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Watts
Happening |
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Published
by the Center for Energy Efficiency Middle
Tennessee State University Volume
4 Issue 2
July 2002 Editor: Linda Hardymon |
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Tackling
Capital Maintenance Requires Creativity
By
Tom Tozer, Director, MTSU Media Relations
Buildings are like people. They may need Band-Aids—and eventually
some need organ transplants.
During the life of a building, there is ongoing need for repairs and
upkeep. These cosmetic measures extend the life of the structure. When a
building becomes extremely old, however, routine maintenance is no longer
enough. The need to replace worn-out systems—electrical, heating and air
conditioning (HVAC), plumbing, roofs—becomes paramount. When funds are not
available to address these major capital maintenance projects, the projects
must be deferred or put off. The condition is aptly referred to as
"deferred maintenance."
The cost of deferred maintenance can be staggering, and it only
increases as the deferring of major repairs continues. On the MTSU campus
today, the price tag of deferred maintenance is somewhere near $75 million,
according to David Gray, director of facilities services. "And that's
merely addressing aging buildings," Gray said. "This does not
address modernization, such as adding new technology."
There are other problems caused by deferred maintenance according to
Joe Whitefield, director of MTSU's Center for Energy Efficiency (CEE).
“System failures increase, comfort typically decreases, and space
functionality suffers. Increased frequency and cost of corrective maintenance
is a lose-lose situation for everyone. It's really a condition of
deteriorating facilities brought on by inadequate funding. It's an
accumulative thing. If you don't replace the roof, then it starts to leak,
then you have more problems."
Certainly, students and faculty lose. "If the infrastructure is
not addressed, then technology can only be installed in new buildings where
there is adequate electrical service," said Watson Hannah, director of
Academic Technology Planning and Projects for Academic Affairs, whose focus
has been on renovating old buildings in order to accommodate newer technology.
"If older buildings aren't modernized, then faculty in those facilities
don't get the new technology." Some of the upcoming work will include
renovating older buildings from the inside out, Hannah said.
"We get “X” number of dollars from the state each year for
maintenance and operations (M & O) based on our square footage—money
that we are mandated to spend on this campus," Gray explained. "But
it's not enough money to keep up."
"The money for capital maintenance is a state appropriation, which
has been funded at about 25 percent system-wide," according to
Whitefield. "That's the reason why the deferred maintenance keeps
growing, because if you need $4 or $5 million a year just to keep up and you
get a half a million, the deferred maintenance just continues to defer. It
keeps adding up." Whitefield added that MTSU's 14-year average in capital
maintenance appropriations is just under $600,000.
MTSU leads the state in discovering ways to pay for projects that fall
under the deferred-maintenance umbrella without using additional state
appropriations. One major remedy for MTSU's aging facilities and financial
constraints was a commitment to a comprehensive energy management program
starting with the construction of the cogeneration plant in 1999 and followed
by the installation of new chillers, cooling towers, and pumping systems in
the chilled water plant. Replacing a 30-year-old steam plant, the cogeneration
plant was designed to generate half of MTSU's electrical needs and all of its
steam needs. "From the savings of not having to purchase electricity and
being more efficient, we are paying off the debt of the cogen plant,"
Gray said. "We're the only TBR school that has done this. Without this
type of thinking, we'd still be over there stoking the coal."
Both Gray and Whitefield credited Dr. Duane Stucky, vice president, for
Business and Finance, for initiating the cogeneration plant project and
several others in the mid 1990s, and raising awareness of the entire energy
management concept. An energy task force was formed to study additional
opportunities for implementing energy measures, and the CEE was established in
early 1999.
"If designed properly, some of these projects will provide an
added benefit of reducing the annual operational cost of the building by
providing energy savings or some other form of maintenance savings,"
Whitefield said. “Because of this, certain projects have attractive economic
paybacks, which provide new funding and financing options that will pay for
the initial cost of the project.”
The Tennessee Board of Regents has contracted with MTSU to assist other
schools in developing ways to invest in projects that will pay for themselves.
Self-sufficiency will become more and more necessary because the state doesn’t
have the funds, according to Whitefield.
Another strategy to replace aging building systems is "performance
contracting." In addition to the cost of actual construction, this method
also provides for the ongoing 'performance' of the systems for years following
construction, resulting in greater reliability and cost-savings. "The
savings justifies the project," Whitefield said. "Savings that can
be captured in an annual budget can now become the revenue source to pay off
any debt associated with financing the design and construction of the project.
