What is a Guaranteed Energy Savings Performance Contract (GESPC) NM law and history of PC in the state What is the process What are the benefits How are they structured GSD/FMD LEADING BY EXAMPLE NEW MEXICO LOOKING FORWARD A construction project on a facility that uses future energy savings to pay for up-front costs of the project - eliminating the need to dip into capital budgets. These qualified construction measures include BUT are not limited to: Lighting upgrades Solar PV installation, Battery storage Heating, air conditioning, boilers upgrades Chiller replacement, building controls Transformers, Envelope Partnered Governor Michelle NM State with DOE in Lujan-Grisham Signs Legislation Passed House Bill the Better Executive Order Enabling ESPC 603 July 2009 Buildings joining the U.S. CERB Challenge Climate Alliance Legislation $15 million ESPC Several ESPC Project at Projects NMSU Completed Thru 2004 Audit Finance Verify Selection Implement the the the of ESCO ECM’s Facility Project Savings DO NOTHING – INFRASTRUCTURE GETS WORSE AND ENERGY COSTS GO UP IMPROVE FACILITIES WITH 3RD PARTY RESOURCES AND REDUCE ENERGY COSTS SCOPE OF GUARANTEED WORK WORK, NO CHANGE ORDERS SAVINGS GUARANTEED GUARANTEED PAYBACK TIME ENERGY/COST TERM PERIOD SAVINGS Provides a Self Funded solution for an Energy Project. Future Energy Savings will PAY for the Project. Provides added funding to Supplement the Energy Project. Future Energy Savings will: Supplement the Project budget Allow the Project scope to be expanded It will save The project 52% on kWh will save GSD (electricity), ESPC TOTAL TOTAL Annual 50% on the 16% on Square ESPC Cost - Tax - PROJECT Guaranteed current therms (gas), COST - Savings - Footage – $29,291,327. $2,480,539. baseline utility and 5,200 $31,771,866. $1,167,469. 1.7 million spend in gallons of Santa Fe. water per year https://www.generalservices.state.nm.us/green-energy-project.aspx CENTRAL CAMPUS SOUTH CAMPUS EAST CAMPUS WEST CAMPUS DPS CAMPUS BSD Grounds Service Harold Runnels PERA Toney Anaya Headquarters Bataan Memorial Joseph M. Montoya Lew Wallace Garrey Carruthers Lea Dormitory Paul Bardacke – Villagra John F. Simms Jr. Lamy Willie Ortiz C-NMSP Concha Ortiz y Pino Wendell Chino Plant T-187 Academy Casitas at Don Gaspar Manuel Lujan Sr. Fleming Evidence Storage BSD Central Maintenance Public Health Nurses Surplus Property E-Auto Shop Jerry Apodaca Building State Printing D-Communications Motor Pool MVD Field Office ECM-1 Lighting Upgrades ECM-7 Simms ECM-3 Building Data Center Envelope Upgrades Upgrades ECM-5 Transformer Upgrades DOES THE PROJECT HAVE MECHANICAL OR ELECTRICAL IMPROVEMENTS? ARE YOU REPLACING LIGHTING (INTEROIR/EXTERIOR)? ARE YOU LOOKING AT DOING THE IMPOVEMENT IN PHASES? IS THE PROJECT SHORT ON CAPITAL? NM 2019 LIFETIME Total ESPC Projects 10 28 Total Project Cost $ 111,294,350 $ 199,310,093 Total Project Cost Financed $ 49,258,102 $ 130,089,722 Annual Guaranteed Savings $ 3,844,327 $ 9,581,130 Area (SF) 5,872,860 19,162,862 Gas Savings (therms/year) 311,832 1,237,899 Electric Savings (kWh/year) 30,186,232 61,173,471 Water Savings (gal) 9,296,547 29,096,433 Greenhouse Gas Savings (lbs CO2e / Year) 60,762,787 130,652,866 Average Energy Use REDUCTION 36.5% 33.5% Item Project Amount Before NMGRT $19,454,008 NMGRT $1,532,003 Total Project Amount $20,986,011 Year 1 Guaranteed Savings $158,492 % Reduction in Annual Utility Costs 50% Capital Contribution by NM Legislature $12,000,000 Capital Contribution by Agency $3,500,000 Estimated Utility Rebate $41,674 Financed Amount $5,879,476 Finance Term 25 Years Construction Period 22 Months Environmental Impact (Annual Reduction) 1.19M lbs CO2 Project Amount Before NMGRT $15,227,386 NMGRT $1,272,090 Total Project Amount $16,499,476 Year 1 Guaranteed Savings $152,503 % Reduction in Annual Utility Costs 31% Capital Contribution by NM Legislature $0 Capital Contribution by Agency $16,499,476 Estimated Utility Rebate $21,533 Financed Amount $0 Finance Term 0 Years Construction Period 20 Months Environmental Impact (Annual Reduction) 1.88M lbs CO2 .