1. CONSULT + ENGINEER + CONSTRUCT www.syska.com © All Rights Reserved Grundfos High Performance Building Summit District Energy Activities in the US CREATING EXCEPTIONAL ENVIRONMENTS November 3, 2010 Steve Tredinnick, PE Vice President/Energy Services Division Syska Hennessy Group

2. CONSULT + ENGINEER + CONSTRUCT www.syska.comCREATING EXCEPTIONAL ENVIRONMENTS Agenda About Syska and other pertinent things …….. District Energy in Wisconsin District Energy in the US – Sample Success Stories – Past and Present Washington DC Consolidated Edison – New York District Energy St. Paul Cornell University Others Current and Future Projects Current Energy Policy Impact on District Energy Agenda

3. CONSULT + ENGINEER + CONSTRUCT www.syska.com Section Divider About Syska CREATING EXCEPTIONAL ENVIRONMENTS

4. CONSULT + ENGINEER + CONSTRUCT www.syska.com About Syska  80+ years of engineering history  Globally recognized leader in energy infrastructure  3 year presence in Wisconsin  Energy and central plants specialists experienced as prime consultants  Large, national firm with local presence and national resources 530+  Extensive experience with large central plants including cogeneration projects 4

5. CONSULT + ENGINEER + CONSTRUCT www.syska.com Dallas, TX Atlanta, GA Jacksonville, FL Washington, DC Charlotte, NC Richmond, VA New York, NY Princeton, NJ Cambridge, MA Chicago, IL San Francisco, CA Los Angeles, CA San Diego, CA Seattle, WA Where We Are Las Vegas, NV AFFILIATE Houston, TX August 28, 2015 © 2003 Syska Hennessy Group, Inc. August 28, 2015 © 2003 Syska Hennessy Group, Inc. 5 Washington, DC San Francisco, CA Los Angeles, CA San Diego, CA Las Vegas, NV AFFILIATE Dallas, TX Chicago, IL Atlanta, GA Jacksonville, FL Charlotte, NC Princeton, NJ Cambridge, MA New York, NY Richmond, VA Madison, WI Where is Syska?

6. CONSULT + ENGINEER + CONSTRUCT www.syska.com Chicago, IL August 28, 2015 © 2003 Syska Hennessy Group, Inc. August 28, 2015 © 2003 Syska Hennessy Group, Inc. 6 Where is Wisconsin?

7. CONSULT + ENGINEER + CONSTRUCT www.syska.com August 28, 2015 © 2003 Syska Hennessy Group, Inc. August 28, 2015 © 2003 Syska Hennessy Group, Inc. 7 Something Special from Wisconsin?

8. CONSULT + ENGINEER + CONSTRUCT www.syska.com Section Divider District Energy in Madison CREATING EXCEPTIONAL ENVIRONMENTS

9. CONSULT + ENGINEER + CONSTRUCT www.syska.com District Energy in Madison, Wisconsin University of Wisconsin - Campus Map 9

10. CONSULT + ENGINEER + CONSTRUCT www.syska.com District Energy in Madison, Wisconsin University of Wisconsin  ~22,000,000 square foot campus  +40,000 students  Over 220 buildings  Served by 3 plants:  Charter Street Heating Plant (c.1959)  800,000 #/hr steam (comb. gas & coal)  26,000 tons chilled water (steam & electric)  9 MWe Steam Turbine electricity production  Walnut Street Heating Plant (c. 1973)  Gas boilers totaling 600,000 #/hr steam  18,000 tons chilled water  West Campus Cogeneration Facility  Joint Venture with Madison Gas & Electric 10

11. CONSULT + ENGINEER + CONSTRUCT www.syska.com District Energy in Madison, Wisconsin UW – West Campus Cogeneration Facility  West Campus Cogeneration Facility (WCCF)  Combined Cycle Power Plant  500,000 #/hr steam from gas 2 combustion turbines with duct firing  +20,000 tons chilled water (+30,000 tons in future)  150 MWe Electricity supplied to Madison area grid  Campus must purchase power from the grid  $180M Facility Commissioned July 2005  Fuels – natural gas and fuel oil 11

