Wednesday, February 25, :45 a.m. - 12:15 p.m. Sacramento Convention Center Room 309. Workshop # 30

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1 C.A.S.H. 30 TH ANNUAL CONFERENCE ON SCHOOL FACILITIES 30 YEARS OF SCHOOL FACILITIES LEADERSHIP ADVOCACY EDUCATION COLLABORATION Wednesday, February 25, :45 a.m. - 12:15 p.m. Sacramento Convention Center Room 309 Workshop # 30 How Will California's Global Warming Solutions Act Affect You? Moderator: Michael Bishop Paramount Unified School District (562) Panelists: Laura Battise Chevron Energy Solutions (916) , ext Randy Britt Los Angeles Unified School District (213) Steve Newsom LPA, Inc. (916) CALIFORNIA S COALITION for ADEQUATE SCHOOL HOUSING 1130 K St., Suite 210 Sacramento CA Phone (916) Fax: (916)

2 What is AB 32? AB 32 or The Global Warming Solutions Act of 2006 is a Ca. environmental law to reduce Ca. greenhouse gas (GHG) emissions Goal of reducing GHG to 1990 levels by 2020 (about a 30% reduction based on business as usual scenarios) AB 32 Timetable 1/1/09: Approved scoping plan for achieving 2020 Ca. GHG emissions limit 1/1/11: Adopt GHG emissions limits and emission reduction measures based on 1/09 scoping plan, effective in one year 1/1/12: Mandatory caps based on 1/09 scoping plan become effective. Market-based cap and trade regulations likely

3 Western Climate Initiative (WCI) WCI will likely form a regional cap & trade market (AB 32 has ramifications far beyond Ca.) Partners are already on-board. Observers are likely to join Source: Western Climate Initiative Sectors Impacted by AB 32 Transportation Electric Utilities Buildings Industry Recycling and Waste Agriculture

4 Regulated Greenhouse Gases & Sources Carbon Dioxide: Fossil fuel consumption (electricity, transportation, heating) & land use Methane: Agriculture, fossil fuel use & waste disposal Nitrous Oxide: Agriculture & land use Fluorinated Gases (HFC, PFC & SF 6 ): Refrigerants, manufacturing & fire suppressants Ca. GHG Emission Sources Source: ARB Scoping Plan-California Gov t

5 Recommended Efficiency Actions Source: ARB Scoping Plan-California Gov t More Recommended Actions All new schools should be required to meet the Collaborative for High Performance Schools (CHPS) 2009 criteria Existing schools applying for modernization funds should also be required to meet CHPS 2009 criteria All new State buildings to exceed existing Green Building Initiative energy goals and achieve nationally-recognized building sustainability standards such as Leadership in Energy and Environmental Design - New Construction (LEED-NC) Gold certification Existing State buildings would also be retrofitted to achieve higher standards equivalent to LEED-EB for existing buildings (EB) Silver Source: ARB Scoping Plan-California Gov t

6 AB 32 K-12 Opportunities A.B. 32 also has a Community Empowerment Amendment that, requires ARB to ensure that the GHG emission reduction rules, regulations, programs, mechanisms, and incentives under its jurisdiction direct public and private investment toward the most disadvantaged communities in California and provide an opportunity for small businesses, schools, affordable housing associations, and other community institutions to participate in and benefit from statewide efforts to reduce GHG emissions. Source: Greenlining Conclusions AB 32 is a far reaching state law that will have an impact at almost every level within the state and considerable impacts across North America New and existing schools will be required to meet building efficiency standards under AB 32 Although the goals of AB 32 are challenging they will also provide new opportunities

7 Funding Resources In The Age of AB 32 February 25, 2009 Laura Battise Rebecca Wetzstein Chevron 2007 Proprietary & Confidential Resources for Renewables and Energy Efficiency Projects State Funding Stimulus Funding California Solar Initiative California Energy Commission Low Interest Loans Specialty Loan Programs in Partnership with Vendors Foundations Clean Renewable Energy Bonds Tax Exempt Lease Purchases Power Purchase Agreements Renewable Energy Credits Investor Owned & Municipal Owned Utility Incentives/Rebates Self-Generation Incentives Bright Schools Program USDA Lower Emissions School Bus Programs & AB 118 S h l E Effi i P

8 State s School Facility Program: Modernization Program Information State provides 60% of total project costs based on eligibility at specific school site. District must have a 40% local match Eligible Projects Improvements to extend useful life of, or enhance physical environment, utility costs, utility connections, HVAC equipment, insulation materials, F&E, telecommunication equipment, electrical systems, abatement of hazardous materials, wiring & cabling for technology High Performance School Grants- provide augmentations of 2% to 9.05% to modernization grants State s School Facility Program: New Construction Program Information State provides 50% of total project costs based on eligibility at specific school site. District must have a 50% local match New classrooms- build green! High Performance School Grants- provide augmentations of 2% to 9.05% to new construction grants Availability of funding subject to passage of Statewide GO Bond

