City Manager Robert Salinas champions improving water metering & lighting efficiency
REIMAGING SOLAR INSTALLATIONS: Adding BEAUTY, Safety, Shelter, & Connectivity in Public Spaces
Unlocking Energy Efficiency with Collaborative Partnerships and Federal Incentives
COMMITTED TO HELPING EXPAND ENERGY EFFICIENCY AND CREATE A MORE SUSTAINABLE, HEALTHY ENVIRONMENT.
SPEER’s diverse membership of more than 60 industry-leading companies includes: Providers: Utilities, Municipally Owned Utilities, Electric Cooperatives, Retail Electric Providers Products & Services: Contractors, Engineers, Architects, Developers, Consultants, Utility Programs, Implementors, Software & Energy Service Companies, Distributors, and Retailers of Building Products Organizations: Academics and Researchers, Associated Professional Service Companies, Other supporting Non-Profit Organizations Public Sector: State/Local Governments and Schools
Building Codes
We promote code compliance across TX and OK through education and outreach; optimizing energy efficiency, durability, and affordability.
Policy
Energy efficiency delivers proven economic and environmental benefits. Despite these benefits, efficiency is often underutilized, and policies are often needed to overcome barriers to reach the full potential of energy efficiency.
Heat Pumps
Our heat pump working group meets quarterly, along with individual meetings throughout the legislative session, to identify policy recommendations to increase the deployment of highly efficient heat pumps throughout our region.
Local Governments
Our Local Governments Program supports city energy management by facilitating sharing of best practices in energy efficiency, while strengthening relationships among local governments.
FROM THE EDITOR
Welcome to Energy Services Today, Local Government Edition. This quarterly publication is dedicated to the latest advancements in the energy services industry, focusing on energy efficiency and infrastructure within the built environment. This issue spotlights how local governments can drive resiliency, energy efficiency, and fiscal responsibility by investing in cutting-edge infrastructure and technology. These investments create high-performing work and living environments with operational excellence.
We aim to provide our audience with solutions. Local government leaders juggle competing priorities daily. By sharing others’ successes and knowledge, our stories seek to spark curiosity and inspiration to help leaders make good decisions. In the featured article, we hear first-hand how the City of Alamo’s City Manager, Robert Salinas, spearheaded the modernization of the city’s water infrastructure to provide water usage transparency to residents, save energy, and recoup lost revenue.
Building on the topic of water infrastructure, we explore the benefits of Advanced Metering Infrastructure (AMI) projects, smart meters, and leak detection technology. Statistics from a multi-phase project in Las Cruces, NM, illustrate the impact.
We then transition to buildings and how energy efficiency can be a driving force behind combating grid strain, specifically in Texas. However, the lessons learned can be applied to any facility leader aiming to reduce reliance on the grid. The South-central Partnership for Energy Efficiency as a Resource (SPEER) provides guidance to building owners on critical infrastructure solutions and potential funding mechanisms, such as grants, rebates, and low-cost interest loans.
When pursuing energy efficiency and infrastructure projects, it is critical to work with the right partner who has your best interest in mind. The National Association of Energy Service Companies (NAESCO) details the importance of working with a partner who is invested in the project, highlights a financing mechanism that enables projects to be self-funded with a financial guarantee of performance, and gives insight into how federal funding can be leveraged to expand the projects to deliver greater outcomes.
Lastly, you’ll learn about a solar tree—a renewable energy solution that provides safety, shelter, and connectivity to outdoor spaces. As temperatures continue to rise, shade and cooling are becoming increasingly important to keep residents safe. The solar tree addresses these needs by providing shaded areas that help lower ambient temperatures.
We commend your dedication and applaud your efforts in driving positive change within our communities.
Julie Chesna, Editor-in-Chief
THE CITY OF ALAMO FUNDS $4.4M
INFRASTRUCTURE
MODERNIZATION PROJECT WITH ENERGY SAVINGS
CITY MANAGER ROBERT SALINAS CHAMPIONS IMPROVING WATER METERING AND LIGHTING EFFICIENCY, RECOUPING $94K IN LOST REVENUE, AND SAVING $39K IN ENERGY COSTS IN THE FIRST YEAR
BY MATTHEW CHESTER
The City of Alamo is a humble and hard-working city in the southern region of Texas, a vibrant community situated in Hidalgo County. It is renowned for its cultural heritage and agricultural industry. In recent years, the City of Alamo has sought to set itself apart and take the right action in its support of the United Nations Sustainable Development Goals (SDGs).
Efforts to upgrade infrastructure and focus on future goals have been spearheaded by proactive leaders like City Manager Robert (Bobby) Salinas with the support of former Mayor Diana Martinez and current Mayor J.R. Garza. The City has prioritized initiatives to address aging water and sewer systems, improve transportation networks, and enhance public utilities. These upgrades are laying the foundation for sustainable growth and economic development in Alamo.
