**Alternative Financing at TJNAF**

**[Types of Financing and Total Estimated Value]{.underline}**

-   Buildings/housing on land owned by the Commonwealth of Virginia or
    SURA both non-revenue and revenue generating

-   Energy savings projects on DOE owned facilities

-   Consideration of new buildings on land currently owned by DOE

-   Value of **alternatively financed infrastructure in place** is
    approx. **\$34,200,000**[^1]

-   Value of **alternative financing being considered** is approx.
    **\$16,200,000**

**[Site Overview]{.underline}**

The Jefferson Lab site is located in Newport News, Virginia. The
operating contractor is the Southeastern University Research Association
(SURA). Facilities include the accelerator complex serving three
experimental halls, the Free-Electron Laser Facility (FEL), a central
office building (CEBAF Center), two major laboratory buildings, and
various other support structures. The accelerator enclosure is a
7/8-mile racetrack-shaped tunnel, 25 feet underground. The experimental
area consists of three large domed concrete halls with floors about 36
feet below grade, and domes extending up to 45 feet above grade. The FEL
generates high power infrared light using the accelerator technology.

+------------------+-------+---+-------+----------------------+----------+
| Land Ownership   |       |   |       | Buildings (square    |          |
| (acres):         |       |   |       | ft.):                |          |
+------------------+-------+---+-------+----------------------+----------+
| -   DOE          | 162   |   |       | -   DOE Structures   | 581,217  |
+------------------+-------+---+-------+----------------------+----------+
| -   SURA         | 44    |   |       | -   DOE Modular      | 64,538   |
+------------------+-------+---+-------+----------------------+----------+
| -   Virginia     | 8     |   |       | -   Virginia         | 37,937   |
|                  |       |   |       |     (leased)         |          |
+------------------+-------+---+-------+----------------------+----------+
|                  | 214   |   |       | -   ARC[^2] (leased) | 42,492   |
+------------------+-------+---+-------+----------------------+----------+
|                  |       |   |       | -   Leased off Site  | 11,736   |
+------------------+-------+---+-------+----------------------+----------+
|                  |       |   |       |                      | 737,920  |
+------------------+-------+---+-------+----------------------+----------+
| DOE Building     |       |   |       |                      |          |
| (only)           |       |   |       |                      |          |
| Condition[^3] (  |       |   |       |                      |          |
| % ):             |       |   |       |                      |          |
+------------------+-------+---+-------+----------------------+----------+
| -   Excellent    | 35.8  |   |       |                      |          |
+------------------+-------+---+-------+----------------------+----------+
| -   Good         | 15.8  |   |       |                      |          |
+------------------+-------+---+-------+----------------------+----------+
| -   Adequate     | 21.7  |   |       |                      |          |
+------------------+-------+---+-------+----------------------+----------+
| -   Fair         | 26.7  |   |       |                      |          |
+------------------+-------+---+-------+----------------------+----------+
| -   Poor         | 0     |   |       |                      |          |
+------------------+-------+---+-------+----------------------+----------+
| -   Fail         | 0     |   |       |                      |          |
+------------------+-------+---+-------+----------------------+----------+

**[Description of Alternative Financing Employed]{.underline}**

**Title:** CEBAF Site Development

**Size:** 162 acres of land

**Provider/funder:** City of Newport News

**Description:** The City of Newport News donated 162 acres to DOE (the
entire site) for the Continuous Electron Beam Accelerator Facility
(CEBAF).

**Expected savings/benefits:** Provides land for Jefferson Lab
operations and continued development.

**Status:** Maintained by DOE

**Title:** Renovation of Main Laboratory Entrance

**TEC:** \~ \$200,000

**Provider/funder:** City of Newport News

**Description:** The City of Newport News rerouted the Lab's main
entrance to provide traffic light controlled access to the laboratory.
The City also significantly enhanced the entrance by provided the JLab
stone entrance sign and additional landscaping.

**Expected savings/benefits:** Significantly improved safety and
accessibility by providing traffic light controlled access to the lab.

**Status:** Maintained by DOE

**Title:** Commonwealth of Virginia Annual Grant

**Value:** \~\$2,000,000/year

**Provider/funder:** Commonwealth of Virginia

**Description:** The Commonwealth of Virginia has typically provided
\$700,000/year plus salaries for 13 staff working at JLab. The funding
has generally been used to support JLab developmental activities.

**Expected savings/benefits:** Provides funding to support continued
JLab development and staff to reduce cost of operations.