12. CONSULT + ENGINEER + CONSTRUCT www.syska.com District Energy in Madison, Wisconsin UW - Charter Street Heating Plant 12

13. CONSULT + ENGINEER + CONSTRUCT www.syska.com District Energy in Madison, Wisconsin UW - Walnut Street Heating Plant & WCCF 13

14. CONSULT + ENGINEER + CONSTRUCT www.syska.com District Energy in Madison, Wisconsin  Capitol Heating & Power Plant  Plant constructed in 1908 to serve capitol and then expanded to serve 10 other state buildings  Boiler Plant (425 PSIG/700°F Steam):  Initially Coal and now being retrofitted to all gas-fired boilers  Winter load is 55,000 #/hr  Summer load is +75,000 #/hr  Cogeneration –  (2) Murray 10 PSIG Back Pressure 1.5 MW Steam Turbine Generators (1999)  Cooling Plant  Electric and single affect absorption chillers 14

15. CONSULT + ENGINEER + CONSTRUCT www.syska.com District Energy in Madison, Wisconsin 15

16. CONSULT + ENGINEER + CONSTRUCT www.syska.com District Energy in Madison, Wisconsin Capitol Heat and Power Plant 16

17. CONSULT + ENGINEER + CONSTRUCT www.syska.com District Energy in Madison, Wisconsin 17 Isthmus Combined Energy (ICE) Plant DE Study for State of Wisconsin HP Steam to UW Campus and LTHW for downtown

18. CONSULT + ENGINEER + CONSTRUCT www.syska.com Section Divider District Energy in The US CREATING EXCEPTIONAL ENVIRONMENTS

19. CONSULT + ENGINEER + CONSTRUCT www.syska.com

20. CONSULT + ENGINEER + CONSTRUCT www.syska.com US District Energy Industry Capacity * Based on systems reporting 2005 data to EIA Survey # of Systems Reporting Customer Building Space Served (GSF) Heating Capacity (MMBtu/hr) Cooling Capacity (Tons) Electrical Generation (CHP MWe) Downtown Utilities 851,898,040,00049,239,0001,082,355950 Campus Energy Systems 3302,489,210,00082,107,2001,855,5452,200 2005 Totals4154,387,250,000131,346,2001,937,9003,150

21. CONSULT + ENGINEER + CONSTRUCT www.syska.com

22. CONSULT + ENGINEER + CONSTRUCT www.syska.com CHP as a Share of Total National Power Generation Source: IEA, CHP: Evaluating the Benefits of Greater Global Investment (2008). The global average is just 9%

23. CONSULT + ENGINEER + CONSTRUCT www.syska.com Section Divider A Brief History of District Heating in the US CREATING EXCEPTIONAL ENVIRONMENTS

24. CONSULT + ENGINEER + CONSTRUCT www.syska.com Brief History of District Energy in US  District energy actually has a longer history in the US than it does in Denmark  1853 - US Naval Academy  1877 was the first commercial district heating system in Lockport, NY.  Developed by Birdsill Holly – “founder of district heating”  1880 – Denver, Colorado. The oldest commercial district heating system still operating in the world  1903 – Frederiksberg. First District Heating Project in Denmark 24

25. CONSULT + ENGINEER + CONSTRUCT www.syska.com Brief History of District Energy in US  Since then the US has many systems mostly in northern urban areas for district heating and southern urban areas for district cooling  Most larger universities have both heating and cooling systems where there are denser heating and cooling loads and there is common ownership between plant and the end user.  Consolidated Edison in New York City runs the world’s largest district steam system and Chicago (Thermal Chicago) has a district cooling system that rivals the largest Middle Eastern projects at 100,000 tons. 25

26. CONSULT + ENGINEER + CONSTRUCT www.syska.com Section Divider Sample Existing “Established” Projects CREATING EXCEPTIONAL ENVIRONMENTS Washington, DC New York, NY St. Paul, MN Cornell University UT - Austin LAX

27. CONSULT + ENGINEER + CONSTRUCT www.syska.com Downtown System – Washington DC Chilled water & steam service Very high reliability (99.9998) Critical loads (Federal Govt) Recently added 17,000 tons and 10 MW CHP

