Energy and water savings pilot program

              S T A T E O F A R I Z O N A
S C H O O L F A C I L I T I E S B O A R D
Governor of Arizona Executive Director
Jan Brewer John Arnold
1700 WEST WASHINGTON, SUITE 230, PHOENIX, ARIZONA 85007
Phone: ( 602) 542- 6501 • Fax: ( 602) 542- 6529 • www. azsfb. gov
October 1, 2008
The Honorable Jan Brewer, Governor
State of Arizona
1700 West Washington
Phoenix, Arizona 85007
RE: Energy and Water Savings Pilot Program
Dear Governor Brewer:
Arizona Laws 2007, Chapter 266, Section 3 established the Energy and Water Savings Pilot program and appropriated $ 2.5 million toward its implementation. Additionally, statute requires the School Facilities Board ( SFB) to report by October 1, 2009, on the status of projects awarded through that program.
The program is divided into two types of awards, Development Grants and Implementation Grants. Development Grants provide funds to assess existing school facilities and practices, and develop recommendations for improvements. Implementation Grants provided funds to implement energy savings projects.
Development Grants
The SFB received 27 applications for Development Gants. Applications were evaluated based on the following criteria:
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Energy and water utilization: SFB and Energy Office Staff analyzed energy and water use over a 12 month period to determine which projects had the most potential for savings. Staff compared this data on a square footage basis and converted the results into an index ( the EUI or WUI) based on 50 points. Energy and water savings potential were equalized for comparison purposes.
•
Local Resource Index: This index is based on the per pupil bonding capacity of the applicant.
•
Implementation Funding Plan: Applicants submitted proposed funding plans for implementing the results of the study. Points were awarded based on the specificity of the plan.
•
District Energy Plan: Awarded points were based on the specificity, completeness, and quality of the plan.
Based on these criteria, staff made recommendations to the School Facilities Board, which awarded eleven projects on April 3, 2008. Until the projects are completed, potential energy and water savings will not be known. Table 1 lists those projects and their current status.
Table 1 – Project Development Grants
District
Award
Spent to Date
Status
Agua Fria
$ 10,000
$ 10,000
Closed
Apache Junction
$ 10,000
$ 10,000
Closed
Buckeye ESD
$ 25,300
$ 20,403
Closed
Deer Valley
$ 40,000
$ 40,000
Closed
Mayer USD
$ 12,844
$ 12,844
Closed
Page USD
$ 40,000
$ 40,000
Closed
Peoria USD
$ 40,000
$ 10,055
Closed
Queen Creek USD
$ 15,000
$ 0
Cancelled
Toltec ESD
$ 6,559
$ 0
Active
Tucson USD
$ 40,000
$ 28,700
Active
Winslow USD
$ 10,297
$ 10,297
Closed
Total
$ 250,000
$ 182,299
Recommendations from the Development Grant Reports
The reports generated from the Development Grants review the selected school’s utility patterns and provide recommendations on how to reduce energy and water consumption. The majority of reports received recommend improving the schools mechanical and lighting systems. The reports also focus on behavior modification by creating awareness programs including goals and incentives.
Implementation Grants
The establishing statute defines implementation grants as a project that saves electricity, natural gas, other energy fuels or water, in a school facility built and occupied before July 1, 1999, through any of the following:
( a) Improvements in the efficiency of energy or water use.
( b) On- site production and use of electricity and useful thermal energy.
( c) Improvements in the operation of buildings and energy- consuming or water- using equipment in buildings.
There was up to $ 2,000,000 to award in Implementation Grants.
The SFB received 164 complete applications for Implementation Grants valued at $ 11.6 million. Applications were evaluated based on the following criteria ( total 100 points):
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Cost Benefit Ratio: The cost benefit ratio is based on proposed project savings versus grant funds requested. Cost benefit ratio = annual project savings x useful economic life/ grant funds requested
•
Percent Utility Savings: The electricity, gas, and water savings are calculated against the utility budget that includes annual cost of gas, electricity, and water. Percent Utility Savings = 100 X Annual savings ($) / Annual Gas, Water & Electric bill ($)
•
Local Resource Index: This index is based on the per pupil bonding capacity of the applicant.
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Environmental Impact: The environmental savings are based on total pounds of CO2 reduction per dollar spent.
The SFB awarded 30 projects in 16 school districts. In total, these projects will save $ 497,243 per year, which means the average payback for these projects is just over four years.
Table 2 lists the awarded projects and their current status.
