Federal Energy Management Program Federal Energy Management Program UESC Projects Workshop.
-
Upload
russell-randall -
Category
Documents
-
view
218 -
download
0
Transcript of Federal Energy Management Program Federal Energy Management Program UESC Projects Workshop.
Federal Energy Federal Energy Management ProgramManagement Program
Federal Energy Federal Energy Management ProgramManagement Program
UESC UESC
Projects Projects
WorkshopWorkshop
UESC UESC
Projects Projects
WorkshopWorkshop
FEMP’s MissionFEMP’s Mission
Reduce the cost of government by Reduce the cost of government by advancing energy efficiency and water advancing energy efficiency and water conservation, promoting the use of conservation, promoting the use of renewable energy, and managing utilities renewable energy, and managing utilities at federal sites.at federal sites.
WaterWaterConservationConservation
WaterWaterConservationConservation
RenewableRenewableEnergy UseEnergy UseRenewableRenewableEnergy UseEnergy Use
EnergyEnergyEfficiencyEfficiencyEnergyEnergy
EfficiencyEfficiency
Utility Utility ManagementManagement
Utility Utility ManagementManagement
GSA’s Energy Center GSA’s Energy Center of Expertise Missionof Expertise Mission
To help GSA customers procure utilities To help GSA customers procure utilities that are both cost effective and that are both cost effective and environmentally responsible, and to environmentally responsible, and to assist them in managing their energy assist them in managing their energy use.use.
Federal Energy Federal Energy Management RequirementsManagement Requirements
Install all energy and water conservation measures Install all energy and water conservation measures with payback of less than 10 years by 2005 (EPAct)with payback of less than 10 years by 2005 (EPAct)
Reduce energy consumption (EO 13123)Reduce energy consumption (EO 13123)– Facility energy per square foot to be reduced by 30% in Facility energy per square foot to be reduced by 30% in
2005 and 35% in 2010 relative to 19852005 and 35% in 2010 relative to 1985
– Industrial/laboratory energy to be reduced by 20% in 2005 Industrial/laboratory energy to be reduced by 20% in 2005 and 25% in 2010 relative to 1990and 25% in 2010 relative to 1990
Expand use of renewable energyExpand use of renewable energy– 2.5% of federal facility electricity consumption by 2005 2.5% of federal facility electricity consumption by 2005
(recommended)(recommended)
– 2,000 solar roofs by 2000; 20,000 by 20102,000 solar roofs by 2000; 20,000 by 2010
Federal Energy Federal Energy Management GoalsManagement Goals
Implement best management practices Implement best management practices for water conservation in 80% of federal for water conservation in 80% of federal facilities by 2010facilities by 2010
Reduce greenhouse gas emissions Reduce greenhouse gas emissions 30% by 2010 compared to 199030% by 2010 compared to 1990
Progress Toward GoalsProgress Toward Goals
• Building energy costs in 1999 were $3.4 billion; 39.5% less than 1985 Building energy costs in 1999 were $3.4 billion; 39.5% less than 1985 expenditures of $5.6 billion.expenditures of $5.6 billion.
• Petroleum usage in federal facilities is down by 67% relative to 1985.Petroleum usage in federal facilities is down by 67% relative to 1985.
Building Energy Reduction Goals
85,000
95,000
105,000
115,000
125,000
135,000
145,000
85 87 89 91 93 95 97 99 01 03 05 07 09
Fiscal Year
Btu
pe
r S
qu
are
Fo
ot
10% Goal - 1995 (NECPA)
20% Goal - 2000 (EPACT)
30% Goal - 2005 (EO 12902)
Actual Energy Use
20.7% Reduction, 1999 (preliminary data)
35% Goal - 2010 (EO 13123)
Why should we keep going?Why should we keep going?
