What s Next for Proposition 39: Beyond the Fifth Year! Anna Ferrera SEC Executive Director

Transcription

1 What s Next for Proposition 39: Beyond the Fifth Year! Anna Ferrera SEC Executive Director

2 SEC Advocates for Prop 39 Budget Funding for School Energy Projects Focused on K Prop : Remainder TBD K-12 ADA Grants $381 M $279 M $313.4M $398.8M $376.2M? Community Colleges $47 M $37.5 M $39.6 M $49.3M $46.5M n/a

3 SUCCESS! State Budget Agreement Extends Program Budget Advocacy: In June, the Governor signed the State Budget Agreement removing the sunset on current program; Funding in future years beyond 2018 can be made but will be subject to annual state budget process and approval; Extending the final encumbrance date to June 30, 2019.

4 SUCCESS! State Budget Action Extends Program Focuses Prop 39 Remainder on LEAs Budget Trailer Bill Language (TBL) Was approved in July 2017 that took language from state legislation Pro Tem de León s SB 518 to address any unexpended Prop 39 funding remaining after encumbrance deadline for K-12 schools use: $75 million for Clean Energy Buses $100 million for ECAA low- and no-interest loans (CEC program) Remainder for K-12 energy projects per application in tier groups

5 5 th YEAR REMINDERS: Prop NO Sole Source Process, Keep Audits and Accountability in Mind Last date to submit an EEP is **Feb 26, 2018** - Non-funding related amendments to EEP may still be made after this date. State Controller Says: Energy Savings must be identified in contracts per 26206(d) No sole source contracting. Keep reporting in mind throughout when expending Prop 39 funds. Resources Code 26235(c) states:...lea shall not use a sole source process to award [Prop 39] funds... Discuss tracking savings and accountability with staff or consultant for annual and final reporting AND future projects that could be done with program extension share with SEC!

6 5 th YEAR REMINDERS: Prop NO Sole Source Process, Keep Audits and Accountability in Mind (Cont.) Review and make use of the CEC s online annual and final reporting tools. Become familiar with these tools. Projects must still be completed by June 30, Final project completion report: Due 12 months after the project completion date indicated in the annual progress report. Must be submitted to CEC no later than 3 months after an online submittal portal is made available. Watch for SEC Alerts: Be first to know when state actions are being contemplated or being taken on energy and water

7 Projects are Advancing!

8 Other School Energy & Water Bills SB 518 (de León) SEC s #1 priority. Language was placed in Budget Trailer Bill Language: Remaining program funds will go to LEAs, rather than be swept, as specified. Became effective July 30, AB 797 (Irwin) Extends by two years, the California Solar Initiative (CSI) Thermal Program of rebates to customers of IOUs to August 1, Signed by Governor as Chapter 473. AB 1082 (Burke) EV Infrastructure Program on School Sites SEC Supports after working with author on amendments. Program to be developed by the CPUC and once approved will be available to LEAs by application. Signed by Governor as Chapter 637. SB 100 (de León) California to get to 100% from renewable sources by December 31, Held in Committee - Author says they will try again next year. Two-year bill. WATER - SB 5 (de León) $4 Billion Parks and Water Bond CA Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access For All Act of Authorizes Bond to go to voters Drinking & Recycled water funding included. Signed by Governor as Chapter 852.

9 Outlook for 2018: Energy and Climate Issues, Prop 39 Remainder and School Energy Program Funding Going Forward! SEC Major Advocacy and Education effort in State Legislature to showcase successful K-12 projects and its impact on state and local energy use, utility bill savings and lowering GhG emissions. Get Involved with SEC! Implementation and Guidelines input on Prop 39 remainder program to ensure it works for districts. Bus Program, Loans and School Energy Installation funding. Process TBD early Work with CA School Organizations to Advocate for the Clean Energy Jobs Creation Act program and technical assistance in future state budgets beyond Regionalization - Proposal to merge CA s transmission grid with other states in the West did not advance this year. 2018? Water Conservation and Efficiency for CA Schools. Will Conservation Regulations Continue? Rainfall and snowmelt.

