Money, Money, Money, Money!

California Green
Schools Summit
Investing in our
Future
Money, Money, Money, Money!
11/5/14
1:30 pm – 2:45 pm
MONEY, MONEY, MONEY
Other options for funding energy
projects
› Summary on: Of Rebates and Incentives
› On Bill Financing (OBF)
› Poway Projects
› kWh Savings and Therm Savings
› Dollar Savings
Summary of Rebates and
Incentives
› Rebates are dollars based upon
predetermined energy savings
› Incentives are a “custom” measure and
require pre and post inspection along with
measurement and verification
REBATES
› School District along with utility
representative determine an energy
savings project
› Verify terms and conditions of the energy
savings project. Catalog available from
your utility. Use the catalog before buying
any equipment Qualified rebate projects
DO NOT require a pre-inspection but
require a post inspection
› Rebates can be used with OBF
Incentives
› District along with the utility determine an
energy savings project
› Incentives can be used with OBF
› District submits energy savings calculation
to utility. Utility verifies and or modifies
calculations
› Implement project
ON BILL FINANCE (OBF)
› District along with the utility determine an
energy savings project
› District has energy savings verified by
their engineer or EMS determined in kWh
and dollars
› Energy project submitted to utility and
then verified or adjusted by utility
engineers
› District to review loan and monthly
payment
OBF – Cont.
OBF is designed to be utility bill neutral
› EXAMPLE:
– Loan of $50,000.00
– Monthly utility bill for “XYZ” school is
$15,000.00
– Calculated energy savings in dollars for “XYZ”
school will be $10,000.00/mo. After the
energy savings project has been implemented
– The $5,000.00 in energy savings will be added
back to the monthly bill until the $50,000.00 is
paid off
POWAY PROJECTS USING
REBATES, INCENTIVES AND OBF
› 2009 – Window tinting, lighting, HVAC
controls and re-commissioning (one
school)
› 2010 – Lighting (ten schools), HVAC
controls, new chillers, pumps and VFDs
(one school)
› 2012- 2013 – HVAC controls and rooftop
units (31 schools), lighting (one school)
SAVINGS
› OBF - $4,993,460.00
› INCENTIVES AND REBATES - $1,016,499.00
(REAL DOLLARS)
› kWh SAVINGS – 5,648,746 or
$6,938.985.00 BASED ON A BLENDED
RATE OF $.17/Kwh
› THERMS SAVINGS – 25,477 or $25,477.00
BASED ON A RATE OF $1/THERM
Questions?
Mike Tarantino
Poway USD
(858) 679-2526
[email protected]
SHARED
OPERATIONAL
SAVINGS/
GREEN
REVOLVING FUND
OUSD ENERGY COSTS
$7,000,000
Electricity Cost ($)
Energy Cost ($)
$5.9
million
$6,000,000
$5.1
million
$5.3
million
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
• $5.9 million on energy in 2013;
compared to $5.1m in 2012
• 67% more electricity costs in
2013 than in 2005
$0
2005
2006
2007
2008
2009
2010
2011
2012
2013
OUSD ENERGY COSTS
OUSD spent $5.3 million on
electricity alone in 2013.
Natural Gas
Cost,
9%
Electricity
Cost, 91%
$6,000,000
OUSD ELECTRICITY
CONSUMPTION 2005-2015
$5,000,000
35,000,000
30,000,000
$5,000,000
25,000,000
$4,000,000
20,000,000
$3,000,000
$2,000,000
$1,000,000
Electricity cost is rising
at an unprecedented rate
15,000,000
10,000,000
5,000,000
0
$0
2005
2006
2007
2008
Electricity Cost ($)
2009
2010
2011
2012
2013
Electricity Use (kWh)
$6,000,000
OUSD ELECTRICITY
CONSUMPTION 2005-2015
$5,000,000
35,000,000
30,000,000
$5,000,000
25,000,000
$4,000,000
20,000,000
$3,000,000
$2,000,000
$1,000,000
Average $/kWh increased:
• by 37% from 2005 to 2013
• by 23% from 2012 to 2013
• from ~$0.15/kwh to ~$0.18/kwh over
2012-2013
$0
15,000,000
10,000,000
5,000,000
0
2005
2006
2007
2008
Electricity Cost ($)
2009
2010
2011
2012
2013
Electricity Use (kWh)
ELECTRICITY COSTS
2005
2012
2015
???!
Flat Rate
Time of Use
~12₵
~15₵
???
>18₵
PG&E has changed our rates 33 times
since January 2005!
