# Presentation: 659369

## LOGICS: Local Governments Implementing Conservation and Sustainability

- Operating Local Governments As Energy Costs Rise

## LOGICS TEAM

- The Environmental Protection Agency
- Delaware Valley Green Building Council
- Delaware Valley Regional Planning       	Commission
- Department of Environmental Protection
- Sustainable Development Fund
- The Environmental Finance Center
- The Pennsylvania Environmental Council
- Penn Future

**Notes:**
Introduce speakers/people in the room, organizations

## WHY LOCAL MUNICIPALITIES?

- Municipalities and townships have the responsibility of fiscal accountability to their taxpayers
- An energy efficient township provides numerous benefits and better service to its constituents
- Most municipalities can expect to save 30% or more on energy operating costs by participating in simple efficiency opportunities

**Notes:**
Shorten bullets to include words on 4.

## WHY LOCAL MUNICIPALITIES? 

- Many overlook the connection between inefficient energy use and cost.
- Efficient energy use is no longer the environmentally responsible choice; it has become the economically responsible choice.
- 9.6 billion square ft, accounts for national Local Government footprint

**Notes:**
PIE CHART HERE

## WHY NOW?

- Electricity
- Retail Rate Caps expiring statewide, PECO expires		12/31/10
- Rate caps have shielded customers from the impacts of rising fuel prices and market-based prices
- Natural Gas
-  NYMEX price/MMBtu 2006: $5.56  2007: $6.53 pre 2000: <$3.00
- Gasoline
- Retail price for regular gasoline up 63 cents/gal over a two years ago
- Other commodities, including coal, have also experienced rising prices

## PROJECTED WHOLESALE PRICES

**Notes:**
The first slide shows this is a sample of the electric wholesale price projections used by one Pennsylvania Utility to determine stranded costs payments at the time of restructuring.
Actual prices have risen faster and higher than was projected when electricity restructuring was initiated.  PJM ascribes 100% of the increase in wholesale prices to increases in fuel costs.  Retail market design, specifically, how default service is offered and bid, may also be impacting rising prices across PJM. Due to rate caps in place across most of Pennsylvania, we have not seen those effects yet.
WE SHOULD RE-DO THIS GRAPHIC

## BENEFITS OF ENERGY MANAGEMENT

- Initial Effort (First two years)
- 5-15% cost savings
- Little or no capital expenditure
- Long-Term Effort
- 25% or higher cost savings
- Requires management commitment
- Annual review
- Monitor efficiencies
- Track saving

**Notes:**
Initial efforts are those things are the easy to do, preventative maintenance type things.
Long term includes upgrades to equipment, lighting change-outs, etc.  

## STEPS TO ENERGY MANAGEMENT

- Official Policy
- A team or designated staffer
- Education of ALL staff
- Review of existing facilities and billing
- Identification, prioritization and implementation of opportunities
- Ensure measurement of implementation
- Use savings to fund next projects

## Official Policy

- Clearly states energy goals
- Can include:
- Purchasing of equipment
- Construction of buildings
- Maintenance of buildings
- Who is responsible
- Fuels purchasing
- Electricity purchasing
- Alternative energy generation

**Notes:**
Policy example from Mont Co MD and others have as hand-out.
Policy = permanency, public commitment

## Team or Staff

- Team Option
- Multi-facility, multi-discipline, multi-department
- Two or three key people
- Could include EAC, other residents or businesses
- Staff Option
- One person responsible for all energy
- Provides consistency
- May be difficult to fund time

**Notes:**
The team gives responsibility to multiple people and allows for people to choose or be placed where their strengths allow.  May provide opportunity to “out source” for ideas and assistance – businesses or residents may be willing to “volunteer” to do any number of basic but necessary tasks.
With staff- it’s not funding the position, either they already work there or you need to increase the budget.  What’s more likely that you’ll assign one person the energy items as an add-on and then they have to juggle their “regular job” with this new assignment.  Thus, funding time.

## Education

- All staff need to know policy
- All staff need to understand how they impact the energy usage
- All staff need to be able to explain that to the taxpayers
- All staff need to be asked for their input on detailed policies, suggestions for upgrades, etc.

## Review of Existing Facilities & Billing

- Often multiple bills for multiple facilities never meet up
- Examination of bills can identify areas for opportunity
- Existing facilities review could include basic audit or engineering audit
- Own staff
- Other resources

**Notes:**
Review of existing facilities and billing
Frequently there is no good tracking of all the different bills for the various buildings so it’s often unknown what is really being spent on energy.

