Energy Services Coalition Tuesday Jan. 7 th 2014 Porter Hall / Wendell Chino Building

1. Energy Services Coalition Tuesday Jan. 7th 2014 Porter Hall / Wendell Chino Building

2. ESC - Who are We? • Energy Services Coalition - coalition of public and private energy experts focused on the promotion of Guaranteed Energy Performance Contracting. • Mission:To increase energy efficiency and infrastructure modernization through energy savings performance contracting.  • Educational outreach • ESC Meetings: • Forum to address performance contracting issues • Distribute legislative updates • Develop business relationships • Facilitate info exchange on best practices

3. Overview ofEnacting Legislation and FinancingEnergy Efficiency Projects Neal Skiver

4. Success Stories • Investment Grade Audit (IGA) Projects Which Achieved Certification of Energy Cost Savings, As Required by EMNRD • Buildings Managed by NMDCA – Mark Mackenzie • Energy Audits Performed –John McAllister/ EATON (f.k.a. EMC Engineers, Inc) • New Mexico Museum of Fine Arts, Santa Fe • Museum of Natural History, Albuquerque • Museum of Space History, Alamogordo James McLane

5. Success Stories • New Mexico Museum of Fine Arts, Santa Fe • Original building was built in 1917, Approximately 44,000 Sq Ft. • Remodels of the building and HVAC systems and with an addition of a new wing, 13,500 Sq Ft. over the last several decades. • IGA produced 9 Energy Efficiency Measures (EEM) • Energy cost savings: $6,893/Yr

6. Success Stories • Museum of Natural History, Albuquerque • Original building was built in 1982, expanded in 1998, Approximately 127,000 Sq Ft. • IGA produced 8 Energy Efficiency Measures (EEM) • Energy cost savings: $22,028/Yr

7. Success Stories • Museum of Space History, Alamogordo • Original building was built in 1975, Formerly known at the International Space History Hall of Fame • IGA produced 10 Energy Efficiency Measures (EEM) • Energy cost savings: $19,770/Yr

8. Vote: Secretary Board Position DUTIES OF SECRETARY • Maintains the “Book of Meeting Minutes” and records for NM ESC chapter. • Report the previous minutes at each local ESC Meetings. • Keeper of the NM ESC Bylaws as well as any changes. • Organize upcoming meeting locations. • Interest By: • Lila GarzaAlma Energy Group, LLC Mary Ann Ulik

9. Break

10. Energy Performance Contracting Overview For New Mexico 2014 Boone Birdsell

11. EPC Laws: Energy Performance Contracting Reference: Chapter 6, Article 23 of the New Mexico Statutes Public Facility Energy Efficiency and Water Conservation Act Amended July 1, 2009 AlsoHouse Bill 603 July 1, 2009

12. Performance Contracting

13. Example Actual Project: SelfFunded Project w/ Positive Cash flow • Project “Cost Avoidance” (12 year term) • 12 year Total Cost $7,611,026.00 • 12 year Total Savings $8,011,190.00 • Positive $400,164.00 Actual Cash Flow over life of the project

14. Performance Contract History in NM. House Bill 603July 2009 PC Legislation EPC projects In NM Sep 2011 PC Path Set for NM 1993 2004 2013 2014 2011 2009 Start PC Pilot Projects PC Enabling Legislation Passed in NM. PC Projects Completed Thru 2004

15. Performance Contracting Paths For New Mexico 2014 Oversight and guidance is provided by TheNew Mexico Energy Minerals and Natural Resources Dept. (EMNRD) As well as DFA Verify the savings Selection of ESCO Finance The Project Audit the Facility Implement ECM’s

16. Step 1-Selection of ESCO RFP EMNRD Agency • ENMRD will provide Assistance • Sample EPC Documents • Agency will compile RFP Data • Building Data • Utility Data

17. Step 1-Selection of ESCO RFP EMNRD Agency ESCO Companies • Agency will provide RFP to ESCO’s • Agency Provides Walk thru for ESCO’s

18. Step 1-Selection of ESCO EMNRD Agency Selected ESCO • Agency Selects the ESCO • ENMRD Approves ESCO

19. Step 2-Audit the Facility ESCO IGA • The ESCO Develops the Investment Grade Audit

20. Step 2-Audit the Facility Agency IGA • The ESCO Submits the IGA for Approval • ENMRD Reviews The IGA • DFA Also Reviews the IGA

21. Step 2-Audit the Facility EMNRD Agency City, County, State, High Ed. Path A Path B Schools • EMNRD will Provide a Sample Investment Grade Audit (IGA) Document

22. Step 2-Audit the Facility Continued Path A – Approvals for Schools Once the Contract has been Approved by PED, the Legislative Finance Committee will review and Approve the Contract . The Annual Performance Contract amount will be removed from the School’s SEG (School Equalization Guarantee) Account and placed into a “Public School Utility Conservation Fund” to fund the Performance Contract with. SEG FUND Once this Special Fund has been set up and funded, the Implementation can begin. Section 6-23-7 State Statutes NMSA 1978 Public School Utility Conservation Fund Pays for the Performance Contract

23. Step 2-Audit the Facility Continued Path B- Approvals for Municipalities , Counties and State Agencies & Higher Ed. Once the Governing Council or Commission has approved the contract a Special Fund is set up for the sole purpose of paying the Performance Contract Costs. The Contract is presented for approvals of the Governing Council, Commission or agency head. Once this Special Fund has been set up and funded, the Implementation can begin. Special Fund Appropriated from Operating Budget to Pay for the Performance Contract.

24. Step3- Implement the Project The Project with All Energy Conservation Measures (ECMs) is ready to start Implementation The ESCO is responsible for Managing the Project. The Project does not have change orders unless there are changes that the customer requires. The Performance Period for the Contracts begins at customer approval and sign off of project completion.

25. Step 4- Verify the savings The Project must have a Measurement and Verification (M&V) program to track and verify the savings.

26. For Information on Performance Contracting, Go to: HTTP://www.CleanEnergyNM.org Select Link: Clean Energy Performance Financing

27. Energy Performance Contracting Q & A Brian Johnson / Boone Birdsell

28. Energy Performance Contracting Next Steps Brian Johnson