Why Federal Efficiency?

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1 Federal Energy Management Programs for Government Agencies PACIFIC FEDERAL ENERGY SYSTEMS, LLC Design-Build Operations & Maintenance A Registered Service-Disabled Veteran-Owned Small Business

2 Why Federal Efficiency? The Federal Energy Universe 500,000 facilities Total area of over 3.0 billion sq. ft. Our nation s total energy use of approximately 98 quadrillion Btu Annual energy bill $5.1 billion; The largest user of energy in the country >>> Lead by example cannot be optional, it has got to be mandatory

3 Three operative mandates requiring energy reductions Federal agencies and buildings: Energy Independence & Security Act 2007 (PL ) Energy Policy Act of 2005 (PL ) Executive Order 13423

4 FEMP s Mission Reduce the cost and environmental impact of the US Federal government by advancing energy efficiency and water conservation, promoting the use of distributed and renewable energy, and improving utility management decisions at Federal sites

5 The World s largest consumer is setting an example for others to follow. Executive Order (1/07), "Strengthening Federal Environmental, Energy, and Transportation Management", which encourages Federal agencies to purchase and design environmentallypreferable, cost-effective products and facilities.

6 FY 2006: 3% FY 2007: 6% FY 2008: 9% FY 2009: 12% FY 2010: 15% FY 2011: 18% FY 2012: 21% FY 2013: 24% FY 2014: 27% FY 2015: 30% Meeting Federal Energy Mandates Federal Facilities and Federal Buildings must DECREASE ENERGY USAGE below 2003 level:

7 Meeting Federal Energy Mandates Or YOUR budgets will be docked! FY 2006: 3% FY 2007: 6% FY 2008: 9% FY 2009: 12% FY 2010: 15% FY 2011: 18% FY 2012: 21% FY 2013: 24% FY 2014: 27% FY 2015: 30% Are you seeing too much red?

8 Meeting Federal Energy Mandates Federal Facilities and Federal Buildings must DECREASE ENERGY USAGE: Right now your budget has been docked FY 2006: 3% FY 2007: 6% FY 2008: 9% FY 2009: 12% FY 2010: 15% FY 2011: 18% FY 2012: 21% FY 2013: 24% FY 2014: 27% FY 2015: 30% as much as 9%

9 Surging fuel costs are about to inflict more pain on consumers, this time in the form of rapidly rising electricity bills. Power prices are being pushed up across the U.S., with increases sometimes soaring into double digits, due to costlier coal and natural gas, the fuels used to make 70% of the nation's electricity.

10 Energy Policy Act of 2005 (PL ) Reduce our reliance on foreign sources of fuel Provide cleaner energy to fuel our economy

11 Energy Policy Act of 2005 (PL ) (EPAct 2005) on the road to our nation s energy security Modernize our nation s aging electric power infrastructure More efficient electric power delivery system Relieve transmission congestion problems Reduce our reliance on foreign sources of fuel Provide cleaner energy to fuel our economy

12 Presidential Executive Order 13423, January 24, 2007: Strengthening Federal Environmental, Energy & Transportation Management. Establishes the energy reduction goals Mandates a schedule for each federal department to reduce energy consumption by 3% annually and achieve 30% reduction by CY2015, based on CY2003 consumption Mandates a green power purchasing goal for federal departments to purchase 7.5% of electricity from renewable sources by 2013.

13 PL Energy Independence & Security Act 2007 Establishes the energy goals and standards for federal buildings Section 431 mandates the 30% reduction of energy. Section 532 requires that at least 30% of the hot water demand for each new federal building or existing federal building undergoing major renovations be met through the use of Solar Hot Water Heating.

14 Meeting Federal Energy Mandates Federal Facilities and Federal Buildings must DECREASE ENERGY USAGE: FY 2006: 3% FY 2007: 6% FY 2008: 9% FY 2009: 12% FY 2010: 15% FY 2011: 18% FY 2012: 21% FY 2013: 24% FY 2014: 27% FY 2015: 30%

15 Allows budget to be used elsewhere Free up your lost O&M budget If you are not meeting your mandate to reduce energy your budget is being docked for each percent you miss your target. By meeting your mandates this returns your budget to full strength. Allows for more discretion for budget spending by freeing up energy funds. Or prevents funds from being taken away from other budgets in order to cover the energy costs.

