54M102007D
Finding Funding for Energy Efficiency Retail Industry Leaders Association Presented by Shaw Environmental & Infrastructure, Inc. 02M062007D July 9, 2009 2
Agenda Introduction to Shaw Overview of American Recovery and Reinvestment Act (ARRA) ARRA Funding Channels: State Energy Plan Energy Efficiency Conservation Block Grants (EECBG) Weatherization Other Potential Funding Sources Capturing Funds and How to Prepare Energy management planning 3
Corporate Profile The Shaw Group is a global, vertically integrated provider of comprehensive engineering, design, construction, environmental, and maintenance services to government and private-sector clients in a wide array of industries. 02M062007D Name: The Shaw Group, Inc. Headquarters: Baton Rouge, Louisiana Public corporation: NYSE Symbol: SGR Number of employees: 27,000 FY08 Revenue: $7.1 Billion Current backlog: $15.9 Billion 4
Shaw A Market Leader 02M062007D (Source: Engineering News Record) 5
Worldwide Locations 138 U.S. Locations 33 International Locations 6
ARRA 2009 Overview Purpose: To stimulate the economy and to create and retain jobs Array of funding opportunities is broad, complex and unique Preference for activities that can be started and completed expeditiously Funds can be used with other funding opportunities, including utility incentives Strict transparency requirements 7
ARRA Funding Programs for Energy Amount Program $5 billion Weatherization Assistance Program $3.1 billion State Energy Program $3.2 billion Energy Efficiency and Conservation Block Grants (EECBG) $2.5 billion Applied Research Development, Demonstration and Deployment $41.9 million Fuel Cell Markets $2 billion Advanced Battery Manufacturing Grants $400 million Transportation Electrification $300 million ENERGY STAR Rebate program $300 million Alternative Fueled-Vehicles 8
Retailer Relevant ARRA Energy Programs State Energy Program (SEP) Summary: Funding for state level energy efficiency and renewable energy programs Funding Channel: States Energy Offices Energy Efficiency and Conservation Block Grants (EECBG) Summary: Funding for local energy efficiency and conservation projects Funding Channel: Cities and Municipalities ARRA Stimulus EECBG SEP WAP 02M062007D Weatherization Assistance Program Funding Summary: Weatherization Assistance Program enables low-income families to make their homes more energy efficient Funding Channel: States 9
$3.1 billion in funding State Energy Program (SEP) A closer look Grants to states to assist in preparing and implementing comprehensive state energy conservation plans The goals established for the State Energy Program (SEP) are: 1. Increase energy efficiency to reduce energy costs and consumption for consumers, businesses and government 2. Reduce reliance on imported energy 3. Improve the reliability of electricity and fuel supply and the delivery of energy services 4. Reduce the impacts of energy production and use on the environment 02M062007D Priority toward expansion of existing energy efficiency programs 10
SEP Funding Increase (IL example) 11
SEP Funding Path State Energy Offices Developing their own State specific programs Increase funds to existing energy efficiency and renewable energy (EERE) programs Development of new EERE programs Green Job creation programs Revolving Loan Funds 12
SEP Potential Programs Electric Efficiency Rebates / Incentives Efficient equipment upgrades: HVAC, lighting, building controls, refrigeration, high efficiency motors/fans, VFD s, etc Natural Gas Efficiency Rebates / Incentives Boilers, domestic hot water Energy Efficiency Technical Assistance Energy audits Energy management plan development Renewable Energy Incentives Wind, solar thermal and PV, bio-mass, bio-gas and renewable fuels New Construction Incentive Programs Incentives for facility design improvements above energy codes Retro-Commissioning Programs 02M062007D Revolving Loan Fund Programs 13
SEP Tracking the Funds and Opportunities US DOE State Energy Program http://apps1.eere.energy.gov/state_energy_program/ Individual State Energy Offices 14
Energy Efficiency and Conservation Block Grant Program (EECBG) A Closer Look $3.2 billion nationally: $400 million competitive grants $2.8 billion formula allocation EECBG had not previously been funded 02M062007D The EECBG program assists state, local, and tribal governments in implementing strategies to: Reduce fossil fuel emissions; Reduce total energy use; and Improve energy efficiency in the transportation, building, and other appropriate sectors Additional purposes of the EECBG program are to spur economic growth and create and/or retain jobs 15
EECBG Funding Channels EECBG Competitive Grants ($456 Million) Other competitive grants for market transformation, innovation and leveraging EECBG Formula Grants (2.744 Billion) Cities > 35,000 population Counties > 200,000 population Each state must subgrant at least 60% of its funding share to cities and counties ineligible for direct formula grants from DOE Specific guidance from States on ARRA-funded programs City / Muni comprehensive application for program were due to US DOE 5/26/09 Extension for applications due date move to 8/10/09 16
