[Iscn-members] FW: State Energy Efficient Design (SEED) Biennial Report

[HALL Jeni * DAS]

Please see below.

Jeni D Hall, OPMA
Enterprise Asset Management
Executive Support Specialist
Department of Administrative Services
503-510-1679 (call or text)

From: WELCH Amanda * ODOE <Amanda.WELCH at energy.oregon.gov>
Subject: State Energy Efficient Design (SEED) Biennial Report

Happy Tuesday,

I hope everyone had a great long weekend. On behalf of the Oregon Department of Energy, I am sharing the biennial report on the State Energy Efficient Design (SEED) Program. You can read the executive summary below and you can find the full report attached or online here<https://www.oregon.gov/energy/Data-and-Reports/Pages/Reports-to-the-Legislature.aspx>.

I would like to extend a thank you for working with ODOE to update energy data in Energy Star, discuss your buildings, share challenges you are facing etc. etc.

This report is meant to be a genuine representation of our buildings (and one a layman can understand).... I think we accomplished just that.

If anyone would like to set up a meeting to discuss the Report or the data therein, please reach out to me.

Otherwise, have a fantastic rest of your week!

[cid:631e8e09-a06e-4160-a1ab-74410c7ac692]<https://www.oregon.gov/energy>
Amanda Welch (she/her)
Energy Analyst
550 Capitol St. NE | Salem, OR 97301
P: (503) 508-3706
P (In Oregon): 800-221-8035
[cid:9bef7867-86b1-48b7-a4e1-36ecd54dd794]<https://www.oregon.gov/energy/Get-Involved/Pages/Subscribe-to-News-and-Info.aspx>

2023-2024 STATE ENERGY EFFICIENT DESIGN BIENNIAL REPORT

EXECUTIVE SUMMARY

The State Energy Efficient Design (SEED) Program builds on decades of energy efficiency efforts in Oregon's state agencies. This journey began in 1991 with the simple goal of minimizing the use of energy resources and has been bolstered throughout the years. Most recently, the state has created an innovative program called the Building Performance Standard (BPS), set to begin compliance in 2028. The Oregon Department of Energy (ODOE) chose to harness that sentiment of evolution in this biennial update.

Traditionally, this report focused on agency-specific efforts, since state energy management has fallen on individual agencies. While many agencies experienced success under this approach, some state-owned buildings have struggled to meet energy efficiency targets. As ODOE staff recommends in this report, a new approach can significantly improve the state's ability to achieve energy efficiency improvements and reach targets.

This biennial analysis is different from previous reports in that it has been revised to include a discussion of difficulties in target attainment; as of 2023, half of the buildings in the program reached their targets, and others have faced challenges that have been experienced across various agencies. Specifically, facility operators, managers, and technicians that ODOE staff spoke to while drafting this report mentioned difficulties in attaining capital funding, which have led to some major equipment being past useful life, and understaffed departments that must be reactive instead of proactive.

As a result, ODOE is recommending a holistic enterprise-wide approach, which will mirror advancements in building science. This will ensure consistent procedures for maintenance, equipment replacement, and training across the state's portfolio with the explicit goal of strategically updating our facilities.

Defining Holistic Enterprise-Wide Energy Management

An integrated approach that commits to an enterprise-wide energy management strategy would include:

*       Supporting individual agencies to identify building-specific challenges and energy savings opportunities. The Department of Administrative Services (DAS) has been tasked by legislation (House Bill 3409<https://olis.oregonlegislature.gov/liz/2023R1/Measures/Overview/HB3409>) with developing a searchable database for all state-owned equipment and associated greenhouse gas (GHG) emissions; agencies are then tasked with conducting equipment assessments and populating the database. This database will be central to determining equipment end-of-life and compliance with the Operations and Maintenance Plan for the new Building Performance Standards.

*       With a dynamic state-wide database, projects can be prioritized based on need and a more transparent process can be implemented. Additionally, BPS requirements, such as end of life calculations and preventative maintenance, will be easier to achieve.

*       After projects are identified, efficiencies can be created in the capital planning process by looking for common denominators and grouping projects together that will benefit from similar efficiency and procurement solutions. This will leverage bulk purchasing and reduce implementation costs.

*       Lastly, the state could encourage more long-term agency capital planning, going beyond traditional biennial budgeting. This could result in bundling of longer-payback projects, such as equipment replacement, with shorter payback projects to get deep energy savings and favorable returns.

A March 2020 Oregon Secretary of State Audits Division Report contains similar recommendations and can be found here<https://records.sos.state.or.us/ORSOSWebDrawer/Recordhtml/7227892>.

This biennial report represents the current conditions of state buildings, the main issues our facility teams are facing, and new opportunities for our state properties.

Top Risks to Energy Management in Oregon State Buildings

1.      Business-as-usual: Some state-owned buildings have struggled to attain energy efficiency. Without critically examining current practices, attainment will continue to be difficult.

2.      Planning to scale: A portfolio-based approach can allow a property owner, in this case an individual agency or the state government enterprise, to pool resources, deploy these resources in a strategic manner, and potentially save money through bulk or group purchasing efforts.

3.      Siloed financial decisions: Divisions within agencies and within the state government enterprise can operate in silos; a lack of alignment among facility teams, management, and budget-focused staff can lead to financial decisions that do not support the holistic nature of facility management.

4.     High operating costs: Reactive preventative maintenance, as opposed to a more proactive approach, can lead to additional charges from emergency repair fees, overtime, etc.

Top Opportunities for Energy Management in Oregon State Buildings

1.      Lead by example: A strategic and forward-looking approach to energy efficiency capital planning can bring about robust long-term energy efficiency gains and cost savings. Implementation of such an approach could demonstrate a prioritization of energy efficiency to the public and a model for private building owners trying to adhere to upcoming Building Performance Standards.

2.      Consistency among agencies: By approaching energy efficiency at a portfolio level - within individual agencies and across the state government enterprise - state government can ensure consistent and comprehensive information is used to drive data-based decisions. This will likely require support through funding and resources.

3.      Better financial investments: Capital planning efforts for buildings can help integrate financial and facility teams to break down silos and make well-rounded decisions.

4.      Strategic facility management: By taking a holistic approach and viewing the building portfolio as a harmonized system with lifespan milestones, state government can engage in proactive management that focuses on long-term sustainability.

This report is available online:  https://www.oregon.gov/energy/Data-and-Reports/Pages/Reports-to-the-Legislature.aspx

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