introduction to utility energy service contracts€¦ · introduction to utility energy service...
TRANSCRIPT
![Page 1: Introduction to Utility Energy Service Contracts€¦ · Introduction to Utility Energy Service Contracts Julia Kelley, Oak Ridge National Laboratory NASA 2011 Facilities Engineering](https://reader036.vdocuments.net/reader036/viewer/2022062603/5f023dd77e708231d4034804/html5/thumbnails/1.jpg)
Program Name or Ancillary Text eere.energy.gov
Federal Energy Management Program
Introduction to Utility Energy Service Contracts
Julia Kelley, Oak Ridge National Laboratory
NASA 2011 Facilities Engineering and Real Property Conference
Nashville, TN - May 10, 2011
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Federal Energy Management Program femp.energy.gov
UESC Presentation Agenda
• Basics
• Authorizing Legislation
• Contracting Overview
• UESC Process
• UESC Resources
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Federal Energy Management Program femp.energy.gov
UESC Basics
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Federal Energy Management Program femp.energy.gov
• A UESC is a contracting vehicle
that allows utilities to provide to
their Federal customers:
– Comprehensive energy and water
efficiency improvements
– Demand-reduction services
What is a Utility Energy Service Contract (UESC)?
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Federal Energy Management Program femp.energy.gov
• The Utility:
– fronts the capital costs
– assesses the opportunities
– designs and implements the
accepted energy conservation
measures (ECMs)
• The Agency repays the Utility:
– from appropriations either at
acceptance
or over time if financing is used
What is a UESC?
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Federal Energy Management Program femp.energy.gov
0
10
20
30
40
50
60
70
80
90
100
Pre-construction Payment Period End of Contract Term
Th
ou
san
ds
Project Re-payment w/ Financing
Cost of Energy Cost of Project & Financing Residual Savings
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Federal Energy Management Program femp.energy.gov
• Meet agency and legislated goals
• Use energy more wisely
• Reduce operating costs
Benefits of UESCs
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Federal Energy Management Program femp.energy.gov
$0
$500
$1,000
$1,500
$2,000
$2,500
Jan-93 Jan-95 Jan-97 Jan-99 Jan-01 Jan-03 Jan-05 Jan-07 Jan-09 Jan-11
Increasing Investment in UESCs
Total CapitalInvestment
Private SectorInvestment
Federal SectorInvestment
Mill
ion
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Federal Energy Management Program femp.energy.gov
• In addition to two successful EUL projects, NASA has implemented
seven UESC projects since 1998 at the following facilities:
– Kennedy Space Center
– Langley Research Center
– Ames Research Center
• Total UESC investment at NASA to date: $50.9 million
• NASA implemented the following ECMs across multiple facilities:
– Load Control
– Lighting
– Compressed air
– HVAC
– Steam Plant Retrofit
– Chilled Water Plant Optimization
– Chiller Replacement
– Photovoltaic System
– Water Conservation
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Federal Energy Management Program femp.energy.gov
• Reduce federal facility energy use per square foot by 3%
per year, 2006 – 2015, relative to 2003 (or 30% by end
of 2015)
• Increase use of renewable energy to
– not less than 5% of electricity use in 2010 – 2012
– not less than 7.5% in 2013 and thereafter
– at least half from new sources each year
– implement renewables on agency property for agency use as
feasible
• Reduce water use by 2% per year, 2008 – 2015 (or 16%
by end of 2015)
Using UESCs to Meet Federal Mandates — EO 13423 and EISA 2007
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Federal Energy Management Program femp.energy.gov
• Energy efficiency
– Reduce energy demand
– Install high-efficiency equipment
– Install control systems
– Re-commission energy systems
• Water Efficiency
– Reduce water demand
– Install water efficiency measures
– Install controls
What You Can Do with a UESC
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Federal Energy Management Program femp.energy.gov
• Renewable energy
– Implement on-site renewable energy generation
– Install solar parking structures
– Install large-scale wind
– Install co-gen systems
What You Can Do with a UESC
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Federal Energy Management Program femp.energy.gov
UESC
Authorizing Legislation
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Federal Energy Management Program femp.energy.gov
• EPAct 1992 – 42 USC 8256
• DoD 10 USC 2913 and 2866
UESC Authorizing Legislation
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Federal Energy Management Program femp.energy.gov
• Section 546(c) 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 the agency
Codified as 42 USC 8256; P.L. 102-486
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Federal Energy Management Program femp.energy.gov
• Title 10: Armed Forces; Chapter 173; Subchapter 1;
Section 546 (c) Utility Incentive Programs
• Encourages participation in gas or electric utility
programs for the management of energy demand or for
energy conservation
• Agencies may accept financial incentives, goods and
services generally available from the utility
• Allows direct negotiation with energy savings contractors
