100 years of excellence annual - acec

100 Years of Excellence

2017annual convention

and legislative

summitAPRIL 23-262017

MARRIOTT WARDMAN

PARK

COMPENDIUM OF MATERIALS

THE FUTURE OF INFRASTRUCTURE IS HERE

Learn more at autodesk.com/infrastructure

Apollo 11 VR Experience: Crew Couches

Experience VR at Autodesk’s booth, #212 in the Exhibit Hall. • Apollo 11 Capsule• USS Arizona

Sunday, April 23 - Tuesday, April 25

Tuesday, April 25 - 11:45am - 1:15pmDigitalization, Analytics, and Augmented Reality – Driving Change in the AEC Industry

• Professor Markus Buehler, Department Head, Civil/Environmental Engineering, MIT• Terry Bennett, Senior Industry Strategist, Autodesk• Scott Pawlowski, Chief of Cultural and Natural Resources, National Park Service• David Winslow, Civil Engineering/GIS Coordinator, Bureau of Reclamation• Pete Kelsey, Strategic Projects Executive, Autodesk

Virtual Model of the USS Arizona

www.chartwellfa.com | 866.232.8258

70+ CLIENTSIN THE AEC SECTOR

EXPERT FINANCIAL ADVISORS TO MIDDLE MARKET COMPANIES

“For nearly 20 years, the team at Chartwell has not only done a great job of conducting our annual valuation, they have been our strategic partner as we grew our ESOP from inception in 1995 to the mature 100% ESOP ownership structure we enjoy today. Chartwell has consistently provided us with timely and valuable counsel regarding our options as our ESOP evolved, and helped us educate our employee owners along the way.”

Jon Carlson CEO, Braun Intertec Corporation

Chartwell is proud to be a Gold Sponsor of the2017 ACEC Annual Convention and the Anchor Sponsor of the

CFO Council’s Finance Track for the 7th consecutive year!

ADVISORY

CORPORATE FINANCE

TRANSACTION OPINIONS

VALUATION

▪ Ownership Advisory ▪ Executive Compensation & Benefits ▪ Risk Mitigation

▪ Corporate ESOP Advisory ▪ M&A Advisory ▪ Private Capital Markets, Debt

& Equity

▪ ESOP & ERISA ▪ Estate & Gift ▪ Equity Compensation ▪ Financial Reporting ▪ Corporate Planning

▪ Fairness Opinions ▪ Solvency Opinions

www.newforma.com

Sponsored by

© 2016 Newforma, Inc. Newforma is a registered trademark of Newforma, Inc., in the United States and in other countries. All other brands or products are trademarks or registered trademarks of their respective holders.

Paying a Price Even When Innocent?

No matter how diligently we work on behalf of our litigation clients, our success can be constrained when clients don’t have a complete, searchable project record. With proper procedures and technology in place there is no longer an excuse to live with this risk.”

— Brent Gurney Partner at WilmerHale

Attend this ACEC Convention sessionand visit Newforma at booth #213

No Disputing It: Risk Mitigation Strategies

Too often firms are unfairly held accountable for problems because the evidence absolving them cannot be located. This panel discussion features firm principals and an experienced litigator sharing insights into ways to protect your business. The discussion will emphasize best practices in managing email and other project data.

Learn more, and add to your calendar: newforma.com/acec-risk-mitigation

Brent Gurney, Partner at WilmerHale

Monday April 24, 20172:15-3:30 pm

WilmerHale's global team of nearly 500 litigators and controversy professionals handles highly complex and sensitive matters in all aspects of litigation and dispute resolution.

Harness Your Knowledge Potential

Monday, April 24 – 11:00am – 12:15pm

Presented by Darryl Williamson, BST Global Create a workplace culture that encourages and fosters knowledge sharing and collaboration among staff.

ABOUT THE SPEAKER

Darryl is BST Global's Product Director of Knowledge Management, Product Director of Information Delivery, and a member of the BST Global Executive Management Team. Darryl leads product envisioning and product management for the reporting, analytics, performance management, collaboration, and document management aspects of BST Global's software solutions.

