Energy Services Coalition

Tuesday Jan. 7th 2014Porter Hall / Wendell Chino Building

ESC - Who are We?

• Energy Services Coalition - coalition of public and private energy experts focused on the promotion of Guaranteed Energy Performance Contracting.

• Mission: To increase energy efficiency and infrastructure modernization through energy savings performance contracting.

Educational outreach

• ESC Meetings: o Forum to address performance contracting issueso Distribute legislative updateso Develop business relationshipso Facilitate info exchange on best practices

Overview ofEnacting Legislation

and FinancingEnergy Efficiency Projects

Neal Skiver

James McLane

Success Stories• Investment Grade Audit (IGA) Projects Which

Achieved Certification of Energy Cost Savings, As Required by EMNRD

• Buildings Managed by NMDCA – Mark Mackenzie

• Energy Audits Performed –John McAllister/ EATON (f.k.a. EMC Engineers, Inc)

New Mexico Museum of Fine Arts, Santa Fe

Museum of Natural History, Albuquerque

Museum of Space History, Alamogordo

Success Stories• New Mexico Museum of Fine Arts, Santa Fe

Original building was built in 1917, Approximately 44,000 Sq Ft.

Remodels of the building and HVAC systems and with an addition of a new wing, 13,500 Sq Ft. over the last several decades.

IGA produced 9 Energy Efficiency Measures (EEM)

Energy cost savings: $6,893/Yr

Success Stories• Museum of Natural History, Albuquerque

Original building was built in 1982, expanded in 1998, Approximately 127,000 Sq Ft.

IGA produced 8 Energy Efficiency Measures (EEM)

Energy cost savings: $22,028/Yr

Success Stories• Museum of Space History, Alamogordo

Original building was built in 1975, Formerly known at the International Space History Hall of Fame

IGA produced 10 Energy Efficiency Measures (EEM)

Energy cost savings: $19,770/Yr

Vote: Secretary Board Position

DUTIES OF SECRETARY– Maintains the “Book of Meeting Minutes” and records for NM ESC chapter. – Report the previous minutes at each local ESC Meetings.– Keeper of the NM ESC Bylaws as well as any changes.– Organize upcoming meeting locations.

• Interest By: Lila Garza

Alma Energy Group, LLC

Mary Ann Ulik

Break

Energy Performance Contracting

Overview For New Mexico 2014

Boone Birdsell

Energy Performance Contracting Reference:Chapter 6, Article 23 of the

New Mexico StatutesPublic Facility Energy Efficiency and

Water Conservation ActAmended July 1, 2009

Also House Bill 603July 1, 2009

EPC Laws:

Performance Contracting

Example Actual Project: Self Funded Project w/ Positive Cash flow

• Project “Cost Avoidance” (12 year term)• 12 year Total Cost $7,611,026.00 • 12 year Total Savings $8,011,190.00• Positive $400,164.00 Actual Cash Flow over life of the project

Performance Contract History in NM.

1993

Sep 2011 PCPath Set for NM

Start PC Pilot Projects

20112009

House Bill603 July 2009PC Legislation

2013

PC EnablingLegislation Passed in NM.

2004

PC Projects CompletedThru 2004

2014

EPC projectsIn NM

Performance Contracting Paths For New Mexico 2014

Selection of ESCO

Audit the Facility

Verify the savings

Finance The Project

Oversight and guidance is provided by The New Mexico Energy Minerals and Natural Resources Dept. (EMNRD) As well as DFA

Implement ECM’s

Step 1-Selection of ESCO

EMNRDAgency

RFP

ENMRD will provide Assistance• Sample EPC Documents

Agency will compile RFP Data• Building Data• Utility Data

Step 1-Selection of ESCO

EMNRDAgencyRFP

ESCO Companies

Agency will provide RFP to ESCO’s Agency Provides Walk thru for ESCO’s

Step 1-Selection of ESCO

EMNRDAgency

Selected ESCO Agency Selects the ESCO ENMRD Approves ESCO

Step 2-Audit the Facility

IGA

The ESCO Develops the Investment Grade Audit

ESCO

Step 2-Audit the Facility

Agency

IGA

The ESCO Submits the IGA for Approval ENMRD Reviews The IGA DFA Also Reviews the IGA

Step 2-Audit the Facility

Path A Path B

EMNRD

Agency

EMNRD will Provide a Sample Investment Grade Audit (IGA) Document

Schools

City, County, State, High

Ed.

Step 2-Audit the Facility Continued

Once the Contract has been Approved by PED, the Legislative Finance Committee will review and Approve the Contract .

Path A – Approvals for Schools

Once this Special Fund has been set up and funded, the Implementation can begin.

The Annual Performance Contract amount will be removed from the School’s SEG (School Equalization Guarantee) Account and placed into a “Public School Utility Conservation Fund” to fund the Performance Contract with.

SEGFUND

Publ ic School Ut i l i ty Conservat ion Fund

Pays for the Performance Contract

Section 6-23-7State StatutesNMSA 1978

Path B- Approvals for Municipalities , Counties and State Agencies &

Higher Ed.

The Contract is presented for approvals of the Governing Council, Commission or agency head.

Once the Governing Council or Commission has approved the contract a Special Fund is set up for the sole purpose of paying the Performance Contract Costs.

Once this Special Fund has been set up and funded, the Implementation can begin.

Step 2-Audit the Facility Continued

Special Fund Appropriated from Operating Budget to Pay for the Performance Contract.

Step3- Implement the Project

The Performance Period for the Contracts begins at customer approval and sign off of project completion.

The Project does not have change orders unless there are changes that the customer requires.

The Project with All Energy Conservation Measures (ECMs) is ready to start Implementation

The ESCO is responsible for Managing the Project.

Step 4- Verify the savings

The Project must have a Measurement and Verification (M&V) program to track and verify the savings.

For Information on Performance Contracting, Go to:HTTP://www.CleanEnergyNM.org Select Link: Clean Energy Performance Financing

Energy Performance Contracting

Q & A

Brian Johnson / Boone Birdsell

Brian Johnson

Energy Performance Contracting

Next Steps