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The Value of Energy Data
George Belich
Energy ISA / EE Reports
35 years in the energy industry
as a Software engineer, systems
integrator, hardware developer,
product manager and
entrepreneur.
George has a proven track
record of bringing various
vendor solutions and
technologies together within
the energy management field.
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Valuable data can lead the way
Requirements can be problems
but this is an opportunity
The fine is much less than the
long term gains
36 months of utility bill data can
be revealing and reasonably
implemented
More participants will allow for
cost effective programs from
utilities and energy suppliers
Initial years of data showing
overall savings
You are working with a constantly
evolving tool
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The Score?
Define your building and utilities
Compare to others
Define Data normalized to weather
Measuring stick to your energy plan
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Why Is Your EUI Not Improving?
Perform the same analysis
Upward trends show some asset has lost its way
Note slight rise in cost here
This may be a high demand
due to some operation
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Simple Analytics Usage vs. Demand
The idea is to have a flat of a line as possible
From your utility bills take the simple relationship of monthly demand to monthly usage
Load factor is the total usage divided by the usage if you operated at the demand level for
the whole month
Close to 100 is ideal but not possible most of the time due to building operational
requirements
Low load factor implies the demand may be to high for the operational period. Detailed
load profile data from a utility or sub meter may be required to determine the time frame
that this occurred in.
Good Load Factor Bad Load Factor
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Taking On Projects
Have an energy efficiency audit done
Begin actions for efficiency
Obtain more detailed data from sub meters
Implement systems for energy management
Measure and verify your projects
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The Roadmap to Opportunities
Marc Karell
CCES /EE Reports
Licensed Professional Engineer
(P.E.), Certified Energy Manager
(CEM), and Existing Building
Certification Professional
(EBCP), with over 25 years of
experience.
Marc has a proven track record
of reliably performing energy
upgrades and complying with
current energy regulations –
and does so for the greatest
cost benefit.
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LL 87 Required Energy Work
Retro-commissioning certified by professional (i.e., EBCP) is a study reviewing
your current systems to ensure you are getting your money’s worth in operating
your systems
– LL 87 contains 28 areas that must be reviewed
– Low/no-cost upgrades of systems operating improperly must be implemented
Energy audit (ASHRAE II) certified by professional P.E. or CEM
– Interviews with operating personnel
– Review historic energy use data
– Site visits to see and review all major energy using equipment and building
– Estimate energy usage of different functions (HVAC, lighting, etc.)
– Develop ECMs to save you energy and costs
You do not HAVE to implement the ECMs, but ……
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Don’t Think of LL 87 As Only for Compliance,
It Is An Opportunity For Great Financial Benefits
Yes, reports must be submitted on time or else! And poor reports
may be rejected and made to be re-done!
But there are also many positive benefits. It gives you info to
upgrade your systems to save you a lot of $!
Audit ECMs result in significant energy cost savings, good paybacks,
and strong ROIs. And incentives and low interest loans exist for
positive cash flow.
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ECMs
Feasible, site-specific strategies to improve your energy efficiency,
reducing your energy usage and costs.
All result in major energy cost savings that will pay back initial
capital costs and much more.
– Energy is a growing segment in a building’s cost and with rising energy rates in
the future.
And there are many secondary financial benefits, too.
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Additional Financial Benefits On Top Of Direct Cost Savings
A more energy efficient building attracts more potential tenants:
– Higher rents, greater re-sale value.
– You have the upper hand!
Lower O&M costs. For example, your O&M staff will need to replace LED lights
much less often than others, freeing them for other tasks. This:
– Reduces your costs even further,
– Allows you to better meet deadlines, and
– Reduces risk of accidents of staff going up on cherry pickers and ladders.
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Additional Financial Benefits On Top Of Direct Cost Savings
New ECM technologies also results in reduced capital expenses and
storage space requirements.
Better comfort and lighting improves worker productivity and retail
sales. Not hypothetical: proven!
– Studies show that better temperature control and better lighting result in more
focused and productive workers and happier shoppers.
