Campus Energy Efficiency FundPERC Fall Conference and Annual Meeting

Climate Change PanelJoyce FerrisOctober 29, 2013

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•Experienced investors in the energy efficiency and sustainability sector.

•Developers of energy efficiency and sustainability projects.

•Shifting from investing in technologies to project and service businesses.

•Strong team with investment and operating experience in the sector.

W H O W E A R E

C A M P U S E N E R G Y E F F I C I E N C Y F U N D O V E R V I E W

Over $45 million of capital for energy efficiency, sustainability, and on-site generation projects for Pennsylvania colleges and universities

Pennsylvania Treasury Department is the lead investor

CEEF led investment underway–$7.5 million of projects with Drexel University and Montgomery County Community College in 2013–$10 million target for 2014

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E N E R G Y A N D C L I M AT E I M PA C T T O D AT E

Drexel University –35% energy and carbon reduction across 5 buildings –44% energy reduction in science building lab space–energy savings funding important upgrades and maintenance–health and safety, comfort and reliability benefits too

Montgomery County Community College–74% energy savings and carbon reduction for outdoor lights on two campuses–69% net savings due to adding new fixtures–aesthetic, maintenance and safety benefits too

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I N V E S T I N G I N E N E R G Y E F F I C I E N C Y A N D S U S TA I N A B I L I T Y P R O J E C T S

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O U R G O A L I S T O T R A N S F O R M T H E B U S I N E S S O F P R O V I D I N G E N E R G Y E F F I C I E N C Y A N D S U S TA I N A B I L I T Y S E R V I C E S

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P R O P E R T Y O W N E R S WA N T S O L U T I O N S , N O T E Q U I P M E N T

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Power Purchase Agreement transitioned the solar industry to selling electricity not solar panels

Charging by the minute transformed the telecom industry to selling communication, not cell phones

T I M E F O R N E W B U S I N E S S M O D E L S

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VS

We have 2013 technologies…

…deployed using 1960’s business models.

F U N D I N G S T R U C T U R E - E F F I C I E N C Y S E R V I C E A G R E E M E N T ( E S A )

Efficiency “as-a-service” - ESA payments are based on achieved energy savings from the installed efficiency measures.

Risk allocation - Through the ESA structure, Blue Hill and CEEF take the risk of achieving energy savings. If projects don’t save energy we don’t make a return.

Modular but deep solutions - Science building retrofits, outdoor lighting retrofits, retro-commissioning, and water efficiency

Comprehensive but incremental approach- multi-year strategy to achieve energy and sustainability transformation

Value beyond energy savings- health and safety, public relations, occupant comfort…..

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A C U S T O M I Z E D A P P R OAC H

E N E R G Y S E R V I C E S A G R E E M E N T PAY M E N T S T R U C T U R E

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D R E X E L P R O J E C T H I G H L I G H T S

• Science Building Retrofits – controls upgrade of 3 science buildings – centralized demand control ventilation– 46% energy reduction for lab space

• Complete Mechanical Upgrade of a Research Center– 100,000 sq ft Paul Peck Research Center– some energy savings, dramatic comfort and

reliability benefits

• Supplemental Energy Efficiency Investment for a Building Renovation – CEEF funding stretched the budget to maximize

energy efficiency in the renovation

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D R E X E L U N I V E R S I T Y S C I E N C E B U I L D I N G R E T R O F I T

Controls upgrade of three science building labs

• state of the art lab controls for three buildings totaling over 62 lab spaces

• energy savings of over 46%

• additional Environment, Health and Safety benefits

Drexel Science and Engineering Pod

Aircuity DCV Infrastructure

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M O N T G O M E R Y C O U N T Y C O M M U N I T YC O L L E G E L I G H T I N G R E T R O F I T

Zone 1 wallpacks

Zone 2 walkways

Zone 3 parking

Zone 4 Parking

Zone 5 loop road• retrofit over 600 outdoor and parking garage lighting fixtures, on the school’s two campuses

• outdated lighting technology will be replaced with high efficiency LED fixtures and a full suite of wireless and IP enabled lighting controls

• structured as an Energy Services Agreement (ESA), with Blue Hill paid for energy savings delivered to the customer over a 10 year contract

• over duration of the contract Blue Hill will ensure equipment maintenance and replacement Before

After

Central Campus Lighting Map

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Blue Hill Partners40 West Evergreen AvenuePhiladelphia, PA 19118www.bluehillpartners.com

Joyce FerrisManaging Partner215-248-5244