Finding Value in

Prop 39

Jim Kelsey, P.E.

Founder & Presidentwww.kw-engineering.com

1

Green Technology

California Schools Summit

Wednesday, November 5, 2014

Pasadena, CA

www.kw-engineering.com

Helping commercial, industrial, and institutional customers achieve healthy, comfortable Net Zero Energy facilities

Services

Portfolio Energy Plans

Energy & Water Audits

Retro-Commissioning

Demand Response

Construction Mgmt

Commissioning

M&V

LEED

Energy Modeling

Zero Net Energy

Renewables

Training

Making it fun!

Who is kW?

• HQ in Oakland with regional offices in

Long Beach, Salt Lake City, Chicago

• Over 50% of staff are P.E.s

• Bay Area’s Top 50 Engineering firms

• Clients: Edison, SoCalGas, SDG&E,

PG&E, CBRE, JLL, Apple, AT&T,

Google, Visa, Stanford, Kaiser…

Today we will…

© 2014 kW Engineering, Inc.

Uncover some myths and misconceptions

Identify some Best Practices & ways forward

Highlight the value that Prop 39 can deliver

1. K-12 Schools Need to Act NOW!

© 2014 kW Engineering, Inc.

Prop 39 is actually a year-to-year program

If schools don’t make use of these funds, they

CAN go away.

Year 2 total allocation is 74% of Year 1

The vast majority of LEAs have not done

anything

Others are lobbying for the future years’

Prop 39 $$$

© 2014 kW Engineering, Inc.

Plans Approved27%

Planning Approved

4%not yet69%

Y1 Funding – K-12$381 M

Approved Expenditures

100%

Y1 Funding – CCDs$47 M

2. Myth: Work “in series”

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Early P-39 instructions were:

1. Enroll in CCC Energy Corps

2. Enroll in CEC Bright Schools

3. Hire a Technical Consultant (if necessary) to take those results and roll into Energy Expenditure Plan

CCC (Level 1.5) Bright Schools (L2) EEP

Unfortunately, this approach will substantially delay you in reaching your goals.

2. Fact: Work “in parallel”

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Yes, make use of ALL no-cost resources…

BUT don’t fit your plan to them

Fit them to your plan.

ASAP issue your RFQ and select a Technical

Consultant to assist with EEP Planning (but you

don’t have to form a contract with them yet)

CCC Energy Corps

CEC Bright Schools

3. “Bundling” is a BIG deal

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In the latest (proposed) Guidelines, you can

now bundle your measures across multiple

schools (“Portfolio-level” SIR vs. site-level)

This is HUGE!

Balance your long return projects with quicker

paybacks for the best outcome

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Example: Separate Projects

Lighting retrofit

$90,000 Installed

Annual Savings =

$33,000

Simple Payback

2.7 years

SIR = 5.15

Proceed

© 2014 kW Engineering, Inc.

Example: Separate Projects

RTU Replacement

$528,000 Installed

Annual Savings =

$36,000

Simple Payback

14.6 years

SIR = 0.97

No go

© 2014 kW Engineering, Inc.

Bundled

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HVAC at one school + Lighting at another

$618,000 Total Spend

$69,000 Annual Savings

Combined simple payback of 8.9 years

Combined “project” SIR = 1.58

Proceed

© 2014 kW Engineering, Inc.

4. Leverage Grant Funding

September 26, 2014

Proposed Draft Revisions to the Proposition 39: California Clean

Energy Jobs Act -2015 Program Implementation Guidelines

5. Misconceptions re: Planning Funds

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“All my Planning Funds have to go to planning”

“If I hire a Technical Consultant for EEP planning, all my budget needs to go to them.”

“Can’t I do projects w/o planning?”

Typically ~65% of your planning budget is adequate for Expenditure Plan development

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Zero Net Energy School: No need for planning

funds, right?

Good Uses for Planning Funds

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Energy Management

Energy Staff (can be a shared resource)

Software (understand where you are before you go anywhere!)

Training

Energy Audits to support EE Plans

Energy Expenditure Plan development

Basic EE Tenet: You Can’t Manage

What You Don’t Measure

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You need the data.

It needs to be visible.

Then someone needs to LOOK at it.

Then someone needs to ACT on it.

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Monthly data is great but…

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Interval data has real power

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150+ Integrations

BuildingOS collects data from

any utility meter, sub-meter, or

controls system.

No matter what vendors you

choose, BuildingOS makes

integrations happen quickly

and at lower cost.

© 2014 kW Engineering, Inc.

© 2014 kW Engineering, Inc.

3kW Base Load

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© 2014 kW Engineering, Inc.

