Developing a Comprehensive Energy Plan for Your Facility

PresenterRalph Graham, BS EET, MHA, CHFM

Director, Utilities ManagementUAB, Birmingham, ALServed on the ASHE Board 2009-2012Serving ASHE Task Force and CommitteesServing on AHA-CC Committee Since 2007Serving on AHA-CC BoardAlaSHE’s ASHE Advocacy/Sustainability LiaisonAlaSHE Member since 1996AlaSHE President 2000

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

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

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

• 50th Percentile Site EUI Benchmark: 136 kBtu/SF

• 25th Percentile Site EUI Benchmark: 118 kBTU/SF

• 10th Percentile Site EUI Benchmark: 106 kBTU/SF

• Savings Opportunity: 32%

Develop a Baseline

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 MeasureAnnual Savings ($/year)

Building Occupancy Schedules 1,500,000

Reduce Air Flow Setpoints 700,000

Retrofit Light Fixtures 300,000

Replace Water-Cooled Vacuum Pumps and Air Compressors 150,000

Install Variable Frequency Drives 40,000

Reclaim Fin Water 104,000

Meter Sewer Diversion 1,800,000

Replace Equipment 800,000

Retro-Cx Hospital Facilities 3,000,000

Modify Utility Rates and Riders 2,000,000

Total 10,394,000

Evaluate Prior Efforts

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

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

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

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: 3rd Party Asset Monetization

• Alternative 6: 3rd Party District Energy System Concession

Program

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

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

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

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

Agenda

Develop a Baseline

Evaluate Prior Efforts

Program

Schedule

Cost and Savings

Case Studies

Next Steps

Alternative 5: 3rd Party Asset Monetization

• Provides Funding through Sale of UAB District Systems• Sale Price Structured to Cover Cost of Energy

Conservation Programs• 3rd Party Pays All Costs Associated with ECP Related to

District Energy Systems• UAB Continues to Operate District Energy Systems

Program

Agenda

Develop a Baseline

Evaluate Prior Efforts

Program

Schedule

Cost and Savings

Case Studies

Next Steps

Alternative 6: 3rd Party District Energy System Concession

• Similar to Alternative 5

• 3rd Party does not Purchase the District Systems from UAB

• 3rd Party Purchases a Concession Right to Operate UAB’s Equipment and Systems

• Replacement of CEP Equipment by 3rd Party

Program

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

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

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

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

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

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

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

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

Agenda

Develop a Baseline

Evaluate Prior Efforts

Program

Schedule

Cost and Savings

Case Studies

Next Steps

Daily M&V Scorecard

Program

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

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

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

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

Agenda

Develop a Baseline

Evaluate Prior Efforts

Program

Schedule

Cost and Savings

Case Studies

Next Steps

Project Schedule*

Schedule

Phase Start Date Completion Date

Phase 1: Strategic Energy Plan 17-Feb-14 1-Oct-14

Phase 2: Evaluate Program Funding Methods 17-Feb-14 31-Jan-15

Phase 3: Implement Energy Cost Reduction Measures 1-Mar-14 31-May-16

Phase 4: Sustaining the Energy Consumption and Cost Savings 1-Mar-14 31-Dec-15

*Dates will be coordinated with UA BOT meetings and other approval requirements.

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

Category Campus Parking Decks Hospital Research

District Energy

SystemsTotal

Retro-Commissioning 750,000 0 500,000 210,000 0 1,460,000

BAS Upgrades 13,000,000 280,000 10,400,000 8,750,000 0 32,430,000

Lighting Retrofits 4,800,000 650,000 3,150,000 1,350,000 0 9,950,000

HPCH Equipment * 2,500,000 0 4,000,000 2,000,000 0 8,500,000

Combined Heating and Power * 0 0 0 0 25,000,000 25,000,000

Expand District Energy Systems 0 0 0 0 12,000,000 12,000,000

Convert Chilled Water System to Variable Primary * 0 0 0 0 4,500,000 4,500,000

Demand Response Program * 0 0 0 0 8,000,000 8,000,000

Cost of Service Based District Energy System Cost Allocation 0 0 0 0 169,000 169,000

Other Projects 2,105,000 0 1,805,000 1,231,000 4,950,000 10,091,000

Total 23,155,000 930,000 19,855,000 13,541,000 54,619,000 112,100,000

Cost and Savings

Agenda

Develop a Baseline

Evaluate Prior Efforts

Program

Schedule

Cost and Savings

Case Studies

Next Steps

Alternative 2: Bond Financing Cash Flow Projection

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

-10,000,000

-5,000,000

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

-80,000,000

-40,000,000

0

40,000,000

80,000,000

120,000,000

160,000,000

200,000,000

240,000,000

280,000,000

320,000,000

Annual Energy Cost Savings ($)

Annual Program Operating Costs ($)

Annual Program Debt Service Payments ($)

Net Annual Savings ($)

Cumulative Program Savings ($)

Program Year

Annu

al C

osts

and

Sav

ings

($/y

ear)

Cum

ulati

ve P

rogr

am S

avin

gs ($

)

* Assumes tax-exempt bond for 20 year term at all inclusive interest rate of 4.5%

Cost and Savings

Agenda

Develop a Baseline

Evaluate Prior Efforts

Program

Schedule

Cost and Savings

Case Studies

Next Steps

Case Study: University of Arkansas System

Case Studies

Item Units TotalConditioned Floor Area SF 13,214,450

Total Investment in Energy Efficiency Projects $ 135,471,303Total Investment in Energy Efficiency Projects $/SF 10.25

Baseline Annual Utility Costs $ 38,545,487Baseline Annual Utility Costs $/SF 2.92Current Annual Utility Costs $ 21,978,078Current Annual Utility Costs $/SF 1.66

Annual Savings $ 16,567,410Annual Savings $/SF 1.25Annual Savings % 43

Average Simple Payback Years 8.18

Agenda

Develop a Baseline

Evaluate Prior Efforts

Program

Schedule

Cost and Savings

Case Studies

Next Steps

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

Agenda

Develop a Baseline

Evaluate Prior Efforts

Program

Schedule

Cost and Savings

Case Studies

Next Steps

Questions?