Salinas assumed the position of City Manager in June 2019. He brought a well-respected wealth of experience and dedication to his role. He has a deep understanding of urban planning, political science, and public service. Salinas previously served as the City’s Planning Director.
Known for his leadership and commitment to progress, Salinas and his team at City Hall have made modernization efforts a personal mission. His proactive approach and focus on leveraging technology to meet the evolving needs of residents reflect his dedication to fostering innovation and sustainable growth within the community. Salinas aims to position Alamo as a technologically advanced and forward-thinking municipality.
Energy Services Media (ESM) discussed the project with Salinas to understand its genesis and why the City chose to leverage an Energy Savings Performance Contract (ESPC) with Schneider Electric to execute an Advanced Metering Infrastructure (AMI) and lighting retrofit project.
City of Alamo City Hall, Photo by City of Alamo
modernization project?
Salinas: One of my goals was to progress the City into considering modern technology ideas. For example, when I came on as City Manager, we did not have an online payment platform. My hope was to bring some efficiencies to our city operations and city residents with the implementation of modern technology, like paperless online bill pay and using online forms—simple things.
We received positive feedback as changes were made, so when we started to experience many issues with our water meters, I took the same approach: How can the City raise the performance standards for our residents?
We had 20+ year-old mechanical water meters out in the field. The meters did not provide accurate measurements, and we often ran into issues finding replacement parts because of how dated they were. We had water loss because they did not perform well, and residents did not have the ability to see in real-time how much water they were using. We routinely ran into issues with the pace of billing; if a technician could not physically go out into the field and read the meters, we wouldn’t be able to complete the meter reads on time. Overall, it was a significant problem faced by the City and a point of frustration for Alamo residents.
After the smart meters were installed, getting a read is literally by a touch of a button. It’s very easy, and billing is automated. I’m not getting complaints anymore.
ESM: Was the lighting upgrade part of this project’s initial scope, or was that an opportunity identified after the project started to develop?
Salinas: Our primary focus was on implementing smart water meters. The LED lighting project came about as the project developed. When we started to explore the automated water meter project, we were unaware that we could fold the lighting upgrade into the project. As we partnered with Schneider Electric, they brought to our attention that adding the lighting upgrade was possible, and the savings from the lighting upgrade would help pay for the overall project.
We saw this as very beneficial to the City, reducing the lighting utility bill and the amount of energy being used. The lighting upgrade took place at a very large sports complex that has four baseball fields. It was a win-win: the City is saving money and energy, and the sports complex now has high-performing lighting.
ESM: Were you aware of how the City would fund the project?
Salinas: As I started in my role, the City was working through how the project would be funded. Schneider Electric approached us about the prospect of executing the project with an Energy Savings Performance Contract (ESPC).
Before we committed to any project scope, Schneider Electric offered to complete an Investment Grade Audit (IGA). They looked at our infrastructure as a whole and provided a comprehensive report that included all upfront costs, energy savings, and operations and maintenance costs.
We knew exactly how much it would be and were confident in the ESPC model. I felt very confident moving forward. If the savings figures they presented and committed to were wrong, they would be responsible for paying for the difference because Schneider Electric contractually guaranteed the energy savings.
Again, it’s a win-win. It just made sense to us.
“We knew exactly how much it would be and were confident in the ESPC model.”
— ROBERT SALINAS, CITY MANAGER, CITY OF ALAMO
Robert Salinas, City Manager, City of Alamo
Photo by Crystal Rodriguez
ESM: Was a third-party engineer (not associated with Schneider Electric) involved in evaluating the proposed project costs and savings prior to the City signing the contract?
Salinas: Yes, we did have a 3rd party engineer review everything prior to signing the contract.
ESM: Were there any change orders completed after the contract was signed?
Salinas: No.
ESM: What were some takeaways or challenges from this project that could be shared with other municipalities interested in a project like this?
Salinas: Thankfully, we did not run into any major issues outside general challenges during COVID-19.
Really, our largest hurdle was just communication. As a municipality, our constituents are our bosses. We are here to
With the completion of the infrastructure modernization project in the summer of 2022, Schneider Electric and the City of Alamo were able to address outdated water meters, upgrade lighting systems, and implement technology solutions. Bundled together, these efforts resulted in improved efficiency, reduced water loss, and significant energy savings for the City.
Following the completion of the project, AEP Texas, an energy delivery company serving South and West Texas, rewarded the City of Alamo with a $38,575 check for savings from its energy efficiency upgrades. The reward was part of the AEP Texas Commercial Standard Program, which offers incentives for the peak electric demand & energy reduction associated with new, highly efficient installations, such as LED lights.