PRE-PILOT LESSONS LEARNED
955 High Street
900 High Street
High Engagement
Low Engagement
No Shared Savings
Incentive
No Shared Savings
Incentive
20% Reduction
No Reported Savings
$3,100 Bill Savings
No Reported Savings
SHARED SAVINGS IN OTHER
SCHOOL DISTRICTS
• 3-4 Yr. Successful Shared Operational
Savings @ SFUSD and Elk Grove USD
• Over 4 years, EGUSD saved 52,000,000
kWh and over $5 million
• Yr. 1, 2011-12, SFUSD w/30% participating
schools, reduced district-wide utility costs
by 6.3%, saving over $175,000*(@ 4¢/kWh)
• Which @ our rate of 12¢/kWh = $525,000 !
SHARED OPERATIONAL SAVINGS
/GREEN REVOLVING FUND
• Returns to schools a portion of their
utility cost savings from school
behaviors + operational efficiency
• Incentivize schools to eliminate waste
& maximize utility cost reductions
• Projected OUSD electricity savings:
~$400,000 to $850,000 annually
• 5 years = $2 - $4 million by 2019!
SHARED OPERATIONAL SAVINGS
/GREEN REVOLVING FUND
• Self-funding mechanism for
sustainability-related projects such as
energy efficiency by tracking ROI
• Successful model widely used in
higher education
• Smart Leveraging of Prop.39 funds to
seed our SOS-GRF program without
General Fund support
SOS-GRF PROGRAM BENEFITS
• Maximizes energy savings
• Addresses urgency of RISING COSTS
• Best leverages 5-yr. Prop. 39 funding
And operational efficiency
• Develops student leadership,
environmental education & green
career opportunities
• Creates sustainable endowment for
OUSD sustainability, not PG&E
WHY SUPPORT OUSD SOS/GRF ?
• REDUCES Gen. Fund operating costs
• INCREASES funding to school sites
• Leverages P39 & operational efficiency
• Enhances student educational &
career opportunities
• Lasting endowment for OUSD
sustainability
• Shifts budget from utilities to OUSD
QUESTIONS?
Timothy White
Oakland Unified School District
(510) 535-7087
[email protected]
Green Ribbon
Schools
Tova Corman
Long Beach Unified School
District
Green Ribbon Schools
› 2012 Longfellow Elementary
› 2013 Hughes Middle School
› 2014 Lowell Elementary
› 2014 Twain Elementary
Goal
› Reduce environmental impact and cost
› Improve health and wellness of students
and staff
› Provide environmental education
› Incorporate STEM
› Nurture civic skills and green career
pathways
Example: Twain Elementary
› Goals and Focus:
–
–
–
–
Energy (water, gas, electric)
Waste handling and recycling
Teaching/edible gardens
Health and safety
Uniqueness of LBUSD
› One of the best energy conservation
programs in the State
› Best record in the State for Energy Star
approvals, average district score of over
98
› Teaching/edible gardens
› Active recycling (student involvement)
› Reclaimed water/electronic irrigation
› Student engagement
› Energy efficient lighting
Questions?
Tova Corman
Long Beach Unified School District
(562)997-8000
[email protected]
QZAB Stem Academies
Getting to the Core
IDEA
Superior Standards
Capital
Successful Students
Development of Science,
Technology, Engineering, and
Mathematic Academies
Getting to the Core
› Utilize Qualified Zone Academy Bonds
(QZAB) to finance academies
› Use electricity savings and California Solar
Initiative incentives – repay the debt
› Prepare students for college and careers in
STEM-related fields
Superior Standards
Capital
Successful Students
Repayment Plan
› No negative impact to the General Fund
› Tactics:
Getting to the Core
– Restricted account
› Deposit California Solar Initiative (“CSI”) rebates to be
received in fiscal years 2013-14 through 2017-18 to
create coverage for projected cash flow shortfall
› Set aside CSI rebates and/or energy savings
generated by energy cost avoidance in an amount
sufficient to pay annual debt service on the Obligations
− Conservative assumptions in project cash flow
analysis
− Performance guarantee
− Provisions that protect the District if Solar
providers go bankrupt
Superior Standards
Capital
Successful Students
QZAB Stem Academies
Getting to the Core
PROCESS
Superior Standards
Capital
Successful Students
Phase II Solar Process
