Energy S gy Savings Performance C Contr tracts ts (ESPCs) Drive - - PowerPoint PPT Presentation

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Energy S gy Savings Performance C Contr tracts ts (ESPCs) Drive - - PowerPoint PPT Presentation

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Energy S gy Savings Performance C Contr tracts ts (ESPCs) Drive E e Efficien ency-Enabled New I Infrastr truc uctur ture Lesli lie Nicholls ls Acting g Direc ector, F Fed eder eral al E Ener ergy gy M Man anagem agemen

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1 U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY

Energy S gy Savings Performance C Contr tracts ts (ESPCs) Drive E e Efficien ency-Enabled New I Infrastr truc uctur ture

Lesli lie Nicholls ls Acting g Direc ector, F Fed eder eral al E Ener ergy gy M Man anagem agemen ent Pr Progr gram am

February 20, 2018

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2 U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY

Estimated Impact of $20.3 Billion in Federal Facility Efficiency Investment on 2007-2016 Energy Use Energy consumption today Where we would be without previous 10 years EE investment

Program Overview- Impact

Fed eder eral al En Ener ergy Ef Efficien iency: Accomplishments

$2.4* billion of avoided costs in 2016 $20.3 billion of investment is equivalent to 162,000 job-years

*at cost of electricity

Goal Buildings, 312.6 Excluded Facilities, 37.6 Fleet Vehicles, 49.8 Non-Fleet Mobility, 517.3

Federal Gov't Energy Use by Sector: 0.9 Quadrillion Btu (in Trillion Site-Delivered Btu)

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3 U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY

Fed eder eral al En Ener ergy Ef Efficien iency: The Long Road of Progress

GSA facilities

51,273 73 Btu p

per er gs gsf

With assistance from FEMP-supported initiatives and partnerships, the Federal Government has reduced its facility energy intensity by 49 49 percent since 1975 and 25 25 percent since 2003. Comparison

Federal Office Buildings U.S Average

77, 7,80 800 0 Btu pe

per gs gsf

52 per percent lower r than U U.S .S A Avera rage

VA facilities

145, 45,142 42 Btu pe

per gs gsf

Federal Healthcare Facilities U.S Average

172, 72,700 00 Btu pe

per gs gsf

19 19 per percent lower th than U n U.S Average

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4 U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY

Fed eder eral al En Ener ergy I Inves estmen ents: : The Potential

While e ther ere e has b been een great progr gres ess, additio ional l

  • pportunities exist for f

further energy c y cost r reduction and energy c y conservatio ion.

  • Between $9 b

bil illi lion and $15 bil illi lion of potential self- financing efficiency measures is estimated to exist in Federal buildings.

  • The level of deferred maintenance and repairs is also

increasing, with approximately $165 bill illion required to bring government owned property, plant and equipment to an acceptable condition.

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5 U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY

Gro rowing O Oppo portunities f for C r Cost S Savings a at Fede dera ral Facilities

Fortunately, new technology continues to provide opportunities to mine efficiency

  • Lighting: LED lighting offers efficiency improvements of 50-80% over

incandescent and earlier generation fluorescent lighting

  • Boilers: Modern condensing boilers can now operate with combustion

efficiencies in excess of 90% vs. 75% from a typical boiler installed in the 1980’s

  • Chillers: Current centrifugal chiller technologies can offer cooling solutions

that use approximately half the energy of those installed just three decades ago

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6 U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY

Impa mpacts R Re: e: Mi Mission Assu suranc nce

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7 U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY

ESPCs I Improve R Resilience at Fed ederal Faci cilities

  • Protections against aging infrastructure

and equipment failure

– Comprehensive, fence to fence ESPCs can include a focus on aging equipment with a high probability of failure

  • Protections against weather and

environment related events

– CHP – Micro-grids/controls – Diesel Generator O&M – Renewable generation – Battery storage – Fuel and water storage and efficiency

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8 U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY

Fed eder eral al Energy M y Manag agemen ent t Program am: FY18 Activities

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9 U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY