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ECM Case Study: Light Industrial/Office Buildings
Two light industrial/office buildings wished to reduce their high
energy costs and had a professional energy audit done, revealing a
number of ECMs; building owner implemented most, including:
– Replacement of windows
– Installation of new insulation on exterior walls and roof
– Fuel switched from No. 6 oil to natural gas and new, more efficient boiler
– Installation of new temperature control system
– Lighting upgrade
– Installation of solar hot water and PV systems
Building owner realized these benefits from the ECMs:
– Reduced energy costs in first year by over 60%
– Allowed owner to renovate a rarely used portion of building, allowing them to rent it,
bringing in additional revenue
– Significantly reduced time spent in O&M, freeing staff for other tasks
– Improved comfort level of staff, raising productivity
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Proven Advanced EE Technologies
Andy Padian
PadianNYC Consulting/NESEA
30 years of experience in the
unique building science of
multifamily buildings, and has
performed detailed energy
analysis on hundreds of
buildings across the country.
Mr. Padian is a frequent
contributor to energy and
sustainable publications, and
has spoken at numerous
conferences across the country
over the last 30 years.
22. Anytime you look at a group of your buildings,
the difference in energy use per square foot
always looks like these graphs:
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
1 22 43 64 85 106 127 148 169 190 211 232 253 274
Series1
0
5
10
15
20
25
30
35
40
Heat
Hot Water
0
20
40
60
80
100
120
<200 200-249 250-299 300-399 400-499 500-599 600-699 700-799
Dual Fuel
Oil
Gas
Drop Page Fields Here
Count of Fuel/Room
Range
FUEL TYPE
Fuel Cost/Room ($)
0
5
10
15
20
25
30
35
40
45
50
1
($/ft2/Year)
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23. As stated previously, that is why it
is important to find out how much
energy you are using, and which
devices/appliances/systems are
causing you the greatest usage and
cost.
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24. Let’s Look at lighting for a minute
• 20 years ago, we converted
incandescent to fluorescent, saved
66% with 500% increase in lifetime
• Today, you can take that lighting out,
save another 50% and with another
500% increase in lifetime
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25. Energy Efficiency
& Energy Costs
Light Emitting
Diodes (LEDs)
Incandescent
Light Bulbs
Compact
Fluorescents
(CFLs)
Life Span (average) 50,000 hours 1,200 hours 8,000 hours
Watts of electricity used
(equivalent to 60 watt bulb).
6 - 8 watts 60 watts 13-15 watts
Kilowatts of Electricity used
(30 Incandescent Bulbs per year
equivalent)
329 KWh/yr. 3285 KWh/yr. 767 KWh/yr.
Annual Operating Cost
(30 Incandescent Bulbs per year
equivalent)
$32.85/year $328.59/year $76.65/year
Chart courtesy of : http://www.designrecycleinc.com/led%20comp%20chart.html
Lighting Comparisons: Watts, Hours, Costs
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26. Remember Your Old Hot Water Maker?
Old Model 50% Efficient
New Model 90+ Efficient
And there is a much more
efficient way to generate hot
water and save more energy
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27. Combined Heat and Power (CHP)
and Tri-Generation
Cogeneration or combined heat and power
(CHP) is the use of a heat engine or power
station to generate electricity and useful heat at
the same time. Trigeneration or combined
cooling, heat and power (CCHP) refers to the
simultaneous generation of electricity and
useful heating and cooling from the combustion
of a fuel or a solar heat collector.
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30. Chiller/HVAC/ Controls/Process
Efficiency
• Many building still manually controlled
• Maintenance/Management making daily
decisions
• Too much time spent running systems
• Need better control systems with excellent
documentation
• Off the shelf or custom?
• Great when coupled with Smart Thermostats and
Cloud-based Automation Solutions
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31. Fuel Switching
• If coupled with an energy efficiency retrofit,
usually a great idea
• Changing boilers, make sure you’re increasing
efficiency
• Gas is cheaper than oil now, wasn’t 10 years
ago
• Fuel flexibility is always a good idea
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32. Other Simple Cutting Edge
Technologies
• Thermal and Battery Storage
• Demand Response Enablement
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No/Low Cost Financing Options
Posie Constable
NYC Energy Efficiency
Corporation
Posie heads NYCEEC’s efforts to
create the financial innovation
to help NYC’s building owners
and project developers
implement clean energy
projects such as heating system
conversions, solar thermal and
solar PV, efficient lighting
retrofits, cogeneration, passive
house construction and other
technologies.