## Opportunities

- Identification
- Through staff interviews/questionnaire
- Through audit mentioned above
- Generate a report
- Prioritization
- Low-cost, done in-house, etc.
- Implementation
- (WE ID SOME RESOURCES HERE)

## Measurement

- Ensures that all know what is done
- Ensures that all know policy is being followed
- Allows for additional future spending based upon successes
- Allows for correction of areas where failure occurs
- Shows taxpayers fiscal responsibility

## Funding the Future

- Good measurement shows proof of value
- Proof of value shows responsibility
- Responsibility builds trust
- Trust then allows for “riskier” efficiencies to be incorporated with their longer paybacks – such as alternative energy generation, newer technology installation, etc.

## Steps to Energy Management

- Create an Official Policy
- Team or Staff
- Identify your Energy Use / Utility Bill Analysis
- Achieving up to 30% Energy Savings
- LED lighting for traffic lights and street lamps
- Building energy assessments and action plans

## Where do you start to lower energy use by 30%?

- Learn how to read your utility bill
-  Microsoft Excel Spreadsheet
- Record monthly utility bills for all meters
- Create charts to provide visual tracking of energy use
- Energy Assessment
- Efficiency of Equipment
- Proper Insulation

## What do you Track?

- CONSUMPTION
- DEMAND
- COST

## Municipal Example

- Visual of local analysis
- Recommended actions

## Comparison Cost in $$ of Incandescent v. L.E.D. per Traffic Signals

- Incandescent L.E.D.Annual Electric FeeAnnual Maintenance FeeAnnualized Capital Cost @ 5%Installation FeeTotal
- Average cost full replacement for 1 intersection (new fixture and lights) =
- Average cost to replace just L.E.D. lights =

## Annual Energy Cost to Townships for Traffic Signal (or full energy budget) v. other operations costs in the Township

-  Create and add (Pie Chart)

## Optimal purchase of L.E.D lights at the least cost

- Purchase SourceCriteria for PurchaseTweaking the SystemBest OptionCOSTARNo – Bid requiredCan negotiate for a lower pricePennsylvania State ContractsEnergy Star Bulk Purchasing

## Model bid specification for L.E. D. light purchase

- _[http://www.stillwater.org/agendas/ccagendas/2007/050707/cc0792.pdf](http://www.stillwater.org/agendas/ccagendas/2007/050707/cc0792.pdf)_
- _[ftp://ftp.dot.state.tx.us/pub/txdot-info/gsd/pdf/to7057.pdf](ftp://ftp.dot.state.tx.us/pub/txdot-info/gsd/pdf/to7057.pdf)__ for model Bid Specs_

## Financing Your Traffic Signal Upgrade to L.E.Ds

- Work into current operating budget
- Low-interest Bank Loan
- Grant Options

## The Economics of Street Light Replacement  (NOT!)

- Changing to greater efficient street lamps in PECO service territory DOES NOT YIELD A COST SAVINGS
- Reduce the number of fixtures in the area, but not to jeopardize safety
- Check on required lighting levels and do not purchase higher capacity
- New York State Energy and Research and Development Agency - _[www.](http://www.nyserda.org/)__[nyserda](http://www.nyserda.org/)__[.org](http://www.nyserda.org/)_
- Outdoor lighting guide

## Building Audit resulting in Operating Efficiency

- Evaluate decisions based on life-cycle  costing –(notes Life-cycle cost analysis (LCCA) is a method for assessing the total cost of facility ownership. It takes into account all costs of acquiring, owning, and disposing of a building or building system. LCCA is especially useful when project alternatives that fulfill the same performance requirements, but differ with respect to initial costs and operating costs, have to be compared in order to select the one that maximizes net savings _[http://](http://www.wbdg.org/design/lcca.php)__[www.wbdg.org/design/lcca.php](http://www.wbdg.org/design/lcca.php)_)
- Register your facilities with ENERGY STAR Portfolio Manager,

## THE 30% BOMA TOP “10” ENERGY DIET

- Check that equipment is functioning as designed.
- Consider your cleaning options (i.e., team cleaning, occupancy sensors, coordination, and day cleaning when the lights are already on).
- Encourage occupants to turn off equipment...during off hours, power everything down.
- Use high efficiency LED exit signs.
- Institute an energy awareness program.
- Install monitor power management software.
- Change incandescent light bulbs to CFL or HID.
- Harvest daylight.
- Evaluate after-hours usage.
- Adjust ventilation.

## Building Audit resulting in Operating Efficiency

- Evaluate decisions based on life-cycle  costing –(notes Life-cycle cost analysis (LCCA) is a method for assessing the total cost of facility ownership. It takes into account all costs of acquiring, owning, and disposing of a building or building system. LCCA is especially useful when project alternatives that fulfill the same performance requirements, but differ with respect to initial costs and operating costs, have to be compared in order to select the one that maximizes net savings _[http://](http://www.wbdg.org/design/lcca.php)__[www.wbdg.org/design/lcca.php](http://www.wbdg.org/design/lcca.php)_)
- Register your facilities with ENERGY STAR Portfolio Manager