Self-Directed Energy Contracting Saving Your Buildings and Your Money

York ( PA ) Housing Authority’s Experiences  One Agency’s story of pursuing Energy Improvements  How to Partner, Plan, and Persevere  What to consider and what to avoid

Energy Performance Contracts  Authorized by Congress and specified in HUD policy  Energy Policy Act 1992  Permitting private financing of public property improvements for energy and water conservation  PIH (HA) Provides Rate Reduction Incentive (RRI)

The Process  Arriving at the Decision to procure services  Overview: HUD reviews and the approval process (the audit)  Identifying key staff to administer and “own” the project  Procuring consultant services  Working with consultants to review water, gas, and electric bills  Selecting a General Contractor to create a Guaranteed Maximum Price (the hard work with proposing subs)  Working with architects and engineers to document equipment in place  Planning for Commissioning  Re-Procuring Gas and Electricity

The Process  Working with both teams to define scope of audit with the preferred replacement equipment  Submittal of the investment-grade audit to HUD energy office for review and approval  Defining the financial scope and selecting the bank  Completing Section 30 Property Compliance (HUD)  Procuring the contractor for construction  Re-Procuring utilities (bids or partnering) Rate Reduction Incentives

Potential Challenges  Finding a general contractor capable of working within financing limitations and improvement scope  Ensuring adequate professional architectural and engineering support throughout construction process  Having adequate procedures in place for allowances and change orders

Potential Challenges  Creating incentives for general contractor to perform on time and on budget  Selecting the best “fitting” material solutions to the properties  The potential pitfalls of change orders and qualities of replacement equipment.

Payoffs  Significant capital improvements  Significant energy savings  Improved tenant comforts  Potential to share some resulting savings with federal government  Potential to attain utility rebates and other incentives  Make apartments more climate-comfortable

Payoffs  Potential to build new professional partnerships  Potential to attract new bidders in future  Potential to afford state-of-the-art technologies in retrofits  Geothermal, solar-thermal and photovoltaic, co-generation Added savings through documented unit price decreases

Alternatives  Work directly with experienced (BIG or little) energy- saving company  Make energy-saving property improvements incrementally through capital funding  Pursue rebate qualified improvements only with alternative funding (lines of credit)  Pursue HUD incentive programs like RAD  Work with utilities directly (localized cash incentive programs)  Pursue other federal and state grant programs

Project Examples  The Fairmont  Broad Park Manor  Jefferson Community Center  Village Court

The Fairmont  75 One Bedroom Apartments  Located in New Cumberland  Note solar collectors on south facade

Broad Park Manor – York City  281 efficiency and 1 bedroom apartments  Water restrictors, led interior and exterior replacements  Elimination of original trash incinerators

Jefferson Community Center  The Hub of our community services  Heating and lighting upgrades

Village Court