Solves facility headaches and continues Solves facility headaches and continues opportunity to save energyopportunity to save energy
Increasing energy pricesIncreasing energy prices Allow for some dollars to be left in the O&M Allow for some dollars to be left in the O&M
account to pay for mission related requirementsaccount to pay for mission related requirements Most cost effective form of pollution prevention Most cost effective form of pollution prevention The introduction of rolling blackoutsThe introduction of rolling blackouts
Introductions Introductions & &
Why We Are HereWhy We Are Here
We’d like to get to know you…We’d like to get to know you…
Please introduce yourself Please introduce yourself Tell us which agency you are withTell us which agency you are withWhat’s your job function?What’s your job function?Do you have any specific questions Do you have any specific questions
you’d like us to answer?you’d like us to answer?
Hi there!
Project Financing ResourcesProject Financing Resources
Why we need them: Allows for needed Why we need them: Allows for needed infrastructure improvements without infrastructure improvements without direct appropriations.direct appropriations.
Financing resources available through Financing resources available through FEMP: FEMP: – Utility Energy Service Contracts (UESC)Utility Energy Service Contracts (UESC)– Energy Savings Performance ContractsEnergy Savings Performance Contracts
Our ObjectivesOur Objectives
During this workshop we will tell you:During this workshop we will tell you:– The steps involved in developing Utility The steps involved in developing Utility
Energy Service Contracts.Energy Service Contracts.– What tools and resources are available to What tools and resources are available to
assist you in implementing your project.assist you in implementing your project.
Reasons to Choose UESCsReasons to Choose UESCs
You work with a known entityYou work with a known entityYour utility has unique expertise and a Your utility has unique expertise and a
knowledge of your facilityknowledge of your facilityIt’s an established sourceIt’s an established sourceFlexibility in scope and size, smaller Flexibility in scope and size, smaller
projects feasibleprojects feasibleIt’s a partnership that is mutually It’s a partnership that is mutually
beneficial!beneficial!
Let’s find out why Let’s find out why you are here…you are here…
Why did you choose UESC? Why did you choose UESC? Tell us about your potential project.Tell us about your potential project.
Utility Utility Program Program
BasicsBasics Options for Agency ExplorationOptions for Agency Exploration Options for Agency ExplorationOptions for Agency Exploration
Rebates/AuditsRebates/AuditsRebates/AuditsRebates/Audits DSMDSM BiddingBiddingDSMDSM BiddingBidding UESCUESCUESCUESC
Utility ServiceUtility Service
Utility Incentive ProgramsUtility Incentive Programs
Definition: Any service offered by a Definition: Any service offered by a utility or developed in conjunction with utility or developed in conjunction with an agency that assists customers in an agency that assists customers in implementing energy and water implementing energy and water conservation projects.conservation projects.
Utility Incentive ProgramsUtility Incentive Programs
Options for Agency ExplorationOptions for Agency Exploration Options for Agency ExplorationOptions for Agency Exploration
Rebates/AuditsRebates/AuditsRebates/AuditsRebates/Audits DSMDSM BiddingBiddingDSMDSM BiddingBidding UESCUESCUESCUESC
Utility ServiceUtility Service
Utility Energy Service Utility Energy Service Contracts (UESCs)Contracts (UESCs)
Definition: Specific contracts that allow Definition: Specific contracts that allow utilities to provide agencies with utilities to provide agencies with comprehensive energy and water comprehensive energy and water efficiency improvements and demand efficiency improvements and demand reduction services. Utilities front the reduction services. Utilities front the capital costs and are paid out of capital costs and are paid out of savings. savings.
