Open Mic Webinar May 2012 Region 3s Energy Savings Performance Contract: Costs, Results and Lessons Learned Wednesday, May 16th at 1:00 ET.

Open Mic Webinar

May 2012

Region 3’s Energy Savings Performance Contract:

Costs, Results and Lesson’s Learned

Wednesday, May 16th at 1:00 ET

REGION 3 - ENERGY SAVINGS PERFORMANCE CONTRACT

SUSTAINABLE OPERATIONS OPEN MICMAY 16, 2012

P.E. LeybaU.S. Forest Service - Region 3

pleyba01@fs.fed.us

ESPC Partnership between Federal agency

and energy service company (ESCO).

ESCO conducts energy audit on facility and identifies energy conservation measures (ECM’S).

In consultation with the agency, ESCO designs and constructs project to meet agency's needs.

ESCO arranges financing for the project.

ESPC ESCO guarantees ECM’S will

generate energy cost savings sufficient to pay for project over the term of the contract.

Energy savings estimated, guaranteed @ 90%

Agency pays ESCO annually from energy cost savings.

After contract ends, all energy cost savings go to agency.

Contract terms of up to 25 years allowed.

ESPC Energy Savings Performance Contracts (ESPCs) allow Federal agencies to accomplish energy savings projects without up-front capital costs and without special Congressional appropriations.

USFS R3 ESPC DOE contract w/ various ESCO’s 2008 Honeywell was selected for R3

contract. February 2009 Honeywell “Energy Audit”

estimate for ECM’s ~$1,600,000 First year savings estimate = $103,000 First year savings GUARANTEE = $94,500 Simple payback = 15.7 years

USFS R3 ESPC March 2009 – R3 makes “buy down”

lump sum payment = $1,050,000. Balance = $550,000 + interest (6.88%)

= $650,000 over 8 year term. 8 annual payments of ~$80,000.

(“from annual energy savings”)

USFS R3 ESPC By April 1, 2010 – Most ECM’s installed. First payment due on April 1, 2010.

HOWEVER After evaluating all proposed ECM’s at all

sites for feasibility…………. Total cost of ECM’s ~$1,093,000 80+ Buildings, 9 National Forests With contract modification, annual

payments will be ~ $0, agency will incur energy savings.

USFS R3 ESPC FY11 payment = Principle + Interest +

Monitoring and Verification ~$60,000 FY 12 payment = Interest + Monitoring

&Verification (M&V) ~ $30,000 FY 13 – FY 18 = M&V ~ $3,000 / year Annual energy savings ~$65,000

ECM’S INSTALLEDHoneywell TH8110 Programmable Thermostat

Proposed = 600, Installed = 64

ECM’S INSTALLEDInncom E528 Intelligent Thermostat

LIGHTING ECM’S INSTALLED Linear Fluorescent, Next Generation T-8

lamps, High Efficiency Instant Start Electronic Ballasts

Incandescent LED Exit Signs Incandescent lamps Compact

Fluorescent lamps Control Sensors and Occupancy Sensors Linear Fluorescent, T-8 High Lumen Lamp

technology for High-Bay Facilities New fixtures including LED exit signs Proposed = 1468, installed = 4778

ECM’S INSTALLEDSolar Photovoltaic LED – Proposed = 64, Installed = 12

• Photovoltaic Panel • Charge Controller • Battery Backup

ECM’S INSTALLED

WOOD FIRED HEATER Proposed = 6, Installed = 1

ECM’S INSTALLED Solar Domestic Hot Water Proposed = 4, Installed = 2

ECM’S PROVIDED ELECTRIC METER / DATA LOGGER Proposed = 31, Actual = 31 USFS responsible for deployment

of the meters on the buildings as they see fit.

The meters are capable of monitoring 3 phase power and storing the electric power information for several months.

The USFS will be able to download and analyze power data.

USFS R3 ESPCProject Totals

 KWH Annual

Electric Savings$ Annual

Electric SavingsMMBTUAnnual Gas Savings

$ Annual Gas Savings

$ Toal Annual Savings

ECM 3.1: T-Stat Savings 31,845 $2,930 272 2,473 $5,403ECM 5.1: Lighting Savings 549,469 $50,719 0 0 $50,719ECM 11.1: PV-LED Savings 31,296 $2,879 0 0 $2,879ECM 11.2: Wood Heater Savings 1,000 $92 0 0 $92ECM 11.3: Solar DWH Savings 33,407 $3,074 0 0 $3,074ECM 18.1: Sub-Meters Savings 25,917 $2,391 0 0 $2,391

Total Savings 672,933 $62,084 272 2,473 $64,558

USFS R3 ESPCWHAT NEXT???? Accounting for all installations. Warrantee items Energy savings monitoring by both ESCO

and USFS. (M&V) Annual payments for remainder of term

for M&V.

R3 ESPC - LESSONS LEARNED

MORE ECM’S IN CLOSER LOCATIONS HIGHER THE $ VALUE THE BETTER LIGHTING ECM’S = MOST OF INSTALLS TRAINED FS PROJECT MANAGER TRAINING FOR LOCAL CONTACTS TYPE OF $ USED FOR PAYMENTS VS. TYPE

OF $ SAVED? ONLY INCLUDE BUILDINGS LIKELY TO BE IN

SERVICE THROUGH CONTRACT PERIOD ESTIMATED ECM’S MAY NOT = ACTUAL

Training available: June 7, 2012 Streamlining ESPCs for Small Sites (Web-

based) Offered by FEMP, webinar fosters skill in

using ENABLE - a streamlined ESPC process that allows smaller facilities to contract with ESCOs on energy-saving projects. Includes eligibility criteria, the use of standardized forms as well as self-assessments to reduce application time, costs, reviews, and approvals.

Time 01:30 PM to 03:00 PM (Eastern) http://

www.fedcenter.gov/Events/index.cfm?id=21103

OTHER FEMP TRAINING OPPORTUNITIES – http://apps1.eere.energy.gov/femp/training/