10 Important Dates to Remember January 10, 2018 Governor s State Budget Proposal Remainder funds will likely be discussed February 26, 2018 Final Deadline for EEPs to the CEC; and SEC Membership Meeting at CASH Annual Conference March 1, 2018 Prop Remainder will be Calculated by CEC and sent to Legislature March 20-21, 2018 SEC Spring Legislative Summit in Sacramento May 2018 State Budget May Revision Early November 2018 Gubernatorial Election Will the new Governor continue the Brown Climate Agenda? What role will K-14 schools play in this effort? Funding is needed for school construction for New Energy Efficiency and Green Standards.

11 Contact Information Anna Ferrera (916) Executive Director of the School Energy Coalition. A former appointee and Senior Advisor at the U.S. Department of Energy and former staff to the California State Senate on energy issues. 11

12 California Energy Commission Proposition 39 Beyond the Fifth Year November 28,

13 California Energy Commission Prop 39 K-12 Appropriations FY 2013/14 in millions FY 2014/15 in millions FY 2015/16 in millions FY 2016/17 in millions FY 2017/18 in millions Five Year TOTAL Prop 39 K-12 Program $381 $279 $313.4 $398.8 $376.2 $1.748 (in billions) Find your total five year allocation at: Questions: Derrick Andrade

14 California Energy Commission New EEP Final Deadline February 26, 2018 is the last date to submit energy expenditure plans to the Energy Commission. 14

15 California Energy Commission No Sole Source Public Resources Code section 26235(c), states: A community college district or LEA shall not use a sole source process to award funds pursuant to this chapter. A community college district or LEA may use the best value criteria 15

16 California Energy Commission No Sole Source No sole source applies to all Proposition 39 funding; planning funds and energy project implementation funds. 16

17 California Energy Commission Contracts PRC 26206(d): All Projects shall require contracts that identify the project specifications, cost, and projected energy savings. 17

18 California Energy Commission New Prop 39 Programs Senate Bill 110 (Chaptered July 10, 2017) Funds remaining after fiscal year continue to be available in future years for: 1) First 75 million School Bus Program 2) Next 100 million for ECAA-Ed loans 3) Remaining Money (if any) Competitive Prop 39 K-12 Program 18

19 California Energy Commission Current Funding Status (Total $1.75 Billion) * as of November 13, 2017, there were 68 EEPs (totaling $43 million) in review. 19

20 California Energy Commission School Bus Replacement Program 20

21 California Energy Commission Legislative Direction Up to $75 million will be allocated for grants or loans for school bus retrofit or replacement Priority shall be given to school districts and county offices of education: Operating the oldest school buses Operating in disadvantaged communities With a majority of students eligible for free or reduced-price meals 21

22 California Energy Commission Tentative Timetable January 2018 First series of public workshops February-April 2018 Additional workshops Detailed funding and deployment opportunities and timetable of activities July 2018 or when state budget is passed Funding allocated to Energy Commission and available for school buses 22

23 California Energy Commission Stay Connected Subscribe to the list server so that you will be notified of pre-solicitation workshops and solicitation. Follow instructions in bottom left corner. Contact: Jennifer Masterson 23

24 California Energy Commission Energy Conservation Assistance Act Education Subaccount (ECAA-Ed) Competitive 24

25 California Energy Commission Legislative Direction Up to $100 million will be allocated for lowinterest or no-interest loans Priority shall be based on four criteria: 1) Geographic diversity 2) LEA student population 3) Percentage of students eligible for free or reduced-price meals (FRPM) 4) Energy savings 25

26 California Energy Commission Tentative Timetable Program Development On-going Public Workshops/WebEx February 2018 Solicitation Announced- July 2018 Funding Allocated July st Loan Awards- December 2018 January

27 California Energy Commission Stay Informed Loan Program Web Page 27

28 California Energy Commission New Prop 39 K-12 Competitive Program 28

29 California Energy Commission Legislative Direction Program Funding for Prop 39 Competitive: Remaining Money (if any). Beginning with the fiscal year, funds may also be appropriated in the annual Budget Act or another statute. 29

