1. Energy Savings: Steps for Predictable Payback Kevin Fiene: Interstate 35 CSD Jason Prochaska: CEO, Sitler’s LED Supplies Jon Muller: Partner, ISFIS

2. Overview General Guidelines to Assess Projects LED Lighting Deep Dive Lessons Learned Renewal Energy Legislative Update

3. General Guidance For Energy Efficiency Retrofits Consider Conditional and Combined Paybacks Lighting Controls HVAC Behavior – Low hanging fruit Renewable Energy If working with Design consultant, ask for marginal benefit of each component. Use a standard metric to measure savings (such as Internal Rate of Return).

4. General Guidance For Energy Efficiency Retrofits Renewable Energy Projects are the last step. Don’t make it the first step. The upfront capital costs go down markedly if you first become efficient. The savings (Internal Rate of Return) actually increase for renewable energy projects if you reduce usage. Thus: You spend less and have a higher return on the amount you invest.

5. General Guidance For Energy Efficiency Retrofits Free Resources Available to Help: ISFIS can help run calcs, such as IRR Vendors will run initial estimates, usually for free. Department of Energy has a great guide for implementing energy efficiency programs. http://www.nrel.gov/docs/fy14osti/60913.pdf

6. LED Deep Dive *Adapted from USDOE data assuming non-electric heat

7. LED: Educational Benefits Human Centric Lighting- http://humancentriclighting.com/wp- content/uploads/2012/07/Stan-Article-SSL1.pdfhttp://humancentriclighting.com/wp- content/uploads/2012/07/Stan-Article-SSL1.pdf LED lighting increases productivity and learning when compared to fluorescent or incandescent bulbs Increased lighting levels – increase reading comprehension (yellow vs white light) Results show students testing under a combination of blue and white LED light decreased errors by 33% Eighty-four 3rd grade children in four different classrooms at Saltillo elementary School, near tupelo, were randomly assigned to two different lighting settings throughout the year. Students exposed to lighting with higher light intensity and light temperature levels had, by the end of the year, increases in performance that were 33% higher than the increases in performance of the control group. “light settings vary greatly in classrooms, and the results of this study raise important questions on how lighting is selected for optimizing teaching and learning,” says Michael Mott with the university of Mississippi.

8. Classroom control – can dimming increase learning? Utilizing a dimming system in classrooms with younger students or those with learning disabilities can increase teaching times. Remote control the classroom – Benefits? Occupancy sensing – Where? How? Why?

9. Not All LED’s Created Equal Easy Swap and Go – Just replace your existing tubes Easy, but not as efficient. Ballasts retained. Payback reduced. Use Existing Fixtures, rewire Slightly higher installation cost. More efficient, maximizes savings, minimizes maintenance costs. New Fixtures, such as LED Panels Slightly higher initial cost Improved lighting quality, almost like sunlights Verify Lumens Per Watt: Some LEDs don’t achieve Nameplate wattage.

10. Energy Savings Current fluorescent lights run on 32-40 Watts on average LED replacements for fluorescents run on 12-18 Watts Directional lighting increases lighting levels and efficiency

11. Maintenance Reduction Emergency lighting ballast and battery replacement Ballast removal = elimination of #1 failure point LED’s perform extremely well in cold weather

12. Practical Application – Interstate 35 CSD Project Description: Replaced all fluorescents in our PK-12 building with LED tubes, eliminating ballasts (most common failure point), as well as outside lighting. Called ISFIS, and they referred us to Sitlers, who mapped out the entire project at no cost. We also chose to meet Board policy regarding bidding through the due diligence already conducted by ISFIS in choosing Sitler’s – for us this was a time-saver. Donate removed materials first to local patrons, then to conference schools.

13. Practical Application – Interstate 35 CSD Total Cost: $136,200. Savings: Electricity: $16,700 (first year) Maintenance: $10,600 (ballasts and tubes). Payback: Less than 5 years, and a 17% Internal Rate of Return over 10 years. Doesn’t include staff time.

14. Practical Application – Interstate 35 CSD Recommendations based on experience Require your vendor to process, or even guarantee, your rebates. I-35 rebates covered 36.1% of materials. Make sure you include local providers. They may not know all the aspects of a project, but they may want to bid on all or a part of it. Ask your vendor if they’ll be willing to work with local providers to complete installation, but make sure local providers have capacity to complete the project quickly. Ask your vendor for a project description with an estimated payback period. But make sure you issue the RFP before you get a firm quote (if you’re going out for RFP).

15. Surveillance Camera’s Look Different?

16. Can you find the door?

18. Financing an LED Project PPEL and Sales Tax funds can be used for expenditures for energy conservation No money taken from your General Fund, while your General Fund saves money each month on lower electric bills Possible to roll an LED project into a solar PPA. Essentially, the school leases the bulbs. Generally not recommended, except for the most capital projects strapped schools.

19. Solar Update Federal tax credit extended through 2021. State tax credit extended beyond that, in the event Federal Credit further extended. Fund capped at $2.5 million, then increasing to $4.1 by 2022. Things left to fix: Standard PPA’s will have to be tweaked, because schools cannot lease their rooftops for more than 5 years. Property tax treatment of panels remains unclear. Still seeking fund source flexibility, so can be paid from mixture of general funds and capital projects funds.

20. Illustration of Order of Investment Compare going solar to first implement LEDs High school with 640,000 KWH/year Solar cost with standard lighting: $890,000 Solar cost after LED retrofit: $788,000 Cost of Retrofit: $45,000

21. Illustration of Order of Investment With Standard Lighting Savings: $118,000/year IRR: 7.3% With LED Retrofit Savings: $118,000/year IRR: 9.3%

22. Illustration of Order of Investment

23. Contacts: Jon Muller jon@iowaschoolfinance.com 515-251-5970 Option 7 Jason Prochaska jason@sitlersupplies.com 319-461-6445 Kevin Fiene kfiene@i-35.k12.ia.us 641-765-4818