Presentation on theme: "Qingbin Cui August 4, 2011 Green Performance Contracting On Highway Construction."— Presentation transcript:
Qingbin Cui August 4, 2011 Green Performance Contracting On Highway Construction
Agenda Introduction Green Performance Contracting Definition State of Practice Application Cases Decision Model for Selecting Strategies Conclusion and Recommendation
Did You Know? Construction of a 1-km section of a typical two-lane highway Requires 5.0 -7.0 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.
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 500- 1200 tons of CO2 U.S. added 32,300 lane-miles per year CO2 emissions are 16-38 MMTONCO2e
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 2020--- Collaboration with Contractors
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
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
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
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.
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.
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
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
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 : 15-29 points Silver: 30-44 points Gold: 45-60 points Evergreen: above 60 points
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
Selection of GPC Strategies Various emission reduction potential and cost Competitive or mutually exclusive Resource constraints
Evaluation Criteria Financial Consideration Technological Maturity Organizational Readiness Industrial and Public Acceptance Emission Reduction Potential Risk and Uncertainty Impact on Project Performance
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.
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
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
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
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
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
Thank you! Please forward comments, ideas and suggestions to: Qingbin Cui 301-405-8104 firstname.lastname@example.org