35. 34
NYCEEC’s OBJECTIVE FOR THIS WEBINAR
Introduce NYCEEC
Tell you about NYCEEC’s flexible financing in NYC
− Fund up to 100% of project costs
− Partners with all incentive providers
− Use savings to pay back loan
Learn about your projects that need financing
NYCEEC can tailor a financing solution to
meet your project needs
36. 35
ABOUT NYCEEC
Established in 2011, NYCEEC is a non-profit specialty finance company
that develops financing solutions for projects that save energy or reduce
greenhouse gases
NYCEEC provides loans and technical expertise to make NYC buildings
cleaner, greener and more affordable
NYCEEC was initially funded and supported by the US Department of
Energy, City of New York and private philanthropic foundations
38. 37
LOANS FOR CLEAN ENERGY PROJECTS
Energy Efficiency
HVAC equipment upgrades
Lighting upgrades
Building management systems
Controls
Clean Fuel Conversion
Converting from dirty oil to cleaner
alternatives
Renewables
Solar PV
Solar thermal
Cogeneration
Combined heat power (CHP)
Fuel cells
Demand Response
Demand response enablement
Battery storage
NYCEEC provides financing for a broad range of projects, including:
39. 38
NYCEEC LOAN BENEFITS
Up to $6 million for clean
energy projects
Technical guidance Flexible loan structure
Up to 100% upfront
equipment costs
Clean energy project
analysis
Interest-only loans
Multiple draws
Capitalized interest
Partners with all incentive
providers
Generally no additional
requirements above the
incentive programs
Finance costs not covered
by incentives
Construction costs
Engineering quality
assurance
Soft costs (energy
surveys)
Performance evaluation
40. 39
DIRECT LENDING: POTENTIAL PROJECTS
Borrowers can be building owners, vendors and project developers
Commercial
buildings
(office, retail,
hospitality, etc.)
Healthcare &
educational
Facilities
(universities, K-12,
non-profit and
religious facilities)
Multifamily
(co-op, condo,
rentals, over 5
units)
Ineligible:
municipal
buildings and
single family
Property types including:
41. 40
INDICATIVE PROGRAM TERMS
Flexible financing solutions to meet borrowers’ needs
Deals can be closed within 3-6 weeks
Financing is subject to final credit approval
Loan to cost Up to 100% of project costs
Loan size Minimum $30,000; maximum $6,000,000
Term 3 to 10 years (Average: 5-7 years)
Average Interest Rate 6-7.5%
Amortization Fully amortizing loans over term of the loan
42. 41
LOAN PROCESS
Contact NYCEEC
Complete NYCEEC
Application
NYCEEC reviews loan
package
Potential site visit with
NYCEEC engineers
Credit review and
approval
Loan disbursement
Construction
1. Scope Project
2. Structure Loan
3. Finalize Loan
43. TITLE OF THIS PRESENTATION
S E P T E M B E R 2 3 2 0 1 5
DEAL SPOTLIGHTS
44. 43
ROOSEVELT LANDINGS
B Y T H E N U M B E R S
$5 million$7.4 million 1$818,000
PROJECTED ANNUAL
COST SAVINGS
Roosevelt Landings
wanted to upgrade
outdated systems and
improve the complex’s
resiliency.
The project’s technical
complexity and long
payback meant that
traditional loans were
not available.
T H E C L I E N T
CHALLENGE Roosevelt Landings is a mixed-income multifamily complex, consisting of 9 buildings
and over 1,000 multifamily dwellings.
NYCEEC’s expertise was key to structuring a financing strategy that made sense for
Roosevelt Landings and unlocked significant energy efficiency investment potential.
NYCEEC provided a $5 million loan under a combined energy services agreement and
power purchase agreement structure to fund energy efficiency measures and
cogeneration.
