SB1149

SB1149 Fund Information: District SB1149 information

What is SB1149?

Senate Bill 1149 directs residential and business customers in Portland General Electric (PGE) and Pacific Power service territories to pay a 3 percent “public purpose charge” as part of their monthly utility billings. 10 percent of those dollars are allocated to school districts with campuses on the Pacific Power or PGE power grids. Dollars are dispersed based on average daily membership (ADM). These dollars then are able to be used for energy construction upgrades with a 20-year simple pay back. WESD has organized a consortium of school districts and will contract out the audits and improvement work in those districts at a cost savings that provides more dollars for the school districts to use for energy efficient improvements.

SB1149 Steps

• Energy Audits ~ identifying energy efficient measures that will qualify for SB1149 dollars.
• Project definition ~ groups the districts priority energy efficiency measures (EEM’s) into projects that are then designed, bid, and build.
• Project construction ~ the process of constructing/installing energy efficient measures.

Accessing Information

To access financial information specific to your District, using the link above, click on your District from the drop down list on the top of the screen, enter your password. If you have not yet received your password, or are having difficulty opening the page, please call Anna Lince at 503.385.4707.

The SB1149 staff is always available and able to give you details and/or answer any questions you may have.

Program Questions

David McKay, Director
503.385.4788  

          or

Darren Lee, Senior Project Manager
503.385.4692

What is an Energy Audit?

An energy audit is an evaluation of current building conditions (in terms of energy usage). It is also an analysis of potential projects (EEMs or O&Ms) to save energy use.

A good audit will provide a solid foundation for: building operation and maintenance, project planning, energy project design, project construction and verification, and future energy management and project planning. Energy audits generally address the entire facility, rather than focusing on one area (such as lighting).

What is an “EEM” (Energy Efficiency Measure)?

Also referred to as an Energy Conservation Measure, EEMs are capital improvements to buildings that save energy. They usually include such things as: windows, insulation, lighting, and HVAC or mechanical system changes that reduce energy use. EEMs will impact the three basic building components that cause energy use: the building shell (walls, roofs, etc.), lights, and the mechanical (HVAC) systems. Operations and Maintenance Measures (O&Ms) save energy too, but are usually low cost or no cost items or other actions that are part of normal maintenance. Eligible EEMs will pay for their installed cost in annual energy cost savings within a 20-year period.

Energy Savings Performance Contracting (ESPC)

Energy Savings Performance Contracting (ESPC) is a mutual agreement between a client and a ESPC Firm whereby the firm agrees to complete work for a firm fixed price. This firm fixed price includes project design and construction. The ESPC Contractor then guarantees that the project can be paid for from reduced energy cost without obligating the General Fund. The reduced energy cost combined with SB1149 and BETC create a net breakeven or positive cash flow. These funds are then used to pay for the construction over the life of the loan, typically 10-15 years.
Benefits to Performance Contracting:

• That the scope of projects can be increased beyond what just SB1149 dollars would allow without obligating the General Fund.
• The Performance Contractor is responsible for project identification, project design, and project construction.
• The Performance Contractor enters into a relationship with the District for the life of the loan where the Performance Contractor monitors projects energy efficiency guaranteeing energy savings.
• Projects with a simple payback of greater than 20 years can be accomplished by Performance Contracting and still obtain a BETC.

BETC

Oregon Business Energy Tax Credit Program (BETC)

BETC provides private companies with a tax credit for energy saving projects. The net value of the tax credit to the District equals approximately 25.5 percent of the eligible project costs. Because non-profits do not have a tax burden they have been given a method of using the tax credit through the use of a “Pass-through.” The “Pass-through” option allows the project owner to transfer the BETC to a “pass-through” partner for a lump-sum payment in exchange for the tax credit.

In order to receive BETC you must complete and turn in the application, along with the filing fee, prior to contracting for construction services.