Agency r requirem emen ents a s addressed b essed by ESPCs Cs

  • Repair or modernization of infrastructure
  • Reduce maintenance headaches
  • Increase reliability, capacity, functionality
  • Improve occupant work environment
  • Provide critical facility data for operations and benchmarking
  • Reduce utility bills
  • Reduce O&M responsibility and expense; avoid deferred

maintenance problems

  • Improve Agency energy security and resiliency

Agenc ency P Priorities

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10 U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY

$$$

for Energy + Related Operations & Maintenance

$$

for Reduced Energy + O&M

$$

for Energy + O&M Savings $

Excess Savings

Payments For Retrofit

Before ESPC Performance Period After ESPC Term

The Government’s Utility Bill with an ESPC:

♦ Retrofit enables energy, water, O&M savings ♦

Savings pay for the retrofit

ESPC SPCs: Budget et-neutra ral T Tool to I Impr prove I Infra rastru ructure re

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11 U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY

  • Legislated purpose: achieve energy

savings and ancillary benefits for facility energy (about 40% of total USG energy use is facility energy)

  • Savings guarantees and

measurement and verification (M&V) are mandatory

  • Savings must exceed payments for

each year

  • Contract term cannot exceed 25

years (starting with award of the task order)

  • Combining financing and

appropriations for biggest impact

Key F y Features o

  • f ES

ESPC PCs

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12 U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY

  • Provides development and installation of

energy and water conservation measures

  • Guarantees resulting cost savings sufficient

to cover project cost

Energ rgy y Servi vices Compan pany (ESCO SCO)

  • Requests/reviews ESCO proposals
  • Pays ESCO over term of contract from

guaranteed cost savings

  • Monitors annual Measurement and

Verification protocol to ensure savings

Agen gency cy

ESCOs s and A Agencies: A s: A public/private p partnersh ship

These contracts allow energy service companies (ESCOs) to identify and implement energy efficiency upgrades paid for by energy savings without additional appropriations.

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13 U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY

ESPCs I IDI DIQ Q Proces cess, i , in n Bri rief ef:

  • Agency issues a Notice of Opportunity to all IDIQ ESCOs, reviews

responses, and eventually selects an ESCO to perform a Preliminary Assessment.

  • ESCO does a Preliminary Assessment to determine likely viability

and, after agency authorizes, completes an Investment Grade Audit and Proposal of energy saving measures

  • Agency reviews, negotiates, and approves
  • ESCO and subcontractors (many are small businesses) install project
  • Commissioning to ensure equipment performance, then acceptance
  • Measurement and Verification (M&V) is performed thereafter,

yielding savings information

  • Results: energy efficient infrastructure upgrades for the federal

agency; jobs (manufacturing, electricians, plumbers, truckers, building trades, HVAC, solar installers, etc.); and energy savings.

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14 U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY

  • ABM Government Services, LLC of

Hopkinsville, KY

  • AECOM Technical Services, Inc. of

San Diego, CA

  • Ameresco, Inc. of Framingham, MA
  • The Brewer-Garrett Company of

Middleburg Heights, OH

  • CEG LLC of Arlington, VA
  • Consolidated Edison Solutions Inc.
  • f Valhalla, NY
  • Constellation NewEnergy, Inc. of

Baltimore, MD

  • EDF Renewable Energy of San

Diego, CA

  • Energy Solutions Professionals, LLC
  • f Overland Park, KS
  • Energy Systems Group, LLC of

Newburg, IN

  • Honeywell of Golden Valley, MN
  • Leidos Engineering, LLC of

Oklahoma City, OK

  • Lockheed Martin Corporation of

Rockville, MD

  • Noresco United Technologies of

Westborough, MA

  • OpTerra Energy Services of

Overland Park, KS

  • Schneider Electric of Austin, TX
  • Siemens Government Technologies,
  • Inc. of Arlington, VA
  • SmartWatt Energy of Ballston Lake,

NY

  • Southland Energy of Dulles, VA
  • Trane U.S. Inc. of St. Paul, MN
  • WGL of McLean, VA

21 21 DOE DOE ESP SPC I C IDI DIQ Q 3 3 ESCOs SCOs: : New A Awards

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15 U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY

