RCC Comprehensive Energy Modernization Action Plan Supported with NORESCO s Investment Grade Audit Preliminary Recomm

1. 1  RCC Comprehensive Energy Modernization Action PlanSupported with NORESCO�s Investment Grade AuditPreliminary Recommendations Ralph Perez Director of Facilities Operations and Maintenance January 5, 2006

2. 2 RCC Comprehensive Energy ModernizationAction Plan Presentation Contents CCC/IOU Partnership Program The need for energy modernization projects Review of project progress/evolution Initial project recommendations Questions/Discussion/Input Next actions and timeline

3. 3 What is the CCC-IOU EE Partnership? A unique energy efficiency program; administered by the four IOU�s. The program is intended to: Improve CCC facilities and lower operating costs at campuses statewide Allow the CCC to leverage the local bond dollars and statewide project funding Consist of several components focused around efficiency and education: New construction and retrofit projects Retro-commissioning projects Training and education projects Emerging Technologies Through this incentive program, the utilities will offer administrative and technical support. Utilities will also be responsible for verifying the savings and the project at completion. This program is funded by the California rate payer and administered by the four public IOU�s under the auspices of the California Public Utilities Commission.

4. 4  Overview of the CCC Program (Continued) What is the timeline? The program will run from January 2006 to December 2008 The project applications for the Community Colleges will begin on October 15th and run through November 15th of 2005 Projects will go through a two form process: Form One (Initial) and Form Two (Detailed Project Proposal) The Project Forms will be applicable to all Retrofit, New Construction, Retro-Commissioning and Emerging Technologies Projects. Project Implementation will begin January 1, 2006

5. 5 The need for energy modernization Aging equipment and systems that waste energy Air quality requirements that must be met Rising maintenance costs on chillers, boilers Control of escalating electric and natural gas costs Demonstrate environmental leadership to the community Consistent with master plan and included as a bond project

6. 6  Review of Project Progress/Evolution Late 2002: RCC explores energy modernization and renewable energy supply options February 2003: RCC interviews several firms and selects NORESCO to perform a Preliminary Energy Conservation Audit April 2003: Preliminary Assessment completed/presented December 2003: RCC Facility Improvement Plan incorporates energy efficiency and supports alternative energy options Ongoing: Implementation of the Facility Improvement Plan Present: NORESCO under contract to prepare an Investment Grade Audit

7. 7  Audit Approach/Objectives Performed by NORESCO Initial walk-through inspection Objectives and goals of the client were identified Review (available) plans and specifications Interview building operating personnel Perform analysis of utility cost and use Identify potential energy modernization/conservation measures Estimate costs, savings and benefits of the identified measures

8. 8 RCC Comprehensive Energy ModernizationAction Plan Preliminary Recommendations Riverside Campus Phase 1 � Parking Lot Lighting Base case: Built years ago to older code, inadequate light levels, buried conduit rusted out, maintenance and security issue Proposed: Lots A-D, New Parking lot lighting including poles, 100% conduit replacement, trenching, repaving of asphalt and cement. Riverside Campus Cost $497,597 No Rebate $ 0 Net Cost $497,597 Energy savings $0 (Increased light levels) Maintenance Savings $TBD Benefits: Improved light levels, DSA approved design meeting current lighting safety and seismic standards. Dramatic maintenance cost savings.

9. 9 RCC Comprehensive Energy ModernizationAction Plan Preliminary Recommendations Riverside Campus � EMS Additions/Upgrades Base case: Invensys EMS, varying levels of control (MLK, new bldg, good control vs: inadequate control at older buildings. Proposed: Migrate GCMs to UNCs, install enterprise server to communicate with the UNCs on Ethernet + Riverside campus M&O. Upgrades to individual buildings selected up to the budget maximum. Riverside Campus Cost $795,500 Rebate $0 (Over RPU maximum) Net Cost $795,500 Annual Savings $ 79,912 ( Gas + Electric Estimate) Annual kWH saved 621,678 (20% Annual Savings) Annual Therms 22,180 (22% Annual Savings) Payback (Years) 9.95 Under development: Prioritize buildings that would receive EMS upgrade. Benefits: Reduced energy consumption, improved comfort, lower maintenance and equipment costs, improved classroom control and exterior lighting control for safety and security

10. 10 RCC Comprehensive Energy ModernizationAction Plan Preliminary Recommendations Riverside Campus � Chiller Replacement Base case: B&E chiller plant has chillers that are over 15 years old and have increasing repair and operating expenses. Proposed: Install new high efficiency duel compressor chiller and cooling towers Riverside Campus Cost $ 304,984 Rebate $ 0 (Over RPU maximum) Net Cost $ 304,984 Annual Savings $ 15,175 Annual kWH Saved 151,750 (38% Annual savings) Payback (Years) 20 Benefits: Reduced energy consumption, lower maintenance and equipment costs, better reliability, improved comfort.

