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PACE: A New Tool for Big Water Savings in the ICI Sector
- 2. • Welcome & Introductions • Speakers – Jonathon Blackburn, Texas PACE Authority – Bill Hoffman, H.W. Hoffman & Associates LLC – David Clements, Banyan Water • Logistics – Webinar will be 75 minutes with time for Q&A at end – Audio is through your telephone or computer microphone & speakers – Please type questions in control panel, they will be answered at the end of the webinar by the presenters. – Webinar phone line will be muted – Technical Difficulties? Type a question in the control panel.
- 4. PACE FINANCING PACE FUNDING FOR WATER EFFICIENCY IN THE ICI SECTOR
- 5. 5 CURRENT TEXAS WATER SUPPLY
- 6. 6 NOT TOO LONG AGO
- 8. LOWER Utility Costs INCREASE Net Operating Income Bottom Line: Increased Building Value
- 10. How PACE Works Property owner repays loan through property assessment Financing provided to property owner to pay for energy project Property owners voluntarily sign-up for financing and install energy/ water projects City or county creates type of assessment district
- 11. What is eligible for PACE?
- 12. ELIGIBLE PROPERTIES Ø OFFICE/RETAIL Ø INDUSTRIAL Ø MULTIFAMILY (5+ UNITS) Ø NONPROFITS
- 13. NOT ELIGIBLE NEW CONSTRUCTION • i . e . Greenfield GOVERNMENT PROPERTY • Includes school districts, water authorities, etc SINGLE FAMILY RESIDENTIAL
- 15. What you PITCH 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 ü Strong ROI – will save $5.6M over system life ü Innovative – groundbreaking efficient technology ü 20-year warranties, proven expertise ü Hedge against rising water prices
- 16. What the CFO/Owner HEARS… Where will I get the funding? What if I sell the building in 5 years? We only do 3-Year payback projects Good technology…but my tenant pays the utility bills Are these savings even real? I’ve been burned before… 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
- 17. Changing the Story What if you could develop a solution that… 1. Provides 100% up front funding of all hard and soft costs? 2. Allows a 20+ Year repayment term = immediate income source 3. Allows transfer of obligation automatically on sale 4. Doesn’t tie up borrowing capacity 5. Requires savings to be validated by third party review 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
- 18. OTHER CONSIDERATIONS Ø TRIPLE NET LEASE PASS-THROUGH Ø TRANSFERS ON SALE Ø TAX TREATMENT Ø NO ACCELERATION ON DEFAULT Ø NO PERSONAL GUARANTEE Ø FUNDS AVAILABLE FOR CONSTRUCTION
- 19. B A R T O N C R E E K R O U N D R O C K O U T L E T S L A K E L I N E 2.4 MILLION GALLONS PER YEAR
- 20. MALL UPDATES M e a s u r e s : Ø E x t e r i o r L E D s Ø H V A C Ø V F D s Ø B A S Ø W e a t h e r i z a t i o n o f b u i l d i n g s h e l l Ø L o w f l o w w a t e r f i x t u r e s T o t a l P r o j e c t C o s t : ~ $ 4 M A n n u a l S a v i n g s : $ 5 0 0 , 0 0 0
- 21. WHERE IS PACE? Live ü City of Dallas ü Travis County ü The Valley ü Williamson County ü Fort Bend County ü El Paso County ü City of Houston and ETJ ü Brazos County ü Nueces County ü Hays County Next in Line q Bexar County q DFW Counties
- 24. Water Use in the Multi-Family, Commercial, and Industrial Sectors in Texas Examining where the PACE Potential is for Urban Areas. H.W.(Bill) Hoffman, P.E. H.W.(Bill) Hoffman & Associates, LLC 9013 Texas Sun Drive AusVn, TX 78748 512-294-7193 billhoffmantx@earthlink.net
- 25. What Will Be Discussed • How does Texas Uses Water in the Multi- Family, Urban, and Industrial Purposes & how much is PACE eligible? • How do PACE eligible sectors use water? • How are Energy and Water Use Connected at the Hip? • How Can the Rising Cost of Water Help Promote Water Efficiency Projects?
- 26. How Do Texans Use Water & What Water Is PACE Eligible?
- 27. Livestock 3% Irrigation 51% Mining 1% Steam Electric [PERCENTAGE] Manufacturing [PERCENTAGE] Municipal 33% Texas Water Use in 2015 12.2 Million Acre Feet per Year
- 28. Municipal Water Loss through Leaks in Texas 12.5%
- 30. Institutional 3% Other 2%Multi Family 7% Mun. Leaks 9% Industrial 28% Commercial 16% Single Family 35% Urban and Industrial Water Use in Texas – 2015 5.7 million acre-feet PACE Eligible Use = 53% of this volume 3.01 million ac-ft./yr., 2.7 BILLION gallons or water a day, 1 TRILLION gallons a year
- 31. 0 20 40 60 80 100 120 140 160 San Francisco 3.5>1.0 (1030) Calgary 3.5>1.6 (105) Sonoma 1 1.6>1.28 (259) Sonoma 2 3.5>1.28 (67) Sonoma 3 3.5>1.28 (22) Gallons Saved per Toilet Fixture per Day Water Savings - Hotel Guest Rooms Source: Koeller and Company Calculated Savings AddiVonal Savings Don’t Forget that there Leaks on the user side too! Average residential leak loss – 12% (WRF 2016)
- 32. Mining 10% Steam Elec. 34% Manufacturin g 56% Industrial Water Use in Texas in 2015 1.61 million ac-ft.