28. CONSULT + ENGINEER + CONSTRUCT www.syska.com Downtown District Energy Systems New York City – Con Edison Steam System World’s largest steam system – 1850+ customers Seven (7) generating facilities supply over 102 miles of underground piping Customers use approx. 600,000 tons of steam-driven chillers, displacing 500 MW peak electric demand on grid Combined heat and power provides 60% of total annual steam

29. CONSULT + ENGINEER + CONSTRUCT www.syska.com Con Edison, NYC – 660 MW CHP East River Power Plant

30. CONSULT + ENGINEER + CONSTRUCT www.syska.com Section Divider District Energy St. Paul St. Paul, Minnesota CREATING EXCEPTIONAL ENVIRONMENTS

31. CONSULT + ENGINEER + CONSTRUCT www.syska.com District Energy in St. Paul, Minnesota

32. CONSULT + ENGINEER + CONSTRUCT www.syska.com Bringing “Green Energy” to St. Paul

33. CONSULT + ENGINEER + CONSTRUCT www.syska.com District Energy St. Paul - Cooling Chilled-water demand started at 2,900 tons and has increased to 29,000 tons Serving more than 60% of the downtown area – approximately 19.3 million sq. ft. and 98 buildings The chilled water system includes 6- million-gallons of storage capacity The thermal storage reduced peak- electric demand by as much as 9,000 kilowatts

34. CONSULT + ENGINEER + CONSTRUCT www.syska.com Largest HW district heating in North America Serves more than 80 percent of the downtown area - over 31.7 million sq. ft. and 187 buildings Eliminated more than 150 smokestacks Reduced sulfur dioxide and particulate emissions by more than 60 percent Twenty-five years of outstanding reliability and rate stability District Energy St. Paul - Heating

35. CONSULT + ENGINEER + CONSTRUCT www.syska.com District Energy St. Paul - Cogeneration 25 MW of electric and 65 MW of thermal capacity Renewable, clean, urban wood waste Double the efficiency of conventional electricity-only power plants Greenhouse gas CO 2 reduced by 280,000 tons per year

36. CONSULT + ENGINEER + CONSTRUCT www.syska.com Section Divider Recent US District Energy Activity Cornell University University of Texas – Austin Los Angeles International Airport (LAX) CREATING EXCEPTIONAL ENVIRONMENTS

37. CONSULT + ENGINEER + CONSTRUCT www.syska.com Cornell University - Lake Water Cooling 22,000 students 16,000 Tons Capacity - $58,000,000 Lake source water: 39-41º F Lake return water : 48-56º F Campus loop supply/return : 45º - 60º F Lake source intake pipe: 10,400 ft long, 250 ft deep Campus S/R loop pipe: 12,000 ft Benefits: CO 2 emissions cut 56 million #’s/yr Reduced cooling electricity by 87% - cutting 20 million kWh/yr Sulfur oxides cut 654,000 lbs/yr NOx reduced 55,000 lbs/yr

38. CONSULT + ENGINEER + CONSTRUCT www.syska.com Commissioned December 2009 30 MW and 300,000 PPH Produce 180 GWh/yr and 750,000 klbs/yr Offset indirect emissions Reduce coal usage by 50% Reduce campus CO 2 20% (50,000 tons/yr) Provide efficient steaming capacity Electric reliability Fuel flexibility (HP gas line) Dual fuel capability –Future liquid biofuel option Cornell University - Cogeneration

39. CONSULT + ENGINEER + CONSTRUCT www.syska.com UT Austin – District Energy System

40. CONSULT + ENGINEER + CONSTRUCT www.syska.com UT Austin – District Energy System Self sufficient in serving 100% power, heating and cooling requirements for 16 million SF and 150+ buildings (“off the grid”) +50,000 students Power Plant (by 2010) 137MW of on-site Combined Heat and Power (60 MW Peak) 1.2 million lb/hr of steam generation (300K Peak) Chilled Water (by 2010) 48,000 tons capacity in 4 plants (32K Peak) 4 Million Gallon/39,000 ton-hr TES Tank 6 miles of distribution tunnels