30 California Energy Commission Legislative Direction Competitive Program Requirements Three Tier funding targets: 1) 10% for LEAs with ADA of 1 to ) 10% for LEAs with ADA of 1,001 to 2,000. 3) 80% for LEAs with ADA greater than 2,000. Provides the Energy Commission flexibility to adjust the funding allocations (if needed). 30

31 California Energy Commission Legislative Direction Competitive priority based on: 1) LEAs % of students eligible for FRPM 2) Geographic Diversity a. Urban, suburban and rural b. All regions of the state 3) Workforce Needs of the LEA areas. 4) Energy Savings 31

32 California Energy Commission Legislative Direction Most requirements from current program continue, such as 1) Projects shall be cost effective with total benefits greater than cost over time (Savings to Investment Ratio). 2) All projects shall require contracts that identify project specs, cost and energy savings. 3) No Sole Source contracts. 32

33 California Energy Commission Tentative Timetable New Guidelines (Public Process) 2018 Determine Funding Level for Competitive Program: July 2018 Solicitations Announced: 2018 Grant Awards:

34 California Energy Commission Bright Schools Program Need technical assistance now? $20,000 of Free Technical Assistance LEAs are strongly encouraged to apply now! 34

35 California Energy Commission Energy Commission s Prop 39 web page: dex.html Contact our Prop 39 Hotline: (855) (Toll-free in-state) (916) (Toll-line out-of-state) Contact us by Prop39@energy.ca.gov Questions? 35

36 Proposition 39 Presented by: John Borges, Energy Manager EMIT Sacramento City USD November 27,

37 Allocations & District Commitments 5YR Funding $9,524,510 3 EEP s District Contributions $11,161,082 Utilized Local Bond Money 37

38 Energy Audits Partnered with SMUD Level II Audits in lieu of Rebates 2 Phases of EEP s» Modernizations of electric heating/chiller sites» 1999 and older package/split HVAC equipment What we learned Audits more in line with actual costs when architect involved CBC (Kitchen Hood Upgrades) Gym modernizations» Added 2 20T AAON Units» Final reporting RFP Final Phase of Prop 39 Sharpen pencil when it comes to costs Charter Schools CCC audited 2 HS 38

39 Implementation Strategy Phase 1 Eliminate antiquated resistance heat circa 70 s Rancho Seco Picture: By Hajhouse (cropped by Der Hausgeist) - Original image made by Hajhouse, Public Domain, media.org/w/index.ph p?curid=

40 Phase 1 Antiquated Equipment 4 Sites were identified with 70 s air handlers Resistance Heat & Chillers Solution: Modernizations Combined scope 2 Phases» Below the ceiling / Above the ceiling» Coupled Core Academic Renovation 2 HS Swimming pools Original Equipment Add VFD s and controls (occupancy & flow rates) Upgrade filtration as needed *** Annual Estimated Savings $204,521 *** 40

41 Phase 1 Antiquated Equipment 41

42 Custom Mechanical Equipment 15.3 SEER Two Stage Heat Individual zone control Same footprint Economizers Free cooling Walk-in Unit Maintenance Phase 1 California Middle 42

43 Phase 1 California Middle 43

44 Phase 1 California Middle Crane Day 44

45 Cal Middle Completion 45

46 Cal Middle Avoided Use & Cost 46

47 Phase 1 Cont.: Washington Elementary T8 lighting in the classrooms T12 lighting in the cafeteria Exterior CFL, HPS, & Metal Halide Original HVAC equipment from 1975 Resistance heating elements Water cooled chillers Air handlers & fan coils 47

48 Washington Elementary: EEM s York High Efficiency Packaged Units 12.0 EER 48

49 Washington Elementary: Construction 49

50 Washington Elementary: Classroom Lighting 50

51 Washington Elementary: MP Lighting 51

52 Washington Elementary: HVAC 52

53 Phase 1 Cont.: HS Pool Equipment TEK Energy Smart Controller Scheduling Data Logging Chemical Management Remote Diagnostics Acu Drive VF Drive Reduction in speed Operates 70% capacity to deliver required GPM Chemtrol PC2100 Automated 53

