Energy Conservation Measures in ESPCs and UESCs€¦ · Rhode Island Convention Center • Providence, Rhode Island Renewable Energy Conservation Measures in ESPCs and UESCs Session:

Rhode Island Convention Center • Providence, Rhode Island

Renewable Energy Conservation Measures in ESPCs and UESCs

Session: Incorporating Renewable Energy into Performance Contracts

Tracy (Logan) NiroU.S. DOE FEMPAugust 10, 2016

Energy Exchange: Federal Sustainability for the Next Decade

• Federal Renewable Energy Goals

• UESC

• ESPC

• FEMP Resources

Presentation Outline


Federal Renewable Energy Goals


EO 13693 – Renewable and Clean Energy Goals

Requirement Electric/Thermal Details

Renewable Goal Electric

10% FY2016‐1715% FY2018‐1920% FY2020‐2125% FY2022‐2330% FY2025 and thereafter

“Clean Energy” Goal(renewable & alternative energy)

Electric & Thermal

10% FY2016‐1713% FY2018‐1916% FY2020‐2120% FY2022‐2325% FY2025 and thereafter

Definition of “new” forRECs*

*If project RECs are sold, replacement RECs must meet this definition.

For EO sections 3(d)(iii) and (iv), RECs must be produced by sources of renewable energy placed into service within 10 years prior to the start of the fiscal year.


EPAct 2005 and EISA 2007 Goals

Requirement Electric/Thermal DetailsEPAct 2005 Federal Use Goal

Electric 7.5% FY13 and beyond

EISA 2007 Solar Water Heating Requirement

Solar Water Heating 30% of hot water needs in all new buildings or major renovations


UESC Overview


10 USC 2913 Energy Savings Contracts and Utilities

Title 10: Armed Forces; Chapter 173

• Encourages participation in gas or electric utility programs for the management of energy demand or for energy conservation

• Accept financial incentives, goods and services generally available from the utility

• Direct negotiation with energy savings contractors selected competitively and approved by the utility

• Repay with funds available for the purchase of utility services

• Allows direct negotiation with ESCO competitively selected and approved by the utility

Department of Defense

UESC Statutory Authority

Energy Policy Act of 1992(codified at 42 U.S.C. 8256)

• Authorizes and encourages Government agencies to enter into agreements with electric, water, and gas utilities to design and implement cost‐effective demand and conservation incentive programs in order to address the requirements and circumstances of the Government installations.

All Federal Agencies


A UESC is a multiyear energy management services contract between a federal agency and its franchised serving utility for the purpose of producing measurable energy or water reductions or measurable amounts of demand reduction.

What are UESCs?

• Assesses the opportunities• Provides financing through a third party• Purchases the equipment and gets it installed• Assures equipment performance and standards of service

Utility

• Pays utility over term of contract from cost savings achievedAgency

A UESC is a Partnership


• Agencies can include renewable Energy Conservation Measures (ECMs) within:

• Utility Energy Service Contracts (UESCs) ‐ 28 projects with renewable ECMs (per UESC database).

• Note: National Environmental Policy Act (NEPA) compliance is required for all Federal agencies.

Renewables in UESCs


Renewable Energy in The UESC Project Process


Utility Selection Letter• Letter serves as a notice to proceed with the Preliminary Assessment (PA).

• In addition to the standard energy and water conservation measures investigated as part of a PA; it is also requested that the study incorporate:– Renewables– Commissioning– Performance Assurance– Other incentives.– Identification of available Tax Credits.

UESC Acquisition Planning


Preliminary Assessment Statement of Work• Potential Energy and Water Conservation Measures

– Potential water conservation measures and ECMs including commissioning and renewable energy system opportunities shall be evaluated for each building, structure, or area surveyed at the Site/Location in order to develop potential ECMs.

– Agency should aim to bundle RE systems with other energy and water measures to identify comprehensive project.

Feasibility Study Statement of Work• Deliverable Requirements

– Detailed findings and supporting analysis for renewable energy opportunities.

UESC Project Development


FEMP Data on UESC Projects with Renewable ECMs


Aggregate total capital investment by agency from UESC database

UESC Projects with Renewable ECMs

Agency Investment

Air Force $ 172,689Army $ 11,954,438Department of Energy $ 73,000

Defense Logistics Agency $ 27,691,185Federal Aviation Administration $ 8,970,000Marine Corps $ 6,365,100Navy $ 9,966,198


• Wind Turbines

• Ground Source Heat Pumps

• Solar PV

• Solar Hot Water

• Hybrid Geothermal Pond

Renewable ECMs captured in FEMP database


• UESC Guide• UESC Enabling Documents

• Utility Partnership Program

• Data Collection• FUPWG

http://energy.gov/eere/femp/utility‐energy‐service‐contracts‐federal‐agencies

UESC Website


David McAndrew, Utility Program [email protected]‐586‐7722

Karen Thomas, National Renewable Energy [email protected]

Deb Vasquez, National Renewable Energy [email protected]‐384‐7548

Julia Kelley, Oak Ridge National [email protected]‐574‐1013

Doug Dixon, Pacific Northwest National [email protected]‐372‐4253

Utility Team Contacts


ESPC Overview


• National Energy Conservation Policy Act, Title VIII Shared Energy Savings (1986)

• Energy Policy Act of 1992 (EPACT 1992)• DOD Authorization Act 2004• Energy Policy Act of 2005 (EPACT 2005)• Energy Independence & Security Act (EISA 2007)

(42 USC 8287 – ESPC statutory authority)• 10 CFR 436 Subpart B – Implementing Regulations• National Defense Authorization Act FY11

(applies to all DOD and civilian agencies)• Federal Acquisition Regulations Part 23• Executive Order 13423

ESPC Statutory Authority


ESPC Review: What are they?

