Green Sustainability Solutions

Best Practice PPP: Energy Efficiency Projects - Lighting

Oceans Energy | Bennett Johnson, III, President | bjohnson@oceansenergy.com

For the CDFA Summer School – Intro P3 Finance Course

on 8/12/2015

G-5

The Five P’s of P3’s

1

People

Percentage

Politics

Process

Project

• Pursuit costs can be astoundingly expensive.

• Projects that have a clean & solid P3 process in place will greatest chances for success.

What is the Process for Energy Efficient or Renewable Energy Projects

Monitoring and Verification

Financing and Implementation

Preliminary energy study

Investment grade energy audit of the designated buildings

How much energy is being used, when and how

Execution of the project will commence with the final selection of best team

Internal versus external roles

Develop Project Plan

Perform Energy Study and Audit

Develop a Project Team

First step in the process

Identify a Project Manager who will assume responsibility and oversight over other key team members

Municipal Lease

Tax-Exempt Lease Purchase

State/Local Govt. Leasing Pools

Tax-Exempt Bonds

Revolving Loan Pools

Private Financing

Federal and State Grant Funding

Three phases:

1. Construction and commissioning

2. Operations

3. Long Term Maintenance

Annual monitoring of production, savings and standards of service

Identify key functions of the process to determine where expertise lies and whether internal team members or external partners

2

Reliability

Maintenance

Safety

Operational Efficiency Energy Efficiency

Environmental Regulation

Energy Savings

Meet EE targets via energy savings from LEDs and/or dimming

Reduce accidents and criminal incidents via better lit public venues

Strong Incentives to Invest in Street Lights

Reduce energy usage by up to 75% saving money

Eliminate expensive nightly truck rolls to identify outages

Reduce down time via instant outage notifications

Carbon Monetization

Reduce carbon footprint

3

3

5 Major LED Fixture Design and Manufacturing Challenges

Optic System

Thermal Management & Mechanical

Electronic Driver

Manufacturing

LEDs Best in

Class

4

Urban Planning and Modelling

5

Risks to Project Implementation

6

A marriage not a date – the wrong partner chosen

Lack of stakeholder education

Stakeholders expectations not met

Transperancy not percieved

Lack of clear policies reflecting public interest

Length of partnership term

Project technology is relatively new

Actual ownership of infrastructure

Sustainable Project for Forest Park, Illinois

Reduce Carbon Footprint

Reduce Energy & Maintenance Expenses

Improve Lighting and Control

Enhance Security and Safety

Why Street Lights • Untapped energy asset

• Aging infrastructure

• Maintenance already outsourced

Timeline • One year of discussion

• Six Month Stakeholder Support Bulding

• Six Month Procurement Process

• Six Month Audit

• Four Month Implementation

Project Scope • Over 1,400 Street Upgrade

• Residential, Main thoroughfares, Alley lights

• Four LED Traffic Signal upgrades

• State Enhanced Efficiency Incentive

• $1.7 Million Total Cost

7

Energy & Maintenance Saving Opportunities

Street

Lighting

66% Savings

Traffic

Signal

90% Savings

Alley Way Lighting

85% Savings

The upgraded LED infrastructure has significantly less maintenance and will have an immediate impact on annual expenses. The new LED fixtures have a 10 year warranty on

parts and labor.

8

Energy & Maintanence Bills

E&M Bills E&M Bills

Village Savings

Village Savings

Finance Payment

$146,380 77.7%

$188,330 100%

$33,330 17.7%

$8,600 4.6%

$151,660 80.5%

$36,660 19.5%

Estimated Energy Usage

Estimated Saved Energy Usage

569,150 KWh 28.0%

1,460,180 KWh 72.0%

Current Estimated Energy Usage

2,029,330 KWh 100%

During Contract and Post Contract

Before Contract

Before Contract First Year of Contract Post Contract

**No Energy Rate Increase

Financing Options • Capital Lease

• General Obligation

• Both based on fixture review,

warranty and E&M savings

• Final choice was local

community bank

9

10

Getting Off the Grid & More Utilizing Smart Light Infrastructure to Transform

into Smart Connected Cities

Wifi/Broadband Access Traffic Management and Tracking

Alerts/Advertising On-Demand Light Levels

Video Surveillance/Public Safety Environmental Sensors

Weather Reporting Electric Charging Stations

Automated Water/Gas Meter Reading

Innovative Energy Solutions

11

Oceans Energy creates, builds & manages innovative energy solutions with a focus in the following areas: • Energy Conservation - Design, install & monitor ECMs that enable “paid from

savings” projects • Renewable Energy - Develop, operate and maintain generation and distribution

systems • Energy Consulting - Energy procurement, utility data mining, utility bill efficiency,

energy audits

We specialize in effective sustainable solutions and carbon footprint reduction. For further information please contact: Bennett Johnson III Founder, President 312-925-3047 bjohnson@oceansenergy.com