1. Starting Solar Projects the Right Way Benchmarking Your District's Energy & Water Use Mark Jewell, EEFG, Inc., San Francisco, CA Using Solar Master Plans to Assure Success Tom Kelly, KyotoUSA, Berkeley, CA School Energy Coalition March 13, 2012

2. Objectives of the Webinar  To introduce the Solar Master Plan and its components to the School Energy Coalition community.  To describe a process for engaging school districts in the planning, financing, and procurement of solar PV systems and for optimizing their value to a school district’s General Fund. Friday, August 14, 20152

3. Presentation Overview 1.Background / purpose of the Solar Master Plan 2.Aerial assessments of selected PV sites 3.Procurement for district-owned PV systems 4.Financing 5.Q & A Friday, August 14, 20153

4. 4 1.Background and Purpose of the Solar Master Plan

5. Friday, August 14, 20155 What drives the California solar market? 1)Renewal Portfolio Standard (RPS) – 33% by 2020 2)California Solar Initiative (CSI) – rebates 3)Governor Brown’s push for 12,000 MW of Distributed Generation by 2020 4)Global Warming Solutions Act (AB 32) 5)Increasing electricity costs 6)Reduced solar panel and installation costs 7)Community Choice energy

6. Summary of California Schools Schools by Type State of California, 2010-11 Number of SchoolsEnrollment Elementary5,7593,049,423 Middle1,2661,025,743 Junior High3925,071 High School1,2901,808,490 K-12181102,136 Alternative24664,045 Special Education13324,125 Continuation49769,507 County Community7518,381 TOTAL9,4866,186,921 Friday, August 14, 2015

7. 7 Hercules Middle/High School Culver City Schools

8. Berkeley Unified: Washington Elementary  2007 annual electricity cost: $24,762  2008 annual electricity cost: $23,341 Friday, August 14, 20158 BSE (Before Solar Era) SE (Solar Era)  2009 annual electricity cost: $3,247  2010 annual electricity cost: $237

9. Friday, August 14, 2015 © 2009 SEIA 9

10. Friday, August 14, 2015 10 In partnership with: Development of the Solar Master Plan

11. Chapters in the Solar Master Plan 1) Benchmarking with ENERGY STAR’s Portfolio Manager – How much energy are we using and what does it cost us? 2) Selecting and Prioritizing Renewable Energy Sites – Which district sites are the best candidates for solar? 3) Structural Evaluations – Can a roof support the gravitational, wind, and seismic loads of a PV system? 4) Aerial Assessments of Selected Sites – How much PV is possible? How much electricity will it generate? - What will it cost? What are the savings? 5) Solar Voltaic Technology Overview – What are the best equipment options available? 11 Friday, August 14, 2015

12. Chapters in the Solar Master Plan (cont.) 6) Design-Build Contract for PV System Installation – How to procure a PV system that provides the best possible value? 7) Financing Options for Solar Installations on California Schools – How to deliver the most cost-effective solution for the District? - Can we achieve a “revenue positive” outcome? 8) Choosing the Best Electricity Rates – Which utility tariff/rate makes sense for the proposed PV project? 9) Going Solar at San Ramon Valley Unified School District (case study) – One school district’s transition to renewable energy and the student who started it all. 12 Friday, August 14, 2015

13. All school data provided by Ed-Data (Education Data Partnership) http://www.ed-data.k12.ca.us/Pages/Home.aspxhttp://www.ed-data.k12.ca.us/Pages/Home.aspx Schools and Students  Oakland, West Contra Costa and Berkeley school districts combined: –200 schools –85,500 students –11.9 million square feet of building space 13 Friday, August 14, 2015

14. 14 Electricity Consumption and Cost (for the 3 assessed school districts)  Number of schools and facilities assessed: 134  Annual electricity consumption: 44,863,183 kWh  Annual electricity cost: $7,178,712

15. Friday, August 14, 2015 15 PV Capacity, kWh Generation, Benefits (for the 3 assessed school districts) Full Scale75% of Load PV Capacity (kWp)38,05020,366 Annual electricity production (kWh) 51,238,65027,458,898 Value of avoided electricity ($) $9,818,855$5,277,590 Avoided greenhouse gas emissions annually 6,853 MT Renewable energy credits generated annually 26,981

