Energy Performance Contracting Project Highlights
The Colorado Governor’s Energy Office (GEO) has identified energy performance contracting as the critical vehicle for making energy efficiency improvements in state and local governments. GEO offers Trident to state agencies, higher education, cities and counties to ensure successful completion of comprehensive energy efficiency upgrades
City of Lafayette funded $1,200,000 of capital improvements without using their capital budget.
Trident worked on behalf of the Colorado’s Governor Energy Office (GEO) to implement an energy performance contract (EPC) for the City of Lafayette. The City had $1,200,000 of capital improvements and no capital budget to fund these improvements. The City used the EPC process as a way to fund their capital improvements and improve the City’s energy footprint. The City received $70,000 in utility incentives, $40,000 in GEO grants, and financed the remaining project cost through a tax-exempt lease purchase. Energy saving measures ranged from lighting retrofits and replacing inefficient and outdated equipment to installing new solar photovoltaic and thermal systems on the Recreation Center roof.
Trident worked with the Director of Facilities and Recreation, theCity Manager, and the City Council to gain a better understanding of the EPC process, which helped the city to ultimately make the decision to move ahead with the project. Curt Cheesman, the city’s Facilities and Recreation Director said of Trident, “GEO’s unbiased third party consultants helped me understand the EPC process and provided the security and confidence I needed to forward.”
Trident provided support to the City at every step of the project, including: communicating the pros and cons of EPC, analyzing existing utility bill consumption and costs, determining potential opportunities for savings, assisting with Request for Proposals for Energy Service Company (ESCO) selection, and reviewing technical documents prepared by the ESCO. When the project is completed Trident will also assist the City with the measurement and verification process.
After energy and water saving measures are implemented, the project is expected to save the City $115,000 in utility bills and operation and maintenance costs every year and reduce electricity consumption by 700,000 kWh annually.
For more information: City of Lafayette energy performance contracting case study
City of Grand Junction self-funded $2,000,000 of facility upgrades using the savings from improved energy use.
By using money saved from energy and water efficiency improvements, the City of Grand Junction was able to self-fund an entire energy performance contract (EPC). Trident worked with the City to ensure the successful implementation of the project and help keep the project within the confines of the available budget. Trident conducted site visits to present the EPC process to senior level decision makers, acted as a liaison between the City and the Energy Service Company, assisted with proposal preparation, reviewed technical energy audits, and assisted with the monitoring and verification stage.
Improvements were made at 18 buildings and facilities including energy and water conservation measures such as: lighting retrofits, HVAC upgrades, insulation, and solar photovoltaic installation at the Two Rivers Convention Center. The project cost $2,000,000 and the City received $99,000 in utility incentives, $225,000 in miscellaneous grants, and used bond financing to cover the remaining balance. Savings from improved water and energy use are expected to reduce the City’s annual utility costs by 20%
At an event to celebrate the successful completion of the project, Mayor Bruce Hill stated, “In 2007 City Council passed a resolution committing to energy conservation efforts whenever and wherever feasible in City of Grand Junction facilities. Today’s event marks a very important milestone in that commitment. I am proud of what this organization has accomplished so far and I am excited to see where we can go from here.”
For more information: City of Grand Junction energy performance contracting case study
La Plata County implemented energy efficiency and renewable energy projects through a self-funded and grant-supported 2-phased energy performance contract.
La Plata County implemented energy and water saving measures with a 2-phased energy performance contract (EPC). In the first phase, the County elected to self-fund measures that would pay themselves pay back over a relatively short amount of time. Measures included: lighting retrofits, solar hot water heating, and boiler replacements. In Phase 2 the County upgraded old and inefficient equipment, including: fans, rooftop units, and pumps, and installed photovoltaic solar collectors. These measures had a longer payback but would significantly cut down operation and maintenance costs. The County received approximately $700,000 in Department of Local Affairs grants to help fund the second phase of the project.
Trident regularly visited the County and presented the EPC process to board members, helped prepare Request for Proposals and contractual documents, reviewed technical documents submitted by the Energy Service Company, and worked on the County’s behalf to ensure successful completion of the project.
The total cost for Phase 1 was around $500,000 with annual savings of $34,000 and reduced energy needs of 255,000 kWh. The cost for Phase 2 was $1,100,000 and with annual savings projected to be $35,000 and reduced energy needs of 380,000 kWh.