20 20 ESP SPC E C ENABLE ESCOs COs: N New A Award rds

ABM Government Services, LLC, Hopkinsville, KY Honeywell International, Inc., Oak Creek, WI * AMEC Foster Wheeler Environment & Infrastructure, Inc., Blue Bell, PA Johnson Controls, Inc., Milwaukee, WI * AMERESCO Federal Solutions, Inc., Knoxville, TN * Legatus6, LLC, Chevy Chase, MD ** American Development Institute, LLC, Smithfield, RI ** Pacific Lighting Management, Inc., Santa Ana, CA ** The Brewer-Garrett Co., Cleveland, OH Siemens Industry, Inc., Buffalo Grove, IL * Constellation NewEnergy, Inc., Baltimore, MD * Southland Industries, Garden Grove, CA CTI Energy Services, LLC, Amherst, MA ** Trane U.S., Inc., La Crosse, WI * Dominion Energy Management, Inc., Ashland, VA ** Utility Systems Solutions, Inc., Dallas, TX ** The Efficiency Network, Inc., Pittsburgh, PA ** Williams Electric Co., Inc., Fort Walton Beach, FL ** Green Generation Solutions, LLC, Bethesda, MD ** Woodstone Energy, LLC, Madison, TN **

* = DOE IDIQ ESPC ESCO ** = Small Business

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16 U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY

336 64 32 31 24 22 17 16 11 11 9 9 5 4 3 3 2 2 1 1 1 1 10 100 1000 DOD GSA DOJ VA DOE DHS DOI USDA NASA NARA HHS DOT DOL DOS AOC SI NGA SSA HUD DOC EPA Number r of ESPC PC Pro Projects a award rded b by y Agency F y FY98-17 17 (DOE IDIQ + Army MATOC)

Age gency y us use of

  • f E

ESPCs

Broad Agency Use Investment Growth Over Time

$0.0 $200.0 $400.0 $600.0 $800.0 $1,000.0 $1,200.0 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 ($ ($M)

Federal E ESPC A Awards (FY99 Y99 - FY17) 17)

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17 U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY

ES ESPC PC Project ect E Exampl mple: : Energy gy Res esilien ency

GSA: FD FDA White Oak C Campus, M Maryl yland

  • 3 phase project to develop onsite

electrical generation and micro-grid

  • Combined Heat and Power system

capable of off-grid operation (utilized 47 times over 18 month period, operations uninterrupted)

  • System redundancies, dual fuel

capabilities

  • Improved uptime >99.999%

Campus size 3.9 million sq-ft Investment value $280 million Utility/Operations Cost savings $43.6 million/year Energy savings 915 MMBtu/year (30%) KEY ENERGY C Y CONS NSERVATIO ION N MEASUR URES ( (ECMs):

  • Combined Heat and Power (CHP),

26MW of power generation

  • Absorption Chillers – operate on

waste heat.

  • Thermal Energy Storage
  • Back-up Steam Boilers (dual fuel)
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18 U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY

KEY ENERGY C Y CONS NSERVATIO ION N MEASUR URES ( (ECMs):

  • Central chilled-water plant
  • Integrative building controls and

sensors

  • 11,000+ LED replacements
  • 808 kW solar PV
  • Geothermal heat rejection
  • Exhaust-to-Outdoor-Air heat-

recovery loop

ES ESPC PC Project ect E Exampl mple: : Deep Deep Ret etrofit Re-desig ign

Building size 1.2 million sq-ft Original construction 1994 Investment value $40 million Utility Cost savings $2.5 million/year Energy savings 95,588 MMBtu/year (60%) The N New C Car arrolton F Federal Buil ildin ing, M MD Deep Deep-Retr trofit E t ESPC

  • Hinged on a complete re-design of

the existing HVAC system to reduce chiller tonnage by 40%

  • 11,000 LEDs, 808 kW solar PV,

window glazing, and “rain gardens” installed

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19 U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY

Annual m mea easuremen ent of

  • f sa

savings v ver erifies t that per perfor

  • rmance

con

  • ntracting g

gen ener erates per persi sistent sa savings

  • Reliable Cost Savings1

– ESPC savings achievement: 103+% of guaranteed savings (reported annually on FEMP’s webpage)

  • Actual savings to agency budgets over time: 174% to 197% of

contract savings2

– Savings beyond term – Under-estimate of equipment performance – Under-estimate of utility escalation

  • How do appropriations-funded projects compare in savings?

– Largely unknown: lack savings guarantee and not monitored annually

  • n a widespread basis.

