1. City of Fairfield First selectman Kenneth Flatto and ED Bowman November 18, 2004 “Let’s Talk Energy Savings”

2. Town of Fairfield “Let’s Talk Energy Savings” An Holistic Approach

3. A Solution: The Holistic Method The private sector including ESCOS, green builders and suppliers provide valuable resources too: Experience, technology, training, consulting and even financing The private sector including ESCOS, green builders and suppliers provide valuable resources too: Experience, technology, training, consulting and even financing That is the real partnership: Citizens, public interest groups, government, utilities and private firms That is the real partnership: Citizens, public interest groups, government, utilities and private firms

4. Economic Pressure Downturn in Grants Downturn in Grants New Mandates New Mandates Aging Infrastructure Aging Infrastructure School Expansions School Expansions WPCF Mandate WPCF Mandate Demands for Open Space Demands for Open Space Energy Cost Spiral Energy Cost Spiral

5. Environmental Pressures Clean Air Act Clean Air Act Clean Water Act Clean Water Act Energy Policy Act Energy Policy Act LISA LISA Greenhouse Gasses Greenhouse Gasses Clean Energy Clean Energy

6. Energy Pressures Reduce consumption of foreign oil Reduce consumption of foreign oil Increase consumption of domestic energy products Increase consumption of domestic energy products Gas and Electric Deregulation Gas and Electric Deregulation SW Connecticut Congestion Mitigation SW Connecticut Congestion Mitigation Green Power Green Power

7. Public Health Pressures Indoor Air Quality Indoor Air Quality Relationship of rapid growth of childhood Respiratory Disease and Diesel Fuel Relationship of rapid growth of childhood Respiratory Disease and Diesel Fuel Relationship of Cancer and Air Quality Relationship of Cancer and Air Quality Relationship of Hypoxia in Long Island Sound and Nitrogen Discharges Relationship of Hypoxia in Long Island Sound and Nitrogen Discharges

8. Property Tax Pressure Pressure from Citizens to hold the line on Taxes Pressure from Citizens to hold the line on Taxes Pressure to solve the problems Pressure to solve the problems Solutions must be affordable Solutions must be affordable Solutions must be reasonable Solutions must be reasonable Solutions must involve citizens, schools and public interest groups Solutions must involve citizens, schools and public interest groups The Bottom Line- The citizen must believe: 1) The solution is affordable, and The Bottom Line- The citizen must believe: 1) The solution is affordable, and 2) The benefit outweighs the cost 2) The benefit outweighs the cost

9. The Problems and the Solutions Are interdependent Are interdependent Can not be isolated Can not be isolated Should be treated as a process and methodology Should be treated as a process and methodology

10. A Solution: The Holistic Method Fairfield’s Programs combine the cost /benefit analysis to include: Energy conservation and management Energy conservation and management Environmental benefit Environmental benefit Opportunity for improved public health Opportunity for improved public health Asset Management and PM Asset Management and PM Use of proven technology Use of proven technology Taxpayers’ savings, and Taxpayers’ savings, and Private sector profit Private sector profit

11. A Solution: The Holistic Method A Public / Private Partnership is part of the method: A Public / Private Partnership is part of the method: State and federal programs: Rebuild State and federal programs: Rebuild America, Clean Cities, ICLEI, Energy Star, and Clean Energy Fund and America, Clean Cities, ICLEI, Energy Star, and Clean Energy Fund and OPM offer money and resources. OPM offer money and resources. Gas and electric Uuilities can provide both Gas and electric Uuilities can provide both

12. A Solution: The Holistic Method The private sector including ESCOS, green builders and suppliers provide valuable resources too: Experience, technology, training, consulting and even financing The private sector including ESCOS, green builders and suppliers provide valuable resources too: Experience, technology, training, consulting and even financing That is the real partnership: Citizens, public interest groups, government, utilities and private firms That is the real partnership: Citizens, public interest groups, government, utilities and private firms

13. Benchmarking Criteria 20% reduction in energy use 20% reduction in energy use 10% reduction in petroleum use 10% reduction in petroleum use 50% reduction in criteria pollutant emissions 50% reduction in criteria pollutant emissions 25% reduction in greenhouse gasses 25% reduction in greenhouse gasses 50% reduction of nitrogen discharges into LIS 50% reduction of nitrogen discharges into LIS 10% of electric use self-generated 10% of electric use self-generated

14. Benchmarking (cont.) 25% reduction in costs for energy 25% reduction in costs for energy 20% reduction in building maintenance costs 20% reduction in building maintenance costs 25% extension in the useful life of existing equipment 25% extension in the useful life of existing equipment 20% green power purchase by 2010 20% green power purchase by 2010

15. The Fairfield Program There are five (5) components 1. Buildings Infrastructure 2. Building O&M 3. Automotive 4. Fuels 5. Electric Generation

16. 1. Building Infrastructure Partners: Rebuild America, UI, SCG, JCI, OPM Partners: Rebuild America, UI, SCG, JCI, OPM Grants for energy study and lighting Grants for energy study and lighting UI: Energy Blueprint dollars UI: Energy Blueprint dollars SCG: study dollars, main extensions SCG: study dollars, main extensions JCI: Performance Contract JCI: Performance Contract

