3, 2014

Fred Harris, Assistant VC, CCC Chancellor’s OfficeGary Nellesen, Director, Facilities Planning and Management, Mt. SAC

José D. Nuñez, VC Facilities Planning, Maintenance & Operations, SMCCDLisa Hannaman, Account Executive, SCE

CCLC Annual Trustees Conference: Prop 39

2

Proposition 39

Adopted by the voters in November 2012 to close corporate tax loopholes and will provide roughly $550 million annually to K-12 and CCC’s for Energy Projects for five years

CCC’s will allocate $40 million for FY 2013-2014 distributed on an FTES basis to all CCC Districts for energy efficiency and renewable generation projects

The Chancellor’s Office will use $6 million of Proposition 39 annual funds to support energy efficiency and clean energy related workforce training in the California Community Colleges.

Funding approved annually by legislature with state budget


3

Proposition 39

CCC Chancellors Office will work with Districts and CCC/IOU Partnership to identify and fund projects

Implementation will parallel CCC/IOU Partnership process to combine Prop 39 funds and leverage utility incentives. IOUs to provide technical assistance to identify and develop projects

Chancellor’s Office will also work with POUs to coordinate processes, services, and any incentives

A Program Consultant has been contracted through CCCCO to provide program administration and technical assistance


4

Prop 39 Survey Results: Overall Success


5

The Process

CCC Program Guidelines Reflects requirements of Prop 39

enabling legislation SB 73

Issued by Chancellors Office and defines process and requirements

– Project qualification criteria– Funding application process and

approvals– M&V and Reporting Requirements

Monthly approvals and fund disbursement through state apportionment process

Guidelines are for CCC’s only. CEC has issued separate Guidelines for K-12


6

Proposition 39 Implementation Guidelines

The Guidelines provide “step-by step” instructions for Proposition 39 Implementation

1 • Apply for Project Funding

2 • Project Implementation

3 • Verification and Reporting

3 Primary Phases


7

How Have We Done So Far?: Year 1

Year 1 Project Approvals to Date (Oct 2013 – April 2014)

$39.2 Million in Prop 39 Funding Approved

All 72 Districts participating

$6.7 Million in Utility Incentives

308 Projects Approved with resulting ANNUAL energy

cost savings of $4.5 million to Districts!


8

Impact of Proposition 39


9

Prop 39 Monthly Target Milestones

Monthly Target Milestones Month Date Of Each Month

District identifies list of projects for Prop 39 & Utility incentive funding; project calculations are started

Month 1 1st

Project calculations are completed; Applicable forms signed by District; both submitted to Utilities

Month 1 14th

Utilities approve projects for incentives Month 2 7th

CCCCO approves project for Prop 39 funding

Month 2 10th

CCCCO allocates Prop 39 funds through monthly state apportionment process

Month 2 31st


10

FY 14-15 Proposed Budget – 20% less funding Year 2 Timeline

– May 15: Call for Year 2 Projects Submittal deadline.

– Project Funding approvals by end of June with funding dispersed in July

– July 31: Districts submitting applications after this date will be put on notice that funding may be at risk for redistribution

– Nov 1: Drop Dead date for Year 2 Application submittals

– Dec 31: District funding allocation without approved projects will be redistributed to other Districts

Year 2 Funding and Timeline


11

Year 2 Projects: Over 500 ready for submittal– 500+ Energy Efficiency Projects– 25+ Solar Projects– 66/72 Districts have projects identified – $142M est. Construction Costs

Year 2 Project Pipeline


12

Contracting Requirements: – Projects funded by awards shall require contracts that identify the project

specifications, costs, and projected energy savings.– “a community college or LEA shall not use a sole source process to award

funds pursuant to this chapter”– Districts 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 Report– Job 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 Issues

Mt. San Antonio College

Gary NellesenDirector, Facilities Planning and Management

Mt. San Antonio College


14

Mt. San Antonio College Project List

Year 1 – Major Mechanical Equipment Upgrade– High Efficiency Chiller– Cooling Tower– Valves and Metering– Digital Controls and Enhanced Data Network– Lighting Upgrade and Commissioning

Year 1 Fund Sources– $2.1 Million Total Project Cost– $1.05 Million Proposition 39 Funding– $140k IOU Partnership Funding– Local Scheduled Maintenance


15


Year 2 – Central Plant Expansion and Thermal Energy– Expand Chiller Plant Capacity– Underground Chilled Water Distribution– Digital Controls– Valves and Metering– I Million Gallon Partially Buried Storage

Year 2 Funding Sources– $2.4 Million Total Project Cost– $1.05 Million Proposition 39 Funding– $ 800k Utility Incentives– $ 600k Local Bond Funds


16


Year 3 & 4 – 2 MW Solar Power Generation– On Campus 11.5 Acre Site– Ground Mounted Stationary Panels– Phased Project Across Two Program Years– Minimum Annual Utility Cost Savings of $450k– Qualifications Based Selection of ESCO– Owned, Operated and Maintained by the District

Year 3 & 4 Funding Sources– $ 5.5 Million Total Project Cost– $ 2.1 Million Proposition 39 Funding– $ 1.1 Million Utility Incentives


17


Year 5 – Exterior Lighting Upgrade– Site, Walkway, Roadway, and Parking Lot Lighting– Evaluating LED Fixtures– Upgrade to All Digital Controls– Other Project Options May Be Considered– Provides Flexible Energy Project Portfolio

Year 5 Funding Sources– $ 3 Million Total Project Budget– $ 1.05 Million Proposition 39 Funding– $ ? Utility Incentives


