CALIFORNIA CLEAN ENERGY JOBS ACT LAUSD PROPOSITION 39 ENERGY EFFICIENCY PROGRAM Presentation 10/30/15 1
PROGRAM OVERVIEW 1. Background General Allocation Amounts Annual Funding Release 2. Project Types 3. Program Schedule 4. Flow Chart & Selection Criteria 5. Contracting Approach 6. Program Timeline & Cost Loading 7. Budget Summary 8. Project Cost Summary By School (Ph. 1 & 2) By Energy Measure (Ph.1 & 2) 9. Post Retrofit Estimates (Ph.1 & 2) 10. Lessons Learned 11. Program Impact 12. College and Career Readiness 2
BACKGROUND - GENERAL Approved by the Voters of California on November 6, 2012. Five (5) year program, starting from Fiscal Year (FY) 2013-14. Purpose is to create jobs through energy efficiency and clean energy projects Allocates grant funds to Local Educational Agencies (LEAs). Depending on tax revenues, up to $550 Million is available annually for allocation to all LEAs. 3
BACKGROUND ALLOCATION AMOUNTS Allocation amounts will be announced by the California Department of Education (CDE) each November. Annual allocations are based on District s prior year data of: Average Daily Attendance (ADA). Number of students eligible for Free and Reduced-Priced Meals (FRPM). The amount of tax revenue collected. LAUSD was allocated $26.2 Million & $22.0 Million for FY 13-14 & FY 14-15, respectively. Assuming a $26.2 Million annual allocation, LAUSD can receive approximately $130 Million over the life of the 5 year program. 4
BACKGROUND ANNUAL FUNDING RELEASE Annual Expenditure Plan is submitted to the California Energy Commission (CEC) for review and approval for funds to be released. Within the Expenditure Plan, funds are requested on a school-by-school basis for Project costs related to the identified Energy Conservation Measures (ECMs). Eligible Projects must meet the Savings to Investment Ratio (SIR) of 1.05. Upon approval, requested funds will be drawn down against the Allocation and released to the District. 5
PROJECT TYPES District focus is on Energy Efficiency and Retro-Commissioning projects that reduce energy use in existing building systems. Lighting HVAC Controls Plumbing Interior fixture - Retrofit or Replacement, w/ Dimmable Ballasts Exterior fixture - Retrofit or Replacement Rewire interior lights for Daylight control and dimming Air Handler & Package Units - Repair, Modify or Replace Pumps, Economizers and VFDs - Repair, Replace or New Adjust temperature set points Revise equipment operating schedules Energy Management Systems - HVAC Chiller control upgrades Occupancy & Daylight sensor Repair, Replace or New Lighting controls interior & exterior lighting Domestic Water Heaters - Repair, Modify or Replace Consider Condensing or Tankless Water Heaters Adjust temperature set points 6
Phased Program Schedule Fiscal Yr. 2013 2014 2015 2016 2017 2018 2019 2020 Ph. 1 FY 13-14 10/13 5/17 22Schools Schools Nov.30, CDE Allocation Ph. 2 FY 14-15 4/14 Nov.30, CDE Allocation 12/17 11 Schools Ph. 3 FY 15-16 3/15 Nov.30, CDE Allocation 12/18 16 Schools Ph. 4 FY 16-17 3/16 Nov.30, CDE Allocation 12/19 Ph. 5 FY 17-18 October 2015 3/17 Nov.30, CDE Allocation 12/20 Typical Tasks & Milestones per Phase 7
Flow Chart & Selection Criteria PRIORITY BASE LIST SCHOOL DISTRIBUTION PER PHASE SCHOOL SELECTION CRITERIA INVESTMENT GRADE AUDIT Reduce Electric & Gas Bills Highest Electric Bill Rank Schools on Highest Electrical Cost School Priority Base List Determine number of schools for Phase based on Allocation amount. Select next School on the list where the previous Phase ended. New School < 5 Yrs. Old? No. Major HVAC, Lighting Or Modernization in Planning, Design or Construction? No. Impacts of Minor On-Going Construction? No. Impacts on Major School Activities / Summer School? No. Recently Installed Solar System? No. Selected School Yes. Yes. Yes. Yes. Yes. Move to next school with highest electric bill. No. Have all Schools been Selected for Phase? Yes. Issue Task Order for Investment Grade Audits 8