Table 2 – Implementation Grants
District Name
Project Scope
Project Award
Paid to Date
Status
Altar Valley ESD
Lighting upgrade & HVAC Control
$ 84,773
$ 83,696
Closed
Altar Valley ESD
Lighting upgrade & HVAC Control
$ 81,114
$ 81,114
Closed
Altar Valley ESD
Lighting upgrade & HVAC Control
$ 12,890
$ 12,724
Closed
Avondale ESD
Lighting upgrade & HVAC Control
$ 60,913
$ 52,857
Closed
Catalina Foothills
Lighting upgrade - T12 to T8, New AC, Insulation
$ 100,000
$ 100,000
Closed
Clarkdale- Jerome
Lighting upgrade & HVAC Control
$ 98,961
$ 98,672
Closed
Colorado River UHS
Lighting upgrade, HVAC Control, Water Conservation
$ 100,000
$ 100,000
Closed
Colorado River UHS
Lighting upgrade, HVAC Control, Water Conservation
$ 100,000
$ 100,000
Closed
Concho ESD
Lighting upgrade
$ 64,259
$ 57,836
Closed
Eloy ESD
Lighting upgrade & HVAC Control
$ 98,361
$ 89,954
Closed
Eloy ESD
Lighting upgrade
$ 18,234
$ 18,234
Closed
Flowing Wells HSD
Lighting upgrade
$ 5,434
$ 5,434
Closed
Fowler ESD
Lighting upgrade & HVAC Control
$ 98,880
$ 98,880
Closed
Fowler ESD
Lighting upgrade & HVAC Control
$ 58,008
$ 49,446
Closed
Gilbert USD
Lighting upgrade
$ 100,000
$ 74,706
Closed
Gilbert USD
Lighting upgrade
$ 48,385
$ 48,385
Closed
Madison ESD
Lighting Upgrade and HVAC Control
$ 100,000
$ 89,830
Closed
Osborn USD
Low Flow Faucets, Toilets & Urinals
$ 25,000
$ 0
Active
Osborn USD
Low Flow Faucets, Toilets & Urinals
$ 16,000
$ 0
Active
Osborn USD
Lighting Upgrade
$ 7,500
$ 0
Active
Osborn USD
Lighting Upgrade
$ 5,000
$ 0
Active
Parker USD
Lighting upgrade & HVAC Control
$ 100,000
$ 100,000
Closed
Parker USD
Lighting Upgrade
$ 71,011
$ 71,011
Closed
Parker USD
Lighting Upgrade
$ 24,006
$ 24,006
Closed
Payson USD
Lighting upgrade, HVAC upgrade & Control
$ 100,000
$ 100,000
Closed
Payson USD
Lighting upgrade, HVAC upgrade & Control
$ 100,000
$ 100,000
Closed
Pine Strawberry ESD
Lighting upgrade, HVAC Control
$ 94,918
$ 94,259
Closed
Sacaton ESD
Lighting upgrade, HVAC Control
$ 94,762
$ 34,115
Active
Sacaton ESD
Lighting upgrade, HVAC Control
$ 31,591
$ 0
Active 3
Sahuarita USD
Lighting upgrade, HVAC Control
$ 100,000
$ 100,000
Closed
Total
$ 2,000,000
$ 1,785,159
Actual Energy Savings
SFB staff is beginning to receive information related to the actual savings produced by these projects. Table 3 lists six districts that completed their projects by the start of FY 2009. The table compares energy use from September 2007 through December 2007 with energy use from September 2008 through December 2008. A complete review of these districts is attached. The costs savings are the actual savings over the four month period. Because of changing energy needs throughout the course of the year, SFB staff believes it is inappropriate to annualize the four month savings over a one year period. However, in every case but one, the savings to date exceeds the projected savings. The one district that is below expectations, Catalina Foothills Unified, is mainly an HVAC project. SFB staff believes that the expected energy savings will manifest when utility bills from the warmer months are analyzed.
Table 3 – Energy Savings between September and December 2008
District Name
Project Scope
Project Cost
KWH Savings
Energy Cost Savings
Flowing Wells
Lighting
$ 5,434
5%
$ 5,454
Pine Strawberry ESD
Lighting, EMS
$ 101,796
19%
$ 2,244
Catalina Foothills
Lighting, HVAC, Insulation
$ 219,595
13%
$ 2,261
Payson USD*
Lighting, Economizer& EMS
$ 525,644
19%
$ 3,058
Eloy ESD
Lighting, EMS
$ 106,045
26%
$ 2,661
Parker USD**
Lighting, EMS
$ 240,573
23%
$ 6,638
During the last Legislative session, the law changed allowing the SFB access to school district utility records. This law will allow the SFB to track all of the awards in real time.
Sincerely,
John Arnold
cc: The Honorable Robert Burns, Senate President
` The Honorable Kirk Adams, Speaker of the House
The Honorable Ken Bennett, Secretary of State
Richard Stavneak, Director, JLBC
Eileen Klein, Director, OSPB
Karla Phillips, Governor’s Policy Advisor on K- 12 Education
GladysAnn Wells, Director, Arizona State Library, Archives and Public Records
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