iscn 2017: bond financing for deep energy retrofits
TRANSCRIPT
ISCN Conference, University of British Columbia June 28, 2017
ISCN Conference, University of British Columbia June 28, 2017
Bond Financing for Deep Energy Retrofits
290 acres (117 hectares)
14 million sf (1.3M sm) in 180 buildings
20,000 students
20,000 faculty and staff
12 schools (Arts & Sciences, Business,
Engineering, Medicine, Law, etc.)
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University of Pennsylvania
ISCN Conference, University of British Columbia, June 28, 2018
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Penn’s College Hall, 1900s
ISCN Conference, University of British Columbia, June 28, 2018
5ISCN Conference, University of British Columbia, June 28, 2018
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Penn Main Campus Growth & Building Age
ISCN Conference, University of British Columbia, June 28, 2018
Facilities Challenges:
• Over $600M (€530M) in deferred
maintenance
• Difficulty attracting donor funds for
maintenance and/or renovations
ISCN Conference, University of British Columbia, June 28, 2018 7
Deferred maintenance example:
Chem Building Exhaust Fans
8ISCN Conference, University of British Columbia, June 28, 2018
Ongoing Penn Solutions:
• ~$30M (€26M) annual repair budget
• ~$5 to $10M (€4.4M to €9M) for efficiency
project from utilities budget (if available)
ISCN Conference, University of British Columbia, June 28, 2018 9
Penn’s Century Bond Program:
• $300M (€264M) bond issued in October 2012
• 100 year term
• 4.67% interest
• Funds used for deep energy retrofits &
deferred maintenance
ISCN Conference, University of British Columbia, June 28, 2018 10
Century Bond Goals:
• Reduce energy use and emissions
• Undertake comprehensive rather than
piecemeal upgrades
• Reduce deferred maintenance backlog
• Pay bond interest with utility savings
ISCN Conference, University of British Columbia, June 28, 2018 11
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Century Bond proceeds:
$300M
$3M in long-term investment = $300M in 100
years
ISCN Conference, University of British Columbia, June 28, 2018
Century Bond
Investment/Deployment Strategy
Century Bond
Investment/Deployment Strategy
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Investments
Strategic Priorities
$97M
$3M in long-term investment = $300M in 100
years
Century Bond proceeds:
$300M
ISCN Conference, University of British Columbia, June 28, 2018
Funds held in short, intermediate, and long term investments, used
as needed for capital projects
Century Bond
Investment/Deployment Strategy
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Investments
Strategic Priorities
$97M
$3M in long-term investment = $300M in 100
years
Century Bond proceeds:
$300M
Earnings
ISCN Conference, University of British Columbia, June 28, 2018
$200M Zero-interest Capital Project Loans to
Schools
Funds held in short, intermediate, and long term investments, used
as needed for capital projects
Century Bond
Investment/Deployment Strategy
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Investments
$200M Zero-interest Capital Project Loans to
Schools
Strategic Priorities
$97M
$3M in long-term investment = $300M in 100
years
Century Bond proceeds:
$300M
Earnings
Lighting $9M(45 buildings)
HVAC $191M(10 buildings)
ISCN Conference, University of British Columbia, June 28, 2018
Funds held in short, intermediate, and long term investments, used
as needed for capital projects
Century Bond
Investment/Deployment Strategy
16
Investments
$200M Zero-interest Capital Project Loans to
Schools
Strategic Priorities
$97M
$3M in long-term investment = $300M in 100
years
Century Bond proceeds:
$300M
Earnings
Combined earnings from
investment +utility savings =
$14M annual interest
Earnings
utility savings
$14M annual interest payment
Lighting $9M(45 buildings)
HVAC $191M(10 buildings)
Utility Savings =
+
ISCN Conference, University of British Columbia, June 28, 2018
Funds held in short, intermediate, and long term investments, used
as needed for capital projects
Century Bond
Investment/Deployment Strategy
17
Investments
Earnings
Principal returned to Century Bond pool by
Schools & Centers (0% interest) over 30 years
to be made available for future projects
Strategic Priorities
$97M
$3M in long-term investment = $300M in 100
years
Century Bond proceeds:
$300M
$200M Zero-interest Capital Project Loans to
Schools
Lighting $9M(45 buildings)
HVAC $191M(10 buildings)
Utility Savings
Earnings
utility savings
$14M annual interest payment
+
=
ISCN Conference, University of British Columbia, June 28, 2018
Funds held in short, intermediate, and long term investments, used
as needed for capital projects
Example: Chemistry 1973 HVAC Upgrades
150,000 SF chemistry lab and teaching building 18ISCN Conference, University of British Columbia, June 28, 2018
HVAC Scope
• Replaced constant
volume Air Handling
Units (AHUs) with
variable volume AHUs
• Upgraded over 140
individual fume hoods
• Building remained
occupied
• Project costs around
$20M (€17M)
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Typical research lab
4th floor classroom
ISCN Conference, University of British Columbia, June 28, 2018
New Strobic Fans / EAHU
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Case Study: Chemistry 1973
ISCN Conference, University of British Columbia, June 28, 2018
5th Floor
4th Floor
All Floors
Each AHU replacement cut airflow by 20,000 cfm
Annual energy savings: over $1.4M (€1.23)
3rd Floor
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150,000 cfm
4200 cmm
130,000 cfm
3700 cmm
110,000 cfm
3100 cmm
90,000 cfm
2500 cmm
May 19 June 18 July 18
Air volume savings
Century Bond 5-year outcomes:
• 45 lighting projects ($9M / €8M cost)
$1.1M (€1M) annual savings
• Five (of 10) HVAC projects ($90M cost)
complete – over $4M annual saving
(estimated)
• 6000 MTCDE reduced annually (estimated)
ISCN Conference, University of British Columbia, June 28, 2018 22