Construction began with no upfront costs
Energy cost savings used to repay loan
Pioneering use of ESA to finance EE in multifamily sector
Largest multifamily air sealing project to date
Improvements: Cogeneration, whole-building air sealing, floor slab insulation, networked
programmable thermostats and high-efficiency boilers
O V E R V I E W & T H E N Y C E E C S O L U T I O N
T H E R E S U L T S
118%
PROJECTED ENERGY
SAVINGS
NYCEEC LOANEE + COGEN PROJECT
45. 44
PASSIVE HOUSE: NEW CONSTRUCTION
B Y T H E N U M B E R S
$2.9 million$5.9 million
The real estate developer
sought flexible mortgage
financing that could
accommodate the
construction schedule and
needs of a highly energy
efficient buildout.
T H E C L I E N T
CHALLENGE NYCEEC partnered with BuildForward Capital and real estate developer Urban Artisan to
finance the first Passive House condominium in Manhattan. The project is a 6-unit
condominium in Harlem.
NYCEEC is the lead lender, providing a $2.9 million mortgage to cover construction costs.
NYCEEC’s loan enabled the construction of a new building efficiency standard. Passive House
is a voluntary international building standard that results in approximately 90% reduction in
heating and cooling energy use and up to a 75% reduction in total energy use compared to
current code-compliant building practices.
First Passive House project in Manhattan
Significant energy cost savings
Cost-efficient funding for highly energy efficient and innovative new
construction project
Improvements: New construction, ultra-low energy building built to Passive
House standards
O V E R V I E W & T H E N Y C E E C S O L U T I O N
T H E R E S U L T S
162%
PROJECTED
ENERGY SAVINGS
NYCEEC LOANEE PROJECT
46. 45
RIVER ARTS
B Y T H E N U M B E R S
$350,000$350,000
River Arts wanted to
convert to natural gas to
save money and comply
with Local Law 43.
The co-op needed rapid
access to financing to join
the 158th street natural
gas cluster in order to take
advantage of the no cost
gas connection from
ConEd.
T H E C L I E N T
CHALLENGE River Arts is a 244 unit co-op overlooking the Hudson River on Riverside Drive in Lower
Washington Heights.
NYCEEC is financing 100% of the project costs by providing a $350,000 loan. NYCEEC
quickly turned around a loan for the co-op, enabling it to join the natural gas cluster and receive
a no cost gas connection from ConEd.
In addition, NYCEEC is financing the co-op’s Local Law 87 audit and retrocommissioning
report and new building management system.
New in-unit sensors will improve tenant comfort
Comply with Local Law 43: Clean Heat
Comply with Local Law 87: Audits and Retro-commissioning
Energy cost savings used to repay loan
Significant greenhouse gas reduction
Improvements: Heavy #6 oil to natural gas conversion, in-unit sensors
O V E R V I E W & T H E N Y C E E C S O L U T I O N
T H E R E S U L T S
146%
PROJECTED
GHG REDUCTION
NYCEEC LOAN
EE + FUEL CONVERSION
PROJECT
$80,000
PROJECTED ANNUAL
COST SAVINGS
47. 46
FRANKLIN PLAZA
B Y T H E N U M B E R S
$285,000$3.8 million 1$2.2 million
PROJECTED ANNUAL
COST SAVINGS
Franklin Plaza was
enthusiastic about the
significant opportunity to
save money through
energy efficiency
upgrades, but lacked the
technical expertise and
financial resources to
make it happen.
Franklin Plaza was in the
process of refinancing its
mortgage with the NYC
HDC.
T H E C L I E N T
CHALLENGE Built in 1960, Franklin Plaza is an affordable multifamily co-op in East Harlem with 14
20-story buildings and 1,632 units.
Franklin Plaza sought a green mortgage from HDC’s and NYCEEC’s Program for
Energy Retrofit Loans (PERL). Through PERL, Franklin Plaza received an additional
$2 million specifically for energy upgrades, as part of a larger $36.7 million renovation
and refinancing.
NYCEEC provided the co-op with technical assistance, helping them prioritize the
energy efficiency upgrades that would modernize the facility and help keep apartments
affordable.
