District of Columbia Housing Authority Office of Capital
District of Columbia Housing Authority Office of Capital Programs and Development Construction Services Administration, LLC Going Green: Intelligent Investments for Public Housing How to Conduct an Energy Performance Contract July 14, 2011 Adrianne Todman, Executive Director Christopher A. Stennett, Interim Director, OCPD Presented by: Michael W. Brown & Denise Everson, OCPD
Discussion Topics n Program Background n Program Analysis n Economic Analysis n Summary and Questions
Energy Capital Improvement Program (ECIP) n n ECIP is a capital projects program designed to financially leverage the energy and water savings associated with the replacement of aging equipment and infrastructure. Using established HUD subsidy incentives, DCHA funded the program from energy and water savings.
Program Goals ØProvide safe, comfortable, and affordable housing that improves the quality of life for the Residents; ØUpgrade and Modernize Housing equipment and infrastructure; ØReduce DCHA energy consumption; ØReduce DCHA operations, emergency repair and maintenance costs; and to ØIncrease DCHA staff capabilities and system monitoring.
DCHA’s ECIP Concept to Monitoring OCPD: Project Planning DCHA: Board Resolution OCPD: Utility Baseline DCHA: Submit HUD Application OCPD: Energy / Facility Audit DCHA: Select Bond/Lease/Loan Financing method OCPD: Projects Selected DCHA: RFP for financing arrangements OCPD: Draft Program Documents* DCHA: Complete Financing Package * Program documents include: Project Management Plan; Construction Management Plan; Commissioning Plan; M&V Reporting Plan DCHA: Board Approval HUD Approval DCHA: Financial Closing** OCPD/CSA: Construction Begins DCHA: Loan repayment begins OCPD/CSA: Commissioning & M&V Monitoring Begins ** Upon financing can repay DCHA for all study loans, fees, consultants etc.
ECIP Program History n n n FY’ 00: established the DCHA Energy & Environmental Master Plan FY’ 01: established DCHA Utility Billing and Administration Database FY’ 04: completed the most comprehensive 3 -year historical utility consumption baseline by unit/property in HUD history; conducted energy audits for energy conservation measures by property
ECIP Program History n n n 1 QFY’ 06: submitted application to HUD for approval 1 QFY’ 07: solicited and chose a lender 4 QFY’ 07: received HUD approval 1 QFY’ 08: executed agreement with lender and received funding 1 QFY’ 11: Over 95% construction completed
DCHA ECIP Profile $21. 1 million in critical infrastructure & equipment replacements ® 31 Properties ® 5, 444 Units ® 28, 000 Residents affected ® Average $16 million annual utility budget ® $3. 9 million in annual savings ® ($3. 9/$16 = 24% reduction)
ECIP Scope of Work Energy Conservation Measures (ECM) n n n Boilers Chillers Hot Water Systems Fan Coils Water Saving Devices Lighting Central Energy Management System n n Automation/New Technologies Metering & Communication Preventive Maintenance Commissioning
ECM Scope of Work Heating Systems 24 properties $ 8, 866, 250 Cooling Systems 12 properties $ 1, 079, 000 Domestic Hot Water 23 properties $ 2, 647, 000 System Controls 20 properties $ 1, 440, 000 Fan Coils 10 properties $ 1, 862, 000 Lighting 31 properties (5, 444 units) $ Various HVAC Improvements 12 properties $2, 993, 650 Water Saving Fixtures 31 properties $ 2, 068, 340 TOTAL $21, 119, 530 163, 290
Comparing ECIP Finance Options Rate Fees Flexibility Term Commercial Bank Loan Mid-level High Full Short Bonds (via DC Housing Finance Agency) Lowest High Limited Long Taxable Master Equipment Lease High Low Full Long Tax-Exempt Master Equipment Lease Low Limited Long Energy Savings Performance Contract Highest None Midlevel
