LOGICS: Local Governments Implementing Conservation and Sustainability Operating Local Governments As Energy Costs Rise

LOGICS TEAM The Environmental Protection Agency The Environmental Protection Agency Delaware Valley Green Building Council Delaware Valley Green Building Council Delaware Valley Regional Planning Commission Delaware Valley Regional Planning Commission Department of Environmental Protection Department of Environmental Protection Sustainable Development Fund Sustainable Development Fund The Environmental Finance Center The Environmental Finance Center The Pennsylvania Environmental Council The Pennsylvania Environmental Council Penn Future Penn Future

WHY LOCAL MUNICIPALITIES? Municipalities and townships have the responsibility of fiscal accountability to their taxpayers Municipalities and townships have the responsibility of fiscal accountability to their taxpayers An energy efficient township provides numerous benefits and better service to its constituents An energy efficient township provides numerous benefits and better service to its constituents Most municipalities can expect to save 30% or more on energy operating costs by participating in simple efficiency opportunities Most municipalities can expect to save 30% or more on energy operating costs by participating in simple efficiency opportunities

WHY LOCAL MUNICIPALITIES? Many overlook the connection between inefficient energy use and cost. Many overlook the connection between inefficient energy use and cost. Efficient energy use is no longer the environmentally responsible choice; it has become the economically responsible choice. Efficient energy use is no longer the environmentally responsible choice; it has become the economically responsible choice. 9.6 billion square ft, accounts for national Local Government footprint 9.6 billion square ft, accounts for national Local Government footprint

WHY NOW? Electricity Electricity Retail Rate Caps expiring statewide, PECO expires 12/31/10 Retail Rate Caps expiring statewide, PECO expires 12/31/10 Rate caps have shielded customers from the impacts of rising fuel prices and market-based prices Rate caps have shielded customers from the impacts of rising fuel prices and market-based prices Natural Gas Natural Gas NYMEX price/MMBtu 2006: $ : $6.53 pre 2000: <$3.00 NYMEX price/MMBtu 2006: $ : $6.53 pre 2000: <$3.00 Gasoline Gasoline Retail price for regular gasoline up 63 cents/gal over a two years ago Retail price for regular gasoline up 63 cents/gal over a two years ago Other commodities, including coal, have also experienced rising prices Other commodities, including coal, have also experienced rising prices

PROJECTED WHOLESALE PRICES

BENEFITS OF ENERGY MANAGEMENT Initial Effort (First two years) 5-15% cost savings 5-15% cost savings Little or no capital expenditure Little or no capital expenditure Long-Term Effort 25% or higher cost savings 25% or higher cost savings Requires management commitment Requires management commitment Annual review Annual review Monitor efficiencies Monitor efficiencies Track saving Track saving

STEPS TO ENERGY MANAGEMENT Official Policy Official Policy A team or designated staffer A team or designated staffer Education of ALL staff Education of ALL staff Review of existing facilities and billing Review of existing facilities and billing Identification, prioritization and implementation of opportunities Identification, prioritization and implementation of opportunities Ensure measurement of implementation Ensure measurement of implementation Use savings to fund next projects Use savings to fund next projects

Official Policy Clearly states energy goals Clearly states energy goals Can include: Can include: Purchasing of equipment Purchasing of equipment Construction of buildings Construction of buildings Maintenance of buildings Maintenance of buildings Who is responsible Who is responsible Fuels purchasing Fuels purchasing Electricity purchasing Electricity purchasing Alternative energy generation Alternative energy generation

Team or Staff Team Option Team Option Multi-facility, multi-discipline, multi-department Multi-facility, multi-discipline, multi-department Two or three key people Two or three key people Could include EAC, other residents or businesses Could include EAC, other residents or businesses Staff Option Staff Option One person responsible for all energy One person responsible for all energy Provides consistency Provides consistency May be difficult to fund time May be difficult to fund time

Education All staff need to know policy All staff need to know policy All staff need to understand how they impact the energy usage All staff need to understand how they impact the energy usage All staff need to be able to explain that to the taxpayers All staff need to be able to explain that to the taxpayers All staff need to be asked for their input on detailed policies, suggestions for upgrades, etc. All staff need to be asked for their input on detailed policies, suggestions for upgrades, etc.