Project implementation does not mark the end of the work, as the City of Alamo has ensured continuous monitoring and optimization of systems for efficiency and effectiveness. The success of this City modernization project can be attributed to transparent communication and citizen engagement, as well as the key partnership with a reputable Energy Service Company (ESCO) to deliver results for the Alamo community. Alamo’s Infrastructure Modernization Project is an encouraging example for other municipalities to pursue similar projects for modernization and efficiency gains.
serve them, and transparency is critical. If we are going to be spending millions of dollars on a project, we better have a good reason why. We put a large effort towards a communication and media plan.
As much as possible, we inform. For example, if you walk into our lobby today, you’ll see a banner sign that shows the savings that we have already gained and the savings we will achieve over the next 20 years.
We also educated our residents on the new customer portal, where they can see their water usage and what they are spending. We want people to look at everything that’s being sent regarding their water usage. If they aren’t home and the data shows that no water is being used, that’s a good thing— that means there are no leaks.
Another thing to take into consideration is the impact of installing new technology. We had to retrain our staff, and these meters were completely different from traditional mechanical meters.
PROJECT IMPACT
74% decrease in energy use with high-efficiency LED lighting
$39,500 in energy savings
YEAR 1 IMPACT
YEAR 20 IMPACT
$94,000 in lost revenue recovered
$38,575 rebate from AEP for the energy-efficient fixtures installed
Total savings over the next 20 years
$6.6M
PROJECT STATS
PROJECT TIMELINE
Initial conversations with Schneider Electric regarding the infrastructure project commence
Investment Grade Audit kickoff by Schneider Electric OCTOBER
Completion of the investmentgrade audit by Schneider Electric, providing detailed analysis and cost projections for the project DECEMBER
The City receives approval to move forward with the project
Initiation of the project implementation phase, including the installation of smart water meters and lighting upgrades
“This partnership is an example of what forwardthinking leadership can accomplish. The City of Alamo is distinguishing itself as a smart, innovative city, and Schneider Electric is proud to support their vision to build a sustainable infrastructure that will serve their community for generations to come.”
— AARON GARCIA, SENIOR ACCOUNT EXECUTIVE, SCHNEIDER ELECTRIC
WATER WEALTH: RECOUPING REVENUE AND SAVING ENERGY WITH SMART INFRASTRUCTURE
BY JULIE CHESNA
The financial stability of a local government is essential for consistently delivering vital public services, maintaining infrastructure, and fostering economic development, all of which collectively enhance the community’s well-being and resilience. It also builds public trust and ensures the government can respond effectively to emergencies and long-term challenges. On the other hand, aging infrastructure can leave a local government crippled with deferred maintenance and rising energy bills—ultimately impacting the taxpayers.
One of the most significant areas local governments can invest in is water infrastructure. As utilities’ water infrastructure ages, inefficiencies and water loss escalate, leading to substantial increases in maintenance and energy costs as the system exerts additional effort to compensate for the “lost water” to meet customer demand. Local governments are increasingly turning to innovative technologies to enhance their utility operations and bottom line. Among these technologies, smart metering, Advanced Metering Infrastructure (AMI), and distribution leak detection strategies stand out as transformative solutions that can help recoup lost revenue and achieve significant energy savings.
RECOUPING REVENUE
1. Enhanced Billing Accuracy:
Traditional mechanical meters degrade over time, leading to inaccurate readings and billing discrepancies. Smart meters read ultrasonically or electromagnetically, providing precise real-time data on energy and water usage. This accuracy ensures that consumers are billed correctly, eliminating revenue losses due to underreporting and inaccuracies. Accurate billing also builds customer trust and reduces disputes, streamlining revenue collection processes.
2. Reduction in Non-Revenue Water (NRW):
Non-Revenue Water, which includes water lost through leaks, theft, or meter inaccuracies, is a significant issue for many water utilities. AMI systems enable continuous monitoring of water flow and usage patterns, quickly identifying anomalies that may indicate leaks or unauthorized usage. Prompt detection and repair of leaks minimize water loss and recover revenue that would otherwise be lost.
3. Improved Meter Reading Efficiency:
Traditional meter reading is labor-intensive, requiring physical visits to each meter. Smart meters transmit usage data remotely, reducing the need for manual readings. This not only cuts down on labor costs but also eliminates the errors associated with manual data collection. The efficiency gains from remote reading translate into significant operational cost savings.
4. Real-Time Data Analytics:
Smart meters and AMI systems generate vast amounts of data that can be analyzed to gain insights into consumption patterns and demand fluctuations. Utilities can leverage this data to optimize their operations, improve demand forecasting, and implement dynamic pricing models that encourage off-peak usage. These strategies can enhance revenue streams and ensure a more balanced distribution of resources.
ENERGY SAVINGS
1. Optimized Energy Consumption:
Smart meters provide consumers with detailed, real-time information about their water usage, enabling them to make informed decisions about their consumption habits. By encouraging water-efficient practices, such as reducing wasteful use, smart meters help lower overall demand. This demand-side management is crucial for reducing the overall demand for water, minimizing the need for additional water treatment and the power needed to provide the water.