11. 11 RCC Comprehensive Energy ModernizationAction Plan Preliminary Recommendations Riverside Campus � Lighting and controls Base case: Combination of T-8 and T-12 lamps, lighting sensors with older technology, some sensors disconnected Proposed: Conversion of T-12 and T-8 to 28 Watt T-8 w/reflector, lower wattage HPS and MH lamps, occupancy sensors at selected buildings Riverside Campus Cost $697,500 Rebate $25,000 (RPU Program cap of $25,000) Net Cost $672,500 Annual Savings $81,780 Annual kWH Saved 817,804 30% Annual savings Payback (Years) 8.22 Benefits: Reduced energy consumption, improved light levels, reduced heat (A/C savings) lower maintenance and equipment costs (new lamps/ballasts). Standardized inventory is a benefit

12. 12 RCC Comprehensive Energy ModernizationAction Plan Preliminary Recommendations Norco and Moreno Valley � Lighting and controls Base case: Combination of T-8 and T-12 lamps, lighting sensors with older technology, some sensors disconnected Proposed: Conversion of T-12 and T-8 to 28 Watt T-8 w/reflector, lower wattage HPS and MH lamps, occupancy sensors Norco Moreno Valley Cost $251,418 $263,722 Rebate $51,143 $49,561 (CCC Form 2) Net Cost $200,275 $213,894 Annual Savings $41,619 $45,256 Annual kWH Saved 340,953 330,408 26% Annual Savings Payback (Years) 4.08 4.07 Benefits: Reduced energy consumption, improved light levels, reduced heat (A/C savings) lower maintenance and equipment costs (new lamps/ballasts). Standardized inventory is a benefit

13. 13 RCC Comprehensive Energy ModernizationAction Plan Preliminary Recommendations Norco and Moreno Valley � EMS Additions/Upgrades Base case: Invensys EMS, varying levels of control (Phase 1 vs Phase 2) some buildings/equipment not on system. Proposed: Add zone control to Phase 1 at both sites, add 8 Bldgs at MV, add 4 bldgs at Norco, add exterior lighting control at both campuses. Migrate GCMs to UNCs, install enterprise server to communicate with the UNCs on Ethernet + Riverside. Norco Moreno Valley Cost $429,898 $493,485 Rebate $37,147 $22,391 (CCC Form 2 Electric) Rebate $6,049 $6,231 (CCC Form 2 Gas) Net Cost $386,702 $464,863 Annual Savings $26,398 $20,371 Annual kWH saved 160,906 106,820 10% Annual Savings Annual Therms 7,522 6,231 47% Annual Savings Payback (Years) 14.64 22.81 Benefits: Reduced energy consumption, improved comfort, lower maintenance and equipment costs, improved classroom control and exterior lighting control for safety and security

14. 14 RCC Comprehensive Energy ModernizationAction Plan Preliminary Recommendations Norco and Moreno Valley � Chilled water system Base case: Constant flow chilled/hot water loops and standard efficiency pump motors Proposed: High efficiency pump motors, variable frequency drives, replace fan coil valves at Norco: 63 valves, Moreno Valley: 58 valves. Norco Moreno Valley Cost $111,293 $102,248 Rebate $23,760 $12,532 (CCC Form 2) Net Cost $87,533 $89,716 Annual Savings $12,085 $7,152 Annual kWH Savings 99,002 52,215 71% Annual Savings Payback (Years) 7.24 12.54 Benefits: Reduced energy consumption, lower maintenance and equipment costs, improved classroom comfort.

15. 15 RCC Comprehensive Energy ModernizationAction Plan Preliminary Recommendations Norco and Moreno Valley � Chiller Replacement Base case: Phase 1 chillers are 15 years old and have increasing repair and operating expenses. Proposed: (4) New 117 ton York air cooled screw compressors w/VSD. Norco F-1 (2) chillers, Moreno Valley 5-mech (2) chillers. Norco Moreno Valley Cost $323,863 $323,863 Rebate $73,090 $73,090 (CCC Form 2) Net Cost $250,364 $250,364 Annual Savings $27,881 $31,285 Annual kWH Saved 228,406 228,406 42% Annual Savings Payback (Years) 8.97 8.0 Benefits: Reduced energy consumption, lower maintenance and equipment costs, better reliability, improved comfort.

