Rhode Island Convention Center • Providence, Rhode Island Renewable Energy Conservation Measures in ESPCs and UESCs Session: Incorporating Renewable Energy into Performance Contracts Tracy (Logan) Niro U.S. DOE FEMP August 10, 2016
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
Energy Exchange: Federal Sustainability for the Next Decade
Federal Renewable Energy Goals
Energy Exchange: Federal Sustainability for the Next Decade
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.
Energy Exchange: Federal Sustainability for the Next Decade
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
Energy Exchange: Federal Sustainability for the Next Decade
UESC Overview
Energy Exchange: Federal Sustainability for the Next Decade
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
Energy Exchange: Federal Sustainability for the Next Decade
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
Energy Exchange: Federal Sustainability for the Next Decade
• 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
Energy Exchange: Federal Sustainability for the Next Decade
Renewable Energy in The UESC Project Process
Energy Exchange: Federal Sustainability for the Next Decade
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
Energy Exchange: Federal Sustainability for the Next Decade
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
Energy Exchange: Federal Sustainability for the Next Decade
FEMP Data on UESC Projects with Renewable ECMs
Energy Exchange: Federal Sustainability for the Next Decade
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
Energy Exchange: Federal Sustainability for the Next Decade
• Wind Turbines
• Ground Source Heat Pumps
• Solar PV
• Solar Hot Water
• Hybrid Geothermal Pond
Renewable ECMs captured in FEMP database
Energy Exchange: Federal Sustainability for the Next Decade
• UESC Guide• UESC Enabling Documents
• Utility Partnership Program
• Data Collection• FUPWG
http://energy.gov/eere/femp/utility‐energy‐service‐contracts‐federal‐agencies
UESC Website
Energy Exchange: Federal Sustainability for the Next Decade
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
Energy Exchange: Federal Sustainability for the Next Decade
ESPC Overview
Energy Exchange: Federal Sustainability for the Next Decade
• 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
Energy Exchange: Federal Sustainability for the Next Decade
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
Energy Exchange: Federal Sustainability for the Next Decade
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
Energy Exchange: Federal Sustainability for the Next Decade
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
Energy Exchange: Federal Sustainability for the Next Decade
• 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
Energy Exchange: Federal Sustainability for the Next Decade
• 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
Energy Exchange: Federal Sustainability for the Next Decade
• 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
Energy Exchange: Federal Sustainability for the Next Decade
• 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
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The best time to bring up your interest in renewable energy is during the acquisition planning phase of
the ESPC process.
Energy Exchange: Federal Sustainability for the Next Decade
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
Energy Exchange: Federal Sustainability for the Next Decade
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
Energy Exchange: Federal Sustainability for the Next Decade
FEMP Assistance,
Resources and Contacts
Energy Exchange: Federal Sustainability for the Next Decade
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Energy Exchange: Federal Sustainability for the Next Decade
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Energy Exchange: Federal Sustainability for the Next Decade
Questions?
Contact Information
Tracy (Logan) NiroRenewable Energy Procurement
Program ManagerFederal Energy Management Program
U.S. Department of [email protected]
202‐431‐7601