When a project is self-funding and can be financed, it does not have to rely
on appropriated capital funding from the state."
The university has to assure the state that there will indeed be a
savings, Whitefield added. "If we do something that saves some energy,
the state allows us to keep those savings … and use those savings to pay off
maintenance.“
Siemens Building Technologies, Inc., an energy service company, is
working with MTSU staff to identify and implement $10 million of self-funding
projects at MTSU. These projects will encompass several facilities and involve
heating and cooling, lighting, water, mechanical and electrical improvements
that will translate into considerable savings through conservation. For
example, three measures have been identified in the central plant, which will
amount to approximately a $601,000 investment. These three projects will save
perhaps as much as $297,000 a year, which means a payback in two years. These
savings will not only return the initial investment but pay for much more over
a 10-year payback period. Other projects being studied include measures for
water conservation, lighting and mechanical improvements, and some HVAC work.
The work, totaling approximately $4.5 million, will produce considerable
savings through conservation.
Siemens is also discussing the possibility of cooperative education and
intern opportunities for MTSU students. "The
concept of energy efficiency and the classroom application of that concept
work well for the energy resource management concentration of the
environmental science and technology major. The use of the campus as a
learning laboratory is what we are striving to attain." said Dr. Kathy
Mathis, co-director of the CEE.
Revenue bonds are another funding source, Whitefield said. TBR has
chosen revenue bonds as a primary funding source for energy projects. The
cogeneration plant was funded in this manner.
"Bonded projects require state approval, but they are not part of
the state's budget that appropriates capital dollars since the state is not
paying for the cost of the project up front," he added.
"Buildings have a life," Whitefield said. "You have to
take care of them. This method allows us to take care of them. And we're not
competing for the same dollars among the schools."
MTSU is working with TBR on a system-wide procurement that will
contract with three energy companies for $60 million. "We want success
across the whole state," Whitefield added.
(Printed with permission: The Record, June 24, 2002 Vol.10 No. 25. A publication for the Middle Tennessee State University community.)
Energy
Certification Opportunities
In part the mission of the Center
for Energy Efficiency is to provide professional energy related training and
certification opportunities to public and private sector agencies, companies,
and individuals. Continuing education is essential in order to meet the
rapidly changing advances in today’s energy needs. By arranging for
qualified instructors to come to our campus, the Center provides the most
favorable circumstances to keep abreast of energy management. The Center
establishes low cost registration fees that cover the expense of the
instructors, course materials, and associated other costs. In addition, by
bringing the courses to our area, travel expenses for the attendees are
usually lower.
Certified Energy Manager
In March, the Center hosted the fourth Certified Energy Manager Seminar on
campus. This program is provided by the Association of Energy Engineers to
raise professional standards and improve the practice of energy management
through continuing professional development. Thirty-six attendees sat for the
exam at the end of the intense four day training session and passing rate was
83%. To date, about 60 have passed the CEM exams given at MTSU, completed the
application process, and been approved by the AEE certification board. Since
AEE established the certification program in 1981, 6,000 energy managers have
completed the certification process.
Measurement & Verification
Due to many requests, the Center is currently
considering offering a measurement and verification program in the spring of
2003. If you are interested in a management/M&V workshop or would prefer a
certification program such as CMVP (Certified Measurement and Verification
Professional), please contact us. Send an e-mail to the Center at cee@mtsu.edu.
Demand-Side Management
For
those in the demand-side management field, another certification opportunity
has been presented. The AEE board of directors has approved a special
grandfather clause for those CEMs who are practicing in this field and wish
additional recognition. As the CEM is the highest level of achievement, no
additional exam will be required to make application for Certified Demand-Side
Management status.
According to AEE, qualification for certification requires four years
of demonstrated experience in demand-side management, such as working for a
utility company implementing programs, being employed by an energy service
company, or working as a contractor or consultant who provides DSM bidding
services. Many utility companies wish to certify DSM professionals in their
companies or identify those who provide DSM services to them. There is a
streamlined process and reduced fee for qualifying CEMs. Contact Lesha Thomas
at AEE, 770-447-5083 extension 218, for additional information.