Co-op included energy upgrades as part of larger capital project
Preserved affordability and improved building comfort
Substantially modernized facility and upgraded building systems
Unlocked additional $1.8 million loan from NYC HPD
Improvements: #6 oil to natural gas conversion, separation of heat and hot water systems,
elimination of wasteful steam pipe, steam distribution improvement
O V E R V I E W & T H E N Y C E E C S O L U T I O N
T H E R E S U L T S
137%
PROJECTED
GHG REDUCTION
NYCEEC
CREDIT ENHANCEMENT
EE + FUEL CONVERSION
PROJECT
48. 47
CUBIT POWER SYSTEMS
B Y T H E N U M B E R S
$6.3 million$14.4 million
Cubit Power Systems
sought flexible, cost-
effective financing that
could match the
cogeneration project’s
construction schedule and
bridge the timing of
incentive payments.
T H E C L I E N T
CHALLENGE Cubit Power Systems sought financing to build and operate a cogeneration plant at a new
manufacturing plant in Staten Island.
The cogeneration plant will maximize the production of electricity to sell to the grid and,
secondly, maximize the use of waste heat for on-site manufacturing purposes.
NYCEEC provided a $6.3 million loan to fund the construction and operation of the
cogeneration project. Income from energy produced will repay the loan.
Highly energy- and cost-efficient manufacturing plant
Projected 34% energy use reduction
Significant GHG reduction compared to traditional manufacturing processes
Income from energy produced will repay the loan
Improvements: Cogeneration plant
O V E R V I E W & T H E N Y C E E C S O L U T I O N
T H E R E S U L T S
12%
PROJECTED
GHG REDUCTION
NYCEEC LOAN
COGENERATION
PROJECT
34%
PROJECTED
ENERGY SAVINGS
49. 48
SUMMARY
Flexible Offer a variety of custom financing solutions
Nimble Can close deals within 3 to 6 weeks
Innovative Engineers on staff provide technical support
NYCEEC provides innovative financing solutions and technical expertise
to help NYC building owners save money and transform their properties into
cleaner, greener and more affordable buildings.
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Investor Ready Energy Efficiency
Jeff Milum
EDF’s Investor Confidence
Project
Jeff leads the Environmental
Defense Fund’s Investor
Confidence Project (ICP), which
is implementing a system to
credential Investor Ready
Energy Efficiency™ projects.
Projects with the ICP seal will
benefit from reduced
transaction costs and actuarial
data that will unlock access to
capital markets.
55. BASELINING
• Existing Building
• Drawings
• Weather File
• Energy Usage
• Energy Rates
• Occupancy
ICP Energy Performance Protocols
SAVINGS
• Model File
• Calibration Data
• Bid Packages
• Certifications
COMMISSION
• Cx Plan
• Cx Authority
• Test Procedures
• Facilities Req.
OPERATIONS
• BMS Points
• Fault Plan
• Maintenance
Plan
MEASUREME
• M&V Model
• Regression
Model
• Adjustments
• Impact
• Baseline
Adjustments
Cx
54
56. Investor Confidence Project Protocols
Commercial Multifamily
Large Projects
(project size >$1M)
Standard Projects
(project size <$1M)
Targeted Projects
(limited interactivity)
EPP – Standard
Commercial
EPP – Targeted
Commercial
EPP – Large
Commercial
EPP – Large
Multifamily
EPP – Targeted
Multifamily
EPP – Standard
Multifamily
55
57.
58.
59.
60. Investor Ready Energy Efficiency™
IREE is the logo in the lobby,
like LEED but for a building
retrofit project.
59
61. “Energy efficiency is in a category by itself. With the
exception of one company packaging energy efficiency,
energy efficiency projects do not yet meet the
requirements of capital markets.
The industry is just too disaggregated. No two projects or
contracts are alike. Securitization is not practical or
possible under these circumstances.
Say you have 1,000 energy efficiency projects. Standard
& Poor’s would have to read 1,000 documents to assess
the risk. Fees won’t pay for that level of review.”
Michael Eckhart
Managing Director and Global Head of Finance and Sustainability at Citigroup
60
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Enhanced Incentives & Rebates
Tim Lezgus
Con Edison
Business Development
Manager for Con Edison’s C&I
Energy Efficiency and Demand
Management Programs.
Tim works to educate Con
Edison’s commercial customers
and market partners of
available utility incentives to
increase the energy efficiency
of Con Edison’s customers.