54 Phase 1 Cont.: HS Pool Equipment HE Condensing boiler Replaced 1962 boiler Sand Filtration Ease of Maintenance 54

55 Phase 1 Status 65% Complete Final 2 modernizations are in final stages of DSA and will be going out to bid early 2018 to be completed summer 2018 Various exterior lighting installations to be completed in house Wall Hung Heat pumps at various locations to be completed in house Remaining pool upgrade in bid 55

56 Phase 2: Deferred Maintenance Strategy was to target equipment 1999 and older Worked closely with HVAC department to identify sites Only able to reach 1995 Created opportunity to make a large dent Across 16 sites 120 packaged/split systems 6 sites interior/exterior LED lighting Pool equipment at one more HS Antiquated controls District to allocate $250,000 for $4.8M in projects *** Annual Estimated Savings $202,321 *** 56

57 Phase 2: Charter Schools All Charters received ASHRAE Level II audits Optimized institutional knowledge of sites to guide audits One Charter hired their own consultant Provided direction on equipment/specs District augment of funds from local bond to make a bigger project Positive economic impact since they are district maintained sites 6 packaged units, 9 wall hung heat pumps and lighting» $33,000 57

58 Phase 3: Long Term Goals??? Continue with strategy to target deferred maintenance list Creation of annual revolving energy funds Work with business office to polish the concept Board Approval Savings continue to fund annual projects Additional savings from new annual projects continue to grow fund Total Estimated Savings $406,842 58

59 Questions? ext

60 Prop 39 Case Studies 60 12/1/ Green Schools

61 South Bay USD Project Details Interior/Exterior LED Lighting Retrofit Over 6,000 fixtures Lighting Controls 7 District Sites 2 Charter Schools After hours shift on active campuses 61 12/1/ Green Schools

62 South Bay USD Energy Savings Estimated Annual Energy Savings: IB Charter: $29,240 Nestor Charter: $32,016 7 District sites: $128,723 TOTAL: $189,979 (8 year payback w/ rebates) $300K in Rebates 62 12/1/ Green Schools

63 CA Conservation Corps (CCC) 63 12/1/ Green Schools

64 Encinitas USD Project Details El Camino Creek ES kw 1.29 SIR A Single Measure in the EEP Simple Payback 11 Years 64 12/1/ Green Schools

65 Lessons Learned Keep it simple! Use the Energy Savings Calculator Leverage Non-Repayable Funds Capture ALL Remaining Funds Amendments Estimated vs. Actual Utility Incentives Final Reporting SEC Support & CEC Support No Matter What Capture All Allocated Funds! 65 12/1/ Green Schools

66 Prop 39 and Prop 51 A Symbiotic Relationship Thomas Duffy CASH Legislative Advocate

67 Proposition 51: State School Bond of 2016 $9 Billon $2 Billion for Community Colleges $7 Billion for K-12 Public Schools Provided Through the School Facility Program $3 Billion for Modernization $3 Billion for New Construction $500 Million for Career Technical Education $500 Million for Charters

68 Opportunities to Associate Project Funding to Achieve Desired Goals The School Facility Program (SFP) is Well Established and Well Known Fundamentals of the SFP in Place Since 1998 Modernization Program Provides Per-Pupil Grant Funding for 25 Year Old Buildings And Even Higher Grant Funding for 50 Year Old Schools Modernization Program is On-Going: Apply at Any Time

69 Collaborative Expenditures Yet No Co-Mingling of Funds SFP Audit Provisions are Changing in Fiscal Year The Expenditures Directed Through a New Grant Agreement CASH will be Communicating Details as These Emerge Opportunity is for Local Bonds + State Bonds+ Prop 39 Funds to Stretch Projects

70 Contact Information Tom Duffy Coalition for Adequate School Housing 1303 J Street, Suite 520 (916)