2.
Reduced Operational Costs:
By automating many aspects of utility operations, AMI systems reduce the need for manual interventions and maintenance. Automated meter readings, remote readings, and real-time monitoring streamline operations and lower the costs associated with maintaining and servicing the water metering infrastructure. These operational efficiencies translate into substantial savings over time.
Overall, water infrastructure is essential to a municipality’s financial health, public welfare, environmental sustainability, and overall operational efficiency. When local government leaders prioritize investment in their water systems, the benefits extend far beyond mere financial gains, fostering communi ty well-being and environmental stewardship.
WATER INFRASTRUCTURE UPGRADES IGNITE ENERGY EFFICIENCY AND RENEWABLE ENERGY IMPROVEMENTS AT LAS CRUCES
LIn March 2018, the City executed an Energy Performance Contracting (EPC) agreement with Johnson Controls to implement an Advanced Metering Infrastructure (AMI) program for 81,000 water and gas meters and deploy an automatic leak detection system. The project’s success motivated
Las Cruces leadership to extend the EPC in 2021 to include energy efficiency and renewable energy upgrades to the City’s water and wastewater facility and energy efficiency improvements to city facilities and parks. By utilizing a self-funding procurement vehicle, an EPC, the leadership of Las Cruces identified a truly sustainable solution that will positively impact the community, the economy, and the environment.
Organ Mountains, Photo provided by Johnson Controls
ocated in southern New Mexico at the foot of the Organ Mountains and along the banks of the Rio Grande, Las Cruces enjoys 350 days of sunshine a year. The City is home to more than 95,000 residents, making it the second-largest city in New Mexico.
PHASE 1
PROJECT SCOPE:
NEW AMI SYSTEM:
• Installation of the Itron ChoiceConnect AMI system for 81,000 water and natural gas meters
• Eliminate mobile and manual meter readings and substantially reduce operating costs
• Utility staff can proactively maintain utility revenue streams with the data analytics software
NEW ACCURATE WATER METERS:
• Replacement of 29,000 water meters with new more accurate, longer-lasting meters
• Superior accuracy at low flow rates translates into increased billable water and sewer revenues
• 20-YEAR WARRANTY
AUTOMATIC LEAK DETECTION SYSTEM:
• Installation of 18,000 Itron leak sensors immediately upstream of customer water meters
• Continuously identifies, prioritizes and maps probable and possible leak sites
• Utility staff can proactively reduce water losses
CUSTOMER WEB PORTAL:
• User-friendly web portal for all water and gas customers
• Real-time consumption analysis (history and trends)
• Alerts and notifications (leaks, high usage)
PHASES 2 & 3
PROJECT SCOPE:
ENERGY EFFICIENCY AND RENEWABLE ENERGY IMPROVEMENTS AT WATER AND WASTEWATER FACILITIES:
• Energy efficiency improvements at three wastewater plants
• Wasterwater Supervisory Control and Data Acquisition system
• Lighting, HVAC, & Direct Digital Control (DCC) system upgrades
• Cogeneration plant improvements
• El Paso Electric accounts—rate conversion
ENERGY EFFICIENCY IMPROVEMENTS AT 112 FACILITIES AND PARKS TOTALING MORE THAN 800,000 SQUARE FEET:
• Lighting improvements
• HVAC upgrades
• Energy management system
• El Paso Electric accounts—rate conversion
• Ongoing training programs
$450 THOUSAND $900 THOUSAND PER YEAR IMPACT INCREASE UTILITY REVENUES BY APPROXIMATELY REDUCE OPERATING COSTS BY MORE THAN $1 MILLION PER YEAR IMPACT REDUCE OPERATING COSTS BY MORE THAN GUARANTEED ENERGY
$18.7 MILLION
4 STEPS TO REDUCE GRID STRAIN
BY LIZ JOHN, MANAGING DIRECTOR & SHAUN AUCKLAND,
LOCAL GOVERNMENT PROGRAM MANAGER, SOUTH-CENTRAL PARTNERSHIP FOR ENERGY EFFICIENCY AS A RESOURCE (SPEER)
Local governments and their leaders are playing a mounting role in the fight for resiliency to combat increasing extreme weather-related issues wreaking havoc on local economies, its residents, and infrastructure. Texas county leaders and city managers can overcome many of our current grid-related issues by increasing energy efficiency in our buildings and training facility operators to properly manage these energy-consuming structures. During periods of peak demand, of which ERCOT set 11 new records in the summer of 2023, the main contributors are often small commercial (and residential) buildings, contributing up to 70% of the load during those vital hours. Lack of energy efficiency measures such as adequate insulation, proper duct work, and sealing gaps in windows and doors, are often the root of the cause, however this is not the only source. Many of these buildings are old and were built prior to energy code implementation. Unless steps have been taken to retrofit these buildings, they most likely do not have proper controls and automation that can aid in reducing energy consumption. Potential solutions include installing smart devices, such as smart thermostats, heat pump water heaters, sensors and automatic controls, while also ensuring the workforce receives suitable training to fully utilize their benefits. When well trained and educated facility managers can effectively improve the operation of buildings through energy efficiency implementation the results lead to more sustainable, efficient, and cost-effective public infrastructure. Let’s dive into several actionable steps that can reduce energy consumption, lower operating costs, and ultimately alleviate strain on the grid.