Typical UESC OfferingsTypical UESC Offerings
AuditsAuditsAuditsAudits
Feasibility Feasibility StudiesStudies
Feasibility Feasibility StudiesStudies Project Project
FinancingFinancingProject Project
FinancingFinancing
Technical Services
Technical Services
Financial Services
Financial Services
RebatesRebatesRebatesRebates
Engineering & Engineering & DesignDesign
Engineering & Engineering & DesignDesign
Construction & Construction & InstallationInstallation
Construction & Construction & InstallationInstallation
Project Project ManagementManagement
Project Project ManagementManagement
Performance Performance GuaranteesGuarantees
Performance Performance GuaranteesGuarantees
TrainingTrainingTrainingTraining
O&M ServicesO&M ServicesO&M ServicesO&M Services
UESCs Reallocate the UESCs Reallocate the Government’s Utility BudgetGovernment’s Utility BudgetB
udge
t $B
udge
t $
Decrease energy costsDecrease energy costs Pay for projectPay for project Achieve energy cost savings for the governmentAchieve energy cost savings for the government
Utility Bill Utility
Bill
Utility Bill
Contractor
Payment
Govt.Share
Govt. Share EnergyEnergyCost Cost
SavingsSavings
BeforeBeforeContractContract
DuringDuringContractContract
AfterAfterContractContract
ConsiderationsConsiderations
UESCs may not be available to all UESCs may not be available to all facilitiesfacilities
Utility may be new to this type of Utility may be new to this type of contractingcontracting
Contract process is not rigidContract process is not rigidAgency’s relationship with utilityAgency’s relationship with utilityContract term Contract term
Enabling Legislation for Enabling Legislation for Utility ProgramsUtility Programs
Energy Policy Act of 1992Energy Policy Act of 1992
Section 152(f) - Utility Incentive ProgramsSection 152(f) - Utility Incentive Programs
Agencies: Are authorized and encouraged to participate in
utility programs generally available to customers May accept utility financial incentives, goods, and
services generally available to customers Are encouraged to enter into negotiations with
utilities to design cost effective programs to address unique needs of facilities used by agency
(Codified as 42 USC 8256, P.L. 102-486)(Codified as 42 USC 8256, P.L. 102-486)
10 USC 2865 and 286610 USC 2865 and 2866
DoD Facilities:DoD Facilities:
May enter into ”sole source” procurement from gas or electric utilities to design and implement cost effective demand and conservation services
May implement projects with a positive Net Present Value (measured over a period of 10 years or less)
Can count water cost savings in their economic analysis
48 CFR Part 41 48 CFR Part 41 Acquisition of Utility ServicesAcquisition of Utility Services
GSA authority to prescribe policies/methods governing the acquisition and supply of utility services for federal agencies & delegating authority to specific agencies to purchase utility services
GSA authority to issue areawide contracts for utility services
FEMP’s UESC Enabling FEMP’s UESC Enabling DocumentsDocuments
Details:Details:– Legislation and Executive actionsLegislation and Executive actions– Legal opinionsLegal opinions– Agency guidanceAgency guidance
Available both in hard copy and electronicallyAvailable both in hard copy and electronically– http://www.eren.doe.gov/femp/utility/enabl_docs.htmlhttp://www.eren.doe.gov/femp/utility/enabl_docs.html
The UESC ProcessThe UESC Process
Assemble Your Acquisition
Team
The Utility Audit
The Feasibility
Study
Engineering & Design
Package
Construction & Installation
The Payment Period
Establish Terms &
Conditions
Determine the Appropriate
Vehicle
Project PlanningProject Planning Project IdentificationProject Identification
Project Implementation
Planning Your UESCPlanning Your UESC
Determine Appropriate UESC Vehicle
AWC AWC
Site Specific ContractSite Specific Contract
Master AgreementMaster Agreement
BOABOA
Choose UESC vehicle
Assemble your Acquisition Team
Team players
Team issues
Develop strategy
Enlist support
Initiate Project Identification
Determine Determine Appropriate Appropriate
UESC VehicleUESC Vehicle
AWC AWC
Site Specific Site Specific
ContractContract
Master AgreementMaster Agreement
BOABOA
Choose UESC vehicle
UESC VehiclesUESC Vehicles
Areawide Contract (AWC) Areawide Contract (AWC) – Task order placed underneath to establish Task order placed underneath to establish
terms and conditions for energy terms and conditions for energy management servicesmanagement services
Site Specific Contract Site Specific Contract Basic Ordering Agreement (BOA)/ Basic Ordering Agreement (BOA)/
Agency Master AgreementAgency Master Agreement
GSA Areawide ContractGSA Areawide Contract
FAR Part 41 Utility Service ContractFAR Part 41 Utility Service Contract GSA puts in place but all agencies GSA puts in place but all agencies
shall useshall use Utility service territory IDIQ contractUtility service territory IDIQ contract Terms and conditionsTerms and conditions
– Specific project delivery order/task Specific project delivery order/task order issued order issued
App. 1Pg. 15
Roles in the AWC ProcessRoles in the AWC Process
GSA Utility
AWC
GSA places a blanket contract
for utility services.
