1. LOGICS: Local Governments Implementing Conservation and Sustainability
Operating Local Governments As Energy Costs Rise

2. LOGICS TEAM The Environmental Protection Agency
Delaware Valley Green Building Council
Delaware Valley Regional Planning Commission
Department of Environmental Protection
Sustainable Development Fund
The Environmental Finance Center
The Pennsylvania Environmental Council
Penn Future
Introduce speakers/people in the room, organizations

3. WHY LOCAL MUNICIPALITIES?
Municipalities and townships have the responsibility of fiscal accountability to their taxpayers
An energy efficient township provides numerous benefits and better service to its constituents
Most municipalities can expect to save 30% or more on energy operating costs by participating in simple efficiency opportunities
Shorten bullets to include words on 4.

4. WHY LOCAL MUNICIPALITIES?
Many overlook the connection between inefficient energy use and cost.
Efficient energy use is no longer the environmentally responsible choice; it has become the economically responsible choice.
9.6 billion square ft, accounts for national Local Government footprint
PIE CHART HERE

5. WHY NOW? Electricity Natural Gas Gasoline
Retail Rate Caps expiring statewide, PECO expires 12/31/10
Rate caps have shielded customers from the impacts of rising fuel prices and market-based prices
Natural Gas
NYMEX price/MMBtu 2006: $ : $6.53 pre 2000: <$3.00
Gasoline
Retail price for regular gasoline up 63 cents/gal over a two years ago
Other commodities, including coal, have also experienced rising prices

6. PROJECTED WHOLESALE PRICES
The first slide shows this is a sample of the electric wholesale price projections used by one Pennsylvania Utility to determine stranded costs payments at the time of restructuring.
Actual prices have risen faster and higher than was projected when electricity restructuring was initiated. PJM ascribes 100% of the increase in wholesale prices to increases in fuel costs. Retail market design, specifically, how default service is offered and bid, may also be impacting rising prices across PJM. Due to rate caps in place across most of Pennsylvania, we have not seen those effects yet.
WE SHOULD RE-DO THIS GRAPHIC

7. BENEFITS OF ENERGY MANAGEMENT
Initial Effort (First two years)
5-15% cost savings
Little or no capital expenditure
Long-Term Effort
25% or higher cost savings
Requires management commitment
Annual review
Monitor efficiencies
Track saving
Initial efforts are those things are the easy to do, preventative maintenance type things.
Long term includes upgrades to equipment, lighting change-outs, etc.

8. STEPS TO ENERGY MANAGEMENT
Official Policy
A team or designated staffer
Education of ALL staff
Review of existing facilities and billing
Identification, prioritization and implementation of opportunities
Ensure measurement of implementation
Use savings to fund next projects

9. Official Policy Clearly states energy goals Can include:
Purchasing of equipment
Construction of buildings
Maintenance of buildings
Who is responsible
Fuels purchasing
Electricity purchasing
Alternative energy generation
Policy example from Mont Co MD and others have as hand-out.
Policy = permanency, public commitment

10. Team or Staff Team Option Staff Option
Multi-facility, multi-discipline, multi-department
Two or three key people
Could include EAC, other residents or businesses
Staff Option
One person responsible for all energy
Provides consistency
May be difficult to fund time
The team gives responsibility to multiple people and allows for people to choose or be placed where their strengths allow. May provide opportunity to “out source” for ideas and assistance – businesses or residents may be willing to “volunteer” to do any number of basic but necessary tasks.
With staff- it’s not funding the position, either they already work there or you need to increase the budget. What’s more likely that you’ll assign one person the energy items as an add-on and then they have to juggle their “regular job” with this new assignment. Thus, funding time.

11. Education All staff need to know policy
All staff need to understand how they impact the energy usage
All staff need to be able to explain that to the taxpayers
All staff need to be asked for their input on detailed policies, suggestions for upgrades, etc.

12. Review of Existing Facilities & Billing
Often multiple bills for multiple facilities never meet up
Examination of bills can identify areas for opportunity
Existing facilities review could include basic audit or engineering audit
Own staff
Other resources
Review of existing facilities and billing
Frequently there is no good tracking of all the different bills for the various buildings so it’s often unknown what is really being spent on energy.