16 Federal Energy Management Programs for Government Agencies PACIFIC FEDERAL ENERGY SYSTEMS, LLC Design-Build Operations & Maintenance A Registered Service-Disabled Veteran-Owned Small Business

17 PACIFIC FEDERAL ENERGY SYSTEMS, LLC We are a leading Design-Build Operations & Maintenance contractor for the federal government: Federal Energy Management Programs: Solar Power Alternative Energy Systems Super Energy Efficient HVAC Recurring Operations & Maintenance of legacy energy systems. Our company excels in implementing a continuous decreasing energy usage program.

18 Motivated Partnership for Social, Environmental and Fiscal Responsibility PACIFIC FEDERAL ENERGY SYSTEMS, LLC: We do this through teaming with highly experienced, specialized service companies: 200 Years Collective Experience AMERICAN COMMUNITY ENERGY, LLC: ENERGY TECHNOLOGY & SERVICE, INC: UNITED SYSTEMS MECHANICAL, LLC: ASI POWER TECHNOLOGIES, INC: AHNTECH, INC: DANIELL, HUNTER & PRINCE, INC: INTERMOUNTAIN ELECTRONICS, INC: A ALI I TECH SOLUTIONS, LLC:

19 Our Business Leaders DON-MICHAEL BRADFORD, PhD, CE, MSAME, SDAV, a retired Colonel Air Force Civil Engineer officer, served 29 years in the military. He was responsible for operating and maintaining airfields, industrial buildings, military family housing complexes and high value R&D facilities at military bases around the world. Don-Michael is a 100 percent Service-Disabled Veteran. ROBERT McCORD, MBA, SDAV,, is a former Naval Flight Officer with over 20 years experience managing defense programs as DAWIA Acquisition Professional. He has been responsible for developing systems through R&D, procurement and life-cycle management/o&m worth dozens of millions of dollars. Robert is a 50 percent Service-Disabled Veteran.

20 Our Bottom Line PACIFIC FEDERAL ENERGY SYSTEMS, LLC: has only one client: Federal Installations and Buildings. Our Leadership Team is made up of Service Disabled Veterans and Veterans. Collectively, we bring dedicated and competent technical demonstrated past performance and superior expertise. We understand the Federal Government.

21 Our Business Goals PACIFIC FEDERAL ENERGY SYSTEMS, LLC: We are simple and straight forward: Helping Veterans Clean Energy for our Clients Significantly Reducing the Growing Cost of Energy on Agency Budgets When you contract with us, we guarantee: You will exceed your mandated energy requirement targets Reduce your energy cost Free up your lost O&M budget

22 Our Business Solutions PACIFIC FEDERAL ENERGY SYSTEMS, LLC: Helping Veterans: We will provide education and training for high paying careers in the developing field of renewable energies and energy efficiency technologies.

23 CONTRACTING AUTHORITY The Contracting advantage of teaming, joint venturing, or contracting with PACIFIC FEDERAL ENERGY SYSTEMS, LLC: is found in public law: Under current federal contracting authority, qualified small businesses that are registered are entitled to contracts issued by the US government. A Registered Service-Disabled Veteran-Owned Small Business

24 CONTRACTING AUTHORITY Public Law , passed in 1999 states that the Governmentwide goal for participation by small business concerns owned and controlled by service-disabled veterans shall be established at not less that 3% - three percent of the total value of all prime contract/subcontract awards for each fiscal year. Public Law , was enacted on December 22, 2006 went into full effect on June 20, 2007 changed the nature of contract procurement specifically for all Department of Veteran Affairs (VA) contracts.

25 CONTRACTING AUTHORITY The new VA Procurement Procedures establish a Priority for Contracting Preferences: Preferences for awarding contracts to small business concerns shall be applied in the following order of Priority: Priority (1): Contracts awarded to small business concerns owned and controlled by Veterans with Service-Connected Disabilities. Priority (2): Contracts awarded to small business concerns owned and controlled by Veterans. Priority (3): Contracts awarded pursuant to-- (A) Section 8(a) of the Small Business Act (15 U.S.C. 637(a)); or (B) Section 31 of such Act (15 U.S.C. 657a). Priority (4): Priority (4): Contracts awarded pursuant to any other Small Business contracting preference.

