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Qingbin Cui August 4, 2011 Green Performance Contracting On Highway Construction.

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Presentation on theme: "Qingbin Cui August 4, 2011 Green Performance Contracting On Highway Construction."— Presentation transcript:

1 Qingbin Cui August 4, 2011 Green Performance Contracting On Highway Construction

2 Agenda  Introduction  Green Performance Contracting  Definition  State of Practice  Application Cases  Decision Model for Selecting Strategies  Conclusion and Recommendation

3 Did You Know? Construction of a 1-km section of a typical two-lane highway  Requires x 10 6 Mega Joule of Energy  Generates 636 – 723 tons of waste 136 million tons of construction and demolition debris was generated annually in the US. The construction Industry consumed 6% of total energy.

4 Greenhouse Gases Emissions From Construction

5 Transportation Construction Emissions  Top-down estimate  Construction equipment population surveys SIC Group 161 (highway / street construction) is 12% SIC Group 162 (includes bridge, tunnel, elevated highway) is 38%  CO2 emissions are 50 MMTONCO2e from fuel combustion  Bottom-up estimate  One lane-mile of freeway Construction emits tons of CO2  U.S. added 32,300 lane-miles per year  CO2 emissions are MMTONCO2e

6 Emission Reduction: Nationwide Initiatives  EO 13514: 28% of direct emissions and 13% of indirect emissions  10 States (CA, CT, HA, ME, MD, MA, MN, NJ, OR, WA) adopted emission reduction target legislations  Another 13 States (AZ, CO, FL, IL, MI, MT, NH, NM, NY, RI, UT, VT, VA) established emission reduction targets  Emission Trading Scheme: RGGI, WCI, MGGA  Smart, Green & Growing initiative in Maryland  Maryland Climate Action Plan  MDOT Commitments Reduce CO 2 emissions by 25% by 2020 Reduce CO 2 emissions from off-road transportation sources by at least 15% by Collaboration with Contractors

7 Lady GaGa: It's Not Easy Being Green!

8 Green Performance Contracting: A Definition Any contract provisions, contracting methods, delivery strategies that help i.reduce emissions and adapt to climate change ii.benefits the environment iii.improves the life of the public through a direct economic, ecological, or social benefit

9 Green Performance Contracting Strategies Level I: Material Related Strategies Level II: Equipment and Energy Efficiency Strategies Level III: Green Life Cycle Strategies Level IV: Clean Energy Development

10 Green Performance Contracting (GPC) Strategies LevelStrategy I L1-01 Reclaimed Asphalt Pavement (RAP) L1-02 Other Material Recycling or Reusing L1-03 Sustainable Material Treatment L1-04 Material Waste Management L1-05 Material Life-Cycle Management II L2-01 Equipment Retrofit Technology L2-02 Engine Repower and Upgrade L2-03 Idling Reduction L2-04 Alternative Fuels L2-05 LED Lighting L2-06 Equipment Operation and Maintenance Management L2-07 Equipment Selection and Vehicle Electrification L2-08 Work Zone Traffic Management L2-09 Employee Commuting Reduction III L3-01 Green Road Rating System L3-02 Climate Impact Analyses L3-03 Climate Adaptation Design IV L4-01 Highway-related Solar Energy L4-02 Highway-related Wind Turbine

11 GPC Card  Name  Description  Implementation  Technological Options  Technological Requirements  Green Benefits  Barriers  Sample Provisions  Project Application

12 State of Practice

13 Implementation  Contract specification is the primary form of green contracting, although other forms have been successfully used in a few states. Other forms are also used in some states, bidding preference (AR), contract allowance (TX)  Green contracting can be incorporated into varied size of projects and different project delivery systems.

14 Primary Reasons Some green contracting strategies are primarily cost-driven and easily integrated into contract specifications. However, higher levels of green contracting strategies may be driven by local green initiatives, mandates, or legislations.

