Financial ESPC Roundtable ESPC through Huntsville.

Financial

ESPC Roundtable

ESPC through Huntsville

Proprietary Information Of Energy 2013


Overview

• ESPC’s through the Army• HNC ESPC Process• ESPC Program Statistics• Acquisition Tools• Challenges/Approach• Pretty Pictures


Doing ESPCs through the Army Contract

• Army Garrison’s have the flexibility to choose contract vehicle and contracting agency

• HNC does 2/3+ of the Army’s ESPCs• Customers fund HNC’s administration costs up front

– $95K for support through award– $35K for construction admin/submittal reviews/etc– Fees include Project Facilitation services, Project Management, Contracting, full service

Engineering, Resource Management, and Legal support

• Customer’s come to HNC in various ways– Cold calls– Briefings– ESCOs


HNC ESPC Process

• HNC has a $900M MATOC with 15 Contractors (ESCOs) with ~$650M in remaining capacity

• ESPC is a long term relationship between the government and an Energy Service Company (ESCO)

3.5 to 25 Years

Development & Award

Phase6 – 12 mo

Construction Phase

3 – 18 mo

O&M and Payment Phase

6 – 23 yrs

Selection of Contractors

1 – 3 mo

5


ESPC Program Statistics

0

50

100

150

200

250$208M

$85M

$25M

$150M

0100,000200,000300,000400,000500,000600,000700,000

696K

315K75K

7

HNC Awards 3rd Party Capital Investment

Annual MBTU Savings

FY10 FY11 FY12

FY12FY11FY10

FY13FY10

FY13

375K

Projected

FY13FY12FY11

02468

10121416

16

2

3

7

10

6


“New” ESPC Acquisition Tools• Working to award a $1.5B ESPC 3rd generation MATOC to

ensure Army has sufficient ESPC capacity in place with no lapse in service.• Acquisition Strategy is in the approval process• Issue RFP 3rd Qtr FY14*• Award 3rd Qtr FY15*

• Leveraging innovation with ESPC ENABLE / FEMP Partnership• ESPC ENABLE provides a standardized and streamlined process for

using ESPCs to implement energy efficiency and water conservation measures in Federal facilities smaller than 200,000 square feet.

• Facilities can realize energy and water savings within six months.

• Working to prove the concept – once we prove the concept, expect larger scale rollout

7

* projected!


ESPC Programmatic Challenges

• Proposal Development: Philosophical differences within the

Army and Federal Government on ESPC development• Revised Army ESPC Policy Guidance under review by Army• HNC a central team member Army ESPC policy development• Champion partnership and collaboration from day 1

• Approval process• Lengthy and cumbersome• HNC working with Army on ways to streamline the approval process• Communication is the key to a streamlined project approval

8


How are you approaching ESPC?

• We have traditionally not asked ESCOs the right question– “I want an ESPC project that hits XYZ ECMs…”– Should be: “I want an ESPC project that reduces my MBTU

consumption by X%...”– We have to leverage the tool to the greatest extent

possible– Not as simple as lights, controls, boilers, and chillers

• Comprehensive approach is a must• Think “ESPC Program” not just “ESPC Project”


Fort Buchanan Wind Turbines825kW (3 Turbines)


Fort Buchanan 1.2MW Rooftop Solar


White Sands Missile Range Solar Arrays

4.1MW Ground Array 365kW Solar Carport


White Sands Missile Range 4.1MW Solar Array


Will IrbyESPC Program ManagerUS Army Engineering and Support Center, [email protected] 256-895-1337

Questions?

mailto:[email protected]

Financial ESPC Roundtable ESPC through Huntsville.

Documents

espc project slide

financial espc roundtable

b espc

hnc espc process hnc

femp partnership espc

sufficient espc capacity

remaining capacity espc

new espc acquisition