Proposition 39: Year 1 Successes and Year 2 Planning

1. CA Higher Education Sustainability Conference San Diego State University June 17, 2014 Proposition 39: Year 1 Successes and Year 2 Planning Karen Powell, Director, Facilities Maintenance and Operations San Mateo Community College District Tony Ichsan, Dean, Facilities Planning and Operations Santa Rosa Junior College District Bob Bradshaw, Construction Manager, Facilities El Camino College Linh-Chi Hua, Program Advisor, Institutional Partnerships San Diego Gas & Electric Company

2. Proposition 39 Adopted by the voters in November 2012 to close corporate tax loopholes and will provide roughly $550 million annually to K-12 and CCC’s for Energy Projects for five years CCC’s will allocate $31.6 million for FY 2014-2015 distributed on an FTES basis to all CCC Districts for energy efficiency and renewable generation projects Funding approved annually by legislature with state budget

3. Proposition 39 CCC Chancellors Office will work with Districts and CCC/IOU Partnership to identify and fund projects Implementation will parallel CCC/IOU Partnership process to combine Prop 39 funds and leverage utility incentives. IOUs to provide technical assistance to identify and develop projects Chancellor’s Office will also work with POUs to coordinate processes, services, and any incentives A Program Consultant has been contracted through CCCCO to provide program administration and technical assistance

4. How Have We Done So Far?: Year 1 Year 1 Project Approvals to Date (Oct 2013 – June 2014) $39.7 Million in Prop 39 Funding Approved All 72 Districts participating $6.8 Million in Utility Incentives 313 Projects Approved with resulting ANNUAL energy cost savings of $4.6 million to Districts!

5. Impact of Proposition 39

6. Year 2 Budget and Pipeline • FY 14-15 Proposed Budget – $31.6M • 20% less funding • Year 2 Projects: Over 200 already submitted • 25+ Solar Projects • 68/72 Districts have projects identified • $42M est. Construction Costs

7. Implementing Prop 39 Projects on a Short Timeline Karen Powell Director, Facilities Maintenance and Operations, San Mateo Community College District

8. Overview –Year One Projects Basic Project Information Project Timeline Process Steps Talking Solar Challenges and Victories Q & A

9. Year One Prop 39 Projects • Project 1 Leveraging $500,000 P39 • ~1MW Solar Installation • Over 4100 Highly Efficient, High Quality Panels • 41 String level power inverters • Poured-in-place concrete drilled piers • High tensile, galvanized steel infrastructure • 20 Year O&M Package • 20 year Performance Guarantee • Project 2 Leveraging $211,000 P39 • Parking Lot and Street Light LED’s • 120 Fixtures at Cañada College • 80 Fixtures at College of San Mateo • Lighting Controls (dimming, safety, and typical scheduling) • Building Management System Integration (See Challenges*)

10. Process Steps Combined RFQ/P to appropriate selection of vendors Leverage Available CCC -IOU Resources Leverage Available Technical Expertise

11. Talking Solar

12. Victories Challenges

13. Year Two & Three Prop 39 Projects Year Two Parking Lot, Roadway, Pedestrian Pathway lighting retrofit, Skyline College Pedestrian Pathway lighting retrofit, Cañada College, College of San Mateo Year Three Interior Lighting retrofit, Cañada College, College of San Mateo, Skyline College

14. CHESC: CCC/IOU-Prop 39 El Camino College Bob Bradshaw, Construction Manager El Camino College

15. E1-1

16. E2-1

17. E2-2

18. Master Plan

19. El Camino’s Prop 39 Strategies • Bidding avenues • Piggy back on Purchase agreements to expedite the first year process for completion. • Considering 4217 for HVAC replacement • Custom manufactured unit • Selection of an experienced manufacturer/ installer will be critical to the installation timeline.     • Looking ahead to Prop 39 Years 3 and 4 allocations: • More exterior lighting, poles and wall packs. • New construction that are not remodels but may be an opportune time for lighting retrofits and HVAC work.  

20. Key Issue: Annual Expenditures Not sooner than one year but no later than 15 months after completion of its first eligible project, the District shall submit an Annual Expenditure Report to the CO containing the following information (to the extent practical): • The total final gross project cost • The estimated amount of energy saved, accompanied by specified energy consumption and utility bill cost data • The name plate rating of new clean energy generation installed. • The entity’s energy intensity (energy use per sf) before and after project completion as determined from an energy rating or benchmark system. • Actual Job Creation

21. Job Tracking Forms Monthly and Project Completion Reporting Direct FTE and Trainees created from Prop 39 implementation District shall require that any project implementation entity – architects, engineers, and implementation contractors – fill out these reports and submit to the Districts as a requirement of contract

22. Key Issue: State Compliance District Prop 39 expenditures will be subject to an annual state compliance test as outlined in the Contract District Audit Manual and pursuant to Education Code 84040 and Public Resources Code 26240(g). The Audit Test Procedures are as follows: • Test Prop 39 funds to verify that they are tracked and reported separately. They are not to be comingled with other state or local funds. • Review Final Project Verification Report to ensure completion and that it has appropriate signatures. • Trace items on approved CCC Prop 39 Project Funding application and Project Verification Report to supporting documents. (Invoices, purchase orders, etc) • Verify compliance with competitive bid process and other PCC requirements