Agency Utility
TaskOrder
Utility and agency negotiate detailed
terms and conditions for the
specific site.
Site Specific ContractSite Specific Contract
Any site can placeAny site can placeIncludes all terms and Includes all terms and
conditions (incorporates conditions (incorporates site specifics)site specifics)
No additional DO/TO is No additional DO/TO is requiredrequired
Always an available optionAlways an available option
Site Utility
UESC Delivery Order
Basic Ordering Agreement/ Basic Ordering Agreement/ Agency Master AgreementAgency Master Agreement
FAR Part 16 Service FAR Part 16 Service Contract, requires Contract, requires competitioncompetition
Any agency can place with Any agency can place with a utility or GSA can place ita utility or GSA can place it
Delivery orders/Task orders Delivery orders/Task orders with project specifics are with project specifics are placed underneath itplaced underneath it
Agency Utility
BOA/ AMA
Delivery Order
Assemble Your Assemble Your Acquisition Acquisition
TeamTeam
Team players
Team issues
Develop strategy
Enlist support
Initiate Project Identification
Assemble an Acquisition TeamAssemble an Acquisition Team
Put your team together earlyPut your team together early– To ensure project buy-in and supportTo ensure project buy-in and support– To reduce turn around time for approvalsTo reduce turn around time for approvals– To expedite the procurement processTo expedite the procurement process– To keep each other informed of current and future To keep each other informed of current and future
agency plans that impact the project agency plans that impact the project Prepare for team turnoverPrepare for team turnover
– Document your process and establish a Project Document your process and establish a Project Documentation PlanDocumentation Plan
– Capture institutional knowledgeCapture institutional knowledge
Who Should Be On Who Should Be On Your Team?Your Team?
Site decision makerSite decision maker Technical staffTechnical staff Procurement Procurement
personnelpersonnel Legal rep.Legal rep. Budget rep.Budget rep.
Environmental specialistEnvironmental specialistTenantsTenantsOperations staffOperations staffMaintenance personnelMaintenance personnelOther?Other?
Acquisition Team Issues Acquisition Team Issues
Budget and Financial IssuesBudget and Financial Issues
Be clear that the utility budget will stay Be clear that the utility budget will stay the same and project payments come the same and project payments come from savingsfrom savings
Address the potential need to redirect Address the potential need to redirect funds from utility, tenant, and O&M funds from utility, tenant, and O&M accounts to the utility account in order accounts to the utility account in order to pay the billto pay the bill
Environmental Protection Environmental Protection RequirementsRequirements
ProjectProject must comply with National must comply with National Environmental Policy Act (NEPA)Environmental Policy Act (NEPA)
Team should develop detailed disposal Team should develop detailed disposal requirements statement for hazardous requirements statement for hazardous materials related to the projectmaterials related to the project
App. 1Page 5
It is in the FAR! Subpart 23.3.