**Status:** State budget constraints are making it difficult to sustain
this support.

**Title:** Virginia Associated Research Campus (VARC) Building and
Forestry Building

**Size:** 37,937 gross sq. ft. (RPV \$7,178,075)

**Provider/funder:** Commonwealth of Virginia through lease agreement

**Description:** This building was on site when DOE started the
Continuous Electron Beam Accelerator Facility (CEBAF) project and was
made available as JLab office space on a long-term lease from Virginia
for \$1/yr. Jefferson Lab pays for maintenance of the building.

**Expected savings/benefits:** Provides office space adjacent to
Jefferson Lab with no initial investment and minimal annual cost.

**Status:** Air conditioning improvements using BPA financing (listed
below) in process

**Title:** Jefferson Lab Residence Facility

**TEC:** \$1,300,000

**Provider/funder:** SURA through contractual agreement (property and
construction funds were contributed by the City of Newport News,
Commonwealth of Virginia, and SURA)

**Description:** This facility is owned by SURA on SURA property
adjacent to the site. It provides reasonably priced accommodations for
researchers and other visitors to stay within walking distance of the
JLab facilities.

**Expected savings/benefits:** No cost to DOE; revenue generating for
SURA

**Status:** SURA operates and maintains this facility

**Title:** Free Electron Laser Facility (FEL)

**TEC:** \$3,600,000

**Provider/funder:** Commonwealth of Virginia grant

**Description:** Construction of a 27,673 sq. ft. research facility for
the FEL with six experimental labs.

**Expected savings/benefits:** Provided the building to house a new
program built with industrial partners.

**Status:** Construction completed and building occupied in July 1997.

**Title:** Applied Research Center

**TEC:** \$18,000,000

**Provider/funder:** Economic Development Authority, City of Newport
News through lease agreement. Commonwealth of Virginia land was made
available to the City through a 99-year lease.

**Description:** Jefferson Lab leases 43,322 sq. ft. of the total 92,718
sq. ft. of rentable space. Four universities and commercial technology
based companies occupy the remainder of the facility. Jefferson Lab
Plant Engineering provides reimbursed building maintenance and services.

**Expected savings/benefits:** Low cost alternative to providing office
space adjacent to Jefferson Lab in a relatively short timeframe with
little initial investment. Space is leased at "below market" rate by
Jefferson Lab. Jefferson Lab benefits from access to several of the
university leased laboratories that are outfitted and maintained by the
state universities.

**Status:** Construction completed and Jefferson Lab occupied space in
September 1998.

**Title:** Central Chiller Utility

**TEC:** \$2,625,000

**Provider/funder:** Bonneville Power Administration (BPA) through GSA
task order agreement

**Description:** Creates a regional central chiller plant to serve the
Test Lab, Experimental Equipment Laboratory, North and South LINACs, and
ten Service Buildings. It replaces 35 year old chiller equipment and
inefficient roof top units serving the service buildings.

**Expected savings/benefits:** Replacement of capital equipment that is
beyond its useful life with a more efficient system -- Payback 24.9 yrs

**Status:** Construction in process with expected completion in
September 2003

**Title:** VARC Air Conditioning Improvements (Building 28)

**TEC:** \$743,000

**Provider/funder:** Bonneville Power Administration (BPA) through GSA
task order agreement

**Description:** The VARC building was constructed in 1965 with a dual
deck air conditioning system. Although dual deck systems are capable of
very accurate temperature and humidity control, they are inherently
energy intensive. Moreover, the equipment is old and obsolete. This
project replaces the chiller and direct expansion unit, boilers,
selected air handlers and terminal equipment, and controls systems with
a single chiller, hot water generator, new air handlers and variable air
volume boxes with corresponding digital type controls.

**Expected savings/benefits:** Replacement of capital equipment that is
beyond its useful life with a more efficient system - Payback 21.3 yrs

**Status:** Construction in process with expected completion in March
2003

**Title:** CEBAF Center Controls (Building 12)

**TEC:** \$180,000

**Provider/funder:** Bonneville Power Administration (BPA) through GSA
task order agreement

**Description:** The CEBAF Center uses roof top package units that are
controlled by standard pneumatics. This control system does not provide
a practical method of scheduling the building cooling system. A building
energy management and control system is being installed that will
monitor and control the building through an operator interface terminal.
The proposed system will allow for numerous conservation strategies to
be employed as well as critical alarm notification.

