Texas Programs

1
Texas Programs

• Financing Energy Efficiency in Public Building
  Projects
• Presented to the Western Governors Association
• Energy Efficient Buildings Workshop
• By Tom Fitzpatrick, Energy Efficiency
  Advocacy/Consulting

July 18, 2007
2
Energy Saving Performance Contracting (ESPC)

• Authorizing Statutes
• K-12 Public Schools
• Texas Education Code, 44.901
• Public Higher Education
• Texas Education Code, 51.927
• State Agencies
• Texas Government Code, 2166.406
• City/County Governments
• Texas Local Government Code, 302

3
80th Texas Legislature, 2007

• SB 831 relating to energy savings performance
  contracts, signed 6/16/07, effective immediately.
  Extends allowable term to 20 years, allows other
  operating savings or revenue from improved meter
  accuracy.

4
Texas ESPC Provisions

• Design-build w/performance guarantee
• Professional services procurement
• Energy and/or water savings measures and related
  costs eligible (now may include other operating
  savings or new revenues)
• Savings gt/ costs
• 15 year maximum term (now 20)
• Savings guarantee required
• Payment and performance bond required
• Third party review required

5
State Agency ESPC Guidelines

• Part 1 getting the most from your performance
  contract and contractor
• Part 2 for the owner - contract structure,
  essential elements, and certifications
• Part 3 request for qualifications (RFQ) template
• Part 4 for the contractor - technical, cost, and
  savings criteria, including MV and
  certifications
• Part 5 utility assessment report format
• Part 6 third party independent reviews
• Part 7 state agency approval checklist
• Part 8 funding of performance contracts

6
Texas LoanSTAR Program

• (Saving Taxes And Resources)
• Low interest revolving loan program for energy
  efficiency building retrofits
• Borrowers - any public entity in Texas
• 187 loans, 5.5 year average payback
• Cumulative energy savings over 200 million
• Cumulative emission reductions since 1990
• NOx 7,073 tons
• CO2 2.1 million tons
• SO2 4,788 tons

7
LoanSTAR Projects

• City of San Antonio
• LED traffic and pedestrian signals
• 1.7M loan, 880K savings, 2 yr ROI
• Collin County
• Lighting, water, pumps, motors, HVAC
• 4.7M loan, 470K savings, 10yr ROI
• City of Dallas
• Lighting, EMS, pumps, motors, HVAC
• 3.5M loan, 390K savings, 9 yr ROI
• City of Ft Worth
• Lighting, EMS, HVAC, design/engineering
• 5M loan, 700K savings, 7 yr ROI

8
Thank You

• For more on Texas legislation and legislative
  resources, www.capitol.state.tx.us
• For more on the Texas LoanSTAR Program or State
  Agency ESPC Guidelines, www.seco.cpa.state.tx.us
• For an overview of the EE program offerings of
  investor-owned utilities in Texas
  www.texasefficiency.com
• For information on Continuous Commissioning
  http//esl.eslwin.tamu.edu/continuous-commissionin
  g-.html
• Tom Fitzpatrick, [phone], fitz_at_io.com