Review of Existing Facilities & Billing Often multiple bills for multiple facilities never meet up Often multiple bills for multiple facilities never meet up Examination of bills can identify areas for opportunity Examination of bills can identify areas for opportunity Existing facilities review could include basic audit or engineering audit Existing facilities review could include basic audit or engineering audit Own staff Own staff Other resources Other resources

Opportunities Identification Identification Through staff interviews/questionnaire Through staff interviews/questionnaire Through audit mentioned above Through audit mentioned above Generate a report Generate a report Prioritization Prioritization Low-cost, done in-house, etc. Low-cost, done in-house, etc. Implementation Implementation (WE ID SOME RESOURCES HERE) (WE ID SOME RESOURCES HERE)

Measurement Ensures that all know what is done Ensures that all know what is done Ensures that all know policy is being followed Ensures that all know policy is being followed Allows for additional future spending based upon successes Allows for additional future spending based upon successes Allows for correction of areas where failure occurs Allows for correction of areas where failure occurs Shows taxpayers fiscal responsibility Shows taxpayers fiscal responsibility

Funding the Future Good measurement shows proof of value Good measurement shows proof of value Proof of value shows responsibility Proof of value shows responsibility Responsibility builds trust Responsibility builds trust Trust then allows for “riskier” efficiencies to be incorporated with their longer paybacks – such as alternative energy generation, newer technology installation, etc. Trust then allows for “riskier” efficiencies to be incorporated with their longer paybacks – such as alternative energy generation, newer technology installation, etc.

Steps to Energy Management Create an Official Policy Create an Official Policy Team or Staff Team or Staff Identify your Energy Use / Utility Bill Analysis Identify your Energy Use / Utility Bill Analysis Achieving up to 30% Energy Savings Achieving up to 30% Energy Savings LED lighting for traffic lights and street lamps LED lighting for traffic lights and street lamps Building energy assessments and action plans Building energy assessments and action plans

Where do you start to lower energy use by 30%? Learn how to read your utility bill Learn how to read your utility bill Microsoft Excel Spreadsheet Microsoft Excel Spreadsheet Record monthly utility bills for all meters Record monthly utility bills for all meters Create charts to provide visual tracking of energy use Create charts to provide visual tracking of energy use Energy Assessment Energy Assessment Efficiency of Equipment Efficiency of Equipment Proper Insulation Proper Insulation

What do you Track? CONSUMPTION CONSUMPTION DEMAND DEMAND COST COST

Municipal Example Visual of local analysis Visual of local analysis Recommended actions Recommended actions

Comparison Cost in $$ of Incandescent v. L.E.D. per Traffic Signals Incandescent L.E.D.Annual Electric FeeAnnual Maintenance FeeAnnualized Capital 5%Installation FeeTotal Incandescent L.E.D.Annual Electric FeeAnnual Maintenance FeeAnnualized Capital 5%Installation FeeTotal Average cost full replacement for 1 intersection (new fixture and lights) = Average cost full replacement for 1 intersection (new fixture and lights) = Average cost to replace just L.E.D. lights = Average cost to replace just L.E.D. lights =

Annual Energy Cost to Townships for Traffic Signal (or full energy budget) v. other operations costs in the Township Create and add (Pie Chart) Create and add (Pie Chart)

Optimal purchase of L.E.D lights at the least cost Purchase SourceCriteria for PurchaseTweaking the SystemBest OptionCOSTARNo – Bid requiredCan negotiate for a lower pricePennsylvania State ContractsEnergy Star Bulk Purchasing Purchase SourceCriteria for PurchaseTweaking the SystemBest OptionCOSTARNo – Bid requiredCan negotiate for a lower pricePennsylvania State ContractsEnergy Star Bulk Purchasing