**Expected savings/benefits:** Payback -- 11.8 yrs

**Status:** Construction in process with expected completion in April
2003

**Title:** Various Building Lighting Retrofit Projects

**TEC:** \$375,000

**Provider/funder:** Bonneville Power Administration (BPA) through GSA
task order agreement

**Description:** Lighting in at least ten buildings is being modernized
to more efficient fixtures and lighting levels brought into consonance
with current standards. Use of occupancy sensors and time clocks are
being installed where feasible.

**Expected savings/benefits:** Payback -- 4.2 yrs

**Status:** Construction in process with expected completion in July
2003

**[Future Alternative Financing being Considered]{.underline}**

# **Title:** Technical Support Building

**TEC:** \$3,500,000

**Provider/funder:** TBD

**Description:** Construct a 33,000 sq. ft. shop and office building to
house various groups supporting ongoing CEBAF operations. The building
will provide office, lab and shop space for cryogenics, installation
support, high power electrical engineering and vacuum. Technical and
shop space approx. 19,000 sq. ft. and office space approx. 14,000 sq.
ft.

**Expected savings/benefits:** Allows elimination of 9,000 sq. ft. of
existing aging trailers, alleviation of overcrowding in tech. space, and
relocation of inadequate workshop space currently in accelerator service
buildings.

**Status:** Finalizing concept and exploring financial sources

**Title:** Storage Building Phase 1/Relocation of Shipping & Receiving

**TEC:** \$2,500,000

**Provider/funder:** TBD

**Description:** Construct a 21,000 sq. ft. of warehouse/shipping &
receiving building to provide storage of records presently stored on the
mezzanine of EEL. It would also replace 30 (about half) of the existing
shipping containers located around the site. Shipping and Receiving
would be relocated from the center of campus to the site perimeter
thereby improving site security.

**Expected savings/benefits:** Allows elimination of 10,000 sq. ft. of
shipping containers used for storage and conversion of the existing
shipping & receiving area to technical labs.

**Status:** Finalizing concept and exploring financial sources

**Title:** Storage Building Phase 2

**TEC:** \$800,000

**Provider/funder:** TBD

**Description:** Construct an 8,000 sq. ft. addition to the
Storage/Shipping & Receiving Building to replace off site leased storage
and the remaining shipping containers used for storage.

**Expected savings/benefits:** Allows elimination of 8,000 sq. ft. of
aging shipping containers used for storage and reduces time to retrieve
stored items from off site.

Status: Exploring funding alternatives

**Title:** FEL Addition

**TEC:** \$5,800,000

**Provider/funder:** TBD

**Description:** Construct a 22,600 sq. ft. addition to the Free
Electron Laser (FEL) facility to provide additional research space,
technical labs, and office space.

**Expected savings/benefits:** Will provide space for Helios equipment
(in storage) and lithographic equipment.

**Status:** Concept has been completed. Exploring funding alternatives

**Title:** Education Center

**TEC:** \$3,600,000

**Provider/funder:** Commonwealth of Virginia (possibly)

**Description:** Construction of a 20,000 sq. ft. building with
classrooms, displays, and offices for our community education program
and visitor center near the front entrance to the lab.

**Expected savings/benefits:** Will provide space for expansion of the
highly successful education outreach programs at JLab and improved
accessibility for visitors.

**Status:** Concept development in process.

**[Future Alternative Financing Considerations]{.underline}**

-   [Tighter Budgets:]{.underline} Past successes at JLab have been in
    large part due to the extremely supportive relationship JLab has
    with the City of Newport News and Commonwealth of Virginia. With
    tighter budgets continued financial support at previous levels is
    not possible.

-   [Longer Paybacks:]{.underline} Jlab has used alternative financing
    extensively to improve efficiency of operations. It will be
    increasingly difficult to achieve a reasonable payback on future
    alternative financing ventures because most of the opportunities
    with a reasonable payback are in process.

-   [Increased Costs:]{.underline} Alternative financing options that
    include paying interest and overhead on the cost of the new
    facilities places a heavy burden on future operating costs. This is
    particularly true for expansion projects that do not have associated
    energy or maintenance savings from the removal of old buildings
    and/or inefficient systems.

[^1]: This does not include 162 acres of donated land or the VA annual
    grant

[^2]: Applied Research Center (ARC) is a 121,000 square ft. building
    owned by the City of Newport News built on Virginia land

[^3]: Use and condition categorization in FIMS excluding Modulars and
    Other Structures and Facilities