Performance Contracting in Massachusetts��Infrastructure renewal through one cohesive agreement

Morgan Perras

January 18^th, 2023

Mashpee School Committee Meeting

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About the Presenter

Morgan�Perras

Comprehensive Solutions

Account Executive

Morgan graduated from Clemson University with her B.S. in Mechanical Engineering. She is currently attending BU for her MBA with a focus on Social Impact. Morgan works on Trane's Energy Services team to help K-12 school districts create and maintain safe, comfortable, and efficient schools with high performance learning environments. 

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Agenda

• Why?
• How?
• What?
• Example Project 
• Q&A

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Typical Existing Challenges

• Growing capital needs
• Building Infrastructure Improvements
• Heating, Ventilation, and Air Conditioning Systems and Controls
• Trying to keep up with CDC and ASHRAE recommendations for Indoor Air Quality in schools following the pandemic
• Want to be fiscally responsible when utilizing ESSER and ARPA funding
• Desire to electrify/decarbonize HVAC systems

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Provide safe, comfortable and efficient environments that promote student learning

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Marketplace Flooded

Inflation Reduction Act (IRA) + Infrastructure and Investment and Jobs Act (IIJA) 

• Provisions for Renewable energy projects, ability to capture ITC and do storage

Electrification Incentives through Heat Pumps

• $2,500 - 4,500/ton through Mass Save grant energy efficiency grants

ESSER and ARPA Funds Still Available

• Deadlines are Sept 2023 for spend down dates (ESSER II/III)
• Includes provisions for IAQ facilities upgrades

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Heightened IAQ Focus

Make the most of post-pandemic attention

Temperature

Ventilation

Humidity

If you want to upgrade your equipment now, why not take advantage of this current environment to get the most out of your money?

As the Temperature Climbs, Test Scores Drop in Schools Without Air Conditioning (edweek.org)

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How do we do this?

• Alternative procurement and contracting method
• Enabled by M.G.L. CH25a,11i
• Supported by Department of Energy Resources (DOER)
• One qualified firm provides:

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• Projects funded independent of capital budget
• Paid for over time, entirely or in part, with savings

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Performance Contracting

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Mechanical

Contractor

Electrical

Contractor

Roofing

Contractor

Guaranteed

Energy

Savings

Ongoing

Maintenance

Alternative

Funding

Grants and

Rebates $

Single Source Accountability for Mashpee + MPS

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1. Issue Request For Qualifications (DOER Model RFQ) January 2023
2. Select an Energy Services Company (ESCO) February 2023
3. Execute Detailed Audit agreement April 2023
4. Develop detailed scope of improvements  April–May 2023
5. Firm contract proposal with scope and guarantee July 2023 
6. Execute agreements and proceed (Financing secured) August 2023
7. Implement facility upgrades (Construction Period) Sep 23’ – Dec 24’
8. Maintain systems – Guarantee Energy Savings 2024 - forward

Streamlined Process – Mashpee Potential Schedule

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Allows for Infrastructure Renewal 

1. Clean Renewable Energy Systems

Biomass Boiler Plants

Photovoltaic Solar Carports

Geothermal Heat Pumps

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2. Energy Conservation Measures

HVAC equipment and Building Automation Systems

(With electrification focus – heat pumps, VRF, etc.)

New Boiler Plants

Electrical VFDs and Transformers

High Efficiency Lighting

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3. Items typically handled as Capital Improvements

Roof & Window replacements   

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About New England Trane

• $250M Business annually across 4 states ($800M in Region)
• New England Trane employs over 200 people, including:
• Over 50 Account Managers
• Over 85 Trane Certified Service Technicians
• Controls & Energy Services Project Managers
• Energy Engineers
• LEED Accredited Professionals

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Why Public Entities in MA Select Trane

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• Unique Trane cost advantage – Manufacturer direct

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• Solid local track record – project outcomes exceed guarantees!

(ALL MA customers have saved MORE than expected)

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• Well over $130M in local projects delivered by NE Trane team

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Ideal Time for Infrastructure Renewal

Capitalize on upgrades to address other IEQ concerns simultaneously 

Install/upgrade HVAC equipment to provide necessary cooling 

Proper equipment will allow ventilation while maintaining humidity control 

Install/upgrade equipment to provide necessary heating (utilize heat pumps/VRF)  

Address other IEQ concerns

Air conditioning

Heating

Proper ventilation & humidity

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City of Lynn

The Example

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City of Lynn, MA

Energy Savings Performance Contract with Trane:

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• Proactive approach to infrastructure renewal
• Saves Time & Money for the City
• Energy Savings Guaranteed by Trane
• Sustained Performance thru Maintenance

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Lynn Energy Services Agreement Highlights