ESOP as an Ownership Transition Option


Presented by Joe Skorczewski, Chartwell; Howard Kaplan, First Bankers Trust Services Designed for those evaluating an Employee Stock Ownership Plan (ESOP) as a potential ownership transition alternative. An overview of the advantages, disadvantages, pitfalls and risks of ESOPs; why ESOPS are prevalent in the engineering industry; and case studies of successful transitions to ESOPs.

ABOUT THE SPEAKERS

Joe has significant experience working with companies in the architectural, engineering, and consulting market. Much of his professional career has been dedicated to Employee Stock Ownership Plans and providing independent financial advisory services to Board of Directors, ESOP Trustees, and other corporate fiduciaries. He advises clients on various corporate finance, valuation, tax, and fairness issues for ESOPs, mergers & acquisitions, recapitalizations, divestitures, and general corporate related purposes.

Howard has more than 25 years in the trust banking industry, where he developed a concentrated expertise in institutional trustee services for employee stock ownership and qualified retirement plans. He is a member of the ESOP Association Legislative and Regulatory Committee and served on the Interdisciplinary Committee for Fiduciary Issues.

Opportunities and Challenges in Non-Traditional Re-Development Projects


Presented by James Hencke, David Evans and Associates; Jim Durrett, Buckhead Community Improvement District; Dennis Carmichael, Parker Rodriguez, Inc.; Anjuli Bakhru, FEHR & Peers Explore “out of the box” development opportunities of non-traditional projects that range from highway deck parks to repurposing of obsolete buildings.

ABOUT THE SPEAKERS

Jim Hencke PLA ASLA leads urban design and landscape architecture for David Evans and Associates Inc.’s national transit, transportation, and land development practice. Based in Portland, Oregon, his creative approach integrates infrastructure and development, user experience, aesthetics, and landscape to achieve projects and places of lasting value.

Jim Durrett has in-depth expertise in transportation, land use and creating livable communities. He is executive director of The Buckhead Community Improvement District (CID) – a local governmental entity with taxation power. They meet the challenges of growth by investing tax dollars collected from commercial property owners to make meaningful improvements in the transportation network and public realm that connect people and places.

Dennis is a licensed landscape architect with 35 years of experience creating award-winning parks, plazas, and waterfronts. He spent most of his career at EDAW, where his work included Wharf District Park in Boston, Centennial Olympic Park in Atlanta, North Shore Park in Pittsburgh, and West Main Street in Louisville.

Anjuli provides a diverse background in traffic operations and simulation, including technical expertise in applications such as SYNCHRO, HCS, and VISSIM. She has served as technical lead or Project Manager for numerous high profile transportation projects which have included traffic engineering, regional bicycle facilities planning and design, transportation demand management, parking analysis, multi-modal trip generation analysis, area specific planning, and traffic calming.

Mega-Trends and Market Opportunities in Energy


Presented by Yvonne Castillo, Victor O. Schinner; Manisha Patel, WSP|Parsons Brinkerhoff; Clay Walton, Harris Group The state/local energy landscape is fast changing the fundamental layout of the US electric system, including how it’s distributed across the grid. Learn how firms can take advantage of this transition toward a clean energy economy using mixed project portfolios and improved business models.

ABOUT THE SPEAKERS

Yvonne Castillo, Director of Risk Management at Victor O. Schinnerer & Co., Inc., is an attorney with 23 years of experience. Half of her career was spent as a litigator in federal and state courts; the other half spent as a public policy lawyer. In addition to overseeing Schinnerer’s Risk Management services for architects and engineers, she serves as Vice Chair on the Energy, Siting, and Reliability Committee of the American Bar Association.

As an Associate Director of the firm’s Environmental Process and Policy Practice, Manisha provides critical strategic advice to clients in the transportation and energy markets to best position their projects for accelerated environmental reviews and expedited permitting approvals. She is an expert on environmental regulations under the Clean Air Act and Clean Water Act and environmental reviews under the National Environmental Policy Act. Manisha helps business partners successfully navigate environmental reviews and government processes.