selected competitively and approved by the utility
10 USC 2913 Contracts and Utilities
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Federal Energy Management Program femp.energy.gov
• Water Cost Savings Realized –
• Half of the savings shall be used for
water conservation activities as
designated by DoD
• Half of the savings to be used at the
installation at which the savings were
realized
10 USC 2866 Water Conservation Authority
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Federal Energy Management Program femp.energy.gov
UESC
Contracting Mechanisms
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Federal Energy Management Program femp.energy.gov
GSA Area Wide Contracts (AWC)
A UESC is not
a utility service
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Federal Energy Management Program femp.energy.gov
Acquiring Energy Management Services under an AWC
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Federal Energy Management Program femp.energy.gov
Where an AWC Exists
Master Agreement (Contract Terms & Conditions)
GSA Utility
Areawide Contract
Agency Utility
Task Order
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Federal Energy Management Program femp.energy.gov
• Nature of service
• Estimated project cost, capital cost,
percent of cost financed
• Rebate amount
• Simple payback
• Accounting and appropriations data
• Energy conservation measures
• Signed by Agency and Utility
Energy Management Services Authorization (EMSA)
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Federal Energy Management Program femp.energy.gov
Where an AWC Does Not Exist
Separate Contract/Master
Agreement (Contract Terms &
Conditions)
Agency Utility
UESC Task Order
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Federal Energy Management Program femp.energy.gov
Typical UESC Offering
Audits
Feasibility Studies Project Financing
Technical Financial
Rebates
Engineering & Design
Construction &
Installation Project Management
Performance
Guarantees
Training
O&M Services
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Federal Energy Management Program femp.energy.gov
UESC Process
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Federal Energy Management Program femp.energy.gov
Preparation
3-7 months
Project Development
to Award
3-5 months
Construction and Post Construction
6 months to several years
• Pre-work
• Site Needs
• Funding
• Training
• Initial Contract Document
• Identify ECMs
• Proposal
• Final Contract Documents
• Construction and Performance
• Post Construction
UESC Process
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Federal Energy Management Program femp.energy.gov
• Membership
• Roles and responsibilities
• Contracting
• Legal
• Technical
• Energy Champion
Preparation Phase: Agency Acquisition Team
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Federal Energy Management Program femp.energy.gov
• Move a UESC project forward correctly
and efficiently
• Bring together the people with
knowledge, experience, and
responsibility
• Gain support for the effort early
in the process
• Involve those who will be affected by
the project
Agency Team is needed to:
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Federal Energy Management Program femp.energy.gov
• At least, a Contracting Officer and Technical
Representative for the Agency
• Ideally, everyone who will help, hinder, or be affected by
the project
Agency Team Should Consist of:
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Federal Energy Management Program femp.energy.gov
• Broad assessment of the potential
for energy and water efficiency
measures
• Based on a review of existing
facility use and conditions
• Examination of energy- and
water-consuming equipment
and control systems
Project Development: Preliminary Audit
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Federal Energy Management Program femp.energy.gov
• Assessment of existing facility
– Campus or single building?
– Office or laboratory?
– 8 hours/day or 24 hours/day?
– Circa 1950 or 2005?
• Analysis of
– Energy- and water-consuming
equipment, systems, and controls
– Utility data for electricity, natural gas, steam, water, etc.
Preliminary Audit
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Federal Energy Management Program femp.energy.gov
• Negotiate cost of audit with the utility
• Include description of facilities/systems
to be studied
• Include any agency-specific
requirements
• Sign a Task Order for the audit
– Indicate the negotiated cost
– Attach Scope of Work for the audit
Preliminary Audit – Best Practices
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Federal Energy Management Program femp.energy.gov
• An ―investment-grade‖ analysis of
the site’s conditions and potential
efficiency improvements
– Details the technical and economic
viability of proposed ECMs
– Complies with the Task Order
statement of work
– Provides sufficient information for a
decision to go forward
Project Development: Feasibility Study
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Federal Energy Management Program femp.energy.gov
• Establishes the basis for the
project design and finalizes the baseline
• Detailed assessment of existing facility
use and conditions
• Detailed analysis of
– Energy- and water-consuming equipment,
systems, and controls
– Utility data for electricity, natural gas,
steam, water, etc.