If you have specific needs for training or certifications that
can help you grow in the energy field, give you a competitive edge, or meet
your goals, contact the Center. Your interest in these and other
certifications reflects your pursuit of professionalism.
AEE
is Ready to Scramble Again
The
Middle Tennessee Chapter of the Association of Energy Engineers announces
their 3rd Annual Scholarship Scramble to provide scholarships for
students in energy
related fields for Friday, September 27, 2002 at Harpeth Hills Golf Course. In
the past two years, six scholarships totaling $5,000 were awarded to students
at MTSU, TTU, and TSU. The chapter works to keep members aware of the latest
technologies on a professional level and feels a responsibility to future
generations of those with similar goals and interests. Scholarships for
deserving students in the industry show the chapter commitment to the future
of the energy industry. The
golf tournament is for a good cause, and it’s fun. You don’t need to be an
AEE member or to have a team to participate. Individuals are encouraged to
register and team assignments will be made the day of play. Golfers and hole sponsors are needed. If
you are not a golfer, donations will be gratefully accepted. Just indicate so
on the registration form. Sponsor a hole for $175, play for $45, donate door
prizes, or donate to the scholarship fund. Play begins at 8 am on September
27. More details are included in the accompanying flyer. Complete the
registration form and return it to Ray Hinson, or call Ray for more
information. Phone 615-248-3670. Fax 615-248-3681.
Rayce-ing with the Sun
For the fourth year, the MTSU Solar Bike Team from the Engineering
Technology and Industrial Studies Department has competed in the national
Solar BikeRayce USA held in May at Heartland Park in Topeka, Kansas. The
Raider Raycer, adult, S-Class (specialized solar electric vehicle utilizing
only solar and battery power for locomotion), finished third in the Rayce.
Sponsors this year include MTSU’s College of Basic and Applied Sciences, the Association of Energy Engineers-Middle Tennessee Chapter, the Society of Manufacturing Engineers- Nashville Chapter #43, Siemens Building Technologies, and the Center for Energy Efficiency.
2002 TNAPPA at TSU
TNAPPA
(Tennessee Association of Physical Plant Administrators) offers a unique
opportunity for facilities professionals at higher education institutions in
Tennessee to come together, share experiences, and gain valuable insight into
what their colleagues on other campuses are doing. The May 2002 annual
conference hosted by Tennessee State University in Nashville combined the
technology theme with best practices survey information returned by the
members. Educational sessions on such areas as security, facility surveys,
preventative maintenance, and more offered a means to discuss problems and
solutions with peers.
MTSU presenters included Joe Whitefield, director, Center for Energy
Efficiency, with two conference sessions, "Identifying and Addressing the
Real Problems in Your Organization" and "Essential Measurements for
Everyone in Facilities", and a joint presentation by Kathy Musselman, director, Human Resource Services, and Dr. Kathy Mathis, associate professor, ETIS and co-director, Center for Energy Efficiency, on "Employee Education: Making the Most of Your Opportunities".
Just
FYI-
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MTSU’s energy management program was profiled recently as part of a NACUBO (National Association of College and University Business Officers) audio conference, “Energy on Campus II: Implementation of a Successful Energy Plan – The Middle Tennessee Experience” in June. Taking part in discussing the challenges facing higher education facilities to be more energy efficient, target deferred maintenance, and implement projects were Duane Stucky, vice president of finance and administration, MTSU; Joe Whitefield, director, Center for Energy Efficiency; and Jerry Preston, director of planning for the Tennessee Board of Regents.
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Linda Hardymon, coordinator, Center for Energy Efficiency, has met the qualifications and been certified as an Energy Manager by the Association of Energy Engineers certification board in Atlanta. The CEM program recognizes those who have demonstrated a high level of competence and ethical fitness for energy management. Including Hardymon, MTSU now has four CEMs on campus, Joe Whitefield, Kathy Mathis, and Reggie Floyd (Energy Services).
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Send your comments, questions, or concerns to Watts Happening c/o the Center for Energy Efficiency.
Contact
information:
Center
for Energy Efficiency
Middle Tennessee State
University
P.O. Box 57
Murfreesboro, TN 37132
Phone (615) 904-8096
Fax (615) 904-8093
E-mail: cee@mtsu.edu
http://www.mtsu.edu/~cee
A
Tennessee Board of Regents Institution MTSU
is an equal opportunity non-racially identifiable, educational university that
does not discriminate against individuals with disabilities.