1. Energy Audits and Benchmarking: Cities can and should conduct regular energy audits to identify inefficiencies. The first step to saving energy at your building is to benchmark, and a great place to start is benchmarking your building with ENERGY STAR’s Portfolio Manager, which measures and compares your building’s energy use to similar buildings, past consumption, or a reference performance level. This will help identify operation gaps.
2. Upgrading Building Systems: According to the U.S. General Services Administration, commercial building space cooling and heating systems represent 44% of energy consumption in U.S. buildings. Replacing outdated HVAC systems, lighting, and insulation with energy-efficient alternatives is a guaranteed way to not only increase your building’s comfort and efficiency, but also lower utility bills. To further increase savings, you can implement smart building technologies for real-time energy management.
3. Maintenance and Operations: To help combat grid strain often caused by the built environment, building owners and cities can adopt preventive maintenance practices. This will ensure equipment runs efficiently and staff is trained on energy-efficient practices and the importance of regular maintenance. A nationally recognized training program that does just this is the Building Operator Certification (BOC). BOC teaches building operators to competently manage many moving pieces from HVAC and electrical systems, to lighting, code compliance, data collection and more.
4. Funding and Grants: The Property Assessed Clean Energy (PACE) model is a great way to help fund efficiency upgrades in commercial buildings and other structures. As of 2022, more than 38 states and the District of Columbia have enacted PACE enabling legislation for commercial buildings. For example, Texas’s program is known as Texas Property Assessed Clean Energy (TX-PACE). When local governments approve and adopt PACE statutes they help reduce peak demand, enhance grid reliability, expand distributed generation as resilient power source, and improve their community’s air quality and water conservation. PACE programs enable building owners to lower their operating costs and use the savings to pay for eligible water conservation, energy efficiency, resiliency, and distributed generation projects. PACE is a proven financial tool that incentivizes property owners
to upgrade facility infrastructure with little or no capital outlay. Approved by State legislation and established by local governments, building owners gain access to private, affordable, long-term (typically 10-20 years), low-cost fixed rate financing that is not available through traditional funding avenues.
The need to enhance energy efficiency, reduce operational costs, and maintain feasible, effective practices spotlights the essential role facility managers play. Applying the right measures can yield significant and immediate benefits. While we touched on several steps cities can take to help improve their community’s efficiency and energy waste, several measures stand out to further shift energy usage and help build a more resilient grid.
Switching to LED lighting systems, particularly for street lighting, is a straight forward and impactful measure. LED technology is known for its superior energy efficiency and long lifespan compared to traditional lighting options. This upgrade not only reduces energy consumption but also significantly cuts maintenance costs due to the longer intervals between replacements. For instance, El Paso, Texas, implemented an LED streetlight retrofit and anticipates $2.4 million in annual savings from avoided costs and maintenance. The energy savings and durability of LEDs make this an attractive option for facility managers aiming for quick wins in energy efficiency and cost reduction.
Effective temperature management and adjusting indoor temperatures during peak demand periods, often through incorporating demand response technologies, has a significant impact on efficiency and utility savings. Even buildings designed for maximum efficiency can experience significant energy wastage due to improper occupant behavior and inefficient operation of building systems.
Not turning off lights when a room or building is not in use or failing to program thermostats correctly can lead to unnecessary energy consumption. Former ASHRAE president Gordon Holmes highlighted in the “2009 Energy Efficiency Guide for Existing Commercial Buildings: The Business Case for Building Owners and Managers” that operational changes could result in a 10-40% reduction in energy use. As mentioned earlier demand response is a demand-side strategy that helps to optimize energy use, reduce peak demand charges, and enhance overall building performance.
The adage “You can’t manage what you don’t measure” underscores the importance of energy benchmarking. Energy benchmarking allows facility managers to identify inefficiencies, track improvements, and set performance goals. Free resources are often available through regional energy efficiency organizations (REEO) and state energy offices. Benchmarking tools, such as the Texas Benchmarking Toolkit, can be found on SPEER’s website, and the Texas State Energy Conservation Office (SECO) offers remote audits and onsite preliminary energy assessments. By utilizing these tools, facility managers can gain insights into their energy use, identify cost-saving opportunities, and effectively manage energy and water consumption.
To conclude, implementing LED lighting systems upgrades, adjusting temperatures during peak demand, conducting energy benchmarking, and the adoption of PACE are highly effective measures for facility managers. These strategies not only provide immediate impacts in terms of energy efficiency and cost savings but also ensure the long-term sustainability and optimal performance of facilities. By adopting these practices, local governments can achieve sig nificant improvements with minimal disruption and investment.