18

Energy Project Planning Principles

Commit to the Process and Guidelines Understand the Loading Order to Prioritize Projects Early Involvement With DSA Understand Measurement and Verification Seek Help with Feasibility Studies & Energy Audits Consider Multiple Fund Sources Carefully Monitor Project Expenditures Align Projects With MBCx and RCx Projects Share Best Practices With Others

Implementing Prop 39 Projects on a Short Timeline

Lessons Learned

Facilities Planning, Maintenance and Operations

Facilities Excellence


20

Overview

Basic Project Information Project Timeline Process Steps Talking Solar Challenges and Victories Q & A



21

Prop 39 Projects

Project 1 Leveraging $500,000 P39– ~1MW Solar Installation

• Over 4100 Highly Efficient, High Quality Panels • 41 String level power inverters• Poured-in-place concrete drilled piers• High tensile, galvanized steel infrastructure• 20 Year O&M Package• 20 year Performance Guarantee

Project 2 Leveraging $211,000 P39– Parking Lot and Street Light LED’s

• 120 Fixtures at Cañada College• 80 Fixtures at College of San Mateo• Lighting Controls (dimming, safety, and typical scheduling)

– Building Management System Integration (See Challenges*)



22

Solar Project TimelineDate Milestone9/11/13 Present to the BoT

10/6/13 Finalize Contract with NAM

10/22/13 RFP Tech Spec Prepared

10/25/13 Prop 39 Approval

10/28/13 RFP on the Street

10/31/13 Pre-Bid Conference

11/21/13 Proposals Due

11/26/13 Finalize Proposal Review

12/5/13 Short List Interviews

12/11/13 BAFO from Top 2

12/12/13 Present to the BoT

12/18/13 NOI

1/8/14 Board Approval

1/9/14 Contract Award

2/5/14 Project Kickoff Meeting

4/10/14 Groundbreaking CeremonyFacilities Excellence


23

Process Steps

Leverage Available CCC -IOU Resources

Leverage Available Technical Expertise

Combined RFQ/P to

appropriate selection of

vendors



24

Talking SolarCañada College Solar Photovoltaic Solar System Project ‐ Proposal Scoring

Scoring Summary for Individual Reviewer ‐ Final Review with BAFO

CriteriaMaxPoints

AvailableProposer

A Proposer

BProposer

CProposer

DProduction Model and Economic Evaluation 350 350 312 338 260

Non‐Financial Evaluation by District Committee

Respondent Background, References and Experience 250 192 227 203 187Approach 200 164 135.4 117 161Respondent's Financial Information 150 120 130 120 108Use of Local Contractors 50 40 30 40 40Non‐Financial Score 650 516 522.4 480 496

Final Combined Score 1000 866 834.4 818 756



25

Challenges Victories

Identifying Qualifying P39 Projects

Scoping Projects and Completing P39 administration steps

P39 really isn’t that much money for a large project

Projects are technical in nature – (i.e.: BMS Controls integration)

P39 Timeline is tight

Limited Staff Capacity

Started with the rest of the “low hanging fruit”

Leverage a mixture of internal & external assets (People and Materials)

Identify and access other funding resources

Leverage technical expertise and be Comfortable with Ambiguity

Get it moving – not perfect (*see “be comfortable with ambiguity” above)

Prioritize the project and leverage internal and external assets to get it done



26

Overcoming Challenges

Project lead times may impact delivery Material supplies (supply vs. demand) Public Contract Code requirements In-house labor limitations Consultant and vendor limitations Think ahead for success


27

Strategizing…

Communication is critical Facilities / vendors—establish relationships Plan your strategy prior to procurement Know your project thoroughly Limit substitution times per PCC §3400 Collaborate…Notice of Intent to Award ONE person should be in charge Success awaits!!


28

Q&A

Contacts:– José D. Nuñez

• Vice Chancellor, Facilities Planning, Maintenance and Operations

• 650-574-6512• [email protected]


The CCC/IOU Energy Efficiency Partnership

How to Utilize Proposition 39 Funding for Energy and Cost Saving Projects

CCLC Annual Trustee’s Conference: Prop 39

Lisa Hannaman, SCE


30

Prop 39 and the CCC/IOU EE Partnership

CCC Guidelines Leverage PartnershipProcesses, Services, and Incentives

Districts 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 process

Your Success is our Success!We both want Energy Savings


31

Program Incentives for 2013-14MEASURE INCENTIVE

RATEElectricity

$0.24 / kWh

Packaged HVAC, HVAC Controls, Motors, Drives

Lighting, Lighting Controls, Daylighting

Central Plants, Chiller Retrofits, and other major Energy Efficiency Infrastructure ProjectsMonitor Based Commissioning (MBCx) IT Projects

Natural Gas $1.00 / thermALL Gas Measures


32

Tips & Best Practices

Appoint a lead Develop a strategy When in doubt: read the guidelines!

We are here to help!


33

Key Take-Aways

Share sense of urgency Importance of timelines Working together Flexibility & Adaptation


34

Contact Information

Name Organization E-mail Phone

Fred Harris CCCCO [email protected] (916) 324-9508

Gary Nellesen Mt. SAC [email protected] (909) 594-5611

Jose Nunez San Mateo CC District [email protected] (650) 358-6836

Lisa Hannaman SCE [email protected] (714) 325-2537

Linh-Chi Hua SDG&E [email protected] (858) 822-9485

Dave Hather PG&E [email protected] (916) 386-5007

Paul Deang SCG [email protected] (213) 444-8961

Ron Beeler CCC/IOU Partnership [email protected] (714) 267-7209

Matt Sullivan Newcomb Anderson McCormick

[email protected] (415) 896-0300

http://www.cccutilitypartnership.com/


35

Open Forum

Questions?

Suggestions?

Process Improvements?

Complaints?

proposition 39: maximizing energy and cost savings...proposition 39: maximizing energy and cost...

Documents