Model bid specification for L.E. D. light purchase 007/050707/cc0792.pdf 007/050707/cc0792.pdf 007/050707/cc0792.pdf 007/050707/cc0792.pdf ftp://ftp.dot.state.tx.us/pub/txdot- info/gsd/pdf/to7057.pdf for model Bid Specs ftp://ftp.dot.state.tx.us/pub/txdot- info/gsd/pdf/to7057.pdf for model Bid Specs ftp://ftp.dot.state.tx.us/pub/txdot- info/gsd/pdf/to7057.pdf ftp://ftp.dot.state.tx.us/pub/txdot- info/gsd/pdf/to7057.pdf

Financing Your Traffic Signal Upgrade to L.E.Ds Work into current operating budget Work into current operating budget Low-interest Bank Loan Low-interest Bank Loan Grant Options Grant Options

The Economics of Street Light Replacement (NOT!) Changing to greater efficient street lamps in PECO service territory DOES NOT YIELD A COST SAVINGS Changing to greater efficient street lamps in PECO service territory DOES NOT YIELD A COST SAVINGS Reduce the number of fixtures in the area, but not to jeopardize safety Reduce the number of fixtures in the area, but not to jeopardize safety Check on required lighting levels and do not purchase higher capacity Check on required lighting levels and do not purchase higher capacity New York State Energy and Research and Development Agency - New York State Energy and Research and Development Agency - Outdoor lighting guide Outdoor lighting guide

Building Audit resulting in Operating Efficiency Evaluate decisions based on life-cycle costing – (notes Life-cycle cost analysis (LCCA) is a method for assessing the total cost of facility ownership. It takes into account all costs of acquiring, owning, and disposing of a building or building system. LCCA is especially useful when project alternatives that fulfill the same performance requirements, but differ with respect to initial costs and operating costs, have to be compared in order to select the one that maximizes net savings Evaluate decisions based on life-cycle costing – (notes Life-cycle cost analysis (LCCA) is a method for assessing the total cost of facility ownership. It takes into account all costs of acquiring, owning, and disposing of a building or building system. LCCA is especially useful when project alternatives that fulfill the same performance requirements, but differ with respect to initial costs and operating costs, have to be compared in order to select the one that maximizes net savings Register your facilities with ENERGY STAR Portfolio Manager, Register your facilities with ENERGY STAR Portfolio Manager,

THE 30% BOMA TOP “10” ENERGY DIET Check that equipment is functioning as designed. Check that equipment is functioning as designed. Consider your cleaning options (i.e., team cleaning, occupancy sensors, coordination, and day cleaning when the lights are already on). Consider your cleaning options (i.e., team cleaning, occupancy sensors, coordination, and day cleaning when the lights are already on). Encourage occupants to turn off equipment...during off hours, power everything down. Encourage occupants to turn off equipment...during off hours, power everything down. Use high efficiency LED exit signs. Use high efficiency LED exit signs. Institute an energy awareness program. Institute an energy awareness program. Install monitor power management software. Install monitor power management software. Change incandescent light bulbs to CFL or HID. Change incandescent light bulbs to CFL or HID. Harvest daylight. Harvest daylight. Evaluate after-hours usage. Evaluate after-hours usage. Adjust ventilation. Adjust ventilation.

Building Audit resulting in Operating Efficiency Evaluate decisions based on life-cycle costing – (notes Life-cycle cost analysis (LCCA) is a method for assessing the total cost of facility ownership. It takes into account all costs of acquiring, owning, and disposing of a building or building system. LCCA is especially useful when project alternatives that fulfill the same performance requirements, but differ with respect to initial costs and operating costs, have to be compared in order to select the one that maximizes net savings Evaluate decisions based on life-cycle costing – (notes Life-cycle cost analysis (LCCA) is a method for assessing the total cost of facility ownership. It takes into account all costs of acquiring, owning, and disposing of a building or building system. LCCA is especially useful when project alternatives that fulfill the same performance requirements, but differ with respect to initial costs and operating costs, have to be compared in order to select the one that maximizes net savings Register your facilities with ENERGY STAR Portfolio Manager Register your facilities with ENERGY STAR Portfolio Manager