EECBG Funding Path Cities and Counties Each Muni to develop specific EERE programs EECBG Expected to be divided between public projects and private sector programs DOE Primarily Developing new EERE projects and programs Formula Grant Muni s > 35,000 Competitive Grants All Cities/Counties Sub-Grants Muni s < 35,000 Regional Entities Programs defined by local groups with guidance from the State Administered by each Muni Administered by Awarded Muni Administered by Regional Entities 17
EECBG Timeline for Funding City / Muni comprehensive application for program were due to US DOE 5/26/09 Extension for plan due date moved to 8/10/09 Funds awarded by US DOE -?? Energy Efficiency Conservation Strategies (EECS) due 120 days from initial award of funds Individual program implementation -?? 18
Building energy audits EECBG Potential Programs Financial incentive programs for energy efficiency improvements EE and conservation programs for buildings and facilities Development and Implementation of transportation programs to conserve energy Alternative fueled / electric fleet vehicles 02M062007D Material conservation programs, including source reduction, recycling and recycled content procurement programs that lead to increases in EE Slide 19 19
Other Funding Sources Energy and Renewable Portfolio Standards State level mandates to promote energy efficiency and renewable levels Typically support objective through incentive programs Utility Rebate Programs Utility based programs to incentivize energy efficiency and renewables Federal Tax Incentives National tax incentive based programs tailored toward business & residential 20
States with Existing Energy Efficiency and Renewable Energy Funding 21
Resources to Identify Funding Opportunities Perform Resource Assessment of Funding Sources Identify state, utilities and national funding sources to support initiatives DESIRE Tracks Federal, State, utility and municipal energy and renewable programs www.dsireusa.org State Energy Offices Utility Companies IRS Private foundations 22
Strategies to Capture Funding Develop an Energy Management Plan Develop an Energy Management Team w/ executive management support Define project boundary or baseline energy use Perform current state energy evaluation and facility energy audits Identify strategies for operational and tactical initiatives Define metrics and tracking mechanisms Develop and implement action plans 02M062007D Perform continuous improvement activities 23
Energy Management Plan Approach 24
Develop a Baseline Define the physical boundary Identify high or inefficient energy users 25
Current State and Opportunity Assessment 02M062007D Utility bill analysis Benchmark review Facility assessment Energy efficiency opportunity identification Data for financial and impact assessment Assessment Review Areas HVAC Systems Building System Operation Operational Procedures Building Automation & Control Lighting & Lighting Control Pumps & Motors Water Consumption Systems Domestic Hot Water Systems Process Equipment Renewable Energy Systems Utility Automation & Metering 26
Define Operational and Tactical Opportunities Compile energy / renewable opportunities Perform Impact assessment Financial and operational impact (ROI analysis) Leverage capital sources such as ARRA, tax incentives, grants, rebates Prioritize opportunities Cost, ROI, incentives, implementation difficulty Alignment with business objectives, planned capital projects, etc. Develop short, mid, and long term strategies Define strategies for operational and tactical initiatives Address pilot vs. portfolio-wide application 27
Metrics & Tracking You can t report on what you don t track Establish Measurement and Metrics Identify metrics used to track and evaluate projects Identify requirements for information tracking system Index sq-ft, age, climate, revenue, volume, head count, GHG Provide executive and facility level visibility to program s ongoing progress Facilitates Corporate reporting 28
Develop Action Plans Target Short-Term opportunities Low cost low hanging fruit improvements High ROI capital projects Projects with funding sources (ARRA, incentives) Opportunities which align with planned capital projects Develop Implementation Action Plans Define work plan and project schedule Develop resource plan (staff & capital) Perform detailed impact assessment (financial; marketing; social benefits; funding opportunities) 02M062007D Execute 29
Continuous Improvement Reassess projects and opportunities Adjusting corporate objectives New funding sources Changing energy efficiency / renewable technologies Volatile commodity markets (energy costs) 30
Summary Unprecedented increase in funding opportunities While new opportunities will arise many current funding sources exist Position yourselves by having projects defined and ready for application through existing and new funding sources 31
Questions? 32
Contact Information Jon Dierking, CEM, LEED AP Shaw Environmental & Infrastructure, Inc. 444 N. Wells, Suite 602 Chicago, IL 60654 312-499-3527 direct 312-499-3505 fax 312-218-1105 mobile 02M062007D William S. Haas, LEED AP Shaw Environmental & Infrastructure, Inc. 444 N. Wells, Suite 602 Chicago, IL 60654 312-499-3517 direct 312-499-3505 fax 312-316-9279 mobile 33