1. Oregon ESPC Workshop Clint Lougheed Washington State Department of General Administration September 11, 2002

2. History of GA’s ESPC Program Established by state statute in 1984 First project initiated in 1985 Authorized for use by: state agencies, community colleges, universities, local governments & K-12 schools 2001 budget proviso encourages ESPC Pre-qualified ESCOs for schools and local governments

3. Major ESPC Benefits All costs paid from savings - No $ required Energy savings & project cost guarantees No risk energy audits Single point of accountability - ESCO More owner control - sub’s & equipment Utility grants & leverage of capital dollars

4. Can ESPC Improve Public Bldgs.? ESPC in Washington has: Upgraded lighting & HVAC in 100’s of bldgs. Colleges, prisons, hospitals & office bldgs. Over $60 million in completed projects Savings = $5.7 million/yr. - $37 million total 220 million kWh savings annually $13.5 million in utility rebates All projects are meeting savings guarantee

5. Financing Energy Improvements ESCO private financing State Treasurer Lease/Purchase Tax-exempt municipal leasing Revenue bonds Utility rebates & loans Owner capital budget

6. Community College Projects 20 cc’s have completed ESPC projects 4 more cc’s have projects underway $16.6 million in completed projects $1.5 million in annual savings $14.4 million in accumulated savings $4.2 million in utility grants

7. Welcome to South Puget Sound Community College

8. SPSCC Links to the Past

9. SPSCC Looks to the Future

10. Community College Case Study South Puget Sound CC - Olympia, WA First ESPC project completed in 1986 Replaced controls, lighting, HVAC - $315k Financed by ESCO, Treasurer, owner & utility $63,000 in annual dollar savings 2.1 million annual kWh savings

11. Washington’s Capitol Campus

12. Olympia Capitol Campus Project Phase I completed in 1995 - lighting & HVAC Phase II completed in 2000 - controls Phase I retrofit value - $9.8 million Phase II retrofit value - $600,000 Financed by PSE, Treasurer & owner $740,000 annual dollar savings 17.5 million annual kWh savings

13. Campus Electrical Success

14. Washington Higher Education ESPC Projects Underway Central Washington University Eastern Washington University Washington State University Western Washington University University of Washington - pending The Evergreen State College - pending

15. Welcome to CWU

16. CWU’s First ESPC Project - Steam

17. CWU’s Barge Hall

18. CWU’s New Science Building

19. Central Washington University COMPREHENSIVE campus-wide project Steam/chilled water system improvements Lighting, HVAC, & controls Utility master plan & co-generation study $15 million in energy efficiency upgrades $850,000 annual energy savings 9.8m kWh & 864,00therm annual savings Financed by Treasurer, owner & BPA

20. ESPC Projects Need a Champion

21. Cost of Delay!!! www.ga.wa.gov/eas/energy http://www.escperform.org/