• Commenced 2012
• >$28M in prioritized infrastructure renewal to date
• Guaranteed energy savings of >$500,000/year
• ~12% Reduction in utility spend to date
• Numerous additional opportunities available to City…

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Lynn, MA – 39 Facilities included

28 Schools

1. Aborn School
2. Breed Jr. High
3. Brickett School
4. Callahan School
5. Classical High School
6. Connery School
7. Cobbett School
8. Drewicz Elementary
9. English High School
10. Fecteau Leary School
11. Fallon School
12. 100 Bennett Street School
13. Ford School
14. Harrington School
15. Hood School & Annex

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• Ingalls School
• Lincoln School
• Lynn Voc. Tech
• Lynn Woods School
• Marshall Middle School
• LVTI Annex
• Pickering - Sisson School
• Sewell Anderson School
• Shoemaker School
• Thomson School
• Tracy School
• Washington School
• 113 Broad Street

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11 City Buildings

1. Central Fire Station
2. Central Public Library
3. City Hall
4. Fire Station Engine 1
5. Fire Station Engine 10
6. Fire Station Engine 11
7. Fire Station Engine 5
8. Fire Station Engine 8
9. Fire Station Engine 9
10. Police Station Headquarters
11. Public Works Headquarters

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Lynn - Multi-Phased Approach

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Freetown-Lakeville RSD

The Example

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Freetown-Lakeville Regional School District

Energy Savings Performance Contract with Trane:

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• Boiler plant at High School needed immediate replacement
• Addressed years of deferred maintenance
• Energy savings guaranteed by Trane
• Sustained performance thru maintenance with Trane

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FLRSD Energy Services Agreement Highlights

• Commenced 2020
• ~$5.9M in prioritized infrastructure renewal
• Guaranteed energy savings of ~$328,000/year
• Realized savings of $8.8M over life of project

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Freetown-Lakeville RSD – Facilities included

5 Schools

1. Freetown Elementary School
2. Assawompset Elementary School
3. George R. Austin Intermediate School
4. Freetown Lakeville Middle School
5. Apponquet Regional High School

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Energy Conservation Measures

1. New Boiler Plants for 3 Schools
2. New Rooftop Units
3. Energy Management & Building Automation Systems
4. LED Lighting Retrofits
5. Variable Frequency Drives
6. Swimming Pool Cover
7. Insulation
8. Kitchen Hood Controls
9. Walk-in Cooler and Freezer Controls
10. Building Envelope Improvements

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Thank You

Questions?

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Unit Ventilator

Liner Expansion Valve Kit

(LEV & controller)

VRF Condensing Unit

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=�VRF �Unit Ventilator

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Controls by Trane

• Trane controls the VRF condensing units and indoor units
• System includes AHU & controls
• Entire system controls = Trane
• Single solution for system issues
• Seamless integration

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System Advantages

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Single

Vendor

Units can be provided with hot water heating in addition to the heating capacity of the VRF coil

Mixed

indoor unit styles

With Trane as the single vendor for both indoor and outdoor units as well as controls, the integration is seamless and troubleshooting is simple.

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Efficiency

VRF heat pump units are much more efficient than traditional condensing units paired with unit ventilators

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Utilize the same VRF condensing units while allowing both in kind UV replacements and various traditional VRF style indoor units

Back

Up

Heat

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Trane Cost Advantage – Recent local example

Old Colony Regional School District, Rochester, MA

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Competing ESCO price $4.4M

Trane price $2.2M

District cost savings $2M

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• This same cost advantage is available to Mashpee
• Reduced cost equates to more improvements that can be implemented through the program
• Trane is uniquely qualified to provide the most cost effective, most comprehensive and long-term successful program for the Town of Mashpee

Eliminate the middleman

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Electrification: Defined

Electrification refers to the process of replacing technologies that use fossil fuels �(coal, oil, and natural gas) with technologies that use electricity as a source of energy

Decarbonize

Reduce carbon emissions

Electrification

Utilizing electricity in place of burning fossil fuels

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Assess and Implement Electrification Solutions

Chiller-Heater Systems

VRF �Systems

Packaged Units �and Split Systems

Heat20

Storage Source �Heat Pump Systems

Chillers can provide cooling as well as heating by configuring them with heat pumps or heat recovery.

Thermal energy storage provides operational flexibility by capturing and storing reclaimed energy to heat the building efficiently or optimize heat pump capacity.

Trane® / Mitsubishi Electric VRF heat pumps and heat-recovery systems offer versatile electric zoned heating and cooling.

Efficient and effective heating with integrated heat pumps and hybrid systems.

Water heater system designed to produce high volume domestic hot water for commercial facilities �in any climate.

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