1. Future Plans

2. Overview Biomass Update Climate Commitment Update ECM ESPC Dashboard Deferred Maintenance Supply Side Conservation

3. Biomass Update August 9 – received bids for test fuel Carolina Wood Pellets selected 520 tons purchased August 31-September 1 – 20 tons to be delivered Plan to burn the week after receipt Demonstrate suitability of feeding the fuel through the existing coal handling and fuel feeding systems Boiler maintenance outage Document interior condition Install test ports Install test ports and a fire detection/supression system in ductwork going to the baghouse Optimize combustion fuel and air to optimize efficiency

4. Biomass Update Early November – additional 500 tons delivered Test burn, expected to take 2 weeks Vary fuel flow percentage of biomass Collect extensive test data at various load points on the boiler Measure efficiency and performance Understand boiler operating characteristics when cofiring Measure stack gas emissions Spring 2011 – Potential torrified wood test, dependent upon availability

5. Climate Commitment Update 120,000 metric ton reduction, back to 2003 level From 30.6 to 24.6 total emissions per square foot

6. ECM Success 09-10 Funds spent = $212,222 Annualized savings = $5-6 million Equivalent to $68 million investment by ESCO

7. ECM Plans $200,000 annual budget Remaining T12 lighting, survey and preliminary design for Kenan Center Ductwork modifications in Global Education and Chapman Matching portion of $865,843 in ARRA projects for lighting and HVAC $100,000 supplemental (potential) Steam trap survey and replacement HVAC controls Wilson Library Variable speed drives Phillips and Beard Preliminary design, heat recovery, MBRB

8. State Utility Appropriation ($) “ Baseline ” UNC Debt Obligation Construction Loan to ESPC 2 - year average utility costs 2 - year average utility costs Contract Years New “Baseline” ESCO Guarantee Payment (if needed) 0-2 12 (typical) Project Savings (Project Value) Project Savings (Project Value) ESPC

9. Process (Two Years) Measurement and Verification (Life of Project) Annual certified audits of savings UNC obligated for proper operation ESCO refunds savings shortfall Construction (12 months) Fast paced to begin realized savings and make first bond payment Final Contract Termination possible if owner pays ESCO costs ($200-500k) Investment Grade Audit (6-8 months) Detailed analysis of all measuresSavings within 10% of proposalCost limited to 150% of proposal ESCO Selection (4 months) Bidders provide detailed cost proposalsBest overall value selection Application to SEO Buildings defined Costs estimated

10. ESPC Preliminary Building Screening Campus Appropriated (130) > $2.50/ft 2 (55) > $200,000 Utility Cost (35) Stable Program (26 +/-)

11. ESPC 26 Candidate Buildings 2,747,588 square feet $14,156572 utility costs (variable only) $37,641,979 limit on performance contract (12 years, 30%) 20 of the Candidate Buildings were in the ECM Program 2, 213,810 square feet $11,808,301 utility costs (variable only) ECM project savings averaged 23% (range = 0% to 59%) While ESPC offers little near-term benefit and we have other opportunities for low cost improvements that are outperforming ESPC investments, we have underlying capital needs could be addressed by ESPC

12. ESPC Plan 10-11 Fall 2010 – invite ESCOs to quantify remaining savings post-ECM Winter 2010 – Finalize candidate buildings +/- 5 buildings in initial RFP $5 -$15 million contract value Initial focus ECM tuned buildings within 1 year of new baseline data Building automation system control upgrades Laboratory ventilation optimization Dedicated outdoor air systems Heat recovery systems

13. Dashboard Decided to reject all bids – too expensive Agreement with Computer Science to write the system in conjunction with current Energy Services applications programmers Supervised by Prof. Diane Pozefsky Master’s students Schedule Prototype by end of Fall 2010 Beta version by end of Spring 2011 System live by Fall 2011

14. Deferred Maintenance $645 million backlog $230 million is HVAC (2nd largest category is $57 million) HVAC replacement normally must be completed as part of a comprehensive renovation, has been low priority because it requires relocation of building occupants Divided workload into three groups Demolish Comprehensive renovation Component replacement

15. Deferred Maintenance Developing funding plan Working on identifying new resources Projects in annual R&R allocation Phillips Hall Lineberger Cancer Center Need More R&R funding overall at state level Different allocation methodology at the state level Need State of North Carolina to provide deferred maintenance capital infusion - $250 million range (received $515 in 2000 Higher Education Bond funding)

16. Supply Side Initiatives Total avoided cost to date = $1.3 million, to date in 10-11 avoided costs = $282,460 Chilled Water Systems

17. Supply Side Initiatives Chilled Water Systems Increase production efficiencies 33% efficiency increase at Cobb Chiller Plant Installing a plate and frame heat exchanger at the Tomkins Center in 10-11 Rebuilding North Chiller Plant, will be most the efficient plant at the end of project Goal to increase chiller efficiencies by more than 1/3 District energy plant in the Imaging Research Building using heat recovery chillers Recover heat from chilled water system Use to produce hot water for building use

18. Supply Side Initiatives Cogeneration Systems 7% reduction in thermal losses in steam distribution system Reduced average condensing rate Replaced VFDs on boilers Optimizing combustion of fluidized bed boiler Reducing auxiliary energy usage by 10% Electric Distribution Systems Landfill gas project under construction in 2011 to supply electricity to Carolina North

19. Questions?