16. 16 RCC Comprehensive Energy ModernizationAction Plan Preliminary Recommendations Norco, Moreno Valley, Riverside � Boiler Replacement Base case: Phase 1 boilers are 15 years old and have increasing repair and operating expenses. Proposed: Replace (4) boilers. At Norco (F1) and Moreno Valley (5-mech) with 84% efficient hot water boilers. Replace (8) boilers at the Riverside campus. Norco Moreno Valley Riverside Cost $95,616 $96,008 $ 393,920 Rebate (CCC Form 2) $ 810 $ 700 $ 15,989 Net Cost $94,806 $95,308 $377,931 Annual Savings $727 $645 $14,390 (20% Annual Savings) Payback (Years) 130 147 26 Benefits: Reduced energy consumption, lower maintenance and equipment costs, improved reliability, improved classroom comfort and lower emissions for SCAQMD compliance.

17. 17 RCC Comprehensive Energy ModernizationAction Plan Preliminary Recommendations Norco, Moreno Valley and Riverside � Vending Machine Controls Base case: The campuses have a combination of campus owned and supplier owned refrigerated vending machines. Currently none of the machines have energy conservation controls. Proposed: Installation of vending miser controls that cycle the vending machine to reduce energy consumption, (10) at each campus. Norco Moreno Valley Riverside Cost $5,986 $5,986 $5,986 Rebate $4,574 $4796 $0 Net Cost $1412 $1,190 $5,986 Annual Savings $2,326 $2,737 $1,998 Annual kWH Savings 19,058 19,984 19,984 Payback (Years) .61 .43 3.0 Benefits: Reduced energy consumption without effecting the quality of the vending product or dispensing temperature.

18. 18 RCC Comprehensive Energy ModernizationAction Plan Preliminary Recommendations Norco and Moreno Valley � Photovoltaic system Base case: Neither campus has renewable energy supply sources currently in place. Investigated: Norco - A ground mounted 30kW system and Moreno Valley a 30kW ground mounted system Norco Moreno Valley Cost $527,174 $527,174 Rebate (CEC) $ 84,000 $ 84,000 Net Cost $443,174 $443,174 Annual Savings $ 6,323 $ 7,095 Annual KWH savings 51,800 51,800 (2.5% Annual Savings) Payback (Years) 70 62 Riverside campus � Costs and savings under development Investigation results: Investigation has shown that the current technology and costs make a viable project challenging. If future rebate levels increase and technology improves, the viability may become favorable.

19. 19  What other projects did NORESCO investigate? Cogeneration: Analysis showed marginal financial results for the Norco and Moreno Valley campuses; waste heat could not be consistently used. The Riverside campus is under review. High current prices for natural gas pose a significant challenge. Water conservation: Most interior plumbing fixtures are currently efficient; some opportunity exists for irrigation water management Re-Cycling: An opportunity exists if a third party contractor can be located that will assume 100% responsibility without cost Thermal Energy Storage: The CCC/IOU Program does not offer targeted incentives but the option may become more viable in the future

20. 20  Next Actions and Timeline CCC/IOU Partnership Form 1 submitted 11/22/05 CCC/IOU Partnership Form 2 estimated release Dec 19 Complete the review and selection of projects with RCC Verify the various funding sources: rebates, bonds, loans NORESCO completes the Investment Grade Audit within 30 days Present support/endorsement from Strategic Planning Committee Seek Board of Trustees approval to proceed with NORESCO under a design/build fixed priced, guaranteed maximum contract NORESCO provides an Energy Services Agreement RCC action/approvals to proceed to implementation

21. 21 As of December 19, 2005From Fred Harris Assistant Vice Chancellor of College Finance and Facilities Planning To continue with the process RCCD will need to submit the following documents: 1. Complete form 2. 2. Provide supporting documentation and calculations. 3. Provide commitment in writing of campuses. Form 2 and supporting documentation will be accepted until 5 pm Friday February 3, 2006. Newly revised extended date to February 17, 2006

22. 22 Partnership Program Incentives Partnership program incentives are based on annual savings and are more lucrative then traditional utility programs. Incentives cannot exceed 80% of the energy efficiency projects. .15 cents per KWH for lighting. .24 cents per KWH for motors, drives and package units. .32 cents per KWH on central plants or major energy efficient infrastructure improvements. $1 per therm on gas measures.