Femp.energy.gov 1 US DOE Perspective on Deep Energy Retrofits Cyrus Nasseri US Department of Energy Annex 61 Technical Day April 13, 2015.

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US DOE Perspective on Deep Energy Retrofits

Cyrus Nasseri

US Department of Energy

Annex 61 Technical Day

April 13, 2015

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Definition of deep energy retrofit

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• Usually defined in terms of percent energy reduction– Greater than 30% and as much as 60% (or higher)

• However, the definition will always be subjective because the ability to implement a deep energy retrofit depends on:– Pre-retrofit energy use– Climate– Energy prices

• DOE is interested in developing a consensus definition

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• EISA Legislation requires a 30% reduction in energy use in federal buildings by 2015 relative to the 2003 baseline

• Energy performance contracts – the main vehicle for comprehensive energy retrofits in the US federal government – are able to achieve 20% reductions in energy use, on average

• Meeting the 30% goal will require the government to go beyond the typical retrofit projects that have been implemented so far

• Government has goals for greenhouse gas reductions as well

• EISA 433 – currently up in the air, but could be an important driver for deep retrofits as well

US government’s interest in deep retrofits

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• Planning for federal sustainability in the next decade• Cut greenhouse gas emissions by 40 percent (from

2008 levels)• Increase the use of renewable electricity by 30

percent• Expand the federal fleet with alternative fuel

vehicles and cut greenhouse gas emissions per mile by 30 percent

• Cut energy use at federal facilities by 2.5 percent• Reduce water demands by 2 percent.

New Executive Order 13693, March 2015

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• Renewable energy sources tend to be costly• Key is to reduce energy use first, then install

renewables to meet reduced loads• Minimizing cost of renewables makes them more

affordable• Thus deep retrofits may make it easier for US

federal government to meet renewable goals

Deep retrofits and renewables

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Progress toward goals

85,000

90,000

95,000

100,000

105,000

110,000

115,000

120,000

125,000

130,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Btu

per

Gro

ss S

qu

are

Fo

ot

Fiscal Year

Overall Government Progress Toward Facility Energy Efficiency Goals, FY 2003 - FY 2014

2014 Progress100,573 Btu/GSF21.0% Reduction

EISA/E.O. 13423 Goal30% Reduction

in 2015

EISA/E.O. 13423 Goal27% Reduction in FY 2013

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Progress by Agency

1%11%11%

12%16%

16%18%

19%21%21%

24%25%

26%

27%27%27%

28%28%

29%30%

30%32%

32%33%

43%

-10% -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55%

OPMState

USACESI

TRSYHUDDODDOT

VATotal Gov't

DHSDOL

NASAGSASSATVAHHSDOEEPA

DOCNARAUSPSUSDA

DOIDOJ

Percent Reduction in Btu/Gross Square Foot, 2003-2014

44% in 2013

34%

25%

19%

10%

5%

5%

26%

29%

17%

26%

26%

24%

22%

25%

20%

27%

35%

21%

20%

17%

23%

31%

16%

10%

20152014

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Greenhouse gas emissions

11.0 10.6 10.2 9.4 9.4 9.6

2.2 1.4 2.1 1.9 1.9 1.7

2.92.7 2.8 2.7 2.6 2.6

1.4 2.0 1.0 1.0 1.3 1.2

0.2 0.1 0.2 0.2 0.2 0.1

32.0 31.5 30.528.4 27.5 27.6

1.7 2.41.7

1.6 1.9 1.4

0.1 0.10.1

0.1 0.1 0.1

0.0

-1.8 -1.7 -1.6 -2.3 -1.9

-10

0

10

20

30

40

50

60

2008 2010 2011 2012 2013 2014

Scop

e 1

& 2

GH

G E

mis

sion

s (M

illio

n M

etric

Ton

s of

CO

2 Eq

uiva

lent

) Reductions from REuseOther

Chilled Water

Steam and Hot Water

Purchased Electricity

Industrial ProcessEmissionsFugitive Emissions &IncineratorsFAST Data (fleets)

