ISCN 2017: Bond Financing for Deep Energy Retrofits

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ISCN Conference, University of British Columbia June 28, 2017

Transcript of ISCN 2017: Bond Financing for Deep Energy Retrofits

Page 1: ISCN 2017: Bond Financing for Deep Energy Retrofits

ISCN Conference, University of British Columbia June 28, 2017

Page 2: ISCN 2017: Bond Financing for Deep Energy Retrofits

ISCN Conference, University of British Columbia June 28, 2017

Bond Financing for Deep Energy Retrofits

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290 acres (117 hectares)

14 million sf (1.3M sm) in 180 buildings

20,000 students

20,000 faculty and staff

12 schools (Arts & Sciences, Business,

Engineering, Medicine, Law, etc.)

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University of Pennsylvania

ISCN Conference, University of British Columbia, June 28, 2018

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Penn’s College Hall, 1900s

ISCN Conference, University of British Columbia, June 28, 2018

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Penn Main Campus Growth & Building Age

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Facilities Challenges:

• Over $600M (€530M) in deferred

maintenance

• Difficulty attracting donor funds for

maintenance and/or renovations

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Deferred maintenance example:

Chem Building Exhaust Fans

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Ongoing Penn Solutions:

• ~$30M (€26M) annual repair budget

• ~$5 to $10M (€4.4M to €9M) for efficiency

project from utilities budget (if available)

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Penn’s Century Bond Program:

• $300M (€264M) bond issued in October 2012

• 100 year term

• 4.67% interest

• Funds used for deep energy retrofits &

deferred maintenance

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Century Bond Goals:

• Reduce energy use and emissions

• Undertake comprehensive rather than

piecemeal upgrades

• Reduce deferred maintenance backlog

• Pay bond interest with utility savings

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Century Bond proceeds:

$300M

$3M in long-term investment = $300M in 100

years

ISCN Conference, University of British Columbia, June 28, 2018

Century Bond

Investment/Deployment Strategy

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Century Bond

Investment/Deployment Strategy

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Investments

Strategic Priorities

$97M

$3M in long-term investment = $300M in 100

years

Century Bond proceeds:

$300M

ISCN Conference, University of British Columbia, June 28, 2018

Funds held in short, intermediate, and long term investments, used

as needed for capital projects

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Century Bond

Investment/Deployment Strategy

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Investments

Strategic Priorities

$97M

$3M in long-term investment = $300M in 100

years

Century Bond proceeds:

$300M

Earnings

ISCN Conference, University of British Columbia, June 28, 2018

$200M Zero-interest Capital Project Loans to

Schools

Funds held in short, intermediate, and long term investments, used

as needed for capital projects

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Century Bond

Investment/Deployment Strategy

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Investments

$200M Zero-interest Capital Project Loans to

Schools

Strategic Priorities

$97M

$3M in long-term investment = $300M in 100

years

Century Bond proceeds:

$300M

Earnings

Lighting $9M(45 buildings)

HVAC $191M(10 buildings)

ISCN Conference, University of British Columbia, June 28, 2018

Funds held in short, intermediate, and long term investments, used

as needed for capital projects

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Century Bond

Investment/Deployment Strategy

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Investments

$200M Zero-interest Capital Project Loans to

Schools

Strategic Priorities

$97M

$3M in long-term investment = $300M in 100

years

Century Bond proceeds:

$300M

Earnings

Combined earnings from

investment +utility savings =

$14M annual interest

Earnings

utility savings

$14M annual interest payment

Lighting $9M(45 buildings)

HVAC $191M(10 buildings)

Utility Savings =

+

ISCN Conference, University of British Columbia, June 28, 2018

Funds held in short, intermediate, and long term investments, used

as needed for capital projects

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Century Bond

Investment/Deployment Strategy

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Investments

Earnings

Principal returned to Century Bond pool by

Schools & Centers (0% interest) over 30 years

to be made available for future projects

Strategic Priorities

$97M

$3M in long-term investment = $300M in 100

years

Century Bond proceeds:

$300M

$200M Zero-interest Capital Project Loans to

Schools

Lighting $9M(45 buildings)

HVAC $191M(10 buildings)

Utility Savings

Earnings

utility savings

$14M annual interest payment

+

=

ISCN Conference, University of British Columbia, June 28, 2018

Funds held in short, intermediate, and long term investments, used

as needed for capital projects

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Example: Chemistry 1973 HVAC Upgrades

150,000 SF chemistry lab and teaching building 18ISCN Conference, University of British Columbia, June 28, 2018

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HVAC Scope

• Replaced constant

volume Air Handling

Units (AHUs) with

variable volume AHUs

• Upgraded over 140

individual fume hoods

• Building remained

occupied

• Project costs around

$20M (€17M)

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Typical research lab

4th floor classroom

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New Strobic Fans / EAHU

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Case Study: Chemistry 1973

ISCN Conference, University of British Columbia, June 28, 2018

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5th Floor

4th Floor

All Floors

Each AHU replacement cut airflow by 20,000 cfm

Annual energy savings: over $1.4M (€1.23)

3rd Floor

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150,000 cfm

4200 cmm

130,000 cfm

3700 cmm

110,000 cfm

3100 cmm

90,000 cfm

2500 cmm

May 19 June 18 July 18

Air volume savings

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Century Bond 5-year outcomes:

• 45 lighting projects ($9M / €8M cost)

$1.1M (€1M) annual savings

• Five (of 10) HVAC projects ($90M cost)

complete – over $4M annual saving

(estimated)

• 6000 MTCDE reduced annually (estimated)

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Contact us at:

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