Contracts that allow agencies to do energy projects with minimal up‐front capital cost and no special appropriations from Congress.

• Arranges project financing• Guarantees cost savings sufficient to cover project costs

Energy Service Company (ESCO)

• Pays ESCO over term of contract from guaranteed cost savingsAgency


Reallocate the Government’s Utility Bill Stop paying for waste and pollution Start paying for efficiency

ESPC Overview

ESPC Review: Budget Neutral

$for

Energy + Related

Operations &Maintenance

$for

Energy + O&M

$for

Energy + O&M

SavingsExcess Savings

Payments to ESCO

BeforeESPC

PerformancePeriod

AfterESPC Term


Benefits• Financing of up‐front costs• Performance guarantees• A partner (the ESCO) who is also invested in the success of the technology

• FEMP assistance and resources, including experts from DOE national labs

• Financial incentives may be available to help offset first costs

22

Advanced EE and RE in ESPCs


• ESPCs are a proven vehicle for deployment of advanced EE and RE– Risk management– ESCOs invested in project success

• FEMP provides support every step of the way

Agency Motivation Makes it Happen!

23

Reasons to Consider RE in Your ESPC


• Bring up renewables early in acquisition planning• Contact a FEMP Federal Project Executive

– FPE can arrange screenings and other assistance– FEMP can schedule a meeting with the agency to review technologies

– FEMP can get help from technology experts from the national

• Bringing the ESCO into the discussion can speed incorporation of renewables

• Visit FEMP’s Renewable Energy pages: http://energy.gov/eere/femp/federal‐renewable‐energy‐projects‐and‐technologies

How to Get Started

24


• Screenings offered by FEMP: First‐come, first‐served (and depending on available funds)

• NREL completes high‐level screening and report evaluating site’s potential resources for RE:– Wind– Solar

• PV, solar thermal, solar water heating, solar ventilation preheating

Renewable Energy Screenings

25


• As part of acquisition planning, agency enters site data on FEMP‐provided form

• Agency submits completed form to NREL• NREL completes the screening and returns the report in about four weeks

Obtaining a Renewable Energy Screening

26

The best time to bring up your interest in renewable energy is during the acquisition planning phase of

the ESPC process.


ESPC ENABLE is an alternative energy performance contracting program:• Intended for smaller projects at federal facilities (underserved market)

• Or where ENABLE presents the best or only option for the agency to fund a project• Is intended for Federal facilities with buildings under 200,000 square feet • Project size $200k ‐ $6.5 million• No fixed minimum or maximum facility or $ size

• Standardized and streamlined process to quickly award projects and realize savings using GSA Schedule 84, SIN 246‐53• Templates, IGA tool• No preliminary assessment

• Targets straight‐forward ECMs including lighting, water fixtures, basic HVAC controls, HVAC equipment replacement and solar PV

• Prescribes basic levels of measurement and verification (M&V) for each ECM –primarily Option A

ESPC ENABLE


Kurmit Rockwell, ESPC Program [email protected]‐586‐2078

Ira Birnbaum, ENABLE Program [email protected]‐287‐1869

Doug Dahle, National Renewable Energy [email protected]‐384‐7513

Tom Harris, National Renewable Energy [email protected]

Bob Slattery, Oak Ridge National [email protected]‐548‐0549

ESPC and ENABLE Team Contacts


FEMP Assistance,

Resources and Contacts


STREAMING SEMINARSSELF‐PACED INTERACTIVE eTRAINING

ON‐SITE WORKSHOPSON‐DEMAND WEBINARS

• Competency‐based training supporting the FBPTA for energy and facility managers, contracting officers, and support staff.

• CEUs Awarded, also AIA and USGBC credit.

• Equally relevant to state and local government personnel, utilities, and the private sector.

• Designed to engage: self‐paced, multi‐media, interactive, progress checks.

Improve your job skills! Advance your career with FEMP’s online training!

Online, On‐demand, 24/7

Self‐paced format

No‐cost, no‐travel

Convenient opportunities to expand job skills

FEMP Training


FEMP Training Search

Find a course that meets your training needs quickly and easily!

Search by:• Topic 12 topic areas• Format Broadcast or on‐demand• TypeOn‐site, online• Level 101, 201, 301

The FEMP Training Search makes course selection simple

Visit the FEMP Training Search at: http://www.eere.energy.gov/femp/training


Questions?

Contact Information

Tracy (Logan) NiroRenewable Energy Procurement

Program ManagerFederal Energy Management Program

U.S. Department of [email protected]

202‐431‐7601