DoN ESPC PROGRAMM&V Briefing

Russell Dominy, CEM

DoN ESPC Program• 42 Projects at 28 Navy &

Marine Corps installations worldwide

• Core ESPC Team - NFESC / NAVFACCO Port Hueneme

• Utilize specialized expertise on project specific basis

• Responsible for

– Marketing– Project development

and execution through award

– Energy program support

DoN ESPC Program(Contracting Vehicles)

• DOE Regional and Technology Specific

• Army COE Huntsville 4-State and 46-State

• Air Force Regional

• DoN Stand-alone

Navywide Alternative Financing Project

AwardsFY 1999 FY 2000 FY 2001 FY 2002

Number ofAwards

26 21 33 34

Annual Savings(MMBTU)

665,000 746,000 896,000 1,200,000

Total CapitalCosts

$79M $74 M $130 M $180 M

Total Life-CycleCost Savings

$256M $210 M $300 M $350 M

DoN ESPC Program(M&V Strategy)

• Based on FEMP M&V

Guidelines

• Project specific M&V Plan

• ESCO develops, with facility

input

• Assumptions defined by

ESCO and agreed to by

Govt. throughout process

• Contractor assumes

performance risk

DoN ESPC Program (M&V Process)

• General strategy discussed during Kick-off Meeting

• Baseline Measurement / Monitoring Strategy developed during Initial Proposal / Site Survey Phase

• Baseline Measurement Methodology agreed to prior to Final Proposal / Feasibility Study development

• M&V Plan fully developed during Feasibility Study / Detailed Energy Survey

DoN ESPC Program (Recent Developments)

• Navy IG Team

– Will EO energy reduction Goals be met

– Evaluate tools to Meet EO Goals

– Interested in actual vs. proposed savings

• Equipment Commissioning

– Establishing post installation baseline

– Impact on savings

– System performance

• Energy Manager Training

• Energy Project Execution Guide

– Defines process for both ESPC and UESC program

– Unified approach to alternative financing