Comparing ECIP Finance Options Rate Fees Flexibility Term Commercial Bank Loan Mid-level High Full Short Bonds (via DC Housing Finance Agency) Lowest High Limited Long Taxable Master Equipment Lease High Low Full Long Tax-Exempt Master Equipment Lease Low Limited Long Energy Savings Performance Contract Highest None Midlevel
Tax-Exempt Master Equipment Lease n n n DCHA acquired all equipment with the funds raised to complete the program DCHA makes “Rental Payments” pursuant to the terms of the Master Lease Agreement 12 to 15 month Construction period before Debt Service commenced, with Interest During Construction added to Financed Amount Debt Service Reserve of 3 to 6 months was added to Amount Financed – repaid at end of Term – this would serve as the “guarantee” Assets owned by Financier and sold to DCHA for $1. 00 at end of Term
Self Performance Economic Analysis • Capital Cost - $21. 1 million • Industry/ HUD Program Soft Costs (ESCO) - 76% • $21. 1 X 76% = $16. 0 M + $21. 1 M = $37. 1 M (Total Cost) Program Costs - 22% • $21. 1 X 22% = $4. 6 M + $21. 1 M = $25. 7 M (Total Cost) • Project Savings - $11. 4 million • O&M avoided costs - $2. 4 million
45, 0 44, 0 43, 0 42, 0 41, 0 40, 0 39, 0 38, 0 37, 0 36, 0 35, 0 Million Therms 4, 0 3, 5 0, 80 43, 0 0, 80 Water 21% reduction 0, 70 38, 4 0, 61 0, 60 0, 50 0, 40 0, 30 0, 20 0, 10 0, 00 FY 04 4, 5 0, 90 Electricity 10% reduction Million CCF Million k. Wh Proposed Energy & Water Consumption Savings FY 05 FY 06 Rolling base Natural Gas 20% 3, 9 reduction Post 3, 1 FY 04 $M FY 05 Cost FY 06 Rolling base Savings 3, 0 2, 5 2, 0 1, 5 1, 0 0, 5 0, 0 FY 04 FY 05 FY 06 Rolling base Post Electricity $5. 2 M $550, 000 10% Natural Gas $6. 0 M $1. 2 M 20% Water $4. 1 M $0. 9 M 21% Total $15. 3 M $2. 65 M 17%
45, 0 44, 0 43, 0 42, 0 41, 0 40, 0 39, 0 38, 0 37, 0 36, 0 35, 0 Million Therms 4, 0 3, 5 0, 80 43, 0 0, 80 Water 21% reduction 0, 70 38, 4 0, 61 0, 60 0, 50 0, 40 0, 30 0, 20 0, 10 0, 00 FY 04 4, 5 0, 90 Electricity 10% reduction Million CCF Million k. Wh Proposed Energy & Water Consumption Savings FY 05 FY 06 Rolling base Natural Gas 20% 3, 9 reduction Post 3, 1 FY 04 $M FY 05 Cost FY 06 Rolling base Savings 3, 0 2, 5 2, 0 1, 5 1, 0 0, 5 0, 0 FY 04 FY 05 FY 06 Rolling base Post Electricity $5. 2 M $550, 000 10% Natural Gas $6. 0 M $1. 2 M 20% Water $4. 1 M $0. 9 M 21% Total $15. 3 M $2. 65 M 17%
45, 0 44, 0 43, 0 42, 0 41, 0 40, 0 39, 0 38, 0 37, 0 36, 0 35, 0 Million Therms 4, 0 3, 5 0, 80 43, 0 0, 80 Water 21% reduction 0, 70 38, 4 0, 61 0, 60 0, 50 0, 40 0, 30 0, 20 0, 10 0, 00 FY 04 4, 5 0, 90 Electricity 10% reduction Million CCF Million k. Wh Proposed Energy & Water Consumption Savings FY 05 FY 06 Rolling base Natural Gas 20% 3, 9 reduction Post 3, 1 FY 04 $M FY 05 Cost FY 06 Rolling base Savings 3, 0 2, 5 2, 0 1, 5 1, 0 0, 5 0, 0 FY 04 FY 05 FY 06 Rolling base Post Electricity $5. 2 M $550, 000 10% Natural Gas $6. 0 M $1. 2 M 20% Water $4. 1 M $0. 9 M 21% Total $15. 3 M $2. 65 M 17%
45, 0 44, 0 43, 0 42, 0 41, 0 40, 0 39, 0 38, 0 37, 0 36, 0 35, 0 Million Therms 4, 0 3, 5 0, 80 43, 0 0, 80 Water 21% reduction 0, 70 38, 4 0, 61 0, 60 0, 50 0, 40 0, 30 0, 20 0, 10 0, 00 FY 04 4, 5 0, 90 Electricity 10% reduction Million CCF Million k. Wh Proposed Energy & Water Consumption Savings FY 05 FY 06 Rolling base Natural Gas 20% 3, 9 reduction Post 3, 1 FY 04 $M FY 05 Cost FY 06 Rolling base Savings 3, 0 2, 5 2, 0 1, 5 1, 0 0, 5 0, 0 FY 04 FY 05 FY 06 Rolling base Post Electricity $5. 2 M $550, 000 10% Natural Gas $6. 0 M $1. 2 M 20% Water $4. 1 M $0. 9 M 21% Total $15. 3 M $2. 65 M 17%