13. Opportunities Identification Prioritization Implementation
Through staff interviews/questionnaire
Through audit mentioned above
Generate a report
Prioritization
Low-cost, done in-house, etc.
Implementation
(WE ID SOME RESOURCES HERE)

14. Measurement Ensures that all know what is done
Ensures that all know policy is being followed
Allows for additional future spending based upon successes
Allows for correction of areas where failure occurs
Shows taxpayers fiscal responsibility

15. Funding the Future Good measurement shows proof of value
Proof of value shows responsibility
Responsibility builds trust
Trust then allows for “riskier” efficiencies to be incorporated with their longer paybacks – such as alternative energy generation, newer technology installation, etc.

16. Steps to Energy Management
Create an Official Policy
Team or Staff
Identify your Energy Use / Utility Bill Analysis
Achieving up to 30% Energy Savings
LED lighting for traffic lights and street lamps
Building energy assessments and action plans

17. Where do you start to lower energy use by 30%?
Learn how to read your utility bill
Microsoft Excel Spreadsheet
Record monthly utility bills for all meters
Create charts to provide visual tracking of energy use
Energy Assessment
Efficiency of Equipment
Proper Insulation

18. What do you Track?
CONSUMPTION
DEMAND
COST

19. Municipal Example
Visual of local analysis
Recommended actions

20. Comparison Cost in $$ of Incandescent v. L.E.D. per Traffic Signals
Incandescent L.E.D.Annual Electric FeeAnnual Maintenance FeeAnnualized Capital 5%Installation FeeTotal
Average cost full replacement for 1 intersection (new fixture and lights) =
Average cost to replace just L.E.D. lights =

21. Create and add (Pie Chart)
Annual Energy Cost to Townships for Traffic Signal (or full energy budget) v. other operations costs in the Township
Create and add (Pie Chart)

22. Optimal purchase of L.E.D lights at the least cost
Purchase SourceCriteria for PurchaseTweaking the SystemBest OptionCOSTARNo – Bid requiredCan negotiate for a lower pricePennsylvania State ContractsEnergy Star Bulk Purchasing

23. Model bid specification for L.E. D. light purchase
ftp://ftp.dot.state.tx.us/pub/txdot-info/gsd/pdf/to7057.pdf for model Bid Specs

24. Financing Your Traffic Signal Upgrade to L.E.Ds
Work into current operating budget
Low-interest Bank Loan
Grant Options

25. The Economics of Street Light Replacement (NOT!)
Changing to greater efficient street lamps in PECO service territory DOES NOT YIELD A COST SAVINGS
Reduce the number of fixtures in the area, but not to jeopardize safety
Check on required lighting levels and do not purchase higher capacity
New York State Energy and Research and Development Agency -
Outdoor lighting guide

26. Building Audit resulting in Operating Efficiency
Evaluate decisions based on life-cycle costing –(notes Life-cycle cost analysis (LCCA) is a method for assessing the total cost of facility ownership. It takes into account all costs of acquiring, owning, and disposing of a building or building system. LCCA is especially useful when project alternatives that fulfill the same performance requirements, but differ with respect to initial costs and operating costs, have to be compared in order to select the one that maximizes net savings
Register your facilities with ENERGY STAR Portfolio Manager,

27. THE 30% BOMA TOP “10” ENERGY DIET
Check that equipment is functioning as designed.
Consider your cleaning options (i.e., team cleaning, occupancy sensors, coordination, and day cleaning when the lights are already on).
Encourage occupants to turn off equipment...during off hours, power everything down.
Use high efficiency LED exit signs.
Institute an energy awareness program.
Install monitor power management software.
Change incandescent light bulbs to CFL or HID.
Harvest daylight.
Evaluate after-hours usage.
Adjust ventilation.

28. Building Audit resulting in Operating Efficiency
Evaluate decisions based on life-cycle costing –(notes Life-cycle cost analysis (LCCA) is a method for assessing the total cost of facility ownership. It takes into account all costs of acquiring, owning, and disposing of a building or building system. LCCA is especially useful when project alternatives that fulfill the same performance requirements, but differ with respect to initial costs and operating costs, have to be compared in order to select the one that maximizes net savings
Register your facilities with ENERGY STAR Portfolio Manager