Saving energy. Saving money. Creating jobs.

Transcription

1 Energy Savings Performance Contracts Saving energy. Saving money. Creating jobs. Through private sector partnerships, Federal agencies can implement energy projects with no upfront capital costs.

2 The Federal Government owns and operates nearly 3 billion square feet of Federal building space. Upgrading the energy performance of buildings is one of the fastest and most effective ways to reduce energy costs, cut pollution, and create jobs President Barack Obama President Directs $2 billion in Federal ESPCs in 2 Years Washington, DC, December 2011: As part of a major energy announcement with the Clinton Global Initiative, Better Buildings Initiative and the U.S. Chamber of Commerce, the President issued a Presidential Memorandum calling for $2 billion worth of energy upgrades of federal buildings over 2 years using long term energy savings to pay for the up-front investments at no cost to taxpayers. These investments will save billions in energy costs, promote energy security and, according to independent estimates, create tens of thousands of jobs in the hard-hit construction sector.

3 How Government Benefits from ESPCs ESPCs: Delivering Energy Solutions to the Federal Sector Government agencies looking for energy savings have a proven way to reduce energy consumption without the need for appropriating capital funds. Through Energy Savings Performance Contracts (ESPCs), private sector companies finance and install new energy efficient equipment in Federal buildings. While the two most important benefits of an ESPC are no upfront costs and guaranteed energy savings, there s more to the story. By upgrading its facilities, an agency can improve the overall functioning of the workplace, as employees will have an improved work environment including better lighting and indoor air quality. An ESPC also creates jobs in the community where the facility is located, and improves the skills of the maintenance personnel who are trained by the ESCO to operate and maintain the new equipment. Finally, new high efficiency systems dramatically reduce emissions, contributing to a sustainable environment. ESPCs are a win-win because, in exchange for a pre-determined price, the chosen energy service company (ESCO) guarantees future energy savings, which are used to pay for the energy efficiency upgrades, with excess savings accruing to the Federal government. In fact, payment to the ESCO is contingent upon realizing that guaranteed annual savings stream. ESPCs, originally authorized by Congress in 1989, have a proven record of performance all across the United States. At a time when Federal agencies are looking to control expenditures, saving on water, electrical, heating and cooling costs (and much more) an ESPC is a smart decision one that is literally guaranteed to pay off. ESPCs-Before, During and After Before ESPC: Federal agencies incur higher cost for utilities, operations and maintenance based on equipment and systems level of efficiency. During ESPC: Energy service companies design, finance, acquire, install and maintain new energy efficient equipment. Savings are guaranteed allowing the government to use the utility savings to pay back the investment made by the private sector. By law, the government agency pays no more than it would have paid for utilities before the ESPC. After ESPC: Government agencies keep all savings after the investment is paid off. Utility Bill Govt. Savings Contractor Payment Utility Bill Energy Cost Savings Government Savings Utility Bill Before ESPC During ESPC After ESPC

4 ESPCs are saving money and energy coast-to-coast As the map shows, ESPCs are improving the energy and water efficiency of Federal agencies all across the nation. Take a look at the types of energy conservation measures ESPCs deliver. Upgrading through an ESPC can make any part of an agency s facilities perform more effectively. Energy conservation measures through ESCPs include: Boiler Plant Improvements Chiller Plant Improvements Building Automation Systems (BAS)/ Energy Management Control Systems (EMCS) Heating, Ventilating, and Air Conditioning Lighting Improvements Building Envelope Modifications Chilled Water, Hot Water, and Steam Distribution Systems Electric Motors and Drives Refrigeration Distributed Generation Renewable Energy Systems Energy/Utility Distribution Systems Water and Sewer Conservation Systems Electrical Peak Shaving/Load Shifting Energy Cost Reduction Through Rate Adjustments Energy Related Process Improvements Commissioning Advanced Metering Systems Appliance/Plug-load reductions US Chamber of Commerce: ESPCs Create Jobs Washington, DC, September 2011: In an open letter to the U.S. Congress and the President, the U.S. Chamber of Congress in September 2011, called on the administration and lawmakers to fully implement the Energy Savings Performance Contracts (ESPC) Program saying full and faster implementation could create 35,000 jobs a year, save energy, and reduce government costs.

5 ESPcS in Action Following are just a few examples of the savings and efficiencies ESPCs have been delivering for nearly 25 years. Department of Energy Savannah River Site, Aiken, SC Awarded in 2009 and operational in January 2012 this 20 Megawatt biomass cogeneration facility replaced an inefficient coal powerhouse and oil-fired boilers. It will reduce carbon emissions by 100,000 tons annually and save an estimated 1.4 billion gallons of water a year, for a first year savings of $34 million and a savings guarantee of $944 million over 19 years. Food and Drug Administration, Silver Spring, MD The $71 million installed system, which includes an 1,800 sq. ft. fixed solar array in its nearly 20MW of cogeneration capacity, is estimated to save $5.8 million in energy costs annually and $6.5 million in yearly operating and maintenance costs. U.S. Naval Air Station Dam Neck Annex, Virginia Beach, VA This ESPC will save the Department of the Navy nearly $32 million over the 17-year life of the contract. The new system includes upgrading 36 buildings at Dam Neck Annex with a base-wide heat rejection system in which building heat loads are rejected, collected, reused and ultimately injected into a wastewater effluent stream bound for ocean disposal. General Services Administration Greater Southwest Region Thirty nine federal government facilities across the Southwest are being upgraded though this project, which includes solar photovoltaic power generation, advanced irrigation control systems, thermal energy storage, building envelope improvements and much more. Improvements are expected to equal $1.7 million in guaranteed energy savings the first year, and projected to increase to an aggregate $2.7 million annually. Department of Energy Awarded Energy Savings Performance Contracts Since the inception of the Department of Energy s (DOE) energy savings performance contracts (ESPCs) in 1998, 270 DOE ESPC delivery orders and task orders have been awarded. More than $2.5 billion has been invested in Federal energy efficiency and renewable energy improvements. These improvements have resulted in more than $6.8 billion of cumulative energy cost savings for the Federal Government (SOURCE: financing/espcs_awardedcontracts.html) Contracting Mechanisms DOE s Super ESPC Contract U.S. Army Corps of Engineers ESPC IDIQ. US Coast Guard Facilities, Puerto Rico All four US Coast Guard facilities in Puerto Rico received comprehensive energy efficiency and renewable energy upgrades which include over 300 high efficiency roofs and 3 Megawatts of photovoltaic systems. This project has a value of $50 million and will reduce the US Coast Guard s energy use by over 55% while receiving guaranteed savings over $80 million during the financed term of 23 years.

6 About the Federal Performance Contracting Coalition. The FPCC is a group of Energy Service Companies (ESCOs) advocating for increased federal use of Energy Savings Performance Contracts (ESPCs). To that aim, our activities primarily focus on barrier removal and ensuring more, faster, bigger and better ESPC projects in the Federal ESPC marketplace. The FPCC is the primary organization representing the ESPC industry and our members represent over 90% of Federal ESPCs: Ameresco n Chevron n Constellation Energy n Honeywell n Johnson Controls, Inc. n Lockheed Martin n NextEra Energy Solutions n Noresco n SAIC n Schneider Electric n Siemens Government Technologies, Inc. n Trane/Ingersoll Rand Learn more at