23. “Proposition 39 In Action” Tony Ichsan, ARM, CEFP, LEED™ AP Dean, Facilities Planning and Operations Sonoma County Junior College District ~ Santa Rosa Junior College

24. “Western Association of Schools and Colleges” Accrediting Commission for Community and Junior Colleges

25. Accrediting Commission for Community & Junior Colleges (ACCJC) Section III, B – Physical Resources: Physical resources, which include facilities, equipment, land, and other assets, support student learning programs and services and improve institutional effectiveness. Physical resource planning is integrated with institutional planning. Section III, B – 2: To assure the feasibility and effectiveness of physical resources in supporting institutional programs and services, the institution plans and evaluates its facilities and equipment on a regular basis, taking utilization and other relevant data into account.

26. Accrediting Commission for Community & Junior Colleges (ACCJC) Section III, B – 2a: Long-range capital plans support institutional improvement goals and reflect projections of the total cost of ownership of new facilities and equipment.

27. Total Cost of Ownership (TCO) Stage One – Land, Design, Construction, (5-15%) Occupancy Stage Two – Operation, Maintenance (65-80%) Renewal/Modernization Stage Three – Decommission, Demolition (1-5%)

28. Facility Life Cycle Stages (50 Year, and longer…) Stage One – Land, Design, Construction, (5-15%) Occupancy Stage Two – Operation, Maintenance (65-80%) Renewal/Modernization Stage Three – Decommission, Demolition (1-5%)

29. Facility Life Cycle Stages (50 Year, and longer…) Stage One – Land, Design, Construction, (5-15%) Occupancy Stage Two – Operation, Maintenance (65-80%) Renewal/Modernization Stage Three – Decommission, Demolition (1-5%)

30. Facility Life Cycle Stages ($20M Construction) Stage One – Land, Design, Construction, (5-15%) Occupancy Stage Two – Operation, Maintenance (65-80%) Renewal/Modernization Stage Three – Decommission, Demolition (1-5%)

31. Facility Life Cycle Stages (Example: $136M TCO) Stage One – Land, Design, Construction, ($20M) Occupancy Stage Two – Operation, Maintenance ($109M) Renewal/Modernization Stage Three – Decommission, Demolition ($7M)

32. Effect of adequate and timely maintenance and repairs on the service life of a building. Source: NRC, 1993

33. $109,000,000…

34. $109,000,000…REALLY??!??

35. $109,000,000…REALLY??!??...Wow…

36. $109,000,000…REALLY??!??...Wow…Don’t Panic!

37. $109,000,000…REALLY??!??...Wow… Don’t Panic! We’re Here to Help…

38. Common required projects (ROI 5-10 years – Estimates Only):

39. Common required projects (ROI 5-10 years – Estimates Only): • Install Occupancy Sensors • $5,000

40. Common required projects (ROI 5-10 years – Estimates Only): • Install Occupancy Sensors • $5,000 • Replace Standard Motors with High Efficiency Motors • $25,000

41. Common required projects (ROI 5-10 years – Estimates Only): • Install Occupancy Sensors • $5,000 • Replace Standard Motors with High Efficiency Motors • $25,000 • Replace HPS with LEDs • $25,000

42. Common required projects (ROI 5-10 years – Estimates Only): • Install Occupancy Sensors • $5,000 • Replace Standard Motors with High Efficiency Motors • $25,000 • Replace HPS with LEDs • $25,000 • Indoor/Outdoor Pool Pump Replacement with VSD • $64,000

43. Total Cost of Ownership Projects(ROI 10-20 years – Estimates Only): • Parking Structure replace lights with (300) LEDs • $150,000

44. Total Cost of Ownership Projects(ROI 10-20 years – Estimates Only): • Parking Structure replace lights with (300) LEDs • $150,000

45. Total Cost of Ownership Projects(ROI 10-20 years – Estimates Only): • Parking Structure replace lights with (300) LEDs • $150,000

46. Total Cost of Ownership Projects(ROI 10-20 years – Estimates Only): • Parking Structure replace lights with (300) LEDs • $150,000 • Replace outdoor pole lights with Bi-Level LEDs • $300,000

47. Total Cost of Ownership Projects(ROI 10-20 years – Estimates Only): • Parking Structure replace lights with (300) LEDs • $150,000 • Replace outdoor pole lights with Bi-Level LEDs • $300,000

48. Total Cost of Ownership Projects(ROI 10-20 years – Estimates Only): • Parking Structure replace lights with (300) LEDs • $150,000 • Replace outdoor pole lights with Bi-Level LEDs • $300,000 • Install VFDs and Economizer on Existing HVAC • $160,000

49. Build-On Partnerships Projects

50. Photovoltaics $1,508,000.00 Build-On Partnerships Projects – Estimates Only