Sustainability and GHG Elements of the ARRA and Getting the Most out of your Stimulus Funding_JRMalone_HDR

Congress for the New Urbanism
The AmericanRecovery and Reinvestment Act:
Dispatches from the Front Lines
Sustainability Elements of the ARRA, and Getting the Most out of Stimulus Funding
Jeannie Renne-Malone, LEED AP
National Director – Climate Change & GHG Management

Overview
Sustainable Elements of the ARRA
The Energy Efficiency and Conservation Block (EECBG) Program
Getting the Most of Your EECBG Funds
Using Sustainable Return on Investment (SROI) to Make a Green Business Case for Competitive Funds

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ARRA: Stimulus InvestmentsWith Sustainability Goals
Aid to States and Local Governments
Health care
Energy
Infrastructure
Education
Public safety
Emphasis on Sustainability
Clean Energy Projects
EECBG Funding
Sustainable Transportation Solutions
Environmental Protection
Support for Climate & Sustainability Initiatives
Green Job Creation
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Energy Efficiency and Conservation Block Grant (EECBG) ProgramOverview
$3.2 Billion from DOE to Cities, Counties, States and Tribes throughout US
$400 Million Competitive Grants – to be released soon
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Reduce fossil fuel emissions
Decrease overall energy consumption
Improve energy efficiency in the transportation, building, and other energy consuming sectors
EECBG ProgramPurpose
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EECBG Evaluation Criteria
Jobs created and/or retained
Energy savings on a per dollar invested basis
Renewable energy capacity installed
Greenhouse gas emissions reduced
Funds leveraged
Web-based reporting system
Individual output metrics based on activity type
*Framed through Sustainable Return on Investment

Keys to Getting the Most Out of EECBG
Don’t Use All the Money Doing Easy Things (Make Wise Choices)
Be Sure to Establish Energy and GHG Baselines
Anticipate More Competitive Funding Initiatives
Make a “Green” Business Case
Measure Your Sustainable Return on Investment (SROI)
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Don’t Use All the Money Doing Easy Things
Be Mindful of DOE’s Priorities
Leverage
Legacy
Jobs
Energy Efficiency and GHG Reduction
Resilience
Return on Investment
Strategic Planning and Detailed Analysis
P3 Development verses Capital Investments
Think of EECBG Funds as Venture Capital
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Be Sure to Establish Energy and GHG Baselines
Reporting Expectations
Track Record for Future Energy Funding
Emerging GHG Regulations
Avoid the Need for General Fund Expenditures
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Anticipate More Competitive Funding Programs
Supply (of Federal Funds) verses Demand
Funding Directed Toward Federal Priorities
Anticipate Transparency Measures
Aim for the “Hot” Buttons
Make the Most Convincing Case
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Make a “Green” Business Case
Your Funding Proposals Should Include:
A Baseline Forecast for Achieving Outcomes
Facts Supporting a Case for Incremental Benefits
Detailed Jobs Projections
Energy Efficiency and Sustainability Summary (with backup)
Projections for Enhancements to Energy Resiliency and Business Continuity
Present a Detailed Cost Benefit Summary
(including NPV/ROI/SROI)
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Measure Your Sustainable Return on Investment (SROI)
Assess the Financial Return on Investment
Assign Monetary Values to the Non-Cash Risks, Benefits, and Externalities including:
Changes in GHG and Air Contaminant Emissions
Health and Safety
Water Saved
Productivity
Mobility/Congestion
Waste Avoided
Other Factors
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SROI Flow Diagram
Costs
Example of Benefits
Cash
Non-Cash
Capital Costs ($)
Associated Maintenance Costs ($)

Reduced Green House Gas Emissions
Reduced Air Contaminant Emissions
Fresh Water Conserved
Improved Health
Improved Productivity
Improved Resiliency
Improved Safety
Reduced Electricity Costs
Reduced Heating/Cooling Costs
Reduced Water Costs
Reduced Sewage Costs
Reduced Waste Disposal Costs
Other Reduced Operational Costs

Disposal Costs ($)
Operating Cost Increases ($)
Total Benefits ($)
Discounting (%)
Total Costs ($)
Output Metrics
($)
Reveals a project’s Full Value
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SROI – Considers All Benefits
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Build Your Business CaseAround the Sustainability “S” Curve
RISK ANALYSIS OF SUSTAINABLE INITIATIVES - JHU
NET PRESENT VALUE
FROI
SROI
$59.5
$19.8
100%
$47.0
MEAN: $36.7
MEAN: $6.5
$12.5
$44.7
$11.3
90%
$43.2
$10.4
$41.9
$9.6
80%
Externalities
$40.9
$9.0
$39.9
$8.4
70%
Health &
$39.1
$7.9
Productivity
$38.2
$7.4
60%
$37.5
$6.9
Probability of Not Exceeding
$36.6
$30.5
$6.4
50%
$35.8
$5.9
$35.1
$5.4
40%
$34.3
$4.9
$33.5
$4.4
30%
$32.5
$3.9
$31.6
$3.3
20%
$30.4
$2.6
$29.0
$1.8
10%
$27.0
$0.6
$16.4
0%
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
Total NPV ($Millions)
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SROI can Lead to Wiser Use of EECBG Resources
Optimized Choices among Broad Categories and Competing Initiatives
City Departments (e.g., Fleet vs. Public Works)
Non-profit and Private Sector (building retrofits vs. new generation)
Balancing Direct Investments (City-owned vs. non-governmental facilities)
Identify Preferred Options within Specific Areas
Recycling and Waste Management
Signals and Street Lighting
Waste-to-Energy
Wastewater Treatment
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Targeted Applications of SROI for Maximum Sustainable Outcomes
Screen and Prioritize Your Capital Improvement Program
Saves Money and Maximizes Important Benefits
Forces Lower Rank Projects to be Reevaluated to Improve SROI
Can Help Find Best Solutions in Individual Sectors
Buildings and Operations
Transportation Improvement Programs
Stormwater
Waste Management
Water Supply and Treatment
Wastewater Treatment
Greenhouse Gas Management
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SummaryMeasuring “Green” Will Help You Make the Most of Your EECBG Funds
Leverage Your EECBG Funds Like Venture Capital
Avoid the Need for a General Fund Expenditure
Make the Most Convincing Case
Your Funding Proposals Should Present Cost Benefit Details in NPV/ROI/SROI
Use the Sustainability “S” Curve to Explain the Benefits to Your Stakeholders
Apply SROI to Make Wiser Use of EECBG Resources
For more information:
www.HDRGreen.com | SROI@hdrinc.com
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Congress for the New Urbanism
The AmericanRecovery and Reinvestment Act:
Dispatches from the Front Lines
Sustainability Elements of the ARRA, and Getting the Most out of Stimulus Funding
Jeannie Renne-Malone, LEED AP
National Director – Climate Change & GHG Management