Feasibility Study
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Federal Energy Management Program femp.energy.gov
• Negotiate cost of the Feasibility Study with the utility
• Sign a Task Order for the Feasibility Study
– Indicate the negotiated cost
– Attach Scope of Work for the study
Feasibility Study – Best Practices
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Federal Energy Management Program femp.energy.gov
• Minimum level of performance assurance planning
recommended for UESC by FEMP:
– Start-up performance verification
– Performance verification at the end of the warranty period
– O&M training at construction and periodically
during the contract period
– Periodic inspections and performance verification
– Assessment and resolution of performance discrepancies
– http://www1.eere.energy.gov/femp/pdfs/41898.pdf
Project Development: Performance Assurance
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Federal Energy Management Program femp.energy.gov
• Agree on the baseline
• Clarify performance objectives
• Consider interactions between measures
• Specify verification method for each measure
• Identify financial and staff impacts and requirements
• Indicate reporting format & schedule
Project Development: Performance Assurance
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Federal Energy Management Program femp.energy.gov
• Commissioning objectives
– Support effective O&M with training, documentation, and
maintenance strategies
– Identify O&M procedures that improve energy efficiency
– Optimize equipment and control systems
• Develop ―design and operating intent‖ early in the
process (Feasibility Study kick-off meeting)
• http://www1.eere.energy.gov/femp/pdfs/commissioning_
fed_facilities.pdf
Project Development: Commissioning
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Federal Energy Management Program femp.energy.gov
• Review design with a focus on commissioning and
maintenance
• Develop Commissioning Plan
– Include specific actions for commissioning during construction,
acceptance, and post-acceptance
Commissioning
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Federal Energy Management Program femp.energy.gov
UESC Resources
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Federal Energy Management Program femp.energy.gov
• Types of contracts
• Laws and regulations
• Financing mechanisms
• Technology resources
• Case studies
• Training opportunities
– http://www1.eere.energy.gov/femp/financing/uescs.html
FEMP UESC Website
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Federal Energy Management Program femp.energy.gov
• Legislation and Executive Actions
• Legal Opinions
• Agency Guidance
• Sample Documents
• http://www1.eere.energy.gov/femp/
pdfs/uesc_enabling_documents09.pdf
UESC Enabling Documents
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Federal Energy Management Program femp.energy.gov
• Federal Utility Partnership Working Group (FUPWG)
– Establishes partnerships and facilitates communications
among Federal agencies and utilities
– Develops strategies to streamline sound projects
– Next meeting on October 25 – 26, 2011, Philadelphia
• Strategic Partnering Meetings
– FEMP supports Federal‒Utility Strategic Partnering Meetings to
enhance partnerships and to launch utility incentive programs,
including UESC
Getting Started – Partnering Avenues
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Federal Energy Management Program femp.energy.gov
Education
– UESC Workshops
– UESC Overview
– Web Training
GovEnergy 2011 – A River of Energy Solutions
– August 7 – 10, Cincinnati, Ohio
DOE FEMP Sponsored Project Support
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Federal Energy Management Program femp.energy.gov
• Direct Project Support
– Guide agency teams through the
UESC process
– Help with development of contract
documents and provide document templates
– Technical review of audits, feasibility
studies, and proposals
– In-depth technical support
– Build partnerships and facilitate relationships
DOE FEMP Sponsored Project Support
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Federal Energy Management Program femp.energy.gov
Scott Wolf
Western Region including N. Marianas,
Palau, Guam, American Samoa;
plus East, South, and Central Asia;
the Pacific; and Near East
360-866-9163
Gordon Drawer, Midwest Region plus Africa and New Independent States 630-584-9650, [email protected]
Doug Culbreth, Southeast Region plus Europe and Western Hemisphere
919-870-0051 [email protected]
Tom Hattery
Northeast Region plus State Dept.
202-256-5986
West
Midwest Northeast
Southeast
DOE FEMP Federal Financing Specialists (FFS’s)
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Federal Energy Management Program femp.energy.gov
Utility Program Lead
David McAndrew
202-586-7722
DOE FEMP
Julia Kelley
Oak Ridge National Laboratory
865-574-1013