LIZ JOHN, MANAGING DIRECTOR, SPEER
As the Managing Director, Liz builds relationships with funders, partners, and members to manage day-today internal operations, including communications, deliverables, and reporting. Liz has been with SPEER for the past 10 years and in her current role she works closely with staff and the organization’s efficiency initiatives to ensure that all SPEER programs achieve success and meet the SPEER’s mission of expanding energy efficiency products and services as well as promote sustainability in our communities. Alongside SPEER’s Executive Director, she closely monitors grant statuses to achieve maximum outputs for federal, state, and private grants.
SHAUN AUCKLAND, LOCAL GOVERNMENT PROGRAM MANAGER, SPEER
Shaun Auckland manages the Local Government Program for SPEER. With over 15 years of experience, Shaun has developed, led, and implemented strategic waste diversion programs across various sustainability sectors, including greenhouse gas inventory, energy and water conservation, and policy development.
The South-central Partnership for Energy Efficiency as a Resource (SPEER) is a regional energy efficiency organization (REEO) that aims to accelerate the adoption of advanced building systems and energy efficient products and services in their region, Texas and Oklahoma.
UNLOCKING ENERGY EFFICIENCY WITH
PCOLLABORATIVE PARTNERSHIPS
A ND F EDERAL INCENTIVES
BY DR. TIMOTHY UNRUH, EXECUTIVE DIRECTOR, NATIONAL ASSOCIATION
OF ENERGY SERVICE COMPANIES (NAESCO)
ublic buildings are the heartbeat of our communities, housing essential services that keep the community safe, secure, and operational while providing access to resources that foster community engagement. Unfortunately, many of these buildings are inefficient due to aging infrastructure, putting critical facilities at risk. Whether it’s a city hall, a K-12 school, or a state agency office, upgrading public buildings with energy-efficient measures protects them from vulnerabilities such as extreme heat, deteriorating air quality, and fluctuating utility costs.
So, why aren’t more public buildings being upgraded to become energy efficient?
Too often, procuring capital infrastructure projects to implement energy efficiency measures gets deprioritized due to the challenges that public entities face: budget limitations, the time and complexities of getting stakeholder approval, and the financial risk the building owner assumes. However, these challenges can be overcome with the right partner and strategic utilization of available federal incentives.
THE PARTNER
When creating the scope for energy efficiency projects, it is advantageous to seek a partner with a vested interest in the project who will work in collaboration with you. Energy efficiency can be driven by a variety of measures, and innovative ideas from experts in the field can identify areas that may have been missed. Energy Service Companies (ESCOs) specialize in designing, constructing, and implementing solutions to enhance building infrastructure and create energy-efficient buildings. ESCOs collaborate closely with their clients to identify all potential opportunities and jointly develop the project scope, leveraging both their expertise and the client’s specific needs.
ESCOs are long-term partners, with contracts ranging from 15 –20 years. Most of their work is public buildings, so they understand the complexities of getting a project started and ultimately across
the finish line. ESCOs typically operate under a performance-based contract called an Energy Savings Performance Contract (ESPC). The ESPC can be financed utilizing cost-effective financing and repaid through the energy savings of the project, which is financially guaranteed by the ESCO. The financial and operational risk that the building owner typically bears is shifted to the ESCO because if the savings do not materialize the ESCO pays the difference.
This partnership and contracting vehicle opens the door for larger, more impactful projects, which are typically self-funded and carry little risk to the building owner.
THE FEDERAL INCENTIVES
Public buildings are well-positioned to receive grants or tax incentives from the federal government. We have seen waves of funding opportunities being distributed from the Bipartisan Infrastructure Law (BIL) and Inflation Reduction Act (IRA) to encourage building retrofits to reduce greenhouse gas emissions and become more energy efficient.
While federal dollars are impactful, the funding allotted may still not be enough to fully fund a comprehensive infrastructure project. This is where the value comes from forming a partnership with an ESCO; federal dollars can be leveraged when combined with an ESPC. In an ESPC, the cost of making energy-efficient improvements is typically covered by the future savings these improvements generate. Federal dollars—whether through direct funding, grants, or tax incentives—can supplement the financing of these projects. This can enable larger, more comprehensive energy upgrades or ensure that upfront costs are minimized, making these projects more accessible and financially viable. Essentially, the combination of federal dollars with ESPCs can help stretch each dollar further.
ESCOs can also provide guidance on what funding, grant, or tax incentives the project qualifies for. They have a consistent pulse on opportunities coming from the federal government.