- 33. 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% Religious Other Educational Bldg Correctional Facility Other Group Shelter Commercial Warehouse Colleges Service Est. Healthcare All Other Offices Water Use by Commercial/InsVtuVonal Users Red = Food Svc. Commercial Water Use in Austin Texas – 2010
- 34. How Water is Used by PACE Eligible ICI Users • Multi- Family • Industrial • Commercial
- 35. 144 155 154 192 176 176 164 184 180 147 132 136 144 147 158 165 167 171 165 159 146 130 140 150 160 170 180 190 200 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 GallonsperPersonperDay (GPCD) Year Per Capita Water Use in USA and Texas Sources: TWDB and USGS Texas USA
- 36. Indoor Domestic Water Use Current indoor GPCD – 58 gal./person/dayWater Research Foundation Report # 4309A
- 37. 0.80 0.90 1.00 1.10 1.20 1.30 1.40 1.50 1.60 80 100 120 140 160 180 200 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Millions of Acre Feet per Year Billions of Dollars per Year Year Texas Manufacturing Water Use vs. Dollar Output (2009 Chained Dollars Adjusted for Infla?on) Billions of Dollars Output Water Use
- 39. How Water is Used in Texas FaciliVes With Cooling Towers Special Study of Audits in Aus;n, Dallas, and Fort Worth 43% 35% 33% 40% 29% 40% 31% 30% 3% 10% 17% 34% 37% 57% 61% 0% 20% 40% 60% 80% 100% Elementary Schools (N=6) High Schools (N=14) Hospitals (N=4) Middle Schools (N=5) Office Buildings (N=33) Percent of Total Use N = Number of Facili0es in Sample Indoor Use Landscape IrrigaPon Cooling Towers
- 40. How Water Is Used Indoors at Audited Facilities Special Study of Audits in Austin, Dallas, and Fort Worth 31% 38% 41% 58% 61% 62% 62% 66% 72% 79% 84% 90% 94% 95% 68% 0% 58% 12% 14% 13% 10% 17% 25% 16% 12% 6% 3% 5% 1% 62% 2% 30% 24% 24% 28% 16% 3% 5% 4% 4% 3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Community Clinic Community Hotels Elementary High Schools Office Buildings Middle Schools Senior Care Hospitals Service Stations Court House Convention Religeous Percent of Indoor Use Restroom Use Food Service Other (medical, water treatment, laundry, leaks, etc)
- 41. Percent Restroom Use by Type of Use Special Study of Audits in AusVn, Dallas, and Fort Worth 28% 52% 56% 59% 60% 62% 71% 22% 17% 11% 14% 20% 13% 12% 46% 10% 2% 6% 7% 8% 3% 2% 15% 29% 14% 11% 16% 13% 2% 6% 2% 5% 3% 0% 1% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Hotel All Office Community Colleges Hospital High Schools Elementary/ Middle Schools Percent Use in Restrooms Toilets Faucets/Lavatories Showers/Bath Urinals Other
- 42. “Water is the oil of the 21st century.” Andrew Liveris, Chief Execu;ve, Dow Chemical Co., August 2008.
- 43. Consumer Price Index for Utilities
- 44. Future Water & Wastewater Costs $11.27 $11.93 $12.63 $13.37 $14.15 $14.98 $15.85 $16.78 $17.76 $18.80 $19.90 $21.06 $22.30 $23.60 $24.98 $26.44 $27.99 $29.63 $31.36 $33.19 $35.14 $37.19 $39.37 $41.67 $44.11 $10 $15 $20 $25 $30 $35 $40 $45 DollarsperThousandGallons Year Projection of Combined Water & Sewer Costs for Commercial and Institutional Users Based on the Historical Inflation Rate of 5.85% Since 2001
- 45. In just 20 years… Gallons per Flush Cents per Flush in 2017 Cents per Flush in 2037 5 3.0 18.6 3.5 4.2 13.0 1.6 1.9 6.0 1.28 1.5 4.8 Cost to Flush a Toilet at Current Inflation Rate of 5.85%
- 46. 0 10 20 30 40 50 60 70 80 90 100 Home Office Grocery or Restaurant Flushes per Day of Operation More Bang for the Buck
- 47. Energy and Water Use are Connected at the Hip!
- 48. Supporting and Conflicting Situations Most of the Time, Saving Water Saves Energy. But Sometimes they Conflict!
