4. Internal Climate and Efficiency Revolving Fund — original pdf

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Climate and Efficiency Revolving Funds To reduce operational costs and GHG emissions Limited dedicated funds to make city facilities more sustainable New opportunities in renewables + resilience Pressure on general fund means there is a need to reduce operational costs Context 2 Precedents Revolving funds are not a new idea, and many communities across the country have successfully implemented them to address challenges like those we face in Austin. San Antonio Philadelphia Harris County Portland Seattle 3 Case Study: San Antonio ● Energy Efficiency Fund seeded in 2009 ● Projects include lighting, HVAC with $12 million in ARRA funds ● 432 energy projects in 190 facilities completed by 2023 ● Annual avoided cost savings of $1.7m equipment and controls, solar window film, pool pump upgrades, etc. ● In 2023, $30m investment in solar, savings to be rolled into fund Case Study: Harris County ● Revolving Energy Efficiency Fund established in 2023 with one FTE ● No direct funding for projects, captures savings from already funded capital projects ● Savings (tax credits, utility rebates, energy savings) from projects flow into fund ● Fund pays for things complementary to projects (training, salaries, tools) How it Could Work Seed Funding Climate and Efficiency Revolving Fund Staff Salaries, Software, Training, Capacity Building Reinvest Savings Implement Projects Measure Energy and Other Savings 6 Energy Efficiency Renewable Energy Fleet Electrification Lighting retrofits, HVAC upgrades, weatherization Solar, batteries Electric vehicles and charging infrastructure Example Projects 7 Example Projects LED Lighting Retrofit in an Office Building Solar Array on a Library Upfront Cost: $300,000 Annual Savings: $75,000 Simple Payback Period: 4 years Lifespan: 10-15 years Upfront Cost: $95,340 (incl 30% tax credit) Annual Savings: $13,913 Simple Payback Period: 6.8 years Lifespan: 25-30 years ● As the initial investment is paid off, savings can be returned to the fund and can be ● After the investments are paid off, the projects continue to generate annual savings reinvested into other projects. for the remainder of their lifespans. 8 Thank you. Do you have any questions? www.austintexas.gov/climate /austinsustainability rohan.lilauwala@austintexas.gov