CONTRACTING APPROACH Energy Services Companies (ESCOs) Current ESCOs were pre-qualified through an RFP/Best Value process. Task Orders Perform Investment Grade Audits Identify Energy Conservation Measures (ECMs) for District Selection Ensure Projects meet Savings to Investment Ratio of 1.05 Energy Savings Performance Contract Design and Construction of selected ECMs Perform Measure & Verification for California Energy Commission reporting Provide a 2 year Savings Guarantee California Conservation Corps (CCC) & Los Angeles Conservation Corps (LACC) Recognized Proposition 39 Resources Memorandum of Understanding Provide no-cost and low-cost energy audits, respectively Identify ECMs on a Master Plan level for non-selected schools Assist District with Workforce Development and Student Internship 9
PROGRAM TIMELINE 2014 2015 2016 2017 2018 2019 2020 2021 J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M Phase 1 Design C B PC Construction Measure & Verification Phase 2 Select IGA B C Design PC Construction Measure & Verification Phase 3 Select IGA B Design PC Construction Measure & Verification Phase 4 Select IGA B Design PC Construction Measure & Verification Phase 5 Select IGA B Design PC Construction Measure & Verification Affiliated Charter Schools IGA Select = Site Selection B = Board Approval C = Contract Review PC = Pre Construction $140,000,000 PROP. 39 ALLOCATION AND PROGRAM COST LOADING $126,329,427 $120,000,000 $125,929,745 $126,329,427 $100,000,000 $100,329,427 ALLOCATION AMOUNT $96,665,808 $80,000,000 $74,329,427 $60,000,000 $40,000,000 $48,329,427 $64,380,611 ESTIMATED COSTS $20,000,000 $26,280,638 $23,210,820 $0 J F M A M 14 14 14 14 14 J 14 J A S O N D 14 14 14 14 14 14 J F M A M 15 15 15 15 15 $3,371,138 J 15 $2,016,355 J A S O N D 15 15 15 15 15 15 ACTUAL COSTS J F M A M 16 16 16 16 16 J 16 J A S O N D 16 16 16 16 16 16 J F M A M 17 17 17 17 17 J 17 J A S O N D 17 17 17 17 17 17 J F M A M 18 18 18 18 18 Estimated Costs Prop 39 Allocation Actual Costs J 18 J A S O N D 18 18 18 18 18 18 J F M A M 19 19 19 19 19 J 19 J A S O N D 19 19 19 19 19 19 J F M A M 20 20 20 20 20 J 20 J A S O N D 20 20 20 20 20 20 J F M A M 21 21 21 21 21 J 21 10
BUDGET SUMMARY CEC ALLOCATION PROJECTED PROGRAM BUDGET Fiscal Year Amount Category Amount Project Funds FY14* $26,280,638 Investment Grade Audits $4,750,000 Project Funds FY15* $22,048,789 Design $4,668,740 Project Funds FY16** $26,000,000 Construction $98,366,030 Project Funds FY17** $26,000,000 Construction Soft Costs (District) $9,044,657 Project Funds FY18** $26,000,000 Energy Mgmt. Staff $7,000,000 1 Total: $126,329,427 M&O Training (up to 2%) $2,500,000 *Actual Total: $126,329,427 **Projected Prop 39 Projected Program Budget Construction 78% Design 4% Investment Grade Audits 4% Construction Soft Costs (District) 7% Energy Mgmt. Staff 5% M&O Training 2% Note 1: Not including Affiliated Charter Schools (estimated @ $15M over 5 years) 11
PROJECT COST SUMMARY - BY SCHOOL PH. 1 - EXPENDITURE PLAN SUBMITTAL for FY 13-14 (CEC Approved) School Cost Per School Estimated Annual Energy Cost Savings SIR Status Marshall HS $1,836,073 $105,787 1.06 Construction Santee EC $2,859,789 $217,901 1.32 Construction Project Cost - Total: $4,695,862 $323,687 1.22 PH. 2 - EXPENDITURE PLAN SUBMITTAL for FY 14-15 (CEC Approved) School Cost Per School Estimated Annual Energy Cost Savings SIR Status Audubon MS $3,131,773 $127,405 0.88 Design Bell HS $1,974,290 $95,506 0.9 Design Bernstein HS $2,015,955 $123,370 1.14 Design Cochran MS $2,298,063 $90,604 0.81 Design Contreras LC $1,600,105 $129,431 1.44 Design Kennedy HS $1,354,518 $94,440 1.26 Design King Drew HS $2,035,262 $126,612 1.14 Design Lincoln HS $1,706,845 $88,347 1.07 Design Panorama HS $767,946 $43,421 1.03 Design Roybal LC $2,100,552 $145,104 1.15 Design Van Nuys HS $1,605,662 $80,690 0.94 Design CEC = California Energy Commission SIR = Savings to Investment Ratio Project Cost - Total: $20,590,971 $1,144,928 1.05 Grand Total: $25,286,833 $1,468,615 1.08 12
