Phoenix Convention Center Phoenix, Arizona Solution Showcase GSA’s NDER Program: Doubling the Energy Savings from Financed Projects Kevin Vaughn Schneider.

Phoenix Convention Center • Phoenix, Arizona

Solution Showcase

GSA’s NDER Program: Doubling the Energy Savings from Financed Projects

Kevin VaughnSchneider Electric[August 11, 2015]

Almeric Christian Federal Building, St Croix, U.S. Virgin Islands100% Net Zero Energy Use

andEnergy Savings Performance Contracting (ESPC)

Energy Exchange: Federal Sustainability for the Next Decade2

Topics To Be Discussed

• GSA Support for ESPC

• Case Study

• Lessons Learned

Energy Exchange: Federal Sustainability for the Next Decade3

Benefits of ESPC

• Increased quality and value through: • Private-sector expertise in energy efficiency, renewable energy, water conservation, and

reduced greenhouse gas (GHG) emissions • Built-in incentives for ESCOs to provide high-quality equipment, timely services, and thorough

project commissioning • Infrastructure improvements that pay for themselves over time

• Flexible, practical contract and procurement processes from FEMP that ensure each agency achieves its energy-related goals with:

• Best practices developed over nearly 15 years and hundreds of projects • Templates, schedules, contract review tools, and other resources • Life-of-contract (LOC) support.

• Smart program management that: • Guarantees energy and related operation and maintenance cost savings • Enhances the ability to plan and budget energy, operation, and maintenance accounts • Minimizes vulnerability to budget impacts due to volatile energy prices, weather, and

equipment failure.

Energy Exchange: Federal Sustainability for the Next Decade4

GSA’s Recent Use of ESPCs

National Deep Energy Retrofit Program (NDER)- 2012

• Program Management Office (PMO) stood up to standardize and centralize ESPC award process.

• PMO established a timeline for award process and provided guidance to regional offices

• Ten ESPC TOs awarded with total value of $172 million investment and $10.8 million guaranteed annual savings

• 38% average annual energy reduction•

• PMO achieved significant reduction in project cycle time from 20.9 months to 15.9 months (from ESCO selection to TO award)

National Deep Energy Retrofit Program (NDER)- 2012

• Program Management Office (PMO) to standardize and centralize ESPC award process.

• PMO established a timeline for award process and provided guidance to regional offices

• Ten ESPC TOs awarded with total value of $172 million investment and $10.8 million guaranteed annual savings

• 38% average annual energy reduction• • PMO achieved significant reduction in project cycle time from 20.9 months

to 15.9 months (from ESCO selection to TO award)

Energy Exchange: Federal Sustainability for the Next Decade5

GSA’s Recent Use of ESPCs

National Deep Energy Retrofit Program (NDER)- 2012

Almeric Christian Federal Building

Energy Exchange: Federal Sustainability for the Next Decade6

Almeric Christian Federal Building

• GSA Region 2

• Schneider Electric selected in 2012, through NDER, to implement ESPC

• TO awarded September, 2013

• Construction completed September, 2014

• Project parameters• $6.4 million investment• $0.5 million/year guaranteed

savings• 19 year finance term

Energy Exchange: Federal Sustainability for the Next Decade7

Key Facts

Building Characteristics:• Location: St. Croix, Virgin Islands• Floor Area: 57,872 ft2

• Original Construction: 1989• Tenant: Federal Courts• Baseline EUI: 57 kBtu/ft2

• Local Utility Rate: $0.52/kWh

Project Details:• Project Duration: Approx 24 months, 12

each for development & construction • Investment Value: $6.4 million• Projected Energy Reduction: 100%• Projected Savings: $500,000/year• Contract Term: 19 years

Energy Exchange: Federal Sustainability for the Next Decade8

Technical Specifications

• Key ECMs– Building Automation System– Lighting upgrades– Chiller and AHU upgrades

• Renewables– 462 kW ground-mounted solar PV

• M&V – Option B: PV system– Option C: all other ECMs

Chiller Improvements; $675,877

BAS Improve-ments; $502,902

HVAC - replace AHUs 2, 4 & 6;

$517,771

Interior Lighting Improvements;

$802,949

Window Film Installation;

$39,635

VFDs - Variable volume CHW Dis-

tribution; $81,885

Ground Mounted Solar;

$3,322,147

Building Transformer Replacement; $291,464

Retro Commissioning; $18,621

Investment Value, by Detailed ECM Category

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Scope

• 670kW PV system• New Chillers• New substation• New air handling units• New building

automation system (BAS)

• Lighting upgrade• Window film

Old SubstationOld Chillers New Chiller

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Benefits of the ESPC

• 100% reduction in grid supplied electricity

• Stable utility rates• Improved lighting and

comfort conditions for the tenants

• New equipment reduces O&M expense

• Risk of substation failure is eliminated

New Chillers New Substation

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• <insert savings>• Note use of GSA meters to validate utility

meters

Performance to Date

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Lessons Learned

• Start security clearance process as early as possible

• Integrate GSA construction inspector as early as possible

• Tenant engagement is critical

• Successful ESPCs are a partnership

• Communication, communication, communication

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Keys to Success

• Well-structured communication plan

• Building tenant buy-in• Proactively addressed tenant concerns

• Consideration of unique project characteristics• Utility rates• Security requirements

• Information collection and dissemination processes could be improved• More existing asset data needed• Standardized central location for all

project information

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Questions