9 CEC S ENERGY EFFICIENCY FINANCING PROGRAM Eligible School Projects Lighting Motors, drives & pumps Building insulation HVAC modifications Automated energy management systems/controls Energy generation including renewables & cogeneration Energy audits/studies Loans as low as 3.95% Maximum loan: lesser of $3 million, project cost, or annual energy savings X 10. For existing buildings and some new construction Bright Schools Program Provides Technical Assistance in Identifying Cost- Effective Energy Savings Measures: Conduct energy audits and feasibility studies Provide design consultation & review schematics/construction plans Provide recommendations to maximize CHPS energy credits for state funding Develop equipment performance specifications Assist with contractor selection Review equipment bid specifications Review and assist with system commissioning plans Compare different technologies D l t i l ti d l f l d j t

10 Qualified School Construction Bonds (as of 2/12/09 Stimulus Bill) New category of tax credit bonds for public schools: Construction Rehabilitation Repair Site acquisition The tax section of the Stimulus legislation includes $24.8 billion for Qualified School Construction Bonds. ($11 billion in each of and ). Bond is issued by the State or local government where district is located. Issuer must designate the bond specifically as QSCB. Tax Exempt Lease Purchase- TELP s An installment purchase, conditional sale or lease with an option to purchase for nominal value (aka municipal lease). Interest earned by lessor is not subject to federal taxes~ lower rates to district. Benefits: Preservation of capital dollars Does not create long-term debt on district s books Enables improvement of cash flow Does not require voter approval Eligible Projects: energy management systems, expanding existing facilities, modular buildings and schools.

11 California Solar Initiative Program goal- to create 3,000MW of new solar produced electricity by PG&E, SCE and SDG&E territories Districts located in publicly owned utility, check for CSI update. Minimum size of solar project 1kW Maximum size of solar project 5MW (incentives capped at 1 st MW) Program Type Performance-Based Incentive (PBI) Payments over 5-year for systems over 50kW Expected Performance-Based Buydown (EPBB) Payments upfront from smaller systems California Solar Initiative (Continued) Districts & nonprofits get a higher incentive rate than others as they don t qualify for tax incentives Incentives decline upon rate reservations of rebates Check anticipated rebate level at

12 California Solar Initiative Last updated 2/12/2009 Adminis trator Customer Class * Current Step Initial MW in Step Unused MW from Previous Steps Revised Total MW in Step Issued Conditional Reservation Letters (MW) MW Remaining MW Under Revie w Residential PGE Non- Residential Residential SCE Non- Residential Residential CCSE Non- Residential California Solar Initiative (Continued) Statewide EPBB Payments (Per Watt) Non-Residential PBI Payments (per kwh) Non-Residential Step MW in Step Residential Commercial Government/ Residential Commercial Government/ Non-Profit Non-Profit 1 50 n/a n/a n/a n/a n/a n/a 2 70 $2.50 $2.50 $3.25 $0.39 $0.39 $ $2.20 $2.20 $2.95 $0.34 $0.34 $ $1.90 $1.90 $2.65 $0.26 $0.26 $ $1.55 $1.55 $2.30 $0.22 $0.22 $ $1.10 $1.10 $1.85 $0.15 $0.15 $ $0.65 $0.65 $1.40 $0.09 $0.09 $ $0.35 $0.35 $1.10 $0.05 $0.05 $ $0.25 $0.25 $0.90 $0.03 $0.03 $ $0.20 $0.20 $0.70 $0.03 $0.03 $0.10

13 Other Programs to Investigate Clean Renewable Energy Bonds- solar for districts: taxexempt bonds (pre & post TARP) Qualified Energy Conservation Bonds- solar thermal & PV projects for districts: tax-exempt bonds Emerging Renewables Program- small wind & fuel cells projects for districts: rebate/incentives USDA Rural Energy for America Program Grants (REAP)- solar water heat, solar space heat, solar thermal, PV, feasibility studies for rural districts: 25% grant/75% loan program. Investor Owned & Municipal Owned Utility: cool roofs, improved daylighting, efficient motors, fans, compressors, HVAC, lighting, weatherization, insulation, window tinting, ENERGY STAR appliances, vending machine controllers: rebates/incentives Other Programs to Investigate (Continued) Alternative and Renewable Fuel & Vehicle Technology Program (AB 118)- in regulatory development. $200M through 2015 for three new programs. Provides for lower emission school buses. Renewable Energy Credits ( REC s ) for every kwh of electricity generated, one kwh renewable energy credit is generated. Generator may sell the REC. REC s are bought and traded. Current market is nominal, future market value may be more valuable. Power Purchase Agreements- District contracts with builder to construct power generating facilities (solar panels and inverter system). Third party financing entity owns facility and sells power to district. May provide production guarantee, energy savings, relief to general fund and provide REC s. School Energy Efficiency (SEE) Program- funded by PUC, operated by Resource Solutions Group. Group works with districts in PG&E territory. Provides services energy audit & recommendation (no cost). Provides same rebates as PG&E plus a 10% bonus for signing implementation agreement within 30 days and a 20% bonus for completing project within 6 months. Case studies at Fresno USD and