Vehicles andEquipmentStationary Combustion

49.151.5

47.043.6 42.7 42.4

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Funding sources for federal projects

$169 $181 $291 $281 $335$469

$1,081

$3,544

$2,566

$1,081$794 $901

$429

$36

$123$314 $166

$356

$457

$512

$369

$375

$482

$701

$122

$54

$92

$70 $139

$110

$142

$64

$165

$99

$84

$105

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Mill

ion

s o

f U

nad

jus

ted

Do

llars

Fiscal Year

UESC ESPC Direct Appropriations

$271$505

$666

(ESPC Hiatus)

$720$640

$935

$1,681

$4,120

$3,100

$1,555$1,360

$1,707

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• Improve envelope to reduce heating and cooling loads– Increase wall and roof insulation– Seal envelope to reduce outdoor air infiltration– Heat recovery ventilation– Efficient windows– Insulated doors

• Reduce lighting and appliance loads• Install efficient HVAC, occupancy controls• Install renewable generation

How deep energy savings are achieved

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• Performance contracting is the main vehicle for comprehensive energy retrofits in the US federal government– However, 20% energy savings seems to be the economic limit for

pay-from-savings projects– Large “buydowns” required to achieve higher level of savings

• The government also spends a great deal of money on building renovations– Objective is to modernize and extend the useful life of the building– Energy savings is not the primary goal, though modest (~10%)

energy savings are often achieved

• If performed simultaneously, building renovation and comprehensive energy retrofit can achieve deeper savings than either type of project can on its own

Paying for deep retrofits is more problematic

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• Contractors under federal Energy Savings Performance Contracts (ESPC) can install energy-related measures only

• Building renovations involve numerous non-energy-related tasks such as installation of carpeting, fire protection systems, etc.

• For this reason, two separate contractors are required– Renovation contractor, funded by the building renovation

funds– Energy Services Company (ESCO) funded by ESPC (and

that portion of the renovation funds that involve energy

Challenges to the concept

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• Simultaneous award of the renovation and ESPC contracts to the different contractors

• Coordinating the design of the two projects• Coordinating construction• Dispute resolution• Army perceives this approach to have higher risk

than conventional approaches where a single firm manages construction

Issues to consider

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• FEMP and Army formed a joint task force to implement a deep retrofit project at an Army facility

• Several potential candidate sites have been identified

• The process has been slow: represents a change from the way Army has done business in the past

• Our best candidate, Bldg 1117 at Fort Carson, CO will now be done exclusively with appropriated funds

• Presidio of Monterey a possibility

Current status

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• 10 Task Orders with an aggregate investment value of $171,625,130

· Average energy savings of 38%, compared with the average of 19% savings achieved by other agencies

· Net zero energy use at the Almeric Christian Courthouse in St. Croix, Virgin Islands· Firstnet zero project implemented using FEMP’s ESPC IDIQ

Contract

· Average cycle time to award of 19 months, compared with the FEMP average of 22 months.

· Emphasis in the Notice of Opportunity and design charettes on achieving more comprehensive retrofit projects.

GSA NDER Program

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• Deep energy retrofits further several goals of the US federal government– Energy reduction– Greenhouse gas reduction– Increased use of renewables– Leverages limited appropriated funding

• Deep energy retrofits are technically feasible– Technology exists to reduce energy use by more than

50% in the average US federal building

• US General Services Administration has shown that ESPC alone can be used to achieve these levels of savings

Conclusions

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• DOE believes there are additional savings opportunities available by combining building renovation with comprehensive energy retrofits

• The barriers to this approach are strictly procedural– No legal impediments to using two contractors to

achieve a common goal– Funding is available – Army has a large SRM budget,

and no shortage of private funding for ESPC– New ways of doing business often meet with resistance

Conclusions (continued)

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Cyrus Nasseri

US Department of Energy

Federal Energy Management Program (FEMP)

[email protected]

Questions?