› Development of Request for
Qualification/Proposal (RFQ/P)
Getting to the Core
› Established four teams
–
–
–
–
District Team
Community Team (Solar Committee)
Design Team
Education Team
Superior Standards
Capital
Successful Students
Getting to the Core
QZAB STEM Academies
SELECTION OF
SCHOOL SITES
Superior Standards
Capital
Successful Students
Getting to the Core
Academic Pathways Map
Key:
Solar facilities and
QZAB Academy
Academic pathway
K-8 configuration
SAUSD boundary
Superior Standards
Clear Focus on
Learning
Successful Students
QZAB STEM Academies
Getting to the Core
FINANCING
Superior Standards
Capital
Successful Students
Getting to the Core
Financing Structure
Superior Standards
Capital
Successful Students
Getting to the Core
Projected Cash Flow and
NPV Benefit
Superior Standards
Capital
Successful Students
Aesthetics
Getting to the Core
AESTHETICS
Superior Standards
Capital
Successful Students
Getting to the Core
Santa Ana High
Superior Standards
Capital
Successful Students
Getting to the Core
MacArthur Intermediate
Superior Standards
Capital
Successful Students
Getting to the Core
Heninger Elementary
Superior Standards
Capital
Successful Students
Getting to the Core
QZAB STEM Academies
INSTRUCTIONAL
DELIVERY
Superior Standards
Capital
Successful Students
Getting to the Core
Instructional Delivery
Superior Standards
Capital
Successful Students
College and Career Ready
› Rigorous curriculum and instruction
Getting to the Core
› System responsiveness to changing
economic and workplace demands
› Skilled faculty with ongoing professional
development
› Evaluation, accountability, and continuous
program improvement
Superior Standards
Capital
Successful Students
Getting to the Core
21st Century Skills
Superior Standards
Capital
Successful Students
Getting to the Core
Common Core
Superior Standards
Capital
Successful Students
Getting to the Core
Digital, Media and
Technology Literacy
Superior Standards
Capital
Successful Students
Getting to the Core
Implementation
Superior Standards
Capital
Successful Students
Getting to the Core
Superior Standards
Capital
Successful Students
SunPower Solar Academy
Worked Based Learning
› 5 day solar academy (hosted at Century
High School)
Getting to the Core
› Instructor and Student Training
– History on alternative energy
– Solar Energy Foundations
– Teams Developed Consumer Installations
– Solar Presentation Competition
› Developed Solar Installation
› 30 Students (Century, Santa Ana, Valley)
Sponsored by
› $200.00 stipend
Superior Standards
Capital
Successful Students
Superior Standards
Capital
Successful Students
Education Pays!
C A R E E R A R E A S & IN D U S T R Y S E C T O R S
B u s in e s s & M a rk e tin g : F in a n c e & B u s in e s s ; In fo rm a tio n T e c h n o lo g y ; M a rk e tin g , S a le s & S e rv ic e
H e a lth & H u m a n S e rv ic e s : H e a lth S c ie n c e & M e d ic a l T e c h n o lo g y ; P u b lic S e rv ic e s
H o m e E c o n o m ic s C a re e rs & T e c h n o lo g y : H o s p ita lity & T o u ris m ; E d u c a tio n , C h ild D e v e lo p m e n t
In d u s tria l & T e c h n o lo g y : B u ild in g T ra d e s & C o n s tru c tio n ; E n e rg y & U tilitie s ; T ra n s p o rta tio n ;
E n g in e e rin g & D e s ig n ; M a n u fa c tu rin g & P ro d u c t
A rts , M e d ia , & E n te rta in m e n t
Getting to the Core
Skills
+Experience
+Certification
+Additional education
= Higher earnings
H ig h S ch o o l G rad u a te
$626
A cco u n tin g C le rk
C h ie f E x e cu tiv e O ffice r
A s s o cia te o f A rts
$767
F in a n cia l A d v iso r T rain e e
C e rtif ica te P ro g ram
$712
A cco u n tin g S p e cia list
M ark e tin g M a n a g e r
* N e tw o rk S y s te m A s s is ta n t
M ark e tin g S p e cia list
C o m p u te r S u p p o rt S p e cia lis t
C o m p u te r R e p a ir
*M e d ica l A s s ista n t
*D e n ta l H y g ie n ist
*D e n ta l A s s ista n t
*P h y sica l T h e rap ist A id e
T e a c h e r 's A i d e
*RD A an d /o r C D A
*P h y s ica l T h e rap ist A sst.