65. 64
Demand Management Program
• Con Edison still accepting new DMP
applications
• All DMP projects must be installed and
operational by June 1, 2016
• C&I Energy Efficiency program
extended until the end of 2016
• ETIP filing will layout Demand Side
Management programs beyond 2016
66. DMP Key Projects & Incentives
Project Current C&I
Incentives/kW
DMP
Incentive/kW
Total Customer
Benefit/kW
Thermal Storage $600 $2,000 $2,600
Battery Storage $600 $1,500 $2,100
HVAC/Controls/Process $0.16/kWh $1,250 $0.16/kWh + $1,250/kW
Lighting/LED $0.16/kWh $800 $0.16/kWh + $800/kW
DR Enablement $200 $600 $800
Non-Electric AC Steam AC Program $500-$1,000
CHP Incentives have not changed from original program. See:
NYSERDA PON 2568
Load Reduction Additional Bonus
Projects over 500kW Additional 10% of kW incentive
Projects over 1MW Additional 15% of kW incentive
Bonus first
installed, first
paid
65
67. Demand Response Enablement
• Facility must register in the New York Independent System
Operator (NYISO) Installed Capacity (ICAP) Special Case
Resources (SCR) Program; Proof of enrollment required
• Support for new DR equipment and software will not
exceed the incremental kW enabled to the NYISO ICAP
SCR Program
• New or existing generators – must permitted to
participate in Demand Response
• In addition to the NYISO SCR program, customers are also
eligible, but not required, to enroll in the Con Edison CSRP
and DLRP
66
68. 67
Commercial Real Estate – other measures
to consider
Electric:
• Lighting/LEDs/Occupancy
Sensors/Exterior Lighting
• Motor Replacements/Variable
Frequency Drives on Motors and Air
Handling Units
• Air Damper replacements
• Building Management/Energy
Management Controls Systems
• Elevator Motor/Controller replacements
• Kitchen/Refrigeration Equipment
• Plug Loads
• Data Center/IS/IT Infrastructure
Upgrades
Gas:
– Boiler/Hot
Water
Heater/Chiller
replacements
– Set-back
thermostats
– Insulation
69. Case Study - LED Lighting Upgrade
Overview
• Large office building, Midtown
Manhattan
• 595K square feet, 27 floors
• Project description: Lighting fixture
replacement in tenant areas
• Technology: 2L CFL fixture to 2L
LED engine
68
Before After Difference
Incentive $132,000 $262,000 $130,000
Payback 2.2 years 1.5 years 7 months earlier
68
70. Case Study - BMS Upgrade Overview
• Large office building, Midtown
• 1.7 million square feet, 42 floors
• Project Description: Replace old
pneumatic system with new direct
digital control (DDC) for better control
of building’s Chiller Plant and Air
Handlers
• Technology: Install new DDC
controllers and flat-screen monitoring
systems for the building control room
69
Before After Difference
Incentive $94,000 $450,000 $356,000
Payback 5.7 years 3.2 years 2.5 years earlier
69
Hi I am Posie Constable, Director of Business Development for New York City Energy Efficiency Corp. and I am really excited to be here to tell you about projects that we have financed that may be similar to measures that your building might install to save money, reduce energy use, improve tenant comfort and improve resiliency. That also translates into higher value for the building at the time of refinance or potential sale.
As I run through my slides, Ill leave it to you to follow the text, as I will be talking about finer point issues.
So here is what I hope to cover-
I want to tell you about NYCEEC’s flexible financing and how we fund up to 100% of project costs, partner with incentive providers and use the savings to pay back our loans.
And at the conclusion, I hope to have you come away with the view that financing shouldn’t be the obstacle to starting your clean energy project. We are here to help!!
NYCEEC is a 501c3 non-profit corporation.
Our mission is to provide clean energy financing solutions for private building owners across all building types in NYC.
We are not an agency of the City but we are closely aligned with their climate action goals.
We are not a bank, don’t take deposits and don’t have bank regulatory oversight-meaning, flexible underwriting and keen to solve your problems.
Since our founding in 2011 and through March of this year, this is what we have accomplished-
$50 million in projects across 45 buildings comprised of over 4.1MM SF. While impressive for a startup in a short period of time, we have lots of wood to chop to have an impact. Help us by bringing us your project!