1Coleman, Earni, and Williams (PNNL, 2014) 2Shonder (ORNL, 2013)

Per erforma mance Co e Cont ntracts P Per erform W rm Wel ell

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20 U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY

  • FEMP’s federal team provides program oversight
  • DOE’s Golden Field Office issues IDIQ, contract
  • versight.
  • FEMP Federal Project Executives help agencies chose

the best performance contract to meet their needs

  • Experienced Project Facilitators and uniform project

development guide support project dev’l.

  • Training, contracting resources, templates, and tools

(such as REopt and cost benchmarks).

  • Application of lessons learned to guidance and

process improvement (e.g., revised M&V Guidelines)

DOE/FEM EMP P Perfor

  • rmance Contracting S

g Support

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21 U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY

  • Provision of eProject Builder tool to support key contract

documents and as one stop data resource on project performance of its life.

  • FEMP technical and DOE IDIQ ESPC Contracting Officer

task order reviews

  • Life-of-Contract Services (e.g. Contract Administration

training for staff turn-over)

  • Agency level ESPC portfolio analysis
  • Analysis of program effectiveness (e.g. Annual Savings

Report)

DOE/F /FEMP MP Per erformance C e Contr tracting Su Support

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22 U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY

  • ESPCs generate a range of highly skilled, good paying

jobs:

– Engineering: electrical, mechanical, building operations – Construction: building trades (replacing windows, adding insulation, sealing ductwork and buildings…), HVAC, Electricians, Plumbers; – Installation of generation assets, such as solar arrays. – IT and controls in construction and operations – Manufacturing jobs, Transportation, and other jobs

  • Job creation estimate:

– Over 35,000 job-years over the last 5 years

ES ESPC PCs Cr Crea eate e High ighly ly Skilled ed Job

  • bs
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23 U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY

ESPCs: Mo : Most A Agenc encies es, A All States es

  • ESPCs utilized by 21

federal agencies

  • ESPC projects across

all 50 States, D.C., Puerto Rico, Guam, Virgin Islands

  • USG facilities abroad:
  • South Korea
  • Germany
  • Spain
  • Nicaragua
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24 U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY

Feder ederal E ESP SPC B C Benef enefits

  • Infras

astructure: $7.7 B in investment since 1998 addresses a portion of the backlog in federal buildings and maintenance needs

  • Jobs & Economi
  • mic Impac

act of $7.7 billion investment created 77,000 jobs (job- years)

  • Su

Support f for

  • r U.S.

U.S. man manufacturing

* http://www.nam.org/Issues/Energy-and-Environment/Affordable-Energy/Domestic- Energy/Improving-Federal-Energy-Savings-Through-Performance-Contracting--Full-Report/

Typical trades supported through ESPC investment:

  • HVAC Technicians
  • Electricians
  • Plumbers
  • Construction Labor
  • Construction

Management

  • Manufacturing Labor
  • Engineers
  • Project Managers
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25 U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY

  • Lack of Federal goals that make Energy Savings Projects

a top priority.

  • Appropriations may be most commonly used on “low

hanging fruit” instead of achieving maximum impact leveraging ESPCs.

  • O&M savings can enable more comprehensive projects,

but are underutilized: budget uncertainty for those accounts vs long term contractual obligations.

  • O&M and Resilience funding is limited: required to

enable savings.

  • Authority for ESPCs is limited to facilities, 2009 Report to

Congress indicates great opportunity for expansion to mobility energy using assets. Widel dely Used sed—but used sed Enou

  • ugh?
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26 U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY

3rd

rd Gener

eration D DOE I IDIQ C Q Contract A Awarded ed

“This program highlights how the public and private sector partnerships can align with the Administration’s objectives for increased energy efficiency and job creation without burdensome regulations”

  • U.S. Secretary of Energy Rick Perry

Perfor

  • rma

mance C Contracting Delivers R s Resu sults

$55 billion contract ceiling available *$10-15 billion of federal cost-effective investment potential available

*Estimate is based on data from the Federal Energy Management Program’s Compliance Tracking System Database and Lawrence Berkeley National Laboratory’s “Updated Estimates of the Remaining Market Potential of the U.S. ESCO Industry,” April 2017

ESPC IDIQ Contract Accomplishments 1997-2017

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27 U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY

QUESTIONS?

Leslie.Nicholls@ee.doe.gov