16. Friday, August 14, 2015 16 2.Benchmarking a District’s Energy Use and Cost

17. Benchmarking with ENERGY STAR’s Portfolio Manager 17

18. Benchmarking with ENERGY STAR’s Portfolio Manager 18

19. Friday, August 14, 2015 19 3. Aerial Assessments of Selected PV Sites

20. Aerial Assessments of Selected Sites 20

21. Aerial Assessments of Selected Sites 21

22. Friday, August 14, 2015 22 Aerial Assessments of Selected Sites Phase II

23. Friday, August 14, 2015 23 4.Procurement for District-Owned PV Systems

24. Request for Proposals – why do it? Friday, August 14, 2015 24

25. What Motivates Districts to Procure PV Systems?  Almost always, to reduce General Fund obligations -- so strong cost effectiveness is key to a successful project.  Environmental sustainability objectives are often one of the driving forces – but don’t come into play until the economics have been addressed.  Educational benefits.  Peer pressure. Friday, August 14, 201525

26. What holds districts back?  “Great idea, but can’t afford it.” “No new debt!”  Confusion about technology and distrust that savings are real.  Hearing about districts where the project failed to meet expectations.  Lack of understanding of the technology, its economics, and how to go about the procurement process. Don’t know how to: –Identify the appropriate sites –Calculate savings –Ensure good quality systems are procured –Ensure long-term performance Friday, August 14, 201526

27. How these goals and obstacles can be reconciled:  Obtain good baseline information such as what is described in the previous slides and presentation.  When a district doesn’t have sufficient capital resources, secure a good financial advisor to help structure a financing strategy.  Use a competitive process for a design-build solar PV system(s). What to look for in a Consultant:  A person who understands the true benefits of solar,  Who has no attachments to solar vendors or outcomes,  Who has the requisite expertise, knowledge, and who can manage a rigorous competitive procurement process on behalf of the district that is fair to vendors and school district alike. Friday, August 14, 201527

28. Friday, August 14, 201528 5. Financing

29. Friday, August 14, 201529 Financing Options for Solar Installations  Two ways to acquire PV: –District Ownership –Third Party Ownership  The Solar Master Plan is intended to prepare a district to seek voter approval for a General Obligation (G.O.) bond.  Two types of G.O. bonds in California: –55% voter approval (Proposition 39) –2/3rd voter approval

30. Friday, August 14, 201530 Financing Options for Solar Installations 1.Cash on hand 2.Tax Exempt Lease Financing 3.New Construction Grants (50/50 split with State) 4.Modernization Grants (60/40 split with State) 5.California Energy Commission loans 6.High Performance Incentive program - through Collaborative for High Performance Schools 7.Qualified Tax Credit Bonds – e.g. QZABs 8.Rebates 9.Grants (rarely) 10.Any combination of the above In addition to General Obligation bonds:

31. Friday, August 14, 201531 Current financing possibilities for Districts that are prepared to respond: Qualified Zone Academy Bonds -$209M for California Deadline: open Qualified Energy Conservation Bonds -$22.3M now available in CA Deadline: May 18, 2012 California Energy Commission -Energy Efficiency and Energy Generation Projects loans @ 3% interest – up to $3M Deadline: open

32. Friday, August 14, 201532 District Ownership: Direct Benefits  All electricity savings accrue to General Fund  Rebates, if any, go to school district  Retain Renewable Energy Credits (RECs)  O&M can be included in transaction  Performance guarantee can be included in transaction  Education component can be included in transaction  Other benefits: –High profile / high visibility systems generate a “buzz” –Inspires students and schools to expand “green” projects

33. Friday, August 14, 201533 District Ownership: Challenges  Transaction complexity  Staff expertise not a good fit (time / knowledge)  Frequently changing incentives  Budget shortfall / uncertainty  No bonding authority  Property value declines limit bonding capacity

34. Friday, August 14, 201534 Success Stories, So Far!  Berkeley USD used its SMP as the basis for asking voters for $7M for solar as part of a construction bond in 2010.  San Ramon Valley USD received $25M in Qualified School Construction Bonds that it used to build 3.3 MW of new solar. The district is considering a new bond for 2012 which will include $$ for more solar.  West Contra Costa USD is installing another 700 kW.  Oakland USD has applied for CSI rebates for 17 sites = > 5 MW of new solar. Considering a bond for 2012.

35. Friday, August 14, 201535 Tom Kelly KyotoUSA Tkelly@kyotousa.org 800 Hearst Ave. Berkeley, CA 94710 (510) 704-8626 (work) (510) 684-6484 (cell) www.kyotousa.org www.heliosproject.org Thanks! You’ve been a great audience!

36. Friday, August 14, 201536 6. Q & A