26 Project Facilitation Assure good deal for the government Organize process, help run meetings Review all proposals and contract documents Analyze deal from technologies to avoided costs Experience with Super ESPC Technical experts

27 Why Solar? Autonomous Secure Power Source Inside Your Base Provides secure source of on-base power Reduces vulnerability to disruptions from off-base power grid PEAK Power Production during day Reduces carbon footprint Meets your mandated requirement Turnkey Solution: Predictable Energy Pricing

28 "Solar is one of the few amenities we can put into a home that has a financial return. And it becomes more of a benefit over time." Robert Wood, CEO, Generation Homes There is an advantage to generation of your own electricity from the FREE energy from the sun. Protection from energy rate increases.

29 Federal agencies and buildings need to reduce energy consumption or face having their budgets docked. We can help your O&M budget and deliver one of the most compelling benefits today environmentally friendly, energy-saving, solar-power.

30 What's pushing up electricity rates: Soaring costs of coal and natural gas. Increase in equipment purchases by utilities. Deregulated markets that allow greater profits. Regulations that allow utilities to pass through costs quickly.

31 More than 90% of coal burned in the U.S. goes for electricity production: Fuel costs are the electric industry's largest single expense. Coal costs more than twice as much as it did in November of Natural gas, costs 45% more than it did early in 2007.

32 What s pushing up our electric rates?

33 What is Environmental Disclosure? Suppliers of electricity are mandated to provide their customers with periodic environmental disclosure statements. Environmental disclosure "labels," provide information on what fuels the suppliers use to generate electricity.

34 Clean renewable energy Clean Energy for Our Clients

35 Local generation of secure on-site energy Lowers off-site dependence for power Reduces fuel requirements for power generation Increases community social responsibility

36 Naval Base Coronado Capt. Anthony Gaiani, commander of Naval Base Coronado: we are trying to be responsible members of the community by managing our resources responsibly. This is just one piece of a much larger energy conservation effort on the Naval Base. Base won both the Secretary of the Navy Energy Conservation Award and the 2005 Presidential Award for Leadership in Federal Energy Management. solar photovoltaic carport registered more than 5 million kilowatt-hours and provided covered parking lot for 446 cars. projected to produce about 1,244,000 KWh annually. performed better than projected, with annual savings exceeding $228,000, and more than $912,000 since inception. part of a Navy-wide effort to increase production and use of renewable energy. Met federal facility renewable-energy Mandates. Also provided Electric vehicle charging

37 VA Launches Renewable Energy The Department of Veterans Affairs (VA) installing rooftop solar system at Loma Linda, CA and Dallas, TX VA medical centers Reduced Medical Center s electricity costs and O&M budget Solar is a comprehensive part of the VA s Energy Management Plan, which will also use solar energy for water heating as required by Public Law Solar hot water energy systems are underway at VA Medical Centers: Dallas Los Angeles St. Cloud Boise

38 GSA Denver Federal Center "Solar park at Federal Center Contract to Design and Build photovoltaic or solar arrays within quarter-mile-long long fenced area - $6.9 million project. The 1-megawatt system will generate enough electricity to power the equivalent of 145 homes annually. Project demonstrated how this is a technology that is feasible. At the Federal Center, solar park met renewable-energy mandates set by Congress while boosting the center's goal of being the country's most sustainable campus by 2020.

39 US Coast Guard The Coast Guard will award a 25 year contract with a Solar Integrated contractor to provide solar electrical utility services from a solar array at their USCG Training Center in Petaluma, CA. The Coast Guard will accompany the power purchase award of contract with a 25 year irrevocable land license for 5 acres. 125kW (total) PV are currently installed on the rooftops of two buildings. USCG Petaluma consumes approximately 7,800,000 kwh per year with a peak demand of 1.4MW

40 Our Business Solutions When you contract with us, we guarantee: You will exceed your mandated energy requirement targets Reduce your energy cost Free up your lost O&M budget

41 Recommendations Authorize and Contract with Us Request your endorsement/approval Request permission to deal directly with Request permission to deal directly with Contracting office, Public Works or special entity that will enable this contract

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