1. Developing a Comprehensive Energy Plan for Your Facility

2. Presenter Ralph Graham, BS EET, MHA, CHFM Director, Utilities Management UAB, Birmingham, AL Served on the ASHE Board 2009-2012 Serving ASHE Task Force and Committees Serving on AHA-CC Committee Since 2007 Serving on AHA-CC Board AlaSHE’s ASHE Advocacy/Sustainability Liaison AlaSHE Member since 1996 AlaSHE President 2000

3. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps Agenda Establish a Baseline Evaluate Energy Conservation Efforts Determine Program Objectives Proposed Energy Conservation Program Program Schedule Program Costs and Savings Case Studies Next Steps

4. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps UAB Baseline Operates and Maintains 12.2 Million Conditioned SF Total Utility Cost - $47.2 Million O&M Cost - $7.27 per SF Utility Cost - $3.87 per SF Energy Management Department Funded by 3.07% Utility Surcharge Develop a Baseline

5. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps Energy Efficiency Benchmarking UAB Site EUI: 156 kBtu/SF 50 th Percentile Site EUI Benchmark: 136 kBtu/SF 25 th Percentile Site EUI Benchmark: 118 kBTU/SF 10 th Percentile Site EUI Benchmark: 106 kBTU/SF Savings Opportunity: 32% Develop a Baseline

6. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps Prior Energy Conservation Program (ECP) Efforts UAB Facility Management Replaced 10,000 Fixtures in CY2013! Energy Cost Reduction Measure Annual Savings ($/year) Building Occupancy Schedules1,500,000 Reduce Air Flow Setpoints700,000 Retrofit Light Fixtures300,000 Replace Water-Cooled Vacuum Pumps and Air Compressors 150,000 Install Variable Frequency Drives40,000 Reclaim Fin Water104,000 Meter Sewer Diversion1,800,000 Replace Equipment800,000 Retro-Cx Hospital Facilities3,000,000 Modify Utility Rates and Riders2,000,000 Total10,394,000 Evaluate Prior Efforts

7. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps Program Objectives Reduce Energy Consumption to Lowest 10% of Peer Institutions Reduce Greenhouse Gas Emissions by more than 25% Reduce Annual Energy Costs by more than $15 Million Improve Thermal Comfort, IAQ and Occupant Safety Extend District Systems to New and Existing Buildings Single Platform Instrumentation, Control and Electronics System Upgrade Building Automation Systems Sustain Energy Savings Program

8. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps Proposed Energy Conservation Program Preliminary Program Cost Estimate: $112.1 Million Estimated Annual Program Savings: $15 Million Program Implemented in 4 Phases: – Phase 1: Develop UAB Strategic Energy Plan – Phase 2: Evaluate Energy Conservation Program Funding Methods – Phase 3: Implement Energy Cost Reduction Measures – Phase 4: Sustain Energy Consumption and Cost Savings Program

9. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps Phase 1: Develop UAB Strategic Energy Plan Supply-Side Audits Building Demand-Side Audits District Energy System Demand-Side Audits ICE Long-Range Plan Campus Strategic Energy Plan (StEP) ICE Staff Assessment & Benchmarking Program

10. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps Phase 2: Evaluate Energy Conservation Program Funding Methods Alternative 1: Business as Usual Alternative 2: UAB Facilities Department Bond Issue Alternative 3: District Energy System Reserves with Reinvestment of Savings Alternative 4: Energy Savings Performance Contract Alternative 5: 3 rd Party Asset Monetization Alternative 6: 3 rd Party District Energy System Concession Program

11. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps Alternative 1: Business as Usual Flat Rate for Steam and Chilled Water Consumption Individual Department Funded Energy Reduction Projects Conventional District Energy Systems Design Additional Plant Capacity Installed for Campus Growth Multiple Building Systems – Not Integrated Program

12. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps Alternative 2: UAB Facilities Bond Issue Provides Funding by Sale of Tax-Exempt Bonds Bond Covers all Program Costs UAB Manages All Activities Bond Payment Allocated to Each Campus Department Steam and Chilled Water Rates Established by Cost of Service Studies Program

13. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps Alternative 3: District Energy System Reserves with Reinvestment of Savings Invest in Highest Payback Projects First Reinvest Savings to Fund Remaining Projects Self-Financed Program Slower Program Implementation Schedule Program

14. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps Alternative 4: Energy Savings Performance Contract UAB Provides Financing Energy Savings Company (ESCO) Implements “Turnkey” Cost Reduction Measures ESCO Guarantees Annual Savings Contingent on Continued Contract with UAB Actual Savings are Measured & Verified through Pre-Approved Plan Program

15. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps Alternative 5: 3 rd Party Asset Monetization Provides Funding through Sale of UAB District Systems Sale Price Structured to Cover Cost of Energy Conservation Programs 3 rd Party Pays All Costs Associated with ECP Related to District Energy Systems UAB Continues to Operate District Energy Systems Program

16. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps Alternative 6: 3 rd Party District Energy System Concession Similar to Alternative 5 3 rd Party does not Purchase the District Systems from UAB 3 rd Party Purchases a Concession Right to Operate UAB’s Equipment and Systems Replacement of CEP Equipment by 3 rd Party Program

17. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps Phase 3: Implement Energy Cost Reduction Measures Supply-Side ECP District Energy System Demand-Side ECP Expansion of District Energy System Building Demand-Side ECP ICE System Upgrades Program

18. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps Supply-Side ECP Negotiate Rates and Riders Removing Tax from Exempt Accounts Demand Response Other Utility Incentives Program

19. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps District Energy Demand-Side ECP Rate Design for Fixed Cost Recovery Increase Chilled Water Temperature Difference Extend District Energy to New and Existing Buildings Install Most Cost-Effective – Combined Heat and Power – Heat Pump Chiller Heater – Thermal Storage Program

20. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps Building Demand-Side ECP HVAC & BAS Upgrades Retro-Commissioning Lighting Retrofits UAB Colleges: School of Medicine College of Arts and Sciences College of Business College of Dentistry College of Education College of Engineering College of Health Professions College of Nursing College of Optometry College of Public Health UAB Hospital Program

21. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps ICE System Upgrades Consolidate into Single ICE Platform – Building BAS – Plant PLC – CAMS – Metering System Integrate BAS and ADT Systems Unique Operator Passwords Energy Efficiency Programming Program

22. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps Phase 4: Sustain Energy Consumption and Cost Savings Sustain Reduced Energy Consumption – Program Support – Remote Monitoring – Operator Training Maintain Achieved Energy Cost Savings – Measurement & Verification Program

23. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps Remote Monitoring Regular Engineer and Controls Technician Review of ICE Systems Develop List of Issues Present Issues Log to UAB on a Monthly Basis Assist Personnel with Troubleshooting Program

24. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps Measurement & Verification Obtain and Compile Utility Bills for Each Building Establish a Baseline Obtain Daily Utility Meter Readings Issue Daily Scorecard Program

25. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps Daily M&V Scorecard Program

26. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps Training O&M Staff Pre-Assessment of O&M Staff to Determine Training Requirements Develop Curriculum e-Learning Programs Comprehensive Training Program with Classroom and Field Training Sessions Post-Test O&M Staff to Assess Training Effectiveness and Determine if Additional Training is Required Program

27. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps ICE Standards Standard Systems List Control Diagrams Points List Sequence/Programming Instructions Network Standards Utility Metering Applications Web Services Program

28. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps Design & Commissioning Standards Develop Design Standards – HVAC – TAB – CEMS – Information Technology – Interior & Exterior Lighting Develop Commissioning Standards Develop Matrix to Identify Applicability of Standards to Project Type Program

29. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps Utility Management Services Review Each Utility Bill Verify Utility Rates and Riders Verify Proper Metering Hedge Natural Gas Commodity Participate in Demand Response Programs Program

30. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps Project Schedule* Schedule PhaseStart DateCompletion Date Phase 1: Strategic Energy Plan17-Feb-141-Oct-14 Phase 2: Evaluate Program Funding Methods 17-Feb-1431-Jan-15 Phase 3: Implement Energy Cost Reduction Measures 1-Mar-1431-May-16 Phase 4: Sustaining the Energy Consumption and Cost Savings 1-Mar-1431-Dec-15 *Dates will be coordinated with UA BOT meetings and other approval requirements.

31. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps Estimated Cost of Projects * Project to be Reviewed for Economic Feasibility CategoryCampus Parking Decks HospitalResearch District Energy Systems Total Retro-Commissioning 750,0000500,000210,00001,460,000 BAS Upgrades 13,000,000280,00010,400,0008,750,000032,430,000 Lighting Retrofits 4,800,000650,0003,150,0001,350,00009,950,000 HPCH Equipment * 2,500,00004,000,0002,000,00008,500,000 Combined Heating and Power * 000025,000,000 Expand District Energy Systems 000012,000,000 Convert Chilled Water System to Variable Primary * 00004,500,000 Demand Response Program * 00008,000,000 Cost of Service Based District Energy System Cost Allocation 0000169,000 Other Projects 2,105,00001,805,0001,231,0004,950,00010,091,000 Total 23,155,000930,00019,855,00013,541,00054,619,000112,100,000 Cost and Savings

32. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps Alternative 2: Bond Financing Cash Flow Projection * Assumes tax-exempt bond for 20 year term at all inclusive interest rate of 4.5% Cost and Savings

33. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps Case Study: University of Arkansas System Case Studies ItemUnitsTotal Conditioned Floor AreaSF13,214,450 Total Investment in Energy Efficiency Projects$135,471,303 Total Investment in Energy Efficiency Projects$/SF10.25 Baseline Annual Utility Costs$38,545,487 Baseline Annual Utility Costs$/SF2.92 Current Annual Utility Costs$21,978,078 Current Annual Utility Costs$/SF1.66 Annual Savings$16,567,410 Annual Savings$/SF1.25 Annual Savings%43 Average Simple PaybackYears8.18

34. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps Approve and Execute ECP Proposals Complete Hospital ECP Projects – Retro-Cx Surgery HVAC Systems in North Pavilion – Retro-Cx Remaining HVAC System in North Pavilion – Retro-Cx Spain-Wallace – Retro-Cx West Pavilion – Pilot ADT Interface for WIC and North Pavilion Next Steps

35. Agenda Develop a Baseline Evaluate Prior Efforts Program Schedule Cost and Savings Case Studies Next Steps Questions?