Financing and Implementing Lighting Retrofits for Public Institutions

Transcription

1 Financing and Implementing Lighting Retrofits for Public Institutions Emile Lauzzana, AIA, LEED AP Director, Energy and Sustainability Detroit Public Schools

2 Context In Detroit there are A lot of classrooms like this one

3 Detroit Public Schools - 8 LEED Schools built Detroit School of the Arts LEED Certified 2005 MLK High School LEED Gold 2013 Mackenzie School LEED Silver 2013 Earhart School LEED Silver 2013

4 Detroit Public Schools District-Wide Sustainability Program DPS Go Green Challenge in its fourth year Each year: 100 teachers 1000 students 700 Project-Based sustainability projects Standards-Aligned Recycling, Energy, Water, Gardening and Nutrition Lessons 2-4% Energy and Water savings ($1.2M to date) Pasture Elementary GREEN GEMS

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9 A.L. Holmes Elementary

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11 Detroit Public Schools LED Lighting Retrofit Program GOALS: 1. Improve learning environments 2. Reduce costs SCOPE: 1. Use limited resources for classrooms only 2. Phase 1 -Retrofit all classrooms in 8 schools 3. Phase 2 targeted additional classrooms, gyms, cafeterias, and auditoriums Describe your Satisfaction with the light in your Classroom Teacher Survey Responses: Brighter light, better color, easier for students to see assignments, no shadow spots The lights are no longer flickering. Much brighter and I love how they shut off automatically The lights turn on as I walk into the classroom. It is bright and cheery in the classroom now. The lighting in the room has really made the room conducive for learning! BEFORE AFTER 1= Very Dissatisfied; 2= Dissatisfied; 3= Neutral; 4= Satisfied; 5= Very Satisfied

12 BEFORE Nichols Elementary-Middle School

13 AFTER Nichols Elementary-Middle School

14 Davis Aerospace Technical High School AFTER

15 LED Retrofit VS LED Major Considerations: 1. Economics 2. Financing 3. Design and Engineering

16 How much savings is really out there? DPS average school annual electric spend = $104,000 x 26% = $27,040 If we saved 50% the annual savings would = $13,520 DPS average school size = 106,000 SF Potential savings per SF = $0.127/SF/YR Potential savings district-wide= $0.127/SF/YR x $10M SF = $1,270,000/year

17 Let s do the Math: Assumptions: 1. No labor costs including assuming lights are either T12 or for some other reason need replacement 2. Annual increase of 4% in electricity costs included 3. Based on FY 15 DTE Incentive Program

18 How much savings is really out there?

19 How much savings is really out there? One for One Replacement Cummulative COSTS $ $ $ $ $50.00 $75/fixture in 10-year savings $ YEAR A-FL A-LED Cummulative COSTS $ $ $ $ $ $ $ $50.00 $- De-Lamp Scenario (3 tubes to 2 tubes) YEAR $200/fixture in 10-year savings B-FL B-LED

20 Financing Survey of MI School Officials DPS Funding Sources 179D Tax Deduction DTE Rebates Michigan Saves

21 Survey of MI School Officials The Ecology Center completed a survey in early 2016 of Michigan school business and operations officials. 52 respondents represented over 400,000,000 SF of instructional space, or about 10% of Michigan schools. Question 7 - Approximately how many total square feet of facilities do you operate? More than 2,000,000 1,000,001-2,000, ,001-1,000, , ,000 Less than 200, % 10.0% 20.0% 30.0% 40.0%

22 Survey of MI School Officials Question 8 - At your school/district, how important is energy efficiency and conservation? 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% Very Important Important Neutral Not Important Very Not Important 10.0% 0.0% Very Important Neutral Important Not Very Not Important Important

23 Survey of MI School Officials Question 20 To what extent are the following barriers impacting your ability to implement energy efficiency projects at your school/district? Limited budget / lack of funding Lack of financing Other more pressing needs are prioritized in budget Lack of staff to implement Expertise on staff Community priorities not focused on energy efficiency Public bid process/burden Uncertain of which investments should be made first I don't know Very problematic Somewhat problematic Not very problematic Not at all problematic