- 49. Examples of Equipment and Appliances that Use Both Water and Energy • All hot water uses (bathing, laundry, dish washers) • Boilers • Cooling towers • Medical vacuum systems • Commercial ice machines • Steam cookers and combinaVon ovens • Medical sterilizers • RefrigeraVon equipment of all types
- 50. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Average of All Uses Leaks Clothes Washer Other Faucets Bath Shower Dish Washer Percent Hot Water Percent of Residential Use that is Hot Water Water Research Foundation Report 4309B
- 51. Look at All of the Costs • Water Cost • Sewer/Pre-treatment • Energy • Chemicals • Solid Waste Disposal • Capital Equipment • Labor • Liability
- 52. True Cost Example 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 2.2 2.4 2.6 2.8 3.0 3.2 3.4 3.6 3.8 4.0 4.2 Dish Washer Shower Toilet CentsperGallon Cents per Gallon of Water Used by Type of Use 2017 Average Prices Water/Sewer Cost Energy Cost Treatment & Other
- 53. Air Cooled vs. Water Cooled Ice Machine Jump to first page
- 54. 10 25 0.2 20 $1.63 $1.63 $1.24 $1.24 12 12 0 20 40 60 80 100 120 140 160 180 Ice Making Head Self Contained Centsper100lb.Ice Comparing 2017 Water Cost to Energy Savings DOE 2018 Std. vs Current EPA Avg. Energy Savings - Cube/Batch Energy Savings - Continuous Water Cost - Cube/Batch Water Costs - Continuous AC cost where applicable
- 55. Cooling Towers are Huge Water Users
- 56. 6,181 5,085 4,679 4,088 4,026 3,632 3,632 3,608 3,090 3,004 2,623 2,598 2,192 2,019 1,970 1,945 1,748 1,478 1,145 973 825 325 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 6,500 GallonsperYearperChillerTon Office Building Example Estimated Annual Water User per Ton Hour of Capacity at 4.0 Cycles of Concentration http://help.looplinkpro.com/en/latest/examples/Equivalent_Full_Load_Cooling_and_Heating_Hours.pdf
- 57. 0 1 2 3 4 5 6 7 8 9 10 2017 2027 2037 CentsperTonHour Year Cooling Tower Example of Water/Sewer Cost vs. Energy Savings for Tower at 4.0 Cycles of Concentration per Chiller Ton Water/sewer - no evap. credit Water/sewer - with evap. credit Energy Savings - 0.35 kWh/Ton-hr,
- 59. AlternaVves to Cooling Towers • Direct Exchange (DX) • Variable Refrigerant Flow - Air Cooled • Geothermal • Thermal absorpVon and desiccant systems
- 60. Other Ways to Reduce Use • Energy ConservaVon • Air-side Economizers • Water-side Economizers • Reuse of Waste Heat • Pre-cooling • Variable Frequency Drives • Thermal Storage
- 61. On-Site Reuse and Municipal Reuse • Both major plumbing codes – Uniform and InternaBonal – have major new secBons on on-site reuse of water including but, not limited to: Ø Gray water Ø Rain water Ø Air condiBoning condensate Ø FoundaBon drain water (sump pumps to remove groundwater infiltraBon) Ø Storm water Ø RO Reject water Ø And many more! • In 2016, TCEQ made major revisions to Reuse Codes to update on-site reuse – 30 TAC 210; subchapter F. They want to promote on-site reuse All multi family, commercial and industrial on-site reuse projects are PACE eligible!
- 62. The Cheapest Water You Will Ever Have Is The Water You Already Have!
- 63. A lot of water to save! A lot of money to make!
- 64. So Let’s Get Started! QuesVons?
- 65. Water Use in the Multi-Family, Commercial, and Industrial Sectors in Texas Examining where the PACE Potential is for Urban Areas. H.W.(Bill) Hoffman, P.E. H.W.(Bill) Hoffman & Associates, LLC 9013 Texas Sun Drive AusVn, TX 78748 512-294-7193 billhoffmantx@earthlink.net
- 67. Targeting outdoor water savings with PACE
- 68. Water Savings opportunity • Outdoor irrigation is a significant use of water with lots of opportunity improvement • Outdoor water use is rarely managed by someone incentivized to use water efficiently and has tools to manage water efficiently • Identified 432 leaks detected per 100 customers saving 58 million gallons of water • Greater than 50% savings in past 4 years by actively managing outdoor water use
- 70. Confidential & Proprietary: Banyan Water 70 Improving Data
- 71. ConfidenPal & Proprietary: Banyan Water 71 Translating Data to Action
- 72. Confidential & Proprietary: Banyan Water 72 Data systems optimize water use, detects efficiency and system issues • Precise irrigation on varied landscapes • Improved water use decisions and reduced property damage risk • System-wide optimization to maximize performance and savings Optimization
- 73. 73 Continuous Improvement TRACK ANALYZE OPTIMIZE VERIFY Confidential & Proprietary: Banyan Water
- 74. ConfidenBal & Proprietary: Banyan Water 74 Performance data are from a longstanding Banyan Water client Smart Companies are Controlling Costs As water rates rise, controlling water use is the best way to keep your operating costs low. How much are water rates predicted to rise in your region in the next 5 years?
- 76. • A copy of the presentations and webinar recording will be posted online at www.texaslivingwaters.org • Once the webinar concludes, a survey/evaluation will pop up; Please respond so that we may improve future presentations. Thank you for joining us!