Clay is the Director of Energy and Consulting Services for Harris Group, Inc. He is a registered Professional Engineer and brings over 30 years of significant technical and project management experience. His experience as a project engineer and manager spans diverse industrial processes to include pulp and paper, traditional power and renewable energy development, municipal wastewater systems, biomass to energy plant design, oil and gas and petrochemical production and refining.

1

Mega-Trends and Market Opportunities in EnergyApril 24, 2017

Yvonne Castillo

Vice President & Director, Risk Management

Chevy Chase, MD

Victor O. Schinnerer & Company, Inc.

Past and Current Market

1April 24, 2017

*2016 Update*

Coal 30% Gas 34% Renewables 15%

Compare to 2008:

Coal 48% Gas 21% Renewables 9%

2

Victor O. Schinnerer & Company, Inc. 2April 24, 2017

Past and Current Market


Emerging and Future Market

3


Drivers for Emerging and Future Market

4April 24, 2017

(March 6, 2017)


4



Driver for Emerging Market: Renewable Portfolio Standards

5


Driver for Emerging Market: Net Metering


Driver for Emerging Market: Energy Benchmarking

9April 24, 2017

6


Driver for Emerging Market: Tax Incentives – PTC and ITC

10April 24, 2017


Driver for Emerging Market: Renewable Fuel Standards

11April 24, 2017

*US DOE - Alternative Fuels Data Center

7


Presidential Executive Order on Promoting Energy Independence and Economic Growth(March 28, 2017)

Orders that all federal agencies review existing regulations, including Clean Power Plan, that:

“potentially burden the development or use of domestically produced energy resources [citing specifically oil, natural gas, coal and nuclear energy

resources] and appropriately suspend, revise, or rescind those that unduly burden the development of domestic energy resources beyond the degree

necessary to protect the public interest or otherwise comply with the laws.”

Also states:

“….all agencies should take appropriate actions to promote clean air and clan water for the American people.”

12April 24, 2017


Timeline

Within 45 days of order – “a plan” to carry out review are due

Within 120 days of order – draft final reports are due

At 180 days, finalized report due

13April 24, 2017

8


Cont’d Executive Order - Revocations

Revokes Previous Presidential Actions:

• Preparing the United States for the Impacts of Climate Change (2013)

• Power Sector Carbon Pollution Standards (2013)

• Mitigating Impacts on Natural Resources from Development and Encouraging Related Private Investment (2015)

• Climate Change and National Security (2016)

• The Report of the Executive Office entitled The President’s Climate Action Plan 2013

• The Report of the Executive Office entitled Climate Action Plan Strategy to Reduce Methane Emissions 2014

14April 24, 2017


Cont’d Order – Recisions And Withdrawals

Recisions:

• Council on Environmental Quality’s “Final Guidance for Federal Departments and Agencies on Consideration of Greenhouse Gas Emissions and the Effects of Climate Change in National Environmental Policy Act Reviews.”

Withdrawals:

• Disbanding the “Interagency Working Group on Social Cost of Greenhouse Gases”

– All developed research and documents therein

15April 24, 2017

9


Cont’d Executive Order – Department of Interior

Department of Interior-related actions

Withdrawal or amendment of Environmental Impact Statement Modernization effort for the Federal coal program

Lifting of moratoria of coal leasing, ordering commencement of activities “consistent with all applicable laws…”

Review of oil and natural gas emission standards for new, reconstructed and modified sources

Suspend, revise, rescind the following guidance:

• “Oil and Gas; Hydraulic Fracturing on Federal and Indian Lands”

• “General Provisions and Non-Federal Oil and Gas Rights”

• “Management of Non Federal Oil and Gas Rights”

• “Waste Prevention, Production Subject to Royalties and Resource Conservation”

16April 24, 2017


What the Executive Order Doesn’t Do:

Doesn’t change Massachusetts v. EPA (2007)– US Supreme Court Decision

Doesn’t change EPA’s 2009 Endangerment Finding

Doesn’t change the attitude of investment community

Doesn’t change the downward trajectory of coal

Doesn’t change the attitude of utilities

Doesn’t change market – i.e. price competitiveness of renewables

Doesn’t change technology advancements and market demand

17April 24, 2017

10


Driver: Technology and Market Demand - Electric Vehicles

18April 24, 2017


Driver: Technology and Market Demand - Electric Vehicles

• Charts on future and project growth

11


U.S. Plug-in Electric Vehicles

20April 24, 2017


Driver: Technology and Market Demand– Electric Vehicle Batteries

21April 24, 2017

12


Driver: Technology and Market Demand - Charging Infrastructure

22April 24, 2017

New Demand on Grid + Energy Storage


U.S. Energy Storage Revenue

23April 24, 2017

13

ENERGY TRENDS & OPPORTUNITIES FOR ENGINEERING COMPANIESThe Future is So Bright…..