17. 2. Building Operation and Maintenance Automated Controls System Automated Controls System Computerized Preventive Maintenance System (CPMS) for all buildings Computerized Preventive Maintenance System (CPMS) for all buildings JCI responsible for all O&M on installed equipment or replacement JCI responsible for all O&M on installed equipment or replacement Ongoing Training Ongoing Training Building Energy Specialist for 3 years Building Energy Specialist for 3 years

18. Performance Contract Highlights $7,215,000 in costs: $7,215,000 in costs: –$5,600,000 capital –$1,615,000 O&M $10,800,000 in guaranteed savings; $10,800,000 in guaranteed savings; –$4,700,000 Energy –$1,800,000 Avoided contractual –$4,300,000 Avoided capital $7,215,000 will be paid back in 7.5 years $7,215,000 will be paid back in 7.5 years

19. Performance Contract: 3d party engineer approved all protocols 3d party engineer approved all protocols Different 3d party engineer reviews all annual savings claims Different 3d party engineer reviews all annual savings claims Savings are guaranteed in BTUs and KWH, not $ Savings are guaranteed in BTUs and KWH, not $ Savings are guaranteed annually or a check is written to Town Savings are guaranteed annually or a check is written to Town JCI responsible to maintain, fix or replace any installed equipment for life of contract JCI responsible to maintain, fix or replace any installed equipment for life of contract

20. Performance Contract Other: Full time BES 3 years Full time BES 3 years Annual training: Annual training: –CMMS, Metasys, –Energy bills –Energy bids Consulting for continuous improvements Consulting for continuous improvements –Indoor air quality –With building committees –Grant writing PM program PM program

21. 3. Automotive Partners: Partners: 1.Clean Cities & SCG-- grant to purchase and install fuel Station 2.OPM-- grants to pay incremental cost of 29 vehicles 3.SCG--NGV rate for gas

22. 3. Automotive: Benefits Reduced foreign oil use Reduced foreign oil use Energy choice for Homeland Security Energy choice for Homeland Security Ultra-low air emissions, especially NOx Ultra-low air emissions, especially NOx No extra cost for fuel, O&M, or capital No extra cost for fuel, O&M, or capital Equal performance Equal performance

23. 4. Fuels Tank cleanings Tank cleanings Tank O&M for low sulfur fuel Tank O&M for low sulfur fuel Dual fuel burners added to all buildings Dual fuel burners added to all buildings Fuel supply bid per MMbtu Fuel supply bid per MMbtu Natural gas bid since 1997 Natural gas bid since 1997 Fuel and electric bill monitoring saved over $150,000 Fuel and electric bill monitoring saved over $150,000

24. 5. Electric Generation Fairfield has made a substantial investment in on-site power generation Fairfield has made a substantial investment in on-site power generation At the Water Pollution Control Facility At the Water Pollution Control Facility Laboratory to demonstrate the holistic relationship of energy, environment, health, engineering and economics Laboratory to demonstrate the holistic relationship of energy, environment, health, engineering and economics Three types of generation: Three types of generation: 1. Distributed 2. Green Power 3. Combined Heat and Power (CHP)

25. 5. Electric Generation Distributed—Six (6) 60KW Capstone microturbines Distributed—Six (6) 60KW Capstone microturbines Natural gas fueled Natural gas fueled Automated to operate when gas costs less than buying electricity Automated to operate when gas costs less than buying electricity Benefits saves dollars, lowers emissions of criteria pollutants, promotes energy choice Benefits saves dollars, lowers emissions of criteria pollutants, promotes energy choice

26. 5.Electric Generation Green Power—Fairfield has initiated two projects: Green Power—Fairfield has initiated two projects: –1.Biomass- Two (2) 30KW Capstone microturbines using methane generated at the WPCF –Photovoltaic—A 55KW array to be installed on the roof of the compost recycling facility –Benefits, free electricity, zero discharge of emissions for PV and only H2O & CO2 for Biomass,

27. 5. Electric Generation Combined Heat and Power (CHP)--- Combined Heat and Power (CHP)--- –A 200KW United Technologies fuel cell, using natural gas as a fuel –The waste heat will heat the new compost facility at no cost for fuel.

28. Summary: By 2005 Fairfield will have completed programs to reduce electricity purchased by over 4,500,000KWH a year: Fairfield will have completed programs to reduce electricity purchased by over 4,500,000KWH a year: –JCI contract 900,000KWH –WPCF upgrade 1,700,000KWH –School const. 1,900,000KWH The result: Fairfield will save $485,000 in electric purchases a year

29. Summary: By 2005 Fairfield will have installed over 5,000,000KWH of self generated electricity and MMbtus of heat Fairfield will have installed over 5,000,000KWH of self generated electricity and MMbtus of heat The result: Fairfield will save over $250,000 in electric costs and $ in natural gas The result: Fairfield will save over $250,000 in electric costs and $ in natural gas

30. Summary: By 2005 The JCI performance contract guarantees about 38MMbtus of heating energy savings during the first 3 years The JCI performance contract guarantees about 38MMbtus of heating energy savings during the first 3 years The Town has actually saving over 70MMbtus The Town has actually saving over 70MMbtus The result: Fairfield has saved almost $950,000 in gas and heating fuel costs, $300,000 in the third year alone. The result: Fairfield has saved almost $950,000 in gas and heating fuel costs, $300,000 in the third year alone.