15 Application Case: MassDOT Retrofitting Specification Provisions that address diesel retrofit technology implementation Requires: – All MassDOT projects to install diesel engine retrofit devices – Contractors and sub-contractors to use EPA/CARB certified equipment as part of the bidding process. Contractors must submit:  Identified owned/rental equipment  Equipment type, equipment make, model, and VIN  Engine model, year of manufacture, and horsepower rating  Type of fuel used  Emission control device (ECD) type  ECD manufacturer, make and model  ECD EPA/CARB verification number or certification  ECD installation date

16 Application Case: MassDOT Retrofitting Specification Sample Equipment Standard Compliance Certification MassDOT issues a compliance label assigning a tracking number to acceptable devices and uses random site checks to uphold the standards

17 Application Case: GreenLITES at NYSDOT In 2008 the New York State Department of Transportation (NYSDOT) implemented a sustainability self-certification program called GreenLITES (Green Leadership In Transportation Environmental Sustainability) Projects are assessed using a scorecard that divides each of the five areas into two to five categories that consist of several sustainable practices. A project can accumulate 1 or 2 points depending on the impact of the sustainable practice. Evaluation Areas sustainable sites water quality materials & resources energy & atmosphere innovation/unlisted Certification Levels Certified : points Silver: points Gold: points Evergreen: above 60 points

18 Green Highway Rating Systems

19 Application Case: ODOT Solar Highway Project Data  Contractor: Portland General Electric  Project Size: 214 kW  Period: Sept-Dec 2008  Project Cost: $1.4 million  GHG Reduction: 43 MT CO2e Source of Funds  Oregon Business Energy Tax Credit  Federal solar Investment Tax Credit  Energy Trust of Oregon  Accelerated depreciation

20 Delivery of Solar Highway Project

21 Selection of GPC Strategies  Various emission reduction potential and cost  Competitive or mutually exclusive  Resource constraints

22 Evaluation Criteria  Financial Consideration  Technological Maturity  Organizational Readiness  Industrial and Public Acceptance  Emission Reduction Potential  Risk and Uncertainty  Impact on Project Performance

23 Evaluation Method: Factors Example: Emission Reduction Potential  Issues should be considered include:  Emission reduction target  Existing emission inventory  Emission type, source, and volume  Long term emission reduction due to GPC strategies  Emission reduction estimation method and accuracy  Application condition, etc.

24 GPC Strategy Scorecard

25  Compare with others  Max Output at min Input  Efficient Frontier  Efficiency Score Strategy is efficient if 100% Otherwise, Not efficient InputOutput Financial Consideration Technical Implementation Readiness Organizational Readiness Industrial and Public Acceptance GHG Reduction Efficiency Impact on Project Performance Risks GPC Strategy Evaluation: Data Envelopment Analysis

26 LevelStrategyEfficiency I L1-01 Reclaimed Asphalt Pavement (RAP) 100% L1-02 Other Material Recycle or Reuse 88% L1-03 Sustainable Material Treatment 85% L1-04 Material Waste Management 85% L1-05 Material Life Cycle Management 76% II L2-01 Equipment Retrofit Technology 100% L2-02 Engine Repower and Upgrade 91% L2-03 Idling Reduction 88% L2-04 Alternative Fuels 100% L2-05 LED Lighting 76% L2-06 Equipment Operation and Maintenance Management 82% L2-07 Equipment Selection and Vehicle Electrification 73% L2-08 Work Zone Traffic Management 64% L2-09 Employee Commuting Reduction 85% III L3-01 Green Road Rating System 55% L3-02 Climate Impact Analyses 100% L3-03 Climate Adaptation Design 88% IV L4-01 Highway-related Solar Energy 100% L4-02 Highway-related Wind Turbine 94% Strategies with higher scores are more efficient than other strategies. Choosing Strategy Portfolio from efficient strategies could maximize the total performance. GPC Strategy Efficiency Evaluation for MSHA

27 Conclusion  Going green at the project level: an increasing interest  Although not defined before, Green Performance Contracting has been used on highway Construction  Could be in the form of  Contract specifications  Incentive grants  Process-oriented strategies  Agency wide green initiatives help the successful implementation

28 Conclusion  Selection of GPC strategies could be optimized by several criteria  Emission Reduction Potential  Financial Consideration  Technological Maturity  Organizational Readiness  Industrial and Public Acceptance  Impact on Project Performance

29 Recommendations  Small steps can lead to huge leap  Five GPC strategies recommended to MSHA  Establish green Initiatives and programs  Numerous challenges exist  Establish protocol and best practices  Develop shared vocabulary and guidance  Towards Green Specifications

30 Thank you! Please forward comments, ideas and suggestions to: Qingbin Cui


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