This document discusses financing energy operations in schools through various clean energy programs and partnerships in Minnesota. It outlines challenges schools face with high energy costs, limited funds, and deferred maintenance. The Guaranteed Energy Savings Program allows schools to upgrade facilities with no upfront cost by using future energy savings. Schools have completed projects like lighting upgrades, HVAC improvements, and solar installations. The program provides technical assistance and guarantees annual energy savings.

1. Financing Energy Operations
in Schools
Peter Lindstrom
Summer Institute for Climate Change
Education
June 17, 2015

2. Mission: We connect individuals and their communities
to the resources they need to identify and implement
community-based clean energy projects
CERTs:
Minnesotans Building a
Clean Energy Future

3. Partnership

4. • B3 Benchmarking
• Guaranteed Energy
Savings Program
• Community Solar
Gardens
• Third Party Solar
• SEED Grants
What Will Be Covered?

5. Save $1
Trillion…
in buildings
alone

6. “You can’t manage what you don’t
measure”

7. “We use B3 Benchmarking to see how we are doing compared to
other schools. Because there are so many schools using it, I believe
it’s the best tool for a MN school to gauge progress, set goals, etc.”
Lisa Johnson
ISD 197 West St. Paul-Mendota Heights -Eagan

8. Addressing
Deferred
Maintenance
Utilizing
technology
more
effectively
Building
upgrades
Meet Energy
Goals set by
Elected
Officials
High
energy
costs
Your Challenges
Operation
Costs
Limited Funds
& Time

9. Savings
from
building
energy
upgrades
are used
to pay for
projects
Performance Contracting

10. $
Guaranteed Energy Saving
Program is Budget Neutral
Existing
energy,
maintenance
& operation
costs
Savings Fund
Improvements
Existing
energy,
maintenance
& operations
costs
Existing
energy,
maintenance
& operation
costs
Ongoing
Savings
Before During After

11. What Kind of Projects?School Projects to Consider:
• Upgrading to High efficiency boilers & chillers
• Converting to ground-source heating & cooling
• Retrofitting to efficient lighting
• Installing heat recovery equipment
• Redesign HVAC system
• Adding solar energy systems
• Increasing water conservation

12. Schneider Electric – Buildings Business 12
Long Payback
Cost Savings
Quick Payback
Cost Savings
BUNDLING: A comprehensive approach
• Lighting
• Vending Machine
Controls
•VFDs
• Chiller
Replacement
• Boiler
Replacement
• Air Handling Unit
Replacement

13. 13
Reduce
Energy Use
Operation &
Maintenance
Costs
Renew
Facility
Infrastructure
Occupant
Comfort, Health &
Safety
Achieve
GHG Emission
Reduction
Job Creation
Use of Renewable
Energy
Budget Neutral – No Bond Funds Required

14. 14
Organizational
Goals
Facility Issues
Resource
Needs
• Reduction in Energy Use
• Reduction in Greenhouse
Gas Emissions
• Use of Renewable Energy
• Job Creation
• Occupant Comfort
• Health & Safety
• Deferred Maintenance
• Energy Price Uncertainty
• Budget
• Manpower / Capacity

15. 15
State Provided Technical, Financial and
Contractual Assistance
Vetted Documents: RFP, Master Contract,
Work Order Contract
• Open Book Pricing & Maximum
Markups and Fees
• Competitive Bidding of Trade Work and
Equipment with Pre-qualified Sub’s
• Annual Savings Guarantee
• Measure & Verification Guidelines
• Pro Forma Guidelines
• Third-Party Review of M&V Report

16. 16
Process Step Activity Milestone
Opportunity
Assessment
Meetings with Dept. of Commerce to review GESP,
B3 data, facility needs, issues, and goals
Joint Powers Agreement
Define Project Goals Energy Savings; GHG Emission Reduction;
Renewable Portfolio; Job Creation
Issue Site-Specific RFP
ESCO Selection RFP evaluation and ESCO selection Issue Work Order
Contract
Project Development Perform Investment Grade Audit to develop project
scope, cost, savings and funding
Issue Work Order
Contract Amendment
Project Implementation Installation of Energy Conservation Measures Certification of Final
Completion and
Acceptance
Performance Period Review Measurement &Verification Reports Annual M&V Report

17. Pre-Qualified Energy Service Companies:
• AMERESCO, Inc.
• Chevron U.S.A. Inc.
• Consolidated Edison Solutions, Inc.
• Control Technology & Solutions LLC
• Harris Mechanical Contracting Company
• Honeywell
• Johnson Controls, Inc.
• McKinstry Essention, Inc.
• Noresco, LLC
• Siemens Industry, Inc.
• Trane U.S. Inc.
State: Technical Assistance
• Contractual
• Financial
• Legal
• Administrative e.g. approval process
Who performs the work?

18. GESP: “Very Beneficial and Helpful”

19. Benefits of GESP:
 Renews infrastructure
 Complete Process
 Repurpose dollars
 Access to private-sector expertise
 Less vulnerability to volatile energy
prices, weather, and equipment failure
 Progress in meeting your sustainability
goals
 Reduces Taxpayer Risk
 Guarantee on energy savings through on-
going savings measurement and
verification

20. Cities
 Bemidji
 Rochester
 Tracy
Counties
 Cottonwood
Schools
 Anoka-Ramsey CC
 MN State Mankato
 Riverland CC College
State Agencies
 National Guard
Who has signed on so far?

21. School Benefits:
• Improve student performance
• Increase student, teacher and staff attendance
• Boost teacher morale and retention
• Strengthen community spirit, because you have schools that work

23. Definition:
Centrally-
located solar
PV systems
that provide
electricity to
participating
subscribers
Community Solar Gardens (CSG)

24. This can be you!

25. Current projects

26. How does it work?
Cooperative or Municipal
Utility Programs
• Utility contracts
with developer to
set up garden.
• Utility operates
garden and
handles all
aspects of
relationship with
subscribers.
DEVELOPER: installs & assists
financing project
UTILITY: hosts & manages
garden
SUBSCRIBERS: individuals or
groups to get solar power

27. How does it work?
Xcel Energy Program
OPERATOR: primary group
running the solar garden
UTILITY: approves garden, tracks
production, provides credit.
SUBSCRIBERS: individuals or
groups to get solar power
• 3rd Party
operator
develops &
runs garden.
• Maintains
relationship
w/ subscriber
for payment.
• Utility
provides
subscriber w/
bill credit.

28. Community Solar Subscriber
Collaborative

29. Third Party Solar
“Showcasing the importance of sustainable energy is an amazing opportunity
for our school and our students. This project will ensure reliable energy costs
for our school district over the next 15 years, allowing us to direct funds to other
important projects.”
Mark Frederickson
Principal, Waconia High School

30. NEW LONDON-SPICER SCHOOLS
Solar Active Greenhouse and Wind Turbine

31. Learn More:
mncerts.org