So providing clean energy financing solutions-
We do this in 2 ways: (1) we provide financing for building owners both directly and indirectly through our lending partners, and (2) secondly, we provide technical assistance to our partners and building owners.
As such, we are staffed with business development and credit professionals and engineers.
We are both building and measure agnostic, so long as the project makes sense and saves energy.
These are some key measures we can fund.
No two of our projects look alike, which is to say that each building and measure has its own characteristics and pay backs. Contractors want to get paid out on their own timetable, and incentive awards also have unique milestones so NYCEEC aims to provide flexibility in our documents--multiple draws during construction, interest only until commissioning, covering engineering studies and soft costs, working with the utilities and incentive providers, etc.
Whether we provide a direct loan or an energy savings agreement, we have experience in working with banks, mortgage providers and utilities.
As I mentioned, we are building type agnostic, having funded multifamily, hospitality and industrial. We are currently restricted to buildings in the five boros but hope to put spandex in our boundaries soon!
We primarily provide minimally secured financing, based on the savings from the energy measures. This shows a range of some of our key terms.
That means we work with the contractors to determine how much the building will save per year, and match the loan term so that the savings cover the principal and interest. That means you wont have to put up any money up front and once the savings have paid us back, the rest of the savings for years to come reduce the building expenses-that means lower maintenance and more reliability.
We have developed a streamlined underwriting and approval process. We want to have an impact in NYC and that means we have to work quickly to help buildings take advantage of currently generous incentives! They wont be around for long so ACT NOW!
We have worked closely with coop Boards, we can come to your meetings and conduct site visits with you and the engineers and contractors to make sure the project is valid and one that saves energy and makes economic sense.
Hopefully, one of these projects that we have financed might look like what you envision for your building.
Roosevelt Landings is a 1000+ unit market rate multifamily rental for which NYCEEC provided $5MM in debt to cover cogen, efficient boilers, air sealing, insulation and in-unit thermostats.
We entered an ESA with the project developer, Urban Greenfit, along with a Power Purchase Agreement.
We had to negotiate with FNMA to get a security interest in the cogen via the ESA. Financing would otherwise have been difficult given the 8.8 year term, and technical complexity.
Combined measures save roughly $818,000 annually!
NYCEEC strongly supports Passive House standards for gut rehabs and new construction and we are leading the way in financing such projects. The air tight building envelopes, quality windows and doors, and ventilation and heat exchangers would be an ideal building standard for the City to adopt. As we increase our book on these projects and capture and publish the energy savings and tenant comfort, we hope to influence developers to incorporate these features.
We are funding a six unit new construction condo to passive house standards as well as a 4 unit rental gut rehab.
NYCEEC helped numerous buildings comply with the City’s LL43 Clean Heat initiative to eliminate dirty heating fuel. River Arts used NYCEEC financing to pay for their LL887 audit and incorporate EE measures along with converting to dual fuel to save money and reduce green house gas. The savings from the conversion and more efficient building management systems will cover the debt service and the building didn’t pay anything upfront.
Franklin Plaza, an affordable MF coop comprised of 14 twenty story buildings, was the first to use the (Program for Energy Retrofit Loans) program developed by NYCEEC and NYC HDC. This green mortgage product allowed the borrower to tap into addition funds because of the energy efficiency upgrades they installed. Replacing the aging #6 fired boilers and separating heating from domestic hot water will save the complex $2.2MM annually and help to preserve affordability.
Here, NYCEEC’s $6.3MM loan is part of a larger $14.4MM financing to construct a cogen powered ice plant in SI. The multiple draw loan matches the construction milestones and bridges NYSERDA incentives. The plant will produce electricity to sell to the grid to generate revenue, while using waste heat for on-site ice manufacturing. Income from the energy produced will repay NYCEEC’s loan. The project is expected to save the company $1.250MM annually.
In summary, here’s what we do and here is how.
Our operators are standing by!! Here is my contact info. Thank you.
THIS is where you go into you near short term goals
Keep near term simple. Increase Deal flow
I modified the long term – as I think reducing performance risk can be confusing.
Also – this is where to talk about transitioning to project finance
Our standard 2 slides – but – let’s explain the protocols as simply as humanly possible
I think we’ve transitioned away from this metaphor – but for this audience – I think maybe we want to use it