24 Survey of MI School Officials Question 29 - Which of the following financing options would be most desirable for your school/district in implementing additional energy efficiency or renewable energy projects in your facilities? Cash - general operating budget Energy Bond Funds (issued by state or regional agency) Bond Funds (issued by district) Energy efficiency financing loans Property Assessed Clean Energy (PACE) Energy performance contract Very desirable Somewhat desirable Not very desirable Not at all desirable

25 Survey of MI School Officials Question 30 - Assuming the term of an energy efficiency loan is equal to or shorter than the energy savings payback of the improvements of which the loan finances, what interest rates do you think your school/district would consider? 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 0-2% 2-4% 4-6% Greater than 6% Don't Know Other (please specify)

26 Survey of MI School Officials Question 31 - If your school/district was to make investments in energy efficiency or renewable energy improvements, what would be the longest return-on-investment (ROI) window you would find acceptable if the energy savings paid for the finance payments? 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0%

27 DPS Funding Sources Bond Funds General Fund LED Lighting Project 179D Tax Deduction DTE Rebates

28 179D Federal Tax Deduction History The Energy-Efficient Commercial Building Tax Deduction, also known as Section 179D, has been extended numerous times and is now set to expire at the end of A tax deduction of $0.60/SF is available for qualified improvements in each of the areas of: interior lighting, building envelope, and HVAC systems. (TOTAL $1.80/SF) New construction and renovation projects are eligible Qualified improvements must be modeled in computer software approved by the IRS Installed systems must reduce the buildings energy consumption by 50% or more in comparison to building systems meeting the minimum requirements of the ASHRAE Standard

29 179D Federal Tax Deduction Assignment of Deductions by Public Agencies The 179D deductions originally were only available to building owners, but further guidance provided by the IRS has allowed owners of public buildings and other non-taxable entities to award the deductions to persons and/or entities responsible for the project s design. Deductions must be taken in the year when construction is completed and may be retroactively garnered up to 7 years after completion.

30 179D Federal Tax Deduction 179D Language in Future RFPs When soliciting future bids for contract work, public agencies should include language specifically requesting bidders to agree to accept the tax deductions and provide 100% of the value as a credit towards the project or as a direct payment. Tax Advisor Services Specialty tax advisors are available to assist public agencies and others in IRS compliance and tax deduction certificate issuance

31 DTE Energy Incentives Available for both gas and electric projects Prescriptive, Custom and other programs Reservations recommended 5-10% of project cost DPS -$87,000 and counting

32 Michigan Saves Low Interest Loans

33 Michigan Saves Low Interest Loans

34 Engineering and Design Considerations Foot-candles (FC) Efficacy (Lumens/Watt) Color Temperature Color Rendering Index (CRI) Light Distribution Warranties and Certifications

35 Footcandles(FC) Footcandle(FC) is a measure of how much illuminance is on a surface. One footcandleis equivalent to the amount of light a candle makes on a 1 square foot piece of white paper held one foot away. While full daylight can reach as high as 10,000 FC, typical indoor lighting levels are significantly lower. Recommended lighting levels for schools at 30 above the floor: Classrooms: Offices: Computer Labs: Cafeterias: Hallways: Exterior: 50fc 50fc 30fc 30fc 30fc 1-5fc (depending on level of activity) NOTE: Both Under-and Over-illumination can cause eye-strain and headaches. Studies have shown long-term exposure to improper illumination levels can have lasting negative health impacts

36 Efficacy (Lumens/Watt) Efficacy is a measure of how much light is produced in Lumens to the amount of energy input in Watts. This is the most basic measure of energy efficiency. Source: LED Academy

37 Color Temperature Daylight New DPS Standard (5000K) Old DPS Standard Typical Residential *Studies have shown students have significant increases in visual acuity with higher color temperature lighting Source: SEESMART Lighting

38 Color Rendering Index (CRI) CRI measures how a color appears when lit by artificial lighting on a scale of 0 (bad) to 100 (good). Inferior LED may have high lumen outputs, but low CRIs. DPS Minimum CRI is 80. Source: Yuji LED Source: Phillips Lighting

39 Lighting Distribution (Photometry) Down Light Up/Down Light

40 Warranties and Certifications Typical for LED Fluorescent Tube Replacements 5 Year Limited Warranty 50,000 Hours New LED Lights 7-10 Year Limited Warranty ,000 Hours Detroit Public Schools Required Certifications:

41 Emile Lauzzana, AIA, LEED AP Director, Energy and Sustainability Detroit Public Schools