14 Resources CEC Energy Efficiency Loans: Bright Schools Program: Office of Public School Construction: California Solar Initiative, Go Solar Program: Database of State Incentives for Renewables & Efficiency: USDA Reap Program: Resources (Continued) School Resources Programwww.pge.com/mybusiness/energysavingsrebates/tips/sch ools/ Flex Your Power- institutional incentives by zip code: CEC Cool Roof Program: AB 118 Alternative & Renewable Fuel & Vehicle Technology Program: Stimulus Programs: Recovery.gov SEE Program:

15 THE SUSTAINABILITY INITIATIVES PROGRAM OF THE LOS ANGELES UNIFIED SCHOOL DISTRICT Planning to Meet the Goals of AB 32 AB 32; Developing the Plan Build a Sustainability Program Identify the District s Carbon Footprint Identify those actions and projects that can reduce the Carbon Footprint Work with CARB to get credit for early actions Set Goals for reducing Carbon Footprint Execute Projects

16 Building a Sustainable Program Built support for mandate Passed Board resolution Made Sustainability routine business, and renewable energy a priority Developed solar and energy conservation specifications Conducted RFQ and RFP in Design Build model Utilized available funding lines Passed Bond Measure Q Secure Federal Stimulus Funds SUSTAINABILITY PROGRAM FACILITIES COMPONENTS Energy Efficiency and Renewable Energy Sustainable Designs for: New Construction Modernization Projects Water Supply Indoor Air Quality

17 SUSTAINABILITY PROGRAM BUSINESS COMPONENTS Green Workforce Development Transportation Management Sustainable Procurement SUSTAINABILITY PROGRAM Regulatory Affairs/Government and Utility Relations Component Direct Access Proceedings Pending legislation for project funding CPUC and LADWP limitations on incentives for renewable projects Incentives for energy and water conservation DSA Cooperation

18 SUSTAINABILITY INITIATIVE PROGRAM GOALS Energy Conservation and Renewable Energy The 50/50 Program Reduce energy use by more than 50 million kwh by 2012 Install 50 MW of renewable energy by 2012 ENERGY CONSERVATION PROJECTS GOAL : To reduce energy usage by more than 50 million kwh from 2006 to 2007 usage by 2012 including 60 new schools. To be accomplished through the completion of: Lighting Retrofits HVAC Retrofits Energy Management System Installations Computer Power Management System Installations

19 RENEWABLE ENERGY IMPLEMENTATION Goal: Install 50 Megawatts of Renewable Energy by 2012 to be accomplished by installing photovoltaic solar arrays on existing and new school sites WATER CONSERVATION Goal: To reduce water consumption by 10%; 200 million gallons by 2012 including 60 new schools through the implementation of: Low flow restroom fixtures Smart irrigation controllers Water Brooms Cooling Tower Conductivity Controllers In all LAUSD sites

20 New Construction and Modernizations Sustainability by Design Goals: Design all schools and buildings so that their energy performance is better than California Energy Code by 30% Meet CHPS Standards for Indoor Environmental Quality and Acoustics in all new schools All new construction will prepare sites for renewable energy installations to offset 30% of energy consumption Design Indoor water fixtures to perform 20% to 40% below EPA indoor requirements Design exterior water systems for all new schools that will result in a water usage reduction 20% lower than local ordinances Government Relations/Regulatory Affairs Goals: Finalize program identifying the LAUSD Carbon Footprint and set reduction goals Monitor and intervene as needed in Direct Access proceedings to ensure that all school sites in Edison territory are eligible for competitive rates Monitor and intervene as needed in State and Federal legislation providing funding for projects Work with CPUC and LADWP to increase incentives for: Renewable Energy Projects Energy and Water Conservation

21 Government Relations/Regulatory Affairs DSA Grid Neutral Proposal California DSA Definition of Grid Neutral Each site will generate as much electricity on site each year as the site uses annually Staff has been participating with DSA s office in establishing the business case for Grid Neutral standards. LAUSD is evaluating possible Grid Neutral sites for both new and existing facilities SUSTAINABLE BUSINESS SERVICES The Transportation Branch has an ongoing commitment to reduce vehicle miles traveled for all buses and fleet vehicles, and to convert vehicles to alternative fuel sources to minimize emissions. Procurement Services Group is committed to making procurement decisions which minimize negative impact on the environment by increasing the number of sustainable products purchased. Food Services Branch is working to minimize waste streams and expand recycling opportunities. 40

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