Here are a few opportunities available to public buildings:
Investment
Tax Credit (ITC), IRA
The ITC is primarily used for solar energy projects, but it can also apply to other renewable energy systems like wind, geothermal, and fuel cells. It allows eligible entities to deduct a significant percentage of the cost of installing these systems from their federal tax liability. Because public sector organizations do not file federal taxes, in the past, they were unable to directly benefit from Investment Tax Credits. Recent changes to the ITC allow public sector clients to receive a “direct-pay” option that allows them to recoup tax incentives by filing a tax form and receiving a return from the Internal Revenue Service.
Energy Efficient Commercial Buildings Deduction (Section 179D), IRA
The Energy Efficient Commercial Buildings Deduction (Section 179D) applies to energy-efficient improvements made to commercial buildings, including schools. It allows for a tax deduction for the full cost of installing energy-efficient systems to a building’s envelope, HVAC (heating, ventilation, and air conditioning) systems, and lighting systems. The IRA has expanded and extended this incentive, making it more accessible and increasing the maximum deduction amounts, thus encouraging more widespread adoption of energy efficiency measures in commercial spaces.
Energy Efficiency and Conservation Block Grant (EECBG) Program, BIL
The Energy Efficiency and Conservation Block Grant (EECBG) Program aims to assist state and local governments in advancing their energy efficiency initiatives. The program provides funding to help these governments implement strategies to reduce energy use, cut carbon emissions, and improve overall energy efficiency in their communities.
DR. TIMOTHY D. UNRUH, PH.D., PE, CEM, LEED-APR
Renew America’s Schools Grant, BIL
The Renew America’s Schools Grant provides funding for a wide range of energy efficiency projects, including upgrading HVAC systems, lighting retrofits, insulation improvements, and the installation of energy management systems for schools. By covering a substantial portion of project costs, the grant enables schools to implement comprehensive energy-saving measures that might otherwise be financially out of reach.
Energy Efficiency Revolving Loan Fund Capitalization Grant, BIL
The Energy Efficiency Revolving Loan Fund Capitalization Grant is designed to attract and leverage private capital for more extensive energy efficiency projects. These projects aim to significantly reduce greenhouse gas emissions and enhance energy savings. The grants help establish or bolster revolving loan funds, which provide ongoing financial support for energy efficiency upgrades as loans are repaid and reissued for new projects.
A PROVEN SOLUTION
Collaborating with ESCOs and utilizing ESPCs is a proven way to procure capital infrastructure projects. Effectively utilizing a performance-based contract business model, ESCOs have implemented more than $70 billion in comprehensive energy efficiency retrofit projects over the last three decades.
Act today! To overcome any challenges you are facing upgrading your facilities, turn to an ESCO. They can provide guidance and support as you embark on creating energy-efficient buildings. A list of vetted and accredited Energy Service Companies can be found on NAESCO’s website: naesco.org/accredited-companies
Dr. Timothy D. Unruh is the Executive Director of the National Association of Energy Service Companies (NAESCO). In this role, he manages the representation of its members, Energy Service Companies.
Prior to this role, Dr. Unruh was the Deputy Assistant Secretary of Renewable Power at the Energy Efficiency and Renewable Energy (EERE) Office of the US Department of Energy (DOE). As the Deputy Assistant Secretary, Dr. Unruh managed the nation’s renewable power research, while also providing oversight to the Grid Modernization Initiative.
Also, while at the DOE EERE, Dr. Unruh directed the Federal Energy Management Program (FEMP). As FEMP Director, Dr. Unruh oversaw the implementation of policy and actions that resulted in energy efficiency implementation, renewable energy adoption, and reductions in energy and water use in Federal government operations.
Dr. Unruh has a doctorate, a master’s degree, and a bachelor’s degree in electrical engineering from Wichita State University in Wichita, Kansas.
The National Association of Energy Service Companies (NAESCO) is the leading advocacy and accreditation organization for Energy Service Companies (ESCOs) and is dedicated to modernizing America’s building infrastructure. Uniting the energy service industry, NAESCO promotes favorable government policies, sponsors a rigorous accreditation program, provides training and education, and champions the interests of ESCOs across the nation.
REIMAGING SOLAR INSTALLATIONS:
ADDING BEAUTY , SAFETY, SHELTER, AND CONNECTIVITY IN PUBLIC SPACES
BY BRIAN GRAFF, CEO & CO-FOUNDER SOLAR FORMA DESIGN
When we think of solar installations, we often think of rows upon rows of solar panels installed in fields and on roofs. Ground-based solar is land-intensive, and rooftop solar installation can be limited based on the condition of the building. What if there was another option, one that did not require a lot of land and wasn’t dependent on a building’s condition—an option that served more than just the function of generating energy?
There is, it’s an E-Cacia Solar Tree.
Manufactured by Solar Forma Design in Eau Claire, Wisconsin, the E-Cacia Solar Tree was developed to integrate solar generative elements into human spaces and contribute to place-making in public spaces: city parks, college campuses, corporate campuses, healthcare campuses, zoos, amusement parks, wherever people live, work, play, and learn. The tree canopy, ranging from 17 to 22 ft tall, can be grid-tied or standalone, with scalable battery storage to accommodate varied site demands with 3.5 kW of Mono-cSi PV-module generative capacity.