R e g i s te r e d D e n ta l A s s i s ta n t
P re s ch o o l T e a ch e r
*P h y sica l T h e rap ist A id e
S p e cia l E d u ca tio n A id e
*A th le tic T rain e r
T e a ch e r
S o u s / E x e cu tiv e C h e f
He ad Cook/Che f
E n v iro n m e n ta l E n g in e e rin g
T e ch n icia n
S e rv i c e In s ta l l e r
Lin e C o o k
C N C O p e rato r
M a ch in ist
D r a f te r/ D e s ig n e r
S o u n d En gin e e r T e ch n icia n
P ro d u ctio n A s s is ta n t
-D e sk to p P u b lis h e r
H o s p ita lity M a n a g e m e n t
Le C o rd o n B le u C h e f
S o l a r In s ta l l e r
Ju n io r D r a fte r
G e n e ra l M a n a g e r
M e e tin g , C o n v e n tio n a n d
Ev e n t P lan n e r
H o te l, M o te l a n d R e s o rt
C le rk
V id e o P ro d u ctio n A s s is ta n t
Superior Standards
S e t D e co rato r
* O ccu p a tio n s w ith f a s te s t g ro w t h
* N e tw o rk a n d C o m p u te r
S y ste m s A d m in istrato r
R e g is te re d N u rs e - B S
*P h y s icia n A s s ista n t+
D o cto r+
D e n tist+
R e g is te re d N u rs e - A D
* ( C e rtif ie d ) C M A / C N A
C u s to m e r S e rv ice
R e p re s e n ta tiv e
B a c h e l o r 's D e g r e e
$1038 +
A cco u n ta n t (C P A )
M e ch a n ica l E n g in e e rin g
T e ch n icia n
In d u s tri a l E n g i n e e ri n g
T e ch n icia n
A u d io an d V id e o
Eq u ip m e n t T e ch n icia n
M u ltim e d ia P ro d u ctio n
A s s ista n t
S ta g e h a n d
S o u rce : B u re a u o f La b o r S ta tis tics , 2010 C u rre n t P o p u la tio n S u rv e y
E n v iro n m e n ta l E n g in e e r
M e ch a n ica l En g in e e r
In d u s tri a l D e s i g n e r
T e ch n ica l D ire cto r/ M a n a g e r
G rap h ic D e sign e r
A rt D ire cto r
Successful Students
S ta g e P ro d u ctio n
S e t D e sign e r
M anage r
+ E d u c a t i o n b e y o n d B a c h e l o r 's r e q u i r e d
Getting to the Core
Opportunities!
We need to prepare all students equally well
for the full array of opportunities that await
them after high school. Whatever they
choose, high school graduates should be
equipped with the knowledge and skills that
will make them college and career ready.
Superior Standards
Capital
Successful Students
New Markets Tax Credit (“NMTC”)
Financing for Emeryville Center of
Community Living
NMTC Program Background
• Authorized under the Community Renewal and
Tax Relief Act of 2000
• Created to spur new investment into businesses
and real estate projects that provide economic
and social benefits to low- income communities
• Since Inception, Community Development
Financial Institution (“CDFI”) Fund has made 749
NMTC awards allocating $36.5 billion in tax credit
authority
56
Benefits of NMTC Financing
• Finances a variety of asset types and businesses
including non-profit corporations which lease school
facilities to school districts (used a lot for charter
schools)
• Finances approximately 20%-25% of total project
budget with loan forgiveness
• Provides below-market rate financing in the absence of
traditional sources of capital
• $3.5 Billion of NMTC allocation available nationwide in
2014
57
Qualifying for NMTC Investment
•
Is the project/business located in a low-income community or does it
serve a low-income population?
Census tract in which poverty rate exceeds 20% of households or the median
income is below 80% of the greater of statewide or metro area median
income; or school facility in which at least 40% of students receive subsidized
lunches
•
•
•
•
Does the project/business have strong community and economic benefits
such as providing jobs or critical public services?
Are the other funding sources for the project (e.g., 75%-80%) secured?
Is the NMTC financing necessary for the project to attain economic
feasibility?
Is the project/business commencing construction or spending capital
within the next 12 months?
58
Qualified Census Tracts in the
Emery Unified School District
59
Emeryville Center of Community Living
• Emery USD needs to build a $20 MM component of ECCL
that will provide new or expanded educational, recreational,
health and/or library facilities
• ECCL is located within an “Eligible” Census Tract that will be
serving a low-income community and a student body with
more than 40% of students receiving subsidized lunches
• Emery USD has $15.0 Million in funding available for the $20
million ECCL component
• Emery USD needs $4.5 Million to complete project financing,
but doesn’t have revenues to repay this funding
• ECCL component will begin construction within the next 12
months
60
Basic Investment Mechanics
• EUSD creates non-profit organization that will own or lease
ECCL component
• Non-profit organization applies to a Community
Development Entity (“CDE”) for a $20 Million NMTC
Allocation
• CDE selects ECCL component for funding
• CDE Sells $7.8 Million in NMTCs (39% of NMTC Allocation) to
Institutional Investor, who pays $6.0 Million for NMTCs and
takes $7.8 Million in tax credits over 7-year period
• CDE “lends” net $4.5 Million to EUSD non-profit with 1%
interest rate and loan forgiveness after 7 years
61
This presentation was originally
prepared by David Taussig &
Associates, Inc. for the C.A.S.H.
Fall Conference held in Newport
Beach, California in October 2014.
Questions?
Joe Dixon
Getting to the Core
Santa Ana Unified School District
(714) 480-5356
[email protected]
Superior Standards
Successful Students

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