An Introduction to CCI American Council for an Energy Efficient Economy (ACEEE) April 1st, 2008 Washington, DC

Size: px

Start display at page:

Download "An Introduction to CCI American Council for an Energy Efficient Economy (ACEEE) April 1st, 2008 Washington, DC"

Rhoda Hart
6 years ago
Views:

1 An Introduction to CCI American Council for an Energy Efficient Economy (ACEEE) April 1st, 2008 Washington, DC Please consider the environment before printing this document

2 The William J. Clinton Foundation Initiatives Alliance For A Healthier Generation Clinton Climate Initiative Clinton Economic Opportunity Initiative Clinton Foundation HIV / AIDS Initiative Clinton Global Initiative Clinton-Giustra Sustainable Growth Initiative Clinton-Hunter Development Initiative 2

3 The Clinton Climate Initiative Mission Make a difference in the fight against climate change in practical, measurable, and significant ways. The CCI Approach Generate political will Convene stakeholders Stimulate markets Remove barriers to scale-up Organize partners Mobilize resources Share best practices Measure success 3

4 The Clinton Climate Initiative Cities Initiative As its first project, CCI is serving as the implementing partner of the C40, an association of 40 large cities and 15 progressive cities around the world. We are assisting these cities to implement large-scale projects that reduce energy consumption, use clean energy, and reduce greenhouse gas emissions. Extending Our Impact US Conference of Mayors K-12 Schools U.S. Green Building Council American College & University Presidents Climate Commitment Technical Partnerships Corporate Partnerships 4

5 Where We Work 5

6 CCI Programs Building Retrofits Ports Solid Waste Management Transportation Airports Developing Countries Initiative Clean Energy Purchasing Alliance Water and Wastewater Measurement Tools 6

7 Supporting Infrastructure GLOBAL PROGRAM TEAMS PURCHASING ALLIANCE CITIES ORGANIZATION MEASUREMENT TOOLS 7

8 Energy Efficiency Building Retrofit Program 8

9 Building Retrofit: Overview Building Owners (public & private) Provide buildings Define project CCI ESCOs Do energy efficiency work Provide performance contract & guarantee of energy savings Financial Institutions Provide capital Provide new financing structures 9

10 Building Retrofit: Approach Focus on Existing Buildings 50 70% of GHG in urban areas Use 25% more energy than new buildings Typical Building Lifecycle Costs Financing 14% Design & Construction 11% 75% of building s costs are after construction Integrated whole building systems Alterations, Energy & Operations 75% 10

11 Role of the City/Owner Select buildings for program participation Establish cross-functional team and leader to manage project Remove municipal barriers to EPC tendering, permitting, and project implementation Qualify ESCO and financial partners for services Adopt policies to encourage private sector building owners to invest in energy efficiency 11

12 Role of Energy Service Companies (ESCOs) ESCOs have agreed to provide Energy Service Performance Contracts (EPC S) EPC s used by U.S Govt. and many municipalities Contract agreements w/ owners include a PERFORMANCE GUARANTEE Savings repay cost of finance ESCO compensates for shortfall Ameresco Carrier Chevron Energy Solutions Constellation Energy Honeywell Johnson Controls, Inc. Noresco Schneider/TAC Siemens Trane 12

13 Energy Performance Contract: How it Works RFQ and selection of ESCO Preliminary energy audit Recommendations Performance/Contract agreement Investment Grade Audit Implementation Ongoing measurement and verification 13

14 CCI Negotiated Terms and Conditions Minimize project costs Ensure best practices Guarantee maximum price Gainsharing Transparency 14

15 EPC Payback Model Debt Financed Project During the contract s guarantee period, most of the energy savings are allocated to paying the debt service on the project Customer typically retains all savings beyond those allocated to project financing debt service 15

16 Benefits of the EPC Approach Guaranteed results Lower energy use Lower building energy costs Capped project cost Turnkey implementation One accountable party (ESCO) Self-funded Ensures source of funds to repay finance costs Avoids need to fundraise and/or divert funds from existing operating budget 16

17 CCI Purchasing Alliance Global agreements with suppliers for energy efficient technologies based on volume aggregation and stimulation Product selection criteria: Impact on GHG Quality and innovation Price discount Price discounts Discounts typically 5%-40% off best customer prices based on order size, local market conditions, and city/esco specifications BUILDING PRODUCTS 3M BASF-PFE Carrier Optimum Energy Solar Gard Tremco Roofing LIGHTING PRODUCTS Acuity Brands Lighting Cooper Lighting Dialight Inc. General Electric Lemnis Lighting Leotek Electronics OSRAM Philips Lighting Sylvania NOTE: Supplier inclusion in the CCI Purchasing Alliance does not constitute an endorsement or certification of the supplier by CCI or the William J. Clinton Foundation, nor a recommendation to purchase the supplier s products. 17

18 Role of Financial Partners CCI financial partners committed to ensuring financing by: Identifying the best financial solutions available to participants Providing loans not grants -to qualified building owners at competitive market rates Exploring the use of ESCO performance guarantees to provide security for loans CCI Financial Partners ABN AMRO Citibank Deutsche Bank Hannon Armstrong JP Morgan Chase UBS 18

19 Role of CCI in Financing Climate Projects In all cases, CCI works with financial institutions to ensure low-cost, competitive, and replicable financing structures Provide analysis of potential financing options Ensure range of capable financing parties are aware of potential transaction Encourage financial partners to propose cost-efficient ideas Promote scale and finance more than one project at once, bringing costs down 19

20 CCI s Solution/Action-Oriented Approach Facilitate project development and implementation Provide technical assistance on system design and requirements Provide access to discounted energy-efficient products Orchestrate project financings Facilitate best practice 20

Deploying High Efficiency Outdoor Lighting: Regional Streetlight Procurement Program (RSLPP)

Deploying High Efficiency Outdoor Lighting: Regional Streetlight Procurement Program (RSLPP) Michael Fuller President, Keystone Lighting Solutions RSLPP Technical Advisor and Owner s Agent August 21 st,