Manisha D. Patel

ACEC 2017 Annual Convention

Washington, DC

PRESENTATION OVERVIEW

25

Trends

Disruptors

Opportunities

14

ENGINEERING COMPANIES PLAY A VITAL ROLE IN SHAPING OUR OWN FUTURES

26

• Can initiate, implement and add value to the construction life cycle – changing manuals and SOPs

• Can provide advisory services to governments and private clients

• Can work with stakeholders to align interests and find alternatives

• Can provide management and advisory services for the entire life-cycle of a project

27

WHAT DOES “ALL OF THE ABOVE” LOOK LIKE?This is where it comes from……

15

…..AND THIS IS WHERE IT GOES

28

29

And then the “new” kid on the block…..

16

A DYNAMIC WORLD DRIVES THE TRENDS 30

DISRUPTORS

31

Consumer Behavior Technology

Government &

Regulations

Production and Distribution Models

Catastrophe Weather and Terrorism

17

32

TR

EN

DD

ISR

UP

TO

R

Technology

Climate Change

FLOOD HAZARD ZONES AND ENERGY INFRASTRUCTURE

33

Source: eia.gov

18

TECHNOLOGY MEANS REALTIME INFO

34

JUST TWO (OF MANY) EXAMPLES

35

• Microgrids• Connected & Autonomous

Vehicles

19

36

WHAT IS A MICROGRID

37

Source: DOE Sandia Labs

Energy Surety MicrogridTM

20

38

Operational Microgrid Capacities by Region and Resource

Source: greentechmedia.com

THE OPPORTUNITIES

39

Microgrid Automation Project at Las PositasCommunity College, funded with a $1.5 million grant from the California Energy Commission creates a blueprint for campus microgrids: it’s a “how to” of design, finance, and operation of microgridsand energy (storage) systems in a scalable and financeable way

21

40

One last thought…are microgrids legal? What is deregulation and what does it mean for engineering companies?

Source: deregulationofenergy.org

REMEMBER WHEN…..

41

22

IT’S JUST LIKE THAT ALL OVER AGAIN….

Source: Google

42

THE BASICS

43

Source: engineering.com

23

44

• C/AV are a reality and will impact U.S. transportation sector energy use….and our fundamental infrastructure.

• Autonomous vehicles have the potential to provide opportunities for vehicle manufacturers, users, and policymakers to establish a foundation for improved per-vehicle and transportation infrastructure use while reducing energy use on a mile-of-travel basis.

• Deployment and energy impacts depends on the technologies offered, costs, influence of enabling and/or restrictive policies and legislation, and rate/nature of consumer adoption.

I-94 CORRIDOR STUDY – TWIN CITIES

MnDOT is asking “how will changes with C/AV impact our long-term plans for the corridor?”

Team is conducting scenario planning using the regional model to address this question

24

“The technology may be ready before society is.”

Bill Ford, Jr., Chairman, Ford Motor CompanyDecember, 2015

Transportation Industry Disruption?



Public Acceptance?

Public Acceptance?

Public Acceptance?

Wealth Distribution?



The technology itself is not able to answer the societal impact questions

Increased Urban Sprawl?



Legal and Ownership Issues?



Land Use Policy?Land Use Policy?Land Use Policy?Insurance

Implications?Insurance

Implications?Insurance

Implications?