Personnel IssuesPersonnel Issues
Your acquisition plan should take into Your acquisition plan should take into consideration:consideration:– Existing maintenance staff and/or Existing maintenance staff and/or
contracted operations and maintenance contracted operations and maintenance personnelpersonnel
– Technical personnelTechnical personnel– Staff trainingStaff training
Potential Conflicts and Potential Conflicts and Unique IssuesUnique Issues
Consider conflicts involving known and Consider conflicts involving known and potential mission or facility usage potential mission or facility usage changeschanges
Address unique facility issues like Address unique facility issues like restricted access, special requirements restricted access, special requirements (labs, libraries) or tenant’s operations(labs, libraries) or tenant’s operations
Your Acquisition StrategyYour Acquisition Strategy & &
Project ConsiderationsProject Considerations
Identify Your Project Goal Identify Your Project Goal
Are you trying toAre you trying to– Solve existing problems?Solve existing problems?– Make infrastructure improvements?Make infrastructure improvements?– Reduce utility costs?Reduce utility costs?– Make capital improvements?Make capital improvements?– Improve O&M?Improve O&M?– Save energy?Save energy?
Consider the Project’s Consider the Project’s ParametersParameters
Potential ECMs
Required ECMs+
Facility
SiteSite TechnologiesTechnologies++ Contract Contract TermTerm
++
++20001
November
Collect Facility DataCollect Facility Data
Historical utility data (including water)Historical utility data (including water)Current building and equipment dataCurrent building and equipment dataData on anticipated facility and utility Data on anticipated facility and utility
changeschangesAny past audit or SAVEnergy audit Any past audit or SAVEnergy audit
informationinformation
Prioritize Facility RequirementsPrioritize Facility Requirements
Specific facility needsSpecific facility needsFacility conditionsFacility conditionsConstraining issuesConstraining issues
– Limited in-house resourcesLimited in-house resources– Union considerationsUnion considerations– Work environmentWork environment– Other support contracts Other support contracts
Select Potential ECMsSelect Potential ECMs
Building envelopeBuilding envelope HVAC equipment, distribution and water heating HVAC equipment, distribution and water heating
systemsystem Lighting and power systemLighting and power system Energy management and control systemsEnergy management and control systems Heat reclaim systemsHeat reclaim systems Renewable energy systemsRenewable energy systems Air compressionAir compression Combined heat and power, distributed energy Combined heat and power, distributed energy
resourcesresources Other?Other?
Do You Want M&V?Do You Want M&V?
What is M&V and what does it What is M&V and what does it do for your project?do for your project?
Measurement & VerificationMeasurement & Verification
A means of measuring and/or calculating A means of measuring and/or calculating the energy being consumed and verifying the energy being consumed and verifying the “savings” or avoided coststhe “savings” or avoided costs
Insures savings persistenceInsures savings persistenceFEMP M&V GuidelinesFEMP M&V Guidelines: Measurement and : Measurement and
Verification for Federal Energy Projects; (v Verification for Federal Energy Projects; (v 2.2)2.2)– http://www.eren.doe.gov/femp/financing/measguide.htmlhttp://www.eren.doe.gov/femp/financing/measguide.html
Assured Continued SavingsAssured Continued Savings
Good M&V
Poor M&V
Two key benefitsTwo key benefits
– Initial savings levelInitial savings level
– Persistence of savingsPersistence of savings
120
100
80
60
40
20
00 5 10
% S
avin
gs
Rea
liza
tio
n%
Sav
ing
s R
eali
zati
on
Years post-completionYears post-completion
Carr’s observation
Appropriatedproject savings
Do All You CanDo All You Can
Include all the opportunities available Include all the opportunities available through UESCthrough UESC– energy efficiency, water efficiency, energy efficiency, water efficiency,
alternative electric and/or gas supply, on-alternative electric and/or gas supply, on-site power generation/CHP, renewables site power generation/CHP, renewables and renewable power purchasesand renewable power purchases
Incorporate a synergistic and interactive Incorporate a synergistic and interactive approach to the measuresapproach to the measures
Bundling ECMsBundling ECMs
Definition: bundling is the combination Definition: bundling is the combination of long- and short-term payback ECMs of long- and short-term payback ECMs at a single facility that supports a at a single facility that supports a comprehensive project package.comprehensive project package.
