1. Smart Power Electri-City U.S. Department of Energy Better Buildings Case Competition 2014

2. introduction Challenge: 20% Energy use reduction within 10 years • Mid-Sized US city • Focus on ~150 Publicly owned Buildings • Obstacles • Data • Lack of collection • No centralization/standardization • Buildings • Antiquated Structure/ out-of-date equipment • Varying building size, location, and usage • Employee Resources • Over-extended maintenance staff • Misaligned incentives • Funding • Competition against non-energy projects • Securing Funds • Solution • Data Collection & Analysis • Hardware installation for collection & analysis • Software (Smart Power Application) for building profiles/inventory • Financing/Implementation • Self Sustaining Internal Energy Savings Performance Contract (ESPC) • Behavior Modification • Gamification • Re-aligned incentives

3. Data collection & analysis • Collection of Data Through Hardware • Self-Reporting Smart Hardware - total cost of 500k • Estimate from Aquicore, a business that specializes in energy monitoring in commercial settings • Installation of ~30 buildings per year over 5 years • Used to track Energy usage • Baseline formation • Identifying energy spikes/unusual consumption (Real Time)

4. Data collection & analysis • Collection of Data Through Software • During the first year, software can be used to make energy decisions with little investment while hardware is being implemented • Once hardware is fully implemented software and hardware can be used to supplement each other • “Smart Power” Application • App that can be download on phones; asks questions about individual buildings • Builds detail building profile over time • Can spend 1-2 minutes on App or Hours • Sample Questions • How many elevators does the building have? • Age of HVAC system? • Is building occupied on weekends? • Hours of operation for HVAC? • Create an EnergyStar Portfolio Manager account • Classify Buildings and square footage • If available compile buildings utility bills • Create broad energy consumption profile using Federal Energy Information Administration database • Used to gain broad picture of energy consumption • Used to highlight “hot spots” of energy consumption • Focus early energy projects on “hotspots” (inefficient buildings)

5. Data collection & analysis • Data Summary: • Hardware for real time data and baseline formation • Energy Star Portfolio for board classification • Application for detail inventory • Identifying Projects • Hardware – look for spike increases / above average consumption • Example: Weekend consumption of a building higher than similar buildings • Example: Energy spikes noticed at 2:00 am (Automatic settings for lights/HVAC off schedule?) • EnergyStar Portfolio - focusing on certain buildings or areas • Focus on buildings classified as high energy use • Focus on older “obsolete” buildings • Application – ideas for specific projects identified by EnergyStar Portfolio • Bulk buying to reduce costs - ex: replace inefficient refrigerators through out multiple buildings • Hardware/EnergyStar identifies high energy consumption building; app gives info on possible projects (age of HVAC system, incandescent lights present, single pane windows, etc.)

6. Finance/implementation • Initial Bond offering to Fund an Internal Energy Savings Performance Contract (ESPC) • Managed between Energy Office and Finance Department • Used for Energy related projects only; no competition against non-energy projects • Focus on low hanging fruit with High IRR and quick payback for cash flow at the beginning Ex: lights

7. Finance/implementation • Internal Energy Savings Performance Contract (ESPC) • Over time less money goes towards bills and debt repayment; more towards projects • Once established with cash flow; can focus on larger projects with longer payback periods

8. Finance/implementation • Implementation • Procurement process stays the same as with any other contract • Minimum three qualified bidders • Standard remittance schedules • Final approval from Energy Office, Finance Dept. and Maintenance Dept.

9. Behavior modification • Empowerment • Energy projects only competing against each other due to ESPC • Maintenance staff provided “cheat sheets” for optimal building settings • Takes thinking out of the process • Feeling of contributing by manually adjusting settings • Maintenance staff use of Application • Can recommend questions • Recognition for completing certain amount of questions • Gamification Team Leaders • Cheerleaders for Energy Reductions • Distribute Energy Reports to team members for awareness • Opower – Comparing your team against others • Gamification • Definition: about taking the essence of games—fun, play, transparency, design and challenge—and applying it to real worldobjectives rather than pure entertainment • Use EnergyStar Guide to Energy Efficiency Competition for Buildings & Plants • Buildings & agencies compete against each other • Team leaders appointed • Promotes the competition • Receives recognition and possible monetary awards • Winning team(s) receive monetary award • Allowed to spend on upgrades/improvements as they please • *Nike, Google, Volkswagen & City of El Paso Texas have all used Gamification

10. goal Estimated Energy Reduction of up to 36% Energy Projects – 20 to 25% In short, based on the average commercial building energy portfolio, we’ve established that we can expect a 20 to 25% energy use reduction through energy efficiency upgrade projects. Behavior Modification – 9 to 11% With large variances between examples of Gamification and potential overlaps with other energy reduction techniques, conservative estimate of 9% to 11% in energy reduction. Awareness contributes 2 to 4% Gamification and empowerment contributes 7%.

11. questions Questions?