South Routt School District improved environmental quality and indoor air quality for their students by replacing an old, outdated and inefficient coal boiler with a new, state-of-the-art heating system.
South Routt School District was one of the last school districts in Colorado to use coal to heat school buildings. Through energy performance contracting (EPC), the District was able to replace the old, outdated and inefficient coal boiler with geothermal heat pumps, a woody biomass boiler, and a back-up propane furnace.
Coal is very cheap and it was difficult to show a positive financial return by replacing coal with more, efficient, and more expensive fuel sources. Fortunately other upgrades produced enough cost savings to warrant the upgrades. For instance, by replacing propane as the primary fuel source with woody mass as the primary fuel source, the district will save the county $10,000 each year and the woody mass is sourced from local sources.
Trident helped the District understand the EPC process, the cost and health benefits of upgrading old and inefficient equipment, review technical documents delivered by the Energy Service Company, and participated in site visits to ensure the successful implementation of the energy performance contract.
The total project cost was approximately $4,000,000 and received nearly $3,800,000 in grant and bonding financing. The District received approximately $2,100,000 in CDE grants, $600,000 in Department of Local Affairs grants, and $75,000 in Governor’s Energy Office grants.
Although the District did not experience significant cost savings resulting from improved energy efficiency, the District will significantly reduce its energy USE and will save between $10,000 and $15,000 in lower operation and maintenance costs each year. Classrooms and the school yard will now be free of coal dust and indoor air quality will be significantly improved. The District is reducing their carbon footprint and reducing their impact on the environment by using local wood sources and geoexchange heating and cooling.
For more information:
South Routt School District energy performance contract case study
Using rebates, incentives, grants, and a lease purchase agreement Mesa County School District 51 implemented $4,700,000 worth of energy efficiency improvements.
Mesa County School District 51 is located in Grand Junction, CO. The District had a long list of needed energy efficiency and building upgrades for their 122 buildings. The primary concerns were with old and inefficient heating, ventilation, and cooling (HVAC) systems and lighting systems. Upon review during several site visits through an energy performance contract 79 of their 122 buildings qualified for lighting system retrofits and new HVAC systems were identified for several buildings throughout their jurisdiction.
Trident provided support to the school district at every step of the project, including: analyzing existing utility bill consumption and costs, determining potential opportunities for savings, assisting with Request for Proposals for Energy Service Company selection evaluating project proposals, and conducting third party verification of technical deliverables. When the project is completed Trident will also assist the City with the Measurement and Verification process.
The total project cost is approximately $4,700,000 for two phases. In the middle of a county-wide recession, Mesa School District did not have any capital to fund these improvements and relied solely on financing mechanisms. Through their utility, the school district received $1,100,000 from utility rebates and $100,000 in the Governor’s Energy Office grants, while the balance will be paid with a lease purchase agreement. Annual payments are made using the savings from utility and operation and maintenance costs, which are expected to exceed $600,000 each year for both phases. The energy improvements are expected to save Mesa School District over 6,000,000 kWh of electricity annually.
South Park Recreation District used pine beetle kill to heat their swimming pool.
To save money from rising propane costs and insulate their operation and maintenance budget from fluctuating fuel costs, South Park replaced their primary heating fuels with a woody biomass boiler through energy performance contracting (EPC). The swimming pool alone required 35,000 gallons of propane annually. Through the EPC process it was determined that a woody biomass heating system using wood pellets would be more financially attractive than burning their previous heating fuels. Woody biomass would be acquired from trees that were killed by the pine beetle would produce less greenhouse gas emissions and better air quality. Other facility improvements include an optimized thermostat and optimized DHW system.
The project cost $450,000. South Park received $200,000 in Department of Local Affairs grants and $50,000 in the Governor’s Energy Office grants, while the remaining need was financed with a lease purchase agreement. Utility bill costs before the energy and water efficiency improvements were approximately $81,000 each year and, as a result of EPC, South Park will save nearly 50% on their energy bills for the recreation center,with projected annual savings of $35,000. The project will save South Park 13,000 kWh of electricity and 32,000 therms of fuel.
For more information: South Park Recreation Center energy performance contract case study