45, 0 44, 0 43, 0 42, 0 41, 0 40, 0 39, 0 38, 0 37, 0 36, 0 35, 0 Million Therms 4, 0 3, 5 0, 80 43, 0 0, 80 Water 21% reduction 0, 70 38, 4 0, 61 0, 60 0, 50 0, 40 0, 30 0, 20 0, 10 0, 00 FY 04 4, 5 0, 90 Electricity 10% reduction Million CCF Million k. Wh Proposed Energy & Water Consumption Savings FY 05 FY 06 Rolling base Natural Gas 20% 3, 9 reduction Post 3, 1 FY 04 $M FY 05 Cost FY 06 Rolling base Savings 3, 0 2, 5 2, 0 1, 5 1, 0 0, 5 0, 0 FY 04 FY 05 FY 06 Rolling base Post Electricity $5. 2 M $550, 000 10% Natural Gas $6. 0 M $1. 2 M 20% Water $4. 1 M $0. 9 M 21% Total $15. 3 M $2. 65 M 17%
45, 0 44, 0 43, 0 42, 0 41, 0 40, 0 39, 0 38, 0 37, 0 36, 0 35, 0 Million Therms 4, 0 3, 5 0, 80 43, 0 0, 80 Water 21% reduction 0, 70 38, 4 0, 61 0, 60 0, 50 0, 40 0, 30 0, 20 0, 10 0, 00 FY 04 4, 5 0, 90 Electricity 10% reduction Million CCF Million k. Wh Proposed Energy & Water Consumption Savings FY 05 FY 06 Rolling base Natural Gas 20% 3, 9 reduction Post 3, 1 FY 04 $M FY 05 Cost FY 06 Rolling base Savings 3, 0 2, 5 2, 0 1, 5 1, 0 0, 5 0, 0 FY 04 FY 05 FY 06 Rolling base Post Electricity $5. 2 M $550, 000 10% Natural Gas $6. 0 M $1. 2 M 20% Water $4. 1 M $0. 9 M 21% Total $15. 3 M $2. 65 M 17%
Reported Energy & Water Consumption Savings During Construction Million k. Wh 43, 0 0, 90 Electricity Savings 0, 80 43, 0 42, 5 42, 3 42, 0 42, 3 41, 7 0, 64 0, 60 0, 50 0, 40 0, 30 0, 20 41, 5 0, 10 0, 00 41, 0 Rolling base 4, 5 4, 0 Million Therms Water 0, 78 Savings 0, 76 0, 80 0, 70 Million CCF 43, 5 FY 08 FY 09 3, 9 Natural Gas Savings 3, 7 3, 5 3, 1 $M 3, 4 3, 0 2, 5 2, 0 1, 5 1, 0 0, 5 0, 0 Rolling base FY 08 FY 09 Rolling base FY 10 FY 08 3 yr Cost FY 09 FY 10 Total Savings Electricity $15. 1 $430, 000 3% Natural Gas $14. 5 $1. 78 M 12. 3% Water $13. 8 $2. 36 M 12% TOTAL $43. 4 $4. 57 M 6. 5% Vs. projected 95% $3. 53 M 129%
Energy Operations & Maintenance Savings Capital and Operating Budget FY 00 FY 01 Expenses Projected Expenses Rate Reduction Emergency Repairs/Service $639, 632 $309, 632 52% A/E JOC Contracts $569, 900 $519, 900 9% Fire and Security $299, 856 $199, 856 33% Labor $1, 200, 000 $1, 200, 00 0 0% Emergency Capital Cost Avoided $9, 787, 533 $7, 902, 88 8 19% Totals $8, 933, 47 21% $11, 298, 12 • Avoided costs as a direct result of energy capital equipment replacement 1 6 • TOTAL Savings estimated from DCHA FY 00 and FY 01 budget analysis ESTIMATED SAVINGS $2, 364, 645 • Savings are not captured under HUD incentives
ECIP IN ACTION
Demonstrated Savings Greenleaf Senior / Gardens – Natural Gas n Completed boiler retrofit 14% reduction 300 000 250 000 Natural Gas Savings 242 360 225 799 217 584 193 331 200 000 Therms n 150 000 100 000 50 000 0 Rolling base FY 08 FY 09 FY 10
Demonstrated Savings Kenilworth Courts - Water n Completed water fixture replacement More than 51% reduction Kenilworth Courts Water Savings 85 380 90 000 80 000 77 879 76 019 70 000 60 000 CCF n 50 000 40 205 40 000 30 000 20 000 10 000 0 Rolling base FY 08 FY 09 FY 10
Demonstrated Savings Kentucky Courts - Electric n Completed chiller retrofit 27% reduction 1 400 000 1 200 000 Electricity Savings 1 159 733 1 000 k. Wh n 865 920 838 120 846 180 FY 08 FY 09 FY 10 800 000 600 000 400 000 200 0 Rolling base
Summary n n n Modernized Infrastructure New Technology $4 million/year in cost efficiencies Complete in 36 Months Commissioning starting in next 60 days Establish Energy & Environmental Leadership
Our Energy Partner since 1996… Contact Information: Paul Orentas ECIP@thinkboxgroup. com Office: 540 -338 -8572 GSA Schedule GS-21 F-0030 U
Contact Information Keith A. Kindel R. Denise Everson, LEED AP Michael W. Brown kkindel@dchousing. org reverson@dchousing. org mbrown@dchousing. org (202) 535 -2736 (202) 535 -2566 (202) 535 -2741 Office of Capital Programs and Development 1133 North Capitol St. NE, Suite 242 Washington, DC 20002 Fax: (202) 535 -1102
- Slides: 29