Orange County Board of County Commissioners Biogas Renewable Energy Performance Contracting Project

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Orange County Board of County CommissionersBioga
s Renewable Energy Performance Contracting Project

• Utilities Department
• March 17, 2009

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Presentation Outline

• Performance Contracting
• Proposed Energy Project
• Benefits of Project
• Project Delivery
• Current Status
• Next Steps

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Presentation Outline

• Performance Contracting
• Proposed Energy Project
• Benefits of Project
• Project Delivery
• Current Status
• Next Steps

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What is a Performance Contract?

• A type of contract that specifies the end results
  desired rather than the specific details of how a
  product should be manufactured or how a service
  should be delivered
• Used in a number of industries
• Highway and bridge construction
• Equipment installation
• Building and school construction
• Energy conservation and energy recovery

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Benefits of Performance Contracting

• Owner benefits from the opportunity to clearly
  describe the desired outcomes and performance
  goals rather than construction specifications
• Contractor benefits from the flexibility to
  determine how best to accomplish the desired
  outcome in an innovative and competitive manner
• Everyone benefits from innovations that may lead
  to improved safety, reduced costs, energy
  savings, faster project completion and equal or
  better quality

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How is Performance Contracting Being Used for
Energy Projects?

• Energy Performance Contracting (EPC) is a
  procurement method for implementing capital
  improvement energy projects and using the
  resulting savings to pay the project costs

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Energy Contracting Legislation Background

• 1994 - Energy contracting legislation (s.
  489.145) enacted
• 2001 - Law substantially amended during 2001
  Regular Legislative Session

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Energy Conservation Measures

• Insulation
• Storm windows doors
• Lighting
• Heating, ventilating and A/C
• Energy recovery systems
• Automatic energy control systems
• Co-generation systems
• Measures which reduce long-term operating costs
  and Btus
• Renewable energy systems (solar, biomass, wind)
• Trash disposal
• Water or sewer consumption reductions

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Key Provisions of the Laws

• Savings fuel, energy, OM costs new
  construction
• Contract term up to 20 years
• Must use competitive procurement process
• Requires annual written savings guarantee
• Contract must include design and installation,
  OM, actual annual savings, financing charges

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Key Provisions of the Law (continued)

• Allows for 3rd party financing
• Contract must stipulate that the financing does
  not constitute debt, liability, or obligation or
  a pledge of faith and credit of agency
• 100 public construction
• construction bond required
• Payback based on project life-cycle cost
  calculations

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Key Provisions of the Law (continued)

• Contractor performs annual reconciliation of
  savings
• Energy contractor liable for shortfalls
• Excess savings cannot cover shortfalls in future
  contract years
• On-going performance monitoring and verification
  with Annual Reconciliation

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Energy State Term Contract
Purpose To establish a state term contract
for a comprehensive statewide energy plan for use
by all governmental entities
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Presentation Outline

• Performance Contracting
• Proposed Energy Project
• Benefits of Project
• Project Delivery
• Current Status
• Next Steps

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South Water Reclamation Facility
Biosolids Facility
Sand Lake Road
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SWRF Biosolids Handling

• Sludge processing
• Anaerobic digestion
• Gravity thickening
• Dewatering
• Land application
• Class B Biosolids
• 100 tons per day

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Bi-Fuel Engine

• Fueled by biogas and diesel mixture
• Installed in 1987
• Needs replacement

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Flaring of Digester Gas

• Biogas is a mixture of methane and carbon dioxide
• Flaring is needed to reduce greenhouse gases and
  control odor

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Oil and Grease Prevention Program

• BCC enacted the Oil and Grease Prevention Program
  in December 2002
• All restaurants in Orange County are required to
  have and maintain grease traps
• Currently affects 2,000 customers
• Generates over 5 million gallons of fats, oil and
  grease (FOG) annually

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Renewable Energy Energy Conservation
Opportunities

• Replace digester covers and install gas
  collection, treatment and storage systems
• Install grease receiving and processing station
• Biogas energy applications
• Generation of electricity
• Digester heating

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Presentation Outline

• Performance Contracting
• Proposed Energy Project
• Benefits of Project
• Project Delivery
• Current Status
• Next Steps

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Benefits of Renewable Energy Biogas Applications

• Reduction of Greenhouse Gases
• On-site generated electricity will reduce
  utility-purchased electricity
• Recovered heat will reduce natural gas
  consumption

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Benefits of Grease Receiving Facility

• Grease disposal haulers will have an option to
  deliver grease to SWRF
• Adding grease increases methane production
• Tipping fees to help recover project costs

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Presentation Outline

• Performance Contracting
• Proposed Energy Project
• Benefits of Project
• Project Delivery
• Current Status
• Next Steps

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Project Delivery Alternatives

• Traditional Design-Bid-Build
• Traditional Design-Build
• Energy Performance Contracting (EPC)

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Project Delivery Using EPC

• 10 vendors available on State Contract
• Qualifications based selection
• Two-step process
• Comprehensive Energy Audit agreement
• Guaranteed Energy Performance Saving Contract

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Project Delivery Using EPC

• Guaranteed firm-fixed price and performance from
  a national design-builder
• Resulting savings pays for the project within 20
  years
• Initial commitment is for the Energy Audit only
• Contract may be terminated if the Energy Audit
  does not show the project to be feasible or if
  parties can not agree on the terms of the
  Guaranteed Energy Performance Savings Contract

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Presentation Outline

• Performance Contracting
• Proposed Energy Project
• Benefits of Project
• Project Delivery
• Current Status
• Next Steps

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Current Status

• Initial engineering evaluation indicates the
  project is feasible
• RFI sent to all 10 vendors on State Contract
• Two vendors responded
• Chevron Energy Solutions
• Johnson Controls
• Chevron selected based on qualifications

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Presentation Outline

• Performance Contracting
• Proposed Energy Project
• Benefits of Project
• Project Delivery
• Current Status
• Next Steps

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Next Steps

• Negotiation of the Comprehensive Energy Audit
  (CEA) with Chevron Energy Services for execution
  by the Purchasing Manager
• CEA will be completed in order to develop firm
  fixed price proposal with guaranteed energy
  savings
• Negotiation of the Guaranteed Energy Performance
  Savings Contract (GEPSC)
• BCC execution of the GEPSC

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Orange County Board of County CommissionersBioga
s Renewable Energy Performance Contracting Project

• Utilities Department
• March 17, 2009