Purchased Utilities and OMP Roundtable UC Budget Conference October 22-23, 2007 Clif Bowen, Moderator

University of California Change in Systemwide Purchased Utilities Costs for State-Eligible Space (SOMP) and Budgeted OMP

University of California Change in Natural Gas and Electricity Consumption and Expenditures between and (with as baseline)

University of California Current 3-Year UC/IOU Partnership $16.5 million in projects 49 projects Of this total, $8 million covered by incentive grants (at $1/therm and $.24/kWh) and $8.6 million financed by UC Yielding: –Avoided 32 million kWh/year –Avoided 1.8 million therms/year 22 MBCx projects included yielding: –Savings of 7.3 million kWh/year –Savings of 940,000 therms/year Of $3.7 million in project costs, $2.7 million was covered by incentive grants. UC contributions totaled $1 million (or 27.2% of total costs) Average payback period: a little over half a year

University of California Policy on Sustainable Practices Clean Energy Standard: “…As with renewable energy projects, the University will develop funding sources and establish a program for financing retrofit projects. The initial goal for energy efficiency projects will be to reduce systemwide growth-adjusted energy consumption by 10 percent or more by 2014 from the year 2000 base consumption level…” (From March 22, 2007 revision of Policy on Sustainable Practices and implementation guidelines.)

University of California Proposed New IOU Partnership Opportunity for significantly increased IOU funding for UC energy projects. IF UC can by June 2008 (March 2008 – preliminary findings): –Produce a Strategic Energy Plan (we’ve set aside $1.8 million from Enron settlement) –Address internal barriers to timely implementation –Identify and commit central matching funding THEN IOUs would be prepared to fund up to $300 million over 6-year period starting in January –UC matching funds of approximately $200 million ($33 million a year) at established partnership rates (currently $.24 per kWh and $1 per therm, with cap of 80% project value) –Partnership consultant estimated a 10% reduction goal in 2014 would equal a reduction of 1300 million kWh, or up to $130 million per year in perpetual energy savings (in current dollars) for UC’s $200 million investment –Potential inclusion of Municipal Utilities (to be negotiated)

University of California State-Eligible Space By Building Type (Small Buildings = < 20,000 gsf) A survey of the 20 largest buildings at four UC campuses suggests that on average COMPLEX buildings use 2.2 times as much energy as BASIC buildings.

University of California Building Construction By Decade (All Buildings in Blue and State-Eligible Buildings in Red) Opportunities for energy retrofits of existing buildings: 58% of UC facilities were constructed before % were built between 1950 and 1975

UCSB Natural Gas, Electricity and Water Consumption Percentage Change Between and (using 1999 as baseline)

UCLA’s Energy Conservation Initiative: Estimated Costs and Energy Savings from Multi-Building HVAC System Upgrade Total Program Cost –Fan Subsystems 185 (in 25 buildings) –Cost per System$90,000 –Total Program Cost$16.7 M Savings and Payback –Project Cost/SF$16.7 M/4,2 M SF $3.93/SF –Current Energy Cost/SF $4.10/SF –Projected Energy Savings25% of $4.10/SF $1.02/SF –Projected Payback$3.93/SF/$1.02SF/YR 3.83 Years