1. Energy and Air Quality Conference April 5, 2004 Innovative financing, support, and solutions for Implementing Energy Projects

2. Energy Services Companies  Turn key approach to energy and water conservation  Audits, engineering, project management, construction management, financing, and ongoing measurement & verification of savings

3. Energy Performance Contracting  A method to make facility improvements paid from guaranteed savings in energy* and operating budgets.  Virginia, Maryland, and the District have passed specific legislation to support Performance Contracting for public agencies. *Including water and sewer savings.

4. Typical Building Problems  Inefficient operation  Old equipment  Ventilation problems  Hot and cold spots  Noise

5. Typical Conservation Measures  Lighting retrofits  Control system upgrades  Building management systems  Chiller and boiler replacements  Air handling system modifications  Distributed generation  Renewable energy

6. Project Development  Client and ESCO agree on general project scope.  Utility usage baselined  Facilities surveyed for operating characteristics and conservation opportunities  ESCO creates list of recommendations with cost, savings, and potential financing options.  Client and ESCO agree on scope of work  Contract is negotiated  Financing is obtained  Project begins

7. Project Funding  Budgeted Capital  Bonding  Municipal Lease  ESCO ownership  Grants and rebates  Other sources

8. Measurement & Verification  FEMP standards dictate four M&V choices  Typical project includes a mix of utility bill monitoring, metering, and stipulated savings  Baseline is established during CEA and is matched to the expected post implementation M&V approach.  The type of conservation measures and cost will guide the development of the best M&V approach

9. Project Histories – Solano County, CA Project Size: 12 Buildings at 850,000 square feet Project Cost/Schedule: $14.4 Million Construction: September 2002 to March 2004 Energy Savings: $18,642,700 Utility Savings over 20 year life of project Scope: Central Plant Decommissioning HVAC Upgrades Energy Management Controls Upgrades Expansion of Central Water Plant Electrical Systems Expansion Solar (PV) Roof Installation Solar Shade Parking Garage Comprehensive Lighting Retrofits UtilityVision Energy Information System Installation