Benefits of BundlingBenefits of Bundling
Provides technical solutions while assuring Provides technical solutions while assuring synergy of measuressynergy of measures
Savings from short-term payback ECMs can Savings from short-term payback ECMs can contribute to the ability to accomplish longer-contribute to the ability to accomplish longer-term equipment, or related facility term equipment, or related facility improvementsimprovements
Can reduce long standing maintenance Can reduce long standing maintenance headaches, such as HVAC, that usually have headaches, such as HVAC, that usually have long paybacks long paybacks
Fuel Neutral ApproachFuel Neutral Approach
If a technology is cost effective and If a technology is cost effective and results in energy savings it should be results in energy savings it should be considered without regard to fuel considered without regard to fuel source.source.
How Utility Restructuring How Utility Restructuring Impacts UESCsImpacts UESCs
Utilities want to retain you as their Utilities want to retain you as their customercustomer
Your energy costs are changingYour energy costs are changingSources of service are changing– you Sources of service are changing– you
may not know who to contract withmay not know who to contract with
Impacts of DoD Impacts of DoD Privatization Privatization
Decrease to facility’s discretionary O&M Decrease to facility’s discretionary O&M fund availabilityfund availability
Annual costs will probably increaseAnnual costs will probably increase Loss of future flexibility in managing Loss of future flexibility in managing
systemssystems
But energy savings can help offset cost of But energy savings can help offset cost of privatization so don’t let it delay your privatization so don’t let it delay your
project in areas that aren’t being privatized!project in areas that aren’t being privatized!
Gain Support & Momentum Gain Support & Momentum for the Projectfor the Project
Start early– include everyoneStart early– include everyonePrepare a briefing and include:Prepare a briefing and include:
– Benefits to the site Benefits to the site – Summarize the financing processSummarize the financing process
Be prepared to overcome resistance to Be prepared to overcome resistance to changechange
The Cost of Delaying a ProjectThe Cost of Delaying a Project
LowLow
MedMed
HighHigh
Lif
e C
ycle
Co
stL
ife
Cyc
le C
ost
Delayed Delayed appropriationsappropriations
FinancingFinancingAppropriations Appropriations available todayavailable today
Any delay in project implementation Any delay in project implementation results in loss of life cycle savingsresults in loss of life cycle savings
No action No action takentaken
Available ResourcesAvailable Resources
Use GSA and FEMP for advice and support, Use GSA and FEMP for advice and support, briefings to project teams and managementbriefings to project teams and management
Find background information on web sites:Find background information on web sites:– http://www.eren.doe.gov/femp/financinghttp://www.eren.doe.gov/femp/financing– http://gsa.gov/pbs/xu/http://gsa.gov/pbs/xu/
Order the UESC video from FEMP that Order the UESC video from FEMP that showcases this processshowcases this process
Available ResourcesAvailable Resources
DOE Regional OfficesDOE Regional Offices
– Boston - Paul King (617) 565-9712 Boston - Paul King (617) 565-9712
– Philadelphia - Bill Klebous (212) 264-0691 or Philadelphia - Bill Klebous (212) 264-0691 or Gene Lesinski (215) 656-6976Gene Lesinski (215) 656-6976
– Seattle - Cheri Sayer (206) 553-7838Seattle - Cheri Sayer (206) 553-7838
– Atlanta - Doug Culbreth (919) 782-5657Atlanta - Doug Culbreth (919) 782-5657
– Denver - Randy Jones (303) 275-4814Denver - Randy Jones (303) 275-4814
– Chicago - Sharon Gill (312) 886-8573Chicago - Sharon Gill (312) 886-8573 App 2