41. CONSULT + ENGINEER + CONSTRUCT www.syska.com 41 Project Features (30% BD): 2- 4.4MW Gas Turbine Cogeneration 22,800 Ton Hybrid Chiller plant 90,000 PPH HRSG Steam serving chillers and Med. Temp. Hot Water System 15,500 Ton-hrs. Underground TES 4,500,000 square feet Completion Date: 2013 Estimated Construction Cost : +$250,000,000 Challenges: Phasing of 70+ piping utilities HVAC recommendations to improve plant efficiency. New Energy Transfer Stations optimizing CHW & HW delta T LAX – Los Angeles, California

42. CONSULT + ENGINEER + CONSTRUCT www.syska.com Other Recent Activity  Stanford University –  $250 Million campus conversion from steam to hot water distribution  Using geothermal resources and large centrifugal heat pump technologies  District Energy St. Paul –  Adding solar thermal to supplement the HW system  City of Montpelier Vermont –  Biomass District Heating RFP in August 2010  University of Wisconsin – Madison:  Adding new CFB boiler for burning biomass in lieu of coal 42

43. CONSULT + ENGINEER + CONSTRUCT www.syska.com Section Divider What is the Future of District Energy in the US? Current US Energy Legislation that should help CREATING EXCEPTIONAL ENVIRONMENTS

44. CONSULT + ENGINEER + CONSTRUCT www.syska.com Current Tax Exempt Bonding only available for distribution piping Existing Production Tax Credits (PTC) for electric generation Existing Federal investment tax credits (ITC) –30% for solar, fuel cells and small wind projects; –10% for geothermal, microturbines and CHP (<50MW) Vary by State: –Just this week, the State of North Carolina implemented a 35% investment tax credit for CHP up to $2,500,000 Other States that have some increased incentives and funding available: –New Jersey –New York –Connecticut Current Incentives

45. CONSULT + ENGINEER + CONSTRUCT www.syska.com Bill currently introduced to legislature July 2010 –Then goes to Senate for voting –Then goes to House for voting –Then signed by President Production tax credits for thermal energy derived from renewable or recycled sources Expand tax exempt financing to include district energy plant as well as distribution piping Amend authorization for Title 471 in EISA (Energy Independence and Securities Act) 2007 and provide appropriation of $500 million per year Expand availability of federal loan guarantees to include production and distribution of recycled and renewable thermal energy Thermal Renewable Energy and Efficiency Act of 2010 (TREEA)

46. CONSULT + ENGINEER + CONSTRUCT www.syska.com Thermal Renewable Energy and Efficiency Act of 2010 (TREEA) Thermal energy production tax credit (PTC) Expands current PTC (USC Section 45) to production of renewable thermal energy Geothermal and “closed-loop” biomass get $0.021/kWh ($6.15/MMBtu) Open-loop biomass, landfill gas, and municipal solid waste get $0.011/kWh ($3.08/MMBtu) Impact: increases after-tax cash flow, thereby increasing return on investment to attract equity investment

47. CONSULT + ENGINEER + CONSTRUCT www.syska.com Tax-exempt bonding U.S.C. 26 Section 142 currently provides for Exempt Facility Bonds for district energy distribution systems TREEA expands eligibility to district energy plant and building connection assets Plant investments provide opportunities for increased efficiency, use of renewable energy and reduced carbon emissions Impact: reduces interest rate, thereby cutting debt service costs and increasing financial feasibility Thermal Renewable Energy and Efficiency Act of 2010 (TREEA)

48. CONSULT + ENGINEER + CONSTRUCT www.syska.com So if TREEA passes, is it the last piece of the puzzle or the tipping point for district/community energy in the US? –Who knows, check back later –Just because a bill in Congress passes and is signed by the President doesn’t mean it is funded –Funds are apportioned, not appropriated, that is the next step Essentially issued an empty check book Stay tuned! Thermal Renewable Energy and Efficiency Act of 2010 (TREEA)

49. CONSULT + ENGINEER + CONSTRUCT www.syska.com Section Divider Thank you!! Questions?? CREATING EXCEPTIONAL ENVIRONMENTS