25

THE REAL OPPORTUNITY

48

• Engage clients and government officials (state, local, federal) to educate, to provide sound science, to advocate

• Recognize that “regulations” is not a bad word -- we need certainty to plan and finance -- good regulations can lead to great projects

• Don’t repeat the mistakes of the past – design, finance, build, operate and maintain in a sustainable way

Manisha D. PatelAssociate DirectorEnvironmental PolicyUS Advisory Services

[email protected]

(314) 206 4221

26


40 Years Servicing Industrial Facilities

Multidiscipline Engineering

Serving Chemical Process Industries

200 Experienced Industrial

Process Design Professionals

Average 20 Years

of Experience Denver, CO

Corporate Office Seattle WA

Portland, OR

April 24, 2017 50


Change is Constant – Opportunity Ensues

zeitgeist/ˈzaɪtˌɡaɪst/

Noun

The defining spirit or mood of a particular period of history

as shown by the ideas and beliefs of the time.

51April 24, 2017

27


1978 Public Utility Regulatory Policy Act - PURPA

• At the time of enactment production and delivery of electric energy was monolithic.

• Created the spark that has led to the development of entire industrial segments of the US economy devoted to renewable sources and de-centralized generation and delivery

52April 24, 2017


Energy Information Administration – Annual Energy Outlook 1979

53April 24, 2017

28


Projected Electrical Generation By Fuel Type

54April 24, 2017


Rate of Change is Increasing along with Opportunity

55April 24, 2017

Renewable Energy Consumption 8.2 % in 2010Renewable Energy Consumption 15% in 2016

Wind has more than doubled since 2007

29


Harris Group Project Experience

56April 24, 2017


Project Experience

57April 24, 2017

30


Biofuels Development

58April 24, 2017


RFS 2 Mandates Not Met

59April 24, 2017

31


Project Experience

60April 24, 2017


Engineering and Design Opportunities are Expanding

• Pace of Change is Increasing – More Projects

• Technology Development – More Technology Pathways are Being Commercialized

• Increasing Regulatory Pressure – Perhaps Mitigated At the Moment

• Increasing Public Pressure – Increasing Political Awareness

• Government Financial Support – Loan Guarantee and Grant Programs

• Increasing Private Financing Opportunities – Money Flowing to Good Projects

61April 24, 2017

32

OUR DIFFERENCE IS ENGINEERED

62April 24, 2017

Clay Walton P.E.Director Energy and Consulting Services

[email protected]

Clay Walton P.E.Director Energy and Consulting Services

[email protected]


Questions and Answers?

Contact Information

Yvonne Castillo, Victor O. Schinnerer, [email protected]

Manisha Patel, WSP Parsons Brinckerhoff, [email protected]

Clay Walton, Harris Group, [email protected]

63April 24, 2017

DoD Market Opportunities for FY17 and Beyond: The Services' Perspective


Presented by Stacey Shepard, Jacobs; Scott Wick, USACE; Col. Charlie Kuhl, AFCEC; Capt. Scott Loeschke, MCI-COM; Jim Balocki, DASN Installation and Facilities With the recent release of the Administration’s FY17 $33B supplemental budget to Congress; and the outline for the proposed $54B bump for DoD topline, this is a timely opportunity to hear directly from the service representatives. Leadership from the Army, Navy, Air Force and Marine Corps will provide overviews on potential programmatic impacts to facilities and infrastructure.

ABOUT THE SPEAKERS

Stacey’s responsibilities focus on the development and implementation of strategic initiatives for Jacobs’ public sector clients, encompassing the full spectrum of A/E services for Federal clients worldwide.

Scott is in charge of all architectural, sustainability and interior design policy for the Corps of Engineers, and as the Centers of Standardization Program Manager, he is in charge of the development and maintenance of 65 prototypical facility models.

Jim is the principal advisor to the Assistant Secretary of the Navy (Energy, Installations and Environment) on Navy and Marine Corps policies related to military construction, facilities sustainment, restoration and modernization; acquisition, use and disposal of real property and facilities.

Charlie assists the director in leading a more than 1,900-person primary subordinate unit, responsible for providing responsive, flexible full-spectrum installation engineering services.. management.

Scott Loeschke is a qualified Seabee Combat Warfare Officer, a member of the Acquisition Professional Community, a registered Professional Engineer in the state of California, and a Certified Energy Manager.

100 years of excellence annual - acec

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