Ph. 1 & 2 - PROJECT COST SUMMARY - BY ENERGY MEASURE CATEGORY Energy Measure Category* Cost Per Category Cost Distribution Estimated Annual Energy Cost Savings Savings Distribution Estimated Utility Rebate Rebate Distribution Lighting $12,401,811.77 49.04% $764,988.51 52.09% $428,160.20 55.30% HVAC $4,482,309.70 17.73% $177,776.90 12.11% $62,906.29 8.12% HVAC Controls $2,579,106.37 10.20% $246,404.91 16.78% $50,918.58 6.58% High Efficiency Transformers $2,470,034.74 9.77% $135,419.19 9.22% $95,696.00 12.36% Lighting Controls $1,811,179.83 7.16% $74,729.53 5.09% $49,615.50 6.41% Pumps, Motors,Drives $1,411,553.43 5.58% $68,473.99 4.66% $61,958.60 8.00% Domestic Hot Water Heaters $130,836.91 0.52% $822.33 0.06% $25,000.00 3.23% *As Established by the CEC for Prop 39 Grand Total: $25,286,832.75 100.00% $1,468,615.36 100.00% $774,255.17 100.00% 13
PH. 1 & 2 - POST RETROFIT ESTIMATES School Baseline kwh/yr Electric Gas Electric Costs Gas Costs Post Retrofit kwh/yr Baseline Therms/yr Post Retrofit Therms/yr Baseline $/yr Post Retrofit $/yr Baseline $/yr Post Retrofit $/yr Audubon MS 1,872,000 1,042,871 23,955 18,437 $301,066 $177,428 $20,398 $16,631 Bell HS 2,975,696 2,323,229 30,003 30,003 $499,131 $403,625 $30,971 $30,971 Bernstein HS 2,745,840 1,880,192 29,978 29,978 $422,571 $299,201 $23,845 $23,845 Cochran MS 1,860,120 1,242,755 11,639 9,814 $291,322 $201,992 $10,103 $8,829 Contreras LC 2,297,280 1,504,415 85,961 85,961 $421,274 $292,023 $60,698 $60,698 Kennedy HS 2,562,933 1,942,318 22,744 23,362 $418,692 $321,115 $19,718 $22,855 King Drew HS 2,933,052 2,085,005 16,859 15,614 $454,265 $328,113 $14,474 $14,014 Lincoln HS 2,523,260 1,800,798 25,148 18,303 $419,442 $337,319 $22,860 $16,637 Marshall HS 2,265,577 1,617,624 42,934 26,133 $322,048 $230,071 $35,280 $21,470 Panorama HS 2,484,760 2,159,860 30,138 31,956 $394,257 $349,336 $24,526 $26,026 Roybal LC 3,844,847 2,863,421 32,757 21,007 $469,768 $335,605 $46,133 $35,194 Santee EC 4,003,174 2,586,763 102,322 55,343 $506,223 $323,182 $75,872 $41,014 Van Nuys HS 2,060,040 1,530,866 14,116 13,863 $366,655 $286,769 $12,272 $11,468 Total: 34,428,579 24,580,117 468,554 379,774 $5,286,714 $3,885,779 $397,150 $329,652 14
LESSONS LEARNED Contractor Resources and School Coordination Understand site coordination & logistics issues. Develop phasing plan & appropriate working hours to accommodate school schedule. Streamline Utility Rebate Process Prevent Delays in Application Review and Scheduling Pre-Inspection. Require Energy Service Companies to attend all Rebate Program training seminars sponsored by the Utility. Los Angeles Department of Water and Power Southern California Edison Southern California Gas Agency Collaboration with Department of State Architecture (DSA) Determining Type of Projects that Require DSA Approval. Streamlining Submittal and Approval Process. Streamline District s Process to Review and Approve New Technologies LED Lighting. Wireless Controls. Tankless Domestic Water Heaters. 15
OVERALL PROGRAM IMPACTS (Phases 1-5) Jobs Creation 550 Job Years (As estimated through the CEC Calculator). General Fund Savings $5.84 Million estimated in Annual Electric & Gas Savings. Improve Learning Environment Improved Lighting & Temperature Control in Classrooms. Lower Maintenance Costs New LED lighting with less replacement costs. Retrofitted and Retro-commissioned HVAC Systems to meet current requirements. Energy Management Systems to improve HVAC controls and operating schedules. Student Energy Auditor Training 60-80 High School Seniors trained in performing energy surveys. Partner with the California Conservation Corps & Los Angeles Conservation Corps. 16
COLLEGE AND CAREER READINESS In Partnership with the California Conservation Corp (CCC) and the Los Angeles Conservation Corp (LACC), LAUSD will be able to deliver a workforce development program to high school students that: Contributes to the student s achievement of Career Preparation outcomes. Contributes to preparing the student with the basic skills necessary for higher-- intensity work-- based learning experiences(career Preparation and Career Training.) Provide activities that have consequences beyond the class or value beyond success in school and are judged by outside professionals from industry and the community using industry standards. 17