But what sets this solar installation apart is its nature-inspired functional design.
NATURE-INSPIRED BEAUTY
Up until now, the primary design focus of solar has been to serve a utilitarian function: generate clean electricity by capturing sunlight. Solar Forma’s products deliver this utilitarian function, but also create a high-profile, complementary asset that cultivates public well-being and place-making through deliberate design. In so doing, the products redefine the relationship between renewable energy and public spaces. Designs are inspired by nature - the E-Cacia’s design mirrors the Acacia tree, an iconic symbol of the southern and eastern African savanna. The umbrella dome of their canopy is an evolutionary adaptation that enables the trees to capture the maximum amount of sunlight with the smallest of leaves.
Solar Forma’s products, like the E-Cacia, optimize public perception of solar infrastructure by expanding acceptance, visibility, and installation locations. The artful design of products and the elements that define our communities’ living spaces that add an aesthetic quality are inherently sought out and valued by people.
SAFETY
The tree features a programmable high-lumen LED lamp concealed within the main juncture of the tree that projects light upward and then reflects it back down from the underside of the canopy. The lights are motion-activated and will brighten and dim based on the ambient outdoor sunlight levels and movement under the tree. When thinking about common areas for students, pedestrians, employees, etc., well-lit outdoor spaces contribute to safety, reducing the risk of accidents, crime, and falls. These lighted areas are inherently welcoming and facilitate accessibility and broaden usability. Having well-lit spaces can boost community health by encouraging outdoor activities, such as walking and jogging, even after sunset.
SHELTER
The tree canopy measures up to 22 feet tall, encompassing 440 square feet, providing shelter and shade. When grouped in multiples of 2 to 5 trees, they can create significant shade areas. There is a version in development that adds water misting to the underside of the canopies, creating an active cooling function. Shade and cooling are becoming increasingly important in an ever-warming world. Solar Forma’s latest test models indicate that the combination of shade and misting can create a micro-climate under the tree canopies that is up to 20 degrees Fahrenheit cooler than the surrounding sunlit ambient air temperatures. A game-changing climate adaptation that can keep public parks and urban areas viable and usable in the face of extreme heat events that are starting to become ever more common.
CONNECTIVITY
With 3.5 kW of generative capacity, the E-Cacia easily charges user devices and may be scaled to charge electric vehicles and e-bikes.
The renewable energy sector and the transition to a net zero-carbon society can benefit from embracing a new approach to design in the solar category. By integrating these products more directly into people’s lives, we can inspire confidence that these energy forms can provide for our current and future energy needs. Familiarity breeds trust and expanding installations within the built landscape can hasten and accelerate the adoption and uptake of renewable energy technologies overall.
ABOUT SOLAR FORMA
Brian Graff, CEO & Co-Founder, Solar Forma
In 2019, I founded Solar Forma Design. From the start, it was intended to be a different kind of solar company based on a wildcat idea that was built upon a seemingly unimportant quality in the solar world: artistic product design.
Before starting Solar Forma Design, I was a business development consultant for a conventional solar company. We focused on various installations—rooftop, ground-based, residential, commercial, and agricultural. While our technology was efficient and cost-effective, and it reduced CO2 emissions, I always felt something was missing. Our installations weren’t visually pleasing or enhancing properties. They were functional but didn’t add beauty to buildings or enhance their surroundings. They sometimes felt like space-takers rather than place-makers.
Using the established engineering and design concept called BIOMIMICRY, we set about developing products that emulated the designs and processes found in nature. Our first product was a “solar tree,” the E-CACIA, designed after the iconic Acacia Tree of the African savanna. Our second product draws upon the inherent attraction that the surface of water seems to hold for people. The WAVE Solar Carport adds this simple element of design interest in the form of wave designs as an alternative to utilitarian flat-panel carports. Our third product is inspired by the huge leaves and flora of the Amazon and Asian rainforests. The SOLAR PODS are outdoor meeting and seating areas for two to four people. They are mobile and completely self-contained with their own power storage systems.
Don Norman, a design professor at The University of California, San Diego and author of “The Design of Everything Things” states: “It is not enough that we build products that function; we also need to build products that bring joy and excitement, pleasure and fun, and yes, beauty to people’s lives.”
By allowing architects, urban planners and others who are charged with place-making to incorporate solar as an integral element of their scenescapes, we hope to advance the proliferation of solar into the new energy future. Our goal is to elevate solar’s acceptance by fostering space utilization, encouraging connection, optimizing perception, advancing functionality to enrich public settings and to impress upon people how solar can replace fossil fuels and support the activities that define our lives.
www.solarformadesign.com 715-828-1736
briangraff@solarformadesign.com
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