Energy Bill Visualization - Pricing

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Setup and Integration = $5,000

(one time flat fee)

OPTIONAL Custom = $5,000

Building Dashboard

Software Licensing Fee = $600

(per site per year)

Building Dashboard Example Pricing

Example: School District would like real-time Solar, Electricity, and Water utility data for 25 schools.

Year 1 Project Cost

Setup and Integration $5,000

Custom Dashboard $5,000

25 Building License $15,000

Total $25,000

Total Cost per

school over 3

year period

< $750 / school

Optimize scheduling during nights,

weekends, and holidays

Automate utility bill data and pinpoint

potential overcharges

Simplify portfolio-wide annual

reporting and benchmarking

Drive behavioral efficiency with

occupant engagement

6. Misconception re: Calculators

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Using CEC-provided calculators is fast &

easy…

…BUT you don’t HAVE to use them.

The calculators have broad assumptions that

might not fit your school

Custom analysis can be used to capture real-

world difference - SIR may be hire with custom

calculations.

Example: Custom Calcs

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Example: Custom Calcs

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Applicable to heat pumps (not an option in calculator)

Greater Electric Savings + Cost Savings

SIR = 1.8

7. Changes re: Audits

Facility Background

EEM Summaries

Grants / Incentives

Appendices Baseline energy use,

Benchmarking,

Energy Balance

Savings Calcs

© 2014 kW Engineering, Inc.

8. SIR “Boosters”

Lighting controls

HVAC controls

Lighting upgrades

Exit signs

Plug load controls

PC Power

Management

Control

Existing Building /

New Building

Commissioning

Variable Speed pool

pump controls

Bi-level exterior

lighting

© 2014 kW Engineering, Inc.

Most corridors have variable occupancy

Corridor lighting often

24/7

Reduce operating hours

Occupancy sensors

Time clock or panel

controls

With TC control, minimum egress FC needed

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Corridor Lighting Controls

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Plug loads are a big energy consumer on

college campuses

Reduce operating hours

Occupancy sensors

Slave plugs to PC

Costs are approximately

$100/unit

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Power Strip Occupancy Sensors

Always On Plugs

Sensor-Controlled Plugs

Personal computers operate long hours

Many of which are spent idle

PC Power Management Software can deploy

via IT infrastructure

Globally sets time-out duration

Allows IT staff to push updates by providing

network “wake on command” signals

Costs approximately $20 per seat license

37

PC Power Management Software

Daylighting controls reduce operating hours

Easily identified during the day

Typical PB around 1-year if 300W or more

controlled

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Daylighting Controls

39

Web-Enabled Thermostats

About $170 to $300

Include ability to

monitor remotely

www.proliphix.com

40

Kitchen Hood Exhaust Controls

Exterior lighting is necessary for

safety, but of limited use when

no one is present

Bi-level light fixtures & retrofits

reduce light output and energy

consumption when no one is

present

Networked lighting controls

can provide additional NEBs

to campus security

41

Exterior Bi-Level Lighting

Sensors

Ideal for classrooms & theaters

Reduces ventilation

when occupancy

is low

Possible to tie into

classroom lighting

additional savings

42

Demand Controlled Ventilation

(DCV)

Network light fixtures and sensors

Controls lighting with dimming, task-tuning,

occupancy, scheduling, etc.

Can tie into HVAC system

Multiple vendors available

43

Advanced Lighting Controls (ALC)

www.enlightedinc.com

44 www.redwoodsystems.com

Smells Funny

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Refrigerant /

Oil Additives

“Black boxes”

Not UL Listed

Can’t explain

savings in

scientific /

engineering

principals

9. Best Practice:

Multi-LEA Collaboration

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Network effect to share resources

More bargaining power, more interest

E.g. San Diego County

Tom Silva, San Diego County Office of Education

Marty Turock, Clean Tech San Diego

Robert Matarazo, SDG&E

E.g. COE-facilitated Prop 39 Workshops

Steve Turner, Mendocino COE

Susan Wright, San Mateo COE

E.g. Multi-District RFQ for Technical Consultants

Humboldt, San Bernardino (Ying Wang)

E.g. Multi-District Single Leader / Point-Of-Contact

Ray McKinney @ Plumas Lake ESD

10. Get Help (lots available)

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Utility Account Rep “Core” Programs

“3rd Party” Programs

County “Energy Watch” Programs

Use your planning funds

www.utilitylist.org

Conclusions

© 2014 kW Engineering, Inc.

Don’t fall into some of these traps

Get some help

There's a lot available

You don’t need to break the bank to get it

Carpe diem – this opportunity won’t wait for us

Questions?49

Thank you!

Jim Kelsey, P.E.

President

kW Engineeringkelsey@kw-engineering.com

Tel: 510.834.6420